7. Thirteenth (13th) Month Pay and other bonuses commissions were an integral part of the basic salary structure.
missions were an integral part of the basic salary structure. They are not
a) Coverage: 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. (Section 1, PD
851
b) Exclusion/Exemptions from coverage
8. Women Workers
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 
 employer to discriminate against any woman employee with respect to
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). 
 (a) Payment of lesser compensation, including wage, salary or other form of
c) Nature of 13th Month Pay: 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. 
 promotion training opportunities, study and scholarship grants solely on
d) Commissions vis-à-vis 13th month pay
 The Rule on Productivity Bonuses. The so-called commissions “paid to or
received by medical representatives of Boie-Takada Chemicals or by the
rank-and-file employees of Philippine Fuji Xerox Co., were excluded from the
term “basic salary” because these were paid to the medical representatives
and rank-and-file employees as “productivity bonuses.” These have no clear
direct or necessary relation to the amount of work actually done by each
individual employee. More generally, a bonus is an amount granted and paid
ex gratia to an employee. If an employer cannot be compelled to pay a
productivity bonus to its employees, it should follow that such productivity
bonus, when given, should not be deemed to fall within the “basic salary” of
employees when the time comes to compute their 13th month pay [Boie-
Takeda vs de la Serna, G.R. No. 92174 and G.R. No. L-102552, (1993)]
 The decision in Boie-Takeda and the doctrine enunciated in this case in fact
co-exist with the other. The two cases present quite different factual
situations (although the same word “commissions” was used or invoked) the
legal characterizations of which must accordingly differ. In the instant case,
there is no question that the sales commission earned by the salesmen who
make or close a sale of duplicating machines constitute part of the
compensation or remuneration paid to salesmen for serving as salesmen,
and hence as part of the “wage” or salary of petitioner’s salesmen. It appears
that petitioner pays its salesmen a small fixed or guaranteed wage; the
greater part of the salesmen’s wages or salaries being composed of the sales
or incentive commissions earned on actual sales closed by them. The sales
overtime payments, or profit sharing payments or any other fringe benefit.
[Phil. Duplicators vs NLRC (1995)]
- purely commission basis: not entitled to 13th month pay
- with basic salary and paid commission: still entitled to 13th month
pay
a) Discrimination
Article 133[135], lC. Discrimination Prohibited. – It shall be unlawful for any
terms and conditions of employment solely on account of her sex.
The following are acts of discrimination:
remuneration and fringe benefits, to a female employee as against a
male employee, for work of equal value; and
(b) Favoring a male employee over a female employee with respect to
account of their sexes.
Criminal liability for the willful commission of any unlawful act as provided in
this Article or any unlawful act as provided in this Article or any violation of
the rues and regulations issued oursuant to Section 2 hereof shall be
penalized as provided in Article 288 and 289 of this Code: Provided, That the
institution of any criminal action under this provision shall not bar the
aggrieved employee from filing an entirely separate and distinct action for
money claims, which may include claims for damages and other affirmative
reliefs. The actions hereby authorized shall proceed independently of each
other.
 Azucena: Article 133 prohibits any form of discrimination against a woman on
account of her sex. Being a woman should not be a basis for disqualification from a
work opportunity or a particular term or condition of employment. In short,
entitlements should in general, apply equally to workers, whether male or female.
 HOWEVER, judicial decisions, however, do recognized exceptions. Where the job
itself necessarily requires a particular qualifications, then the job applicant or
worker who does not possess it may be disqualified on that basis. THIS WILL NOT
BE UNLAWFUL DISCRIMINATION. This is known as bona fide occupation
qualification or BFOQ.
 To justify the selective employment or entitlement policy, the employer must
prove a compelling business necessity for which no alternative exists other than
discriminatory practice.
 Star Paper Corporation vs. Simbol [2006], to justify a bona fide occupation
qualification, the employer must prove two factors:
 1) that the employment qualification is reasonably related to the essential
operation of the job involved; and
2) that there is a factual basis for believing that all or substantially all
persons meeting the qualification would be unable to properly perform
the duties of the job.
 The employer has the burden to prove the existence of a reasonable business
necessity so that the exclusionary specifics will not amount to unlawful
discrimination.
b) Stipulation against marriage
Art 134[136], LC. Stipulation Against Marriage. It shall be unlawful for an
employer to require as a condition of employment or continuation of
employment that a woman employee shall not get married, or to stipulate
expressly or tacitly that upon getting married a woman employee shall be
deemed resigned or separated, or to actually dismiss, discharge, discriminate
or otherwise prejudice a woman employee merely by reason of her marriage.
 Zialcita et al vs. PAL – flight attendant
 PT & T vs. NLRC – dishonest worker
Petitioner’s policy is not only in derogation of the provisions of Article 136 [now
134] of the Labor Code on the right of a woman to be free from any kind of
stipulation against marriage in connection with her employment, it likewise
assaults good morals and public policy, tending as it does to deprive a woman
of the freedom to choose her status, a privilege that by all accounts inheres in
the individual as an intangible and inalienable right.
 Olympia Gualberto vs. Marinduque Mining Industrial Corporation – become
married then fired
No employer may require female applicants for jobs to enter into pre-
employment agreements that they would be dismissed once they get married
and afterwards expect the Courts to sustain such an agreement. Neither may
an employer ask a female employee to sign an undated letter of resignation
which would be accepted once she gets married. The lower court cited various
reasons. It stated, firstly, that the Women and Child Labor Law prohibits
discrimination against women in respect to terms and conditions of
employment on account of sex. Secondly, business and industrial facilities are
required to provided facilities for married women. Thirdly, it is unlawful under
Section 12 of RA No. 679 to discharge a woman for various stated reasons
attributable to marriage.
c) Prohibited Acts
Art 135[137], LC. Prohibited Acts. It shall be unlawful for any employer:
1) To deny any woman employee he benefits provide for in this Chapter
or to discharge any woman employed by him for the purpose of
preventing her from enjoying any of the benefits provided under this
Code.
2) To discharge such woman on account of her pregnancy, or while on
leave or in confinement due to her pregnancy;
3) To discharge or refuse the admission of such woman upon returning
to her work for fear that she may again be pregnant.
d) Classification of certain women workers
Art 136 [138], LC. Classification of certain women workers. Any woman who is
permitted or suffered to worker, with or without compensation, in any night
club, cocktail lounge, massage clinic, bar or similar establishment, under the
effective control or supervision of the employer for a substantial period of time
as determined by the Secretary of Labor, shall be considered as an employee
of such establishment for purposes of labor and social legislation.
e) Anti-Sexual Harassment Act (RA 7877)
RA No. 7877 otherwise known as the “Anti-Sexual Harassment Act of 1995”
declares sexual harassment unlawful in the employment, education or training
environment. The victim of sexual harassment may be a woman or a man.
 Persons who may be liable for sexual harassment: Work, education or training-
related sexual harassment is committed by any employer, employee, manager,
supervisor, agent of the employer, teacher, instructor, professor, coach, training,
or any other person who, having authority, influence or moral ascendancy over
another in a work or training or education environment, demands, requests or
otherwise requires any sexual favor from another, regardless of whether the
demand, request or requirement for submission is accepted by the object of said
act. (Section 3, RA 7877)
 Any person who directs or induces another to commit any act of sexual
harassment as defined in the law, or who cooperated in the commission thereof y
another without which it would not have been committed, shall also be held liable
under the law.
9. Minor Workers (RA 7678, RA 9231)
a) Regulation of working hours of a child
Article 137 [139]. Minimum Employable Age.
a. No child below fifteen (15) years of age shall be employed, except
when he works directly under the sole responsibility of his parents or
guardians, and his employment does not in any way interfere his
schooling.
b. Any person between fifteen (15) and eighteen (18) years of age may
be employed for such number of hours and such periods of the day as
determined by the Secretary of Labor in appropriate regulations.
c. The foregoing provisions shall in no case allow the employment of a
person below eighteen (18) years of age in an undertaking which is
hazardous or deleterious in nature as determined by the Secretary of
Labor.
b) Employment of the child in public entertainment
Child’s employment or participation in public entertainment or information
through cinema, theater, radio, television or other forms of media is essential.
He contract has ti be signed by the parents or legal guardian, with the child’s
express consent.
 A permit from the Department of Labor and Employment is strictly required. gardener, or laundry person, but shall exclude any person who performs
The DOLE permit obliges the employer to: domestic work only occasionally or sporadically and not on an occupational
a. Ensure the protection, health, safety, morals and normal development basis.
of the child;
b. Institute measures to prevent the child’s exploitation or discrimination, The term shall not include children who are under foster family arrangement,
taking into account the system and level of remuneration, and the and are provided access to education and given an allowance incidental to
duration and arrangement of working time; education, i.e., "baon", transportation, school projects and school activities.
c. Formulate and implement, subject to the approval and supervision
competent, a continuing program for training and skills acquisition of b) Benefits accorded househelpers
the child.  Rights and Benefits of Kasambahay:
1. Minimum wage (Section 24);
c) Prohibition of employing minors in certain undertakings and in certain 2. Other mandatory benefits, such as the daily and weekly rest
advertisements periods; (Section 20 & 21)
3. Service Incentive Leave; RA 10361, SECTION 29. Leave Benefits. —
Child’s employment or participation in public entertainment or information A domestic worker who has rendered at least one (1) year of service
through cinema, theater, radio or television is essential, provided that [Sec. 12 shall be entitled to an annual service incentive leave of five (5) days
of RA 7610 as amended by RA 7658]: with pay: Provided, That any unused portion of said annual leave
(a) employment does NOT involve ads or commercials promoting alcohol, shall not be cumulative or carried over to the succeeding years.
tobacco and its by-products or violence [Sec. 14, RA 7610] 
 Unused leaves shall not be convertible to cash.
(b) the employment contract is concluded by the child’s parents or guardian, 4. 13th month pay; (Section 25)
and approved by DOLE 
 5. Freedom from employers’ interference in the disposal of wages;
(c) The ER shall ensure the protection, health, safety and morals of the child 6. Coverage under the SSS, PhilHealth and Pag-IBIG laws;

 7. Standard of treatment;
(d) The ER shall institute measures to prevent the child’s exploitation or 8. Board, lodging and medical attendance;
discrimination taking into account the system and level of remuneration, 9. Right to privacy;
and the duration and arrangement of working time 
 10. Access to outside communication;
(e) The ER shall formulate and implement, subject to the approval 
and 11. Access to education and training;
supervision of competent authorities, a continuing program for training 12. Right to form, join, or assist labor organization;
and skills acquisition of the child. [Sec. 12 of RA 7610 as amended by RA 13. Right to be provided a copy of the employment contract;
7658] 14. Right to certificate of employment;
15. Right to terminate the employment; and
 The following are HAZARDOUS workplaces: 16. Right to exercise their own religious beliefs and cultural practices.
(1) Nature of the work exposes the workers to dangerous
environmental elements, contaminants or working conditions; c) Termination
(2) Construction work, logging, fire-fighting, mining, quarrying, SECTION 32. Termination of Service. — Neither the domestic worker nor the
blasting, stevedoring, dock work, deep sea fishing, and mechanized employer may terminate the contract before the expiration of the term
farming; 
 except for grounds provided for in Sections 33 and 34 of this Act
(3) Manufacture or handling of explosives and other pyrotechnic
products; 
 SECTION 33. Termination Initiated by the Domestic Worker. — The domestic
(4) Exposure to or use of heavy power-driven machinery or equipment; worker may terminate the employment relationship at any time before the

 expiration of the contract for any of the following causes:
(5) Exposure to or use of power-driven tools 
 a. Verbal or emotional abuse of the domestic worker by the employer
or any member of the household;
10. Employment of House helpers (Batas Kasambahay RA 10361) b. Inhuman treatment including physical abuse of the domestic
worker by the employer or any member of the household;
a) Definition c. Commission of a crime or offense against the domestic worker by
RA 10361, Section 3 (d) Domestic worker or "Kasambahay" refers to any person the employer or any member of the household;
engaged in domestic work within an employment relationship such as, but not d. Violation by the employer of the terms and conditions of the
limited to, the following: general househelp, nursemaid or "yaya", cook, employment contract and other standards set forth under this law;
 e. Any disease prejudicial to the health of the domestic worker, the c) Conditions for deduction from homeworker’s earning
employer, or member/s of the household; and No deduction from the homeworker’s earnings for the value of materials lost,
f. Other causes analogous to the foregoing. destroyed or damaged unless:
(1) Homeworker is clearly shown to be responsible for loss or damage 

SECTION 34. Termination Initiated by the Employer. — An employer may (2) Reasonable opportunity to be heard 

terminate the services of the domestic worker at any time before the (3) Amount of deduction is fair and reasonable, and does not exceed actual
expiration of the contract for any of the following causes: loss or damage 

a. Misconduct or willful disobedience by the domestic worker of the (4) Deduction does not exceed 20% of homeworker’s weekly earnings
lawful order of the employer in connection with the former's work; [Sec. 8, Rule XIV, Book III, IRR] 

b. Gross or habitual neglect or inef ciency by the domestic worker in
the performance of duties; 12. Apprentices and Learners
c. Fraud or willful breach of the trust reposed by the employer on the a) Distinctions between Learnership and Apprenticeship
domestic worker; aHcACT
d. Commission of a crime or offense by the domestic worker against
the person of the employer or any immediate member of the
employer's family;
e. Violation by the domestic worker of the terms and conditions of the
employment contract and other standards set forth under this law;
f. Any disease prejudicial to the health of the domestic worker, the
employer, or member/s of the household; and
g. Other causes analogous to the foregoing.

d) Reliefs for unjust termination: If the domestic worker is unjustly dismissed, the
domestic worker shall be paid the compensation already earned plus the
equivalent of fifteen (15) days work by way of indemnity (Section 32)

11. Employment of Homeworkers

a) Definition
 Industrial Homeworker - a worker who is engaged in industrial homework
 Employer means any natural or artificial person who
- 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 

- Sells any goods, articles, or materials to be processed or fabricated
in or about a home and then rebuys them after. [Art. 153, LC]

b) Rights and benefits accorded homeworkers

(1) Right to form, join or assist organizations [Sec 3, Rule XIV, Book III, IRR]
(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]
(3) Immediate payment upon employer’s receipt of finished goods or articles
[Sec 6, Rule XIV, Book III, IRR]
(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]

13. Handicapped Workers (RA 7277)
a) Definition of “handicapped workers”: Handicapped workers are those whose
earning capacity is impaired by age or physical or mental deficiency or injury.
(Article 78, LC)
b) Rights of Disabled workers
A. Equal opportunity for employment
- No disabled person shall be denied access to opportunities for
suitable employment. A qualified disabled EE shall be subject to the
same terms and conditions of employment and the same
compensation, privileges, benefits, fringe benefits, incentives or
allowances as a qualified able-bodied person. [Sec. 5 (par. 1), RA
7277]
B. Reserved contractual positions
- 5% of all casual, emergency and contractual positions in the DSWD;
DOH, DepEd; and other government agencies, offices or
corporations engaged in social development shall be reserved for
disabled persons. [Sec 5 (par. 2), RA 7277]
C. Sheltered employment
- Sheltered Employment refers to the provision of productive work
for disabled persons through workshop providing special facilities,
income producing projects or homework schemes with a view to
given them the opportunity to earn a living thus enabling them to
acquire a working capacity required in open industry. [Sec 4(i), RA
7277]
- If suitable employment for disabled persons cannot be found
through open employment, the State shall endeavor to provide it by
means of sheltered employment.
- In the placement of disabled persons in sheltered employment, it
shall accord due regard to the individual qualities, vocational goals
and inclinations to ensure a good working atmosphere and efficient
production. [Sec 6, RA 7277]
D. Apprenticeship Opportunities.
- Disabled persons shall be eligible as apprentices or learners:
Provided, that their handicap is NOT as much as to effectively
impede the performance of job operations in the particular
occupation for which they are hired; provided, further, That after
the lapse of the period of apprenticeship, if found satisfactory in the
job performance, they shall be eligible for employment. [Art. 81 LC;
Sec. 7, RA 7277] [Bernardo v NLRC & FEBTC, 1999]
E. Full minimum wage
- All qualified handicapped workers shall receive the full amount of
the minimum wage rate prescribed herein. [Sec 7, Wage Order No.
NCR-19]
- In this light, the Magna Carta for Disabled Persons mandates that a
qualified disabled EE should be given the same terms and
conditions of employment as a qualified able- bodied person. Since
the Magna Carta accords them the rights of qualified able- bodied
persons, they are thus covered by Article 280 of the Labor Code. In
the present case, the handicap of petitioners (deaf- mutes) is NOT a
hindrance to their work. The eloquent proof of this statement is the
repeated renewal of their employment contracts. [Bernardo v.
NLRC, G.R. No. 122917 (1999)]
c) Prohibitions on discrimination against disable persons
SECTION 32. Discrimination on Employment. — No entity, whether public or
private, shall discriminate against a qualified disabled person by reason of
disability in regard to job application procedures, the hiring, promotion, or
discharge of employees, employee compensation, job training, and other terms,
conditions, and privileges of employment. The following constitute acts of
discrimination:
1) Limiting, segregating or classifying a disabled job applicant in such a
manner that adversely affects his work opportunities;
2) Using qualification standards, employment tests or other selection
criteria that screen out or tend to screen out a disabled person unless
such standards, tests or other selection criteria are shown to be job-
related for the position in question and are consistent with business
necessity;
3) Utilizing standards, criteria, or methods of administration that:
i. Have the effect of discrimination on the basis of disability; or
ii. Perpetuate the discrimination of others who are subject to
common administrative control.
4) Providing less compensation, such as salary, wage or other forms of
remuneration and fringe benefits, to a qualified disabled employee, by
reason of his disability, than the amount to which a non-disabled
person performing the same work is entitled;
5) Favoring a non-disabled employee over a qualified disabled employee
with respect to promotion, training opportunities, study and
scholarship grants, solely on account of the latter's disability;
6) Re-assigning or transferring a disabled employee to a job or position he
cannot perform by reason of his disability;
 7) Dismissing or terminating the services of a disabled employee by
reason of his disability unless the employer can prove that he impairs
the satisfactory performance of the work involved to the prejudice of
the business entity: Provided, however, That the employer rst sought
to provide reasonable accommodations for disabled persons;
8) Failing to select or administer in the most effective manner
employment tests which accurately reflect the skills, aptitude or other
factor of the disabled applicant or employee that such tests purports to
measure, rather than the impaired sensory, manual or speaking skills of
such applicant or employee, if any; and
9) Excluding disabled persons from membership in labor unions or similar
organizations.

d) Incentives for employers

Tax Incentives for Employers/Establishments
1. For employment of disabled persons –
2. For construction of disabled-friendly facilities –
3. For establishments giving discounts –

14. Retirement Pay Law

a) Coverage: Employees shall be retired upon reaching the age of sixty (60) years or
more but not beyond sixty-five (65) years old [and have served the establishment
for at least five (5) years].

b) Exclusions from coverage

This benefit applies to all employees except:
1) Government employees;
2) employees of retail, service and agricultural establishments/operations
regularly employing not more than ten (10) employees.

c) Components of Retirement Pay

- 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 (1) whole year.
- Thus, “one-half month salary” is equivalent to 22.5 days (Capitol Wireless,
Inc. v. Honorable Secretary Ma. Nieves R. Confesor, G. R. No. 117174,
November 13, 1996).
- The COLA shall not be included in the computation of retirement pay.