LABOR LAW Parties enjoined not to act oppressively
against each other or impair the
WHAT IS LABOR?
Refers to physical or mental exertion
necessary to produce goods.
In a broader concept, it may include
labor force who are employed or those
who are able and willing to work but are
temporarily or involuntarily unemployed.
physical toil although it does not
necessarily exclude the application of
skill, thus there is skilled and unskilled
labor
WHAT IS LABOR LAW?
Includes all the rules of law governing
the conditions under which persons may
work under the control of other person
called employers.
consists of statutes, regulations and
jurisprudence
governing the relations between capital
and labor
by providing for certain employment
standards and a legal framework
for negotiating, adjusting and
administering those standards and other
incidents of
employment.
WHAT IS THE ELEMENTS OF EMPLOYER-
EMPLOYEE RELATIONSHIIP?
1. the selection and engagement of the
employee
2. the payment of wages
3. the power of dismissal
4. the employers power to control the
employee with respect to the means
and methods by which the work is to be
accomplished (Control Test)
Most important index of existence of E-E
Relationship
Employer
One for whom employees work in
consideration of wages or salaries.
Natural or Juridical person.
Employee
One who works for an employer; a
person working for salary or wages;
any person in the service of another
under a contract for hire, express or
implied, oral or written. Always a
natural person.
Employee-Employer Relationship
Contractual in character; by
agreement.
Impressed with public interest; labor
contracts yield to the common good.
Subject to special laws on labor unions,
collective bargaining, strikes and
lockouts, closed shop, wages and
working conditions, hours of labor and
similar subjects.
interest or convenience of the public.
In person, involves the rendition of
personal service of employee; partakes
of master and servant relationship.
WHAT IS LABOR STANDARDS?
It prescribes the terms and conditions of
employment as affecting wages or monetary
benefits, hours of work, cost of living
allowances, and occupational health, safety
and welfare of the workers.
which sets out the minimum terms,
conditions, and
benefits of employment that employers must
provide or comply with and to which
employees are entitled as a matter of legal
right.
WHAT IS LABOR LEGISLATION?
To protect the worker from the mighty
and to correct the injustices that are
inherent in employer-employee
relationship.
To provide set of restrictions upon the
worker in his relationship with the
employer and vice versa to maintain
industrial peace and harmony; thereby
promoting industrial democracy.
Limitations of Labor Legislation
1. Non-impairment of contracts
2. Non-delegation of legislative power
3. Constitutional provision against
involuntary servitude
4.Equal protection of the law
DIFFERENTIATE LABOR STANDARDS
FROM LABOR LEGISLATION.
Labor legislation consists of statutes,
regulations, and jurisprudence governing the
relations between capital and labor, by
providing for certain employment standards
and a legal framework for negotiating,
adjusting and administering those standards
and other incidents of employment.
This definition provides the divisions of labor
legislation i.e. labor standards and labor
relations. These two are not mutually
exclusive but rather, they complement each
other.
For academic purposes though, distinction
should be made between labor standards and
labor relations. But in actuality, they overlap
each other such that the grievance machinery
is a labor relations matter but very often the
subject of the complaint is labor standards
such as unpaid overtime work or a disciplinary
action.
Social legislation: provides particular kinds
of
protection or benefits to society or segments
thereof
in furtherance of social justice.
Labor laws are necessarily social legislation.
But to
differentiate, labor laws directly affect
employment
while social legislation governs effects of
employment.
Labor laws are social legislation but not all
social
legislation are labor laws.
WHAT ARE THE SOURCES OF LABOE LAW?
1. Primary
a. Philippine Constitution
b. Legislations passed by Congress
c. Decisions of the Supreme Court
d. Implementing Rules and Regulations of
DOLE
e. Decisions of quasi-judicial bodies such
as NLRC
f. ILO conventions (International
LaborOrganization)
2. Auxiliary
a. Opinions of the Secretary of Labor
and employment
b. Opinions of the secretary of Justice
c. Reports, debates, hearings made and
conducted by Congress
d. Labor law reviews
e. Labor law and social legislation
textbooks
f. Opinions of legal luminaries
g. Foreign laws and decisions
WHAT ARE THE CONTITUTIONAL
MANDATES REGARDING TO LABOR LAW?
The State shall afford full protection to labor
and this
is found in the 1935, 1973, and 1987
Constitution. The
State affirms labor as a primary social
economic
force thus, it shall protect the right of the
workers
and promote their welfare.
Basic rights of workers guaranteed by the
constitution:
1. Right to organize themselves
2. Conduct collective bargaining or
negotiation with management
3. Engage in peaceful concerted activities,
including to strike in accordance with
law
4. Enjoy security of tenure
5. Work under humane conditions
6. Receive a living wage
7. Participate in policy and decision-
making processes affecting their rights
and benefits as may be provided by law.
(Sec. 3, XIII).
Other provisions in the Constitution:
1. Right to form unions, associations,
societies for purposes not contrary to
law.
2. Right to self-organization shall not be
denied to government employees.
3. Regular farmworkers shall have the
right to own directly or collectively the
lands they till.
4. The State shall by law and for common
good, undertake in cooperation with the
private sector a continuing program of
urban land reform and housing.
5. The State shall protect working women
by providing safe and healthful working
conditions taking into account their
maternal functions.
6. Labor is entitled to seats allotted to
party list representatives
7. The State shall promote
industrialization and full employment
based on sound agricultural
development and agrarian reform.
8. Congress shall create an agency to
promote the viability and growth of
cooperatives.
9. The Govt shall increase salary scales of
the other officials and employees of the
National Government.
10.Career civil service employees shall be
entitled to appropriate separation pay
and to retirement and other benefits
under existing laws.
The 1987 Philippine Constitution, the
supreme law of the land, mandates the
protection of labor and the promotion of
their welfare. It provides the
fundamental labor standards and labor
relations rights of the employees. The
constitutional provisions on labor are
provided under Articles II, III, IX-B, and
XIII as follows:
Article II, DECLARATION OF
PRINCIPLES AND STATE POLICIES
Section 9. The State shall promote a
just and dynamic social order that will
ensure the prosperity and
independence of the nation and free the
people from poverty through policies
that provide adequate social services,
promote full employment, a rising
standard of living, and an improved
quality of life for all.
Section 10. The State shall promote
social justice in all phases of national
development.
Section 18. The State affirms labor as
a primary social economic force. It shall
 protect the rights of workers and
promote their welfare.
Section 20. The State recognizes the
indispensable role of the private sector,
encourages private enterprise, and
provides incentives to needed
investments.
ARTICLE III, BILL OF RIGHTS
Section 1. No person shall be deprived
of life, liberty, or property without due
process of law, nor shall any person be
denied the equal protection of the laws.
Section 8. The right of the people,
including those employed in the public
and private sectors, to form unions,
associations, or societies for purposes
not contrary to law shall not be
abridged.
Article IX-B, THE CIVIL SERVICE
COMMISSION
Section 2.
3. No officer or employee of the civil
service shall be removed or suspended
except for cause provided by law.
5. The right to self-organization shall
not be denied to government
employees.
6. Temporary employees of the
Government shall be given such
protection as may be provided by law.
ARTICLE XIII, SOCIAL JUSTICE AND
HUMAN RIGHTS
Section 3. The State shall afford full
protection to labor, local and overseas,
organized and unorganized, and promote full
employment and equality of employment
opportunities for all.
It shall guarantee the rights of all workers to
self-organization, collective bargaining and
negotiations, and peaceful concerted
activities, including the right to strike in
accordance with law. They shall be entitled to
security of tenure, humane conditions of work,
and a living wage. They shall also participate
in policy and decision-making processes
affecting their rights and benefits as may be
provided by law.
The State shall promote the principle of
shared responsibility between workers and
employers and the preferential use of
voluntary modes in settling disputes, including
conciliation, and shall enforce their mutual
compliance therewith to foster industrial
peace.
The State shall regulate the relations between
workers and employers, recognizing the right
of labor to its just share in the fruits of
production and the right of enterprises to
reasonable returns to investments, and to
expansion and growth.
Note: State may regulate the relations
between workers and employers. However,
this does not include the workers right to
participate in the management of the
enterprise; this is employers prerogative.
Section 14. The State shall protect working
women by providing safe and healthful
working conditions, taking into account their
maternal functions, and such facilities and
opportunities that will enhance their welfare
and enable them to realize their full potential
in the service of the nation.
WHAT ARE THE PRINCIPLE OF LIBERAL
CONSTRUCTION RULE?
LIBERAL CONSTRUCTION PRINCIPLE: The
cases should be determined on the merits in
order to give the parties full opportunity to
ventilate their causes and defenses, rather
than on technicalities or procedural
imperfections. In that way, the ends of justice
would be served better. Rules of procedure are
mere tools designed to expedite the decision
or resolution of cases and other matters
pending in court. A strict and rigid application
of rules, resulting in technicalities that tend to
frustrate rather than promote substantial
justice, must be avoided. In fact, Section 6 of
Rule 1 states that the Rules shall be liberally
construed in order to promote their objective
of ensuring the just, speedy and inexpensive
disposition of every action and proceeding
(DEVELOPMENT BANK OF THE PHILIPPINES vs.
FAMILY FOODS MANUFACTURING CO. LTD. G.R.
No. 180458, July 30, 2009, Third Division,
Nachura, J.).
Corollary to this, it is settled that liberal
construction of the rules may be invoked in
situations where there may be some
excusable formal deficiency or error in a
pleading, provided that the same does not
subvert the essence of the proceeding and
connotes at least a reasonable attempt at
compliance with the rules. After all, rules of
procedure are not to be applied in a very rigid,
technical sense; they are used only to help
secure substantial justice (MEDISERV, INC. vs.
COURT OF APPEALS, G.R. No. 161368, April 5,
2010, First Division, Villarama, Jr., J.)
Thus, in Republic vs. Jennifer
Cagandahan, G.R. No. 166676, September 12,
2008, 2nd Division, the Supreme Court agreed
that there is substantial compliance with Rule
108 (which requires the civil registrar and all
persons who have or claim any interest which
would be affected by the Petition shall be
made parties to the proceedings) when
respondent furnished a copy of the petition to
the local civil registrar. The High Court
invoked Section 6, Rule 1 of the Rules of Court
which states that courts shall construe the
Rules liberally to promote their objectives of
securing to the parties a just, speedy and
inexpensive disposition of the matters brought
before it.
WHAT IS COMPASSIONATE JUSTICE?
Disregarding of rigid rules and giving due
weight to all the equities of the case.
Relevant in dismissal of workers
social justice policy mandates a pay for regular work hours. If they work over
compassionate attitude toward working
class in its relation to management. In
calling for the protection to labor, the
Constitution does not condone
wrongdoing by the employee, it
nevertheless urges a moderation of the
sanctions that may be applied to him in
the light of the many disadvantages that
weigh heavily on him like an albatross on
his neck.
WHAT ARE THE RIGHT OF EMPLOYEES?
Constitutional Rights of Workers
1. Right to self-organization
2. Right to collective bargaining
3. Right to security of tenure
4. Right to just an humane conditions of
work
5. Right to collective negotiations
6. Right to peaceful concerted activities
7. Right to strike
8. Right to a living wage
9. Right to participate in policy and
decision making
10. Right to just share in the fruits of
production
Rights of employees
The Bureau of Working Conditions, a staff
department of the Department of Labor and
Employment, compiled a list of Basic Rights
that every worker is entitled to. These rights
ensure the safety and health of all workers.
1. EQUAL WORK OPPORTUNITIES FOR ALL
The State shall protect labor, promote
full
employment, provide equal work opportunity
regardless of gender, race, or creed; and
regulate relations between employees and
employers.
2. SECURITY OF TENURE
Every employee shall be assured
security of tenure. No employee can be
dismissed from work except for a just or
authorized cause, and only after due process.
Just cause refers to any wrongdoing
committed by an employee; authorized cause
refers to economic circumstances that are not
the employees fault.
3. WORK DAYS AND WORK HOURS
An employee must be paid their wages
for all hours worked. If their work hours fall
between 10:00 p.m. and 6:00 a.m., they are
entitled to night shift pay in addition to their
eight hours a day, they are entitled to
overtime pay.
4. WEEKLY REST DAY
A day-off of 24 consecutive hours after
six (6) days of work should be scheduled by
the employer upon consultation with the
workers.
5. WAGE AND WAGE-RELATED BENEFITS
Wage is the amount paid to an
employee in exchange for to the service that
they rendered to their employer. Wage may be
fixed for a given period.
6. PAYMENT OF WAGES
Wages should be paid directly to the
employee in cash, legal tender, or through a
bank.
Wages shall be given not less than once
every two weeks or twice within a month at
intervals not exceeding 16 days.
7. FEMALE EMPLOYEES
Women are prohibited from engaging in
night work unless the work is allowed by the
following rules: industrial undertakings from
10 p.m. to 6 a.m., commercial/non-industrial
undertakings from 12 m.n. to 6 a.m., or
agricultural takings at night provided that she
has had nine consecutive hours of rest.
Welfare facilities, such as separate
dressing rooms and lavatories, must be
installed at the workplace.
8. EMPLOYMENT OF CHILDREN
The minimum employment age is 15
years of age. Any worker below 15 years of
age should be directly under the sole
responsibility of parents or guardians provided
that work does not interfere with the childs
schooling or development.
The minimum age of employment is 18
years for hazardous jobs, and 15 years for
non-hazardous jobs. Hazardous jobs are
9. SAFE WORKING CONDITIONS
 Employers must provide workers with a syndicate when it is committed by a group
every kind of on-the-job protection against of three (3) or more persons conspiring or
injury, sickness or death through safe and confederating with one another. Illegal
healthful working conditions. recruitment is committed in a large scale if
committed against three (3) or more persons.
10. RIGHTS TO SELF-ORGANIZATION AND
COLLECTIVE BARGAINING 1. SIMPLE or LICENSEE illegal
Every worker has the right to self- recruitment committed by a licensee or
organization, i.e., to form or to join any holder of authority against one or two
legitimate workers union, free from persons only.
interference of their employer or the
government. All workers may join a union for 2. NON-LICENSEE illegal recruitment
the purpose of collective bargaining and is committed by any person who is neither a
eligible for union membership on the first day licensee nor a holder of authority.
of their employment. Non-licensee or non-holder of authority
[It is a] corporation or entity which has not
Collective bargaining is a process been issued a valid license or authority to
between two parties, namely the employer engage in recruitment and placement by the
and the union, where the terms and conditions Secretary of Labor and Employment, or whose
of employment are fixed and agreed upon. In license or authority has been suspended,
collective bargaining, the two parties also revoked, or cancelled by the POEA or
decide upon a method for resolving Secretary of Labor.
grievances. Collective bargaining results in a
contract called a Collective Bargaining 3. SYNDICATED illegal recruitment
Agreement (CBA). committed out by a group of three (3) or more
persons in conspiracy or
WHAT ARE THE ELEMENTS OF ILLEGAL confederation with one another;
RECRUITMENT?
The crime of illegal recruitment is 4. LARGE SCALE or QUALIFIED illegal
committed when two elements concur, recruitment committed against three (3) or
namely: more persons, individually or as a group
1. the offender has no valid license despite the lack of the necessary
or authority required by law to license from the POEA.
enable one to lawfully engage in
recruitment and placement of WHAT ARE THE PRINCIPLE OF SOCIAL
workers; and JUSTICE?
2. he undertakes either any activity
within the meaning of Social justice is neither communism,
"recruitment and placement" nor despotism, nor atomism, nor
defined under Article 13 (b), or anarchy, but the humanization of laws
any prohibited practices and the equalization of social and
enumerated under Article 34 of economic forces by the State so that
the Labor Code. justice in its rational and objectively
secular conception may at least be
TWO KINDS OF ILLEGAL RECRUITMENT approximated. Social justice means the
The types of illegal recruitment under promotion of the welfare of all the
the Labor Code are the following: people, the adoption by the Government
of measures calculated to ensure
1. Simple illegal recruitment economic stability of all the component
2. Illegal recruitment considered as an elements of society, through the
offense involving economic sabotage maintenance of a proper economic and
which can be further classified to: social equilibrium in the interrelations of
a. Illegal recruitment committed by a the members of the community,
syndicate; constitutionally, through the adoption of
b. Illegal recruitment committed in a measures legally justifiable, or extra
large scale. constitutionally,
through the exercise of powers
Simple illegal recruitment or illegal underlying the existence of all
recruitment covers any recruitment activity by governments on the time-honored
non-licenses or non-holders of authority. principle of salus populi est supremo
It includes the commission of prohibited lex. (Calalang vs. Williams)
practices by licenses or holders of authority.
- It guarantees equality of opportunity,
Illegal recruitment when committed by a equality of political
syndicate or in large scale shall be rights, equality before the law, equality of
considered an offense involving economic values given and
sabotage. Illegal recruitment is committed by
received, equitable sharing of the social and
material goods and basis of efforts exerted in
their production. Does not champion division
of property or equality of economic status.
Cannot be used to trample rights of others.
- Not intended to countenance the
wrongdoings by the
underprivileged. May mitigate penalty but not
condone
offense.
ARTICLE 1. NAME OF DECREE. This Decree
shall be known as the "Labor Code of the
Philippines".
The Labor Code is defined as the charter of
human rights and bill of obligations for every
worker
ARTICLE 2. DATE OF EFFECTIVITY. This
Code shall take effect six (6) months after its
promulgation.
The Labor Code took effect on November 1,
1974 after the lapse of 6-month transition
period.
ARTICLE 3. DECLARATION OF BASIC
POLICY. The State shall afford protection to
labor, promote full employment, ensure equal
work opportunities regardless of sex, race or
creed and regulate the relations between
workers and employers. The State shall
assure the rights of workers to self-
organization, collective bargaining, security of
tenure, and just and humane conditions of
work.
ARTICLE 4. CONSTRUCTION IN FAVOR OF
LABOR. All doubts in the implementation and
interpretation of the provisions of this Code,
including its implementing rules and
regulations, shall be resolved in favor of labor.
ARTICLE 5. RULES AND REGULATIONS.
The Department of Labor and other
government agencies charged with the
administration and enforcement of this Code
or any of its parts shall promulgate the
necessary implementing rules and
regulations. Such rules and regulations shall
become effective fifteen (15) days after
announcement of their adoption in
newspapers of general circulation.
Implementing Agencies
Department of Labor and Employment
National Labor Relations Commission
Philippine Overseas Employment
Administration
National Wages and Productivity
Commission
Employees Compensation Commission
Social Security Commission
Overseas Workers Welfare
Administration
Government Services and Insurance
System
ARTICLE 6. APPLICABILITY. All rights and
benefits granted to workers under this Code
shall, except as may otherwise be provided
herein, apply alike to all workers, whether
agricultural or non-agricultural. (As amended
by Presidential Decree No. 570-A, November
1, 1974)
Four-Fold Test/ Economic Reality Test
1. Manner of selection and engagement
of the putative employee
2. Mode of payment of wages
3. Presence or absence of the power of
dismissal
4. Presence or absence of power to
control the putative employees
conduct
Hiring by competent persons
a. If it is done by an agent with actual
authority
b. If it is done by an agent with
apparent authority
c. If it is done without authority, but
subsequently ratified either expressly or
impliedly
Most Decisive Control Test
An employment relation obtains
where work is performed or services rendered
under the control and supervision of the party
contracting for the service, not only as to
result of the work but also the manner and
details of performance.
Power of control refers merely to the
existence and not the exercise thereof.
ARTICLE 18. BAN ON DIRECT-HIRING. No
employer may hire a Filipino worker for
overseas employment except through the
Boards and entities authorized by the
Secretary of Labor. Direct-hiring by members
of the diplomatic corps, international
organizations and such other employers as
may be allowed by the Secretary of Labor is
exempted from this provision.
GENERAL RULE: No employer may hire a
Filipino worker for overseas employment.
EXCEPTION:
a) diplomatic corps
b) international organizations
 c) other employees allowed by
Secretary of Labor and Employment
EXCEPTION TO THE EXCEPTION:
Name Hire a worker who is able to secure
contract for employment overseas without the
assistance or participation of any agency.
However, he should still undergo
processing by the POEA
ARTICLE 22. MANDATORY REMITTANCE
OF FOREIGN EXCHANGE EARNINGS. It
shall be mandatory for all Filipino workers
abroad to remit a portion of their foreign
exchange earnings to their families,
dependents, and/or beneficiaries in the
country in accordance with rules and
regulations prescribed by the Secretary of
Labor
GENERAL RULE: It is mandatory for all
Filipino workers to remit a portion of their
foreign exchange earnings to their families,
dependents, and/or beneficiaries in the
country through BSP or DOLE authorized
agents
EXCEPTION:
Remittance is not mandatory in the following
instance:
(a) Where the workers immediate
family members, dependents, or beneficiaries
are residing with him abroad;
(b) Filipino servicemen working in the
U.S. military installations;
(c) Immigrants and Filipino professionals
and employees working with the United
Nations agencies or specialized bodies.
ARTICLE 27. CITIZENSHIP REQUIREMENT.
Only Filipino citizens or corporations,
partnerships or entities at least seventy-five
percent (75%) of the authorized and voting
capital stock of which is owned and controlled
by Filipino citizens shall be permitted to
participate in the recruitment and placement
of workers, locally or overseas.
ARTICLE 34. PROHIBITED PRACTICES. It
shall be unlawful for any individual, entity,
licensee, or holder of authority:
(a) To charge or accept, directly or
indirectly, any amount greater than that
specified in the schedule of allowable fees
prescribed by the Secretary of Labor, or to
make a worker pay any amount greater than
that actually received by him as a loan or
advance;
(b) To furnish or publish any false notice
or information or document in relation to
recruitment or employment;
(c) To give any false notice, testimony,
information or document or commit any act of
misrepresentation for the purpose of securing
a license or authority under this Code.
(d) To induce or attempt to induce a
worker already employed to quit his
employment in order to offer him to another
unless the transfer is designed to liberate the
worker from oppressive terms and conditions
of employment;
(e) To influence or to attempt to
influence any person or entity not to employ
any worker who has not applied for
employment through his agency;
(f) To engage in the recruitment or
placement of workers in jobs harmful to public
health or morality or to the dignity of the
Republic of the Philippines;
(g) To obstruct or attempt to obstruct
inspection by the Secretary of Labor or by his
duly authorized representatives;
(h) To fail to file reports on the status of
employment, placement vacancies,
remittance of foreign exchange earnings,
separation from jobs, departures and such
other matters or information as may be
required by the Secretary of Labor.
(i) To substitute or alter employment
contracts approved and verified by the
Department of Labor from the time of actual
signing thereof by the parties up to and
including the periods of expiration of the
same without the approval of the Secretary of
Labor;
(j) To become an officer or member of
the Board of any corporation engaged in
travel agency or to be engaged directly or
indirectly in the management of a travel
agency; and
(k) To withhold or deny travel
documents from applicant workers before
departure for monetary or financial
considerations other than those authorized
under this Code and its implementing rules
and regulations
MNEMONICS:
CAFF-IndIE-OFF-SOW
CA Charge or Accept
F Furnish or publish
F False notice
Ind Induce or attempt to induce
I Influence or attempt to influence
E Engage
O Obstruct or attempt to obstruct
FF Fail to File
S Substitute or alter
O Officer or member
W Withhold or deny
ARTICLE 37. VISITORIAL POWER. The
Secretary of Labor or his duly authorized
representatives may, at any time, inspect the
premises, books of accounts and records of
any person or entity covered by this Title,
require it to submit reports regularly on
prescribed forms, and act on violation of any
provisions of this Title.
ARTICLE 38. ILLEGAL RECRUITMENT.
(a) Any recruitment activities, including
the prohibited practices enumerated under
Article 34 of this Code, to be undertaken by
non-licensees or non-holders of authority,
shall be deemed illegal and punishable under
Article 39 of this Code. The Department of
Labor and Employment or any law
enforcement officer may initiate complaints
under this Article.
(b) Illegal recruitment when committed
by a syndicate or in large scale shall be
considered an offense involving economic
sabotage and shall be penalized in accordance
with Article 39 hereof
Illegal recruitment is deemed committed by a
syndicate if carried out by a group of three (3)
or more persons conspiring and/or
confederating with one another in carrying out
any unlawful or illegal transaction, enterprise
or scheme defined under the first paragraph
hereof. Illegal recruitment is deemed
committed in large scale if committed against
three (3) or more persons individually or as a
group.
(c) The Secretary of Labor and
Employment or his duly authorized
representatives shall have the power to cause
the arrest and detention of such non-licensee
or non-holder of authority if after investigation
it is determined that his activities constitute a
danger to national security and public order or
will lead to further exploitation of jobseekers.
The Secretary shall order the search of the
office or premises and seizure of documents,
paraphernalia, properties and other
implements used in illegal recruitment
activities and the closure of companies,
establishments and entities found to be
engaged in the recruitment of workers for
overseas employment, without having been
licensed or authorized to do so. Declared
unconstitutional in Salazar v. Achacoso,
183 SCRA 145.
ARTICLE 40. EMPLOYMENT PERMIT OF
NONRESIDENT ALIENS. Any alien seeking
admission to the Philippines for employment
purposes and any domestic or foreign
employer who desires to engage an alien for
employment in the Philippines shall obtain an
employment permit from the Department of
Labor.
The employment permit may be issued to a
nonresident alien or to the applicant employer
after a determination of the non-availability of
a person in the Philippines who is competent,
able and willing at the time of application to
perform the services for which the alien is
desired.
For an enterprise registered in preferred areas
of investments, said employment permit may
be issued upon recommendation of the
government agency charged with the
supervision of said registered enterprise.
Aliens exempted from securing Alien
Employment Permit
(a) All members of diplomatic services
and foreign government officials accredited by
and with reciprocity arrangement with the
Philippine government;
(b) Officers and staff of international
organizations of which the Philippine
government is a member, and their legitimate
spouses desiring to work in the Philippines;
(c) Foreign nationals elected as
members of Governing Board who do not
occupy any other position, but have only
voting rights in the corporation;
(d) All foreign nationals granted
exemption by law;
(e) Owners and representative of
foreign principals, whose companies are
accredited by the POEA, who come to the
Philippines for a limited period solely for the
purpose of interviewing Filipino applicants for
employment abroad;
(f) Foreign nationals who come to the
Philippines to teach, present, and/or conduct
research studies in universities and colleges
as visiting, exchange or adjunct professors
under formal agreements between the
universities or colleges in the Philippines and
foreign universities or colleges or between the
Philippine government; provided that
exemption is on reciprocal basis;
(g) Resident foreign nationals.
Penalty: P10,000 for every year of fraction
thereof