1) Labor Standards

2) Prepared by JRCM

a) Hours of Work

i) Coverage/Exclusions (Art 82, LC)

(1) Coverage – It shall apply to all employees in all establishments and undertakings
whether for profit or not.
(2) Exclusions – Government employees, managerial employees, field personnel, members
of the family of the employer who are dependent on him for support, domestic helpers,
persons in the personal service of another, and workers who are paid by results as
determined by the Secretary of Labor in appropriate regulations.

ii) Normal Hours of work – it shall not exceed eight(8) hours.

(1) Compressed work week – refers to one where the normal workweek is reduced to
less than six(6) days but the total number of work-hours of 48n hours per week
shall remain. The normal work day is increased to more than eight hours but not to
exceed twelve hours, without corresponding overtime premium. (DOLE Dep.
Advisory No. 2 Series of 2009)

iii) Meal Break – Every employer shall give his employees, regardless of sex, not less than
one(1)hour time-off for regular meals. The eight-hour work period does not include the
meal break. Note: Change in the work schedule as valid exercise of management
prerogative.
(i) A shorter meal period of not less than twenty minutes may be given by the
employer and credited as compensable hours of the employee:
1. Where the work is non-manual work in nature or does not involve
strenuous physical exertion
2. Where the establishment regularly operates not less than sixteen hours
a day
3. In case of actual or impending emergencies or there is urgent work to be
performed on machineries, equipment or installations
4. Where the work is necessary to prevent serious loss of perishable goods.
(ii) Rest periods or Coffee breaks – shall be considered compensable time if the
break runs from 5 minutes to 20 minutes only.

iv) Waiting Time – The rule on waiting time spent by an employee to be considered
working time are as follows:
(1) If waiting is an integral part of his work
(2) The employee is required or engaged by the employer to wait.

v) Overtime work, Overtime pay

 (1) Overtime work – work may be performed beyond eight hours a day provided the
employee is paid for the such work(overtime).
(2) Overtime pay – It refers to additional compensation for work performed beyond
eight hours a day. It equivalent to his regular wage plus at least twenty-five percent
(25%) thereof. If performed beyond eight hours during holiday or rest day, it shall
be paid in additional compensation equivalent to the rate of the first eight hours on
a holiday or rest day plus at least thirty percent (30%) thereof.
(3) Excluded: (refer to Sec 2 Rule 1, Omnibus Rules Implementing Labor Code)
(a) Government employees
(b) Managerial employees: if they meet all conditions stated: (refer to Sec 2 Rule 1,
Omnibus Rules Implementing Labor Code)
(c) Officers or member of managerial staff
(d) Domestic servants and persons in the personal service of another
(e) Workers who are paid by results
(f) Non-agricultural field personnel
(4) Computation:
(a) On an ordinary day: Hourly Rate x 1.25
(b) On a rest day or special day: Hourly Rate x 1.69 or (Hourly Rate x 1.3 +
0.3(Hourly Rate x 1.3))
(c) On a rest day falling on a special day: Hourly Rate x 1.95 or [(Hourly Rate x
1.5 + 0.3(Hourly Rate x 1.5)]
(d) On a regular holiday: Hourly Rate x 2.6 or [(Hourly Rate x 2 + 0.3(Hourly Rate
x 2)]
(e) On a rest day falling on a regular holiday: Hourly Rate x 3.38 or [(Hourly Rate
x 2.6 + 0.3(Hourly Rate x 2.6)]
vi) Night Work, Night Shift Differential
(1) Night work – Work performed between ten o’clock in the evening and six o’clock in
the morning.
(2) Night Shift Differential – the additional compensation of ten percent (10%) of an
employee’s regular wage for each hour of work performed between 10PM to 6AM.
(3) Exclusion – This Rule shall apply to all employees except:
(a) Those of the government and any of its political subdivisions, including
government-owned and/or controlled corporations;
(b) Those of retail and service establishments regularly employing not more than
five (5) workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of this Code;
(e) Field personnel and other employees whose time and performance is
unsupervised by the employer including those who are engaged on task or
contract basis, purely commission basis, or those who are paid a fixed amount
for performing work irrespective of the time consumed in the performance
thereof.
(4) Computation:
 (a) On an ordinary day: Hourly Rate x 1.10
(b) On a rest day: Hourly Rate x 1.43 or [(Hourly Rate x 1.3 + 0.1(Hourly Rate x
1.3)]
(c) On a special day: Hourly Rate x 1.43 or [(Hourly Rate x 1.3 + 0.1(Hourly Rate x
1.3)]
(d) On a regular holiday: Hourly Rate x 2.2 or [(Hourly Rate x 2 + 0.1(Hourly Rate
x 2)]

vii) Part-time work - A single, regular or voluntary form of employment with hours of
work substantially shorter than those considered as normal in the establishment.
(International Labor Organization)
(1) This excludes those forms of employment which, although referred to as part-time
work, are in particular, irregular, temporary or intermittent employment, or in cases
where hours of work have been temporarily reduced for economic, technical or
structural reasons.
(2) The wage and benefits of part-time worker are in proportion to the number of hours
worked.

viii) Contract for Piece work (Art. 1713 to 1731, Civil Code)
(1) Piece Worker - Philosophy underlying the exclusion of piece workers from the 8-
hour law is that said workers are paid depending upon the work they do
irrespective of the amount of time employed in doing said work. [Red v. Coconut
Products Ltd., v. CIR (1966)]

b) WAGES
i) Wage vs Salary
(1) Wages and salary are in essence synonymous. [Songco v. NLRC (1990)]
3) Wage 4) Salary
5) Paid for skilled or unskilled manual 6) Paid to white collar workers and
labor denote a higher grade of
employment
7) Not subject to execution, 8) Not exempt from execution,
garnishment or attachment except garnishment or attachment
for debts related to necessities

i) Minimum Wage - Statutory minimum wage is the lowest wage rate fixed by law that an
ER can pay his workers. [IRR, RA 6727, (o)]
(1) Coverage: The wage increases prescribed under Wage Orders apply to all private
sector workers and employees receiving the daily minimum wage rates or those
receiving up to a certain daily wage ceiling, where applicable, regardless of their
 position, designation, or status, and irrespective of the method by which their wages
are paid.
(2) Exceptions:
(a) Domestic Helpers/kasambahay [RA 10361]
(b) Workers of registered barangay microbusiness enterprise with Certificates of
Authority issued by the Office of the Municipal or City Treasurer. [RA 9178]
(c) Learners [RA 602]
(d) Apprentices [RA 602]
(3) Basis: a The basis of the minimum wage rates prescribed by law shall be the normal
working hours, which shall not exceed 8 hours a day. [Sec 7, IRR of RA 6727]

ii) Minimum Wage of:

(1) Workers paid by results - All workers paid by result, including those who are paid
on piece-work, takay, pakyaw or task basis, shall receive not less than the
prescribed wage rates per eight (8) hours of work a day, or a proportion thereof for
working less than eight (8) hours. [Art. 124, LC]
(2) Apprentices and Learners - Wages of apprentices and learners shall in no case be
less than 75% of the applicable minimum wage rates. [Art. 61 & 75, LC]
(a) Note: Learners employed in piece or incentive-rate jobs during the training
period shall be paid in full for the work done. [Art. 76, LC]
(b) The Secretary of Labor and Employment may authorize the hiring of apprentices
without compensation whose training on the job is required by the school or
training program curriculum or as requisite for graduation or board
examination. [Art. 72, LC]
(3) Persons with Disability - A qualified disabled employee shall be subject to the
same terms and conditions of employment and the same compensation, privileges,
benefits, fringe benefits or allowances as qualified able-bodied persons. [Sec 5, RA
7277, The Magna Carta for Disabled Persons]

iii) Commissions - Commissions have been defined as the recompense, compensation or

reward of an agent, salesman, executor, trustee, receiver, factor, broker or bailee, when
the same is calculated as a percentage on the amount of his transactions or on the profit
to the principal. [Philippine Duplicator’s, Inc. v. NLRC (1993)]
(1) As part of Min Wage - The Court held that the definition of “wage” under Art. 97 (f)
of the LC explicitly includes commissions as part of wages. While commissions are,
indeed, incentives or forms of encouragement to inspire employees to put a little
more industry on the jobs particularly assigned to them, still these commissions are
direct remunerations for services rendered.
(2) Likewise, there is no law mandating that commissions be paid only after the
minimum wage has been paid to the employee. Verily, the establishment of a
minimum wage only sets a floor below which an employee’s remuneration cannot
fall, not that commissions are excluded from wages in determining compliance with
the minimum wage law. [Iran v. NLRC (1998)]
iv) Deductions From Wages
(1) General Rule - No employer, in his own behalf or in behalf of any person, shall
make any deduction from the wages of his employees. (Art. 113, LC)
(2) Exceptions –
(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 check-off
has been recognized by the employer or authorized in writing by the individual
worker concerned; and
(c) In cases where the employer is authorized by law or regulations issued by the
Secretary of Labor and Employment (Art. 113, LC), such as:
(i) Employee debt to employer is due and demandable (Art. 1706, CC);
(ii) Attachment or execution in cases of debts incurred for necessities: food,
shelter, clothing, medical attendance (Art. 1708, CC);
(iii) Withholding tax;
(iv) Deductions of a legally established cooperative;
(v) Payment to 3rd parties upon written authority by employee;
(vi) Deductions for loss or damage;
(vii) SSS, PhilHealth, Pag-IBIG premiums;
(viii) Deduction for value meals and other facilities.
(d) It shall be unlawful to make any deduction from the wages of any employee for
the benefit of the employer as consideration of a promise of employment or
retention in employment. [Art. 117, LC] or to retaliate against the employee who
filed a complaint. [Art. 118, LC]

v) Non-Diminution of Benefits
(a) General Rule: There is a prohibition against elimination or diminution of
benefits [Art. 100]
(i) No wage order issued by any regional board shall provide for wage rates
lower than the statutory minimum wage rates prescribed by Congress. [Art.
127, as amended by Republic Act No. 6727, June 9, 1989]
(b) Requisites:
(i) Ripened company policy: Benefit is founded on a policy which has ripened
into a practice over a long period
(ii) Practice is consistent and deliberate and
(iii) Not due to error in the construction or application of a doubtful or difficult
question of law. [Globe Mackay Cable vs. NLRC, 1988]
(iv) The diminution or discontinuance is done unilaterally by the employer.
(c) When Not Applicable: At least one of the requisites is absent.

vi) Facilities vs Supplements

 (1) The distinction between facilities and supplement is relevant because the former is
wage-deductible while the latter is not. Simply put, a wage includes facilities. [Art.
97, LC)
(2) Criterion: a In determining whether a privilege is a facility, the criterion is not so
much its kind but it’s PURPOSE [Millares v NLRC & PICOP, 1999]
(3) Facilities are items of expense necessary for the laborer’s and his family’s existence
and subsistence. [States Marine Corp. v. Cebu Seamen's Assoc., Inc., 1963]
(4) Distinction:
9) FACILITIES 10) SUPPLEMENTS
11) What it is
12) Articles or services/items of 13) Extra remuneration or
expense benefits/articles or services/tools
of the trade
14) Who benefits
15) For the benefit of the employee 16) For the benefit or convenience of
and his family; for their existence the employer
and subsistence
17) Deductible from Wages
18) Yes – Part of wage so it is 19) No – It is independent of the wage
deductible so it is not deductible
(1) Requirements for deducting value of Facilities
(a) Mere availment is not sufficient to allow deductions from employees’ wages.
Before the value of facilities can be deducted from the employees’ wages, the
following requisites must all be attendant:
(i) Proof must be shown that such facilities are customarily furnished by the
trade;
(ii) The provision of deductible facilities must be voluntarily accepted in writing
by the employee; and
(iii) Facilities must be charged at reasonable value.[SLL International Cable
Specialists v. NLRC, 2011]

ii) Wage Distortion/Rectification

(1) A situation where an increase in prescribed wage rates results in the elimination or
severe contraction of intentional quantitative differences in wage or salary rates
between and among employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure based on skills, length
of service, or other logical bases of differentiation [Art. 124, LC]
(2) Elements of Wage Distortion:
(a) Existing hierarchy of positions with corresponding salary rates;
(b) A significant change in the salary rate of a lower pay class without a concomitant
increase in the salary rate of a higher one;
(c) The elimination of the distinction between the two levels; and
(d) The existence of the distortion in the same region of the country. [Prubankers
Assn. v. Prudential Bank and Co. (1999)]
(3) How to Resolve:
 (a) Organized Establishment:
(i) Employer and the union shall negotiate to correct the distortions.
(ii) Disputes shall be resolved through the grievance procedure.
(iii) If still unresolved, voluntary arbitration.
1. Grievance Procedure (under the CBA)  if unresolved, VOLUNTARY
arbitration
(b) Unorganized Establishment:
(i) ERs and Employees shall endeavor to correct such distortions.
(ii) Disputes shall be settled through the National Conciliation and Mediation
Board.
(iii) If still unresolved after 10 calendar days of conciliation, it shall be referred
to the appropriate branch of the NLRC – compulsory arbitration
1. Both the employer and employee cannot use economic weapons.
(iv) Employer cannot declare a lock-out; Employee cannot declare a strike
because the law has provided for a procedure for settling
(v) The salary or wage differential does not need to be maintained. [National
Federation of Labor v. NLRC, 1994]
(vi) National Conciliation and Mediation Board  if unresolved, COMPULSORY
arbitration by the NLRC.

iii) Divisor to determine Daily Rate

(1) Suggested Formula: Estimated Equivalent Monthly Rate (EEMR) = (Applicable
Daily Rate x Days/Year) / 12
(2) Monthly Paid Employees: Those who are paid everyday of the month, including
unworked rest days, special days, and regular days.
(a) 365 days/year
(b) 296 days – ordinary working days
(c) 52 days – rest days
(d) 10 days – regular holidays
(e) 7 days – special holidays
(3) Daily Paid Employees: Those who are paid on the days actually worked and on
unworked holidays.
(a) For those who are required to work every day including Sundays or rest days,
special days and regular holidays:
(i) 394.1 days/ year
(ii) 296 days – ordinary working
(iii) 20 days – 10 regular holidays x 200% or 52 rest days x 130%
(iv) 67.60 days – 7 special days x 130%
(v) 9.1 days
(b) For those who do not work and are not considered paid on Sundays or rest days:
(i) 313 days/year
(ii) 296 days – ordinary working
(iii) 12 days – regular holidays
 (iv) 5 days – special days (if considered paid; if actually worked, this is
equivalent to 6.5 days)
(c) For those who do not work and are not considered paid on Saturdays, and
Sundays or rest days:
(i) 278 days/year
(ii) 261 days – ordinary working
(iii) 10 days – regular holidays
(iv) 7 days – special days (if considered paid; if actually worked, this is
equivalent to 6.5 days)

20) REST DAYS

i) Weekly Rest Day: It shall be the duty of every employer, whether operating for profit
or not, to provide each of his employees a rest period of not less than twenty-four (24)
consecutive hours after every six (6) consecutive normal work days. [Art. 91 (a)]
ii) Preference of the Employee: The employer shall determine and schedule the weekly
rest day of his employees subject to collective bargaining agreement and to such rules
and regulations as the Secretary of Labor and Employment may provide. However, the
employer shall respect the preference of employees as to their weekly rest day when
such preference is based on religious grounds. [Art. 94 (b)]
iii) Emergency Rest Days:
(1) In case of actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life
and property, or imminent danger to public safety;
(2) In cases of urgent work to be performed on the machinery, equipment, or
installation, to avoid serious loss which the employer would otherwise suffer;
(3) In the event of abnormal pressure of work due to special circumstances, where the
employer cannot ordinarily be expected to resort to other measures;
(4) To prevent loss or damage to perishable goods;
(5) Where the nature of the work requires continuous operations and the stoppage of
work may result in irreparable injury or loss to the employer; and
(6) Under other circumstances analogous or similar to the foregoing as determined by
the Secretary of Labor and Employment. [Art. 92, LC]

21) HOLIDAY PAY/PREMIUM PAY

a) It is a one-day pay given by law to an employee even if he does not work on a regular
holiday.
b) Coverage: All Employees
c) Eclusions:
i) Those of the government and any of the political subdivision, including government-
owned and controlled corporation;
ii) Those of retail and service establishments regularly employing less than 10 workers;
iii) Domestic helpers and persons in the personal service of another;
 iv) Managerial employees and officers or members of the managerial staff as defined in
Book III
v) Field personnel and other employees whose time and performance is unsupervised by
the employer including those who are engaged on task or contract basis, purely
commission basis, or those who are paid a fixed amount for performing work
irrespective of the time consumed in the performance thereof. [Sec. 1, Rule IV of the
IRR]
d) Retail Establishment: One principally engaged in the sale of goods to end-users for
personal or household use.
e) Service Establishment: one principally engaged in the sale of service to individuals for
their own or household use and is generally recognized as such. [RA 6727/The Wage
Rationalization Act, IRR]
f) Holiday Pay Computation: (Art. 94 Labor Code, Book III, Rule IV of IRR, RA 9424 and
DOLE Memorandum Circular 1 Series of 2004)
i) General Rule: An employer may require an employee to work on any holiday but such
employee shall be paid a compensation equivalent to twice his regular rate. [Art. 94(b)]
Work on any Regular Holiday Not
Computation
Exceeding 8 Hours
Work on any regular holiday, if it exceeds 8 200% of regular daily wage (for the 1st 8
hours/overtime hours) + 30% of hourly rate on said day
Work on any regular holiday which falls on
200% of regular daily wage + 30% of such
the scheduled rest day, not exceeding 8
amount
hours
Work on any regular holiday which falls on Regular holiday-onrest day rate (200% of
scheduled rest day, if it exceeds 8 regular daily wage plus 30% of such
hours/overtime amount) + 30% of hourly rate on said day
Work on special holiday not exceeding 8
Regular daily wage + 30% thereof
hours
Work on special holiday Regular daily wage + 50% thereto
ii) DOLE Memo Circular 1-04: A “special holiday”/”special day” includes the National
Special Days, and declared special days such as Special Nonworking Holiday, Special
Public Holiday and Special National Holiday. Such days are entitled to the rates
prescribed above. These days are not the same as a special working holiday.
iii) Special Working Holiday: It is considered an ordinary working day, so there is no
premium pay.
iv) Double Holiday Pay: In case where two holidays fall on the same day:
(1) If unworked: 200% of basic wage.
(2) If worked: 300% of basic wage.
v) Non-working/scheduled rest day: The employee shall not be deemed on leave of
absence on that day, in which case he shall be entitled to holiday pay if he worked on the
day immediately preceding the non-working day or rest day.
g) Teachers, Piece Workers, Seafarers, Seasonal Workers, Etc.
i) Private school teachers, including faculty members of colleges and universities, may not
be paid for the regular holidays during semestral vacations. They shall, however, be
paid for the regular holidays during Christmas vacation;
ii) Where a covered employee, is paid by results or output, such as payment on piece work,
his holiday pay shall not be less than his average daily earnings for the last seven (7)
actual working days preceding the regular holiday; Provided, However, that in no case
shall the holiday pay be less than the applicable statutory minimum wage rate.
iii) Seasonal workers may not be paid the required holiday pay during off-season when
they are not at work
iv) Workers who have no regular working days shall be entitled to the benefits provided in
this Rule. [Book III, Rule IV, Sec. 8, IRR]
v) Holiday Pay of Hourly-Paid Teachers: They are not entitled to payment of holiday pay
because they are paid only for work actually done.
(1) Since regular holidays are known to both the school and faculty members as “no
class day”; certainly the latter do not expect payment for said unworked holidays.
(2) They are entitled to their hourly rate on days declared as special holidays. When a
special public holiday is declared, the faculty member paid by the hour is deprived
of expected income, and it does not matter that the school calendar is extended in
view of the days or hours lost, for their income that could be earned from other
sources is lost during the extended days.
(3) Similarly, when classes are called off or shortened on account of typhoons, floods,
rallies, and the like, these faculty members must likewise be paid, whether or not
extensions are ordered. [Jose Rizal College v. NLRC, (1987)]
vi) Piece Workers: Philosophy underlying the exclusion of piece workers from the 8-hour
law is that said workers are paid depending upon the work they do irrespective of the
amount of time employed in doing said work. [Red v. Coconut Products Ltd., v. CIR
(1966)]
vii) Seafarers: Any hours of work or duty including hours of watch-keeping performed by
the seafarer on designated rest days and holidays shall be paid rest day or holiday pay.
(Section 11.C, Standard Terms and Conditions Governing the Employment of Filipino
Seafarers on Board Ocean-Going Vessels)
viii) Seasonal Workers: Seasonal workers who do not work during offseason are not
entitled to pay for the regular holidays occurring during their off-season. Workers
assigned to “skeleton crews” that work during the off-season have the right to be paid
on regular holidays falling in that duration.
ix) Premium Pay: refers to the additional compensation for work performed within 8
hours on non-work days, such as rest day and special days.
x) Coverage:
(1) GR: All Employees.
(2) XPN:
(a) Those of the government and any of the political subdivision, including
government-owned and controlled corporations
(b) Managerial employees as defined in Book III;
(c) Househelpers and persons in the personal service of another;
(d) Workers who are paid by results, including those who are paid on piece rate,
takay, pakyaw, or task basis, and other noontime work, if their output rates are
 in accordance with the standards prescribed in the regulations, or where such
rates have been fixed by the Secretary of Labor and Employment;
(e) Field personnel, if they regularly perform their duties away from the principal
or branch office or place of business of the ER and whose actual hours of work in
the filed cannot be determined with reasonable certainty.
xi) Premium Rates:
When Work Performed Premium Pay
On scheduled rest day 30% of regular wage
On Sunday ONLY IF this is the
30% of regular wage
ESTABLISHED rest day
On Sunday and holidays, when no regular
30% of regular wage
work and rest days
On any special holiday/special day 30% of regular wage
On any special holiday/special day falling
50% of regular wage
on scheduled rest day
On a regular holiday falling on a rest day 230% of regular wage

22) LEAVES
a) Service Incentive Leave
i) Coverage: Every employee who has rendered at least one year of service shall be
entitled to a yearly service incentive leave of five days with pay.[Art. 95(a), LC.]
ii) Excluded:
(1) Those of the government and any of its political subdivisions, including GOCCs;
(2) Domestic helpers and persons in the personal service of another;
(3) Managerial employees as defined in Book 3 of this Code;
(4) Field personnel and other employees whose performance is unsupervised by the
employer including those who are engaged on task or contract basis, purely
commission basis, or those who are paid a fixed amount for performing work
irrespective of the time consumed in the performance thereof;
(5) Those who are already enjoying the benefit herein provided;
(6) Those enjoying vacation leave with pay of at least 5 days;
(7) Those employed in establishments regularly employing less than 10 employees.
[Book 3, Rule 5, Sec. 1, IRR]
iii) Piece-rate employees are entitled to service incentive leave pay. The Court looked at
several factors which led them to conclude that petitioners, although compensated on a
per piece basis, were regular employees of. [Labor Congress of the Phils., v. NLRC
(1998)]
iv) Teachers of private school on contract basis are entitled to service incentive leave.
[Cebu Institute of Technology v. Ople (1987)]
v) Meaning of “1 year of service”: "At least one year service" shall mean service for not
less than 12 months, whether continuous or broken, reckoned from the date the
employee started working, including authorized absences and paid regular holidays
unless the working days in the establishment as a matter of practice or policy, or that
 provided in the employment contract is less than 12 months, in which case said period
shall be considered as one year. [Book III, Rule V, Sec. 3, IRR.]
vi) Commutable Nature of the Benefit: The service incentive leave shall be commutable
to its money equivalent if not used or exhausted at the end of the year. [Book 3, Rule 5,
Sec. 5]

b) Maternity Leave
i) Coverage: Every pregnant woman in the private sector, whether married or unmarried,
is entitled to the maternity leave benefits. This is applicable to both childbirth and
miscarriage.
ii) Requisites:
(1) Employment: A female employee employed at the time of delivery, miscarriage or
abortion.
(2) Contribution: who has paid at least 3 monthly contributions in the 12-month
period immediately preceding the semester of her childbirth, or miscarriage.
(3) Notice: employee notified employer of her pregnancy and the probable date of her
childbirth, which notice shall be transmitted to the SSS in accordance with the rules
and regulations it may provide.
iii) Benefit received: A daily maternity benefit equivalent to 100% of her average daily
salary credit for:
(1) 60 days for normal delivery
(2) 78 days for caesarean delivery
(a) Note: This benefit shall NOT be included in the computation of 13th month pay
as it is granted to an employee in lieu of wage which is the basis for computing
13th month.
iv) Only 4 months leave Available
(1) The maternity benefits provided under the Social Security Law shall be paid only for
the first four (4) deliveries or miscarriages

c) Paternity Leave
i) Coverage: Paternity leave is granted to all married male employees in the private and
public sectors, regardless of their employment status (e.g. probationary, regular,
contractual, project basis). The purpose of this benefit is to allow the husband to lend
support to his wife during her period of recovery and/or in nursing her newborn child.
[Sec. 3, RA 8187]
ii) Benefit: It shall be for 7 calendar days, with full pay, consisting of basic salary and
mandatory allowances fixed by the Regional Wage Board, if any, provided that his pay
shall not be less than the mandated minimum wage. [Sec. 2, RA 8187]
(1) It shall apply to the first 4 deliveries of the employee’s lawful wife with whom he is
cohabiting.
(2) Cohabiting means the obligation of the husband and wife to live together. [Sec. 1,
IRR, RA 8187] If the spouses are not physically living together because of the
 workstation or occupation, the male employee is still entitled to the paternity leave
benefit.
iii) Usage of Benefit: Usage of the leave shall be after the delivery, without prejudice to an
employer’s policy of allowing the employee to avail of the benefit before or during the
delivery, provided that the total number of days shall not be more than 7 days for each
covered delivery. [Sec. 5, IRR, RA 8187]
iv) Conditions for entitlement:
(1) He is married;
(2) An employee at the time of the delivery of his child;
(3) Cohabiting with his spouse at the time that she gives birth or suffers miscarriage;
(4) Applied for paternity leave with his employer within a reasonable period of time
from the expected date of delivery by his pregnant spouse, or within such period as
may be provided by the company rules and regulations or CBA;
(5) His wife has given birth or suffers miscarriage.
v) In case of miscarriage, prior application for paternity leave is not required.
vi) Non-conversion to Cash: In the event that the paternity leave is not availed of, it shall
not be convertible to cash and shall not be cumulative. [Sec. 7, IRR, RA 8187]

d) PARENTAL LEAVE
i) Leave benefits granted to a solo parent to enable him/her to perform parental duties
and responsibilities where physical presence is required. [Sec. 3 (d), RA 8972]
ii) Coverage: Any solo parent or individual who is left alone with the responsibility of
parenthood due to:
(1) Giving birth as a result of rape or and other crimes against chastity even without a
final conviction of the offender: Provided, That the mother keeps and raises the
child;
(2) Death of spouse;
(3) Spouse is detained or is serving sentence for a criminal conviction for at least one
(1) year;
(4) Physical and/or mental incapacity of spouse as certified by a public medical
practitioner;
(5) Legal separation or de facto separation from spouse for at least one (1) year:
Provided, that he/she is entrusted with the custody of the children;
(6) Declaration of nullity or annulment of marriage as decreed by a court or by a
church: Provided, that he/she is entrusted with the custody of the children;
(7) Abandonment of spouse for at least one (1) year;
(8) Unmarried father/mother who has preferred to keep and rear his/her
child/children, instead of having others care for them or give them up to a welfare
institution;
(9) Any other person who solely provides parental care and support to a child or
children: Provided, that he/she is duly licensed as a foster parent by the Department
of Social Welfare and Development (DSWD) or duly appointed legal guardian by the
court; and
 (10) Any family member who assumes the responsibility of head of family as a result of
the death, abandonment, disappearance, or prolonged absence of the parents or solo
parent for at least one (1) year. [Sec. 3 (a), RA 8972]
iii) Conditions for Entitlement
(1) A solo parent employee shall be entitled to the parental leave under the following
conditions:
(a) He/she has rendered at least one (1) year of service, whether continuous or
broken;
(b) He/she has notified his/her employer that he/she will avail himself/herself of it,
within a reasonable period of time; and
(c) He/she has presented to his/her employer a Solo Parent Identification Card,
which may be obtained from the DSWD office of the city or municipality where
he/she resides. [Sec 19, Art. V, IRR, RA 8972]
iv) Availment
(1) The parental leave is in addition to leave privileges under existing laws with full pay,
consisting of basic salary and mandatory allowances. It shall not be more than seven
(7) working days every year. [Sec. 8, RA 8972]
v) Grant of Flexible Work Schedule
(1) The employer shall provide for a flexible working schedule for solo parents:
Provided, That the same shall not affect individual and company productivity:
Provided, further, That any employer may request exemption from the above
requirements from the DOLE on certain meritorious grounds. [Sec. 6, RA 8972]
vi) Protection against Work Discrimination
(1) No employer shall discriminate against any solo parent employee with respect to
terms and conditions of employment on account of his/her status. [Sec. 7, RA 8972]
vii) Termination of the Benefit
(1) A change in the status or circumstance of the parent claiming the benefit under the
law, such that he/she is no longer left alone with the responsibility of parenthood,
shall terminate his/her eligibility for these benefits. [Sec. 3 (a), RA 8972]

e) LEAVES FOR VICTIMS OF VIOLENCE AGAINST WOMEN

i) Coverage and Purpose
(1) VAWC leave is granted to women employees who are victims of violence, as defined
in RA 9262. The leave benefit covers the days that the women employee has to
attend to medical or legal concerns.
ii) Definition of Terms
(1) Violence against women and their children – refers to any act or a series of acts
committed by any person against a woman who is his wife, former wife, or against a
woman with whom the person has or had a sexual or dating relationship, or with
whom he has a common child, or against her child whether legitimate or
illegitimate, within or without the family abode, which result in or is likely to result
in physical, sexual, psychological harm or suffering, or economic abuse including
 threats of such acts, battery, assault, coercion, harassment or arbitrary deprivation
of liberty.
iii) VAWC includes, but is not limited to, the following acts:
(1) “Physical Violence" refers to acts that include bodily or physical harm;
(2) "Sexual violence" refers to an act which is sexual in nature, committed against a
woman or her child. It includes, but is not limited to:
(a) Rape, sexual harassment, acts of lasciviousness, treating a woman or her child
as a sex object, making demeaning and sexually suggestive remarks, physically
attacking the sexual parts of the victim's body, forcing her/him to watch
obscene publications and indecent shows or forcing the woman or her child to
do indecent acts and/or make films thereof, forcing the wife and mistress/lover
to live in the conjugal home or sleep together in the same room with the abuser;
(b) Acts causing or attempting to cause the victim to engage in any sexual activity by
force, threat of force, physical or other harm or threat of physical or other harm
or coercion;
(c) Prostituting the woman or child.
(3) "Psychological violence" refers to acts or omissions causing or likely to cause mental
or emotional suffering of the victim such as but not limited to intimidation,
harassment, stalking, damage to property, public ridicule or humiliation, repeated
verbal abuse and mental infidelity. It includes causing or allowing the victim to
witness the physical, sexual or psychological abuse of a member of the family to
which the victim belongs, or to witness pornography in any form or to witness
abusive injury to pets or to unlawful or unwanted deprivation of the right to custody
and/or visitation of common children.
(4) "Economic abuse" refers to acts thatmake or attempt to make a woman financially
dependent which includes, but is not limited to the following:
(a) Withdrawal of financial support or preventing the victim from engaging in any
legitimate profession, occupation, business or activity, except in cases wherein
the other spouse/partner objects on valid, serious and moral grounds as defined
in Article 73 of the Family Code;
(b) Deprivation or threat of deprivation of financial resources and the right to the
use and enjoyment of the conjugal, community or property owned in common;
(c) Destroying household property;
(d) Controlling the victims' own money or properties or solely controlling the
conjugal money or properties. [Sec.3, RA 9262]
iv) Benefit: In addition to other paid leaves under existing labor laws, company policies,
and/or CBA, the qualified victim-employee shall be entitled to a leave of up to 10 days
with full pay, consisting of basic salary and mandatory allowances fixed by the Regional
Wage Board, if any. [Sec. 45, RA 9262]
v) Requirement
(a) To be entitled to the leave benefit, the only requirement is for the victim-
employee to present to her employer a certification from the barangay chairman
 or barangay councilor or prosecutor or the Clerk of Court, as the case may be,
that an action relative to the matter is pending.
vi) Usage of the Benefit
(1) The usage of the 10-day leave shall be at the option of the woman employee. In the
event that the leave benefit is not availed of, it shall not be convertible into cash and
shall not be cumulative.
(2) A victim of VAWC who is employed shall be entitled to a paid leave of up to ten (10)
days in addition to other paid leaves under the Labor Code and Civil Service Rules
and Regulations and other existing laws and company policies:
(a) At any time during the application of any protection order, investigation,
prosecution and/or trial of the criminal case, extendible when the necessity
arises as specified in the protection order.
(b) Upon the issuance of the Punong Barangay/kagawad or prosecutor or the Clerk
of Court, as the case may be, of a certification (at no cost) to the woman that
such an action is pending, and this is all that is required for the employer to
comply with the 10- day paid leave.
(c) For government employees, in addition to the aforementioned certification, the
employee concerned must file an application for leave citing as basis R.A. 9262.
[Sec. 42, IRR, RA 8972]

f) SPECIAL LEAVE BENEFITS FOR WOMEN

i) Special Leave Benefit for Women
(1) A female employee’s leave entitlement of two (2) months with full pay from her
employer based on her gross monthly compensation following surgery caused by
gynecological disorders, provided that she has rendered continuous aggregate
employment service of at least six (6) months for the last 12 months.
ii) Gynecological Disorders
(1) Disorders that would require surgical procedures such as, but not limited to,
dilatation and curettage and those involving female reproductive organs such as the
vagina, cervix, uterus, fallopian tubes, ovaries, breast, adnexa and pelvic floor, as
certified by a competent physician. It shall also include hysterectomy, ovariectomy,
and mastectomy.
iii) Gross Monthly Compensation
(1) The monthly basic pay plus mandatory allowances fixed by the regional wage
boards. [Sec. 7, Rule II, IRR, RA 9710]
iv) Basic Requirement
(1) The woman employee should have been with the company for 12 months prior to
surgery. An aggregate service of at least six (6) months within the said 12-month
period is sufficient to entitle her to avail of the special leave benefit. Employment
service includes absences with pay such as use of other mandated leaves, company-
granted leaves and maternity leaves
v) Competent Physician
 (1) A medical doctor preferably specializing in gynecological disorders or is in the
position to determine the period of recuperation of the woman employee. [Sec. 1,
DO 112, as amended]
vi) Conditions for Entitlement
(1) Any female employee, regardless of age and civil status, shall be entitled to a special
leave benefit, provided she has complied with the following conditions:
(a) She has rendered at least 6 months continuous aggregate employment service
for the last 12 months prior to surgery;
(b) She has filed an application for special leave (3) She has undergone surgery due
to gynecological disorders as certified by a competent physician. [Sec. 2, DO 112]
vii) Application for Special Leave
(1) Application before surgery
(a) The employee shall file her application for leave with her employer within a
reasonable period of time from the expected date of surgery, or within such
period as may be provided by company rules and regulations or by CBA.
(2) Application after surgery
(a) Prior application for leave shall not be necessary in cases requiring emergency
surgical procedure, provided that the employer shall be notified verbally or in
written form within a reasonable period of time and provided further that after
the surgery or appropriate recuperating period, the female employee shall
immediately file her application using the prescribed form. [Sec. 3, DO 112]
viii) Period of Entitlement
(1) The 2 months special leave is the maximum period of leave with pay that a woman
employee may avail of under RA 9710.
(2) For purposes of determining the period of leave with pay that will be allowed to a
female employee, the certification of a competent physician as to the required
period of recuperation shall be controlling. [Sec. 4, DO 112, as amended]
ix) Availment
(1) The special leave shall be granted to the qualified employee after she has undergone
surgery. [Sec. 5, DO 112, as amended]
(2) A woman employee can avail of the SLB for every instance of surgery due to
gynecological disorder for a maximum total period of 2 months per year. [Sec. 6, DO
112, as amended]
x) Special Leave Benefit vis-à-vis SSS Sickness Benefit
(1) The SLB is different from the SSS sickness benefit. The former is granted by the
employer in accordance with RA 9710.
(2) It is granted to a woman employee who has undergone surgery due to gynecological
disorder. The SSS sickness benefit, on the other hand, is administered and given by
the SSS in accordance with RA 1161 as amended by RA 8282. [Sec. 7, DO 112, as
amended]
xi) Special Leave Benefit vis-à-vis Existing Statutory Leaves
(1) The SLB cannot be taken from existing statutory leaves (i.e. 5-day SIL, leave for
victims of VAWC, Parental leave for solo parents). The grant of SLB under the law is
 in recognition of the fact that patients with gynecological disorder needing surgery
require a longer period of recovery. The benefit is considered an addition to the
leave benefits granted under existing laws and should be added on top of said
statutory leave entitlements.
(2) If the SLB has already been exhausted, the company leave and other mandated leave
benefits may be availed of by the woman employee. [Sec. 8, DO 112, as amended]
xii) Special Leave Benefit vis-à-vis Maternity Leave Benefit
(1) Where the woman employee had undergone surgery due to gynecological disorder
during her maternity leave, she is entitled only to the difference between the SLB
and maternity leave benefit. [Sec. 9, DO 112, as amended]
xiii) Crediting of Existing or Similar Benefits
(1) If there are existing or similar benefits under a company policy, practice or CBA
providing similar or equal benefits to what is mandated by law, the same shall be
considered as compliance, unless the company policy, practice or CBA provides
otherwise.
(2) In the event the company policy, practice or CBA provides lesser benefits, the
company shall grant the difference.
(3) More liberal existing or similar benefits cannot be withdrawn or reduced by reason
of this law. The term “similar or equal benefits” refers to leave benefits which are of
the same nature and purpose as that of the SLB. [Sec. 10, DO 112, as amended]
xiv) Mode of Payment
(1) The SLB is a leave privilege. The woman employee shall not report for work for the
duration of the leave but she will still receive her salary covering said period. The
employer, in its discretion, may allow said employee to receive her pay for the
period covered by the approved leave before or during the surgery.
(2) The computation of her “pay” shall be based on her prevailing salary at the time of
the surgery. [Sec. 11, DO 112, as amended]
xv) Non-Commutation of the Benefit
(1) The SLB shall be non-cumulative and nonconvertible to cash unless otherwise
provided by a CBA. [Sec. 12, DO 112, as amended]

g) SERVICE CHARGE
i) Coverage (Employers [Sec 1, Rule VI, Book 3, IRR])
(1) This rule shall apply only to establishments which collect service charges such as:
(a) Hotels, restaurants, lodging houses, night clubs, cocktail lounge, massage clinics,
bars, casinos and gambling houses;
(b) Similar enterprises including those entities operating primarily as private
subsidiaries of the Government
ii) Employees [Sec 2, Rule VI, Book 3, IRR]
(1) Shall apply to ALL employees of covered employers
(a) Regardless of their positions, designations, or employment status, and
(b) Irrespective of the method by which their wages are paid.
iii) Exceptions
 (1) Managerial employees – one who is vested with powers or prerogatives to lay down
and execute managerial policies and/or hire, transfer, suspend, layoff, recall,
discharge, assign or discipline employees or to effectively recommend such
managerial actions. [Sec 2, Rule VI, Book 3, IRR]
iv) Distribution
v) Service charges are distributed in accordance with the following percentage of sharing:
(1) Eighty-five percent (85%) for the employees to be distributed equally among them;
(2) Fifteen percent (15%) for the disposition of management to answer for losses and
breakages and, at the discretion of the management for distribution to managerial
employees. [Sec 3, Rule VI, Book 3, IRR]
(a) The shares shall be distributed to employees not less than once every 2 weeks
or twice a month at intervals not exceeding 16 days. [Sec 4, Rule VI, Book 3, IRR]
(b) Notes:
(i) The P2,000.00 salary ceiling for entitlement thereto is no longer applicable.
(ii) [The employees’] right to their shares in the service charges collected by
[the employer] is distinct and separate from their right to ECOLA;
gratification by the [employer] of one does not result in the satisfaction of
the other. [Philippine Hoteliers, Inc., Dusit Hotel-Nikko v. NUWHRAIN-APL-
IUF-Dusit Hotel Nikko Chapter, G.R. No. 181972 (2009)]
vi) Integration
(1) In case service charge is abolished, the shares of covered employees shall be
considered integrated in their wages. [Art 96, LC]
(2) The basis of the amount to be integrated shall be the average monthly share of each
employee for the past twelve (12) months immediately preceding the abolition of
withdrawal of the charges. [Sec. 5, Rule VI, Book 3, IRR]
vii) In Relation to Collective Bargaining Agreements and Employer-Employee
Agreements
(1) Nothing in the Rules shall prevent the employer and employee from entering into
any agreement with terms more favorable to the employees than those granted
therein, or be used to diminish any benefit granted to the employees under existing
laws, agreement AND voluntary employer practice. [Sec. 6, Rule VI, Book 3, IRR]
(2) The rule is without prejudice to existing, future collective bargaining agreements.
[Sec. 7, Rule VI, Book 3, IRR]
viii) Synthesis of the Rules
(1) Service charges must be pooled;
(a) Where a restaurant or similar establishment does not collect service charges but
has a practice or policy of monitoring and pooling tips given voluntarily by its
customers to its employees, the pooled tips should be monitored, accounted for
and distributed in the same manner as the services charges. [DOLE Handbook
on Workers’ Statutory Monetary Benefits, 2014ed.]
(b) The amount collected is divided between the company (15%) and employees
(85%);
(c) It shall be given twice a month with intervals of not more than 16 days;
 (d) If discontinued, removed, or stopped, the average share of the employees of
their service charge or tips shall be integrated with their basic wage.

h) THIRTEENTH MONTH PAY

i) Rationale
(1) To further protect the level of real wages from the ravage of world-wide inflation;
(2) There had been no increase in the legal minimum wage rates since 1970;
(3) The Christmas season is an opportune time for society to show its concern for the
plight of the working masses so they may properly celebrate Christmas and New
Year.
ii) Coverage
(1) General Rule: ALL EMPLOYERS are hereby required to pay all their rank and file
employees a 13th month pay not later than Dec 24 of every year, Provided that they
have worked for at least one (1) month during a calendar year.
iii) Exempted Employers:
(1) Government, its political subdivisions, including GOCCs except those operating
essentially as private subsidiaries of the Government;
(2) Employers already paying their employees a 13th month pay or more in a calendar
year or its equivalent at the time of this issuance; and
(3) Employers of those who are paid on purely commission, boundary or task basis and
those who are paid a fixed amount for performing specific work, irrespective of the
time consumed in the performance thereof (except those workers who are paid on
piece-rate basis, in which case their employer shall grant them 13th month pay).
iv) Notes:
(1) “Equivalent” includes:
(a) Christmas bonus, mid-year bonus, cash bonuses
(b) and other payments amounting to not less than 1/12 of the basic salary
(c) but shall NOT INCLUDE cash and stock dividends, cost of living allowances and
all other allowances regularly enjoyed by the employee as well a non-monetary
benefits.
v) Workers paid on a piece-rate basis - paid a standard amount for every piece or unit of
work produced that is more or less regularly replicated, without regard to the time
spent in producing the same.
vi) Minimum Amount
(1) 1/12 of the total basic salary earned by an employee within a calendar year
vii) BASE AMOUNT,
(1) General Rule: basic salary shall include:
(a) (1) Cost of living allowances (COLA) integrated into the basic salary of a covered
employee pursuant to EO 178.
(b) (2) All remunerations or earnings paid by this employer for services rendered.
(c) (3) But not the allowances and monetary benefits which are not considered or
integrated as part of the regular or basic salary, such as the cash equivalent of:
(i) Unused vacation and sick leave credits,
 (ii) Overtime,
(iii) Premium,
(iv) Night differential,
(v) Holiday pay and, and
(vi) Cost-of-living allowances.
(2) Exception: From 1975 to 1981, [the employer] had freely, voluntarily and
continuously included in the computation of its employees' thirteenth month pay,
the payments for sick, vacation and maternity leaves, premiums for work done on
rest days and special holidays, and pay for regular holidays. The considerable length
of time the questioned items had been included by [the employer] indicates a
unilateral and voluntary act on its part, sufficient in itself to negate any claim of
mistake.
(a) A company practice favorable to the employees had indeed been established and
the payments made pursuant thereto, ripened into benefits enjoyed by them.
And any benefit and supplement being enjoyed by the employees cannot be
reduced, diminished, discontinued or eliminated by the employer. [Davao Fruits
Corp. v. ALU, G.R. No. 85073 (1993)]
viii) Time of payment
(1) General Rule: paid not later than Dec 24 of each year.
(2) Exception: ER may give to his employees half (½) of the required 13th Month Pay
before the opening of the regular school year and the other half on or before the
24th of December every year.
(a) The frequency of payment of this monetary benefit may be the subject of
agreement between the employer and the recognized CBA of the employees.
ix) 13th Month Pay in Special Cases
(1) Paid by Results: Employees who are paid on piece work basis are, by law, entitled to
the 13th Month Pay. (Revised Guidelines on the Implementation of the 13th Month
Pay Law)
(2) Fixed or Guaranteed Wage: Employees who are paid a fixed or guaranteed wage
plus commission are entitled to 13th month pay (not purely commission); the basis
for computation shall be both their fixed or guaranteed wage and commission.
(Revised Guidelines)
(3) Those with Multiple Employers: Government Employees working part time in a
private enterprise, including private educational institutions, as well as Employees
working in two or more private firms, whether on full or part time bases, are
entitled to the required 13th Month Pay from all their private Employers regardless
of their total earnings from each or all their employers. (Revised Guidelines)
(4) Private School Teachers: Private school teachers, including faculty members of
universities and colleges, are entitled to the required 13th month pay, regardless of
the number of months they teach or are paid within a year, if they have rendered
service for at least one (1) month within a year. (Revised Guidelines)
 (a) Overload pay is NOT included in the computation for 13th month pay; overload
is not overtime as it is additional work done within the normal shift [Letran
Calamba Faculty vs NLRC, G.R. No. 156225 (2008)]
(5) Resigned or Separated Employee: An Employee who has resigned or whose services
were terminated at any time before the time for payment of the 13th month pay is
entitled to this monetary benefit in proportion to the length of time he worked
during the year, reckoned from the time he started working during the calendar
year up to the time of his resignation or termination from service. [Revised
Guidelines]
(6) Terminated Employees: The payment of the 13th month pay may be demanded by
the employee upon the cessation of employer-employee relationship. [Archilles
Manufacturing Corp. vs NLRC, 1995]

i) SEPARATION PAY
i) Separation pay is defined as the amount that an employee receives at the time of his
severance from the service and is designed to provide the employee with the
wherewithal during the period that he is looking for another employment. [A’ Prime
Security Services vs NLRC (1993)

ii) Amount
(1) One-Half (1/2) Month Pay per Year of Service
(a) An employee is entitled to receive separation pay equivalent to ½ month pay for
every year of service, a fraction of at least six (6) months being considered as
 one whole year, if his/her separation from the service is due to any of the
following authorized causes:
(i) Retrenchment to prevent losses (i.e. reduction of personnel effected by
management to prevent losses);
(ii) Closure or cessation of operation of an establishment not due to serious
losses or financial reverses; and,
(iii) When the EE is suffering from a disease not curable within a period of six (6)
months and his/her continued employment is prejudicial to his/her health
or to the health of his/her coemployees In no case will an employee get less
than one (1) month separation pay if the separation is due to the above
stated causes and he/she has served for at least six (6) months. (DOLE
Handbook on Workers’ Statutory Monetary Benefits, 2014 ed.)
iii) One-Month Pay per Year of Service
iv) An employee is entitled to separation pay equivalent to his/her one-month pay for
every year of service, a fraction of at least 6 months being considered as one whole year,
if his/her separation from service is due to any of the following:
(1) Installation by employer of labor-saving devices;
(2) Redundancy, as when the position of the employee has been found to be excessive
or unnecessary in the operation of the enterprise;
(3) Impossible reinstatement of the employee to his/her former position or to a
substantially equivalent position for reasons not attributable to the fault of the
employer, as when the reinstatement ordered by a competent authority cannot be
implemented due to closure of cessation of operations of the
establishment/employer, or the position to which he/she is to be reinstated no
longer exists and there is no substantially equivalent position in the establishment
to which he/she can be assigned. [Gaco vs NLRC (1994)]
v) Notice of Termination
(1) The employer may terminate the employment of any employee due to the above-
mentioned authorized causes by serving a written notice on the employee and the
DOLE through its regional office having jurisdiction over the place of business at
least 1 month before the intended date thereof.
vi) Basis of Separation Pay
(1) The computation of separation pay of an employee shall be based on his/her latest
salary rate. [DOLE Handbook on Workers’ Statutory Monetary Benefits, 2014 ed.]
vii) Inclusion of Regular Allowance in the Computation
(1) In the computation of separation pay, it would be error not to integrate the
allowance with the basic salary. The salary base properly used in computing the
separation pay should include not just the basic salary but also the regular
allowances that an employee has been receiving. [Planters’ Products, Inc. vs NLRC
(1989)]

23) RETIREMENT PAY

a) Definition
 i) Retirement - the result of a bilateral act of the parties, a voluntary agreement between
the employer and the employee whereby the latter, after reaching a certain age agrees
to sever his or her employment with the former ... an employer is free to impose a
retirement age less than 65 for as long as it has the employees’ consent… having
terminated petitioner solely on the basis of a provision of a retirement plan which was
not freely assented to by her, respondent was guilty of illegal dismissal [Jaculbe vs
Silliman University, G.R. No. 156934 (2007)]
b) Retroactive Effect
i) The Court imposed two (2) essential requisites in order that R.A. 7641 may be given
retroactive effect:
(1) the claimant for retirement benefits was still in the employ of the employer at the
time the statute took effect; and
(2) the claimant had complied with the requirements for eligibility for such retirement
benefits under the statute. [Universal Robina Sugar Milling Corp. vs Caballeda, G.R.
No. 156644 (2008)]
c) ELIGIBILITY
i) General Rule: All employees in the private sector, regardless of their position,
designation, or status, and irrespective of the method by which their wages are paid
[Sec. 1, IRR, RA 7641]
ii) Exceptions:
(1) (1) Employees covered by the Civil Service Law;
(2) (2) Domestic helpers and persons in the personal service of another, and
(3) (3) Employees in retail, service and agricultural establishments or operations
regularly employing not more than ten employees [Sec. 2, IRR, RA 7641]
d) Exclusions from coverage
i) R.A. No. 7641, otherwise known as "The Retirement Pay Law," only applies in a situation
where:
(1) there is no collective bargaining agreement or other applicable employment
contract providing for retirement benefits for an employee; OR
(2) there is a collective bargaining agreement or other applicable employment contract
providing for retirement benefits for an employee, but it is below the requirements
set for by law.
ii) The reason for the first situation is to prevent the absurd situation where an employee,
who is otherwise deserving, is denied retirement benefits by the nefarious scheme of
employers in not providing for retirement benefits for their employees. The reason for
the second situation is expressed in the Latin maxim pacta private juri public derogare
non possunt. Private contracts cannot derogate from the public law. [Oxales vs Unilab,
G.R. No. 152991 2008]
e) Age of retirement
i) In the absence of a retirement plan or agreement providing for retirement benefits of
employees in the establishment, an employee upon reaching the age of sixty (60) years
or more, but not beyond sixty-five (65) years which is hereby declared the compulsory
 retirement age (and have served the establishment for at least 5 years). [Sec. 1, IRR, RA
7641]
f) Optional retirement – in the absence of a retirement plan or other applicable agreement
providing for retirement benefits of EEs in an establishment, an EE may retire upon
reaching the age of 60 or more if he has served for at least 5 years in said establishment.
g) Compulsory retirement – in the absence of a retirement plan or other applicable
agreement providing for retirement benefits of EEs in an establishment, an EE shall be
retired at the age of 65 years. [Sec. 4, IRR, RA 7641]
i) Note: For surface mine workers, the optional retirement age is 50, while the mandatory
retirement age is now 60. [Sec. 2, RA 10757]
h) AMOUNT OF RETIREMENT PAY
i) The minimum retirement pay shall be equivalent to one-half (1/2) month salary for
every year of service, a fraction of at least six (6) months being considered as one whole
year.
ii) For the purpose of computing retirement pay, “one-half month salary” shall include all
of the following:
(1) (1) Fifteen (15) days salary based on the latest salary rate;
(2) (2) Cash equivalent of five (5) days of service incentive leave;
(3) (3) One-twelfth (1/12) of the 13th month pay. (1/12 x 365/12 = .083 x 30.41 =
2.52)
iii) Thus, “one-half month salary” is equivalent to 22.5 days. [Capitol Wireless, Inc. vs Sec.
Confessor, 1996; Reyes v NLRC, 2007]
iv) Other benefits may be included in the computation of the retirement pay upon
agreement of the ER and the EE or if provided in the CBA.
i) RETIREMENT BENEFITS OF WORKERS WHO ARE PAID BY RESULTS
i) For covered workers who are paid by result and do not have a fixed monthly salary rate,
the basis for the determination of the salary for 15 days shall be their average daily
salary (ADS). The ADS is derived by dividing the total salary or earning for the last 12
months reckoned from the date of retirement by the number of actual working days in
that particular period, provided that the determination of rates of payment by results
are in accordance with established regulations.
j) RETIREMENT BENEFIT OF PART-TIME WORKERS
i) Part-time workers are also entitled to retirement pay of “one-month salary” for every
year of service under RA 7641 after satisfying the following conditions precedent for
optional retirement:
(1) (a) There’s no retirement plan between the ER and the EE; and,
(2) (b) The EE should have reached the age of 60 years, and should have rendered at
least 5 years of service with the ER.
ii) Applying the foregoing principle, the components of retirement benefit of parttime
workers may likewise be computed at least in proportion to the salary and related
benefits due them. [DOLE Handbook on Workers’ Statutory Monetary Benefits, 2014
ed.]
k) TAXABILITY
i) Any provision of law to the contrary notwithstanding, the retirement benefits received
by officials and employees of private firms, whether individual or corporate , in
accordance with a reasonable private benefit plan maintained by the employer shall be
exempt from all taxes and shall not be liable to attachment, garnishment, levy or seizure
by or under any legal or equitable process whatsoever except to pay a debt of the official
or employee concerned to the private benefit plan or that arising from liability imposed
in a criminal action: Provided, That the retiring official or employee has been in the
service for at least ten (10) years and is not less than fifty years of age at the time of his
retirement: Provided, further, That the benefits granted under this Act shall be availed
of by an official or employee only once; Provided, finally, That in case of separation of an
official or employee from the service of the employer due to death, sickness, or other
physical disability or for any cause beyond the control of the said official or employee,
any amount received by him or by his heirs from the employer as a consequence of such
separation shall likewise be exempt as hereinabove provided.
ii) As used in this Act, the term "reasonable private benefit plan" means a pension, gratuity,
stock bonus or profit sharing plan maintained by an employer for the benefit of some or
all of his officials and employees, wherein contributions are made by such employer or
officials and employees, or both, for the purpose of distributing to such officials and
employees the earnings and principal of the fund thus accumulated, and wherein it is
provided in said plan that at no time shall any part of the corpus or income of the fund
be used for, or be diverted to, any purpose other than for the exclusive benefit of the
said officials and employees.[Sec. 1, RA 4917]
iii) Any provision of law to the contrary notwithstanding, the retirement benefits received
by officials and employees of private firms, whether individual or corporate, in
accordance with a reasonable private benefit plan maintained by the employer
(1) shall be exempt from all taxes and
(2) shall not be liable to attachment, garnishment, levy or seizure by or under any legal
or equitable process whatsoever [Intercontinental Broadcasting Corp. v Amorilla,
2006]
iv) Exception
(1) Except to pay a debt of the official or employee concerned to the private benefit plan
or that arising from liability imposed in a criminal action:
v) Additional conditions
(1) That the retiring official or employee has been in the service of the same employer
for at least ten (10) years and is not less than fifty years of age at the time of his
retirement;
(2) That the retirement benefits shall be availed of by an official or employee only once;
and,
(3) (c) That in case of separation of an official or employee from the service of the
employer due to death, sickness or other physical disability or for any cause beyond
the control of the said official or employee, any amount received by him or by his
heirs from the employer as a consequence of such separation shall likewise be
exempt as hereinabove provided.
24) WOMEN WORKERS
a) 1987 Constitution Art. II, Sec. 14.The State recognizes the role of women in nation building,
and shall ensure the fundamental equality before the law of women and men.
b) 1987 Constitution. Art. XIII, Sec. 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.
c) Omnibus Rules Bk III Rule XII Sec 1. General Statement on Coverage. – This Rule shall apply
to all employers, whether operating for profit or not, including educational, religious and
charitable institutions, except to the Government and to government-owned or controlled
corporations and to employers of household helpers and persons in their personal service
insofar as such workers are concerned.
d) PROVISIONS AGAINST DISCRIMINATION
i) It shall be unlawful for any employer to discriminate against any woman employee with
respect to terms and conditions of employment solely on account of her sex.
ii) The following are acts of discrimination:
(1) Payment of a lesser compensation, including wage, salary or other form of
remuneration and fringe benefits, to a female employees as against a male
employee, for work of equal value; and
(2) Favoring a male employee over a female employee with respect to promotion,
training opportunities, study and scholarship grants solely on account of their sexes.
[Art.133, Labor Code]
e) STIPULATION AGAINST MARRIAGE
(1) It shall be unlawful for an employer to:
(a) require as a condition of employment or continuation of employment that a
woman employee shall not get married, or
(b) stipulate expressly or tacitly that upon getting married a woman employee shall
be deemed resigned or separated or
(c) actually dismiss, discharge, discriminate or otherwise prejudice a woman
employee merely by reason of her marriage. [Art. 134, Labor Code] [Duncan
Assoc of Detailman – PTGWO v Glaxo Wellcome, 2004]
f) PROHIBITED ACTS
i) Art. 154. RA 10151. Coverage. - This chapter shall apply to all persons, who shall be
employed or permitted or suffered to work at night, except those employed in
agriculture, stock raising, fishing, maritime transport and inland navigation, during a
period of not less than seven (7) consecutive hours, including the interval from
midnight to five o'clock in the morning, to be determined by the Secretary of Labor and
Employment, after consulting the workers' representatives/labor organizations and
employers.
(1) Night worker means any employed person whose work requires performance of a
substantial number of hours of night work which exceeds a specified limit. This limit
 shall be fixed by the Secretary of Labor after consulting the workers'
representatives/labor organizations and employers.
ii) Women Night Workers. - Measures shall be taken to ensure that an alternative to night
work is available to women workers who would otherwise be called upon to perform
such work:
(a) Before and after childbirth, for a period of at least sixteen (16) weeks, which
shall be divided between the time before and after childbirth;
(b) For additional periods, in respect of winch a medical certificate IS produced
stating that said additional periods are necessary for the health of the mother or
child:
(i) During pregnancy;
(ii) During a specified time beyond the period, after childbirth is fixed pursuant
to subparagraph (a) above, the length of this shall be determined by the
DOLE after consulting the labor organizations and employers.
(2) During the periods referred to in this article:
(a) A woman worker shall not be dismissed orgiven notice of dismissal, except for
just or authorized causes provided for in this Code that are not connected with
pregnancy, childbirth and childcare responsibilities.
(b) A woman worker shall not lose the benefits regarding her status, seniority, and
access to promotion which may attach to her regular night work position.
iii) Pregnant women and nursing mothers may be allowed to work at night only if a
competent physician, other than the company physician, shall certify their fitness to
render night work, and specify, in the case of pregnant employees, the period of the
pregnancy that they can safely work. The measures referred to in this article may
include transfer to day work where this is possible, the provision of social security
benefits or an extension of maternity leave.
iv) The measures referred to in this article may include transfer to day work where this is
possible, the provision of social security benefits or an extension of maternity leave. The
provisions of this article shall not leave the effect of reducing the protection and
benefits connected with maternity leave under existing laws.[Article 158, RA 10151]

25) ANTI-SEXUAL HARRASMENT ACT [RA 7877 - Anti-Sexual Harassment Act of 1995]
a) Forms of Sexual Harassment
i) Employment or Work Related
(1) The sexual favor is made as a condition
(a) in the hiring or in the employment, re-employment or continued employment of
said individual or
(b) in granting said individual favorable compensation, terms, conditions,
promotions, or privileges, or
(c) in the refusal to grant the sexual favor results in limiting, segregating or
classifying the EE which in any way would discriminate, deprive or diminish
employment opportunities or otherwise adversely affect said employee;
(2) The above acts would either:
 (a) impair the employee’s rights or privileges under existing labor laws; or
(b) result in an intimidating, hostile, or offensive environment for the employee.
ii) Education or Training environment.
(1) In an education or training environment, sexual harassment is committed:
(a) (a) Against one who is under the care, custody or supervision of the offender
(b) (b) Against one whose education, training, apprenticeship or tutorship is
entrusted to the offender;
(c) (c) When the sexual favor is made a condition to the giving of a passing grade, or
the granting of honors and scholarships, or the payment of a stipend, allowance
or other benefits, privileges, or considerations; or
(d) (d) When the sexual advances result in an intimidating, hostile or offensive
environment for the result, trainee or apprentice.
b) Persons who may be liable
i) Any employer, employee, manager, supervisor, agent of the employer, teacher,
instructor, professor, coach, trainer or any other person, regardless of whether the
demand, request for requirement for submission is accepted by the object of said act
having authority, influence or moral ascendancy over another in a work or training or
education environment, who demands, requests or otherwise requires any sexual favor
from another,
ii) Any person who directs or induces another to commit any act of sexual harassment as
herein defined. OR
iii) Any person who cooperates in the commission by another without which it would NOT
have been committed, shall also be held liable under this Act [Sec. 3, RA 7877]

26) MINOR WORKERS

a) Relevant Laws: RA 7610 (Special Protection of Children Against Abuse, Exploitation and
Discrimination Act), RA 9231 (Special Protection of Children Against Child Abuse,
Exploitation and Discrimination Act), Art. 137(a)
b) Constitutional basis
i) The State recognizes the vital role of the youth in nation-building and shall promote and
protect their physical, moral, spiritual, intellectual, and social well-being. It shall
inculcate in the youth patriotism and nationalism, and encourage their involvement in
public and civic affairs. [Art II, Sec. 13 of the 1987 Constitution]
c) General Rule: Children below 15 shall NOT be employed
d) Employment of Children
i) Children below fifteen (15) years of age shall not be employed except:
(1) When a child works directly under the sole responsibility of his/her parents or legal
guardian and where only members of his/her family are employed: Provided,
however, That his/her employment neither endangers his/her life, safety, health,
and morals, nor impairs his/her normal development: Provided, further, That the
parent or legal guardian shall provide the said child with the prescribed primary
and/or secondary education; or
 ii) (2) Where a child's employment or participation in public entertainment or information
through cinema, theater, radio, television or other forms of media is essential: Provided,
That the employment contract is concluded by the child's parents or legal guardian,
with the express agreement of the child concerned, if possible, and the approval of the
Department of Labor and Employment: Provided, further, That the following
requirements in all instances are strictly complied with:
(1) The employer shall ensure the protection, health, safety, morals and normal
development of the child;
(2) The employer shall institute measures to prevent the child's exploitation or
discrimination taking into account the system and level of remuneration, and the
duration and arrangement of working time; and
(3) The employer shall formulate and implement, subject to the approval and
supervision of competent authorities, a continuing program for training and skills
acquisition of the child.
iii) In the above-exceptional cases where any such child may be employed, the employer
shall first secure, before engaging such child, a work permit from the Department of
Labor and Employment which shall ensure observance of the above requirements.
iv) For purposes of this Article, the term "child" shall apply to all persons under eighteen
(18) years of age.[Sec 2, RA 9231]
e) Children - refers to any person under 18 years of age or those over but are unable to fully
take care of themselves or protect themselves from abuse, neglect, cruelty, exploitation or
discrimination because of a physical or mental disability or condition. [Sec. 2, RA 7610]
f) Child labor - refers to any work or economic activity performed by a child that subjects
him/her to any form of exploitation or is harmful to his/her health and safety or physical,
mental or psychosocial development.
g) Working child - refers to any child engaged as follows:
i) (1) when the child is below eighteen (18) years of age, in work or economic activity that
is not child labor as defined in the immediately preceding subparagraph; and
ii) (2) when the child is below fifteen (15) years of age, in work where he/she is directly
under the responsibility of his/her parents or legal guardian and where only members
of the child‘s family are employed; or in public entertainment or information. [Sec. 3, DO
65-04]
h) Exceptions
i) Child works directly under the sole responsibility of his parents or legal guardian and
where only members of the employer’s family are employed, provided:
(1) his employment does NOT endanger his life, safety, health and morals,
(2) nor impairs his normal development, and
(3) the parent or legal guardian shall provide the said minor child with the prescribed
primary and/or secondary education; [Sec. 12 of RA 7610 as amended by RA 7658]
ii) Child’s employment or participation in public entertainment or information through
cinema, theater, radio or television is essential, provided that [Sec. 12 of RA 7610 as
amended by RA 7658]:
 (1) employment does NOT involve ads or commercials promoting alcohol, tobacco and
its by-products or violence [Sec. 14, RA 7610]
(2) the employment contract is concluded by the child’s parents or guardian, and
approved by DOLE
(3) The ER shall ensure the protection, health, safety and morals of the child
(4) The ER shall institute measures to prevent the child’s exploitation or discrimination
taking into account the system and level of remuneration, and the duration and
arrangement of working time
(5) The ER shall formulate and implement, subject to the approval and supervision of
competent authorities, a continuing program for training and skills acquisition of
the child. [Sec. 12 of RA 7610 as amended by RA 7658]
i) Employment of Children from 15 to 18
(1) Employment is allowed even without permit but restricted to non-hazardous work.
j) Non-hazardous work shall mean any work or activity in which the EE is not exposed to any
risk which constitutes an imminent danger to his safety and health. [Sec. 3, Rule XII, Book
III, IRR of LC]
i) The Secretary of Labor shall from time to time publish a list of hazardous work and
activities in which persons 18 years of age and below cannot be employed [Sec. 3, Rule
XII, Book III, IRR of LC]

27) HOUSEHELPERS
a) Relevant Law: RA 10361 (Batas Kasambahay or Domestic Worker’s Act)
i) Note: RA 10361 has expressly repealed Chapter III, “Employment of Househelpers”,
Title III of Book III of the Labor Code
b) Domestic work - This refers to work performed in or for a household or households. [Sec
4(C). RA 10361]
c) Domestic worker or “Kasambahay” - Refers to any person engaged in domestic work
within an employment relationship such as, but not limited to, the following: general
househelp, nursemaid or “yaya”, cook, gardener, or laundry person. [Sec 4(D). RA 10361]
i) The term domestic worker or “kasambahay” excludes any person who performs
domestic work only occasionally or sporadically and not on an occupational basis.
[Sec.4(D), RA 10361]
d) Rights and Privileges
 i) Minimum wage
(1) The minimum wage of domestic workers shall not be less than the following:
(a) P2,500 a month for those employed in NCR
(b) P2,000 a month for those employed in chartered cities and first class
municipalities
(c) P1,500 a month for those employed in other municipalities
(2) Within one year from the effectivity of the Act,and periodically thereafter, the
Regional Tripartite and Productivity Wage Boards shall review, and if proper,
determine and adjust the minimum wage rates of domestic workers. [Sec. 24, RA
10361]
(3) SECTION 1. Subparagraphs (1), (2) and (3), Article 143 of Presidential Decree No.
442, as amended, otherwise known as the "Labor Code of the Philippines" are
hereby amended to read as follows:
(a) ART. 143. Minimum wage. — (a) Househelpers shall be paid the following
minimum wage rates;
(i) Eight hundred pesos (P800.00) a month for househelpers in Manila Quezon,
Pasay and Caloocan cities and municipalities of Makati, San Juan,
Mandaluyong, Muntinlupa, Navotas, Malabon, Parañaque, Las Piñas, Pasig,
Marikina, Valenzuela, Taguig and Pateros in Metro Manila and in highly
urbanized cities;
(ii) Six hundred fifty pesos (P650.00) a month for those in other chartered cities
and first class municipalities; and
(iii) Five hundred fifty pesos (P550.00) a month for those in other
municipalities; Provided, that the employees shall review the employment
contracts of their househelpers every three (3) years with the end in view of
improving the terms and conditions thereof. Provided, further, that those
househelpers who are receiving at least One thousand pesos (P1,000.00)
shall be covered by the Social Security System (SSS) and be entitled to all the
benefits provided thereunder."
ii) Standard of Treatment

28) EMPLOYMENT OF HOMEWORKERS

a) Note: DO 5, DOLE (February 4, 1992), is now Rule XIV, Book III of the IRR.
b) Industrial homework
i) Is a system of production under which work for an employer or contractor is carried out
by a homeworker at his/her home. Materials may or may not be furnished by the
employer or contractor.
ii) Decentralized form of production, where there is ordinarily very little supervision or
regulation of methods of work. [Sec. 2(a), Rule XIV, Book III, IRR]
c) Industrial Homeworker - a worker who is engaged in industrial homework
d) Employer means any natural or artificial person who
i) Acts as a contractor or subcontractor – delivers or causes to be delivered any goods,
articles, or materials to be processed or fabricated in or about a home and thereafter to
 be returned or to be disposed of or distributed in accordance with employer’s direction;
OR
ii) Sells any goods, articles, or materials to be processed or fabricated in or about a home
and then rebuys them after. [Art. 153, LC]
(1) Note: Sec 2(d), Rule XIV, Book III is substantially similar to the above.
e) Rights and benefits accorded homeworkers
i) (1) Right to form, join or assist organizations [Sec 3, Rule XIV, Book III, IRR]
ii) (2) Right to acquire legal personality and the rights and privileges granted by law to
legitimate labor organizations upon issuance of the certification of registration [Sec 4,
Rule XIV, Book III, IRR]
iii) (3) Immediate payment upon employer’s receipt of finished goods or articles [Sec 6,
Rule XIV, Book III, IRR]
iv) (4) SSS, MEDICARE and ECC premium contributions shall be deducted from their pay
and shall be remitted by ER/contractor/subcontractor to the SSS [Sec 6, Rule XIV, Book
III, IRR]
f) Liability of Employer
i) (1) Employer may require homeworker to redo work improperly executed without
additional pay [Sec 9a, Rule XIV, Book III, IRR]
ii) (2) Employer need not pay homeworker for any work done on goods or articles not
returned due to homeworker’s fault [Sec 9b, Rule XIV, Book III, IRR]
iii) (3) If subcontractor/contractor fails to pay homeworker, employer is jointly and
severally liable with the former to the homeworker for his/her wage [Sec 11, Rule XIV,
Book III, IRR]
iv) (4) Employer shall assist the homeworkers in the maintenance of basic safe and
healthful working conditions at the homeworkers’ place of work. [Sec 11, Rule XIV, Book
III, IRR of LC]
v) Regional Office shall provide technical assistance to registered homeworkers’
organizations [Sec 14, Rule XIV, Book III, IRR of LC]

29) APPRENTICESHIP AND LEARNERSHIP

a) APPRENTICES
i) Note: Art. 58 has been superseded by Section 4 (j), (k), (l), (m) of RA 7796 quoted
below:
(1) (j) "Apprenticeship" training within employment with compulsory related
theoretical instruction involving a contract between an apprentice and an employer
on an approved apprenticeable occupation.
(2) (k) “Apprentice" is a person undergoing training for an approved apprenticeable
occupation during an apprenticeship agreement. [Art 58(b) Labor Code; Sec 4 (k),
RA 7796]
(3) (l) "Apprenticeship Agreement" is a contract wherein a prospective employer
binds himself to train the apprentice who in turn accepts the terms of training for a
recognized apprenticeable occupation emphasizing the rights, duties and
responsibilities of each party.
 (4) (m) “Apprenticeable Occupation” is an occupation officially endorsed by a
tripartite body and approved to be apprenticeable by the authority. [Sec. 4, RA
7796]
(a) The act of filing the proposed apprenticeship program with the DOLE is a
preliminary step towards its final approval, and does not instantaneously give
rise to an employerapprentice relationship. It must be duly approved by the
Minister of Labor and Employment. Hence, since the apprenticeship agreement
between petitioner and respondent has no force and effect, respondent's
assertion that he was hired not as an apprentice but as a delivery boy deserves
credence. [Nitto Enterprises vs. NLRC, G.R. No. 114337, (1995)]
ii) Qualifications of apprentice
(1) Be at least 14 years of age;
(2) Possess vocational aptitude and capacity for appropriate tests; and
(3) Possess the ability to comprehend and follow oral and written instructions.
(a) Trade and industry associations may recommend to the Secretary of Labor
appropriate educational requirements for different occupations. [Art. 59, LC]
iii) Working scholars – there is no employeremployee relationship between students on
one hand, and schools, colleges or universities on the other, where there is written
agreement between them under which the former agree to work for the latter in
exchange for the privilege to study free of charge, provided, the students are given real
opportunities, including such facilities as may be reasonable and necessary to finish
their chosen courses under such agreement. [Sec. 14, Rule X, IRR]
b) LEARNERS
i) Learners - persons hired as trainees in semiskilled and other industrial occupations
which are non-apprenticeable and which may be learned through practical training on
the job in a relatively short period of time which shall not exceed three (3) months [Art
73, Labor Code, Sec 4(n), RA 7796]
(1) When may learners be hired (1) No experienced workers are available; (2) The
employment of learners being necessary to prevent the curtailment of employment
opportunities; and (3) The employment will neither create unfair competition in
terms of labor costs nor impair working standards. [Art. 74, Labor Code]
ii) Terms and conditions of employment
(1) Any employer desiring to employ learners shall enter into a learnership agreement
with them, which agreement shall include:
(a) The names and addresses of the learners;
(b) The duration of the learnership period, which shall not exceed three (3) months;
(c) The wages or salary rates of the learners which shall begin at not less than
seventy-five percent (75%) of the applicable minimum wage; and
(d) A commitment to employ the learners if they so desire, as regular employees
upon completion of the learnership. All learners who have been allowed or
suffered to work during the first two (2) months shall be deemed regular
employees if training is terminated by the employer before the end of the
stipulated period through no fault of the learners.
 (i) The learnership agreement shall be subject to inspection by the Secretary of
Labor and Employment or his duly authorized representative. [Art. 75, LC]
(ii) Learners employed in piece or incentive-rate jobs during the training period
shall be paid in full for the work done. [Art. 76, LC]
iii) Summary of Rules
(1) The duration of learnership shall not exceed 3 months [Art. 73, LC];
(2) If the learnership of 3 months is completed, the employer may be compelled to
continue with the services of the learner as a regular employee; There is a
commitment from the employer to employ the learners if they so desire, as regular
employees upon completion of the learnership;
(3) If the learner is dismissed from service without just and valid cause and without due
process after 2 months of service, he will be deemed as regular employee; [Art.
75(d)] and
(4) The wages or salary rates of the learners which shall begin at not less than 75% of
the applicable minimum wage. [Art. 75(c)]

30) HANDICAPPED WORKERS – DIFFERENTLY-ABLED WORKERS [RA 7277 - Magna Carta for
Disabled Persons, as amended by RA 9442]
a) Disabled Persons are those suffering from restriction or different abilities, as a result of a
mental, physical or sensory impairment, to perform an activity in the manner or within the
range considered normal for a human being [Sec. 4 (a), RA 7277]
b) Impairment is any loss, diminution or aberration of psychological, physiological, or
anatomical structure or function [Sec. 4(b), RA 7277]
c) Disability shall mean:
i) (a) physical or mental impairment that substantially limits one or more psychological,
physiological or anatomical function of an individual or activities of such individual; OR
ii) (b) a record of such an impairment; OR
iii) (c) being regarded as having such an impairment [Sec 4(c), RA 7277]
d) Handicap refers to a disadvantage for a given individual, resulting from an impairment or a
disability that limits or prevents the function, or activity that is considered normal given the
age and sex of the individual. [Sec 4(d), RA 7277]
e) Declaration of Policy. The grant of the rights and privileges for disabled persons shall be
guided by the following principles:
i) (a) Disabled persons are part of the Philippine society, thus the Senate shall give full
support to the improvement of the total well-being of disabled persons and their
integration into the mainstream of society. Toward this end, the State shall adopt
policies ensuring the rehabilitation, self-development and selfreliance of disabled
persons. It shall develop their skills and potentials to enable them to compete favorably
for available opportunities.
ii) (b) Disabled persons have the same rights as other people to take their proper place in
society. They should be able to live freely and as independently as possible. This must
be the concern of everyone the family, community and all government and non-
 government organizations. Disabled person’s rights must never be perceived as welfare
services by the Government.
iii) (c) The rehabilitation of the disabled persons shall be the concern of the Government in
order to foster their capability to attain a more meaningful, productive and satisfying
life. To reach out to a greater number of disabled persons, the rehabilitation services
and benefits shall be expanded beyond the traditional urban-based centers to
community based programs, that will ensure full participation of different sectors as
supported by national and local government agencies
iv) (d) The State also recognizes the role of the private sector in promoting the welfare of
disabled persons and shall encourage partnership in programs that address their needs
and concerns
v) (e) To facilitate integration of disabled persons into the mainstream of society, the State
shall advocate for andencourage respect for disabled persons. The State shall exert all
efforts to remove all social, cultural, economic, environmental and attitudinal barriers
that are prejudicial to disabled persons. [Sec 2, RA 7277]
f) Coverage. This Act shall covers all disabled persons and, to the extend herein provided,
departments, offices and agencies of the National Government or non-government
organization involved in the attainment of the objectives of this Act. [Sec 2, RA 7277]