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LASTMINUTE

NOTES ON THE 2012 BAR EXAMINATION IN LABOR LAW BASED ON THE SUPREME
COURTPRESCRIBED SYLLABUS
Prof. Joselito Guianan Chan
C. LABOR STANDARDS
[These8partNotesdiscussalltopics/subtopicsintheSupremeCourtprescribedSyllabusforLaborLaw]

==================================================================
TOPICS UNDER THE SYLLABUS
C.LABORSTANDARDS
1.HoursofWork
a.Coverage/Exclusions
b.NormalHoursofWork
(a)Exceptions
(a)HealthPersonnel
c.CompressedWorkWeek
d.Workinterruptionduetobrownouts
e.MealBreak
f.Idletime,waitingtime,commutingtime,traveltime,whetherpartofhoursofworkornot
g.Overtimework
(a)Undertimenotoffsetbyovertime
(b)Waiverofovertimepay
h.NightWork
i.CBAprovisionvisvisovertimework
2.Wages
a.Noworknopayprinciple
b.Coverage/Exclusions
c.Facilitiesvssupplements
d.Wagesvs.salaries
e.Wagedistortion
f.CBAvisvisWageOrdersCBAcreditability
g.Nondiminutionofbenefits
h.Workerspreferenceincaseofbankruptcy
i.LaborCodeprovisionsforwageprotection
j.Allowabledeductionswithoutemployeesconsent
k.Attorneysfeesandunionservicefeeinlaborcases
l.Criteria/FactorsforWageSetting
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a.Righttoweeklyrestday
b.Preferenceoftheemployee
c.Whenworkonrestdayauthorized
4.Holidays
a.Righttoholidaypay
(1)Incaseofabsences
(2)Incaseoftemporarycessationofwork
(3)Ofteachers,pieceworkers,seafarers,seasonalworkers,etc.
b.Exclusionsfromcoverage
5.Leaves
a.ServiceIncentiveLeavePay
(1)Righttoserviceincentiveleave
(2)Exclusionsfromcoverage
(3)Commutablenatureofbenefit
b.MaternityLeave
(1)Coverage
(2)Conditionstoentitlement
(3)Availment
c.PaternityLeave
(1)Coverage
(2)Conditionstoentitlement
(3)Availment
d.ParentalLeave
(1)Coverage
(2)Conditionstoentitlement
(3)Availment
e.Leavesforvictimsofviolenceagainstwomen
(1)Coverage
(2)Conditionstoentitlement
(3)Availment
6.ServiceCharges
a.Coverage
b.Exclusion
c.Distribution
d.Integration
7.Thirteenth(13th)MonthPayandotherbonuses
a.Coverage
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c.Natureof13thmonthpay
d.Commissionsvisvis13thmonthpay
e.CBAvisvis13thmonthpay
8.WomenWorkers
a.Discrimination(Art.135,LC)
b.Stipulationagainstmarriage(Art.136,LC)
c.ProhibitedActs(Art.137,LC)
d.Classificationofcertainwomenworkers(Art.138,LC)
e.AntiSexualHarassmentAct(RA7877)
9.MinorWorkers(RA7678,RA9231)
a.Regulationofworkinghoursofachild
b.Employmentofthechildinpublicentertainment
c.Prohibitionofemployingminorsincertainundertakingsandincertainadvertisements
10.EmploymentofHousehelpers
a.Definition
b.Benefitsaccordedhousehelpers
c.Termination
d.Reliefsforunjusttermination
11.EmploymentofHomeworkers
a.Definition
b.Rightsandbenefitsaccordedhomeworkers
c.Conditionsfordeductionfromhomeworkersearnings
12.ApprenticesandLearners
a.DistinctionsbetweenLearnershipandApprenticeship
13.HandicappedWorkers(RA7277)
a.Definitionofhandicappedworkers
b.Rightsofdisabledworkers
c.Prohibitionsondiscriminationagainstdisabledpersons
d.Incentivesforemployers

==========================================
TOPICUNDERTHESYLLABUS
C.LABORSTANDARDS
1.HoursofWork
a.Coverage/Exclusions
b.NormalHoursofWork
(a)Exceptions
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c.CompressedWorkWeek
d.Workinterruptionduetobrownouts
e.MealBreak
f.Idletime,waitingtime,commutingtime,
traveltime,whetherpartofhoursofworkornot
g.Overtimework
(a)Undertimenotoffsetbyovertime
(b)Waiverofovertimepay
h.NightWork
i.CBAprovisionvisvisovertimework
==========================================
1.PROVISIONSOFTHELABORCODEONWORKINGCONDITIONS.
TheprovisionsonworkingconditionsintheLaborCodeareasfollows.
Article83Normalhoursofwork
Article84Hoursworked
Article85Mealperiods
Article86Nightshiftdifferential
Article87Overtimework
Article88Undertimenotoffsetbyovertime
Article89Emergencyovertimework
Article90Computationofadditionalcompensation
Article91Righttoweeklyrestperiod
Article92Whenemployermayrequireworkonarestday
Article93Compensationforrestday,Sundayorholidaywork
Article94Righttoholidaypay
Article95Righttoserviceincentiveleaveand
Article96Servicecharges.
2.COVERAGE.
Allemployeesinallestablishments,whetheroperatedforprofitornot,arecoveredbythelawonlaborstandards.
3.EXCLUSIONS.
Thefollowingareexcludedfromthecoverageofthelawonlaborstandards:
a.Governmentemployees
b.Managerialemployees
c.Otherofficersormembersofamanagerialstaff
d.Domesticservantsandpersonsinthepersonalserviceofanother
e.Workerspaidbyresults
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g.Membersofthefamilyoftheemployer.
4.NORMALHOURSOFWORK.
Thetotalnumberofworkinghoursofaworkeroremployeeshallnotexceedeight(8)hoursdaily.Thiseight(8)hourperiodis
calledthenormalhoursofwork.Anyworkinexcessofeight(8)hoursisconsideredovertimework.
4.1.EXCEPTIONS:
a.Reductionof8hourworkingdaybyemployer.
Theemployer,inthelawfulexerciseofitsprerogative,isnotprohibitedfromreducingtheeighthournormalworkingtimeperday
providedthatnocorrespondingreductionismadeontheemployeeswageorsalaryequivalenttoaneighthourworkday.Ininstances
wherethenumberofhoursrequiredbythenatureofworkislessthaneighthours,suchnumberofhoursshouldberegardedasthe
employeesfullworkingday.
b.Brokenhours.
Thenormaleight(8)workinghoursmandatedbylawdonotalwaysmeancontinuousanduninterruptedeight(8)hoursofwork.
Asmayberequiredbypeculiarcircumstancesofemployment,itmaymeanbrokenhoursofsay,fourhoursinthemorningandfourhours
intheeveningoravariationthereof,providedthetotalofeight(8)hoursisaccomplishedwithinoneworkdayasthistermisunderstood
inlaw[infra].Hence,the4hourworkdoneintheeveningasintheexampleabove,shouldnotbeconsideredovertimeworksincethe
eighthourperiodhasnotyetbeenexceeded.
c.Staggeredworkingtime.
Staggeredworkingtimeisavalidschemewhichmayberesortedtobyemployers.Asamatterofprecedence,MemorandumCircularNo.
81wasissuedbytheOfficeofthePresidentonDecember14,2004whichimplementedtheStaggeredWorkingTimeintheExecutive
DepartmentinrelationtotheotherbranchesofgovernmentandtheprivatesectorinMetroManiladuringtheChristmasSeasonfrom
December15,2004toJanuary6,2005.Accordingtothisissuance,theStaggeredWorkingTimeismeanttoimprovethedeliveryof
goodsandservices.
d.Workindifferentshifts.
Inestablishmentswhereworkisindifferentshifts,workdonebytheemployeebeyondhiseighthourshiftisconsideredovertime
workwhichshouldbecompensatedaccordingly.Forexample,iftherearethree(3)eighthourshiftsinaworkday,say,thefirstshiftis
from6:00a.m.to2:00p.m.secondshiftfrom2:00p.m.to10:00p.m.andthethirdshiftfrom10:00p.m.to6:00a.m.ofthefollowingday,
theemployeewhoseregulareighthourworkisinthefirstshift(6:00a.m.to2:00p.m.),oncerequiredtoworkinthesecondorthirdshift,
shouldbegivenadditionalcompensationforsuchworkdonebeyondhisregularworkinghourswhichlegallyisconsideredovertime
work.
e.Reductionofworkdaysonaccountoflosses.
Workdaysmaybereducedinsituationswherethereductioninthenumberofregularworkingdaysisresortedtobytheemployer
topreventseriouslossesduetocausesbeyondhiscontrol,suchaswhenthereisasubstantialslumpinthedemandforhisgoodsor
servicesorwhenthereislackofrawmaterials.[1]
f.FlexibleworkscheduleunderR.A.No.8972.
UnderRepublicActNo.8972,otherwiseknownasTheSoloParentsWelfareActof2000,soloparentsareallowedtoworkonaflexible
schedule,thus:
Sec.6.FlexibleWorkSchedule.Theemployershallprovideforaflexibleworkingscheduleforsoloparents:Provided,Thatthesameshall
notaffectindividualandcompanyproductivity:Provided,further,Thatanyemployermayrequestexemptionfromtheabove
requirementsfromtheDOLEoncertainmeritoriousgrounds.(Section6,RepublicActNo.8972).
Thephraseflexibleworkscheduleisdefinedinthesamelawastherightgrantedtoasoloparentemployeetovaryhis/herarrival
anddeparturetimewithoutaffectingthecoreworkhoursasdefinedbytheemployer.[2]
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DOLESecretaryMarianitoD.RoqueissuedDepartmentAdvisoryNo.2,Seriesof2009,onJanuary29,2009enunciatingtheGuidelines
ontheAdoptionofFlexibleWorkArrangements.
Thefollowingaretheflexibleworkarrangementswhichmaybeconsidered,amongothers:
1.CompressedWorkweekreferstoonewherethenormalworkweekisreducedtolessthansix(6)daysbutthetotalnumberofwork
hoursof48hoursperweekshallremain.Thenormalworkdayisincreasedtomorethaneighthoursbutnottoexceedtwelvehours,
withoutcorrespondingovertimepremium.Theconceptcanbeadjustedaccordinglydependingonthenormalworkweekofthecompany
pursuanttotheprovisionsofDepartmentAdvisoryNo.02,Seriesof2004,datedDecember2,2004.
2.ReductionofWorkdaysreferstoonewherethenormalworkdaysperweekarereducedbutshouldnotlastformorethansix(6)
months.
3.RotationofWorkersreferstoonewheretheemployeesarerotatedoralternatelyprovidedworkwithintheworkweek.
4.ForcedLeavereferstoonewheretheemployeesarerequirestogoonleaveforseveraldaysorweeksutilizingtheirleavecredits,if
thereareany.
5.Brokentimeschedulereferstoonewheretheworkscheduleisnotcontinuousbuttheworkhourswithinthedayorweekremain.
6.Flexiholidaysschedulereferstoonewheretheemployeesagreetoavailoftheholidaysatsomeotherdaysprovidedthereisno
diminutionofexistingbenefitsasaresultofsucharrangement.
Under these flexible work arrangements, the employers and the employees are encouraged to explore alternative schemes under any
agreementandcompanypolicyorpracticeinordertocushionandmitigatetheeffectofthelossofincomeoftheemployees.
h.Parttimework.
TherulesimplementingthedifferentWageOrdersissuedbytheRegionalTripartiteWagesandProductivityBoards(RTWPBs)in
thevariousregionsinthecountrycarryauniformprovisiontotheeffectthatwagesandallowancesofparttimeworkersshallnotbeless
thanthecompensabletimethattheyactuallyrenderedwork.Hence,inthecaseofcostoflivingallowance(COLA),iftheworkerrendered
workforlessthantheprescribedeight(8)hours,sayforfour(4)hoursonly,theemployermayvalidlymakeproportionatepaymentof
COLA, if it has granted a proportionate payment in the workers basic wage. Following the principle of no work, no pay, no
allowance,theworkersarenotentitledtosaidbenefitsforthefourhourperiodthattheydidnotrenderwork.Itisimportanttostress,
however,thattheemployeesshouldhaveenteredintoanagreementwiththeemployerthattheywillbeemployedasparttimeworkers.
Inviewoftheforegoing,ontheissueofwhetherthecompanyshouldgivetheparttimeemployeesconcernedonlyfiftypercent
(50%)ofthewagesandotherbenefitsthattheemployermaypaytheworkerswhowillworkforfour(4)hoursaday,6:00to10:00inthe
evening,itwasopinedintheAdvisoryOpiniononConditionsofEmploymentofParttimeWorkersissuedbytheBureauofWorking
ConditionsoftheDepartmentofLaborandEmployment,thatcompensationinproportiontothetimetheyactuallyrenderedworkor
equivalenttoonlyfour(4)hoursadaymustbegiventoparttimeworkers.Thisis,however,withoutprejudicetoanyindividualor
collectiveagreementorcompanypracticeorpolicythatprovideshigherbasisofcomputationofwages.
4.2.HOURSOFWORKOFHOSPITALANDCLINICPERSONNEL.
a.Coverage.
ThesecondparagraphofArticle83oftheLaborCodeenunciatestheruleonhoursofworkofhospitalandclinicpersonnel.Itsprovision
aswellasthecorrespondingprovisionsintheRulestoImplementtheLaborCode,applyto:
a. All hospitals and clinics, including those with a bed capacity of less than one hundred (100) which are situated in cities or
municipalitieswithapopulationofone(1)millionormoreand
b.Allhospitalsandclinicswithabedcapacityofatleastonehundred(100),irrespectiveofthesizeofthepopulationofthecityor
municipalitywheretheymaybesituated.[3]
b.Definitionofterms.
Thetermshospitalandclinicshallmeanaplacedevotedprimarilytothemaintenanceandoperationoffacilitiesforthe
diagnosis,treatmentandcareofindividualssufferingfromillness,disease,injuryordeformity,orinneedofobstetricalorothermedical
and nursing care. Either term shall also be construed as any institution, building, or place where there are installed beds or cribs or
bassinetsfortwentyfour(24)houruseorlongerbypatientsinthetreatmentofdiseases,injuries,deformitiesorabnormalphysicaland
mentalstates,maternitycasesorsanitarialcareorinfirmaries,nurseries,dispensariesandsuchothersimilarnamesbywhichtheymaybe
designated.(Section2,RuleIA,BookIII,RulestoImplementtheLaborCode).
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laboratorytechnicians,paramedicaltechnicians,psychologists,midwives,attendantsandallotherhospitalorclinicpersonnel.[4]
c.Regularworkinghoursofhospitalorclinicpersonnel.
Theregularworkinghoursofhospitalandclinicpersonnelshallnotbemorethaneight(8)hoursinanyonedaynormorethan
forty(40)hoursinanyoneweek.Adayshallmeanaworkdayoftwentyfour(24)consecutivehoursbeginningatthesametimeeach
calendarday.Aweekshallmeantheworkweekof168consecutivehours,orsevenconsecutive24hourworkdays,beginningatthe
samehourandonthesamecalendardayeachcalendarweek.[5]
d.Regularworkingdaysofhospitalorclinicpersonnel.
Theregularworkingdaysofcoveredemployeesshallnotbemorethanfive(5)daysinaworkweek.Theworkweekmaybeginat
anyhourandonanyday,includingSaturdayorSunday,designatedbytheemployer.Employersarenotprecludedfromchangingthe
timeatwhichtheworkdayorworkweekbeginsprovidedthatthechangeisnotintendedtoevadetherequirementsofRuleIAoftheRules
toImplementtheLaborCode.[6]
e.Overtimeworkofhospitalorclinicpersonnel.
Wheretheexigenciesoftheservicesorequireasdeterminedbytheemployee,anyemployeemaybescheduledtoworkformore
than five (5) days or forty (40) hours a week provided that the employee is paid for the overtime work an additional compensation
equivalenttohisregularwageplusatleastthirtypercent(30%)thereof,subjecttotheprovisionsofBookIIIoftheLaborCodeonthe
paymentofadditionalcompensationforworkperformedonspecialandregularholidaysandonrestdays.[7]
f.Hoursworkedofhospitalorclinicpersonnel.
Indeterminingthecompensablehoursofworkofhospitalandclinicpersonnel,thepertinentprovisionsofRule1ofBookIIIof
theRulestoImplementtheLaborCodeshallapply.[8]
POLICYINSTRUCTIONSNO.54.
a.Workinghoursandcompensationofhospital/clinicpersonnel.
PolicyInstructionsNo.54[April12,1988]providesthatpersonnelinsubjecthospitalsandclinicsareentitledtoafullweeklywage
forseven(7)daysiftheyhavecompletedthe40hour/5dayworkweekinanygivenworkweek.
b.PolicyInstructionsNo.54,declaredvoid.
TheSupremeCourt,however,hasvoidedPolicyInstructionsNo.54inthecaseofSanJuandeDiosHospitalEmployeesAssociationv.
NLRC,[G.R.No.126383,November28,1997].Consequently,therulethathospitalemployeeswhoworkedforonly40hours/5daysin
anygivenworkweekshouldbecompensatedforfullweeklywageforseven(7)daysisnolongerapplicable.
TheSupremeCourtratiocinatedthattheSecretaryofLaborexceededhisauthoritybyincludingatwodaysoffwithpayin
contraventionoftheclearmandateofthestatute.SuchacttheCourtshallnotcountenance.Administrativeinterpretationofthelaw,we
reiterate,isatbestmerelyadvisory,andtheCourtwillnothesitatetostrikedownanadministrativeinterpretationthatdeviatesfromthe
provisionofthestatute.
5.COMPRESSEDWORKWEEK(CWW).
a.Compressedworkweekallowed.
Theemployermaycompresstheworkdaysfromsix(6)days(fromMondaytoSaturday)tofive(5)days(fromMondaytoFriday)under
certainconditionsimposedbytheDepartmentofLaborandEmployment.
Insituations,forinstance,wheretheemployeesworkweekwasfortyfive(45)hoursconsistingofeight(8)hoursdailyfromMondayto
Fridayandfive(5)hoursonSaturday,theemployermayproposetocompressorshortentheworkweekfromMondaytoFridaywith
workfornine(9)hoursperdaywithoutovertimepayfortheexcessone(1)hour.TheDepartmentofLaborandEmployment(DOLE)
normallydoesnotinterposeanyobjectiontothiskindofschemeprovidedthefollowingconditionsaremet:
1.Theemployeesvoluntarilyagreetoworknine(9)hoursadayfromMondaytoFriday;
2.Thereshouldbenodiminutioninthetakehomepayandfringebenefitsoftheemployees
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with,orequalto,theonehourovertimepaythatisduethemduringweekdaysbasedontheemployeesquantification
4.Theonehourovertimepayoftheemployeeswillbecomedueanddemandableifevertheyarepermittedormadetoworkonany
Saturdayduringtheeffectivityofthenewworkingtimearrangement,sincetheagreementbetweentheemployeesandmanagementisthat
therewillbenoSaturdayworkinexchangeforalongerworkdayduringweekdays
5.Theworkoftheemployeesdoesnotinvolvestrenuousphysicalexertionandtheyareprovidedwithadequaterestperiodsorcoffee
breaksinthemorningandafternoonand
6.TheeffectivityoftheproposedworkingtimearrangementshouldbeoftemporarydurationasdeterminedbytheSecretaryofLaborand
Employment.
PhilippineGraphicArts,Inc.v.NLRC,[G.R.No.L80737,September29,1988,166SCRA118].
TheHighCourtupheldthevalidityofthereductionofworkinghours,takingintoconsiderationthefollowing:thearrangementwas
temporaryitwasamorehumanesolutioninsteadoftheretrenchmentofpersonneltherewerenoticesandconsultationswiththeworkers
andsupervisorsaconsensuswasreachedonhowtodealwiththedeterioratingeconomicconditionsanditwassufficientlyproventhat
thecompanywassufferingfromlosses.
Although the said Explanatory Bulletin of Director Sanchez stands more as a set of directory guidelines than a binding set of
implementingrules,ithasonemainconsideration,consistentwiththerulinginPhilippineGraphicArts,indeterminingthevalidityof
reductionofworkinghours,i.e.,thatthecompanywassufferingfromlosses.
LintonCommercialCo.,Inc.v.Hellera,[G.R.No.163147,October10,2007].
Indeclaringthecompressedworkweekarrangementinthiscaseasunjustifiedandillegalandinholdingthatpetitionersareguiltyof
illegal reduction of work hours, the Supreme Court found specious the petitioners attempt to justify their action by alleging that the
companywassufferingfromfinanciallossesowingtotheAsiancurrencycrisis.Petitionersclaimoffinanciallosseswasnotsupportedby
evidence. A close examination of petitioners financial reports for 19971998 shows that while the company suffered a loss
ofP3,645,422.00in1997,itretainedaconsiderableamountofearningsandoperatingincome.Clearlythen,whileLintonsufferedfrom
lossesforthatyear,thereremainedenoughearningstosufficientlysustainitsoperations.Inbusiness,sustainedoperationsintheblackis
theidealbutbeingintheredisacruelreality.However,ayearoffinanciallosseswouldnotwarranttheimmolationofthewelfareofthe
employeeswhichinthiscasewasdonethroughareducedworkweekthatresultedinanunsettlingdiminutionoftheperiodicpayfora
protractedperiod.PermittingreductionofworkandpayattheslightestindicationoflosseswouldbecontrarytotheStatespolicyto
affordprotectiontolaborandprovidefullemployment.
b.DepartmentOrderNo.02,Seriesof2004.
DepartmentOrderNo.02,Seriesof2004,wasissuedbytheSecretaryofLaborandEmploymentonDecember2,2004
implementingcompressedworkweekschemestoguideemployersandworkerswhomayopttoadoptamutuallyacceptablecompressed
workweek(CWW)schemesuitabletotherequirementsoftheestablishment
Asamatterofpolicy,andtakingintoaccounttheemergenceofnewtechnologyandthecontinuingrestructuringandmodernizationofthe
workprocess,theDepartmentofLaborandEmployment(DOLE)encouragesemployersandworkerstoenterintovoluntaryagreements
adoptingCWWschemesbasedonthefollowingobjectives:
1. To promote business competitiveness and productivity, improve efficiency by lower operating costs, and reduce workrelated
expensesofemployees
2.Togiveemployersandworkersflexibilityinfixinghoursofworkcompatiblewithbusinessrequirementsandtheemployeesneedfor
abalancedworklifeand
3.Toensurethesafetyandhealthofemployeesattheworkplaceatalltimes.
ACWWschemeisanalternativearrangementwherebythenormalworkweekisreducedtolessthansix(6)daysbutthetotalnumberof
normalworkhoursperweekshallremainatfortyeight(48)hours.Thenormalworkdayisthusincreasedtomorethaneight(8)hours
withoutcorrespondingovertimepremium.Thisconceptcanbeadjustedaccordinglyincaseswherethenormalworkweekofthefirmis
five(5)days.
Conditions.DOLEshallrecognizeCWWschemesadoptedinaccordancewiththefollowing:
1.TheCWWschemeisundertakenasaresultofanexpressandvoluntaryagreementofmajorityofthecoveredemployeesortheirduly
authorizedrepresentatives.Thisagreementmaybeexpressedthroughcollectivebargainingorotherlegitimateworkplacemechanismsof
participationsuchaslabormanagementcouncils,employeeassembliesorreferenda.
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carcinogensornoiseprolongedexposuretowhichmayposehazardstotheemployeeshealthandsafety,theremustbeacertificationfrom
anaccreditedhealthandsafetyorganizationorpractitionerorfromthefirmssafetycommitteethatworkbeyondeight(8)hoursiswithin
thresholdlimitsortolerablelevelsofexposure,assetintheOSHS.
3.TheemployershallnotifytheDOLE,throughitsRegionalOfficehavingjurisdictionovertheworkplace,oftheadoptionoftheCWW
scheme.ThenoticeshouldbemadeinDOLECWWReportForm.
Effects.ACWWschemewhichcomplieswiththeforegoingconditionsshallhavethefollowingeffects:
1. Unless there is a more favorable practice existing in the firm, work beyond eight (8) hours will not be compensable by overtime
premiumprovidedthetotalnumberofhoursworkedperdayshallnotexceedtwelve(12)hours.Inanycase,anyworkperformedbeyond
twelve(12)hoursadayorfortyeight(48)hoursaweekshallbesubjecttoovertimepremium.
2.ConsistentwithArticles85oftheLaborCode,employeesunderaCWWschemeareentitledtomealperiodsofnotlessthansixty(60)
minutes.Nothing,however,shallimpairtherightofemployeestorestdaysaswellastoholidaypay,restdaypaysorleavesinaccordance
withlaworapplicablecollectivebargainingagreement(CBA)orcompanypractice.
3.AdoptionoftheCWWschemeshallinnocaseresultindiminutionofexistingbenefits.Reversiontothenormaleighthourworkday
shallnotconstituteadiminutionofbenefits.Thereversionshallbeconsideredalegitimateexerciseofmanagementprerogativeprovided
thattheemployershallgivetheemployeespriornoticeofsuchreversionwithinareasonableperiodoftime.
BisigManggagawasaTrycov.NLRC,[G.R.No.151309,October15,2008].
PrivaterespondentTrycoandthepetitionerssignedseparateMemorand[a]ofAgreement(MOA),providingforacompressedworkweek
scheduletobeimplementedinthecompanyeffectiveMay20,1996.TheMOAwasenteredintopursuanttoDOLEDepartmentOrder
(D.O.)No.21,Seriesof1990enunciatingtheGuidelinesontheImplementationofCompressedWorkweek.AsprovidedintheMOA,8:00
a.m.to6:12p.m.,fromMondaytoFriday,shallbeconsideredastheregularworkinghours,andnoovertimepayshallbedueandpayable
totheemployeeforworkrenderedduringthosehours.TheMOAspecificallystatedthattheemployeewaivestherighttoclaimovertime
payforworkrenderedafter5:00p.m.until6:12p.m.fromMondaytoFridayconsideringthatthecompressedworkweekscheduleis
adoptedinlieuoftheregularworkweekschedulewhichalsoconsistsoffortysix(46)hours.However,shouldanemployeebepermitted
orrequiredtoworkbeyond6:12p.m.,suchemployeeshallbeentitledtoovertimepay.TrycoinformedtheBureauofWorkingConditions
(BWC)oftheDepartmentofLaborandEmploymentoftheimplementationofthesaidcompressedworkweekinthecompany.
Inupholdingthevalidityofthecompressedworkweek,itwasnotedthatDepartmentOrderNo.21sanctionsthewaiverofovertimepayin
considerationofthebenefitsthattheemployeeswillderivefromtheadoptionofacompressedworkweekscheme,thus:
Thecompressedworkweekschemewasoriginallyconceivedforestablishmentswishingtosaveonenergycosts,promotegreaterwork
efficiencyandlowertherateofemployeeabsenteeism,amongothers.Workersfavortheschemeconsideringthatitwouldmeansavingson
theincreasingcostoftransportationfaresforatleastone(1)dayaweeksavingsonmealandsnackexpenseslongerweekends,oran
additional52offdaysayear,thatcanbedevotedtorest,leisure,familyresponsibilities,studiesandotherpersonalmatters,andthatitwill
sparethemforatleastanotherdayinaweekfromcertaininconveniencesthatarethenormalincidentsofemployment,suchascommuting
toandfromtheworkplace,traveltimespent,exposuretodustandmotorvehiclefumes,dressingupforwork,etc.Thus,underthisscheme,
thegenerallyobservedworkweekofsix(6)daysisshortenedtofive(5)daysbutprolongingtheworkinghoursfromMondaytoFriday
withouttheemployerbeingobligedforpayovertimepremiumcompensationforworkperformedinexcessofeight(8)hoursonweekdays,
inexchangeforthebenefitsabovecitedthatwillaccruetotheemployees.
Moreover,theadoptionofthecompressedworkweekschemeinthecompanywillhelptemperanyinconveniencethatwillbecausedthe
petitionersbytheirtransfertoafartherworkplace.
6.WORKINTERRUPTIONDUETOBROWNOUTS.
Thefollowingaretheeffectsofworkinterruptionduetobrownouts.[9]
1.Brownoutsofshortdurationbutnotexceedingtwenty(20)minutesshallbetreatedasworkedorcompensablehourswhetherused
productivelybytheemployeesornot.
2.Brownoutsrunningformorethantwenty(20)minutesmaynotbetreatedashoursworkedprovidedanyofthefollowingconditions
arepresent:
a.Theemployeescanleavetheirworkplaceorgoelsewherewhetherwithinorwithouttheworkpremises;or
b.Theemployeescanusethetimeeffectivelyfortheirowninterest.
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3.Ineachcase,theemployermayextendtheworkinghoursofhisemployeesoutsidetheregularschedulestocompensateforthelossof
productivemanhourswithoutbeingliableforovertimepay.
4.Industrialenterpriseswithoneortwoworkshiftsmayadoptanyoftheworkshiftsprescribedforenterpriseswiththree(3)workshiftsto
preventseriouslossordamagetomaterials,machineriesorequipmentthatmayresultincaseofpowerinterruptions.[10]
5.Thedayswhenworkwasnotrequiredandnoworkcouldbedonebecauseofshutdownduetoelectricalpowerinterruptions,lackof
rawmaterialsandrepairofmachines,arenotdeemedhoursworked.[11]
7.MEALBREAKS(ARTICLE85,LABORCODE).
a.Generalruleonmealperiod.
Asageneralrule,everyemployerisrequiredtogivehisemployees,regardlessofsex,notlessthanone(1)hour(or60minutes)
timeoffforregularmeals.[12]
Beingtimeoff,itisnotcompensablehoursworked.Inthiscase,theemployeeisfreetodoanythinghewants,excepttowork.If
heisrequired,however,toworkwhileeating,heshouldbecompensatedtherefor.
b.Shorteningofmealtimetonotlessthan20minutes,whencompensable.
Inthefollowingcases,amealperiodofnotlessthantwenty(20)minutesmaybegivenbytheemployerprovidedthatsuch
shortermealperiodiscreditedascompensablehoursworkedoftheemployee:
a.Wheretheworkisnonmanualworkinnatureordoesnotinvolvestrenuousphysicalexertion
b.Wheretheestablishmentregularlyoperatesfornotlessthansixteen(16)hoursaday
c.Incasesofactualorimpendingemergenciesorwhenthereisurgentworktobeperformedonmachineries,equipmentor
installationstoavoidseriouslosswhichtheemployerwouldotherwisesufferand
d.Wheretheworkisnecessarytopreventseriouslossofperishablegoods.[13]
c.Shorteningofmealtimetonotlessthan20minutes,whennotcompensable.
Thelawallowsasituationwheretheemployeesthemselvesrequestfortheshorteningofmealperiodtonotlessthantwenty(20)
minutes(say,thirtyminutes,orfrom12:00to12:30p.m.insteadof12:00to1:00p.m.)forthepurposeofallowingthemtoleavework
earlierthanthelapseoftheeight(8)hoursrequiredbylaw(say,4:30p.m.insteadof5:00p.m.).Thisshortenedperiod,however,shallnot
beconsideredcompensableworkingtimeprovidedthefollowingconditionsarecompliedwith:
a.Theemployeesvoluntarilyagreeinwritingtoashortenedmealperiodofthirty(30)minutesandarewillingtowaivetheovertimepay
forsuchshortenedmealperiod
b.Thereshouldbenodiminutioninthebenefitsoftheemployeeswhichtheyreceivepriortotheeffectivityoftheshortenedmeal
period
c.Theworkoftheemployeesdoesnotinvolvestrenuousphysicalexertionandtheyareprovidedwithadequatecoffeebreaksinthe
morningandafternoon
d. The value of the benefits derived by the employees from the proposed work arrangement is equal to or commensurate with the
compensation due them for the shortened meal period as well as the overtime pay for 30 minutes as determined by the employees
concerned
e.Theovertimepayoftheemployeeswillbecomedueanddemandableifevertheyarepermittedormadetoworkbeyond4:30p.m.
and
f.TheeffectivityoftheproposedworkingtimearrangementshallbeforatemporarydurationasdeterminedbytheSecretaryofLabor
andEmployment.[14]
d.Shorteningofmealtimetolessthan20minutes,effect.
Thelawdoesnotallowthatmealtimebeshortenedtolessthantwenty(20)minutes.Ifsoreduced,thesameshallnolongerbe
consideredasmealtimebutmerelyasrestperiodorcoffeebreakand,therefore,becomescompensableworkingtime.[15]
10

e.Changingfrom30minutepaidoncalllunchbreakto1hourmealtimewithoutpay,effect.
ThecaseofSimeDarbyPilipinas,Inc.v.NLRC,[G.R.No.119205,April15,1998,289SCRA86],isillustrativeofthispoint.Priorto
thepresentcontroversy,allcompanyfactoryworkersinMarikinaincludingmembersofprivaterespondentunionworkedfrom7:45a.m.
to3:45p.m.witha30minutepaidoncalllunchbreak.Petitioner,bywayofamemorandum,changedthemealtimeschedulefrom30
minutes to one (1) hour without pay. Since private respondent felt affected adversely by the change in the work schedule and
discontinuanceofthe30minutepaidoncalllunchbreak,itfiledonbehalfofitsmembersacomplaintwiththeLaborArbiterforunfair
laborpractice,discriminationandevasionofliability.Indeclaringthechangeintheworkscheduleasvalid,theSupremeCourtheld:
(Thepetitioner)rationalizesthatwhiletheoldworkscheduleincludeda30minutepaidlunchbreak,theemployeescouldbecalled
upontodojobsduringthatperiodastheywereoncall.Evenifdenominatedaslunchbreak,thisperiodcouldverywellbeconsideredas
workingtimebecausethefactoryemployeeswererequiredtoworkifnecessaryandwerepaidaccordinglyforworking.Withthenew
workschedule,theemployeesarenowgivenaonehourlunchbreakwithoutanyinterruptionfromtheiremployer.Forafullonehour
undisturbedlunchbreak,theemployeescanfreelyandeffectivelyusethishournotonlyforeatingbutalsofortheirrestandcomfortwhich
areconducivetomoreefficiencyandbetterperformanceintheirwork.Sincetheemployeesarenolongerrequiredtoworkduringthis
onehourlunchbreak,thereisnomoreneedforthemtobecompensatedforthisperiod.WeagreewiththeLaborArbiterthatthenewwork
schedulefullycomplieswiththedailyworkperiodofeight(8)hourswithoutviolatingtheLaborCode.Besides,thenewscheduleapplies
toallemployeesinthefactorysimilarlysituatedwhethertheyareunionmembersornot.
f.Mealtimeinvolvingseveralshifts.
Inacompanywhereworkiscontinuousforseveralshifts,themealtimebreaksshouldbecountedasworkingtimeforpurposesof
overtimecompensation.Consequently,theworkerswhoarerequiredtoworkintwo(2)fullsuccessiveshiftsshouldbepaidforsixteen
(16)hoursandnotfourteen(14),thetwohoursforrestormealtimebreaksbeingincludedascompensableworkingtime.Theidletimethat
anemployeemayspendforrestingwhereinhemayleavetheworkareashouldnotbecountedasworkingtimeonlywhentheworkisnot
continuous.[16]
8.IDLETIME,WAITINGTIME,COMMUTINGTIME,TRAVELTIME,WHETHERPARTOFHOURSOF
WORKORNOT.(ARTICLE84,LABORCODE).
a.Compensablehoursworked.
Thefollowingshallbeconsideredascompensablehoursworked:
a.Alltimeduringwhichanemployeeisrequiredtobeondutyortobeattheemployerspremisesortobeataprescribedworkplace
and
b.Alltimeduringwhichanemployeeissufferedorpermittedtowork.[17]
b.Someprinciplesindetermininghoursworked.
Thefollowinggeneralprinciplesshallgovernindeterminingwhetherthetimespentbyanemployeeisconsideredhoursworked:
a.Allhoursarehoursworkedwhichtheemployeeisrequiredtogivetohisemployer,regardlessofwhetherornotsuchhoursarespent
inproductivelabororinvolvephysicalormentalexertion
b.Anemployeeneednotleavethepremisesoftheworkplaceinorderthathisrestperiodshallnotbecounted,itbeingenoughthathe
stops working, may rest completely and may leave his workplace to go elsewhere, whether within or outside the premises of his
workplace
c.Iftheworkperformedwasnecessaryoritbenefitedtheemployerortheemployeecouldnotabandonhisworkattheendofhisnormal
workinghoursbecausehehadnoreplacement,alltimespentforsuchworkshallbeconsideredashoursworkediftheworkwaswiththe
knowledgeofhisemployerorimmediatesupervisor
d.Thetimeduringwhichanemployeeisinactivebyreasonofinterruptionsinhisworkbeyondhiscontrolshallbeconsideredworking
timeeitheriftheimminenceoftheresumptionofworkrequirestheemployeespresenceattheplaceofworkoriftheintervalistoobriefto
beutilizedeffectivelyandgainfullyintheemployeesowninterest.(Section4,RuleI,BookIII,RulestoImplementtheLaborCode).
Itbearsemphasizingthattheemployerretainsthemanagementprerogative,wheneverexigenciesoftheservicesorequire,to
changetheworkinghoursofitsemployees.[18]
Moreover,theageoldrulewhichgovernstherelationshipbetweenlaborandcapitalormanagementandemployeeofafair
dayswageforafairdayslabor,remainsthebasicfactorindeterminingtheemployeeswagesandbackwages.[19]
11

Theidletimeduringwhichanotherwiseoffdutyemployeeremainsavailabletobecalledtoworkmayormaynotbecompensable,
dependinguponthesituation.Asageneralrule,theissueofcompensabilitydependsonwhetherthetimeisspentprimarilyforthe
employersbenefitasopposedtotheemployees.Theanswerusuallyturnsupontheextenttowhichemployeeisabletoanddoes
usethetimeeffectivelyforpersonalpurposes.
Anevaluationofalltherelevantfactsbecomenecessarytodeterminecompensability.Thefollowing,amongothers,shouldbe
considered:
a.Theemployerrequirestheemployeetoremainontheemployerspremises
b. The employer requires the employee to wait at home for calls or messages or confines the employee to a highlyrestricted
geographicalarea
c.Theemployeereceivesnumerousorfrequentworkassignmentsduringtheoncallperiod
d.Theemployeemustrespondwithinashorttimeframeunderthecircumstances(especiallyiftheemployeemusttravelsomewhere
todothework)
e.Requirestheemployeetobeoncallfrequently,neverrelievestheemployeefromoncallstatus,doesnotpermittheemployeeto
exchangecallsorcallperiodswithanotherworker,ordoesnotallowtheemployeetoturndownatleastsomecallsand
f.Thereisanagreementorunderstandingcoveringthearrangement.
Somecombinationoftheforegoingfactorsispresentwhenidleoncalltimeisfoundtobecompensablework.
8.2.WAITINGTIME.
a.Whenwaitingtimeiscompensable.
Waitingtimespentbyanemployeeshallbeconsideredasworkingtimeifwaitingisanintegralpartofhisworkortheemployeeis
requiredorengagedbytheemployertowait.[20]
InAricav.NLRC,[G.R.No.78210,February28,1989,170SCRA776],itwasruledthatthe30minuteassemblytimepracticedbythe
employeesofthecompanycannotbeconsideredwaitingtimeandshouldnot,therefore,becompensable.
Althoughitisclearthatemployersmustcompensateemployeesfortimeactuallyspentworking,questionsariseastowhetherthe
minimum wage and overtime provisions of the FLSA also apply to time spent waiting to perform productive work. Under the
regulations,whetherwaitingtimeistimeworkeddependsontheparticularcircumstances.
Timespentwaitingforworkiscompensableifitisspent"primarilyforthebenefitoftheemployerand[its]business."Conversely,if
the time is spent primarily for the benefit of the employee, the time is not compensable. In determining whether waiting time
constitutes hours worked, the amount of control the employer has over the employee during the waiting time, and whether the
employeecaneffectivelyusethattimeforhisownpurposesismaterial.
b.OnDuty.
Waitingtimewhileondutyisincludedincompensabletime,especiallywhenitisunpredictable,orisofsuchshortdurationthat
the employees cannot use the time effectively for their own purposes. In those instances, the employees are to be compensated
whether their work is on or off the employer's premises,evenif theemployeesspendthe time engaging insuchamusementsas
playingcards,watchingtelevisionorreading.ExamplesinAmericanjurisprudencewhereemployeeswerefoundtobeengagedin
compensablewaitingtimeinclude:
Assemblylineworkerswhoexperiencedidletimeof45minutesorlessduetodelaysindeliveryandmechanicalfailures
Awellpumperwhoresidedontheemployer'spremisesandwhowasrequiredtobeondutyatleasteighthoursperday,seven
daysperweektopumpwellsandrepairmachinerywhenneeded
Restaurantemployeeswhowererequiredbytheiremployertoreporttoworkatacertaintimeeventhoughtheycouldnotpunch
inuntilenoughcustomerswerepresenttomakeworkavailable
Truckwasherswhowereidlewhilewaitingforthearrivalofthenexttruck
Truckdriverscarryingthemailwhohadperiodiclayoverslastingtwohoursorlessduetoloadingorunloadingproblems43
Oilwellcasingcrewswhohadtowaitforcasingsaftertheysetuptheirequipment
Truckdriversandhelperswhowererequiredbytheiremployertowaitonpremisesforassignmentsand
12

Employeeswhoexperiencedoccasionalidletimecausedbymachinerybreakdowns.
c.OffDuty
BasedonU.S.jurisprudence,periodsduringwhichanemployeeiscompletelyrelievedfromdutyandwhicharelongenoughto
enablehimtousethetimeeffectivelyforhisownpurposesarenothoursworked.Whethertimeoffworkistrulysufficienttoenable
employeestoeffectivelyusethetimefortheirownpurposesisafactualissuedependentuponthecircumstances.
Circumstancesconsideredbythecourtsincludethedurationofthetimeoffandanyotherfactswhichmayplacerestrictionsonthe
employees.Examplesofcaseswherecourtshavefoundthatemployersarejustifiedindenyingcompensationforidletimeinclude:
Atelephonedispatcherwhoonlyhadtoanswerasmallnumberoftelephonecallsfornonemergencyambulancecareeachnight
andwhowasallowedtopursueherownpersonal,socialandbusinessactivitiesduringtheeveninghours
Employeeswhowererequiredtoliveontheemployer'spremisesduringtheiroffshifthours,butwhowerefreeduringtheiroff
dutytimetosleep,eat,watchtelevision,exercise,playpingpongorcards,readandengageinotherpersonalamusementsand
Truckdriversresponsibleforpickingupanddeliveringthemailwhowerefreetoattendtopersonalmattersandoccupytheir
timeastheydesiredduringthewaitingtimebetweenscheduledruns.
8.3.COMMUTINGTIMEANDTRAVELTIME.
TherulesapplicabletotraveltimeinaccordancewiththeManualissuedbytheDepartmentofLaborandEmploymentare
discussedbelow.
a.Travelfromhometowork.
Anemployeewhotravelsfromhomebeforehisregularworkdayandreturnstohishomeattheendoftheworkdayisengagedin
ordinaryhometoworktravelwhichisanormalincidentofemploymentand,therefore,notconsideredashoursworked.Thisistrue
whetherheworksatafixedlocationoratdifferentjobsites.
Butwhilenormaltravelfromhometoworkisnotworkingtime,ifanemployeereceivesanemergencycalloutsideofhisregular
workinghoursandisrequiredtotraveltohisregularplaceofbusinessorsomeotherworksite,allofthetimespentinsuchtravelis
consideredworkingtime.
b.Travelthatisallinthedayswork.
Timespentbyanemployeeintravelaspartofhisprincipalactivity,suchastravelfromjobsitetojobsiteduringtheworkday,must
becountedashoursworked.Whereanemployeeisrequiredtoreportatameetingplacetoreceiveinstructionsortoperformotherwork
there,ortopickandtocarrytools,thetravelfromthedesignatedplacetotheworkplaceispartofthedaysworkandmustbecountedas
hoursworkedregardlessofcontract,customorpractice.Ifanemployeenormallyfinisheshisworkonthepremisesat5:00p.m.andis
senttoanotherjobwhichhefinishedat8:00p.m.andisrequiredtoreturntohisemployerspremisesarrivingat9:00p.m.,allofthetime
isworkingtime.However,iftheemployeegoeshomeinsteadofreturningtohisemployerspremises,thetravelafter8:00p.m.ishome
toworktravelandisnothoursworked.
c.Travelawayfromhome.
Travelthatkeepstheemployeeawayfromhomeovernightistravelawayfromhome.Travelawayfromhomeisclearlyworking
timewhenitcutsacrosstheemployeesworkday.Theemployeeissimplysubstitutingtravelforotherduties.Thetimeisnotonlyhours
workedonregularworkingdaysduringnormalworkinghoursbutalsoduringthecorrespondinghoursonnonworkingdays.Thus,ifan
employeeregularlyworksfrom9:00a.m.to5:00p.m.fromMondaythroughFriday,thetraveltimeduringthesehoursisworkingtime.
Regularmealperiodisnotcounted.Asanenforcementpolicy,theDepartmentofLaborandEmploymentdoesnotconsiderasworking
timethattimespentintravelawayfromhomeoutsideofregularworkinghoursasapassengeronanairplane,train,boat,busor
automobile.
Anyworkwhichanemployeeisrequiredtoperformwhiletravellingmustbecountedashoursworked.Anemployeewhodrives
13

exceptduringbonafidemealperiodsorwhenheispermittedtosleepinadequatefacilitiesfurnishedbytheemployer.
9.OVERTIMEWORK(ARTICLE87,LABORCODE).
a.Someprinciplesonovertimework.
1.Workrenderedafternormaleight(8)hoursofworkiscalledovertimework.
2. In computing overtime work, "regular wage" or "basic salary" means "cash" wage only withoutdeduction
forfacilitiesprovidedbytheemployer.
3."Premiumpay"meanstheadditionalcompensationrequiredbylawforworkperformedwithin8hoursonnonworkingdays,
suchasregularholidays,specialholidaysandrestdays.
4."Overtimepay"meanstheadditionalcompensationforworkperformedbeyond8hours.Everyemployeeentitledtopremium
payisalsoentitledtothebenefitofovertimepay.
5.Illustrationsonhowovertimeiscomputed:
a.Forovertimeworkperformedonanordinaryday,theovertimepayisplus25%ofthebasichourlyrate.
b.Forovertimeworkperformedonarestdayoronaspecialday,theovertimepayisplus30%ofthebasichourlyratewhich
includes30%additionalcompensationasprovidedinArticle93[a]oftheLaborCode.
c.Forovertimeworkperformedonarestdaywhichfallsonaspecialday,theovertimepayisplus30%ofthebasichourlyrate
whichincludes50%additionalcompensationasprovidedinArticle93[c]oftheLaborCode.
d.Forovertimeworkperformedonaregularholiday,theovertimepayisplus30%ofthebasichourlyratewhichincludes
100%additionalcompensationasprovidedinArticle94[b]oftheLaborCode.
e.Forovertimeworkperformedonarestdaywhichfallsonaregularholiday,theovertimepayisplus30%ofthebasichourly
ratewhichincludes160%additionalcompensation.
b.Distinctionbetweenpremiumpayandovertimepay.
Premiumpayreferstotheadditionalcompensationrequiredbylawforworkperformedwithineight(8)hoursonnon
workingdays,suchasrestdaysandspecialdays.[21]
Overtimepayreferstotheadditionalcompensationforworkperformedbeyondeight(8)hoursaday.Everyemployee
whoisentitledtopremiumpayislikewiseentitledtothebenefitofovertimepay.[22]
9.1.EMERGENCYOVERTIMEWORK(ARTICLE89,LABORCODE).
a.Generalrule.
Thegeneralruleremainsthatnoemployeemaybecompelledtorenderovertimeworkagainsthiswill
b.Exceptionswhenemployeemaybecompelledtorenderovertimework:
1.WhenthecountryisatwarorwhenanyothernationalorlocalemergencyhasbeendeclaredbytheNationalAssemblyorthe
ChiefExecutive
2.Whenovertimeworkisnecessarytopreventlossoflifeorpropertyorincaseofimminentdangertopublicsafetyduetoactual
orimpendingemergencyinthelocalitycausedbyseriousaccident,fire,floods,typhoons,earthquake,epidemicorotherdisastersor
calamities
3.Whenthereisurgentworktobeperformedonmachines,installationsorequipment,orinordertoavoidseriouslossordamage
totheemployerorsomeothercausesofsimilarnature
4.Whentheworkisnecessarytopreventlossordamagetoperishablegoods
5.Whenthecompletionorcontinuationofworkstartedbeforethe8thhourisnecessarytopreventseriousobstructionorprejudice
tothebusinessoroperationsoftheemployerand
6.Whenovertimeworkisnecessarytoavailoffavorableweatherorenvironmentalconditionswhereperformanceorqualityof
workisdependentthereon.
c.Mayanemployeevalidlyrefusetorenderovertimeworkunderanyoftheaforesaidcircumstances?
14

An employee cannot validly refuse to render overtime work if any of the aforementioned circumstances is present. When an
employeerefusestorenderemergencyovertimeworkunderanyoftheforegoingconditions,hemaybedismissedonthegroundof
insubordinationorwillfuldisobedienceofthelawfulorderoftheemployer.
9.2.UNDERTIMENOTOFFSETBYOVERTIME(ARTICLE88,LABORCODE).
Thefollowingrulesshallapply:
1.Undertimeworkonanyparticulardayshallnotbeoffsetbyovertimeonanyotherday.
2.Permissiongiventotheemployeetogoonleaveonsomeotherdayoftheweekshallnotexempttheemployerfrompayingthe
additionalcompensationrequiredbylawsuchasovertimepayornightshiftdifferentialpay.
9.3.WAIVEROFOVERTIMEPAY.
Therighttoclaimovertimepayisnotsubjecttoawaiver.Suchrightisgovernedbylawandnotmerelybytheagreementofthe
parties.[23]
Whilerightsmaybewaived,thesamemustnotbecontrarytolaw,publicorder,publicpolicy,moralsorgoodcustomsor
prejudicialtoathirdpersonwitharightrecognizedbylaw.[24]
Butifthewaiverisdoneinexchangeforandinconsiderationofcertainvaluableprivileges,amongthemthatofbeinggiventips
whendoingovertimework,therebeingnoproofthatthevalueofsaidprivilegesdidnotcompensateforsuchwork,suchwaivermaybe
consideredvalid.[25]
10.NIGHTWORK(ARTICLE86,LABORCODE).
a.Nightshiftdifferential.
Nightshiftdifferentialisequivalentto10%ofemployee'sregularwageforeachhourofworkperformedbetween10:00
p.m.and6:00a.m.ofthefollowingday.
b.Nightshiftdifferentialandovertimepay,distinguished
When the work of an employee falls at nighttime, the receipt of overtime pay shall not preclude the right to receive night
differentialpay.Thereasonis,thepaymentofthenightdifferentialpayisfortheworkdoneduringthenightwhilethepaymentof
theovertimepayisforworkinexcessoftheregulareight(8)workinghours.
c.ComputationofNightShiftDifferentialPay:
1.Wherenightshift(10p.m.to6a.m.)workisregularwork.
a.Onanordinaryday:Plus10%ofthebasichourlyrateoratotalof110%ofthebasichourlyrate.
b.Onarestday,specialdayorregularholiday:Plus10%oftheregularhourlyrateonarestday,specialdayorregular
holidayoratotalof110%oftheregularhourlyrate.
2.Wherenightshift(10p.m.to6a.m.)workisovertimework.
a.Onanordinaryday:Plus10%oftheovertimehourlyrateonanordinarydayoratotalof110%oftheovertimehourlyrateon
anordinaryday.
b.Onarestdayorspecialdayorregularholiday:Plus10%oftheovertimehourlyrateonarestdayorspecialdayorregular
holiday.
3.Forovertimeworkinthenightshift.Sinceovertimeworkisnotusuallyeight(8)hours,thecompensationforovertimenight
shiftworkisalsocomputedonthebasisofthehourlyrate.
a.Onanordinaryday.Plus10%of125%ofbasichourlyrateoratotalof110%of125%ofbasichourlyrate.
b.Onarestdayorspecialdayorregularholiday.Plus10%of130%ofregularhourlyrateonsaiddaysoratotalof110%of
130%oftheapplicableregularhourlyrate.
11.CBAPROVISIONVISVISOVERTIMEWORK.
a.Validityofstipulatedovertimerates.
Generally,thepremiumpayforworkperformedontheemployeesrestdaysoronspecialdaysorregularholidaysisincludedas
15

employer pays only the minimum overtime rates prescribed by law. The employees and employer, however, may stipulate in their
collective bargaining agreement (CBA) the payment of overtime rates higher than those provided by law and exclude the premium
paymentsinthecomputationofovertimepay.Suchagreementmaybeconsideredvalidonlyifthestipulatedovertimepayrateswillyield
totheemployeesnotlessthantheminimumprescribedbylaw.[26]
b.Builtinovertimepay.
Incasetheemploymentcontractstipulatesthatthecompensationincludesbuiltinovertimepayandthesameisdulyapprovedby
the Director of the Bureau of Employment Services (now Bureau of Local Employment), the nonpayment by the employer of any
overtimepayforovertimeworkisjustifiedandvalid.[27]
InPALEmployeesSavingsandLoanAssociation,Inc.[PESALA]v.NLRC,[G.R.No.105963,August22,1996],wheretheperiod
ofnormalworkinghoursperdaywasincreasedtotwelve(12)hours,itwasheldthattheemployerremainsliableforwhateverdeficiency
intheamountforovertimeworkinexcessofthefirsteight(8)hours,afterrecomputationshowssuchdeficiency.
=========== ====================================
TOPICUNDERTHESYLLABUS
C.LABORSTANDARDS
2.Wages
a.Noworknopayprinciple

b.Coverage/Exclusions
c.Facilitiesvssupplements
d.Wagesvs.salaries
e.Wagedistortion
f.CBAvisvisWageOrdersCBAcreditability
g.Nondiminutionofbenefits
h.Workerspreferenceincaseofbankruptcy
i.LaborCodeprovisionsforwageprotection

j.Allowabledeductionswithoutemployeesconsent
k.Attorneysfeesandunionservicefeeinlaborcases
l.Criteria/FactorsforWageSetting
====== ==========================================

1.NOWORK,NOPAYPRINCIPLE.
a.Actualwork,thebasisofclaimforwages.
Itmustbeemphasizedthattheageoldrulegoverningtherelationbetweenlaborandcapital,ormanagementandemployeeof
work,nopayorfairdayswageforfairdayslaborremainstobeadheredinourjurisdictionasthebasicfactorindeterminingthe
wagesofemployees.Iftheworkerdoesnotwork,heisgenerallynotentitledtoanywageorpay.Theexceptioniswhenitwasthe
employer who unduly prevented him from working despite his ableness, willingness and readiness to work or in cases where he is
illegallylockedoutorillegallysuspendedorillegallydismissed,orotherwiseillegallypreventedfromworking,inwhichevent,heshould
beentitledtohiswage.[28]
2.COVERAGE/EXCLUSIONS(ARTICLE97,LABORCODE).
a.Coverage.
Theminimumwageratesprescribedbylawshallbethebasiccashwageswithoutdeductiontherefromofwhateverbenefits,supplements
orallowanceswhichtheemployeesenjoyfreeofchargeasidefromthebasicpay.[29]
b.Exclusions.
Thetermbasicwagemeansalltheremunerationorearningspaidbyanemployertoaworkerforservicesrenderedonnormal
16

othermonetarybenefitswhicharenotconsideredaspartoforintegratedintotheregularsalaryoftheworkersonthedatethislawbecame
effective.[30]
Further,asheldinHondaPhils.,Inc.v.SamahanngMalayangManggagawasaHonda,[G.R.No.145561,June15,2005,460
SCRA187],thefollowingshouldbeexcludedfromthecomputationofbasicsalary,towit:paymentsforsick,vacationandmaternity
leaves,nightdifferentials,regularholidaypayandpremiumsforworkdoneonrestdaysandspecialholidays.[31]
3.FACILITIESVS.SUPPLEMENTS.
a.Facilities,defined.
Thetermfacilitiesincludesarticlesorservicesforthebenefitoftheemployeeorhisfamilybutdoesnotincludetoolsofthe
tradeorarticlesorservicesprimarilyforthebenefitoftheemployerornecessarytotheconductoftheemployersbusiness.[32]Theyare
itemsofexpensenecessaryforthelaborersandhisfamilysexistenceandsubsistencewhichformpartofthewageandwhenfurnishedby
theemployer,aredeductibletherefrom,sinceiftheyarenotsofurnished,thelaborerwouldspendandpayforthemjustthesame.[33]
b.Supplements,defined.
Thetermsupplementsmeansextraremunerationorspecialprivilegesorbenefitsgiventoorreceivedbythelaborersoverand
abovetheirordinaryearningsorwages.[34]
c.Facilitiesandsupplements,distinguished.
Thebenefitorprivilegegiventotheemployeewhichconstitutesanextraremunerationoverandabovehisbasicorordinary
earningorwage,issupplementandwhensaidbenefitorprivilegeispartofthelaborersbasicwage,itisafacility.Asearlierpointedout,
thecriterionisnotsomuchwiththekindofthebenefitoritem(food,lodging,bonusorsickleave)givenbutitspurpose.Thus,freemeals
suppliedbytheshipoperatortocrewmembers,outofnecessity,cannotbeconsideredasfacilitiesbutsupplementswhichcouldnotbe
reducedhavingbeengivennotaspartofwagesbutasanecessarymatterinthemaintenanceofthehealthandefficiencyofthecrew
personnelduringthevoyage.[35]
d.Someprinciplesonfacilitiesandsupplements.
1.Facilitiesaredeductiblebutnotsupplements.[36]
2.Legalrequirementsmustbecompliedwithbeforedeductingfacilitiesfromwages.Theemployersimplycannotdeductthevaluefrom
theemployeeswageswithoutsatisfyingthefollowing:
(a)proofthatsuchfacilitiesarecustomarilyfurnishedbythetrade
(b)theprovisionofdeductiblefacilitiesisvoluntarilyacceptedinwritingbytheemployeeand
(c)thefacilitiesarechargedatfairandreasonablevalue.[37]
3.Anemployermayprovidesubsidizedmealsandsnackstohisemployeesprovidedthatthesubsidyshallnotbelessthanthirtypercent
(30%)ofthefairandreasonablevalueofsuchfacilities.Insuchacase,theemployermaydeductfromthewagesoftheemployeesnotmore
thanseventypercent(70%)ofthevalueofthemealsandsnacksenjoyedbytheemployees,providedthatsuchdeductioniswiththe
writtenauthorizationoftheemployeesconcerned.[38]
4.ThefreeboardandlodgingpetitionerSIPfurnisheditsemployeescannotoperateasasetofffortheunderpaymentoftheirwages.[39]
4.WAGESVS.SALARIES.
a.Wageandsalary,distinguished.[40]
1.Thetermwageisusedtocharacterizethecompensationpaidformanualskilledorunskilledlabor.Salary,ontheotherhand,is
usedtodescribethecompensationforhigherorsuperiorlevelofemployment.
2.Incasesofexecution,attachmentorgarnishmentofthecompensationofanemployeereceivedfromworkissuedbythecourtto
satisfy a judiciallydetermined obligation, a distinction should be made whether such compensation is
consideredwageorsalary.UnderArticle1708oftheCivilCode,ifconsideredawage,theemployeescompensationshallnot
subjecttoexecutionorattachmentorgarnishment,exceptfordebtsincurredforfood,shelter,clothingandmedicalattendance.Ifdeemed
asalary, such compensation is not exempt from execution or attachment or garnishment. Thus, the salary, commission and other
remunerationreceivedbyamanagerialemployee(asdistinguishedfromanordinaryworkerorlaborer)cannotbeconsideredwages.Salary
isunderstoodtorelatetoapositionoroffice,orthecompensationgivenforofficialorotherservicewhilewageisthecompensationfor
labor.[41]
17

a.Wagedistortion,asdefinedinthelawandimplementingrules.
Asdefinedbylawandimplementingrules,wagedistortioncontemplatesasituationwhereanincreaseinprescribedwagerates
resultsineitherofthefollowing:
1.Eliminationofthequantitativedifferencesintheratesofwagesorsalariesor
2. Severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an
establishmentastoeffectivelyobliteratethedistinctionsembodiedinsuchwagestructurebasedonthefollowingcriteria:
a.skills
b.lengthofserviceor
c.otherlogicalbasesofdifferentiation.[42]
Elaboratingonthisstatutorydefinition,theSupremeCourtruled:Wagedistortionpresupposesaclassificationofpositionsandranking
ofthesepositionsatvariouslevels.Onevisualizesahierarchyofpositionswithcorrespondingranksbasicallyintermsofwagesandother
emoluments.Whereasignificantchangeoccursatthelowestlevelofpositionsintermsofbasicwagewithoutacorrespondingchangein
theotherlevelinthehierarchyofpositions,negatingasaresultthereofthedistinctionbetweenonelevelofpositionfromthenexthigher
level,andresultinginaparitybetweenthelowestlevelandthenexthigherlevelorrank,betweennewentrantsandoldhires,thereexistsa
wagedistortion.xxx.Theconceptofwagedistortionassumesanexistinggroupingorclassificationofemployeeswhichestablishes
distinctionsamongsuchemployeesonsomerelevantorlegitimatebasis.Thisclassificationisreflectedinadifferingwagerateforeachof
theexistingclassesofemployees.[43]
b.Fourelementsofwagedistortion.
Thefour(4)elementsofwagedistortionareasfollows:
(1)Anexistinghierarchyofpositionswithcorrespondingsalaryrates
(2)Asignificantchangeinthesalaryrateofalowerpayclasswithoutaconcomitantincreaseinthesalaryrateofahigherone
(3)Theeliminationofthedistinctionbetweenthetwolevelsand
(4)Theexistenceofthedistortioninthesameregionofthecountry.[44]
Normally, a company has a wage structure or method of determining the wages of its employees. In a problem dealing with wage
distortion,thebasicassumptionisthatthereexistsagroupingorclassificationofemployeesthatestablishesdistinctionsamongthemon
somerelevantorlegitimatebases.[45]
Involvedintheclassificationofemployeesarevariousfactorssuchasthedegreesofresponsibility,theskillsandknowledgerequired,the
complexityofthejob,orotherlogicalbasisofdifferentiation.Thedifferingwagerateforeachoftheexistingclassesofemployeesreflects
thisclassification.
c.Formulaforresolvingwagedistortion.
InthecaseofMetropolitanBankandTrustCompanyEmployeesUnionALUTUCPv.NLRC,[G.R.No.102636,September10,1993],
theSupremeCourthasgivenitsimprimaturtothefollowingformulaforthecorrectionofwagedistortioninthepayscalestructures:
MinimumWage=%xPrescribedIncrease=DistortionAdjustment
ActualSalary
Theaboveformulawasheldtobejustandequitable.
d.Someprinciplesonwagedistortion.
1.Nowagedistortionincasewageincreasesweregrantedbyawageordertoemployeesinoneregionandthesamearenotgrantedto
theircounterpartsinotherregionswhoarenotcoveredbythesamewageorder.[46]
2.Incorrectingwagedistortion,thelawdoesnotrequirethatthedifferencewhichhadpreviouslyexistedbetweenandamongthe
employeesofdifferentclassesberestoredinexactlythesameamount.Whatisrequiredissubstantialdifferenceinsuchwagerates.[47]
6.CBAVISVISWAGEORDERSCBACREDITABILITY(ARTICLE125,LABORCODE).
a.WageincreasesandbenefitsfromCBAdifferentfromthosegrantedbylaw.
18

WageincreasesandbenefitsderivedfromlawandwageorderandthosefromtheCBAorcompanypolicyorpracticeareseparate
anddistinctfromeachother,unlessotherwiseprovidedbytheagreementitselforbylaw.[48]
TheCBAmandatedwageincreasesaregrantedafterseriousbargainingnegotiationsbetweentheemployerandtheemployees
throughtheirdulyrecognizedorcertifiedbargainingagent.Thelegallymandatedwageincreasesandbenefitsareimposedbythe
government,throughtheRegionalTripartiteWagesandProductivityBoards(RTWPBs)withoutthebenefitofanybargainingnegotiations
althoughpublichearingsareconductedpriortothepromulgationofanywageordertheyissue.
Oncegranted,bothCBAmandatedandlegislatedwageincreasesandbenefitsshouldbefullycompliedwithbytheemployers
underpainofbeingpenalizedunderthelaw.
b.MaterialityoftheintentionofthepartiestotheCBA.
ACBA,justlikeanycontract,issubjecttointerpretationorconstructionifthereisambiguityinitsprovisionsorstipulations.Ifno
suchambiguityexists,itsprovisionswhichmustbereadtogetherwithitsotherstipulationsandnotinisolationfromoneanother,should
begiventheirliteralmeaning,followingthebasicrulesoflegalhermeneutics.
Thepurposeofapplyingtherulesoflegalhermeneuticsistoascertaintheintentionofthepartiestotheagreement.Once
determined,suchintentionshouldbegivenfulleffectandforceasbetweenthem,itbeingunderstoodthatsuchCBAistheirlaw.The
principlethattheCBAisthelawbetweenthecontractingpartiesstandsstrongandtrue.[49]
Hence,itiswellsettledthatifthepurposeofthepartiesinenteringintoastipulationonwageincreasesistograntthesame
separateanddistinctfromwhateverwageincreasesasmaybegrantedbylaworwageorder,thentheworkersareentitled,nodoubt,to
boththeCBAmandatedandlegallymandatedwageincreasesduringtheperiodwhenbothincreasesareconcurrentlyeffective.The
manifest will and intent of the parties to treat the legislated increases as equivalent pro tanto to those stipulated in their bargaining
agreementmustberespectedandgiveneffect.[50]
c.CreditabilityofCBAincreasestoWageOrderincreases.
ChargeabilityorcreditabilityclauseisaprovisionintheCBAorinthelaworwageorderallowingCBAmandatedincreasestobe
chargedorcreditedascompliancewiththestatutorywageincreasesmandatedororderedbylaworwageorder.Thisisavalidprovision
intheCBAorinthelaworwageordermandatingwageincreases,providedthatafterchargingorcreditingthereof,theamountofwages
oftheemployeesshallremainequivalenttooroverandabovetheprevailingminimumwagesetbylaworwageorder.Wherethe
increasesarelessthantheapplicableamountprovidedinthelaworwageorder,theemployerisrequiredtopaythedifference.[51]
d.WageOrdersissuedbyRTWPBs.
Wage Orders issued by the various Regional Tripartite Wages and Productivity Boards (RTWPBs) throughout the Philippines
usually,althoughnotineverycase,containaprovisiononchargeability.
For instance, in Wage Order No. NCR15 [effective July 01, 2010], the following provision on creditability or chargeability is
foundinitsSection10,towit:
Section 10. CREDITABLE WAGE INCREASE.Anyincreasegrantedbyanemployerinanorganizedestablishmentwithinthree(3)monthspriortotheeffectivityof
thisOrdershallbecreditedascompliancewiththeprescribedincreasesetforthherein,providedthatanagreementtothiseffecthasbeenforgedbetweenthepartiesora
collectivebargainingagreementprovisionallowingcreditabilityexists.IntheabsenceofsuchanagreementorprovisionintheCBA,anyincreasegrantedbytheemployer
shallnotbecreditedascompliancewiththewageincreaseprescribedinthisOrder.Inunorganizedestablishments,anyincreasegrantedbytheemployerwithinfive(5)
months prior to the effectivity of this Order shall be credited as compliance therewith. In case the increases given are less than the prescribed Minimum Wage, the
employershallpaythedifference.Suchincreasesshallnotincludeanniversaryincreases,meritwageincreasesandthoseresultingfromtheregularizationorpromotionof
employees.

RuleIVoftheImplementingRulesofsaidWageOrderexpoundsthisfurtherinmoredetails,thus:
RULE IV
CREDITABLE INCREASE
Section 1. ORGANIZED ESTABLISHMENTS.Wageincreasesgrantedbyanemployerinanorganizedestablishmentwithinthree(3)monthspriortotheeffectivityof
theOrdermaybecreditedascompliancewiththeprescribedincreasesetforththereinProvidedthatanagreementtothiseffecthasbeenforgedbetweenthepartiesora
provisioninthecollectivebargainingagreementallowingcreditabilityexists.IntheabsenceofsuchanagreementorprovisionintheCBA,anyincreasegrantedbythe
employershallnotbecreditedascompliancewiththeincreaseprescribedinthisOrder.
19

effectivityoftheOrdermaybecreditedascompliance.
Section 3. CREDITABLE INCREASES GIVEN IN THE FORM OF ALLOWANCES.Wheretheincreasegivenbytheemployerisintheformofallowances, the
employer shall integrate the same into the basic wage of theworkers to comply with the P404.00 or P367.00 per day minimum basic paywhichever is applicable,
prescribed under the Order. However, if the amount of the increase is greater than the increasegranted under the Wage Order, the employer has the option to
integratepartiallyorinfulltheallowancesearliergiven.Intheeventofpartialintegration,anyexcessmayberetainedasallowances.
Section 4. CREDITABLE INCREASES GIVEN LESS THAN THE PRESCRIBED ADJUSTMENTS.In case the increases given are less than the prescribed
adjustments, the employer shall pay the difference. Such increases shall not include anniversary increases, merit wage increases, and those resulting from the
regularizationorpromotionofemployees.

e.Validityofchargeability/creditabilityclause.
ThevalidityofchargeabilityorcreditabilityclausehadlongbeenupheldbytheSupremeCourt.InearlierWageOrders
containingchargeabilityclauses,suchasWageOrdersNos.5[June11,1984]and6[October26,1984],itwasruledthatsuchclauseis
groundedonpublicpolicytoencourageemployerstograntwageandallowanceincreasesprescribedbythestatuteoradministrative
regulation.[52]
Moreover,accordingtoFilipinasGolf&CountryClub,Inc.v.NLRC,[G.R.No.61918,August23,1989,176SCRA625]
stipulationswhichsubordinatecontractualwageincreasestothoseimposedorprescribedbylawarenotcontrarytolaw,customs,public
orderorpublicpolicy.
InPhilippineTelegraphandTelephoneCorporationv.NLRC,[G.R.No.99858,June1995],theCBAprovisionsinquestionreveal
quitesufficientlytheparties'intentiontoconsidersalaryincreasesprovidedintheCBAtobecreditabletowageincreasesthatareormay
bemandatedwithintheapplicableperiodbylaw.Inholdingthatthereisnothingsinisterinthiskindofstipulation,theHighCourtcited
thesaidcaseofFilipinasGolfandCountryClub,Inc.,vs.NLRC,whereitwasstatedthatsuchagreementsmerelycreateanequivalence
betweenlegalandcontractualimperatives,renderingbothobligationssusceptibleofperformancebycompliancewitheither,subjectonly
totheconditionthatwheretheincreasesgivenundertheagreementfallshortinamountofthosefixedbylaw,thedifferencemustbemade
upbytheemployer.
f.LawispresumedpartoftheCBA.
Theprovisionsofexistinglawsformpartofavalidcontract.Thisisawellsettledrule.Thereisnoneedforthepartiestomakeany
expressreferencethereto.Thelawispresumedtobepartofthecontract.[53]
g.ProhibitiononCBAstipulationsbelowminimumlegalstandards.
ThepartiestoaCBAarenotallowedtostipulatebelowtheminimumstandardsprovidedunderthelaw.EnteringintoaCBAwhich
containstermsandconditionsofemploymentbelowminimumstandardsestablishedbylawwillnotconstituteabartotheconductofa
certificationelectiondespitetheregistrationoftheCBAwiththeDepartmentofLaborandEmployment.
Previously,enteringintoaCBAprovidingbenefitsbelowtheminimumstandardssetbylawisoneofthegroundsforcancellationof
union registration under Article 239 [f] of the Labor Code. This ground, however, has been deleted by the amendatory provision of
RepublicActNo.9481,whichtookeffectonJune14,2007.
7.NONDIMINUTIONOFBENEFITS(ARTICLE100,LABORCODE).
a.PrincipleunderArticle100.
Article100oftheLaborCodeordainstwo(2)principles,namely,[1]thenoneliminationand(2)thenondiminutionof the
supplementsorotherbenefitsofemployeesbeingenjoyedbythematthetimeofthepromulgationoftheLaborCodeonMay1,1974.
Therefore,thereductionordiminutionorwithdrawalbyemployersofanysuchbenefits,supplementsorpaymentsasprovidedinexisting
laws,individualagreementsorcollectivebargainingagreementsbetweenworkersandemployersorvoluntaryemployerpracticeorpolicy,
isnotallowed.[54]
b.Thenoneliminationornondiminutionprincipleappliedeventobenefitsgrantedafterthepromulgation/effectivityoftheLabor
Code.
AlbeitArticle100isclearthatthetwinprinciplesofnoneliminationandnondiminutionofbenefitsapplyonlytothebenefitsbeing
enjoyedatthetimeofthepromulgationoftheLaborCode,theSupremeCourt,however,hasconsistentlycitedArticle100asbeing
applicableeventobenefitsgrantedaftersaidpromulgation.Ithas,infact,beentreatedasthelegalanchorforthedeclarationofthe
invalidityofsomanyactsofemployersdeemedtohaveeliminatedordiminishedthebenefitsofemployees.
20

Theillegalandunjustifiedeliminationordiminutionofcertainbenefitsmayresultinillegaldemotion.Underestablishedjurisprudence,
thereisdemotionwheretheactoftheemployerresultsintheloweringinpositionorrankorreductioninsalaryoftheemployee.[55]
Itinvolvesasituationwhereanemployeeisrelegatedtoasubordinateorlessimportantpositionconstitutingareductiontoalowergrade
orrankwithacorrespondingdecreaseindutiesandresponsibilitiesandusuallyaccompaniedbyadecreaseinsalary.[56]
b.Wheneliminationordiminutionofbenefitsconstitutesconstructivedismissal.
Elimination or diminution of certain benefits may result in the constructive dismissal of an employee. Constructive dismissal is an
involuntary resignation resorted to when continued employment is rendered impossible, unreasonable or unlikely when there is a
demotioninrankand/oradiminutioninpayorwhenacleardiscrimination,insensibilityordisdainbyanemployerbecomesunbearable
totheemployeethatitcouldforecloseanychoicebyhimexcepttoforegohiscontinuedemployment.[57]
8.WORKERSPREFERENCEINCASEOFBANKRUPTCY(ARTICLE110,LABORCODE).
a.RuleunderArticle110.
Article110,[58]enunciatestheconceptofworkerpreferencetocovernotonlyunpaidwagesbutalso other monetary
claimstowhichevenclaimsofthegovernmentmustbedeemedsubordinate.Thus,itisexplicitlyprovidedthat(s)uchunpaidwages
andmonetaryclaimsshallbepaidinfullbeforeclaimsofthegovernmentandothercreditorsmaybepaid.
Itsimplementingrule[59]states:
Section 10. Payment of Wages and Other Monetary Claims in Case of Bankruptcy. In case of bankruptcy or liquidation of the
employersbusiness,theunpaidwagesandothermonetaryclaimsoftheemployeesshallbegivenfirstpreferenceandshallbepaidinfull
beforetheclaimsofgovernmentandothercreditorsmaybepaid.[Underliningsupplied]
Despitetheclearletterofthelawanditsimplementingrule,theSupremeCourtconsistentlyheldinaplethoraofcasesthattherightto
preference given to workers under Article 110 cannot exist in any effective way prior to the time of its presentation in distribution
proceedings.Inotherwords,thereshouldfirstbeadeclarationofbankruptcyorjudicialliquidation.[60]
Itisbeyonddisputethatemployeesindeedenjoyfirstpreferenceintheeventofbankruptcyorliquidationofanemployersbusiness.
[61]ButArticle110appliesonlyincaseofbankruptcyorjudicialliquidationoftheemployer.[62]Judicialproceedingsinremisrequired
forcreditorsclaimsagainstdebtorstobecomeoperative.[63]
Inthisjurisdiction,bankruptcy,insolvencyandgeneraljudicialliquidationproceedingsprovidetheonlypropervenueforthe
enforcementofacreditor'spreferentialrightsuchasthatestablishedinArticle110oftheLaborCode,fortheseareinremproceedings
bindingagainstthewholeworldwhereallpersonshavinganyinterestintheassetsofthedebtoraregiventheopportunitytoestablish
theirrespectivecredits.[64]
TocontendthatArticle110oftheLaborCodeisapplicablealsotoextrajudicialproceedingswouldbeputtingtheworkerinabetter
positionthantheStatewhichcouldonlyassertitsownpriorpreferenceincaseofajudicialproceeding.[65]
b.Preferenceoftaxesandclaimsofgovernment.
Bywayofunderscoringthispointonpreferenceoftaxes,worthreiteratingistherulinginCommissionerofInternalRevenuev.NLRC,
[G.R.No.74965,November9,1994,238SCRA42],thatthereisnomeritinthecontentionthattaxesareabsolutelypreferredclaims
onlywithrespecttomovableandimmovablepropertiesonwhichtheyaredue.Theclaimofthegovernmentpredicatedonataxlien
issuperiortotheclaimofaprivatelitigantpredicatedonajudgment.Thetaxlienattachesnotonlyfromtheserviceofthewarrantof
distraintofpersonalpropertybutfromthetimethetaxbecamedueandpayable.[66]
c.Preferenceofmortgagecredit.
AmortgagecreditisaspecialpreferredcreditunderArticle2241oftheCivilCodewhileworkerspreferenceisanordinary preferred
credit.[67]
ThestatementinDevelopmentBankofthePhilippinesv.NLRC,[G.R.Nos.10026481,January29,1993,218SCRA
183],thatunderthenewArticle110oftheLaborCode,mortgagecreditsaresubordinatetoworkersclaimismerelyanobiter.[68]
Thus,itisgraveabuseofdiscretiononthepartoftheLaborArbiterinrulingthattheemployeesmayenforcetheirfirstpreference
inthesatisfactionoftheirclaimsoverthoseofthemortgagorintheabsenceofadeclarationofbankruptcyorjudicialliquidationofthe
employer. There is nothing that prevents the employees from instituting involuntary insolvency or any other appropriate proceeding
againsttheiremployerwheretheirclaimscanbeassertedwithrespecttotheiremployersassets.[69]
The2005caseofBarayogav.AssetPrivatizationTrust,[GRNo.160073,October24,2005],continuestoaffirmthesameprinciples
21

DevelopmentCorp.(BISUDECO).TheclaimofPNBwaslatertransferredtotheAssetPrivatizationTrust(APT)whichwascreatedto
conserve, provisionally manage and dispose of nonperforming assets of the Philippine government identified for privatization or
disposition. APT subsequently acquired ownership of BISUDECOs assets following foreclosure proceedings. A complaint for
underpaymentofwagesandotherlaborstandardsbenefitswasfiledbytheworkersofBISUDECO.APTlatersoldBISUDECOsassetsto
the BicolAgro Industrial Cooperative (BAPCI). The workers sought to enforce their claim against APT and BAPCI. Both the Labor
ArbiterandtheNLRCruledinfavoroftheworkersfortheirunpaidbenefits.APT,havingbeenheldliabletherefor,raisedtheissueof
whether,asmortgageeoftheiremployersassets,itcanbeheldliablefortheworkersclaims.TheSupremeCourtruledthatthemortgagee
transferee of its debtors assets does not automatically acquire the liabilities of the debtormortgagor, such as the workers claims for
benefits.Hence,APTasmortgageeofBISUDECO,cannotbeheldliableforthemonetaryclaimsofthelattersworkers.CitingDBPv.
NLRC,[G.R.Nos.8276364,March19,1990,183SCRA328],itfurtherheldthattheworkerspreferenceofcreditisnotalienthat
attachestospecificpropertiesoftheirinsolventemployer.Amortgageeslien,ontheotherhand,createsachargeonthedebtorcompanys
particularpropertyand,hence,shouldprevailovertheworkerspreferenceofcredit.TheSupremeCourtreiteratedtherulethatthebenefit
ofArticle110cannotbeinvokedoutsidebankruptcyorjudicialproceedingswheretheclaimsofallcreditorsmaybeinventoriedand
determined.
d.MeaningofwagesinArticle110.
ThetermwagesunderArticle110oftheLaborCodemayberegardedasembracingwithinitsscope,severancepayorterminationor
separationpay.[70]
9.LABORCODEPROVISIONFORWAGEPROTECTION(ARTICLES112TO119,LABORCODE).
ThefollowingprovisionsoftheLaborCodearemeanttoprotectwage:
ART. 112.Noninterference 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 manner force, compel, or oblige his employees to purchase merchandise, commodities or other property from any other
person, or otherwise make use of any store or services of such employer or any other person.
ART. 113.Wage deduction. No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees,
except:
(a) In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by
him as premium on the insurance
(b) For union dues, in cases where the right of the worker or his union to checkoff 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.
ART. 114. Deposits for loss or damage. No employer shall require his worker to make deposits from which deductions shall be made for the
reimbursement of loss of or damage to tools, materials, or equipment supplied 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 necessary or desirable as determined by
the Secretary of Labor and Employment in appropriate rules and regulations.
ART. 115.Limitations. No deduction from the deposits of an employee for the actual amount of the loss or damage shall be made unless the employee
has been heard thereon, and his responsibility has been clearly shown.
ART. 116.Withholdingofwagesandkickbacksprohibited. 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 without the
workers consent.
ART. 117.Deductiontoensureemployment. It shall be unlawful to make any deduction from the wages of any employee for the benefit of the employer
or his representative or intermediary as consideration of a promise of employment or retention in employment.
ART. 118.Retaliatory measures. It shall be unlawful for an employer to refuse to pay or reduce the wages and benefits, discharge or in any manner
discriminate against any employee who has filed any complaint or instituted any proceeding under this Title or has testified or is about to testify in such
proceedings.
ART. 119.Falsereporting. 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.

Alltheforegoingprovisionsareconsideredprohibitionsregardingwages.
10.ALLOWABLEDEDUCTIONSWITHOUTEMPLOYEESCONSENT(ARTICLE113,LABORCODE).
a.Generalrule.
Thegeneralruleisthatanemployer,byhimselforthroughhisrepresentative,isprohibitedfrommakinganydeductionsfromthe
22

b.DeductionsallowedunderArticle113.
Article113allowsonlythree(3)kindsofdeductions,namely:
(a)Incaseswheretheworkerisinsuredwithhisconsentbytheemployer,andthedeductionistorecompensetheemployerfortheamount
paidbyhimaspremiumontheinsurance
(b)Foruniondues,incaseswheretherightoftheworkerorhisuniontocheckoffhasbeenrecognizedbytheemployerorauthorizedin
writingbytheindividualworkerconcernedand
(c)IncaseswheretheemployerisauthorizedbylaworregulationsissuedbytheSecretaryofLaborandEmployment.
c.DeductionsallowedunderotherprovisionsoftheLaborCodeandotherlaws.
Deductionsfromthewagesofemployeesmaybemadebytheemployerinanyofthefollowingcases:
1.DeductionsforlossordamageunderArticle114oftheLaborCode
2.DeductionsmadeforagencyfeefromnonunionmemberswhoacceptthebenefitsundertheCBAnegotiatedbytherecognizedor
certifiedbargainingunion.Thisformofdeductiondoesnotrequirethewrittenauthorizationofthenonunionmemberconcerned[72]
3.Unionservicefee[73]
4.Whenthedeductionsarewiththewrittenauthorizationoftheemployeeforpaymenttoathirdpersonandtheemployeragreestodoso,
providedthatthelatterdoesnotreceiveanypecuniarybenefit,directlyorindirectly,fromthetransaction[74]
5.Deductionsforvalueofmealandotherfacilities[75]
6.DeductionsforpremiumsforSSS,PhilHealth,employeescompensationandPagIBIG
7.WithholdingtaxmandatedundertheNationalInternalRevenueCode(NIRC)
8.Withholdingofwagesbecauseoftheemployeesdebttotheemployerwhichisalreadydue[76].
9. Deductions made pursuant to a court judgment against the worker under circumstances where the wages may be the subject of
attachmentorexecutionbutonlyfordebtsincurredforfood,clothing,shelterandmedicalattendance[77]
10.Whendeductionsfromwagesareorderedbythecourt
11.Salarydeductionsofamemberofalegallyestablishedcooperative.[78]
d.Someprinciplesondeductionsfromemployeessalaryorwage.
1.Debtduetotheemployermaybesetoffagainsttheemployeeswagesandbenefits.[79].
2.Tovalidlysetoffdebt,theemployeesdebtshouldarisefrom,orbeconnectedwith,theemploymentrelationship.Evidenceshouldbe
presentedbytheemployertoprovethattheindebtednessaroseoutoforwasincurredinconnectionwiththeiremploymentrelationship.
Moreover,thesetoffshouldbeassertedduringtheproceedingsbeforetheLaborArbiterandnotafterthecasehadbeenresolvedwith
finality.[80]
3.Deductionsduetotardinessorabsencesarevalid.
4. 13thmonth pay is considered part of wages within the meaning and contemplation of Article 97 [f] of the Labor Code. No
deduction,therefore,canbemadetherefromwithouttheknowledgeandconsentoftheemployeeconcerned.Thus,thedeductionofSSS
loanandthevalueofshoesfromthe13thmonthpayoftheemployeeisnotallowed.[81]
11.ATTORNEYSFEESANDUNIONSERVICEFEEINLABORCASES(ARTICLE111,LABORCODE).
I.ONATTORNEYSFEES.
aNonlawyersarenotentitledtoattorneysfees.
Albeitthelawallows,undercertaincircumstances,nonlawyerstoappearbeforetheLaborArbiter,NationalLaborRelations
Commission or other labor tribunals, this does not mean, however, that they are entitled to attorneys fees. Their act of representing,
appearingordefendingapartylitigantinalaborcasedoesnot,byitself,conferuponthemanylegalrighttoclaimforattorneysfees.
Entitlementtoattorneysfeespresupposestheexistenceofattorneyclientrelationship.Thisrelationshipcannotexistunlesstheclients
representativeisalawyer.[82]
23

AsheldinthecaseofAmalgamatedLaborersAssociationv.CIR,[G.R.No.L23467,March27,1968,22SCRA1266],itis
animmoralactforalawyertoenterintoanagreementwherebytheunionpresidentwillshareinhisattorneysfees.Canon34ofLegal
Ethicsproscribesandcondemnsthisarrangement.Itprovidesthatnodivisionoffeesforlegalservicesisproperexceptwithanother
lawyerbaseduponadivisionofserviceorresponsibility.Sincetheunionpresidentisnotthelawyerfortheworkers,hecannotbeallowed
toshareintheattorneysfees.
II.ONUNIONSERVICEFEES.
a.Entitlementtounionservicefees.
Therearecertaincaseswhereitisnotalawyerwhorepresentstheinterestoftheemployees.Laborfederationsandlocalunionsareallowed
inourjurisdictiontoappearascounselsinlaborproceedings.TheirappearancehasbeengivensanctionunderArticle222oftheLabor
Codewhichallowsnonlawyerstorepresenttheirorganizationoranymemberthereof.[83]
ThebestillustrativecaseonthispointisRadioCommunicationsofthePhils.,Inc.v.SecretaryofLaborandEmployment,[G.R.No.
77959,January9,1989,169SCRA38].Inthiscase,petitionercontinuouslywithheldpaymentoftheECOLAmandatedunderWage
OrderNo.1.Forthisreason,theemployeeswereforcedtoavailoftheservicesoftheiruniontheUnitedRCPICommunicationsLabor
Association(URCPICLA)FederationofUnionsofRizal(FUR)inordertosecurethebenefit.URCPICLAFURlitigatedthecaseupto
the Supreme Court. In the meantime, petitioner RCPI, without the knowledge and consent of private respondent URCPICLAFUR,
enteredintoacompromiseagreementwithBuklodngManggagawasaRCPINFL(BMRCPINFL),thenewbargainingagentoftheRCPI
employees.Petitionerthenimplementedthetermsofthecompromiseagreementwithoutpayingthe10%unionservicefeedueprivate
respondentURCPICLAFUR.
Onthesoleissueofwhetherthepublicrespondentsactedwithgraveabuseofdiscretionamountingtolackofjurisdictioninholding
petitionerRCPIsolelyliablefor"unionservicefee"torespondentURCPICLAFUR,theSupremeCourtruledinthenegative.Theunion
is entitled to union service fees considering that it was categorically found by the Labor Secretary to have been responsible for the
successfulprosecutionofthecasetoitsultimateconclusioninbehalfofitsmembers,employeesofpetitioner.Theunionsrighttofeesfor
servicesrendered,orwhatittermedas"unionservicefee,"is,therefore,indubitable.
Inthe2009caseofDealcoFarms,Inc.v.NLRC,[G.R.No.153192,January30,2009],theSupremeCourtaffirmedtheunionservice
feesof10%ofthetotalmonetaryawardearliergrantedbytheLaborArbiterandtheNLRCasitwasbasedonthefindingthatrespondents
weredismissedwithoutjustorauthorizedcause.
12.CRITERIA/FACTORSFORWAGESETTING(ARTICLE124,LABORCODE).
a.LatestNWPCGuidelinesNo.01,Seriesof2007.
NWPCGuidelinesNo.01,Seriesof2007wasissuedbytheNWPConJune19,2007,promulgatingtheAmendedRulesofProcedureon
MinimumWageFixinggoverningtheproceedingsintheCommissionandtheRTWPBsinthefixingofminimumwageratesbyregion,
provinceorindustry.
Byvirtueofthislatestissuance,thepreviousNWPCGuidelinesNo.00195andtheJune4,1990Rulesarenowdeemedrepealedpursuant
to Section 1, Rule XII thereof which declares that (a)ll existing rules, regulations or orders or any part thereof inconsistent with this
AmendedRulesarehereby,repealed,amendedormodifiedaccordingly.
b.Conductofwageandproductivitystudies.
The Board (RTWPB) shall, subject to the guidelines issued by the Commission (NWPC), conduct continuing studies of wage rates,
productivityandotherconditionsintheregion,provincesorindustriestherein.TheBoardshallinvestigateandstudyallpertinentfacts,
andbasedonstandardsandcriteria(seebelow)shalldeterminewhetherawageordershouldbeissued.[84]
c.Standards/Criteriaforminimumwagefixing.
TheminimumwageratestobeestablishedbytheBoardshallbeasnearlyadequateasiseconomicallyfeasibletomaintaintheminimum
standardsoflivingnecessaryforthehealth,efficiencyandgeneralwellbeingoftheworkerswithintheframeworkofnationaleconomic
andsocialdevelopmentgoals.Inthedeterminationofregionalminimumwages,theBoardshall,amongotherrelevantfactors,consider
thefollowing:
24

1)Demandforlivingwages
2)Wageadjustmentvisvistheconsumerpriceindex
3)Costoflivingandchangestherein
4)Needsofworkersandtheirfamilies
5)Improvementsinstandardsofliving
(b)Capacitytopay
1)Fairreturnoncapitalinvestedandcapacitytopayofemployers
2)Productivity
(c)Comparablewagesandincomes
1)Prevailingwagelevels
(d)Requirementsofeconomicandsocialdevelopment
1)Needtoinduceindustriestoinvestinthecountryside
2)Effectsonemploymentgenerationandfamilyincome
3)Equitabledistributionofincomeandwealthalongtheimperativesofeconomicandsocialdevelopment.(Section2,RuleII,Ibid.).
=================================
TOPICUNDERTHESYLLABUS
C.LABORSTANDARDS
3.RestDay
a.Righttoweeklyrestday
b.Preferenceoftheemployee
c.Whenworkonrestdayauthorized
== ===============================

1.RIGHTTOWEEKLYRESTDAY(ARTICLE91,LABORCODE).
a.Coverage.
Theruleonweeklyrestperiodisapplicabletoallemployers,whetheroperatingforprofitornot,includingpublicutilitiesoperated
byprivatepersons.[85]
b.Weeklyrestperiod.
Everyemployerisrequiredtogivehisemployeesarestperiodofnotlessthantwentyfour(24)consecutivehoursaftereverysix(6)
consecutivenormalworkdays.[86]
c.Scheduleofrestday.
Wheretheweeklyrestisgiventoallemployeessimultaneously,theemployershouldmakeknownsuchrestperiodbymeansofa
writtennoticepostedconspicuouslyintheworkplaceatleastone(1)weekbeforeitbecomeseffective.[87]
Wheretherestperiodisnotgrantedtoallemployeessimultaneouslyandcollectively,theemployershallmakeknowntothe
employeestheirrespectiveschedulesofweeklyrestdaythroughwrittennoticespostedconspicuouslyintheworkplaceatleastone(1)
weekbeforetheybecomeeffective.[88]
25

a.Employeespreferenceofrestdaybasedonreligiousgrounds.
By express provision of Article 91 of the Labor Code, the exercise by the employer of such right and prerogative is subject to the
preferenceinthechoicebytheemployeeofhisrestdaybasedonreligiousgrounds.Article91,infact,makestheemployerdutyboundto
respectsuchpreferenceoftheemployeeifbasedonreligiousgrounds.
Theemployeeshouldmakeknownhispreferencetotheemployerinwritingatleastseven(7)daysbeforethedesiredeffectivityofthe
initialrestdaysopreferred.[89]
Where,however,thechoiceoftheemployeesastotheirrestdaybasedonreligiousgroundswillinevitablyresultinserious
prejudiceorobstructiontotheoperationsoftheundertakingandtheemployercannotnormallybeexpectedtoresorttootherremedial
measures,theemployermaysoscheduletheweeklyrestdayoftheirchoiceforatleasttwo(2)daysinamonth.[90]
3.WHENWORKONRESTDAYAUTHORIZED(ARTICLE92,LABORCODE).
a.Generalrule.
Noemployeeshallberequiredagainsthiswilltoworkonhisscheduledrestdayexceptunderthecircumstancesprovidedunder
Article92oftheLaborCodewhereworkonsuchdaymaybecompelled.However,incaseworkonrestdayisrequiredandnotoneofthe
saidcircumstancesispresent,theemployeemayworkduringsuchrestdaybutonlyonvoluntarybasis.Andonceanemployeevolunteers
toworkonhisrestday,heshouldexpresssuchwillingnessanddesiretoworkinwriting.Accordingly,heshouldbepaidtheadditional
compensationforworkingonhisrestdayunderthelaw.[91]
b.Compulsoryworkonscheduledrestday.
Anemployermayrequireanyofhisemployeestoworkonhisscheduledrestdayforthedurationofthefollowingemergencyand
exceptionalconditions:
a.Incaseofactualorimpendingemergenciescausedbyseriousaccident,fire,flood,typhoon,earthquake,epidemicorotherdisaster
orcalamity,topreventlossoflifeandproperty,orincaseofforcemajeureorimminentdangertopublicsafety
b.Incaseofurgentworktobeperformedonmachineries,equipment,orinstallations,toavoidseriouslosswhichtheemployerwould
otherwisesuffer
c.Intheeventofabnormalpressureofworkduetospecialcircumstances,wheretheemployercannotordinarilybeexpectedtoresortto
othermeasures
d.Topreventseriouslossofperishablegoods
e.Wherethenatureoftheworkissuchthattheemployeeshavetoworkcontinuouslyforseven(7)daysinaweekormore,asinthecase
ofthecrewmembersofavesseltocompleteavoyageandinothersimilarcasesand
f. When the work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is
dependentthereon.[92]
=======================================
TOPICUNDERTHESYLLABUS
C.LABORSTANDARDS
4.Holidays
a.Righttoholidaypay
(1)Incaseofabsences
(2)Incaseoftemporarycessationofwork
(3)Ofteachers,pieceworkers,seafarers,
seasonalworkers,etc.
b.Exclusionsfromcoverage
== =====================================

1.RIGHTTOHOLIDAYPAYINCASEOFABSENCES(ARTICLE94,LABORCODE).
26

1.Employeesonleaveofabsencewithpayentitledtoholidaypaywhentheyareonleaveofabsencewithpay.[93]
2.Employeesonleaveofabsencewithoutpayonthedayimmediatelyprecedingtheregularholidaymaynotbepaidtherequired
holidaypayifhehasnotworkedonsuchregularholiday.[94]
3.EmployeesonleavewhileonSSSoremployeescompensationbenefitsEmployersshouldgrantthesamepercentageoftheholiday
payasthebenefitgrantedbycompetentauthorityintheformofemployeescompensationorsocialsecuritypayment,whicheverishigher,
ifheisnotreportingforworkwhileonsuchbenefits.[95]
4.Whendayprecedingregularholidayisanonworkingdayorscheduledrestdayshouldnotbedeemedtobeonleaveofabsenceon
thatday,inwhichcase,heisentitledtotheregularholidaypayifheworkedonthedayimmediatelyprecedingthenonworkingdayor
restday.[96]
2.RIGHTTOHOLIDAYPAYINCASEOFTEMPORARYCESSATIONOFWORK.
a.Temporaryorperiodicshutdownorcessationofworknotduetobusinessreverses.
Incasesoftemporaryorperiodicshutdownandtemporarycessationofworkofanestablishment,aswhenayearlyinventoryorwhenthe
repairorcleaningofmachineriesandequipmentisundertaken,theregularholidaysfallingwithintheperiodshouldbecompensatedin
accordancewithRuleIV[HolidaysWithPay],BookIIIoftheRulestoImplementtheLaborCode.[97]
b.Temporarycessationofoperationduetobusinesslossesorreverses.
Theregularholidayduringthetemporarycessationofoperationofanenterpriseduetobusinesslossesorfinancialreversesasauthorized
bytheSecretaryofLaborandEmploymentmaynotbepaidbytheemployer.[98]
3.RIGHTTOHOLIDAYPAYOFTEACHERS,PIECEWORKERS,SEAFARERS,SEASONALWORKERS,ETC.
ONRIGHTTOHOLIDAYPAYOFTEACHERS.
1.Privateschoolteachers,ingeneral.Privateschoolteachers,includingfacultymembersofcollegesanduniversities,maynotbepaidfor
theregularholidaysduringsemestralvacations.Theyshall,however,bepaidfortheregularholidaysduringChristmasvacation.[99]
2.Holidaypayofhourlypaidteachers.Aschoolisexemptedfrompayinghourlypaidfacultymemberstheirpayforregularholidays,
whetherthesamebeduringtheregularsemestersoftheschoolyearorduringsemestral,Christmas,orHolyWeekvacations.However,itis
liabletopaythefacultymemberstheirregularhourlyrateondaysdeclaredasspecialholidaysorif,forsomereason,classesarecalledoff
orshortenedforthehourstheyaresupposedtohavetaught,whetherextensionsofclassdaysbeorderedornotandincaseofextensions,
saidfacultymembersshalllikewisebepaidtheirhourlyratesshouldtheyteachduringsaidextensions,[100]
ONRIGHTTOHOLIDAYPAYOFPIECEWORKERS.
a.Holidaypayofpieceworkersoremployeespaidbyresults.
Whereacoveredemployeeispaidbyresultsoroutputsuchaspaymentonpiecework,hisholidaypayshouldnotbelessthan
hisaveragedailyearningsforthelastseven(7)actualworkingdaysprecedingtheregularholiday.Innocase,however,shouldthe
holidaypaybelessthantheapplicablestatutoryminimumwagerate.[101]
b.Workerspaidbyresultsclassifiedintosupervisedandunsupervised.
The principal test to determine entitlement to holiday pay is whether the employees time and performance of the work
aresupervisedorunsupervisedbytheiremployer.Ifsupervised,theemployeeisentitledtoholidaypay.Ifunsupervised,heisnot.
[102]
Thedistinctionsbetweensupervisedandunsupervisedworkerspaidbyresultsareasfollows:
(1)Thosewhosetimeandperformancearesupervisedbytheemployer.Here,thereisanelementofcontrolandsupervisionoverthe
mannerastohowtheworkistobeperformed.Apiecerateworkerbelongstothiscategoryespeciallyifheperformshisworkinthe
companypremises;and
(2)Thosewhosetimeandperformanceareunsupervised.Here,theemployerscontrolisovertheresultofthework.Workers
onpakyaoandtakaybasisbelongtothisgroup.Bothclassesofworkersarepaidperunitaccomplished.Pieceratepaymentisgenerally
practicedingarmentfactorieswhereworkisdoneinthecompanypremises,whilepaymentonpakyaoandtakaybasisiscommonly
observedintheagriculturalindustry,suchasinsugarplantationswheretheworkisperformedinbulkorinvolumesdifficulttoquantify.
Petitionersbelongtothefirstcategory,i.e.,supervisedemployees.[103]
27

UndertheStandardTermsandConditionsGoverningtheEmploymentofFilipinoSeafarersonBoardOceanGoingVessels,
providedthat(a)nyhoursofworkordutyincludinghoursofwatchkeepingperformedbytheseafarerondesignatedrestdaysand
holidaysshallbepaidrestdayorholidaypay.
ONRIGHTTOHOLIDAYPAYOFSEASONALWORKERS.
Seasonalworkersareentitledtoholidaypaywhileworkingduringtheseason.Theymaynotbepaidtherequiredregularholidaypay
duringoffseasonwheretheyarenotatwork.[104]
4.EXCLUSIONSFROMCOVERAGEOFHOLIDAYPAY.
a.Coverageexceptions.
Generally,allemployeesareentitledtocoveredbyArticle94oftheLaborCode,asamended,anditsimplementingrules,except
a.Thoseofthegovernmentandanyofthepoliticalsubdivisions,includinggovernmentownedandcontrolledcorporations;
b.Thoseofretailandserviceestablishmentsregularlyemployinglessthanten(10)workers
c.Domestichelpers
d.Personsinthepersonalserviceofanother
e.ManagerialemployeesasdefinedinBookIIIoftheLaborCode
f.Fieldpersonnelandotheremployeeswhosetimeandperformanceisunsupervisedbytheemployer
g.Thosewhoareengagedontaskorcontractbasisorpurelycommissionbasis
h.Thosewhoarepaidafixedamountforperformingworkirrespectiveofthetimeconsumedintheperformancethereof
i.Otherofficersandmembersofthemanagerialstaff
j.Membersofthefamilyoftheemployerwhoaredependentonhimforsupport.[105]
===================================
TOPICUNDERTHESYLLABUS
C.LABORSTANDARDS
5.Leaves
a.ServiceIncentiveLeavePay
(1)Righttoserviceincentiveleave
(2)Exclusionsfromcoverage
(3)Commutablenatureofbenefit
b.MaternityLeave
(1)Coverage
(2)Conditionstoentitlement
(3)Availment
c.PaternityLeave
(1)Coverage
(2)Conditionstoentitlement
(3)Availment
d.ParentalLeave
(1)Coverage
28

(3)Availment
e.Leavesforvictimsofviolence
againstwomen
(1)Coverage
(2)Conditionstoentitlement
(3)Availment
===================================

1.SERVICEINCENTIVELEAVEPAY(ARTICLE95,LABORCODE).
a.Righttoserviceincentiveleave.
Everycoveredemployeewhohasrenderedatleastone(1)yearofserviceisentitledtoayearlyserviceincentiveleaveoffive(5)
dayswithpay.[106]Thetermat least one year of service should mean service within twelve (12) months, whether continuous or
broken,reckonedfromthedatetheemployeestartedworking,includingauthorizedabsencesandpaidregularholidays,unlessthenumber
ofworkingdaysintheestablishmentasamatterofpracticeorpolicy,orthatprovidedintheemploymentcontract,islessthantwelve(12)
months,inwhichcase,saidperiodshouldbeconsideredasone(1)yearforthepurposeofdeterminingentitlementtotheserviceincentive
leavebenefit.[107]
b.Exclusionsfromcoverage.
Allemployeesarecoveredbytheruleonserviceincentiveleaveexcept:
a.Thoseofthegovernmentandanyofitspoliticalsubdivisions,includinggovernmentownedandcontrolledcorporations
b.Domestichelpers
c.Personsinthepersonalserviceofanother
d.ManagerialemployeesasdefinedinBookIIIoftheLaborCode
e.Fieldpersonnelandotheremployeeswhoseperformanceisunsupervisedbytheemployer
f.Thosewhoareengagedontaskorcontractbasis,purelycommissionbasis,orthosewhoarepaidinafixedamountforperforming
workirrespectiveofthetimeconsumedintheperformancethereof
g.Thosewhoarealreadyenjoyingthebenefitprovidedinthelaw
h.Thoseenjoyingvacationleavewithpayofatleastfive(5)days
i.Thoseemployedinestablishmentsregularlyemployinglessthanten(10)employees
j.Otherofficersandmembersofthemanagerialstaffand
k.Membersofthefamilyoftheemployerwhoaredependentonhimforsupport.[108]
c.Commutablenatureofbenefit.
Theserviceincentiveleaveiscommutabletoitsmoneyequivalentifnotusedorexhaustedattheendoftheyear.[109]The
phraseleavewithpaymeansthattheemployeeisentitledtohisfullcompensationduringhisleaveofabsencefromwork.[110]
Incomputingtheserviceincentiveleavebenefit,thebasisisthesalaryrateatthedateofcommutation.Theavailmentand
commutationoftheserviceincentiveleavebenefitmaybeonaproratabasis.[111]
Illustration.
Toillustratethecomputationoftheserviceincentiveleave(SIL)cashcommutation,anemployeewhoishiredonJanuary1,2010
andresignedonMarch1,2011,assuminghehasnotusedorcommutedanyofhisaccruedSIL,isentitleduponhisresignationtothe
commutationofhisaccruedSILasfollows:
SILearnedasofDecember31,2010Five(5)days
29

2011(2/12x5days)0.833day
TotalaccruedSILasofMarch1,20115.833days[112]
2.MATERNITYLEAVE.
(ARTICLE133,LABORCODESECTION14A,SOCIALSECURITYLAW[R.A.NO.8282).
a.Coverage.
Maternityleaveistheperiodoftimewhichmaybeavailedofbyawomanemployee,marriedorunmarried,toundergoand
recuperatefromchildbirth,miscarriageorcompleteabortionduringwhichsheispermittedtoretainherrightsandbenefitsflowingfrom
heremployment.
Section14A[113]oftheSocialSecurityLawnowprovidesasfollows:
Sec.14A.MaternityLeaveBenefit.Afemalememberwhohaspaidatleastthree(3)monthlycontributionsinthetwelvemonthperiod
immediatelyprecedingthesemesterofherchildbirthormiscarriageshallbepaidadailymaternitybenefitequivalenttoonehundred
percent(100%)ofheraveragedailysalarycreditforsixty(60)daysorseventyeight(78)daysincaseofcaesariandelivery,subjecttothe
followingconditions:
(a)Thattheemployeeshallhavenotifiedheremployerofherpregnancyandtheprobabledateofherchildbirth,whichnoticeshallbe
transmittedtotheSSSinaccordancewiththerulesandregulationsitmayprovide
(b)Thefullpaymentshallbeadvancedbytheemployerwithinthirty(30)daysfromthefilingofthematernityleaveapplication
(c)ThatpaymentofdailymaternitybenefitsshallbeabartotherecoveryofsicknessbenefitsprovidedbythisActforthesameperiod
forwhichdailymaternitybenefitshavebeenreceived
(d)Thatthematernitybenefitsprovidedunderthissectionshallbepaidonlyforthefirstfour(4)deliveriesormiscarriages
(e)ThattheSSSshallimmediatelyreimbursetheemployerofonehundredpercent(100%)oftheamountofmaternitybenefitsadvanced
totheemployeebytheemployeruponreceiptofsatisfactoryproofofsuchpaymentandlegalitythereofand
(f)Thatifanemployeemembershouldgivebirthorsuffermiscarriagewithouttherequiredcontributionshavingbeenremittedforher
byheremployertotheSSS,orwithoutthelatterhavingbeenpreviouslynotifiedbytheemployerofthetimeofthepregnancy,the
employershallpaytotheSSSdamagesequivalenttothebenefitswhichsaidemployeememberwouldotherwisehavebeenentitledto.
b.Conditionstoentitlement.
Thefollowingarethequalificationsforentitlementtomaternitybenefits:
1.Thefemalemembershouldbeemployedatthetimeofdelivery,miscarriageorabortion.
2.ShemusthavegiventherequirednotificationtotheSSSthruheremployer.
3.Heremployermusthavepaidatleastthree(3)monthsofmaternitycontributionswithinthe12monthperiodimmediatelybeforethe
semesterofcontingency.[114]
c.Availment.
1.Pregnantwomen,whethermarriedorunmarried,areentitledtomaternityleavebenefits.
Entitlementtomaternityleavebenefitsisnotdependentonthecivilstatusofthepregnantwoman.Everypregnantwomaninthe
privatesector,whethermarriedorunmarried,isentitledtothematernityleavebenefits.[115]
2.Maternitybenefits,notpartof13thmonthpaycomputation.
Maternitybenefits,likeotherbenefitsgrantedbytheSSS,aregrantedtoemployeesinlieuofwagesand,therefore,maynotbe
includedincomputingtheemployees13thmonthpayforthecalendaryear.[116]
3.Voluntaryorselfemployedmembersnotentitledtomaternitybenefits.
Voluntaryorselfemployedmembersarenotentitledtomaternitybenefitsbecausetobeentitledthereto,corresponding
maternitycontributionsshouldbepaidbyemployers.Voluntaryorselfemployedmembershavenoemployerssotheydonothave
maternitycontributions.
30

4.Computationofmaternitybenefits.
Article133MaternityLeaveBenefits
Thematernitybenefitsshallbecomputedasfollows:
a.Excludethesemesterofcontingency(delivery,miscarriageorabortion).Asemesterreferstotwoconsecutivequartersendinginthe
quarterofcontingency.Aquarterreferstothree(3)consecutivemonthsendinginMarch,June,SeptemberorDecember.
b.Counttwelve(12)monthsbackwardsstartingfromthemonthimmediatelybeforethesemesterofcontingency.
c.Identifythesix(6)highestmonthlysalarycreditswithinthe12monthperiod.Monthlysalarycreditmeansthecompensationbasefor
contributionsandbenefitsrelatedtothetotalearningsforthemonth.[117]
d.Addthesix(6)highestmonthlysalarycreditstogetthetotalmonthlysalarycredit.
e.Dividethetotalmonthlysalarycreditby180daystogettheaveragedailysalarycredit.Thisisequaltothedailymaternityallowance.
f.Multiplythedailymaternityallowancebysixty(60)days(or78days)togetthetotalmaternityallowance.
5.Entitlementtomaternitybenefitforeclosesentitlementtosicknessbenefit.
AfemalememberoftheSSSwhohasavailedofmaternitybenefitcannotclaimforsicknessbenefitforaperiodofsixty(60)days
(or78days)withinwhichshewasalreadypaidthematernitybenefit.Asarule,nomembercanbeentitledtotwo(2)benefitsforthesame
period.
6.NotificationtoSSSincaseofpregnancy.
ItisarequirementtonotifytheSSS.Assoonasafemalememberbecomespregnant,shemustimmediatelyinformheremployer
ofsuchpregnancybyaccomplishingtheMaternityNotificationForm.Theemployermust,inturn,notifytheSSSthruthesubmissionof
saidform.
7.Paymentofmaternitybenefithowmade.
Thebenefitisadvancedbytheemployertothequalifiedemployeeinfullorintwo(2)equalinstallments.Thefirstinstallmentwill
bepaiduponreceiptofthematernityleaveapplication.Thesecondwillbepaidnotlaterthanthirty(30)daysafterpaymentofthefirst
installment.Uponreceiptofsatisfactoryproofofsuchpayment,theSSSwillpaybacktheemployertheamountofmaternitybenefitit
legallyadvancedtotheemployee.
3.PATERNITYLEAVE.
(R.A.NO.8187,THEPATERNITYLEAVEACTOF1996[JUNE11,1996].
a.Coverage.
Paternityleavecoversamarriedmaleemployeeallowinghimnottoreportforworkforseven(7)calendardaysbutcontinuestoearn
thecompensationtherefor,ontheconditionthathisspousehasdeliveredachildorsufferedmiscarriageforpurposesofenablinghimto
effectivelylendsupporttohiswifeinherperiodofrecoveryand/orinthenursingofthenewlybornchild.[118]
Deliveryincludeschildbirthoranymiscarriage.[119]
Spousereferstothelawfulwife.Forthispurpose,lawful wife refers to a woman who is legally married to the male employee
concerned.[120]
Cohabitingreferstotheobligationofthehusbandandwifetolivetogether.[121]
b.Conditionstoentitlement.
Everymarriedemployeeintheprivateandpublicsectorsisentitledtoapaternityleaveofseven(7)calendardayswithfullpayfor
thefirstfour(4)deliveriesofthelegitimatespousewithwhomheiscohabiting.Themaleemployeeapplyingforpaternityleaveshould
notifyhisemployerofthepregnancyofhislegitimatespouseandtheexpecteddateofsuchdelivery.[122]
Paternityleavebenefitsaregrantedtothequalifiedemployeeafterthedeliverybyhiswife,withoutprejudicetoanemployer
allowinganemployeetoavailofthebenefitbeforeorduringthedelivery,providedthatthetotalnumberofdaysshouldnotexceedseven
(7)calendardaysforeachdelivery.Intheeventthatthepaternityleavebenefitisnotavailedof,saidleaveshallnotbeconvertibletocash.
31

c.Availment.
Theemployeeisentitledtohisfullpay,consistingofbasicsalary,fortheseven(7)calendardaysduringwhichheisallowednottoreport
forworkprovidedthathispayshallnotbelessthanthemandatedminimumwage.[124]
4.PARENTALLEAVE.
(R.A.NO.8972,THESOLOPARENTSWELFAREACTOF2000(NOVEMBER7,2000).
a.Coverage.
Parentalleaveistheleavebenefitsgrantedtoamaleorfemalesoloparenttoenablehim/hertoperformparentaldutiesand
responsibilitieswherephysicalpresenceisrequired.
Theparentalleaveshallnotbemorethanseven(7)workingdayseveryyeartoasoloparentwhohasrenderedserviceofatleastone(1)
year,toenablehim/hertoperformparentaldutiesandresponsibilitieswherehis/herphysicalpresenceisrequired.Thesevenday
parentalleaveshallbenoncumulative.[125]
Itbearsnotingthatthisleaveprivilegeisanadditionalleavebenefitwhichisseparateanddistinctfromanyotherleavebenefitsprovided
underexistinglawsoragreements.[126]
Theterm"soloparent"referstoanyindividualwhofallsunderanyofthefollowingcategories:
(1) A woman who gives birth as a result of rape and other crimes against chastity even without a final conviction of the
offender:Provided,Thatthemotherkeepsandraisesthechild
(2)Parentleftsolooralonewiththeresponsibilityofparenthoodduetodeathofspouse
(3)Parentleftsolooralonewiththeresponsibilityofparenthoodwhilethespouseisdetainedorisservingsentenceforacriminal
convictionforatleastone(1)year
(4)Parentleftsolooralonewiththeresponsibilityofparenthoodduetophysicaland/ormentalincapacityofspouseascertifiedby
apublicmedicalpractitioner
(5)Parentleftsolooralonewiththeresponsibilityofparenthoodduetolegalseparationordefactoseparationfromspouseforat
leastone(1)year,aslongashe/sheisentrustedwiththecustodyofthechildren
(6)Parentleftsolooralonewiththeresponsibilityofparenthoodduetodeclarationofnullityorannulmentofmarriageasdecreed
byacourtorbyachurchaslongashe/sheisentrustedwiththecustodyofthechildren
(7)Parentleftsolooralonewiththeresponsibilityofparenthoodduetoabandonmentofspouseforatleastone(1)year
(8)Unmarriedmother/fatherwhohaspreferredtokeepandrearher/hischild/childreninsteadofhavingotherscareforthemorgive
themuptoawelfareinstitution
(9)Anyotherpersonwhosolelyprovidesparentalcareandsupporttoachildorchildren
(10)Anyfamilymemberwhoassumestheresponsibilityofheadoffamilyasaresultofthedeath,abandonment,disappearanceor
prolongedabsenceoftheparentsorsoloparent.
AchangeinthestatusorcircumstanceoftheparentclaimingbenefitsunderthisAct,suchthathe/sheisnolongerleftalonewith
theresponsibilityofparenthood,shallterminatehis/hereligibilityforthesebenefits.[127]
"Children"refertothoselivingwithanddependentuponthesoloparentforsupportwhoareunmarried,unemployedandnotmore
thaneighteen(18)yearsofage,orevenovereighteen(18)yearsbutareincapableofselfsupportbecauseofmentaland/orphysical
defect/disability.[128]
"Parentalresponsibility"withrespecttotheirminorchildrenshallrefertotherightsanddutiesoftheparentsasdefinedinArticle
220ofExecutiveOrderNo.209,asamended,otherwiseknownasthe"FamilyCodeofthePhilippines"andhereunderenumerated
asfollows:
(1)Tokeepthemintheircompany,tosupport,educateandinstructthembyrightpreceptandgoodexampleandtoprovidefor
theirupbringinginkeepingwiththeirmeans
(2)Togivethemloveandaffection,adviceandcounsel,companionshipandunderstanding
32

andthrift,stimulatetheirinterestincivicaffairs,andinspireinthemcompliancewiththedutiesofcitizenship
(4)Tofurnishthemwithgoodandwholesomeeducationalmaterials,supervisetheiractivities,recreationandassociationwith
others,protectthemfrombadcompany,andpreventthemfromacquiringhabitsdetrimentaltotheirhealth,studiesandmorals
(5)Torepresenttheminallmattersaffectingtheirinterest
(6)Todemandfromthemrespectandobedience
(7)ToImposedisciplineonthemasmayberequiredunderthecircumstancesand
(8)Toperformsuchotherdutiesasareimposedbylawanduponparentsandguardians.[129]
b.Conditionstoentitlement.
Asoloparentshallbeentitledtoparentalleaveprovidedthat:
(a)He/Shehasrenderedatleastone(1)yearofservicewhethercontinuousorbrokenatthetimeoftheaffectivityoftheAct
(b)He/Shehasnotifiedhis/heremployeroftheavailmentthereofwithinareasonabletimeperiodand
(c)He/ShehaspresentedaSoloParentIdentificationCardtohis/heremployer.[130]
c.Availment.
1.Nonconversionofparentalleave.Intheeventthattheparentalleaveisnotavailedof,saidleaveshallnotbeconvertibleto
cashunlessspecificallyagreeduponpreviously.However,ifsaidleaveweredeniedanemployeeasaresultofnoncompliancewith
theprovisionsoftheseRulesbyanemployer,theaforementionedleavemaybeusedabasisforthecomputationofdamages.[131]
2. Crediting of existing leave. If there is an existing or similar benefit under a company policy, or a collective bargaining
agreement or collective negotiation agreement the same shall be credited as such. If the same is greater than the seven (7) days
providedforintheAct,thegreaterbenefitshallprevail.Emergencyorcontingencyleaveprovidedunderacompanypolicyora
collectivebargainingagreementshallnotbecreditedascompliancewiththeparentalleaveprovidedforundertheActandthese
Rules.[132]
3.Benefits. Any solo parent whose income in the place of domicile falls below the poverty threshold as set by the National
EconomicandDevelopmentAuthority(NEDA)andsubjecttotheassessmentoftheDSWDworkerintheareashallbeeligiblefor
assistance: Provided, however, That any solo parent whose income is above the poverty threshold shall enjoy the benefits
mentionedinSections6,7and8ofR.A.No.8972,towit:
Section6.FlexibleWorkSchedule.Theemployershallprovideforaflexibleworkingscheduleforsoloparents:Provided,That
thesameshallnotaffectindividualandcompanyproductivity:Provided,further,Thatanyemployermayrequestexemptionfrom
theaboverequirementsfromtheDOLEoncertainmeritoriousgrounds.
Section7. Work Discrimination. No employer shall discriminate against any solo parent employee with respect to terms and
conditionsofemploymentonaccountofhis/herstatus.
Section8.ParentalLeave.Inadditiontoleaveprivilegesunderexistinglaws,parentalleaveofnotmorethanseven(7)working
dayseveryyearshallbegrantedtoanysoloparentemployeewhohasrenderedserviceofatleastone(1)year.
4.OtherbenefitsundertheR.A.No.8972.Otherbenefitsconsistofthefollowing:
Section9.EducationalBenefits.TheDECS,CHEDandTESDAshallprovidethefollowingbenefitsandprivileges:
(1) Scholarship programs for qualified solo parents and their children in institutions of basic, tertiary and technical/skills
educationand
(2)Nonformaleducationprogramsappropriateforsoloparentsandtheirchildren.
TheDECS,CHEDandTESDAshallpromulgaterulesandregulationsfortheproperimplementationofthisprogram.
Section10.HousingBenefits.Soloparentsshallbegivenallocationinhousingprojectsandshallbeprovidedwithliberaltermsof
paymentonsaidgovernmentlowcosthousingprojectsinaccordancewithhousinglawprovisionsprioritizingapplicantsbelow
thepovertylineasdeclaredbytheNEDA.
Section11.MedicalAssistance.TheDOHshalldevelopacomprehensivehealthcareprogramforsoloparentsandtheirchildren.
TheprogramshallbeimplementedbytheDOHthroughtheirretainedhospitalsandmedicalcentersandthelocalgovernmentunits
33

5.LEAVESFORVICTIMSOFVIOLENCEAGAINSTWOMEN.
(R.A.NO.9262,ANTIVIOLENCEAGAINSTWOMENANDTHEIRCHILDRENACTOF2994[MARCH8,2004).
a.Coverage.
R.A.No.9262,grantstovictimsatotaloften(10)daysofpaidleaveofabsence,inadditiontootherpaidleavesundertheLabor
CodeandCivilServiceRulesandRegulations.Itisextendiblewhenthenecessityarisesasspecifiedintheprotectionorder.Thisis
affordedtothewomanemployeetoenablehertoattendtothemedicalandlegalconcernsrelativetosaidlaw.Thisleaveisnot
convertibletocash.[133]
Anyemployerwhoshallprejudicetherightofthepersonunderthislawshallbepenalizedinaccordancewiththeprovisionsofthe
LaborCodeandCivilServiceRulesandRegulations.Likewise,anemployerwhoshallprejudiceanypersonforassistingaco
employeewhoisavictimunderthisActshalllikewisebeliablefordiscrimination.[134]
b.Conditionsofentitlement.
Atanytimeduringtheapplicationofanyprotectionorder,investigation,prosecutionand/ortrialofthecriminalcase,avictimof
Violence Against Women and their Children (VAWC) who is employed shall be entitled to a paid leave of up to ten (10) days in
additiontootherpaidleavesundertheLaborCodeandCivilServiceRulesandRegulationsandotherexistinglawsandcompany
policies,extendiblewhenthenecessityarisesasspecifiedintheprotectionorder.ThePunongBarangay/kagawadorprosecutoror
theClerkofCourt,asthecasemaybe,shallissueacertificationatnocosttothewomanthatsuchanactionispending,andthisis
allthatisrequiredfortheemployertocomplywiththe10daypaidleave.
Forgovernmentemployees,inadditiontotheaforementionedcertification,theemployeeconcernedmustfileanapplicationfor
leavecitingasbasisR.A.9262.Theadministrativeenforcementofthisleaveentitlementshallbeconsideredwithinthejurisdiction
of the Regional Director of the DOLE under Article 129 of the Labor Code of the Philippines, as amended, for employees in the
privatesector,andtheCivilServiceCommission,forgovernmentemployees.[135]
c.Availment.
Theavailmentoftheten(10)dayleaveshallbeattheoptionofthewomanemployee,whichshallcoverthedaysthatshehasto
attendtomedicalandlegalconcerns.Leavesnotavailedofarenoncumulativeandnotconvertibletocash.
The employer/agency head who denies the application for leave, and who shall prejudice the victimsurvivor or any person for
assistingacoemployeewhoisavictimsurvivorundertheActshallbeheldliablefordiscriminationandviolationofR.A.No.9262.
The provision of the Labor Code and the Civil Service Rules and Regulations shall govern the penalty to be imposed on the said
employer/agencyhead.[136]
6.SERVICECHARGES(ARTICLE96,LABORCODE).
a.Coverage.
1. Establishments covered. The rules on service charges apply only to establishments collecting service charges, such as hotels,
restaurants,lodginghouses,nightclubs,cocktaillounges,massageclinics,bars,casinosandgamblinghouses,andsimilarenterprises,
includingthoseentitiesoperatingprimarilyasprivatesubsidiariesofthegovernment.[137]
2.Employeescovered.Thesamerulesonservicechargesapplytoallemployeesofcoveredemployers,regardlessoftheirpositions,
designations or employment status, and irrespective of the method by which their wages are paid. except those receiving more than
P2,000.00amonth.[138]
b.Exclusion.
SpecificallyexcludedfromcoverageareemployeeswhoarereceivingwagesofmorethanP2,000.00amonth.[139]However,it
mustbepointedoutthattheP2,000.00ceilingisnolongerrealisticconsideringtheapplicableminimumwagesprevailinginthecountry.
Hence,itmustbedisregarded.Instead,therulenowisthatthe85%shouldbedistributedtothecoveredemployeesexceptmanagerial
employees while the remaining 15% should be retained by management to answer for losses and breakages and for distribution to
34

c.Distribution.
1.Percentageofsharing.Allservicechargescollectedbycoveredemployersarerequiredtobedistributedatthefollowingrates:
a.85%tobedistributedequallyamongthecoveredemployeesand
b.15%tomanagementtoanswerforlossesandbreakagesanddistributiontoemployeesreceivingmorethanP2,000.00amonth,atthe
discretionofthemanagement.[141].
2.Frequencyofdistribution.Theshareoftheemployeesreferredtoaboveshouldbedistributedandpaidtothethemnotlessoftenthan
onceeverytwo(2)weeksortwiceamonthatintervalsnotexceedingsixteen(16)days.[142]
d.Integration.
Incasetheservicechargeisabolished,theshareofcoveredemployeesshouldbeconsideredintegratedintheirwages,inaccordancewith
Article96oftheLaborCode.Thebasisoftheamounttobeintegratedistheaveragemonthlyshareofeachemployeeforthepasttwelve
(12)monthsimmediatelyprecedingtheabolitionorwithdrawalofsuchcharges.[143]
e.Someprinciplesonservicecharges.
1.Tipsandserviceschargesaretwodifferentthings.Tipsaregivenbycustomersvoluntarilytowaitersandotherpeoplewhoservethem
outofrecognitionofsatisfactoryorexcellentservice.Thereisnocompulsiontogivetipsunderthelaw.Thesamemaynotbesaidof
servicechargeswhichareconsideredintegralpartofthecostofthefood,goodsorservicesorderedbythecustomers.Asageneralrule,tips
donotformpartoftheservicechargeswhichshouldbedistributedinaccordancewiththesharingratioprescribedunderArticle96ofthe
Labor Code. However, where a restaurant or similar establishment does not collect service charges but has a practice or policy of
monitoringandpoolingtipsgivenvoluntarilybyitscustomerstoitsemployees,thepooledtipsshouldbemonitored,accountedforand
distributedinthesamemannerastheservicecharges.[144]Hence,the85%:15%sharingratioshouldbeobserved.
2.Servicechargesarenotinthenatureofprofitshareand,therefore,cannotbedeductedfromwage.[145]
7.THIRTEENTH(13 )MONTHPAYANDOTHERBONUSES.
TH

(P.D.NO.851[DECEMBER16,1975MEMORANDUMORDERNO.28[AUGUST13,1986]REVISEDGUIDELINES
ONTHEIMPLEMENTATIONOFTHE13 MONTHPAYLAW[NOVEMBER16,1987].
TH

a.Coverage.
Allemployersarerequiredtopayalltheirrankandfileemployees,a13thmonthpaynotlaterthanDecember24ofeveryyear.
b.Exclusions/Exemptionsfromcoverage.
ThefollowingemployersarenotcoveredbyP.D.No.851,asamended:
1. The government and any of its political subdivisions, including governmentowned and controlled corporations, except those
corporationsoperatingessentiallyasprivatesubsidiariesofthegovernment.[146]
2.Employersalreadypayingtheiremployees13thmonthpayormoreinacalendaryearoritsequivalentatthetimeoftheissuanceof
theRevisedGuidelines.[147]
3.Employersofhouseholdhelpersandpersonsinthepersonalserviceofanotherinrelationtosuchworkers.[148]
4.Employersofthosewhoarepaidonpurelycommission,boundary,ortaskbasis,andthosewhoarepaidafixedamountforperforming
aspecificwork,irrespectiveofthetimeconsumedintheperformancethereof,exceptwheretheworkersarepaidonpieceratebasis,in
whichcase,theemployershallbecoveredbytheRevisedGuidelinesinsofarassuchworkersareconcerned.Workerspaidonpiecerate
basisshallrefertothosewhoarepaidastandardamountforeverypieceorunitofworkproducedthatismoreorlessregularlyreplicated
withoutregardtothetimespentinproducingthesame.[149]
c.Natureof13 monthpay.
th

13 month pay is in the nature of additional income granted to employees who are not receiving the same.[150] P.D. No. 851 is
undoubtedlyalaborstandardslawwhosepurposeistoincreasetherealwagesoftheworkers.[151]Itisbasedonwagebutnotpartofthe
wage.[152]
th

Theminimum13thmonthpayrequiredbylawshouldnotbelessthanonetwelfth(1/12)ofthetotalbasicsalaryearnedbyanemployee
withinacalendaryear.[153]
35

Inordertobeconsideredpartof13 monthpay,thecommissionshouldbepartofthebasicsalaryoftheemployee.
th

However,whetherornotacommissionformspartofthebasicsalarydependsuponthecircumstancesorconditionsforitspaymentwhich
indubitablyarefactualinnaturefortheywillrequireareexaminationandcalibrationoftheevidenceonrecord.[154]
Ifthecommissionpaidinadditiontothebasicsalaryisinthenatureofaproductivitybonusorprofitsharingbenefitwhichisdependent
onandgenerallytiedtotheproductivityorcapacityforrevenueproductionofacompany,itshouldnotbeconsideredaspartofbasic
salary.[155]
Butifthecommissionpaidinadditiontothebasicsalaryhasacleardirectornecessaryrelationtotheamountofworkactuallydoneby
theemployee,itshouldbeconsideredaspartofbasicsalary.[156]
Iftheemployeeispaidoncommissionbasisonly,heisexcludedfromreceivingthe13thmonthpaybenefit.[157]
e.CBAvisavis13 monthpay.
th

Forpurposesofcomputingthe13 monthpay,basicsalaryincludesallremunerationsorearningspaidbytheemployerforservices
renderedbutdoesnotincludeallowancesandmonetarybenefitswhicharenotconsideredorintegratedaspartoftheregularorbasic
salary,suchasthecashequivalentofunusedvacationandsickleavecredits,maternityleave,overtime,premium,nightdifferentialand
holidaypay,premiumsforworkdoneonrestdaysandspecialholidaysandcostoflivingallowances.However,thesesalaryrelated
benefitsshouldbeincludedaspartofthebasicsalaryinthecomputationofthe13thmonthpayifbyindividualorcollectivebargaining
agreement,companypracticeorpolicy,thesamearetreatedaspartofthebasicsalaryoftheemployees.[158]
th

e.Someprincipleson13 monthpay.
th

1.Basicsalaryorbasicwagecontemplatesworkwithinthenormaleight(8)workinghoursinaday.Thismeansthatthebasicsalary
ofanemployeeforpurposesofcomputingthe13thmonthpayshouldincludeallremunerationsorearningspaidbytheemployerfor
servicesrenderedduringnormalworkinghours.[159]
2.Forpurposesofcomputingthe13thmonthpay,basicsalaryshouldbeinterpretedtomeannottheamountactuallyreceivedbyan
employee,but1/12oftheirstandardmonthlywagemultipliedbytheirlengthofservicewithinagivencalendaryear.[160]
3.Tobeentitledtothe13thmonthpaybenefit,itisimposedasaminimumservicerequirementthattheemployeeshouldhaveworked
foratleastone(1)monthduringacalendaryear.[161]
4.Onlyrankandfileemployees,regardlessoftheirdesignationoremploymentstatusandirrespectiveofthemethodbywhichtheir
wagesarepaid,areentitledtothe13thmonthpaybenefit.[162]
5.Managerialemployees,notentitledto13 monthpay.[163]
th

6.Extras,casualsandseasonalemployees,entitledto13thmonthpay.[164]
==================================================
TOPICUNDERTHESYLLABUS
C.LABORSTANDARDS
8.WomenWorkers
a.Discrimination(Art.135,LC)
b.Stipulationagainstmarriage(Art.136,LC)
c.ProhibitedActs(Art.137,LC)
d.Classificationofcertainwomenworkers(Art.138,LC)
e.AntiSexualHarassmentAct(RA7877)
===================================================
1.DISCRIMINATION(ARTICLE135,LABORCODE).
a.Actsofdiscrimination.
Article 135 considers as unlawful the act of an employer to discriminate against any woman employee with respect to terms and
conditionsofemploymentsolelyonaccountofhersex.
36

(a)Paymentofalessercompensation,includingwage,salaryorotherformofremunerationandfringebenefits,toafemaleemployeeas
againstamaleemployee,forworkofequalvalueand
(b)Favoringamaleemployeeoverafemaleemployeewithrespecttopromotion,trainingopportunities,studyandscholarshipgrants
solelyonaccountoftheirsexes.
b.CriminalliabilityunderArticle135.
The willful commission of any of the specific unlawful acts described in Article 135 has a criminal consequence. Consequently, the
offenderwillbepenalizedunderArticles288and289oftheLaborCode.
c.Moneyclaims,aseparateanddistinctaction.
TheinstitutionofanycriminalactionunderArticle135willnotbartheaggrievedemployeefromfilinganentirelyseparateanddistinct
actionformoneyclaims,whichmayincludeclaimsfordamagesandotheraffirmativereliefs.
c.Criminalactionmayproceedindependentlyfromthemoneyclaimscase.
ThecriminalandmoneyclaimsactionsauthorizedtobeprosecutedunderArticle135shallproceedindependentlyofeachother.[165]
2.STIPULATIONAGAINSTMARRIAGE(ARTICLE136,LABORCODE).
a.Invalidityofstipulationagainstmarriage.
Article136considersasanunlawfulactoftheemployertorequireasaconditionfororcontinuationofemploymentthatawoman
employeeshallnotgetmarriedortostipulateexpresslyortacitlythatupongettingmarried,awomanemployeeshallbedeemedresigned
orseparated,
Itislikewiseanunlawfulactoftheemployer,toactuallydismiss,discharge,discriminateorotherwiseprejudiceawoman
employeemerelybyreasonofhermarriage.[166]
b.Relevantjurisprudence.
Thefollowingcasesarerelevant:
1. Zialcita v. Philippine Airlines, Inc., [Case No. RO4339876, February 20, 1977]. In this case decided by the Office of the
President,theprovisioninacontractbetweenanairlinecompanyandaflightattendantwhichstatesthatflightattendantapplicantsmust
besingleandthattheyshallbeautomaticallyseparatedfromemploymentintheeventtheysubsequentlygetmarriedwasdeclaredasa
nullandvoidprovisionhence,cannotbeenforcedforbeingcontrarytoArticle136oftheLaborCodeandtheprotectiontolaborclause
intheConstitution.
2.PhilippineTelegraphandTelephoneCompanyv.NLRC,[G.R.No.118978,May23,1997,272SCRA596,605].Itwasdeclared
herethatthecompanypolicyofnotacceptingorconsideringasdisqualifiedfromworkanywomanworkerwhocontractsmarriageruns
afoul of the test of, and the right against, discrimination afforded all women workers by our labor laws and by no less than the
Constitution.[167]
3.StarPaperCorp.v.Simbol,ComiaandEstrella,[G.R.No.164774,April12,2006].Thefollowingpolicieswerestruckdownas
invalidforviolatingthestandardofreasonablenesswhichisbeingfollowedinourjurisdiction,otherwisecalledtheReasonableBusiness
NecessityRule:
1. New applicants will not be allowed to be hired if in case he/she has [a] relative, up to [the] 3 degree of relationship, already
employedbythecompany.
rd

2.Incaseoftwoofouremployees(bothsingles[sic],onemaleandanotherfemale)developedafriendlyrelationshipduringthecourseof
theiremploymentandthendecidedtogetmarried,oneofthemshouldresigntopreservethepolicystatedabove.
4.DuncanAssociationofDetailmanPTGWOv.GlaxoWelcomePhilippines,Inc.,[G.R.No.162994,September17,2004].Inthiscase,
theprohibitionagainstmarriageembodiedinthefollowingstipulationintheemploymentcontractwasheldasvalid:
10.Youagreetodisclosetomanagementanyexistingorfuturerelationshipyoumayhave,eitherbyconsanguinityoraffinitywithco
employeesoremployeesofcompetingdrugcompanies.Shoulditposeapossibleconflictofinterestinmanagementdiscretion,youagree
toresignvoluntarilyfromtheCompanyasamatterofCompanypolicy.
37

prerogative.Theprohibitionagainstpersonalormaritalrelationshipswithemployeesofcompetitorcompaniesuponitsemployeeswas
heldreasonableunderthecircumstancesbecauserelationshipsofthatnaturemightcompromisetheinterestsofthecompany.Inlaying
downtheassailedcompanypolicy,theemployeronlyaimstoprotectitsinterestsagainstthepossibilitythatacompetitorcompanywill
gainaccesstoitssecretsandprocedures.
3.PROHIBITEDACTS.(ARTICLE137,LABORCODE).
a.ProhibitedactsunderArticle137anditsimplementingrules.
ThecorrespondingprovisionsintheRulestoImplementtheLaborCodeprovideforabroaderenumerationofprohibitedactsthanthose
foundinArticle137.Itisprovidedthereunderthatitshallbeunlawfulforanyemployer:
1.Todischargeanywomanemployedbyhimforthepurposeofpreventingsuchwomanfromenjoyingmaternityleave,facilitiesand
otherbenefitsprovidedundertheLaborCode
2.Todischargesuchwomanonaccountofherpregnancy,orwhileonleaveorinconfinementduetoherpregnancy
3.Todischargeorrefusetheadmissionofsuchwomanuponreturningtoherworkforfearthatshemayagainbepregnant
4.Todischargeanywomanoranyotheremployeeforhavingfiledacomplaintorhavingtestifiedorbeingabouttotestifyunderthe
LaborCodeor
5.Torequireasaconditionfororcontinuationofemploymentthatawomanemployeeshallnotgetmarriedortostipulateexpresslyor
tacitlythatupongettingmarried,awomanemployeeshallbedeemedresignedorseparated,ortoactuallydismiss,discharge,discriminate
orotherwiseprejudiceawomanemployeemerelybyreasonofmarriage.[168]
b.Denialofbenefitsordismissalofawomanemployeetodepriveherofbenefits.
Paragraph[a](1)ofArticle137speaksoftwoseparateprohibitedacts,namely:
1.TodenyanywomanemployeethebenefitsprovidedinChapterI(EmploymentofWomen),TitleIII(WorkingConditionsforSpecial
GroupsofEmployees)ofBookIIIoftheLaborCode,namely:
a.FacilitiesforwomenunderArticle132
b.MaternityleavebenefitsunderArticle133and
c.FamilyplanningservicesandincentivesforfamilyplanningunderArticle134.
2.TodischargeanywomanemployeeforthepurposeofpreventingherfromenjoyinganyofthebenefitsprovidedundertheLaborCode.
[169]
UnderNo.1above,meredenialoftheaforedescribedbenefitswouldalreadyconstituteaviolationofArticle137.
UnderNo.2above,itisrequiredthattheremustnotonlybedenialbutactualdischargeordismissalofthewomanemployeemeantto
preventherfromenjoyinganyofthebenefitsundertheLaborCodeandnotonlyofthebenefitsunderChapterI,TitleIIIofBookIIIofthe
LaborCode.
c.Dischargingawomanduetopregnancy.
Paragraph [a] (2) and (3) of Article 137 contemplates the following prohibited acts in connection with the pregnancy of a woman
employee:
1.Todischargeheronaccountofherpregnancyor
2.Todischargeherwhilesheisonleaveduetoherpregnancyor
3.Todischargeherwhilesheisinconfinementduetoherpregnancyor
4.Todischargeheruponreturningtoherworkforfearthatshemayagainbepregnantor
5.Torefuseheradmissionuponreturningtoherworkforfearthatshemayagainbepregnant.[170]
DelMontePhilippines,Inc.v.Velasco,[G.R.No.153477,March6,2007].
Theseriesofabsencesoftherespondentduetopregnancyanditsrelatedailments,suchasurinarytractinfection,was
foundnottobeavalidgroundtodismissherfromemployment.TheSupremeCourtagreedwiththeCourtofAppealsinconcludingthat
respondentssicknesswaspregnancyrelatedand,therefore,thepetitionercannotterminaterespondentsservicesbecauseindoingso,
38

accountofthelatterspregnancy.TheCourtwasconvincedthatthepetitionerterminatedtheservicesofrespondentonaccountofher
pregnancywhichjustifiedherabsencesand,thus,committedaprohibitedactrenderingthedismissalillegal.
LakpueDrug,Inc.v.Belga,[G.R.No.166379,October20,2005].
Respondentwasdismissedforallegedlydeliberatelyconcealingherpregnancyandforincurringabsenceswithoutofficialleavefor16
daysatwhichtimeshedeliveredherbaby.Petitionerarguesthatsuchnondisclosureistantamounttodishonesty.Infindingthepenaltyof
dismissal too harsh and illegal, the Supreme Court ruled that the alleged misconduct of Belga barely falls within the situation
contemplatedbythelaw.Herabsencefor16dayswasjustifiedconsideringthatshehadjustdeliveredachild,whichcanhardlybe
consideredaforbiddenact,aderelictionofdutymuchlessdoesitimplywrongfulintentonthepartofBelga.Petitionerharpsonthe
alleged concealment by Belga of her pregnancy. This argument, however, begs the question as to how one can conceal a fullterm
pregnancy.TheCourtagreedwithrespondentspositionthatitcanhardlyescapenoticehowshegrowsbiggereachday.Whiletheremay
beinstanceswherethepregnancymaybeinconspicuous,ithasnotbeensufficientlyprovenbypetitionerthatBelgascaseissuch.
d.Dischargingawomanemployeeforhavingfiledacaseorfortestifyingorbeingabouttotestifyinacase.
CitedasadditionalprohibitedactinSection13,RuleXII,BookIIIoftheRulestoImplementtheLaborCodeistheactofdischargingany
womanoranyotheremployeeforhavingfiledacomplaintorhavingtestifiedorbeingabouttotestifyundertheLaborCode.
OfrelevancetothisprohibitedactaretheparallelprovisionsinArticles118and248[f]oftheLaborCode.UnderArticle118,itis
consideredunlawfulforanemployertodischargeorinanymannerdiscriminateagainstanyemployeewhohasfiledanycomplaintor
institutedanyproceedingunderTitleII(Wages)ofBookIIIorhastestifiedorisabouttotestifyinsuchproceedings.UnderArticle248[f],
itisconsideredanunfairlaborpractice(ULP)todismiss,dischargeorotherwiseprejudiceordiscriminateagainstanemployeeforhaving
givenorbeingabouttogivetestimonyundertheLaborCode.ThisistheonlyULPactoftheemployerwhichneednotberelatedtothe
exercisebytheemployeeofhisrighttoselforganizationandcollectivebargaining.[171]
e.PenaltyforcommissionoftheprohibitedactsunderArticle137.
Havingbeendeclaredunlawful,thecommissionofanyoftheprohibitedactsunderArticle137wouldsubjecttheoffendertothe
penaltiesprovidedunderArticle288oftheLaborCode.
4.CLASSIFICATIONOFCERTAINWOMANWORKERS(ARTICLE138,LABORCODE).
a.Womenworkinginnightclubsandsimilarestablishments.
Article138enunciatestheruleapplicabletowomenemployeeswhoworkregularlyduringnighttimeinplacesofentertainment.The
situation herein contemplated, because of its peculiar feature, constitutes an exception to the prohibition against nighttime work
prescribedinArticle130,althoughthesamewasneverincludedintheenumerationoftheexceptedinstancesunderArticle131.
b.Regularityofemployment.
Anywomanwhoispermittedorsufferedtowork,withorwithoutcompensation,inanynightclub,cocktaillounge,massageclinic,baror
similarestablishmentsmaybeconsideredanemployeeofsuchestablishmentforpurposesoflaborandsociallegislationifthefollowing
requisitesconcur:
1.Sheworksundertheeffectivecontrolorsupervisionoftheemployerand
2.ShehasworkedthereinforasubstantialperiodoftimeasdeterminedbytheSecretaryofLaborandEmployment.[172]
InaccordancewithArticle138,inrelationtoArticle280,oftheLaborCode,suchwomenworkinginnightclubsandsimilar
establishmentsareconsideredregularemployeesthereofconsideringthattheyaremadetoperformactivitiesthatareusuallynecessaryor
desirableintheusualbusinessortradeoftheiremployer.
ItbearsnotingthatunderArticle135oftheLaborCode,itisconsideredunlawfulforanyemployertodiscriminateagainstany
womanemployeewithrespecttotermsandconditionsofemploymentsolelyonaccountofhersex.
c.Hospitalitygirlsarenotregularemployees..
InanopinionoftheDepartmentofJusticedatedOctober27,1954,itwasopinedthathospitalitygirlsarenotconsideredemployeeswhen
thenightcluboperatordoesnotcontrolnordirectthedetailsandmanneroftheirworkintheentertainmentofnightclubpatronsand,
havingnofixedhoursofwork,theymaycomeandgoastheyplease.
5.ANTISEXUALHARASSMENTACT(R.A.NO.7877,FEBRUARY14,1995).
a.Three(3)situationsonly.
39

(1)employment,
(2)education,or
(3)trainingenvironment.
Itmustbeunderscoredattheoutsetthatsexualharassmentisnotthesoledomainofwomenasmenmayalsobesubjectedtothesame
despicableact.Saidlawdoesnotlimitthevictimofsexualharassmenttowomen.
b.Specificactspenalized.
Thelawpunishessexualharassmentifthesameis:
1.workrelatedor
2.educationrelatedor
3.trainingrelated.[173]
d.Personswhomaybeliableforsexualharassment.
Work,educationortrainingrelatedsexualharassmentiscommittedbyanyemployer,employee,manager,supervisor,agentofthe
employer,teacher,instructor,professor,coach,trainor,oranyotherpersonwho,havingauthority,influenceormoralascendancyover
anotherinaworkortrainingoreducationenvironment,demands,requestsorotherwiserequiresanysexualfavorfromanother,regardless
ofwhetherthedemand,requestorrequirementforsubmissionisacceptedbytheobjectofsaidact.[174]
Further,anypersonwhodirectsorinducesanothertocommitanyactofsexualharassmentasdefinedinthelaw,orwhocooperatesinthe
commissionthereofbyanotherwithoutwhichitwouldnothavebeencommitted,shallalsobeheldliableunderthelaw.[175]
e.Sexualharassmentinaworkrelatedoremploymentenvironment.
Inaworkrelatedoremploymentenvironment,sexualharassmentiscommittedwhen:
1.Thesexualfavorismadeaconditioninthehiringorintheemployment,reemploymentorcontinuedemploymentofsaidindividualor
ingrantingsaidindividualfavorablecompensation,terms,conditions,promotions,orprivileges;ortherefusaltograntthesexualfavor
resultsinlimiting,segregatingorclassifyingtheemployeewhichinanywaywoulddiscriminate,depriveordiminishemployment
opportunitiesorotherwiseadverselyaffectsaidemployee;
2.Theaboveactswouldimpairtheemployeesrightsorprivilegesunderexistinglaborlaws;or
3.Theaboveactswouldresultinanintimidating,hostile,oroffensiveenvironmentfortheemployee.[176]
Libresv.NLRC,[G.R.No.123737,May28,1999].
The act of the manager in touching a female subordinates hand and shoulder, caressing her nape and telling other people that the
subordinate was the one who hugged and kissed him or that she responded to his sexual advances, was considered an act of sexual
harassmentforwhichhewaspenalizedbythecompanywitha30daysuspensionwhosevaliditytheSupremeCourtaffirmed.[177]

Domingov.Rayala,[G.R.No.155831,February18,2008].

ThisinvolvesasexualharassmentsuitledagainstRogelioI.Rayala,theformerChairmanoftheNaonalLaborRelaonsCommission
(NLRC)byasubordinate,Ma.LourdesT.Domingo,thenStenographicReporterIII.Rayalacontendsthattheactsascribedtohimdonot
constutesexualharassment,becauseDomingodidnotallegeinhercomplaintthattherewasademand,request,orrequirementofa
40

sexualfavorasacondionforherconnuedemploymentorforherpromoontoahigherposion.Indisagreeingtothispostulaonand
inholdingRayalaliableforsexualharassment,theHighCourtruled:
xxx
Yet,evenifweweretotestRayalasactsstrictlybythestandardssetinSection3,RA7877,hewouldstillbeadministrativelyliable.Itis
truethatthisprovisioncallsforademand,requestorrequirementofasexualfavor.Butitisnotnecessarythatthedemand,requestor
requirementofasexualfavorbearticulatedinacategoricaloralorwrittenstatement.Itmaybediscerned,withequalcertitude,fromthe
acts of the offender. Holding and squeezing Domingos shoulders, running his fingers across her neck and tickling her ear, having
inappropriateconversationswithher,givinghermoneyallegedlyforschoolexpenseswithapromiseoffutureprivileges,andmaking
statementswithunmistakablesexualovertonesalltheseactsofRayalaresoundwithdeafeningclaritytheunspokenrequestforasexual
favor.
Likewise,contrarytoRayalasclaim,itisnotessentialthatthedemand,requestorrequirementbemadeasaconditionforcontinued
employmentorforpromotiontoahigherposition.Itisenoughthattherespondentsactsresultincreatinganintimidating,hostileor
offensive environment for the employee. That the acts of Rayala generated an intimidating and hostile environment for Domingo is
clearlyshownbythecommonfactualfindingoftheInvestigatingCommittee,theOPandtheCAthatDomingoreportedthemattertoan
officemateand,afterthelastincident,filedforaleaveofabsenceandrequestedtransfertoanotherunit.
f.Sexualharassmentinaneducationortrainingenvironment.
Inaneducationortrainingenvironment,sexualharassmentiscommitted:
1.againstonewhoisunderthecare,custodyorsupervisionoftheoffender
2.againstonewhoseeducation,training,apprenticeshiportutorshipisentrustedtotheoffender
3.whenthesexualfavorismadeaconditiontothegivingofapassinggrade,orthegrantingofhonorsandscholarships,orthe
paymentofastipend,allowanceorotherbenefits,privileges,orconsiderationsor
4.whenthesexualadvancesresultinanintimidating,hostileoroffensiveenvironmentforthestudent,traineeorapprentice.[178]
g.Dutyoftheemployerorheadofoffice.
Itisthedutyoftheemployerortheheadoftheworkrelated,educationalortrainingenvironmentorinstitution,topreventor
deterthecommissionofactsofsexualharassmentandtoprovidetheproceduresfortheresolutionorprosecutionofactsofsexual
harassment.
Towardsthisend,theemployerorheadofofficeisrequiredto:
1. promulgate appropriate rules and regulations in consultation with and jointly approved by the employees or students or trainees,
through their duly designated representatives, prescribing the procedure for the investigation of sexual harassment cases and the
administrativesanctionstherefor.Thesaidrulesandregulationsissuedshallinclude,amongothers,guidelinesonproperdecoruminthe
workplaceandeducationalortraininginstitutions.
2.createacommitteeondecorumandinvestigationofcasesonsexualharassment.Thecommitteeshallconductmeetings,asthecase
maybe,withofficersandemployees,teachers,instructors,professors,coaches,trainorsandstudentsortraineestoincreaseunderstanding
andpreventincidentsofsexualharassment.Itshallalsoconducttheinvestigationofallegedcasesconstitutingsexualharassment.
Inthecaseofworkrelatedenvironment,thecommitteeiscomposedofatleastone(1)representativeeachfromthe
management,theunion,ifany,theemployeesfromthesupervisoryrankandfromtherankandfileemployees.
In the case of educational or training institution, the committee is composed of at least one (1) representative from the
administration,thetrainors,teachers,instructors,professors,orcoachesandstudentsortrainees,asthecasemaybe.[179]
h.Someprinciplesonsexualharassment.
1.Theemployerorheadofofficeortheeducationalortraininginstitutionaresolidarilyliablefordamagesarisingfromtheactsofsexual
harassmentcommittedinanemployment,educationortrainingenvironment,ifsuchemployerorheadofofficeoreducationalortraining
41

2.Thevictimofsexualharassmentisnotprecludedfrominstitutingaseparateandindependentactionfordamagesandotheraffirmative
reliefs.[181]
3.Anyactionarisingfromsexualharassmentprescribesinthree(3)years.[182]
4.AnypersonwhoviolatestheprovisionsofR.A.No.7877shall,uponconviction,bepenalizedbyimprisonmentofnotlessthanone
(1)monthnormorethansix(6)months,orafineofnotlessthantenthousandpesos(P10,000.00)normorethantwentythousandpesos
(P20,000.00)orbothsuchfineandimprisonmentatthediscretionofthecourt.[183]
Dr.RicoS.Jacutinv.PeopleofthePhilippines,[G.R.No.140604,March6,2002].
Thiscaseillustratestheproperpenaltyimposableontheviolator.Here,theSupremeCourtaffirmedtheSandiganbayansdecisionfinding
Dr.RicoJacutinySalcedoguiltyofthecrimeofsexualharassmentdefinedandpunishedunderR.A.No.7877,particularlySections3and
7 thereof, and penalizing him with imprisonment of six (6) months and to pay a fine of Twenty Thousand (P20,000.00) Pesos, with
subsidiaryimprisonmentincaseofinsolvency.Additionally,hewasorderedtoindemnifytheoffendedparty,JulietYee,intheamount
ofP30,000.00andP20,000.00bywayofmoraldamagesandexemplarydamages,respectively.
6.MINORWORKERS(R.A.NO.7678,R.A.NO.9231).
a.Child,workingchild.meaning.
Forlegalpurposes,thetermchildreferstoanypersonlessthaneighteen(18)yearsofage.
Aworkingchildreferstoanychildengagedasfollows:
i.whenthechildisbeloweighteen(18)yearsofage,inworkoreconomicactivitythatisnotchildlaborand
ii.whenthechildbelowfifteen(15)yearsofage:
(a)inworkwherehe/sheisdirectlyundertheresponsibilityofhis/herparentsorlegalguardianandwhereonlymembersofthechilds
familyareemployedor
(b) in public entertainment or information which refers to artistic, literary, and cultural performances for television show, radio
program,cinemaorfilm,theater,commercialadvertisement,publicrelationsactivitiesorcampaigns,printmaterials,internet,andother
media.
b.Regulationofworkinghoursofachild.
Thetermhoursofworkincludes(1)alltimeduringwhichachildisrequiredtobeataprescribedworkplace,and(2)alltimeduring
whichachildissufferedorpermittedtowork.Restperiodsofshortdurationduringworkinghoursshallbecountedashoursworked.[184]
ThefollowinghoursofworkshallbeobservedforanychildallowedtoworkunderR.A.No.9231anditsImplementingRules:
(a)Forachildbelowfifteen(15)yearsofage,thehoursofworkshallnotbemorethantwenty(20)hoursperweek,providedthatthe
workshallnotbemorethanfour(4)hoursatanygivenday
(b)Forachildfifteen(15)yearsofagebutbeloweighteen(18),thehoursofworkshallnotbemorethaneight(8)hoursaday,andinno
casebeyondforty(40)hoursaweekand
(c)Nochildbelowfifteen(15)yearsofageshallbeallowedtoworkbetweeneight(8)oclockintheeveningandsix(6)oclockinthe
morningofthefollowingdayandnochildfifteen(15)yearsofagebutbeloweighteen(18)shallbeallowedtoworkbetweenten(10)
oclockintheeveningandsix(6)oclockinthemorningofthefollowingday.[185]
c.Employmentofthechildinpublicentertainment.
Sleepingtimeaswellastraveltimeofachildengagedinpublicentertainmentorinformationfromhis/herresidencetohis/herworkplace
shallnotbeincludedashoursworkedwithoutprejudicetotheapplicationofexistingrulesonemployeescompensation.[186]
d.Prohibitionofemployingminorsincertainundertakingsandincertainadvertisements
Nochildbeloweighteen(18)yearsofageisallowedtobeemployedasamodelinanyadvertisementdirectlyorindirectlypromoting
alcoholicbeverages,intoxicatingdrinks,tobaccoanditsbyproducts,gamblingoranyformofviolenceorpornography.[187]
e.Prohibitionontheemploymentofchildrenbelow15yearsofageexceptionsandconditions.
1.Generalrule.Thegeneralruleisthatnochildbelowfifteen(15)yearsofageshallbeemployed,permittedorsufferedtoworkinany
publicorprivateestablishment.[188]
42

(a)Whenthechildworksunderthesoleresponsibilityofhis/herparentsorguardian,providedthatonlymembersofthechildsfamilyare
employed.
(b)Whenthechildsemploymentorparticipationinpublicentertainmentorinformationisessential,regardlessoftheextentofthechilds
role.[189]
3.Conditionstotheprohibition.Suchemploymentshallbestrictlyunderthefollowingconditions:
i.ThetotalnumberofhoursworkedshallbeinaccordancewithSection15[HoursofWorkofaWorkingChild]oftheRules[infra]
ii.Theemploymentdoesnotendangerthechildslife,safety,healthandmorals,norimpairthechildsnormaldevelopment
iii.Thechildisprovidedwithatleastthemandatoryelementaryorsecondaryeducationand
iv.TheemployersecuresaworkpermitforthechildinaccordancewithSections8to12oftheRules.[190]
Normaldevelopmentofthechildreferstothephysical,emotional,mental,andspiritualgrowthofachildwithinasafeandnurturing
environmentwherehe/sheisgivenadequatenourishment,careandprotectionandtheopportunitytoperformtasksappropriateateach
stageofdevelopment.[191]
=================================
TOPICUNDERTHESYLLABUS
C.LABORSTANDARDS
10.EmploymentofHousehelpers
a.Definition
b.Benefitsaccordedhousehelpers
c.Termination
d.Reliefsforunjusttermination
=================================
1.EMPLOYMENTOFHOUSEHELPERS(ARTICLES141TO152,LABORCODE).
a.Definition.
Thetermhousehelperissynonymoustothetermdomesticservantandshallrefertoanyperson,whethermaleorfemale,whorenders
servicesinandabouttheemployershomeandwhoseservicesareusuallynecessaryordesirableforthemaintenanceandenjoyment
thereof,andministersexclusivelytothepersonalcomfortandenjoymentoftheemployersfamily.[192]Itreferstoanypersonwhorenders
domestic or household services exclusively to a household employer. Examples are drivers, babysitters, gardeners, cooks, nursemaids
oryaya,andthelike.[193]
b.Benefitsaccordedhousehelpers.
Househelpersareentitledtothefollowingbenefits:
1. Minimum wage. The minimum wage rates prescribed under Article 143 of the Labor Code which refers to basic cash
wagesmentionedinArticle144.Theseminimumwageratesareonamonthlybasis.[NOTE:Theminimumwageratesprescribedby
RTWPBsdonotapplytohousehelpers].
2.Salaryrateincaseofassignmentincommercial,industrialoragriculturalestablishments.Househelpersshouldnotbeassignedto
workincommercial,industrialoragriculturalenterprises.However,ifsorequiredtoworkthereat,thewageorsalaryrateshouldnotbe
lowerthanthatprovidedforagriculturalornonagriculturalworkersasprescribedbylaworwageorder.[194]
3. Lodging, food and medical attendance. Suitable and sanitary living quarters (lodging) as well as adequate food and medical
attendance,freeofcharge.[195]Article1689oftheCivilCodeenunciatestherulethathouseholdserviceshallalwaysbereasonably
compensated.Anystipulationthathouseholdserviceiswithoutcompensationshallbevoid.Lodging,foodandmedicalattendanceare
notincludedinthetermbasiccashwage.[196]
4.Normalhoursofwork.Househelpersshallnotberequiredtoworkformorethanten(10)hoursaday.[197]
5.Overtimepay.Ifthehousehelperconsentstorenderovertimework,heshouldbepaidovertimepay.Inthesamevein,ifthenatureof
43

6.Opportunityforelementaryeducation.Ifthehousehelperisundertheageofeighteen(18)years,theemployershouldgivehimorher
anopportunityforatleastelementaryeducation.[198]Thecostofeducationshallbepartofthehousehelperscompensation,unlessthere
isastipulationtothecontrary.[199]
7.Monthlyvacation.Thehousehelpershallbeallowedfour(4)daysvacationwithpayeachmonth.[200]
8.CompulsorySSScoverage.ItismandatedundertheLaborCode[201]thatincasethemonthlywageofahousehelperisatleastOne
thousandpesos(P1,000.00),suchhousehelpershallbecoveredbytheSocialSecuritySystem(SSS)andbeentitledtoallthebenefits
providedthereunder.[202]Compulsorycoverageofahousehelpershalltakeeffectonthedayofhis/heremploymentinahouseholdbut
notearlierthanSeptember1,1993.[203]Acoveredhousehelperisentitledtothesamebenefits,loansandotherprivilegesthataremade
availabletoaregularcoveredemployeeundertheSocialSecurity(SS),PhilHealthandEmployeesCompensation(EC)laws.[204]
9.Retirementbenefits.Ahousehelpermayretireuponreachingtheageof60(optional)or65(compulsory)underArticle287ofthe
LaborCode.[205]
10.Funeralbenefit.AccordingtotheRulestoImplementtheLaborCode,incaseofdeathofahousehelper,theemployershallbear
thefuneralexpensescommensuratetothestandardsoflifeofthedeceased.[206]
c.Termination.
Thefollowingprinciplesapplytotheterminationofemploymentofahousehelper:
1.Theemploymentofhousehelpers,beingonafixedtermbasis,terminatesuponitsexpiration.Article142,indescribingthecontractof
domesticservice,explicitlyprovidesthat(t)heoriginalcontractofdomesticserviceshallnotlastformorethantwo(2)yearsbutitmaybe
renewedforsuchperiodsasmaybeagreeduponbytheparties.Theuseofthewordrenewalunderscorestooclearlythatthecontractof
domesticservicehasanexpirationdatewhich,foritscontinuedeffectivity,needstoberenewedbytheemployerandthehousehelper.
2.Thecontractofemploymentofhousehelpersisterminablebymerenotice,aclearindicationofthefixednatureofitsterm.Article150
simplyrequiresthat(i)fthedurationofthehouseholdserviceisnotdeterminedeitherinstipulationorbythenatureoftheservice,the
employerorthehousehelpermaygivenoticetoputanendtotherelationshipfive(5)daysbeforetheintendedterminationoftheservice.
3.Househelpersenjoysecurityoftenureonlyduringtheeffectivityoftheirfixedtermemployment.Afteritsexpiration,norightto
securityoftenuremaybeinvokedbythem.Thus,itisprovidedinArticle149that(i)ftheperiodofhouseholdserviceisfixed,neitherthe
employernorthehousehelpermayterminatethecontractbeforetheexpirationoftheterm,exceptforajustcause.
4.Dueprocessshouldbeobservedinterminatingtheemploymentofhousehelpers.ThefactthatArticle149providesthat(i)ftheperiod
ofhouseholdserviceisfixed,neithertheemployernorthehousehelpermayterminatethecontractbeforetheexpirationoftheterm,except
forajustcause,isarecognitionthatdueprocesshastobeobservedtodeterminewhetherjustcausereallyexiststojustifythedismissal.
[207]
5.Househelperscannotacquireregularityofemployment.TheyarenotincludedintheconceptofregularemploymentunderArticle280
[RegularandCasualEmployment]oftheLaborCode.
d.Reliefsforunjusttermination.
Thefollowingprinciplesapplyinrelationtoreliefsavailabletohousehelpersincaseofunjusttermination
1. The reliefs to which an unjustly dismissed househelper is entitled are provided for in Article 149. Such relief is in the nature of
anindemnity.Thus,ifthehousehelperisunjustlyterminated,heorsheshallbepaidthecompensationalreadyearnedplusthatfor
fifteen(15)daysbywayofindemnity.
2.ThereliefsforillegaldismissalunderArticle280oftheLaborCodedonotapplytounjustterminationofhousehelpers.Clearly,no
reliefofreinstatementor separation pay in lieu of reinstatement to which an illegally dismissed regular employee is entitled is
grantedtoanillegallydismissedhousehelper.
================================
TOPICUNDERTHESYLLABUS
C.LABORSTANDARDS
11.EmploymentofHomeworkers
a.Definition
b.Rightsandbenefitsaccorded
44

c.Conditionsfordeductionfrom
Article149IndemnityforUnjustTerminationofServices
homeworkersearnings
================================
Relevant Provisions: Articles 153 to 155, Labor Code Department Order No. 5, [February 4, 1992] enunciating the regulations
governingtheemploymentofhomeworkers.ThisDepartmentOrderisnowknownasRuleXIV,BookIIIoftheRulestoImplementthe
LaborCode.
1.DEFINITIONS.
a.Industrialhomeworker,defined.
Anindustrialhomeworkerisaworkerwhoisengagedinindustrialhomework.[208]
b.Industrialhomework,defined.
Industrialhomeworkisasystemofproductionunderwhichworkforanemployerorcontractoriscarriedoutbyahomeworkerathis/her
home.Materialsmayormaynotbefurnishedbytheemployerorcontractor.
Itdiffersfromregularfactoryproductionprincipallyinthat,itisadecentralizedformofproductionwherethereisordinarilyverylittle
supervisionorregulationofmethodsofwork.[209]
c.Home,defined.
Homemeansanynook,house,apartmentorotherpremisesusedregularly,inwholeorinpart,asadwellingplace,exceptthosesituated
withinthepremisesorcompoundofanemployer,contractor/subcontractorandtheworkperformedthereinisundertheactiveorpersonal
supervisionbyorforthelatter.[210]
d.Fieldpersonnel,defined.
Afieldpersonnelisanonagriculturalemployeewhoregularlyperformshisdutiesawayfromtheprincipalplaceofbusinessorbranch
officeoftheemployerandwhoseactualhoursofworkinthefieldcannotbedeterminedwithreasonablecertainty.[211]
e.Employer,defined.
Employermeansanynaturalorartificialpersonwho,forhisownaccountorbenefit,oronbehalfofanypersonresidingoutsidethe
Philippines,directlyorindirectly,orthroughanyemployee,agent,contractor,subcontractororanyotherperson:
1.deliversorcausestobedeliveredanygoods,articlesormaterialstobeprocessedorfabricatedinoraboutahomeandthereaftertobe
returnedortobedisposedofordistributedinaccordancewithhisdirectionor
2.sellsanygoods,articlesormaterialsforthepurposeofhavingsuchgoodsorarticlesprocessedinoraboutahomeandthenrepurchases
themhimselforthroughanotheraftersuchprocessing.
f.Contractororsubcontractor,defined.
Contractororsubcontractormeansanypersonwho,fortheaccountorbenefitofanemployer,deliversorcausestobedeliveredtoa
homeworker,goodsorarticlestobeprocessedinorabouthishomeandthereaftertobereturned,disposedofordistributedinaccordance
withthedirectionoftheemployer.[212]
g.Processing,defined.
Processingmeansmanufacturing,fabricating,finishing,repairing,altering,packing,wrappingorhandlinginanywayconnectedwith
theproductionorpreparationofanarticleormaterial.[213]
2.RIGHTSANDBENEFITSACCORDEDHOMEWORKERS.
a.Dutiesofemployer,contractororsubcontractor.
Wheneveranemployercontractswithanotherfortheperformanceoftheemployerswork,itshallbethedutyofsuchemployerto
provideinsuchcontractthattheemployeesorhomeworkersofthecontractorandthelatterssubcontractorshallbepaidinaccordance
withtheprovisionsofRuleXIVoftheRulestoImplementtheLaborCode.Intheeventthatsuchcontractororsubcontractorfailstopay
thewagesorearningsofhisemployeesorhomeworkersasspecifiedinsaidRules,suchemployershallbejointlyandseverallyliablewith
thecontractororsubcontractortotheworkersofthelatter,totheextentthatsuchworkisperformedundersuchcontract,inthesame
mannerasiftheemployeesorhomeworkersweredirectlyengagedbytheemployer.Theemployer,contractororsubcontractorshallassist
45

b.Paymentforhomework.
Immediatelyuponreceiptofthefinishedgoodsorarticles,theemployerisrequiredtopaythehomeworkerorthecontractoror
subcontractor,asthecasemaybe,fortheworkperformedlessthecorrespondinghomeworkersshareofSSS,PhilHealthandECCpremium
contributionswhichshouldberemittedbythecontractororsubcontractororemployertotheSSSwiththeemployersshare.However,
wherepaymentismadetoacontractororsubcontractor,thehomeworkershouldlikewisebepaidimmediatelyafterthegoodsorarticles
havebeencollectedfromtheworkers.[215]
c.Prohibitionsoncertainkindsofhomework.
Nohomeworkshallbeperformedonthefollowing:
1.Explosives,fireworksandarticlesoflikecharacter
2.Drugsandpoisonsand
3.otherarticles,theprocessingofwhichrequiresexposuretotoxicsubstances.[216]
3.CONDITIONSFORDEDUCTIONFROMHOMEWORKERSEARNINGS.
a.Deductionsforlost,destroyed,soiledordamagedmaterials.
Noemployer,contractororsubcontractorshallmakeanydeductionfromthehomeworkersearningsforthevalueofmaterials
whichhavebeenlost,destroyed,soiledorotherwisedamagedunlessthefollowingconditionsaremet:
a.Thehomeworkerconcernedisclearlyshowntoberesponsibleforthelossordamage
b.Thehomeworkerisgivenreasonableopportunitytoshowcausewhydeductionshouldnotbemade
c.Theamountofsuchdeductionisfairandreasonableandshallnotexceedtheactuallossordamageand
d.Thedeductionismadeatsuchratethattheamountdeducteddoesnotexceedtwentypercent(20%)ofthehomeworkersearningsina
week.[217]
==================================
TOPICUNDERTHESYLLABUS
C.LABORSTANDARDS
12.ApprenticesandLearners
a.DistinctionsbetweenLearnership
andApprenticeship
==================================
RelevantProvisions:1.ApprenticescoveredbyArticles57to72,LaborCode
2.LearnerscoveredbyArticles73to77,LaborCode
3.RepublicActNo.7796(TechnicalEducationandSkills
DevelopmentActof1994)anditsImplementingRulesand
Regulations
1.DISTINCTIONSBETWEENLEARNERSHIPANDAPPRENTICESHIP.
Thefollowingarethedistinctions:
1.Practicaltraining.Bothlearnershipandapprenticeshipinvolvepracticaltrainingonthejob.
2.Trainingagreement. Learnership is governed by a learnership agreement while apprenticeship is governed by an apprenticeship
agreement.
2.Occupation.Learnershipinvolveslearnableoccupationsconsistingofsemiskilledandotherindustrialoccupationswhicharenon
apprenticeablewhileapprenticeshipconcernsapprenticeableoccupationsoranytrade,formofemploymentoroccupationapprovedfor
46

3.Theoreticalinstructions.Learnershipmayormaynotbesupplementedbyrelatedtheoreticalinstructionswhileapprenticeshipshould
alwaysbesupplementedbyrelatedtheoreticalinstructions.
4.Ratiooftheoreticalinstructionsandonthejobtraining.Forbothlearnershipandapprenticeship,thenormalratioisonehundred
(100)hoursoftheoreticalinstructionsforeverytwothousand(2,000)hoursofpracticaloronthejobtraining.Theoreticalinstructiontime
foroccupationsrequiringlessthantwothousand(2,000)hoursforproficiencyshouldbecomputedonthebasisofsuchratio.[218]
5.Competencybasedsystem.Unlikeinapprenticeship,itisrequired[219]inlearnershipthatitbeimplementedbasedontheTESDA
approvedcompetencybasedsystem.[220]
6. Duration of training. Learnership involves practical training on the job for a period not exceeding three (3) months while
apprenticeshiprequiresforproficiency,morethanthree(3)monthsbutnotoversix(6)months[221]ofpracticaltrainingonthejob.
7.Qualifications.Thelawdoesnotexpresslymentionanyqualificationsforlearnerswhilethefollowingqualificationsarerequiredto
bemetbyapprenticesunderArticle59oftheLaborCode:
(a)Beatleastfourteen(14)yearsofage
(b)Possessvocationalaptitudeandcapacityforappropriatetestsand
(c)Possesstheabilitytocomprehendandfolloworalandwritteninstructions.
8.Circumstancesjustifyinghiringoftrainees.Unlikeinapprenticeship,inlearnership,thelaw,Article74oftheLaborCode,expressly
prescribestheprerequisitesbeforelearnersmaybevalidlyemployed,towit:
a.Whennoexperiencedworkersareavailable
b.Theemploymentoflearnersisnecessarytopreventcurtailmentofemploymentopportunitiesand
c.Theemploymentdoesnotcreateunfaircompetitionintermsoflaborcostsorimpairorlowerworkingstandards.[222]
9.Limitationonthenumberoftrainees.Inlearnership,aparticipatingenterpriseisallowedtotakeinlearnersonlyuptoamaximumof
twentypercent(20%)ofitstotalregularworkforce.[223]Nosimilarcapisimposedinthecaseofapprenticeship.
10. Option to employ. In learnership, the enterprise is obliged to hire the learner after the lapse of the learnership period while in
apprenticeship,theenterpriseisgivenonlyanoptiontohiretheapprenticeasanemployee.[224]
11Wagerate.Thewagerateofalearneroranapprenticeissetatseventyfivepercent(75%)ofthestatutoryminimumwage.[225]
====================================
TOPICUNDERTHESYLLABUS
C.LABORSTANDARDS
13.HandicappedWorkers(RA7277)
a.Definitionofhandicappedworkers
b.Rightsofdisabledworkers
c.Prohibitionsondiscrimination
againstdisabledpersons
d.Incentivesforemployers
====================================
RelevantProvisions:HandicappedworkerscoveredbyArticles78to81,LaborCode
R.A.No.7277[March24,1992](MagnaCartaforDisabledPersons)[nowtobeknownas
MagnaCartaforPersonswithDisabilityperSection4ofR.A.No.9442(effectiveApril30,
2007)],
1.DEFINITIONOFHANDICAPPEDWORKERS(UNDERR.A.NO.7277).
a.Importantclarificationofterms.
47

Handicappedpersonsshould not be called disabled persons but persons with disability. The term disabled persons has been
changedtopersonswithdisabilitynotonlyinthetitleofR.A.No.7277butinallreferencesinthesaidlawtodisabledpersons
virtueofR.A.No.9442.
b.Definitionofimportantterms.
Thefollowingtermsarespecificallydefinedinthelaw:
1. Persons with Disability are those suffering from restriction or different abilities, as a result of a mental, physical or sensory
impairment,toperformanactivityinthemannerorwithintherangeconsiderednormalforahumanbeing.
2.Impairmentreferstoanyloss,diminutionoraberrationofpsychological,physiological,oranatomicalstructureorfunction.

3. Disability means (1) a physical or mental impairment that substantially limits one or more psychological, physiological or
anatomicalfunctionsofanindividualoractivitiesofsuchindividual(2)arecordofsuchanimpairmentor(3)beingregardedashaving
suchanimpairment.
4.Handicapreferstoadisadvantageforagivenindividual,resultingfromanimpairmentoradisabilitythatlimitsorpreventsthe
functionoractivitythatisconsiderednormalgiventheageandsexoftheindividual.
5.ReasonableAccommodationsinclude:(1)improvementofexistingfacilitiesusedbyemployeesinordertorenderthesereadily
accessibletoandusablebypersonswithdisabilityand(2)modificationofworkschedules,reassignmenttoavacantposition,acquisition
or modification of equipment or devices, appropriate adjustments or modifications of examinations, training materials or company
policies,rulesandregulations,theprovisionofauxiliaryaidsandservices,andothersimilaraccommodationsforpersonswithdisability.
6.MarginalizedDisabledPersonsormoreappropriately,MarginalizedPersonswithDisabilityrefertopersonswithdisabilitywho
lackaccesstorehabilitativeservicesandopportunitiestobeabletoparticipatefullyinsocioeconomicactivitiesandwhohavenomeans
oflivelihoodandwhoseincomesfallbelowthepovertythreshold.
7.QualifiedIndividualwithaDisabilitymeansanindividualwithadisabilitywho,withorwithoutreasonableaccommodations,can
performtheessentialfunctionsoftheemploymentpositionthatsuchindividualholdsordesires.However,considerationshallbegivento
the employers judgment as to what functions of a job are essential, and if an employer has prepared a written description before
advertisingorinterviewingapplicantsforthejob,thisdescriptionshallbeconsideredevidenceoftheessentialfunctionsofthejob.
8.CoveredEntitymeansanemployer,employmentagency,labororganizationorjointlabormanagementcommittee.
2.RIGHTSOFPERSONSWITHDISABILITY(DISABLEDWORKERS).
a.Equalopportunityforpersonswithdisability.
Underthelaw,[226]personswithdisabilityareentitledtoequalopportunityforemployment.Consequently,nopersonwithdisability
shallbedeniedaccesstoopportunitiesforsuitableemployment.Aqualifiedemployeewithdisabilityshallbesubjecttothesameterms
andconditionsofemploymentandthesamecompensation,privileges,benefits,fringebenefits,incentivesorallowancesasaqualified
ablebodiedperson.
Fivepercent(5%)ofallcasualemergencyandcontractualpositionsintheDepartmentsofSocialWelfareandDevelopment,Health,
Education and other government agencies, offices or corporations engaged in social development shall be reserved for persons with
disability.[227]
b.Shelteredemploymentforpersonswithdisability.
ShelteredEmployment refers to the provision of productive work for persons with disability through workshops providing special
facilities,incomeproducingprojectsorhomeworkschemeswithaviewtogivingthemtheopportunitytoearnalivingthusenabling
themtoacquireaworkingcapacityrequiredinopenindustry.
Ifsuitableemploymentforpersonswithdisabilitycannotbefoundthroughopenemployment,theStateshallendeavortoprovideitby
meansofshelteredemployment.Intheplacementofpersonswithdisabilityinshelteredemployment,itshallaccorddueregardtothe
individualqualities,vocationalgoalsandinclinationstoensureagoodworkingatmosphereandefficientproduction.[228]
c.Vocationalrehabilitation.
Consistentwiththeprincipleofequalopportunityforworkerswithdisabilityandworkersingeneral,theStateshalltakeappropriate
vocational rehabilitation measures that shall serve to develop the skills and potentials of persons with disability and enable them to
competefavorablyforavailableproductiveandremunerativeemploymentopportunitiesinthelabormarket.
TheStateshallalsotakemeasurestoensuretheprovisionofvocationalrehabilitationandlivelihoodservicesforpersonswithdisabilityin
48

andotherprivateentitiesengagedinvocationalrehabilitationactivities.
TheDepartmentofSocialWelfareandDevelopment(DSWD)shalldesignandimplementtrainingprogramsthatwillprovidepersons
withdisabilitywithvocationalskillstoenablethemtoengageinlivelihoodactivitiesorobtaingainfulemployment.TheDepartmentof
LaborandEmployment(DOLE)shalllikewisedesignandconducttrainingprogramsgearedtowardsprovidingpersonswithdisability
withskillsforlivelihood.[229]
d.Vocationalguidanceandcounselling.
TheDSWDshallimplementmeasuresprovidingandevaluatingvocationalguidanceandcounsellingtoenablepersonswithdisabilityto
secure,retainandadvanceinemployment.Itshallensuretheavailabilityandtrainingofcounsellorsandothersuitablyqualifiedstaff
responsibleforthevocationalguidanceandcounsellingofpersonswithdisability.[230]
e.Personswithdisabilityareeligibleforapprenticeshipandlearnership.
UnderR.A.No.7277,[231]itisprovidedthatsubjecttotheprovisionsoftheLaborCode,asamended,personswithdisabilityshallbe
eligibleasapprenticesorlearnersprovidedthattheirhandicapisnotasmuchastoeffectivelyimpedetheperformanceofjoboperationsin
the particular occupation for which they are hired and provided further that after the lapse of the period of apprenticeship, if found
satisfactoryinthejobperformance,theyshallbeeligibleforemployment.
f.Wagerate.
UnderArticle80oftheLaborCode,handicappedworkersareentitledtonotlessthanseventyfivepercent(75%)oftheapplicable
adjustedminimumwage.[232]
Inview,however,ofR.A.No.7277,[233]thewagerateofpersonswithdisabilityis100%oftheapplicableminimumwage.
Wage orders issued by the Regional Tripartite Wages and Productivity Boards (RTWPBs) normally reflect this principle. To cite an
example,Section7ofWageOrderNo.NCR15[effectiveJuly01,2010]issuedbyRTWPBNationalCapitalRegionstates:
AllqualifiedhandicappedworkersshallreceivethefullamountoftheminimumwagerateprescribedhereinpursuanttoRepublicAct
No.7277,otherwiseknownastheMagnaCartaforDisabledPersons.[234]
Moreover,incaseoflegallymandatedwageincreasesenunciatedinwageordersissuedbytheRTWPBs,theemployment
agreementswithpersonswithdisabilityaredeemedautomaticallymodifiedinsofarastheirwageclausesareconcernedtoreflectthesaid
increases.[235]
g.Wagerateasapprenticeorlearner.
Apersonwithdisabilityhiredasanapprenticeorlearnershallbepaidnotlessthanseventyfivepercent(75%)oftheapplicable
minimumwage.
Ifthepersonwithdisability,however,ishiredasalearnerandemployedinpieceorincentiveratejobsduringthetrainingperiod,
heshallbepaidonehundredpercent(100%)oftheapplicableminimumwage.
3.PROHIBITIONSONDISCRIMINATIONAGAINSTPERSONSWITHDISABILITY(DISABLEDPERSONS).
a.Discriminationonemploymentprohibited.
Noentity,whetherpublicorprivate,shalldiscriminateagainstaqualifiedpersonwithdisabilitybyreasonofdisabilityinregardtojob
application procedures, the hiring, promotion, or discharge of employees, employee compensation, job training, and other terms,
conditionsandprivilegesofemployment.Thefollowingconstituteactsofdiscrimination:
(a)Limiting,segregatingorclassifyingajobapplicantwithdisabilityinsuchamannerthatadverselyaffectshisworkopportunities
(b)Usingqualificationstandards,employmenttestsorotherselectioncriteriathatscreenoutortendtoscreenoutapersonwithdisability
unlesssuchstandards,testsorotherselectioncriteriaareshowntobejobrelatedforthepositioninquestionandareconsistentwith
businessnecessity
(c)Utilizingstandards,criteria,ormethodsofadministrationthat:
(1)havetheeffectofdiscriminationonthebasisofdisabilityor
(2)perpetuatethediscriminationofotherswhoaresubjecttocommonadministrativecontrol.
49

disability,byreasonofhisdisability,thantheamounttowhichanondisabledpersonperformingthesameworkisentitled
(e)Favoringanondisabledemployeeoveraqualifiedemployeewithdisabilitywithrespecttopromotion,trainingopportunities,study
andscholarshipgrants,solelyonaccountofthelattersdisability
(f)Reassigningortransferringanemployeewithadisabilitytoajoborpositionhecannotperformbyreasonofhisdisability
(g)Dismissingorterminatingtheservicesofanemployeewithdisabilitybyreasonofhisdisabilityunlesstheemployercanprovethathe
impairsthesatisfactoryperformanceoftheworkinvolvedtotheprejudiceofthebusinessentityprovided,however,thattheemployerfirst
soughttoprovidereasonableaccommodationsforpersonswithdisability
(h)Failingtoselectoradministerinthemosteffectivemanneremploymenttestswhichaccuratelyreflecttheskills,aptitudeorother
factoroftheapplicantoremployeewithdisabilitythatsuchtestspurportstomeasure,ratherthantheimpairedsensory,manualorspeaking
skillsofsuchapplicantoremployee,ifanyand
(i)Excludingpersonswithdisabilityfrommembershipinlaborunionsorsimilarorganizations.[236]
4.INCENTIVESFOREMPLOYERS.
a.Incentivesforemployerswhoemploypersonswithdisability.
To encourage the active participation of the private sector in promoting the welfare of persons with disability and to ensure gainful
employmentforqualifiedpersonswithdisability,adequateincentivesshallbeprovidedtoprivateentitieswhichemploypersonswith
disability.[237]
Privateentitiesthatemploypersonswithdisabilitywhomeettherequiredskillsorqualifications,eitherasaregularemployee,apprentice
orlearner,shallbeentitledtoanadditionaldeductionfromtheirgrossincomeequivalenttotwentyfivepercent(25%)ofthetotalamount
paid as salaries and wages to persons with disability provided, however, that such entities could present proof as certified by the
DepartmentofLaborandEmploymentthatpersonswithdisabilityareundertheiremployandprovidedfurtherthattheemployeewith
disability is accredited with the Department of Labor and Employment and the Department of Health as to his disability, skills and
qualifications.[238]
Privateentitiesthatimproveormodifytheirphysicalfacilitiesinordertoprovidereasonableaccommodationforpersonswithdisability
shallalsobeentitledtoanadditionaldeductionfromtheirnettaxableincomeequivalenttofiftypercent(50%)ofthedirectcostsofthe
improvementsormodifications.ThisSection,however,doesnotapplytoimprovementsormodificationsoffacilitiesrequiredunderBatas
PambansaBilang344[February25,1983],entitledAnActtoEnhancetheMobilityofDisabledPersonsbyRequiringCertainBuildings,
Institutions,Establishments,andPublicUtilitiestoInstallFacilitiesandOtherDevices.[239]
ENDOFDISCUSSIONON
TOPICC.LABORSTANDARDS
oooooooooOoOooooooooo

[1]ExplanatoryBulletinontheEffectofReductionofWorkdaysonWages/LivingAllowancesissuedbytheDOLEonJuly23,1985.
[2]SeeSection3[e]thereof
[3]Article83,LaborCodeSection1,RuleIA,BookIII,RulestoImplementtheLaborCode.
[4]Article83,LaborCodeSection4,RuleIA,BookIII,Ibid..
[5]Section5,RuleIA,BookIII,Ibid..
[6]Section6,RuleIA,BookIIIthereof.
[7]Article83,LaborCodeSection7,RuleIA,BookIII,Ibid..
[8]Section8,RuleIA,BookIII,Ibid..
[9]PolicyInstructionsNo.36datedMay22,1978wasissuedbytheUndersecretaryofLaborandEmploymenttoclarifytheeffectsofpowerinterruptionsor
brownoutsonproductivemanhours.
[10]PolicyInstructionsNo.36,May22,1978.
[11]DurabiltRecappingPlantCompanyv.NLRC,G.R.No.L76746,July27,1987,152SCRA328.
50

[12]Article85,LaborCodeSection7,RuleI,BookIII,RulestoImplementtheLaborCode.
[13]Section7,RuleI,BookIII,Ibid..
[14]LetterOpiniondatedNov.27,1989ofSecretaryFranklinDrilontoKodakPhilippines.
[15]Lastparagraph,Section7,RuleI,BookIII,RulestoImplementtheLaborCode.
[16]NationalDevelopmentCompanyv.CourtofIndustrialRelations,G.R.No.L15422,Nov.30,1962.
[17]Article84,LaborCodeSection3,RuleI,BookIII,RulestoImplementtheLaborCodeRadav.NLRC,G.R.No.96078,Jan.9,1992,205SCRA69.
[18]UnionCarbideLaborUnionv.UnionCarbidePhilippines,Inc.,215SCRA554[1992].
[19]DurabiltRecappingPlantCompanyv.NLRC,G.R.No.L76746,July27,1987,152SCRA328.
[20]Section5[a],RuleI,BookIII,Ibid..
[21]No.III,DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[22]No.IV,Ibid..
[23]Mercaderv.ManilaPoloClub,G.R.No.L8373,Sept.28,1956Cruzv.YeeSing,G.R.No.L12046,Oct.1959ManilaTerminalCo.,Inc.v.CIR,G.R.
No.L9265,April29,1957,48O.G.7,p.2725,91Phil.625.
[24]Article6,CivilCodePampangaSugarDevelopmentCo.,Inc.v.CourtofIndustrialRelations,G.R.No.L39387,June29,1982.
[25]MeralcoWorkersUnionv.ManilaElectricCo.,G.R.No.L11876,May29,1959.
[26]No.IV[D],DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[27]EngineeringEquipment,Inc.v.MinisterofLabor,G.R.No.L64967,Sept.23,1985
[28]Aklan Electric Cooperative v. NLRC, G.R. No. 121439, Jan. 25, 2000 Philippine Airlines v. NLRC, G.R. No. 55159, June 22, 1989 Caltex Refinery
EmployeesAssociationv.Brillantes,G.R.No.123782,Sept.16,1997,279SCRA218DurabiltRecappingPlantCompanyv.NLRC,G.R.No.L76746,July
27,1987,152SCRA328SSSv.SSSSupervisorsUnion,G.R.No.L31832,Oct.23,1982J.P.HeilbronnCo.v.NationalLaborUnion,G.R.No.L5121,
Jan.20,1953.
[29]Section1,RuleVIIA,BookIII,RulestoImplementtheLaborCode,asamendedbyMemorandumCircularNo.3,Nov.4,1992.
[30]Item[n],DefinitionofTerms,RulesImplementingRepublicActNo.6727.
[31]SeealsoSanMiguelCorporationCagayanCocaColaPlantv.Inciong,G.R.No.L49774,Feb.24,1981,103SCRA139.
[32]Section2,RuleVIIA,BookIII,RulestoImplementtheLaborCode,asamendedbyMemorandumCircularNo.3,Nov.4,1992.
[33]StateMarineCooperationandRoyalLine,Inc.v.CebuSeamensAssociation,Inc.,G.R.No.L12444,Feb.28,1963AtokBigWedgeMiningCo.,Inc.v.
AtokBigWedgeMutualBenefitAssociation,G.R.No.L5276,March3,1953,97Phil.294.
[34]StatesMarineCooperationandRoyalLine,Inc.v.CebuSeamensAssociation,Inc.,G.R.No.L12444,Feb.28,1963,7SCRA294AtokBigWedge
MiningCo.,Inc.v.AtokBigWedgeMutualBenefitAssociation,G.R.No.L5276,March3,1953,97Phil.294
[35]StatesMarineCorporationandRoyalLine,Inc.v.CebuSeamensAssociation,Inc.,infraMayonHotel&Restaurantv.Adana,supraMabezav.NLRC,
supra.
[36]StatesMarineCorporationandRoyalLine,Inc.v.CebuSeamensAssociation,Inc.,[G.R.No.L12444,February28,1963,7SCRA294].
[37]Mabezav.NLRC,[G.R.No.118506,April18,1997,271SCRA670].
[38]Section1,RuleVIIA,BookIII,RulestoImplementtheLaborCode,asamendedbyMemorandumCircularNo.3,Nov.4,1992.
[39]S.I.P.FoodHousev.Batolina,[G.R.No.192473,October11,2010],
[40] The terms wage (etymologically from the Middle English word wagen), salary (from the Roman word sal and Latin word salarium) are
synonymousinmeaningandusage.Theyallrefertothesamething,i.e.,acompensationpaidonaccountofworkorservicesrendered.
[41]Gaav.CA,infraSeealsoEquitableBankingCorp.v.Sadac,G.R.No.164772,June8,2006.
[42]Article124,LaborCodeItem[p],DefinitionofTerms,RulesImplementingRepublicActNo.6727Section4[m],RuleI,NWPCGuidelinesNo.01,Series
of2007,June19,2007[AmendedRulesofProcedureonMinimumWageFixingSeealsoSection1[l],RuleII,NCMBRevisedProceduralGuidelinesinthe
ConductofVoluntaryArbitrationProceedings[Oct.15,2004].
51

AssociatedLaborUnionsTUCPv.NLRC,G.R.No.109328,Aug.16,1994,235SCRA395.
[44]PrubankersAssociationv.PrudentialBankandTrustCompany,[G.R.No.131247,January25,1999,302SCRA74].
[45]NationalFederationofLaborv.NLRC,G.R.No.103586,July21,1994,234SCRA311.
[46]PrubankersAssociationv.PrudentialBankandTrustCompany,[supra].
[47]NationalFederationofLaborv.NLRC,G.R.No.103586,July21,1994,234SCRA311MetroTransitOrganization,Inc.v.NLRC,G.R.No.116008,July
11,1995,245SCRA767.
[48]MeycauayanCollegesv.Drilon,G.R.No.81144,May7,1990UniversalCornProductsv.NLRC,153SCRA191CitibankPhilippinesEmployeesUnion
NATUv.MinisterofLabor,97SCRA52Roche[Philippines],v.NLRC,G.R.No.83335,Oct.5,1989PhilippineApparelWorkersUnionv.NLRC,G.R.No.L
50320,July31,1981,106SCRA444.
[49]MarcopperMiningCorporationv.NLRC,G.R.No.103525,March29,1996KimberlyClarkPhils.v.Lorredo,G.R.No.103090,Sept.21,1993,226
SCRA639PlasticTownCenterCorporationv.NLRC,G.R.No.81176,April19,1989,172SCRA580.
[50]FilipinasGolf&CountryClub,Inc.v.NLRC,G.R.No.62918,Aug.23,1989.
[51]PhilippineTelegraphandTelephoneCorporationv.NLRC,G.R.No.99858,June19,1995,245SCRA193LibertyFlourMillsEmployeesv.LibertyFlour
Mills,Inc.,G.R.Nos.5876870,Dec.29,1989,180SCRA668.
[52]ApexMiningCo.,Inc.v.NLRC,G.R.No.86200,Feb.25,1992,206SCRA497.
[53]LakasngManggagawangMakabayan[LMM]v.Abiera,G.R.No.L29474,Dec.19,1970LiberationSteamshipCo.,Inc.v.CIR,G.R.No.L25389,June
27,1968.
[54]RepublicPlantersBank,nowknownasPNBRepublicBank,v.NLRC,G.R.No.117460,Jan.6,1997DavaoFruitsCorporationv.AssociatedLabor
Union,G.R.No.85073,Aug.24,1993,225SCRA567
[55]Philippine Wireless, Inc. [Pocketbell] v. NLRC, G.R.No.112963,July20,1999Brillantes v. Guevarra, G.R. No.L22586, Feb. 27, 1969, 27 SCRA
138Fernandov.Sto.Tomas,G.R.No.112309,July28,1994,234SCRA546.
[56]Tiniov.CA,G.R.No.171764,June8,2007.
[57]UnicornSafetyGlass,Inc.v.Basarte,G.R.No.154689,Nov.25,2004SeealsoUniwideSalesWarehouseClubv.NLRC,G.R.No.154503,Feb.29,
2008ChiangKaiShekCollegev.Hon.CA,G.R.No.152988,Aug.24,2004.
[58]AsamendedbySection1ofR.A.No.6715[March21,1989].
[59]ParticularlySection10,RuleVIII,BookIIIoftheRulestoImplementtheLaborCode,asamendedonMay24,1989.
[60]SomeofthenotablecaseswherethispronouncementwasassertedareBolinao,Jr.v.Padolina,[G.R.No.81415,June6,1990,186SCRA368]DBPv.
NLRC,[G.R.No.86932,June27,1990,186SCRA841]DBPv.MinisterofLabor,[G.R.No.75801,March20,1991]DBPv.NLRC,[G.R.Nos.10026481,
January29,1993]DBPv.NLRC,[G.R.No.86227,January19,1994,229SCRA350]Hauteav.NLRC,[G.R.No.96149,February16,1994]DBPv.
NLRC, [G.R. No. 106655, September 1, 1994] DBP v. NLRC, [G.R. No. 108031, March 01, 1995] and Barayoga v. Asset Privatization Trust, [GR No.
160073,October24,2005].
[61]TheManilaBankingCorporation,v.NLRC,G.R.No.107487,Sept.29,1997,279SCRA602.
[62]CommissionerofInternalRevenuev.NLRC,G.R.No.74965,Nov.9,1994,238SCRA42DBPv.SecretaryofLabor,G.R.No.79351,Nov.28,1989.
[63]DBPv.NLRC,G.R.No.86227,Jan.19,1994,229SCRA350.
[64]DBPv.SecretaryofLabor,G.R.No.79351,Nov.28,1989citingPhilippineSavingsBankv.Lantin,G.R.No.L33929,Sept.2,1983,124SCRA476DBP
v.Hon.LaborArbiterArielC.SantosG.R.Nos.7826162,March8,1989.
[65]DBPv.NLRC,G.R.No.108031,March1,1995,242SCRA59.
[66]SeealsoRepublicv.Enriquez,G.R.No.L78391,Oct.21,1988,166SCRA608.
[67]Hauteav.NLRC,G.R.No.96149,Feb.16,1994,230SCRA119DBPv.NLRC,G.R.Nos.8276364,June27,1990,183SCRA328.
[68]Hauteav.NLRC,G.R.No.96149,Feb.16,1994,230SCRA119.
52

[70]Republicv.Peralta,G.R.No.56568,May20,1987,150SCRA37,51.
[71]Galvadoresv.Trajano,G.R.No.L70067,Sept.15,1986,144SCRA138.
[72]Article248[e],LaborCode.
[73]RadioCommunicationsofthePhils.,Inc.v.SecretaryofLaborandEmployment,G.R.No.77959,Jan.9,1989,169SCRA38.
[74]Section13,RuleVIII,BookIII,RulestoImplementtheLaborCode.
[75]Section7,RuleVI,BookIII,RulestoImplementtheLaborCode.
[76]Article1706,CivilCode
[77]Article1708,CivilCode.
[78]Article59,R.A.No.6938.
[79]SpecialSteelProducts,Inc.v.Villareal,[G.R.No.143304,July8,2004].
[80]Pondocv.NLRC,G.R.No.116347,Oct.03,1996.
[81]Agabonv.NLRC,[G.R.No.158693,November17,2004].
[82]FiveJ.Taxi,v.NLRC,G.R.No.111474,Aug.22,1994,235SCRA556PhilippineAssociationofFreeLaborUnions[PAFLU]v.BinalbaganIsabela
SugarCo.,G.R.No.L23959,Nov.29,1971,42SCRA302.
[83]RCPIv.SecretaryofLaborandEmployment,infra.
[84]Section1,RuleII,NWPCGuidelinesNo.01,Seriesof2007,June19,2007[AmendedRulesofProcedureonMinimumWageFixing].
[85]Section1,RuleIII,BookIII,RulestoImplementtheLaborCode.
[86]Section3,RuleIII,BookIII,Ibid..
[87]Section5[a],RuleIII,BookIII,Ibid..
[88]Section5[b],RuleIII,BookIII,Ibid..
[89]Section4,RuleIII,BookIII,Ibid..
[90]Section4,RuleIII,BookIII,Ibid..
[91]UnderSection6,RuleIII,BookIIIoftheRulestoImplementtheLaborCode.
[92]SeeSection6,RuleIII,BookIII,RulestoImplementtheLaborCode.
[93]Section6[a],RuleIV,BookIII,RulestoImplementtheLaborCodeNo.II[E],DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[94]Section6[a],RuleIV,BookIII,Ibid.No.II[E],Ibid.
[95]Section6[b],RuleIV,BookIII,Ibid.No.II[E],Ibid..
[96]Section6[c],RuleIV,BookIII,Ibid.No.II[E],Ibid..
[97]Section7[a],RuleIV,BookIII,Ibid.No.II[F],Ibid..
[98]Section7[b],RuleIV,BookIII,Ibid..
[99]Section8[a],RuleIV,BookIII,Ibid.No.II[G],Ibid..
[100]JoseRizalCollegev.NLRC,[G.R.No.65482,December1,1987].

53

[101]Section8[b],RuleIV,BookIII,RulestoImplementtheLaborCodeNo.II[G],DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[102]LaborCongressofthePhilippinesv.NLRC,[G.R.No.123938,May21,1998,290SCRA509]Tanv.Lagrama,[G.R.No.151228,August15,2002].
[103]Lambov.NLRC,[G.R.No.111042,October26,1999,317SCRA420].
[104]Section8[c],RuleIV,BookIII,RulestoImplementtheLaborCodeNo.II[G],DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[105]Article82,LaborCodeSeealsoSection1,RuleIV,BookIII,RulestoImplementtheLaborCodeNo.II[A],DOLEHandbookonWorkersStatutory
MonetaryBenefits.
[106]Article95[a],LaborCodeSection2,RuleV,BookIII,RulestoImplementtheLaborCode.
[107]Section 3, Rule V, Book III, Rules to Implement the LaborCodeNo.VI[B],DOLEHandbookonWorkersStatutoryMonetaryBenefitsIntegrated
ContractorandPlumbingWorks,Inc.v.NLRC,G.R.No.152427,August9,2005.
[108]Article82,LaborCodeSection1,RuleV,BookIII,RulestoImplementtheLaborCodeNo.VI[A],DOLEHandbookonWorkersStatutoryMonetary
Benefits.
[109]Section5,RuleV,BookIII,Ibid.No.VI[C],Ibid..
[110]Escosurav.SanMiguelBrewery,Inc.,G.R.No.L16696Jan.31,1962.
[111]No.VI[C],DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[112]SeeNo.VI[A],DOLEHandbookonWorkersStatutoryMonetaryBenefitsbasedontheopinionofDOLELegalService.
[113]AsamendedbyR.A.No.7322aswellastheSocialSecurityActof1997[R.A.No.8282].
[114]No.XI,DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[115]No.XI,DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[116]No.XI,DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[117]Thetableofsuchmonthlysalarycreditisomitted.
[118]Section3,R.A.No.8187Section1[a],RevisedImplementingRulesandRegulationsofR.A.No.8187[March13,1997].
[119]Section2,Ibid.Section1[c],Ibid..
[120]Section1[d],Ibid..
[121]Section1[e],Ibid..
[122]Section2,R.A.No.8187.
[123]Sections5and8,RevisedImplementingRulesandRegulationsofR.A.No.8187[March13,1997].
[124]Section6,RevisedImplementingRulesandRegulationsofR.A.No.8187[March13,1997].
[125]Section18,ArticleV,ImplementingRulesofR.A.No.8972.
[126]Section8,R.A.No.8972.
[127]Section3[a],R.A.No.8972Section6[b],ArticleIII,ImplementingRulesofR.A.No.8972.
[128]Section3[b],R.A.No.8972Section6[e],ArticleIII,ImplementingRulesofR.A.No.8972.
[129]Section3[c],R.A.No.8972Section6[f],ArticleIII,ImplementingRulesofR.A.No.8972.
[130]Section19,Articlev,ImplementingRulesofR.A.No.8972.

54

[131]Section20,Articlev,ImplementingRulesofR.A.No.8972.
[132]Section21,Articlev,ImplementingRulesofR.A.No.8972.
[133]Section43,R.A.No.9262.
[134]Id.
[135]Section42,ImplementingRulesandRegulationsofR.A.No.9262.
[136]Id.
[137]Article96,LaborCodeSection1,RuleVI[ServiceCharges],BookIIIoftheRulestoImplementtheLaborCode.
[138]Section2,RuleVI,BookIII,RulestoImplementtheLaborCode.
[139]Id.
[140]No.VII[A],DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[141]Section3,RuleVI,BookIII,Ibid.No.VII[A],Ibid..
[142]Section4,RuleVI,BookIII,Ibid.No.VII[B],Ibid..
[143]Section5,RuleVI,BookIII,Ibid.No.VII[B],Ibid..
[144]No.VII[C],DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[145]MayonHotel&Restaurantv.Adana,[G.R.No.157634,May16,2005].
[146]No.2[a],RevisedGuidelinesontheImplementationofthe13thMonthPayLaw,formerlySection3[b],RulesandRegulationsImplementingP.D.No.
851AllianceofGovernmentWorkersv.MinisterofLaborandEmployment,G.R.No.L60403,Aug.3,1983.
[147]Section2,P.D.No.851No.2[b],RevisedGuidelinesontheImplementationofthe13 MonthPayLaw,formerlySection3[c],RulesandRegulations
ImplementingP.D.No.851.
th

[148]No.2[c],RevisedGuidelinesontheImplementationofthe13 MonthPayLaw,formerlySection3[d],RulesandRegulationsImplementingP.D.No.851.
th

[149]No.2[d],Ibid.,formerlySection3[e],RulesandRegulationsImplementingP.D.No.851.
[150]Agabonv.NLRC,[G.R.No.158693,November17,2004].
[151]AllianceofGovernmentWorkersv.MinisterofLabor,G.R.No.L60403,Aug.3,1983NationalFederationofSugarWorkersv.Ovejera,G.R.No.
59743,May31,1982MarcopperMiningCorporationv.Ople,G.R.No.51254,June11,1981,105SCRA75.
[152]CentralAzucareradeTarlacv.CentralAzucareradeTarlacLaborUnionNLU,G.R.No.188949,July26,2010.
[153]Section2[a],RulesandRegulationsImplementingP.D.No.851.
[154]Reyesv.NLRC,[G.R.No.160233,August8,2007].
[155]PhilippineDuplicators,Inc.v.NLRC,[G.R.No.110068,February15,1995]BoieTakedaChemicals,Inc.v.DelaSerna,[G.R.No.92174]andPhilippine
FujiXeroxCorporationv.Trajano,[G.R.No.102552,March24,1994].
[156]Id.
[157]KingofKingsTransport,Inc.v.Mamac,[G.R.No.166208,June29,2007].
[158]No.4[a],RevisedGuidelinesontheImplementationofthe13 MonthPayLaw,formerlySection2[b]oftheRulesandRegulationsImplementingP.D.
No.851No.X[C],DOLEHandbookonWorkersStatutoryMonetaryBenefits.
th

[159]SeeNo.1,DOLEExplanatoryBulletinontheInclusionofTeachersOverloadPayinthe13 MonthPayDetermination[December03,1993].
55

[160]HondaPhils.,Inc.v.SamahanngMalayangManggagawasaHonda,[G.R.No.145561,June15,2005]SanMiguelCorporation(CagayanCocaCola
Plant)v.Inciong,[G.R.No.L49774,February24,1981,103SCRA139].
[161]No.1,RevisedGuidelinesontheImplementationofthe13thMonthPayLawNo.X[A],DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[162]Ibid.Section1,MemorandumOrderNo.28.
[163]HouseofSaraLeev.Rey,[G.R.No.149013,August31,2006].
[164]BWCOpiniondatedDec.19,1987,BagongPilipinoWorldsFashionWorkersUnion,WorldsFashion,Inc..
[165]Article135,LaborCode.
[166]SeealsoSection13[e],RuleXII,BookIII,RulestoImplementtheLaborCodeGualbertov.MarinduqueMiningIndustrialCorporation,C.A.G.R.No.
52753R,June28,1978.
[167]SeealsoGualbertov.MarinduqueMining&IndustrialCorporation,supraZialcita,v.PhilippineAirlines,supra45AAm.Jur.2d,JobDiscrimination,Sec.
506,p.486.
[168]Section13,RuleXII,BookIIIthereof.
[169]SeealsoSection13,RuleXII,BookIII,RulestoImplementtheLaborCode.
[170]SeealsoSection13,RuleXII,BookIII,RulestoImplementtheLaborCode.
[171]PhilcomEmployeesUnionv.PhilippineGlobalCommunications,G.R.No.144315,July17,2006SeealsoBisigManggagawasaTrycov.NLRC,
No.151309,Oct.15,2008.
[172]Article138,LaborCodeSection4,RuleXII,BookIII,RulestoImplementtheLaborCode.
[173]Section3,R.A.No.7877.
[174]Id..
[175]Id..
[176]Section3[a],RepublicActNo.7877.
[177]Villaramav.NLRCandGoldenDonuts,Inc.,[G.R.No.106341,September2,1994].
[178]Section3[b],Ibid..
[179]Section4,Ibid..
[180]Section5,Ibid..
[181]Section6,Ibid..
[182]Section7,Ibid..
[183]Section7,Ibid..
[184]Section3,Chapter1,DepartmentOrderNo.6504.
[185]Section15,Chapter5,Ibid.Section12A,R.A.No.7610,asaddedbySection3,R.A.No.9231.
[186]Id..
[187]Section6,Chapter2,DepartmentOrderNo.6504Section14,ArticleVIII,R.A.No.7610,asamendedbySection5,R.A.No.9231.
[188]Section4,Chapter2,Ibid..
56

[190]Id..
[191]Section3,Chapter1,Ibid..
[192]Article141,LaborCodeSection1[b],RuleXIII,BookIII,RulestoImplementtheLaborCode.
[193]SSSCircularNo.21VissuedbytheSSSAdministratoronSeptember1,1993.
[194]Article145,LaborCodeSection10,RuleXIII,BookIII,RulestoImplementtheLaborCode.
[195]Article148oftheLaborCode.
[196]Article144,LaborCodeSection8,RuleXIII,BookIII,RulestoImplementtheLaborCodeSSSCircularNo.21VissuedbytheSSSAdministratoron
September1,1993.
[197]Article1695oftheCivilCode.
[198]Article146oftheLaborCode.
[199]SeeSection11,RuleXIII,BookIII,RulestoImplementtheLaborCode.
[200]Article1695oftheCivilCode.
[201]LastparagraphofArticle143oftheLaborCode.
[202]SeealsoSection5,RuleXIII,BookIII,RulestoImplementtheLaborCode.
[203]No.II[2],Ibid..
[204]No.V,Ibid..
[205]HousehelperswereincludedinthecoverageoftheRetirementPayLawbyvirtueofDepartmentOrderNo.20,issuedbySecretaryMa.NievesRoldan
ConfesoronMay31,1994.OnOctober24,1996,SecretaryLeonardoA.QuisumbingissuedhisLaborAdvisoryontheRetirementPayLawwheretheyhave
beenexpresslyandcategoricallyincludedwithinthecoverageofthislaw.
[206]Section16,RuleXIII,BookIIIthereof.
[207]PhilemployServicesandResources,Inc.v.Rodriguez,[G.R.No.152616,March31,2006].
[208]Section2,DepartmentOrderNo.5[RuleXIV,BookIII,RulestoImplementtheLaborCode].
[209]Id..
[210]Id..
[211]Article82,LaborCode
[212]Section2,DepartmentOrderNo.5[RuleXIV,BookIII,RulestoImplementtheLaborCode].
[213]Section2,DepartmentOrderNo.5[RuleXIV,BookIII,RulestoImplementtheLaborCode].
[214]Section11,DepartmentOrderNo.5[RuleXIV,BookIII,RulestoImplementtheLaborCode].
[215]Section6,Ibid..
[216]Section13,DepartmentOrderNo.5[RuleXIV,BookIII,RulestoImplementtheLaborCode].
[217]Section8,Ibid..
[218]Section28,RuleVI,BookII,Ibid..
[219]Underthe2004TESDARevisedGuidelinesintheImplementationofApprenticeshipandLearnershipPrograms.
57

[220]No.1.2.,TESDACircularNo.16,Seriesof2004,datedAugust12,2004.
[221]DOLECircularNo.2,Seriesof2006,[AmendingCertainProvisionsofDepartmentOrderNo.6804]issuedonAugust11,2006byformerDOLE
Secretary(nowAssociateJusticeoftheSupremeCourt)ArturoD.Brion
[222]SeealsoSection2,RuleVII,BookII,RulestoImplementtheLaborCode.
[223]No.3.7.,Ibid..
[224]SeeNo.3.10ofTESDACircularNo.16,Seriesof2004andDOLECircularNo.2,Seriesof2006.
[225] Section 29, Rule VI, Book II, Ibid. Section 5, Republic Act No. 6640 Section 10, Rules Implementing Republic Act No. 6640 Section 10, Rules
ImplementingRepublicActNo.6727No.I[H],DOLEHandbookonWorkersStatutoryMonetaryBenefitsNo.3.8.,TESDACircularNo.16,Seriesof2004,
datedAugust12,2004[RevisedGuidelinesintheImplementationofApprenticeshipandLearnershipPrograms].
[226]UnderR.A.No.7277,otherwiseknownastheMagnaCartaforDisabledPersons[nowknownasMagnaCartaforPersonswithDisability].
[227]Section5,Chapter1,TitleII,RepublicActNo.7277.
[228]Section6,Chapter1,TitleII,Ibid..
[229]Section9,Chapter1,TitleII,Ibid..
[230]Section10,Chapter1,TitleII,Ibid..
[231]Section7,ChapterI,TitleIIthereof.
[232]Article80[b],LaborCodeSection5,RepublicActNo.6640Section10,RulesImplementingRepublicActNo.6640Section10,RulesImplementing
RepublicActNo.6727No.I[H],DOLEHandbookonWorkersStatutoryMonetaryBenefits.
[233]Section5,Chapter1,TitleIIofR.A.No.7277.
[234]SeealsoSection8,RuleII,ImplementingRulesofWageOrderNo.NCR14issuedonJune18,2010.
[235]Article124,LaborCodeasamendedbySection3,RepublicActNo.6727Section10,RulesImplementingRepublicActNo.6727Section5,Republic
Act No. 6640 Section 10, Rules Implementing Republic Act No. 6640 [applying by analogy similar provisions applicable to apprenticeship and learnership
agreementsmentionedtherein].
[236]Section32,ChapterI,TitleIII,Ibid..
[237]Section8[a],Chapter1,TitleII,Ibid..
[238]Section8[b],Chapter1,TitleII,Ibid.
[239]Section8[c],Chapter1,TitleII,Ibid..

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