AZUCENA Labor Review 156828582

Labor Law I Atty. C.A.
Azucena
Finals Reviewer
PRELIMINARY TITLE application of the science or art to practical

purposes.
Chapter I GENERAL  Work is broader than labor as “work” covers
PROVISIONS all forms of physical or mental exertion, or
both combined, for the attainment of some
Article 1: NAME OF DECREE object other than recreation or amusement
Article 2: DATE OF EFFECTIVITY per se.
2. LABOR LAW AND SOCIAL LEGISLATION
COMMENTS AND CASES  Social legislation includes laws that provide
particular kinds of protection or benefits to
1. LABOR LEGISLATION; DEFINITIONS society or segments thereof in furtherance of
 Broadly divided into labor standards and labor social justice. In that sense, labor laws are
relations necessarily social legislation.
 Labor standards law is that which sets out the 3. SOCIAL JUSTICE AS THE AIM
minimum terms, conditions, and benefits of  The aim, reason, and justification for labor
employment that employers must provide and laws is social justice.
comply with and to which employees are  Section 3 of Article XIII says that “the State
entitled to as a matter of right. shall afford full protection to labor, local and
 Labor relations law is that which defines the overseas, organized and unorganized, and
status, rights and duties, and the institutional promote full employment and equality of
mechanisms, that govern the individual and employment opportunities for all.”
collective interactions of employers,  This is because “without the improvement of
employees or their representatives. economic conditions, there can be no real
 Labor is understood as physical toil, although enhancement of the political rights of the
it does not necessarily involve the application people.”
of skill. Skill, by dictionary definition, is the 4. CONSTITUTIONAL RIGHTS AND MADNESS
familiar knowledge of any art or science,  The basic rights of workers guaranteed by the
united with readiness and dexterity in Constitution are: the rights to organize
execution or performance or in the themselves, to conduct collective bargaining
or negotiation with management, to engage in
Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla Page 1 of 103
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Finals Reviewer
peaceful concerted activities, including to restrictions and regulations as the protection

strike in accordance with law, to enjoy of the public may require.
security of tenure, to work under humane 6. BIRTH OF THE LABOR CODE
conditions, to receive a living wage, to  Writing began under Blas Ople, Father of the
participate in policy and decision making Labor Code
processes affecting their rights and benefits  The objective was not merely to consolidate
as may be provided by law. the then existing pieces of social legislation,
4.1.Balancing of Rights; the Constitutional Principle but also to reorient them to the needs of
of Shared Responsibility economic development and justice.
 While labor is entitled to a just share in 7. PRINCIPLES UNDERLYING THE CODE
the fruits of production, the enterprise  Must be both responsive and responsible to
has an equally important right not only national development
to reasonable returns in investment but  Must substitute rationality for confrontation in
also to expansion and growth. The times of national emergencies
Constitution commands the State to  Must be made expeditious without sacrificing
promote the principle of shared due process
responsibility between employers and  Manpower development and employment must
workers and the preferential use of be regarded as a major dimension of labor
voluntary modes of settling disputes, policy
including conciliation, and to enforce  Availability of a global labor market to
their mutual compliance therewith to qualified Filipinos
foster industrial peace.  Must command adequate resources and
 Constitutional outlook suggests a acquire capable machinery for effective and
balanced treatment. sustained implementation
5. POLICE POWER AS THE BASIS  There should be popular participation in
 The right of every person to pursue a national policy making through what is now
business, occupation or profession is subject called tripartism
to the paramount right of the government as a 8. SOME LABOR LAWS BEFORE THE PASSAGE OF THE
part of its police power to impose such CODE
 Act 1874 or the Employer’s Liability Act
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 Act 2549 which prohibited payment of wages 10.3. Special Laws

th
in non-cash form  SSS law, GSIS law, Agrarian Reform Law, 13
 RA 1054 which required emergency medical month Pay Law, etc.
treatment for employees 11. INTERNATIONAL ASPECT
 CA 444 or the Eight Hour Labor Law  On June 15, 1948, the Philippines became a
 CA 103 which created the Court of Industrial member of the International Labor
Relations (pre-NLRC) Organization (ILO), which is the UN
 PD 21 which created the NLRC specialized agency which seeks the promotion
 RA 875 or the Industrial Peace Act/ Magna of social justice and internationally
Carta of Labor recognized human and labor rights.
 RA 946 Blue Sunday Law  The ILO formulates international labor
 RA 1052 or the Termination Pay Law standards in the form of Conventions and
9. SIGNIFICANCE OF FOREGOING DECISIONS Recommendations setting minimum standards
 Where are labor statutes are based upon or of basic labor rights.
patterned after statutes in foreign  An essential characteristic of ILO is
jurisdiction, the decisions of high courts in tripartism, that is, it is composed not onl of
those jurisdictions… should receive the government representatives but also of
careful attention of the SC in the application employers’ and workers’ organizations.
of our own law. 11.1. International Commitments
10. RELATED LAWS  By being an ILO member, the country thereby
10.1. The Civil Code subscribes t the fundamental principles on
 Labor relations not merely contractual, but which the ILO is based. Also, as an ILO
must yield to the common good. member, the Philippines imbibes the
 Prohibition against involuntary servitude (Art. obligation of the ILO to further programs that
1703) will achieve ILO objectives.
 Also contains provisions regarding wages, 11.2. ILO Core Conventions
househelpers and liabilities of employers.  The eight core conventions are as follows:
10.2. The Revised Penal Code Forced Labor Convention (1930); Freedom of
 Punishes the use of violence or threats by Association and Protection of the Right to
either employer or employee (Art. 289) Organize Convention (1948); Freedom to
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Organize and Collective Bargaining Convention

(1949); equal remuneration Convention 1. LABOR LAWS AND SOCIAL-ECONOMIC GOALS
(1951); Abolition of Forced Labor Convention  Labor laws are devices for social equity. The may,
(1957); Discrimination (Employment and depending on their provisions, make the rich richer
Occupation) Convention (1958); Minimum Age and the poor poorer.
Convention (1973); and Worst Forms of Child  The value of labor laws is in their contribution to
Labor Convention (1999). national growth in the context of social justice.
11.3. Ratification Generally Needed; Exception  The true task of a student of labor law is to examine
 In 1999, the ILO adopted a Declaration on how those laws hinder or help the attainment of the
Fundamental Principles and Right at Work country’s socio-economic goals.
concerning an obligation of all ILO members 2. INTERDEPENDENCE
to respect and promote the fundamental  It should not be deduced that the basic policy is to
rights even if they have not ratified the favor labor to prejudice capital. The plain reality is
conventions. that both sectors need each other. They are
11.4. Ratified ILO Conventions interdependent- one is inutile without the other.
 As of the end of 2000, the Philippines has  The better understanding is that the basic policy is
ratified thirty ILO Conventions, including to balance or coordinate the rights and interests of
significantly, the “core” conventions on both workers and the employers.
freedom of association, on abolition of forced
labor, on abolition of child labor, and on non-
discrimination. Article 4: CONSTRUCTION IN FAOVR OF LABOR
 A labor law expert asserts that the Philippines
can claim with some pride that it belongs to COMMENTS AND CASES
the upper 25% of the ILO members on the
basis of efforts taken to approximate labor 1. INTERPRETATION AND CONSTRUCTION
standards. 1.1.Laborer’s Welfare; Liberal Approach
 The working man’s welfare should be the
Article 3: DECLARATION OF BASIC POLICY primordial and paramount consideration. The
policy is to extend the Decree’s applicability
COMMENTS to a greater number of employees to enable
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them to avail of the benefits under the law, in knowledge of an established rule, enter the
consonance with the State’s avowed policy to service, the rule becomes a part of the
give maximum aid and protection to labor. contract of employment.
1.2.Concern for Lowly Worker 2.3.Right to Select Employees
 The Sc reaffirms its concern for the lowly  An employer has the right to select his
worker who, often at his employer’s mercy, employees and to decide when to engage
must look up to the law for protection. them. He has the right, under the law, to full
1.3.Reason for According Greater Protection to freedom in employing any person free to
Employees accept employment from him, and this,
 In the matter of employment bargaining, except as restricted by valid statute and valid
there is no doubt that the employer stands on contract, at a wage and under conditions
higher footing than the employee. agreeable to them.
 This is because there is a greater supply than  State cannot interfere with the liberty to
demand for labor. Also, the need for contract with respect to labor, except in the
employment comes from vital, even exercise of police power.
desperate, necessity.  The right of a laborer to sell his labor to such
2. MANAGEMENT RIGHTS person as he may choose is, in its essence, the
 Management also has its own rights which are same as the right of an employer to purchase
entitled to respect and enforcement in the interest labor from any person whom it chooses.
of simple fair play. 2.4.Right to Transfer or Discharge Employees
2.1.Right to ROI  The employer has the perfect right to
 The employer has the right to recover his transfer, reduce, or lay off personnel in order
investments and make profits. There is to minimize expenses and to insure the
nothing dirty about profit per se – it is profit stability of the business, and even to close the
that creates jobs and improves the workers’ business, and this right has been consistently
lot. upheld, provided the transfer or dismissal is
2.2.Rights to Prescribe Rules not abused but is done in good faith and is
 Employers have the right to make reasonable due to causes beyond control.
rules and regulations for the government of
their employees, and when employees, with Article 5: RULES AND REGULATIONS
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state delegates government power for the

COMMENTS AND CASES performance of a state function.
 Example: The National Parks Development
1. RULES AND REGULATIONS TO IMPLEMENT THE CODE Committee is an agency of the government,
1.1.When Invalid not a government-owned or controlled
 If promulgated in excess of its rule making corporation. Its employees are covered by
power, the resulting rule or regulation is void. civil service rules and regulations, since they
are civil service employees.
Article 6: APPLICABILITY  But if function is proprietary in nature, its
employees are governed by the Labor Code.
COMMENTS AND CASES 3. APPLICABILITY WITHOUT EMPLOYER-EMPLOYEE
RELATIONSHIP
1. APPLICABILITY TO GOVERNMENT CORPORATIONS  The Labor Code may apply even if the parties
 The ruling now is that the Labor Code applies are not employers and employees of each
to a corporation incorporated under the other.
Corporation Code.  The Labor Code applies with or without
 Government corporations created by special employment relationships between the
charter from Congress are subject to civil disputants, depending on the kind of issue
service rules, while those incorporated under involved.
the Corporation Code are covered by the  For example, when one speaks of employment
Labor code. benefits, then surely, employment
1.1.PNOC-EDC, FTI, NHA relationship is an essential element. But when
2. NON-APPLICABILITY TO GOVERNMENT AGENCIES the issue, for instance, is an indirect
 The terms governmental “agency” or employer’s liability, there is no employer-
“instrumentality” are synonymous in the employee relationship and yet the pertinent
sense that either of them is a means by which Labor Code provisions find application.
a government acts, or by which a certain
government act or function is performed. The
word “instrumentality” with respect to the
state, contemplates an authority to which the
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Chapter II EMANCIPATION OF goal sought to be achieved by the government

1
TENANTS program of agrarian reform.
3. CONSTITUTIONAL PROVISIONS
Article 7: STATEMENT OF OBJECTIVES 4. COMPENSATION SCHEME
Article 8: TRANFER OF LANDS TO TENTN-WORKERS  Title to all expropriated properties shall be
Article 9: DETERMINATION OF LAND VALUE transferred to the State only upon full payment of
Article 10: CONDITION OF OWNERSHIP compensation of the respective owners.
Article 11: IMPMENTING AGENCY 5. RETENTION LIMITS
 … in no case shall retention by the landowner exceed
COMMENTS AND CASES 5 hectares.
6. LANDS NOT COVERED
1. LEGISLATIVE HISTORY 6.1.Lands Obtained Through Homestead Patent
 There is an acute imbalance in the distribution of  The Philippine Constitution respects the
land among our people. Hence, the Constitution of superiority of the homesteader’s rights over
1987 adopted a whole article containing provisions the rights of the tenants.
for the uplift of the common people, thus: “The  Homestead Act has been enacted for the
State shall, by law, undertake an agrarian reform welfare and protection of the poor. The law
program founded on the right of farmers and regular gives a needy citizen a piece of land where he
farmworkers, who are landless, to own directly or may build a modest house for himself and his
collectively the land they till or, in the case of other family and plant what is necessary for
farmworkers, to receive a just share of the fruits subsistence and for the satisfaction of life’s
thereof.” other needs.
2. SHARE TENANCY ABOLISHED 6.2.Residential Subdivisions
 RA 3844 abolished and outlawed share tenancy and  An agricultural leasehold cannot be
put in its stead the agricultural leasehold system. established on land which has ceased to be
 RA 6389, amending RA 3844, declared share tenancy devoted to cultivation or farming because of
as contrary to law and public policy. its conversion to a residential subdivision.
 The phasing out of share tenancy was the first step (Gonzales vs. CA)
towards the ultimate status of owner-cultivator, a 6.3.Livestock, Poultry and Swine Raising Lands
1
Amended by R.A. No. 6657, June 10, 1988
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 There is simply no reason to include livestock employment relations that assure protection
and poultry lands in the coverage of agrarian for the rights of all concerned parties.
reform.
Title I
BOOK ONE RECRUITMENT AND PLACEMENT OF WORKERS
PRE-EMPLOYMENT
Chapter I GENERAL
Article 12: STATEMENT OF OBJECTIVES PROVISIONS
COMMENTS Article 13: DEFINITIONS
1. THE UNEMPLOYMENT PROBLEM COMMENTS

 In a list of 18 countries, the Philippines’
unemployment rate is the highest, at 10.2%, ARTICLE 13 (B) CONSTRUED; WHAT CONSTITUTES
meaning more than three million jobless. RECRUITMENT AND PLACEMENT
 The unemployment problem is exacerbated by  The number of persons is not an essential ingredient
population growth that appears unchecked. of the act of recruitment and placement of workers.
2. THE DOLE: ITS RESPONSIBILITY Any of the acts mentioned in the basic rule in Article
 The Administrative Code mandates the DOLE to 13 (b) will constitute recruitment and placement
assume primary responsibility for: even if only one prospective worker is involved.
a. The promotion of gainful employment (People vs. Panis)
opportunities and the optimization of the  It must be shown that the accused gave the
development and utilization of the country’s complainant the distinct impression that she had the
manpower resources; power or the ability to send the complainant abroad
b. The advancement of workers’ welfare by for work, such that the latter was convinced to part
providing for just and humane working with her money to be so employed. Where such an
conditions and terms of employment; act or representation is not proven, there is not
c. The maintenance of industrial peace by recruitment activity and conviction for illegal
promoting harmonious, equitable and recruitment has no basis. (People vs. Goce)
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 “By themselves, procuring a passport, airline tickets  Also holds special services for the public
and foreign visa for another individual, without such as employment bazaars, etc.
more, can hardly qualify as recruitment activities.”
(Darvin vs. CA) Article 16: PRIVATE RECRUITMENT
Article 14: EMPLOYMENT PROMOTION COMMENTS

AUTHORIZED ENTITIES
COMMENTS  Based on the Rules Implementing the Code, the
following entities are authorized to recruit and place
EMPLOYMENT PROMOTION workers for local or overseas employment:
 To pursue its responsibility to promote employment a. public employment offices b.
opportunities, the DOLE carries out programs for Private recruitment entities c.
local and overseas employment. Private employment agencies
d. Shipping or manning agents or
Article 15: BUREAU OF EMPLOYMENT SERVICES representatives
e. POEA
COMMENTS f. Construction contractors if authorized
1. LOCAL EMPLOYMENT to operate by DOLE and the
 The Bureau of Employment Services has been Construction Industry Authority
replaced by the Bureau of Local Employment (BLE) g. Members of the diplomatic corps
through EO 797 (May 1, 1982) although hirings done by them have
to be processed through the POEA
1.1.The PESO h. Other persons or entities as may be
 Public Employment Service Office authorized by the DOLE Secretary.
 Intended to serve as employment service
and information center in its area of Article 17: OVERSEAS EMPLOYMENT DEVELOPMENT
operation. It regularly obtains a list of job BOARD
vacancies from employers, publicizes them,
invites and evaluates applicants, and refers COMMENTS AND CASES
them for probable hiring.
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1. OVERSEAS EMPLOYMENT, A BRIEF HISTORY freedoms of the Filipino citizen shall not, at
 Labor migration in the Philippines began in the 1900s any time, be compromised or violated.”
when Hawaii experienced severe manpower 3.2.Selective Deployment
shortage. The 200 Filipinos that initially went there  RA 8042 requires certain guarantee of
were followed by many more until they formed protection for the overseas worker before
about 70% of Hawaii’s plantation labor. they are deployed in countries that meet
 Other countries such as the US, Canada, Australia, some criteria:
Japan and Saudi Arabia eventuall followed suit. o It has existing labor and social laws
2. LEGISLATIVE BACKGROUND OF OVERSEAS EMPLOYMENT protecting the rights of migrant
 Act 2486: first law passed by Philippine Congress workers;
relating to overseas employment o It is a signatory to multilateral
 PD 442: Labor code, paved the way for stricter conventions, declarations or resolutions
government regulation of the overseas employment relating to the protection of migrant
industry. workers;
 PD 1412: revived private sector participation in the o It has concluded a bilateral agreement or
recruitment and placement of Filipino migrant arrangement with the government
workers. protecting the rights of Filipino migrant
 EO 797: Enacted to streamline operations in the workers;
overseas employment program. o It is taking positive, concrete measures
 EO 247: Reorganization Act of the POEA to protect the rights of migrant
 RA 8042: Migrant Workers and Overseas Filipinos Act workers.
of 1995  Notwithstanding this… the government, in
3. OVERSEAS EMPLOYMENT POLICY pursuit of national interest or when public
3.1.R.A. No. 8042 welfare so requires, may, at any time,
 “…The State does not promote overseas terminate or impose a ban on the deployment
employment as a means to sustain economic of migrant workers.
growth and achieve national development.”
 “… The existence of overseas employment 4. THE POEA: OVERVIEW OF ITS FUNCTIONS AND POWERS
program rests solely on the assurance that the  Among the principal functions of the POEA are the
dignity and fundamental human rights and formulation, implementation, and monitoring of the
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overseas employment of the Filipino workers and the b virtue of any law or contract
protection of their rights to fair and equitable involving Filipino workers in overseas
employment practices. employment.
 Overseas Filipino Worker (OFW) is understood as a c. Disciplinary action cases consisting of
Filipino worker who is to be engaged, is engaged, or all complaints against a contract
has been engaged in a remunerated activity in a worker for breach of discipline.
country of which he/she is not a legal resident. 6.1.Jurisdiction Transferred to NLRC
 OFWs are classified by DOLE as either land-based or  RA 8042 transferred to the NLRC the
sea-based. jurisdiction over employer-employee
4.1.POEA Rules (2002) relations cases.
5. REGULATORY FNCTION OF POEA  Section 10 of the said law provides
 POEA regulates the private sector participation in that Labor Arbiters shall have the
the recruitment and overseas placement of workers exclusive and original jurisdiction to
through its licensing ad registration system. hear and decide claims arising out of
6. ADJUDICATORY FUNCTIONS OF POEA an employer-employee relationship or
 Before the passage of RA 8042, POEA had original by virtue of any law or contract
and exclusive jurisdiction to hear and decide the ff involving Filipino workers for overseas
cases: employment including claims for
a. Recruitment violation and related actual, moral, exemplary and other
cases consisting of all preemployment forms of damages.
cases which are administrative in  RA 8042 not only transferred from
character, involving or arising out of POEA to NLRC the jurisdiction over
recruitment laws, rules and money claims of OFWs, it even
regulations, including money claims expanded the scope of such money
therefrom or violations of the claim. When the jurisdiction was still
conditions for issuance of license to with the POEA, the jurisdiction
recruit workers. covered only money claims involving
b. Employer-emploee relations cases Filipino workers for overseas
consisting of all claims arising out of employment. Now the NLRC
an employer-employee relationship or jurisdiction is over money claims
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involving Filipino workers for overseas termination is not shown to be based

deployment. on lawful or valid grounds, the
 RA 8042 allows for claims for money employer will be ordered to pay the
or damages sustained during the workers their salaries corresponding
period of deployment or before to the unexpired portion of their
departure for abroad. employment contract. (Tierra
6.2.Jurisdiction Retained With POEA Construction vs. NLRC)
 POEA retains the jurisdiction to 7.3.Pretermination Under R.A. No. 8042; July 15,
decide all cases which are 1995 Onward
administrative in character and  The date of the employment
disciplinary action cases. termination is material. If it occurred
6.3.Compromise Agreement on or after July 15, 1995, the law to
 RA 8042 allows also resolution by apply is RA 8042.
compromise.  Under Section 10, a worker dismissed
6.4.Mandatory Principle from overseas employment without
 Non-compliance with the periods just, valid or authorized cause as
provided for under the law will defined by law or contract, is entitled
subject the responsible officials to to “a full reimbursement of his
penalties such as withholding of placement fee with interest at 12%
salaries until compliance, suspension, per annum, plus his salary for the
or dismissal from service. unexpired portion of his employment
7. EMPLOYER-EMPLOYEE RELATIONS CASES: TERMINATION contract or for 3 months for every
OF EMPLOYMENT year of the unexpired term,
7.1.Contractual Employees whichever is less.”
 Sea farers are contractual employees. 8. EMPLOYER-EMPLOYEE RELATIONS CASES: MONEY CLAIMS;
(Millares and Lagda vs. NLRC) EMPLOYER’S NATIONALITY IMMATERIAL
7.2.Premature Termination of Contract  Statutes and regulations do not limit the coverage to
 Where the workers’ employment non-Filipino employers. Filipinos working overseas
contract is terminated before its share the same risks and burdens whether their
agreed termination date, and the employers be Filipino or foreign.
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award in dollars was based on the parties’

8.1.Death and Other Benefits, Basis of Compensation employment contract, stipulating that wages
 The standard contract for employment for and benefits in dollars, since private
Filipino seamen allows the payment of death respondent was engaged as an overseas
benefit pension, funeral benefit, and burial seaman on board petitioner’s foreign vessel.
gratuity for the private respondent. (Philippine International Shipping Corp. vs.
 These claims arose from the responsibility of NLRC)
the foreign employer together with the local 9. DISCIPLINARY ACTION CASES
agency for the safety of the employee  The POEA may motu propio undertake a
during his repatriation and until his arrival in disciplinary action against a worker for breach
this country, i.e. the point of hire. (Inter- of discipline. It shall also establish a system of
Orient Maritime Enterprises vs. NLRC) watching and blacklisting OCWs.
8.2.Illustrative Case: Death Benefit Under the 9.1.Grounds for Disciplinary Action
Standard Contract a. Commission of a felony punishable by
 In order to evade liability for death benefit Philippine laws or laws of host
under the standard contract, it must be country;
sufficiently shown that the deaths of the b. Drug addiction or possession or
seamen were caused by their own willful and trafficking of prohibited drugs;
deliberate act. In this case, the evidence does c. Desertion or abandonment;
not substantially prove that the seamen d. Gambling;
contracted tetanus as a result of the e. Initiating or joining a strike, where
unsanitary surgical procedures they performed prohibited;
on themselves. Hence, the death benefits f. Creating trouble at the work site;
under the employment contract must be paid. g. Embezzlement of company funds or
(NFD International Manning Agents vs. NLRC) other properties;
8.3.Overseas Compensation Benefits in Dollars h. Theft or robbery;
 While it is true that RA 529 makes it unlawful i. Prostitution;
to require payment of domestic obligations in j. Vandalism;
foreign currency, this particular statute is not k. Gunrunning or possession of deadly
applicable in the case at bar. The fixing of the weapons;
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l. Unjust refusal to depart for a  Direct hiring of Filipino workers by a foreign

worksite after all documents have employer is not allowed except direct hiring by
been prepared; members of he diplomatic corps and others
m. Violations of the law and sacred mentioned in this article. Also excepted are “name
practices of the host country and hirees” or those individual workers who are able to
unjustified breach of the employment secure contracts for overseas employment on their
contract. own efforts and representations without the
10. OUTSIDE POEA JURISDICTION assistance or participation of any agency.
 The POEA has no jurisdiction to hear and  The Office of Emigrant Affairs has been abolished
decide a claim for enforcement of a foreign and its pertinent functions were transferred to the
judgment. Such a claim must be brought Commission on Filipinos Overseas (CFO) by Batasang
before the regular courts. This is because the Pambansa Blg. 79.
POEA is not a court, it is only an
administrative agency. Article 20: NATIONAL SEAMEN BOARD
10.1. No Jurisdiction Over Torts
 Intention must be to seek and claim COMMENTS AND CASES
protection under the Labor Code and not the 1. NSB NOW POEA
Civil Code. In the case at bar, the items  EO 797 abolished the NSB and transferred its
demanded are not labor benefits such as function to the POEA. But this adjudicatory function
wages, overtime pay or separation pay, but of the POEA has since been moved to the NLRC by RA
are items claimed as natural consequences of 8042.
his dismissal (which he denominates as 2. ARTICLE 20 CONSTRUED; SEAMEN’S EMPLOYMENT
“damages.”) POEA has no jurisdiction. CONTRACTS AND THE INTERNATIONAL TRANSPORT
FEDERATION (ITF)
 Wallem Shipping vs. Ministry of Labor: Seamen who
Article 18: BAN ON DIRECT-HIRING were dismissed because they demanded that they be
Article 19: OFFICE OF EMIGRANT AFFAIRS paid the worldwide rate, instead of the lower Far
East rate as provided in their contracts of
COMMENTS employment, did not commit serious misconduct as
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to warrant their dismissal. They were only exercising since it is an equitable doctrine, its application is
their rights. Hence, dismissal was illegal. controlled by equitable considerations. It cannot be
 “Filipino seamen are admittedly as competent and worked to defeat justice or perpetrate fraud or
reliable as seamen from any other country in the injustice.
world; otherwise, there would not be so many of  “Where the claim was filed within the three-year
them in the vessels sailing in every ocean and sea on statutory period, recovery therefore cannot be
this globe. They are entitled to government barred by laches. Courts should never apply the
protection when they ask for fair and decent doctrine of laches earlier than the expiration of time
treatment by their employers and when they limited for the commencement of actions at law.”
exercise their right to petition for improved terms of (Imperial Victory Shipping vs. NLRC)
employment, especially when they feel that these 5. MINIMUM EMPLOYMENT CONDITIONS
are substandard or are capable of improvement a. Guaranteed wages for regular working
according to internationally accepted rules. Also, hours and overtime pay
the standard forms embody the basic minimums b. Free transportation to and from the
which must be incorporated as parts of the worksite, or offsetting benefit;
employment contract. They are not collective c. Free food and accommodation, or
bargaining agreements or immutable contracts which offsetting benefit;
the parties cannot improve upon or modify in the d. Just and authorized causes for
course of the agreed peril of time.” (Vir-jen Shipping termination of contract taking into
vs. NLRC) consideration the customs and norms
3. INVALID SIDE AGREEMENT of the host country.
 An agreement that diminishes the employee’s [ay 6. FREEDOM TO STIPULATE
and benefits as contained in a POEA-approved  Parties are allowed to stipulate other terms and
contract is void, unless such subsequent agreement conditions and other benefits not provided under
is approved by the POEA. these minimum requirements, provided the whole
4. DELAY IN FILING CLAIM employment package should be more beneficial to the
 There is no absolute rule as to what constitute worker than the minimum, and that the same not be
laches; each case is to be determined according to contrary to law, public policy, and morals.
its particular circumstances. The question of laches
is addressed to the sound discretion of the court and Article 21: FOREIGN SERVICE ROLE AND PARTICIPATION
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of repatriation from the worker after return to the

COMMENTS country.
 If the principal of agency does not comply with this
1. PROTECTION AND ASSISTANCE BY GOVERNMENT obligation, the POEA shall notify the OWWA to
AGENCIES advance the repatriation cost with recourse to the
 RA 8042 assigns four government agencies to agency or principal.
promote the welfare and protect the rights of
migrant workers and, as far as practicable, of all Article 22: MANDATORY REMITTANCE OF FOREIGN
overseas Filipinos: DFA, DOLE, POEA, and OWWA. EXCHANGE EARNINGS
2. THE RPM CENTER
 Re-Placement and Monitoring Center COMMENTS
 Serves as a promotion house for local employment of REMMITTANCE
these returning workers and to tap their skills for
national development. Article 23: COMPOSITION OF THE BOARDS
3. THE OWWA
 Overseas Workers Welfare Administration COMMENTS
 Intended to provide social and welfare services,
including insurance coverage, legal assistance, 1. COMPOSITION OF THE POEA
placement assistance, and remittance services to
OFWs. Article 24: BOARDS TO ISSUE RULES AND COLLECT FEES
 Funded with contributions from the workers
themselves and the fees and charges imposed by the
POEA and BLE. Chapter II
4. REPATRIATION OF WORKERS REGULATIONS OF RECRUITMENT AND
 The primary responsibility to repatriate a worker, PLACEMENT ACTIVITIES
including his or her remains and personal effects,
belongs to the principal or the agency that recruited Article 25: PRIVATE SECTOR PARTICIPATION IN THE
or deployed the worker. RECRUITMENT AND PLACEMENT OF WORKERS
 If the termination is due solely to the fault of the
worker, the principal or agency may recover the cost COMMENTS AND CASES
Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla Page 16 of
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Article 29: NON-TRANSFERABILITY OF LICENSE OR

1. VALIDITY OF POEA REGULATIONS AUTHORITY
 Valid under the principle of subordinate legislation
1.1.POEA Circular No. 11 (1983) Unenforceable COMMENTS
 This circular has not yet been published or filed with
the National Administrative Register, hence, cannot PLACE OF RECRUITMENT
be used as a basis for the imposition of  Licensees or holders of authority or their duly-
administrative sanctions. authorized representatives may, as a rule, undertake
recruitment and placement activities only at their
Article 26: TRAVEL AGENCIES PROHIBITED TO RECRUIT authorized official address.
 Under existing regulations, however, they may be
COMMENTS allowed to conduct provincial recruitment only upon
 The POEA rules also disqualify persons with written authority from the POEA.
derogatory records such as those convicted for  Recruitment of workers for overseas employment
illegal recruitment or other crimes involving moral cannot be lawfully undertaken on a house-to-house
turpitude, an official or employee of DOLE, POEA, basis, in residences, or secluded places.
OWWA, DFA and other government agencies directly
involved in the implementation of RA 8042 or any of Article 30: REGISTRATION FEES
their relatives within the fourth civil degree. Article 31: BONDS
Article 27: CITIZENSHIP REQUIREMENT COMMENTS AND CASES

Article 28: CAPITALIZATION  The POEA possesses the power to enforce liability
under cash or surety bonds.
COMMENTS  These are means of ensuring prompt and effective
 The required capitalization, according to POEA rules, recourse against such companies when held liable for
is a minimum of two million pesos in case of single applicants’ and workers’ claims. (Finman General
proprietorship or partnership and a minimum paid-up Assurance vs. Innocencio)
capital of the same amount for a corporation.
Article 32: FEES TO BE PAID BY WORKERS
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COMMENTS AND CASES  Such fees shall be collected from the hired worker
only after he has obtained employment through the
1. CHARGEABLE FEES facilities of the recruitment agency.
 Unless otherwise provided, the principal shall be 2. REFUND FEES
liable to pay for the ff:  POEA has the power to order the refund of illegally
a. visa fee; collected fees.
b. airfare;
c. POEA processing fee; and Article 33: REPORTS ON EMPLOYMENT STATUS
d. OWWA membership fee. Article 34: PROHIBITED PRACTICES
 A land-based agency may charge and collect from its
hired workers a placement fee in an amount COMMENTS AND CASES
equivalent to one month salary, exclusive of
documentation costs. These documentation costs PROHBITED PRACTICES
shall include expenses for the ff:  Article 34(a) prohibits the charging or accepting of
a. Passport; fees greater than that allowed by regulations. It is
b. NBI/ Police/ Barangay clearance; also a deterrant to loan sharks who lend money at
c. Authentication; usurious interests.
d. Birth Certificate;  Article 34(b) includes the act of furnishing fake
e. Medicare; employment documents to a worker, and the act of
f. Trade test, if necessary; publishing false notice or information in relation to
g. Inoculation, when required; recruitment or employment.
h. Medical Examination fees.  In Article 34(d), it is not necessary that the worker
 The abovementioned placement and documentation was actually induced or did quit the employment.
costs are the only authorized payments that may be
collected from a hired worker. No other charges in Article 35: SUSPENSION AND/OR CANCELLATION OF
whatever form, manner or purpose, shall be imposed LICENSE OR AUTHORITY
on and be paid by the worker without prior approval
by the POEA. COMMENTS AND CASES
1. SUSPENSION OR CANCELLATION OF LICENSE
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 The grounds for imposition of administrative  Contract contained a provision empowering the
sanctions include engaging in acts of agency to sue and be sued jointly and solidarily with
misrepresentation for the purpose of securing a the foreign principal for any of the violations of the
license or renewal thereof, etc. The acts prohibited recruitment agreement and the contracts of
under Art. 34 are not just grounds for suspension or employment. These contractual undertakings
cancellation of license or authority. They likewise constitute the legal basis for private agencies being
constitute illegal recruitment under RA 8042. liable jointly and severally with its principal, for all
claims filed by recruited workers which may arise in
1.1.Concurrent Jurisdiction to Suspend or Cancel a connection with the implementation of the service
License agreements or employment contracts. (Royal Crown
 The SC has affirmed the concurrent jurisdiction Inernationale vs. NLRC)
of the DOLE Secretary and the POEA
Administrator to suspend or cancel a license. 3.1.Required Undertaking by Agent
3.2.Contract by Principal
2. PERSONS LIABLE; DURATION OF LIABILITY  It has been held that even if it was the
 A recruitment agency is solidarily liable for the petitioner’s principal which entered into a
unpaid salaries of a worker it recruited for contract with the private respondent,
employment with a foreign principal. nevertheless, petitioner, as the manning agent in
 Even if the recruitment agency and the principal had the Philippines, is jointly and solidarily
already severed their agency agreement at the time responsible with its principal. (Seagull Maritime
the worker was injuredm the recruitment agency Corp vs. Balatongan)
may still be sued for violation of the employment 3.3.Proper Party
contract, if no notice of the agency agreement’s  A sister in the Philippines of a maltreated Filipino
termination was given to the employee. domestic helper in Abu Dhabi is a proper party to
 The responsibilities of the recruitment agency and file a complaint.
the principal to the worker extends up to and until 4. SUABILITY OF A FOREIGN CORPORATION WHICH HIRES
the expiration of the employment contracts of the FILIPINO WORKERS
employees recruited and employed pursuant to the  A foreign corporation which, through unlicensed
said employment agreement. agents, recruits workers in the country may be sued
3. SOLIDARY LIABILITY ASSUMED BY RECRUITMENT AGENT in and found liable by Philippine courts.
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As stated in the Code: (a) Any recruitment activities,

5. DEREGULATION AND PHASE OUT including prohibited practices enumerated under Art. 34
 RA 8042 envisions a phase-out of POEA’s regulatory of this Code, to be undertaken by non-licensees or non-
function so that the migration of workers will holders of authority shall be deemed illegal and
become strictly a matter between the worker and punishable under Art. 39 of this Code. The DOLE or any
his employer. This projected deregulation has stirred law enforcement officer may initiate complaints under
some controversies which, to this day, continue to this Article.
remain unresolved. (b) Illegal Recruitment, when
committed by a syndicate or in large scale shall be
Chapter III – Miscellaneous Provisions considered an offense involving economic sabotage and
shall be penalized in accordance with Art. 39 hereof.
Art. 36 – Regulatory Power Illegal Recruitment is deemed committed by a
The Secretary of Labor shall have the power to restrict syndicate if carried out by a group of three (3) or more
and regulate the recruitment and placement activities persons conspiring and/or confederating with one
of all agencies within the coverage of this Title and is another in carrying out any unlawful of illegal
hereby authorized to issue orders and promulgate rules transaction, enterprise or scheme, defined under the
and regulations to carry out the objectives and first paragraph hereof. Illegal Recruitment is deemed
implement the provision of this Title. committed in large scale if committed against three (3)
or more persons individually or as a group.
Art. 37 – Visitorial Power (c) The Secretary of Labor and
The Secretary of Labor or his duly authorized Employment or his duly authorized representatives shall
representatives may, at any time, inspect the premises, have the power to cause the arrest and detention of
books of accounts and records of any person or entity such non-licensee or non-holder of authority if after
covered by this Title, require it to submit reports investigation it is determined that hisactivities
regularly on prescribed forms, and act on any violations constitute danger to national security and public order
of this Title. or will lead to further exploitation of job-seekers. The
Minister shall order the search of the office or premises
2
Art. 38 – ILLEGAL RECRUITMENT and seizure of documents, paraphernalia, properties
and other implements used in illegal recruitment
2
Amended by Republic Act 8042 or The Migrant Workers and activities and the closure of companies, establishments
Overseas
Filipinos Act of 1995
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and entities found to be engaged in the recruitment of schedule of allowable fees

workers for overseas employment without having been prescribed by the DOLE
licensed or authorized to do so. Secretary, or to make a worker
pay any amount greater than
that actually received by him as
• Now, under RA 8042, the abovementioned article a loan or advance;
has been amended to also include LICENSED or b.) To furnish of publish any false
AUTHORIZED entities; the list of ACTS CONSIDERED notice or information or
AS ILLEGAL RECRUITMENT has also been EXPANDED document in relation to
as found in SECTION 6, RA 8042: recruitment or employment;
Definition: xxx Illegal Recruitment shall c.) To give any false notice,
mean any act of canvassing, enlisting, testimony, information or
contracting, transporting, utilizing, hiring, document or commit any act of
or procuring workers and includes referring misrepresentation for the
contract services, promising or advertising purpose of securing a license or
for employment abroad, whether for profit authority under the Labor Code;
or not, when undertaken by a non-licensee d.) To induce or attempt to induce a
or non-holder of authority as contemplated worker already employed to quit
under the Labor Code; Provided, that any his employment in order to offer
such non-licensee or non-holder who, in him another unless the transfer
any manner, offers or promises for a fee is designed to liberate a worker
employment abroad to two or more from oppressive terms and
persons shall be deemed so engaged. It conditions of employment;
shall likewise include the following acts e.) To influence or attempt to
whether committed by any person, influence any person or entity
WHETHER A NON-LICENSEE, NON-HOLDER, not to employ any worker who
LICENSEE OR HOLDER OF AUTHORITY: has not applied for employment
a.) To change or accept directly or through his agency;
indirectly any amount greater f.) To engage in the recruitment or
than that specified in the placement of workers in jobs
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harmful to public health or or indirectly in the management

morality or to the dignity of the of a travel agency;
Republic of the Philippines; k.) To withhold or deny travel
g.) To obstruct or attempt to documents from applicant
obstruct inspection by the DOLE workers before departure for
Secretary or by his duly monetary or financial
authorized representative; considerations other than those
h.) To fail to submit reports on the authorized under the provisions
status of employment, of the Labor Code and its IRR’s;
placement vacancies, remittance l.) Failure to actually deploy
of forex earnings, separation without valid reason as
from jobs, departures and such determined by the DOLE;
other information as may be m.) Failure to reimburse expenses
required by the DOLE Secretary; incurred by the worker in
i.) To substitute or alter to the connection with his
prejudice of the worker, documentation and processing
employment contracts approved for purposes of deployment, in
and verified by the DOLE from cases where the deployment
the time of the actual signing does not actually take place
thereof by the parties up to and without the worker’s fault.
including the period of the
expiration of the same without Illegal Recruitment when committed by a
the approval of the DOLE; syndicate or in large scale shall be considered an
j.) For an officer or agent of a offense involving economic sabotage.
recruitment or placement Illegal Recruitment is deemed committed
agency to become an officer or by a syndicate if carried out by a group of three (3) or
member of the Board of any more persons conspiring and/or confederating with one
corporation engaged in travel another. It is deemed committed in large scale if
agency or to be engaged directly committed against three (3) or more persons
individually or as a group.
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- under the Constitution (Art. III, Sec. 2, 1987

• Persons Liable: Principals, Accomplices, and Constitution) only a judge may issue a
Accessories; for Juridical Persons: the officers warrant of arrest or a search warrant
HAVING CONTROL, MANAGEMENT, OR DIRECTION of - the Secretary of Labor is not a judge hence is
their business no longer granted the power to issues said
• General Rule: Employees who have no control, do warrants. Authorities must now undergo
not manage nor direct the business may not be held judicial process
liable; UNLESS, it is shown that such employees - Exception: Deportation or Illegal and
ACTIVELY AND CONSCIOUSLY PARTICIPATED in the Undesirable Aliens Cases—the President or
illegal recruitment the Commissioner of Immigration may order
• LACK OF RECEIPTS: will not defeat the purpose of arrested following a final order of deportation
criminal prosecution AS LONG AS THE WITNESSES for the purpose of deportation
CAN POSITIVELY SHOW THROUGH THEIR RESPECTIVE • SUBJECT TO ARREST: Illegal Recruiters are still
TESTIMONIES that the accused was the one involved subject to arrest, upon compliance with the
in the prohibited recruitment; credible testimonies procedure as provided for by law namely through a
suffice warrant of arrest issued by a judge of an RTC where
• ECONOMIC SABOTAGE: IR committed by syndicate a criminal information was filed after preliminary
and IR committed in large scale; each is an investigation; also RULES ON WARRANTLESS ARRESTS
independent and separate category that can stand under Rule 113, Section 5 of the ROC may still apply
on their own and need not coincide or concur within to illegal recruiters when they fall under the
the same case circumstances enumerated therein; WARRANTLESS
• ESTAFA: CONVICTION for Illegal Recruitment is not a SEARCHES: INCIDENTAL to lawful arrest; PLAIN VIEW;
bar for filing suit against such person for ESTAFA with INDIVIDUAL’S CONSENT
under the RPC as long as the requisites for said • CLOSURE ORDER: DOLE Secretary or his duly
felony are present authorized representative still has power or
• THE POWER TO ISSUE SEARCH AND ARREST authority to issue and order closure of illegal
WARRANTS AS FOUND IN ART. 38 (C) DEEMED recruitment establishes, this being an
UNCONSTITUTIONAL see Salazar v. Achacoso and ADMINISTRATIVE and REGULATORY action; Issuance
Marquez, G.R. No. 81510, March 14, 1990 after an ex parte preliminary examination to
determine whether the activities of a non-licensee
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constitute a danger to national security and public less than four years nor more than eight years or a
order or will lead to further exploitation of job fine not less than P20,000 nor more than P100,000
seekers or both such imprisonment and fine, at the
• PROCEDURE FOR CLOSURE: Rules Secs. 14 – 27; discretion of the court;
these cover the POEA’s Anti-Illegal Recruitment (D) If the offender is a corporation, partnership,
Programs; Provision for Legal Assistance; Complaints association, or entity, the penalty shall be imposed
Desk; Surveillance; Issuance of Closure Order; upon the officer or officers of the corporation,
Implementation of Closure Order; Report on CO, partnership, association, or entity responsible for
Institution of Criminal Action; Motion to Lift CO; the violation, and if such officer is an alien, he
Who may file such Motion; Grounds for Lifting or Re- shall, in addition to the penalties herein prescribed,
opening; Appeal and Re-padlocking of Office be deported without further proceedings;
(E) In every case, conviction shall cause and carry the
3
Art. 39 - PENALTIES automatic revocation of the license or authority
(A) The penalty of life imprisonment and a fine of One and all the permits and privileges granted to such
Hundred Thousand Pesos (P100,000) shall be person or entity under this Title, and the forfeiture
imposed if illegal recruitment constitutes economic of the cash and surety bonds in favor of the
sabotage as defined herein; Overseas Employment Board or the National Seamen
(B) Any licensee or holder of authority found violating Board, as the case may be, both of which are
or causing another to violate any provision of this authorized to use the same exclusively to promote
Title or its implementing rules and regulations shall their objectives.
upon conviction thereof, suffer the penalty of
imprisonment of not less than two years nor more • Section 7, RA 8042 provides:
than five years or a fine not less than P10,000 nor Any person found guilty of IR shall suffer the
more than P50,000, or both such imprisonment and penalty of IMPRISONMENT of NOT LESS THAN SIX
fine, at the discretion of the court; (6) YEARS AND ONE (1) DAY BUT NOT MORE THA
(C) Any person who is neither a licensee nor a holder of TWELVE (12) YEARS and A FINE OF NOT LESS
authority under this Title found violating any THAN TWO HUNDRED THOUSAND PESOS
provision thereof or its IRR’S shall, upon conviction (P200,000.00) NOR MORE THAN FIVE HUNDRED
thereof, suffer the penalty of imprisonment of not THOUSAND PESOS (P500,000.00)
3
Amended by RA 8042, Section 7
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The penalty of LIFE IMPRISONMENT and a FINE TITLE II – EMPLOYMENT OF NON-RESIDENT ALIENS
NOT LESS THAN FIVE HUNDRED THOUSAND PESOS
(P500,000.00) NOR MORE THAN ONE MILLION Art. 40 – EMPLOYMENT PERMIT OF NON-RESIDENT
PESOS (P1,000,000.00) shall be imposed if IR ALIENS
CONSTITUTES ECONOMIC SABOTAGE Any alien seeking admission to the Philippines for
employment purposes and any domestic or foreign
Provided however, That the MAXIMUM PENALTY employer who desires to engage an alien for
shall be imposed if the PERSON ILLEGALLY employment in the Philippines shall obtain an
RECRUITED is LESS THAN 18 YEARS OF AGE or employment permit from the DOLE.
committed by a non-licensee or non-holder of The employment permit may be issued to a non-
authority. resident alien or to the applicant employer after a
determination of non-availability of a person in the
• VENUE (Sec. 9, RA 8042): Criminal Action arising Philippines who is competent, able and willing at the
from IR shall be filed with the REGIONAL TRIAL time of the application to perform the services for
COURT of the province or city WHERE THE which the alien is desired.
OFFENDED PARTY ACTUALLY RESIDES AT THE TIME For an enterprise registered in preferred areas of
OF THE COMMISSION OF THE OFFENSE investments, said employment permit may be issued
• MANDATORY PERIODS for Resolution of IR cases (Sec. upon recommendation of the government agency
11, RA 8042): terminate within 30 days from date of charged with the supervision of said registered
filing: preliminary investigation; file information enterprise.
within 24 hours from termination of investigation;
file information within 48 hours from the date of Art. 41 – Prohibition against transfer of employment
receipt of case records if preliminary investigation (a) After the issuance of the employment permit, the
conducted by judge and prima facie case is alien shall not transfer to another job or change his
established employer without prior approval from the Secretary
• PRESCRIPTIVE PERIODS (Sec. 12, RA 8042): General of DOLE
IR: five (5) years; IR involving Economic Sabotage: (b) Any non-resident alien who shall take up
twenty (20) years employment in violation of provision of this Title
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and its IRR’s shall be punished in accordance with • DEPARTMENT ORDER no. 12, SERIES 2001: Omnibus
4
Arts. 289 and 290 of the Labor Code. Guidelines for the Issuance of Employment Permits
In addition, the alien worker shall be subject to to Foreign Nationals; the following are required to
deportation after service of his sentence. apply for an Alien Employment Permit (AEP):
1.) All foreign nationals seeking admission to the
• RESIDENT ALIENS: NOT required to have employment Philippines for the purpose of employment;
permits; instead, they need an ALIEN EMPLOYMENY 2.) Missionaries or religious workers who intend
REGISTRATION CARD (AERC) to engage in gainful employment;
• NATIONALIZED INDUSTRIES and the ANTI-DUMMY 3.) Holders of Special Investors Resident Visa
LAW (C.A. no. 108 as amended by PD715) – (SIRV), Special Retirees Resident Visa (SRRV),
Foreigners may not be employed in certain Treaty Trades Visa, or Special Non-
“nationalized” industries; law provides and subjects Immigration Visa, who occupy any advisory,
reservation of ownership and control of such supervisory, or technical position in any
corporations to the 60% requirement, i.e. public establishment;
utility, natural resources; financing companies; 4.) Agencies, organizations, or individuals
however, media and advertising requires 100% whether public or private, who secure the
Filipino ownership and management (Consti) services of foreign professional to practice
• DOJ OPINION 143, series 1976: provides instances their professions in the Philippines under
when aliens may be allowed to engage in reciprocity and international agreements;
employment within nationalized industries: a.) 5.) Non-Indo Chinese Refugees who are asylum
where the DOJ Secretary specifically authorizes the seekers and given refugee status by the UN
employment of foreign technical personnel, or, b.) High Commissioner on Refugees (UNHCR) of
where the aliens are elected members of the Board the DOJ under the DOJ Department Order no.
of Directors or governing body of corporations or 49, 1998.
associations in proportion to their allowable 6.) Resident foreign Nationals seeking
participation in the capital of such entities employment in the Philippines (see D.O. no.
21-02 which suspends “until further notice”
the requirement for Resident Foreign
4
Re-check Codal; di nag-ma-match numbers e; Book 7: Title 1: Penal Nationals to secure AEP)
Provisions and Liabilities; 288 (Penalties) - 289 (Liable Officers of
Juridical Person); Title 2: Prescription; 290: Offenses: 3 years
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• D.O. 12-01 further, EXEMPTS the following from AEP national will redound to national
requirements: benefit.
1.) All members of the diplomatic services and - Understudy Program is no longer required for
foreign government officials accredited by the issuance of AEP
the Philippine Government; - G.R. Validity of AEP is for ONE YEAR unless
2.) Officers and staff of the international the employment contract, consultancy
organizations of which thePhilippine services, or other modes of engagement or
government is a cooperating member, and term of office for elective officers, provides
their legitimate spouses desiring to work in for a longer period;
the Philippines; - RENEWAL OF AEP: application must be filed
3.) Foreign nationals elected as members of the at least 15 days before its expiration;
Governing Board who do not occupy any other - EFFECTIVITY OF RENEWAL: one day after the
position, but have only voting rights in the expiration of previous permit; regardless of
corporation, and whether or not the renewal is granted before
4.) All foreign nationals granted exemption by or after the expiration of the previous
special laws and all other laws that may be permit;
promulgated by Congress • GENERAL RULE: PERMITS VALID ONLY FOR THE
POSITION AND EMPLOYER FOR WHICH THEY WERE
• Basis for issuing AEP: ISSUED; except in cases of holders of MULTIPLE
a.) Compliance by theapplicant POSITIONS IN ONE CORPORATION
employer or the foreign national with
the substantive and documentary Art. 42 – Submission of List
requirements; Any employer employing non-resident foreign nationals
b.) Determination of the DOLE Secretary on the effective date of this Code, shall submit a list of
that there is no Filipino national who such nationals to the Secretary of Labor within thirty
is competent, able and willing to do (30) days after such date indicating their names,
the job for which the services of the citizenship, foreign and local addresses, nature of
applicant is desired; employment and status of stay in the country. The
c.) Assessment of the DOLE Secretary Secretary of Labor shall then determine if they are
that the employment of the Foreign entitled to an employment permit.
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Private Sector Participation – The State shall encourage

BOOK TWO the active participation of various concerned sectors,
HUMAN RESOURCES DEVELOPMENT particularly private enterprises, being direct
TITLE I: participants in and immediate beneficiaries of a trained
MANPOWER DEVELOPMENT PROGRAM and skilled workforce, in providing technical education
CHAPTER 1 and skills development opportunities.
NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY
FOR THEIR IMPLEMENTATION TITLE II – TRAINING AND EMPLOYMENT OF SPECIAL
WORKERS
Articles 43 – 56; pertaining to National Manpower and
Youth Council has been replaced and absorbed by the Chapter 1: APPRENTICES
TESDA (Technical Education and Skills Development
Authority) created under RA7796 which was approved Art. 57 – Statement of Objectives
on August 25, 2994. Art. 58 – Definition of Terms
As used in this Title: a.) Apprenticeship – means any
For the complete copy of Republic Act 7796: The practical training on the job supplemented by related
TESDA Act of 1994, theoretical instruction; b.) An Apprentice is a worker
see Appendix II-1 of Azucena’s Labor Book who is covered by a written apprenticeship agreement
with an individual employer or any entities recognized
For the complete copy of the Implementing Rules for under this Chapter; c.) An Apprenticeable Occupation
R.A. 7796, means any trade, form of employment or occupation
see Appendix II-1.1. of Azucena’s Labor Book which requires more than three (3) months of practical
training on the job supplemented by related theoretical
Declaration of Policy: It is the declared policy of the instruction; (see R.A. 7796) d.) Apprenticeship
State to provide relevant, accessible, high quality and Agreement is an employment contract wherein the
efficient technical education and skills development in employer binds himself to train the apprentice and the
support of the development of high quality Filipino apprentice in turn accepts the terms of training.
middle-level manpower responsive to and in accordance
with Philippine development goals and priorities. Art. 59 – Qualifications of an Apprentice
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To qualify as an apprentice, a person shall:

(a) Be at least fourteen (14) years of Art. 61 – Contents of Apprenticeship Agreements
age; (but under the IRR, it’s 15 years)
(b) Possess vocational aptitude and • Apprenticeship need DOLE’s prior approval, or
capacity for appropriate tests; and Apprentice becomes regular employee
(c) Possess the ability to comprehend - Nitto Enterprises v. NLRC and R. Capili (G.R.
and follow oral and written no. 114337) September 29, 1995
instructions. - It is mandated that apprenticeship
Trade and industry associations may recommend to the agreements entered into by an employer and
Secretary of Labor appropriate educational an apprentice shall be entered only in
requirements for different occupations. accordance with the apprenticeship program
duly approved by the Minister of Labor and
Art. 60 – Employment of Apprentices Employment; hence, since the apprenticeship
• Apprenticeship is the arrangement and the period agreement between petitioner and private
when an upcoming worker undergoes hands-on respondent has no force and effect in the
training, more or less formal, to learn the ropes of a absence of a valid apprenticeship program
skilled job. It is usually the point of entry to the duly approved by the DOLE, private
world of work. respondent’s assertion that he was hired not
• Department Order no. 8; March 9, 1989 – DOLE as an apprentice but as a delivery boy
Policy on Apprenticeship; by virtue of which, the deserves credence.
DOLE is required to undertake the review of trades,
occupation, and jobs in all sectors of the economy Art. 62 – Signing of Apprenticeship Agreement
to determine the apprenticeability, after which it Art. 63 – Venue of Apprenticeship Programs
shall submit a list of apprenticeable occupations. Art .64 - Sponsoring of Apprenticeship Program
• The apprenticeable age under this Article is 14, but Art. 65 -Investigation of Violation of Apprenticeship
under the IRR, it’s 15, now under R.A. 7610 there is Agreement
an explicit prohibition on employment of children Art. 66 - Appeal to the Secretary of Labor
below 15 years of age, although the said law Art. 67 - Exhaustion of Administrative Remedies
recognizes certain exceptions, an apprenticeship is Art. 68 - Aptitude Testing of Applicants
not included in the enumeration. Art. 69 - Responsibility for Theoretical Instruction
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Art. 70 - Voluntary Organization of Apprenticeship labor. The case does not deal with a labor
Programs, Exceptions dispute on conditions of employment
Art. 71 - Deductibility of Training Costs between an alleged employer and employee…
Art. 72 - Apprentices without Compensation reliance of petitioner on the IRR is misplaced.
An IRR on labor cannot be used by an
• Implementing Rules (Section X, Rule 14) provide, in employer as a shield to avoid liability under
relation to Art. 72: There is no employer-employee the substantive provisions of the Civil Code.
relationship between students on one hand and
schools, colleges or universities, on the other,
where there is a written agreement between them Chapter II – LEARNERS
under which the former agree to work for the latter
in exchange for the privilege to study free of Art. 73 – Definition
charge, provided the students are given real Learners are persons hired as trainees in semi-skilled
opportunities, including such facilities as may be and other industrial occupations which are non-
reasonable and necessary to finish their chosen apprenticeable and which may be learned through
courses under such agreement. practical training on the job in a relatively short period
- Filamer Christian Institue v. Hon. of time which shall not exceed three (3) months.
Intermediate Appellate Court, et a, (G.R. no.
75112) August 17, 1992 Art. 74 – When Learners may be hired
- Section 14, Rule X, Book III of the IRR of the Learners may be hired when:
Labor Code was promulgated by the Secretary a.) no experienced workers are available,
of Labor and Employment only for the b.) the employment of learners is necessary to
purpose of administering and enforcing the prevent curtailment of opportunities; and
provisions of the Labor Code on conditions of c.) the employment does not create unfair
employment. Particularly, Rule X of Book III competition in terms of labor costs or impair
provides guidelines on the matter by which or lower working standards.
the powers of the Labor Secretary shall be
exercised; on what records should be kept or Art. 75 – Learnership Agreement
maintained, etc… Rule X is merely a guide to
the enforcement of the substantive law on
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Finals Reviewer
Any employer desiring to employ learners shall enter Any violation of this Chapter or its IRR’s shall be subject
into a learnership agreement with them, which to the general penalty clause provided for in this Code.
agreement shall include:
a.) the names and addresses of the learners; • Learnership v. Apprenticeship:
b.) the duration of the learnership period, BOTH: Training periods for jobs requiring skills
which shall not exceed three (3) months; that can be acquired through actual work
c.) the wages or salary rates of the learners experience; both learner and apprentice may be
which shall begin at not less than seventy-five paid wages twenty-five (25%) percent lower than
(75%) percent of the applicable legal the applicable legal minimum wage
minimum wage; and
d.) a commitment to employ the learners if they Learnership Apprenticeship
so desire, as regular employees upon - training in semi-skilled - training in highly-skilled
completion of the learnership. All learners job; industrial occupations job; job found in highly-
who have been allowed or suffered to work that require training for technical industry; training
during the first two (2) months shall be less than 3 months period exceeds 3 months
deemed regular employees if training is - job is non-apprenticeable - minimum period is 6
terminated by the employer before the end of because its practical skills months
the stipulated period through no fault of the can be learned in 3 (not 6) - no commitment to hire
learner. months an apprentice even after
The learnership agreement shall be subject to - commitment to hire a completion of period
inspection by the Secretary of Labor, or his duly learner after the period - prior DOLE approval
authorized representatives. - no need for prior required for hiring
approval from DOLE in apprentices
Art. 76 – Learners in Piecework terms of hiring
Learners employed in piecework or incentive-rate jobs
during the training period shall be paid in full for the Learner is not an apprentice, but an apprentice is
work done. considered a learner.
Art. 77 – Penalty Clause
Chapter III – HANDICAPPED WORKERS
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Art. 78 – Definition Art. 81 – Eligibility for Apprenticeship

Handicapped workers are those whose earning capacity Subject to the appropriate provisions of this Code,
is impaired by age, or physical or mental deficiency or handicapped workers may be hired as apprentices or
injury. learners if their handicap is not such as to effectively
impede the performance of job operations in the
Art. 79 – When Employable particular occupations for which they are hired.
Handicapped workers may be employed when:
a.) their employment is necessary to prevent • The MAGNA CART FOR DISABLED PERSONS- Republic
curtailment of employment opportunities; and Act no. 7277, March 24, 1992 – insures equal
b.) it does not create unfair competition in labor opportunities for disabled persons and prohibits
costs or impair or lower working standards. discrimination against them
Book 3
Art. 80 – Employment Agreement Conditions of Employment
Any employer who employs handicapped workers shall
enter into an employment agreement with them, which Title I
agreement shall include: Working Conditions and Rest Periods
a.) the names and addresses of the handicapped
workers to be employed; Chapter 1
b.) the rate to be paid the handicapped HOURS OF WORK
workers to be employed which shall be not
less than seventy-five (75%) percent of the Art. 82 – Coverage of Title 1
applicable legal minimum wage; • Employees in all establishments and undertakings
c.) the duration of the employment period; and whether for profit or not BUT NOT TO govt
d.) the work to be performed by the handicapped employees, managerial employees [those whose
workers. primary duty consists of the management of the
The employment agreement shall be subject to establishment in which they are employed or of a
inspection by the Secretary of Labor or his duly dept or subdivision thereof, and to other officers or
authorized representatives. members of the managerial staff], field personnel
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[refer to non-agricultural employees who regularly mere fact that an entity is a labor union
perform their duties away from the principal place does not mean that it cannot be
of business or branch office of the employer and considered an employer of the persons
whose actual hours of work in the field cannot be who work for it; even unregistered
determined with reasonable certainty], members of association may be deemed an
the family who are dependent on him for support, employer
domestic helpers, persons in the personal service of LC defines an employer as any person
another, workers who are paid by results who acts in the interest of an employer
• Employer-employee must exist; existence is in/directly; the law does not require an
determined by law, not by contract employer to be registered in order to
Elements of employment relationship be considered as an employer (Orlando
(4-fold test) Farm Growers vs NLRC)
1. selection and engagement of the No employment relationship  job
employee contracting or independent contractor
2. payment of wages Employer is free to regulate, accdg to his
3. power of dismissal own discretion and judgment, all
4. employer’s power to control the aspects of employment, including
employee with respect to the hiring, work assignments, working
means and methods by which methods, time, place and manner of
the work is to be accomplished work, tools to be used, processes to be
aka control test followed, supervision of workers,
evidence of employment: id, vouchers, dismissal and recall of workers so long
SSS registration, memorandum, as the they are exercised in good faith
appointment letters, payrolls, for the advancement of the employer’s
organization charts interest and not for the purpose of
pakiao workers are considered employees defeating or circumventing the rights
as long as the employer exercises of the employees under special laws or
control over the means by which such under valid agreements
workers are to perform their work • Excluded employees
(Zamudio vs NLRC)
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1. govt employees governed by CSC rules EXCEPT • Working while sleeping  may be considered
govt employees of govt agencies and govt working if it is subject to interruption or takes place
corporations incorporated under the Corporation under conditions substantially less desirable than
Code would likely to exist at employee’s home
2. managerial employees or staff • “on call”  compensable; “within reach through
3. outside or field sales personnel cellphone or other contact device”  not
4. employer’s family members compensable
5. domestic helpers • Travel from home to work  not worktime EXCEPT
6. persons rendering personal service when employee receives an emergency call outside
7. workers paid by result of his regular working hours and is required to travel
to his regular place of business or some other work
Art. 83 – Normal Hours of Work site, all of the time spent in such travel is working
• 8-hour law  prescribes the minimum time
• travel away from home  travel that keeps an
Art. 84 – Hours worked employee away from home overnight; worktime
• Prelim and postlim activities are deemed performed • attendance at lectures, meetings, training programs
during working hours, where such activities are and other similar activities not considered worktime
controlled or required by the employer and are if it is outside employee’s regular working hours, it is
pursued necessarily and primarily for the employer’s voluntary, and the employee does not perform
benefit productive work during such attendance
• Whether waiting time constitutes working time • time spent in grievence meetings considered
depends on the circumstances of each case  worktime
whether it is spent predominantly for the employer’s • regular full-time teachers are entitled to salary and
benefit or for the emmployee’s; considered as emergency cost-of-living allowance during semestral
working time if waiting is an integral part of his work breaks (UPang Faculty Union vs UPANG)
or if the employee is required or engaged by an
• a laborer need not leave the premises of the
employer to wait
workplace in order that his rest period shall not be
• Working while eating  not compensable if counted; it is enough that he ceases to work (case in
completely freed from duites even though he point: seamen)
remains in the workplace
• hours worked: employer has burden of proof
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• NSD not waivable since it is founded on public policy

Art. 85 – Meal Periods • Burden of proof of payment rests upon the employer
• GR: not compensable
E: predominantly spent for employer’s benefit or Art. 87 – Overtime Work
where it is less than 60 minutes (but in no case shall • Compensation for work rendered in excess of 8 hours
it be shorter than 20 minutes) a day
Continuous shifts • Multiply the overtime hourly rate by the number of
E to E: shortened break is upon employee’s request hours worked in excess of 8
Requisites: • Receipt of overtime pay does not preclude right to
1. agree in writing to a shortened meal break NSD
and waive overtime pay for such shortened • Overtime rate based on regular wage (excludes
period money received in different concepts and other
2. no diminution in the salary and other fringe fringe benefits)
benefits
• How “work day” is counted  24-hour period which
3. work does not involve strenuous physical
commences from the time the employee regularly
exertion and are provided w/ coffee breaks
starts to work
4. value of the benefits derived by the
• Work in excess of 8 hours w/n a work day is
employees from the proposed work
considered as overtime regardless of whether this is
arrangement is equal to or commensurate
performed in a work shift other than at which
with the compensation due them
employee regularly works
5. overtime pay of the employees will become
due and demandable if ever they are • Estoppel and laches cannot be invoked against
permitted or made to work beyond 4:30pm employees in an action for the recovery of
6. effectivity of proposed working time compensation for overtime work
arrangement shall be of temporary duration as • Overtime pay in arrears retroacts to the date when
determined by DOLE services were actually rendered
• GR: NO waiver or quitclaim of overtime pay
Art. 86 – Night Shift Differential E: waiver is in exchange for certain benefits
• not less than 10% of regular wage for each hour of • Agreement that overtime pay will be integrated in
work performed b/w 10pm to 6am basic salary is not per se illegal; however, there
should have been express agreement to that effect
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and that the mathematical result shows that the 2. necessary to prevent loss of life or property or
agreed legal wage rate and the overtime in case of imminent danger to public safety
pay,computed separately, are equal to or higher due to impending emergency caused by
than the separate amounts legally due accidents, fire, flood, typhoon, earthquake,
• Compressed workweek (45 hours in 5 days) as an epidemic, or other disaster or calamity
exception to the non-waiver of overtime pay if the 3. urgent work to be performed on the
following requisites are present: machines, ect. In order to avoid loss or
1. agree in writing to work 9 hours a day from damage to employer
Monday to Friday 4. to prevent loss or damage to perishable goods
2. no diminution in the salary and other fringe 5. to prevent serious obstruction ot prejudice to
benefits the business or operations of the employer
3. value of the benefits that will accrue to the 6. to avail of favorable weather or
employees under the proposed work schedule is environmental conditions where performance
more than or at least commensurate with or or quality of work is dependent thereon
equal to the one-hour overtime pay that is due
them during weekdays Art. 90 – Computation of Additional Compensation
4. overtime pay of the employees will become due • regular wage shall include cash wage only, w/o
and demandable if ever they are permitted or deduction on account of facilities provided by
made to work on weekend employer
5. work does not involve strenuous physical exertion
and are provided w/ coffee breaks
6. effectivity of proposed working time arrangement Chapter II
shall be of temporary duration as determined by WEEKLY REST PERIODS
DOLE
Art. 91 – Right to weekly rest day
Art. 88 – Undertime not offset by Overtime ☼ rest period of not less than 24 hours after every 6
Art. 89 – Emergency Overtime Work consecutive normal work days
1. country is at war or when any national or local
emergency has been declared by Congress or Art. 92 – When employer may require work on a rest
the President day
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1. necessary to prevent loss of life or

property or in case of imminent danger to Chapter III
public safety due to impending emergency HOLIDAYS, SERVICE INCENTIVE LEAVES, AND SERVICE
caused by accidents, fire, flood, typhoon, CHARGES
earthquake, epidemic, or other disaster or
calamity Art. 94 – Right to (Regular) Holiday
2. urgent work to be performed on the 100 ‫ﺺ‬% add’l compensation
machines, ect. In order to avoid loss or 10 ‫ ﺺ‬regular holidays
damage to employer 1. New Year (Jan.1)
3. abnormal pressure of work due to special 2. Maundy Thursday
circumstances, where the employer cannot 3. Good Friday
ordinarily be expected to resort to other 4. Araw ng Kagitingan (Apr 9)
measures 5. Labor Day (May 1)
4. prevent loss or damage to perishable goods 6. Independence Day (Jun 12)
5. nature of work requires continuous 7. National Heroes Day (Last Sunday of Aug)
operations and stoppage of work may 8. Bonifacio Day (Nov 30)
result in irreparable injury or loss to the 9. Christmas Day (Dec 25)
employer 10. Rizal Day (Dec 30)
st
6. similar circumstances as determined by 11. Eidul Fitras - 1 day after 30-day fasting period
DOLE Sec. 12. Eidul Adha – reg’l holiday in the ARMM
Art. 93 – Compensation for rest day, Sunday, or ‫ ﺺ‬Muslim Holidays

holiday work – shall be observed in the provinces of
☼ at least 30% of regular wage Basilan, Lanao del Norte/ Sur,
☼ when such holiday falls on his rest day, add’l Maguindanao, North Cotabato, Sultan
compensation of at least 50% Kudarat, Sulu, Tawi-tawi, Zamboanga del
☼ CBA may stipulate higher premium pay Norte/Sur, cities of Cotabato, Iligan,
☼ 3 special days (holidays)  Nov.1, Dec. 31, Aug. 21 Marawi, Pagadian, and Zamboanga, and in
 30% such other Muslim provinces and cities as
may be created. Upon proclamation by the
103
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President, Muslim holidays may also be if unworked  covered employees are entitled to
officially observed in other provinces and at least 200% of their basic wage even if said
cities holiday is unworked
– PP 1198  all private corps, offices, and if worked  entitled to compensation equivalent
agencies operating within the provinces to at least 300% of his basic wage
and cities enumerated herein shall observe ‫ﺺ‬ double holiday rule for monthly-paid employees  if
the legal holidays as proclaimed, provided, worked, additional 100% of regular salary
that all Muslim employees working outside ‫ﺺ‬ successive regular holidays  an employee may not
of the Muslim provinces and cities shall be be paid for both holidays if he absents himself from
st
excused from work during the observance work on the day immediately preceding the 1
st
of Muslim holidays as recognized by law, holiday, unless he works on the 1 holiday, in which
nd
without diminution of salary during said case, he is entitled to his holiday pay on the 2
period holiday
– Both Muslim and Christian employees ‫ﺺ‬ holiday pay of hourly-paid faculty members during
within the Muslim areas may not report for semestral break
work on the designated Muslim holidays  employer-school is exempted from paying
1. amun jadid (new year) hourly paid faculty members their pay for regular
2. mauled-un-nabi (birthday of Mohammed) holidays, whether the same be during the regular
3. lailatul isra wal mi rai (nocturnal journey and semester or during semestral, Christmas, or Holy
ascension of the Prophet Mohammed) Week vacations
4. id-ul-fitr (hari raja pausa) – end of fasting season  employer-school must pay said faculty
5. id-ul-adha (hari raha haji) members their regular hourly rate on days
declared as special holidays or for some reason
‫ ﺺ‬a legal holiday falling on a Sunday creates no legal classes are called off or shortened for the hours
obligation for the employer to pay extra, aside from they are supposed to have taught, whether
the usual holiday pay, to its monthly-paid employees extension of class days be ordered or not; in case
(Wellington Investment vs Trajano) of extensions said faculty mems shall likewise be
‫ ﺺ‬double holiday: 2 regular holidays on same day paid their hourly rates should they teach during
said extension (JRC vs NLRC)
‫ﺺ‬ field personnel not entitled to holiday pay
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‫ ﺺ‬Vacation and sick leaves are voluntary benefits

Art. 95 – Right to Service Incentive Leave ‫ ﺺ‬Leave credits are normally converted into their cash
‫ ﺺ‬coverage: every employer who has rendered at least equivalent based on the last prevailing salary
1 year of service shall be entitled to a yearly SIL of 5 received by the employee
st
days with pay ‫ ﺺ‬Paternity leave  available only for the 1 four
‫ ﺺ‬SIL not applicable to those already enjoying the deliveries of the legitimate spouse with whom the
benefit herein provided, those enjoying vacation husband is cohabiting; delivery includes childbirth,
leave with pay of at least 5 days, and those miscarriage, or abortion
employed in establishments regularly employing less  shall not exceed 7 calendar days for each
than 10 employees delivery
1“ ‫ ﺺ‬year of service”  service within 12 months,  entitled to full pay
whether continuous or broken, reckoned from the  non-commutation of benefits
date the employee started working, including Requisites:
authorized absences and paid regular holidays, 1. he is an employee at the time of delivery
unless the number of working days in the of his child
establishment as a matter of practice or policy, or 2. he is cohabiting with his spouse at the
provided ini the employment contract is less than 12 time she gives birth or suffers a
months, in which case said period shall be miscarriage
considered as 1 year for the purpose of determining 3. he has applied for paternity leave
entitlement to the SIL 4. hi wife has given birth or suffered a
‫ ﺺ‬SIL of part-time workers  proportionate to the miscarriage
daily work rendered and the regular salary, ‫ ﺺ‬Maternity leave  see discussion under Art 133 of LC
respectively (DOLE Explanatory Bulletin dated ‫ ﺺ‬Parental (Solo Parent) Leave  not more than 7
January 2, 1996) working days each year
‫“ ﺺ‬on contract” workers entitled to SIL  non-convertible to cash if unused
‫ ﺺ‬Commutation of SIL valid; basis of conversion shall  requisites:
be the salary rate at the date of commutation; 1. has rendered at least 1 year of service
availment and commutation of the SIL benefit may 2. has notified employer of the availment
be on a pro-rata basis thereof w/n a reasonable period of time
‫ ﺺ‬SIL is mandatory 3. has presented a Solo Parent ID to employer
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 who is a solo parent?

1. woman gives birth as result of rape or
crime against chastity, provided she keeps Title II – WAGES
and raises the child Chapter 1 – Preliminary Chapter
2. spouse has died
3. spouse is detained or is serving sentence Art. 97 - Definitions:
for at least 1 year a. person
4. legally separated or de facto separated for b. employer
at least 1 year, provided s/he is entrusted c. employee
with custody d. agriculture
5. physical/mental incapacity of spouse e. employ
6. abandoned by spouse for at least 1 year f. wage
7. unmarried mother/father g. fair and reasonable value
8. any other person who solely provides
parental care and support to a child  WAGE – applies to the compensation for manual
9. any family mem who assumes the labor, skilled or unskilled, paid at stated times,
responsibility of head of family and measured by the day, week, month, or
season
Art. 96 – Service Charges - indicates inconsiderable pay for a lower
‫ ﺺ‬covered employees  except those receiving more and less responsible character of
than P2,000 a month employment
‫ ﺺ‬in case service charge is abolished, the share of - includes sales commissions
covered employees shall be considered as integrated - includes facilities (include articles or
in their wages services for the benefit of the employee or
‫ ﺺ‬basis shall be the average monthly share of each his family but shall not include tools of the
employee for the past 12 months immediately trade or articles or service primarily for
preceding the abolition or withdrawal of such the benefit of the employer or necessary
charges to the conduct of the employer’s business)
‫ ﺺ‬pooled tips shall be monitored, accounted for, and or commodities (employer may
distributed in the same manner as service charge provide
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Finals Reviewer
them but he may deduct their values from Requirements for deducting value of
the employee’s wages facilities (Mabeza v NLRC)
1. proof must be shown that such
distinguish facilities from supplements facilities are customarily furnished
(criterion: purpose) by the trade
supplements – constitute extra 2. provision of deductible facilities
remuneration or special privileges or must be voluntarily accepted in
benefits given to or received by the writing by the employee
laborers over and above their ordinary 3. facilities must be charged at fair
earnings or wages. and reasonable value
Facilities – items of expense
necessary for the laborer’s and his family’s -
existence and subsistence so that by  SALARY – denotes a higher degree of
express provision of law, they form part of employment, or a superior grade of services, and
the wage and when furnished by the implies a position or office
employer are deductible therefrom - suggestive of a larger and more permanent
or fixed compensation for more important
HOWEVER, re: meals and snacks  office
deduction cannot be more than 70% of the - excludes allowances
value of the meals and snacks, provided
that such deduction must be authorized in Songco v NLRC – sales commissions and
writing by the employee; remaining 30% allowances should be included in computation of
has to be subsidized by the employer separation pay
Lodging facility – value is determined to be  GRATUITY – something given freely, or without

the cost of operation and maintenance, recompense; a gift; something voluntarily given
including adequate depreciation plus in return for a favor or services; a bounty; a tip
reasonable allowance - that which is paid to the beneficiary for
past services rendered purely out of the
generosity of the giver or grantor
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- not intended to pay a worker for actual commodities, including agro-processing,

services rendered trading and services, whose total assets
including those arising from
 fair day’s wage for fair day’s labor loans but exclusive of the land on
 equal pay for equal work (think ISAE v which the particular business entity’s office,
Quisumbing case) plant and equipment are situated, shall not
be more than P3M.
7. wage orders issued by the wage boards under
 Agricultural work  work on the soil and its A 99 and 122
harvests
 if highly mechanized and carries on processing Chapter 2 – Minimum Wage Rates
activities not merely incidental to purely farming
operations, deemed industrial employees Art. 99 - Regional Minimum Wages
 nature of work classifies a worker Agri and non-agri  prescribed by the Regional
Tripartite Wages and Productivity Boards
Art. 98 – Application of Title 2 (Wages)
Not applicable to: MINIMUM WAGE
1. farm tenancy or leasehold - lowest wage rate fixed by law that an
2. domestic services employer can pay his worker
3. persons working in their respective homes in - adopted to reduce the evils of the
needle work or any cottage industry “sweating system”
4. workers employed in any establishment duly - raises standard of competition among
registered with the National Cottage employers
Industries and Development Authority - employer’s ability to pay is immaterial;
5. workers in any duly registered cooperative can’t exempt himself to pay minimum
when so recommended by the Bureau of wages
Cooperative Development - acceptance by an employee of the wages
6. Barangay micro business enterprise  any paid him without objection does not give
business entity engaged in the production, rise to estoppel precluding him from suing
processing, or manufacturing of products or for the difference between the amount
received and the amount he should have
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Finals Reviewer
received pursuant to a valid minimum ex: rank-and-file to supervisory  lose overtime

wage law pay and other benefits under A 82-96 but A 100 is
not violated (Nat’l Sugar Refineries Corp v NLRC)
Art. 100 – Prohibition against elimination or 5. contingent or conditional benefits/bonus
diminution of benefits  bonus is an amount granted and paid to an
 NONDIMINUTION OF BENEFITS employee for his industry and loyalty which
contributed to the success of the employer’s
Requisites for application of nondiminution rule business and made possible the realization of
1. grant of the benefit is founded on a policy or has profits; bonus is not a demandable and
ripened into a practice over a long period enforceable obligation BUT it is when made part
2. the practice is consistent and deliberate of the wage or salary or compensation
3. the practice is not due to error in the  equity or long practice as basis of bonus – even
construction or application of a doubtful or if bonus is not demandable; long and regular
difficult question of law concession; fixed hope
4. the diminution or discontinuance is done  services rendered as basis of bonus – right is
unilaterally by the employer not defeated by a “release and quitclaim” upon
termination (Marcos v NLRC – redundancy
Extent of the Rule benefits))
1. food and meal allowances  reduction of bonus not diminution of benefits;
2. noncontributory retirement plan no profit, no bonus. Granting of bonus is basically
3. monthly emergency allowance a management prerogative (Traders Royal Bank v
NLRC)
Exceptions to the non-diminution rule  bonus as productivity incentives; employee’s
1. not established practice share is in the nature of salary bonus
2. benefit on reimbursement basis proportionate to increases in current productivity
3. negotiated benefits (i.e. CBA) over the average for the preceding 3 consecutive
4. reclassification of position/promotion made in years; “bonus” is not gratuity but the computed
good faith result of joint planning and effort; claimable only
on the basis of predefined output level
TH
 PD 851 – 13 MONTH PAY
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- issued during the Martial Law, bonus of 1/12 of basic salary plus
requires all employers to pay their difference)
rank-and-file employees receiving - If the CBA did provide for bonus in
a basic salary of not more than graduated amounts depending on
P1000 a month, regardless of the the length of service of the
th
nature of employment, a 13 employee, bonus provided in the
month pay not later than CBA was meant to be in addition
December 24 of every year to the legal requirement
- President Aquino removed the (Universal Corn Products v NLRC –
th
P1000 ceiling, entitled to 13 graduated Christmas bonus)
month pay all rank-and-file - Absence of an express provision in
employees, regardless of salary the CBA obligating the employer
th
rate, but still excluding to pay the employees a 13 month
managerial or supervisory pay is immaterial; PD 851 is
th
employees mandatory, 13 month pay is
- “equivalent” (i.e. Christmas deemed written in contract
bonus, mid-year bonus, profit- - Supplements or other employee’s
sharing payments, and other cash benefits or favorable practice not
th
bonuses amounting to not less substitute for 13 month pay
th
than 1/12 of the basic salary but - Computation of 13 month pay –
shall not include cash and stock 1/12 of basic salary within a
dividends, cost-of-living calendar year
allowances and all other
allowances enjoyed by the Basic salary – include all
employees, as well as non- remunerations or earnings paid by
monetary benefits) or bonuses an employer to an employee for
th
may be credited as 13 month pay services rendered but may not
(Nat’l Federation of Sugar Workers include cost-of-living allowances,
v Ovejera – year-end productivity profit-sharing payments and all
allowances and monetary benefits
3B – 2006-2007
Finals Reviewer
which are not considered or their total earnings during

integrated as part of the basic the calendar year on both
salary of the employee; their fixed and guaranteed
- overtime pay and other wage and commissions (Phil.
remunerations are excluded Agricultural and Industrial
as part of basic salary and in Workers’ Union v NLRC –
th
the computation of the 13 drivers and conductors)
month pay (San Miguel Corp v - commissions  recompense,
Inciong) compensation, reward of an
- commissions are included or employee, agent, salesman,
excluded, depending on what executor, broker or bailee,
kind of commissions are when the same is calculated
involved; if wage-or-sales- as a percentage on the
percentage type [intimately amount of his transactions or
related tothe extent or on the profit of the principal
energy of an employee’s - teacher’s overload pay
endeavors], includible in the performed during or within
th
13 month pay computation the 8 hours in a day [the load
(Phil. Duplicators v NLRC); if in excess of the normal load
profit-sharing or productivity of private school teachers
bonus type [something extra as prescribed by DECS or
for which no specific the policies, rules, and
additional services are standard of particular private
rendered by any particular schools; work in excess of
employee], excluded (Boie- the regular teaching
Takeda Chemicals v Dela load; may be
Serna) performed within or outside 8
- employees w/ guaranteed hours in a day] part of basic
wages/commissions entitled th
th pay for computing 13 month
to 13 month pay based on pay
3B – 2006-2007
Finals Reviewer
- an employee who has employees; no intention to

resigned or whose services cover persons working in the
were terminated at any time govt service (Alliance of Govt
before the time for payment Workers v Minister of Labor
th
of the 13 month pay is and Employment)
entitled to this monetary
benefit in proportion to the Art. 101 – Payment by Results
length of time he worked  Workers paid by results [pay is calculated not on
during the year, reckoned the basis of time spent on the job but of the
from the time he started quantity and quality or the kind of work they turn
working during the calendar out] grouped into 2:
year up to the time of his 1. those whose time and performance is
resignation or termination supervised by the employer – embodies an
from service (Int’l School of element of control and supervision over
Speech v NLRC) the manner as to how the work is to be
- distressed employer may be performed
th
exempt from paying the 13 ex: piece-rate worker
month pay only upon prior 2. those whose time and performance is
authorization from Labor Sec unsupervised
(Dentech Manufacturing Corp ex: pakiaw and takay workers
v NLRC)
- difference of opinion on how  payment by result not determinative of er-ee
th
to compute the 13 month rel., only a method of compensation
pay does not justify a strike  basis of output rate – the performance of an
th
- nonpayment of 13 month ordinary worker of minimum skill or ability [aka
pay is not an issue of unfair the average worker of the lowest producing group
labor practice but one of representing 50% of the total number of
money claim employees engaged in similar employment in a
- PD 851 only applies to private particular establishment, excluding learners,
employers and their
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apprentices, and handicapped workers employed  Variant Jurisprudence on Piece-rate workers’

therein entitlement to statutory benefits
 unsupervised piece-rate workers are not entitled a. Makati Haberdashery v NLRC
to night differential pay and service incentive Held:
leaves - workers are regular employees
 re: yearly commutation or cash conversion of the although paid on piece-rate basis
service incentive leave of piece-rate workers  - entitled to minimum wage
based on their average daily earnings during the - as regular employees, they can
particular year of service which can be derived claim cost-living allowances, 13
th
by dividing the amount earned during the year by month pay

the actual number of working days or the - not entitled to service incentive
statutory minimum rate, whichever is higher leave pay and holiday pay because
 in the absence of any agreement which provides they fall under one of the
otherwise, the amount earned during the year exceptions stated in Section 1(d),
may exclude COLA, overtime pay, and premium rule 5, Implementing Regulations,
pay, holiday pay, night differential pay and Book 3, Labor Code for being paid
company fringe benefits at a fixed amount for performing
 computation of service incentive leave of piecework irrespective of time
rate worker  get actual wage earned for 1 year, consumed in the performance
divide by 12 to get average monthly earnings thereof
then divide by the average number of actual b. Labor Congress v NLRC
worked days in a month, multiply result by 5; if Held:
average daily rate is less than P36, basis for the - piece-rate employees are entitled
computation is P36, the minimum rate outside to night shift differential, holiday
Metro Manila. pay, service incentive leave,
th
 Other entitlements: premium pay, and 13 month pay
1. holiday pay because they do not fall within
th
2. 13 month pay (if he has rendered at least the group of workers who “are
1 month work or service during the field personnel and other
calendar year) employees whose time and
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performance is unsupervised by allege adherence to the standards

the employer, including those who set forth in Sec 8, Rule 7, Book 3
are engaged on task or contract  Summation of benefits payable to Piece-rate
basis, purely commission basis, or workers
those who are paid a fixed amount 1. minimum wage
for performing work irrespective 2. service incentive leave of 5 days with pay
of the time consumed in the 3. night differential pay
performance thereof.” 4. holiday pay
- entitled to overtime pay if their 5. meal and rest periods
output pay rate is not shown to be 6. overtime pay (conditional)
in accordance with the standards 7. premium pay (conditional)
prescribed under the th
8. 13 month pay
Implementing Rules [Rule 7-A, 9. other benefits granted by law, by individual or
Sec.5] or by the Secretary of Labor collective agreement or company policy or
- further, piece workers are practice
specifically mentioned as being
entitled to holiday pay (Sec 8-B, IF output rates conform with the standards
Rule 4, Book 3) prescribed by the Labor Code, employer is not
- Revised Guidelines on the required to grant the piece-rate workers the
th
Implementing of the 13 Month benefits under the Rule on Hours of Work nor
Pay Law, in view of the to pay the wage differentials if their daily
modifications to P.D. 851 by earnings do not amount to the applicable
Memorandum Order No. 28, statutory minimum daily wage.
clearly exclude the employer of
piece-rate workers from those
exempted from paying the Chapter III Payment of Wages
th
13 month pay
- Entitled to overtime pay because Art 102. Forms of Payment
respondent company did not Forms of payment
1. Proof of wage payment
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Place of Payment
Where the employee alleges non-payment of wages
and/or commission, the employer has the burden to GR – should be near place of undertaking
prove payment. E -
1. Payment cannot be effected at or near the
Jimenez et al v. NLRC (1996) place of work:
Facts: a. bec of deterioration of peace & order
Employee Juanatas sued for full payment of his 20% b. by reason of actual or impending
commission of the gross income. There were cash emergencies caused by fire, flood,
advances may by the employee as evidenced by a epidemic or other calamity
notebook presented by the employer. rendering payment thereat
impossible;
Held: 1. When employer provides free transpo back &
Although the employer submitted a notebook forth
showing the alleged vales, the same is inadmissible 2. Under any analogous circumstances, provided:
considering the it is not properly accomplished – a. Time spent by employee in collecting their
undated, unsigned and is thus uncertain as to its wages shall be considered as compensable
origin and authenticity. hours worked
The employer has the burden of proof to establish No employer shall pay his employees
full payment of wages. in any bar, night or day club, drinking
establishment, massage clinic, dance hall or
The Implementing Rules require every employer to other similar places, or
keep a payroll – showing length of time to be paid, in places where games are played with stakes of
the pay rate, amt actually paid, etc. The employee money or things representing money; except in
should sign the payroll the case of persons employed in said places
Art. 103. Time of Payment 2. Payment through banks

Art. 104. Place of Payment Upon written permission of the majority of the
employee or workers concerned,
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Entities with 25 or more employees and another contractor C to handle certain aspect of
Located within 1 km radius to a bank construction project. B & C hires people.
Shall pay wages & other benefits through GR -
any of said banks Employer-employee relationship (see Art 82)
Within period of payment of wages fixed Bet B and his workers
by Labor Code Bet C and his workers
(Wage Rationalization act RA 6727) A is not an employer to B or C
to their respective groups
Whenever applicable and of workers
Upon request of a concerned worker or union, E – employment arrangement unlawful
Bank shall issue a cert of the record of payment A is indirect employer
of wages
Of particular worker/workers D.O. 18-02
For a particular pay period. Contracting or subcontracting as an arrangement
(Wage Rationalization act RA 6727) whereby a principal agrees to put out or farm out
with a contractor or subcon the eprformance or
Payment through ATM allowed. completion of a specific job, work or service within
(under a labor advisory dated Nov a definite or predetermined period, regardless of
25, 1996) whether such job, work or service is to be performed
or completed within or outside the premises of the
Art. 105. Direct Payment of Wages principal.
Art. 106. Contractor or Subcontractor
Art. 107. Indirect Employer 4 features of legit contracting
Art. 108. Posting of Bond i. Parties – principal enters into a contract with
Art. 109 Solidary Liability subcon.
Contractor of Subcontractor ii. Specific Job – performance or completion of a
1. Contracting and Subcontracting in general specific job, work or service
iii. Period – definite or predetermined period
Co. A engaged in resto business concludes contract iv Location – performed within or outside principal’s
with const co. B which in turn hires the services of premises
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Substantial capital or investment – capitalization,

1.2 Trilateral relationship tools, eqpt, implements, machineries and work
3 parties – principal, contractor and contractual premises, actually and directly used by the
employees contractor or subcon in performance or completion
of the jobm work or service contracted out.
Bet principal and contractor – Civil code & pertinent
commercial law Neri v. NLRC (1993)
Bet contractor & employee – Labor code and special Law does not require both substantial capital and
labor laws investment in the form of tools, eqpt, machineries,
etc.
st
2. 1 set of prohibition – Labor only contracting (DO Filipinas Synthetic Fiber v. NLRC (1996) Where the
18-02) contractor is a going concern duly registered with
the SEC with substantial capitalization of P1.6M,
L.o.C = EE + (CE1 or CE2) P400T of which is actually subscribed, such
EE = essential element  arrangement is merely contractor cannot be considered as engaged in LoC
to recruit, supply or place workers to perform a being a highly capitalized venture.
job, work or service for the principal
CE1 = confirming element 1  lack of substantial Control – right reserved to the person for whom the
capital or investment and performance of service of contactual workers are performed, to
activities directly related to the principal’s main determine not only the end to be achieved but also
business the manner and means to be used in reaching that
CE2 = confirming element 2  contractor does end.
not exercise control over the performance of the
employees Insular Life v. NLRC (1989)
The fact that the complainant worker was required
L.o.C. by presumption of law  a full-pledged to solicit business exclkusively for the alleged
legitimate labor contractor has to be registered with employer could hardly be considered as control in
DOLE, otherwise he is presumed to be an L.o.C. labor jurisprudence. Under the memo issued by the
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Insurance Commission, insurance agents are barred 2.4 Consequence of LoC – Agency hired employee
from serving more than 1 insurance company. becomes entitled to benefits under CBA of client
company
AFP MBAI v.NLRC (1997) Tabas v. California Manufacturing Co (1989)
Exclusive servicing does not necessarily mean being The existence of an employer-empoyee relation is a
under the control, or employment of the entity question of law and being such, cannot be made the
being served. subject of agreement.
Employee is reinstated with the full status and rights
2.3 Consequence of LoC – Worker supplied by of regular employees; all benefits as may be
Agency becomes employee of client company provided by existing CBA or other relations or by
PBCOM v. NLRC (1986) law.
There is of course nothing illegal about hiring
persons to carry out “a specific project or 3. Summary of prohibited labor contracting
undertaking the completion or termination of which
(was) determined at the time of the engagement of
the employee, or where the work or service to be nd
4. 2 set of prohibitions – Arrangements that violate
performed is seasonal in nature and the employment public policy (DO 18-02)
is for the duration of the season. Not LoC but are likewise prohibited because they
contravene public policy:
Given te circumstances of this case, CESI was Prohibitions:
engaged in LoC vis-à-vis the petitioner bank. The a) Contracting not done in good faith and not
bank is liable to the employee as if the employee justified by the exigencies of the business and
had been directly employed not only by CESI but also the same results in the termination of regular
by the bank. But the bank may in turn proceed employees and reduction of work hours or
against CESI to obtain reimbursement of, or some reduction or splitting of the bargaining unit
contribution to, the amounts which the bank will b) Contracting with cabo
have to pay to Orpiada. c) Contracting with in house agency
d) Contracting bec of strike or lockout
e) Contracting that constitutes ULP under Art
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RD
5. 3 set of prohibitions – Exploitative acts Rosewood Processing
Taking undue advantage of the economic If the liability is in the nature of a penalty, such as
situation or lack of bargaining strength of the backwages and separation pay because of a wrongful
contractual employee or undermining his security dismissal, the liabilithy should be solely that of the
of tenure or basic rights, or circumventing the contractor if there is no proof that the principal
provisions of regular employment, in any of the ff conspired with the contractor in committing the
instances: wrongful dismissal of the contractor’s worker.
i) in addition to his assigned functions,
requiring the contractual employee to 7. Legitimate Contracting – Independent
perform functions done by regular Contractor/Job Contracting
employees Legitimate when the ff circumstances concur:
ii) Requiring him to sign as a precondition to i) Contractor carries on a distinct and
employment/continuance: antedated independent business & undertakes to
resignation letter; blank payroll; waiver of perform job, work or service on its own
labor standards incl min wage, social or account and under its own resp, accdg to its
welfare benefits; quitclaim own manner and method and free from the
iii) Contract with period of employment control and direction of the principal in all
shorter than term of contract bet principal matter connected with the perf of work
& contractor/subcon, unless contract is except as to the results thereof
divisible into phases for w/c substantially ii) Contractor has substantial capital or
different skills are reqd & this known to investment
employee at time of engagement iii) Contractual agreement assures contractual
employees entitlement to all labor,
6. Extent of employer’;s liability in invalid occupational safety and health standards,
contracting and violation of other pohibitions right to self organization, security of tenure,
social and welfare benefits.
Liability is immediately and directly imposed upon
the principal, as if directly hired by the employer. In legitimate or valid contracting, what is contracted
(Broadway Motors v. NLRC) is the performance of a job and the contractor is an
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independent businessman capable of doing the job Where the peddler shall have the right to employ his
by his own means and methods. (Andovo v. MRR) own workers, shall post a bond to protect the
manufacturer against losses, shall be responsible for
rd
An independent contractor is one who exercises damages caused to 3 persons, shall obtain
independent employment and contracts to do a necessary licenses and permits and bear the
piece of work accdg to his own methods and without expenses incurred in the sale of soft drinks is not a
being subject to control of his employer except as to contract of employment.  independent
the result of the work. (Mafinco Trading v. Ople) contractors.
To restate, the significant factor in determing the Commission Agent

delationship of the parties is the presence or Insular Life v. NLRC
absence of supervisory authority to control the Under the contract, Basiao is not an employee of
method and the details of performance of the Insular life but a commission agent, an independent
service being rendered and the degree to which the contractor whose claim for unpaid commissions
principal may intervene to exercise such control should have been litigated in an ordinary civil
(AFP MBAI v. NLRC). action.
7.1 Summary of Legitimate Labor Contracting Messengerial/Janitorial Service

Legitimate when: Rhone-Poulenc Phils v. NLRC
i) contractor is a job contractor and not a labor The respondents themselves admitted that they
only contractor were selected and hired by CSI and were assigned to
ii) properly registered in accordance with DO 18- Union Carbide. [Union Carbide was bought by
02 Rhoune Poulenc.]
does not fall under Sec 5 or 6 of DO 18-02. The janitors drew their salaries from CSI which
exercised control over them. Moreover, CSI had the
7.2 Examples of Independent Contractor power to assign its janitors to various clients and to
pull out.
Dealership
Mafinco Trading Corp v. Ople Independent Operator
Ushio v. NLRC
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Severino is one of those independent, free lance necessaru tp carry oiut the company’s merchandizing
operators who offer services to customers of auto activity.
parts shops along Banawe.
The power to control the employee’s conduct is But in this case, applying the 4-fold test in
absent, with respect to the means and methods by determining employer-employee relationship, the
which his work was to be accomplished. status of Admark as the true employer of the
petitioners is further established.
Private respodent was free to offer his services to
other stores along Banawe. 9. Extent of Principal’s liability in legit contracting
Contractor considered to be the employer of the
7.3 Judicial Notice of Job Contracting contractual employee for purposes of enforcing the
Neri v. NLRC provisions of the Labor cCode and other Social
Judicial notice of general practice adopted in govt & legislation. (DO 18-02)
privateinstitutions of hiring independent
contractings to perform special services – janitorial, The principal shall be solidarily liable with the
security or even technical or other specific services. contractor in the event of any violation of the
provisions of the Labor Code, including failure to pay
8. A manpower company may be a LoC in one case wages. (DO 18-02).
but an independent contractor in another
Coca Cola Bottlers v. Hingpit 9.1 As to payment of wages/money claims When a
st
In 1 case, it failied to prove that Lipercon has contractor fails to pay the wages of his employees
substantial capital, investment, tools, etc. In in accordance with the Labor Code, the employer
present case, Lipercon established its character as who contracted out the job becomes jointly and
an independent contractor. severally liable with the contractor to the extent of
the work performed under the contract.  as if
Escario v. NLRC such employer were the employer of the
In earlier case of Tabas v. CMC, Livi was determined contractor’s employee. (PBCOM v. NLRC)
to be an LoC. But reliance of Tabas case is
misplaced because Livi was a mere placement Legislated wage increases are deemed amendments
agency that had simply supplied CMC with manpower to the contract. (Rosewood Processing; also NFA)
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d) Self organizations, CBA, peaceful concerted

9.2 As to other violations action
Under DO 18-02, Sec 7 par 1, indirect employer is e) Security of Tenure
solidarily liable.
10.1 Security of Tenure
Rosewood Processing v. NLRC In case of pre-termination of contract bet principal
Liability does not extend to the payment of & contractor – governed by applicable laws
backwages and separation pay of employees who Expiration of contract bet principal & contractor –
were constructively or illegally dismissed by thec not entitled to separation pay
ontractor – no showing that principal conspired in
effecting illegal dismissal. 11. Registration of Contractors
An order to pay backwages and separation pay is Registration of contractor with DOLE regional office.
invested with a punitive character such that an An unregistered contractor is presumed to be a
indirect employer should not be made liable without labor-only contractor.
a finding that it had committed ot conspired in the
illegal dismissal. Art. 110 Worker Preference in case of bankruptcy
Solidary Liability - Limitation – to extent of work Worker preference in case of bankruptcy

performed under contract, to perf of any work, task Prereq- declaration of bankruptcy or judicial liquidation
job or project, to extent of their civil liability on of employer’s business
payment of wages. Unpaid wages earned prior to declaration/liquidation
st
shall be given 1 preference for payment, even ahead
10. Rights of contractual employees of claims of govt.
Contractual employees entitled to all rights and Preference even to claims of govt for taxes (DBP v.
privileges due a regular employee as provided under NLRC)
labor code to include:
a) safe and healthgul working conditions Coverage of Preference
b) Labor standards Termination pay, separation pay, all other monetary
c) Social security and welfare benefits claims.
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Art. 111 Atty’s Fees d. Art 1708 CC: wages not subject to
Attorney’s fees execution or attachment, except for debts
1. Atty’s fees assessed” incurred for food, shelter, clothing and
a. cases of unlawful withholding of wages medical attenda.ce
b. arising from CBA negotiations e. Art 1709 CC: Employer shall neither seize
(Reahs Corp) nor retain any tool or other articles
2. Awarded Atty’s fee may not exceed 10%, but belonging to the laborer.
between lawyer and client quantum meruit may
apply (TRB EU v. NLRC) Art. 113. Wage Deduction
3. Non lawyers not entitled to atty’s fees (Five J Wage deduction
Taxi v. NLRC) Authorized deductions by law:
4. Since the union president is not the lawyer for a. Value of means and other facilities
the workers, he cannot be allowed to share b. Premium paid by employer where insured with
in the atty fees. (Amalgated Laborers Assoc v. employee’s consent
CIR) c. Union to check off recognized by employer/
authorized in writing by indiv employee
5. Pao Lawyers d. Employee is indebted to employer, due &
PAO lawyers disqualified from being awarded atty demandable
fees (Lambo v. NLRC) e. Subject to exection for debts incurred for
food, shelter clothing and medical attendance
Chapter IV Prohibition Regarding Wages f. Withholding tax
g. Salary deductions  cooperative
Art. 112. Non-interference in disposal of wages h. SSS, Medicare, Pag-ibig
1. Civil Code Provisions
a. Art 1705 CC: paid in legal currency rd
Payment to 3 person
b. Art 1706 CC: withholding of wages, except Authorized in writing by employee
for a debt due, shall not be made by the Employer agrees to make deduction
employer Employer must not receive any pecuniary benefit,
c. Art 1707 CC: Labor’s wages shall be a lien directly or indirectly from transaction.
on goods manufactured or work done.
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Art. 114. Deposits for Loss or Damage Acts under Art 118 are broad, and can lead to a ULP
Art. 115. Limitations case if employer retaliated against testifying
Deductions for Loss or Damage employee. If ULP, striekable.
(1) employee clearly shown to be responsible for
loss or damage Reprisal for Silent Testimony
(2) employee given ample opprotunity to show Art 118 equally applies to implicit or unspoken
cause why deduction should not be mde testimony by an employee.
(3) deduction fair and reasonable and shall not
exceed actual loss or damage Art. 119. False Reporting
(4) deduction not exceed 20% of employee’s
wages in a weel
Chapter V. Wage studies, wage agreements and
Deductions for absences wage determination
Deductions for unpaid absences are allowed.
Art. 120 Creation of National Wages and Productivity
Illegal Deposit Commission
Art. 114 provides the rule on deposits for loss or National Wages and Productivity Commission created by
damage to tools, materials or eqpt supplied by RA 6727.
employer. It does not permit daily deposits which
taxi drivers are required to make to defray any Art. 121. Powers and Functions of the Commission
shortage in their “boundary”. No Showing that the Art. 122. Creation of the RTWPB
DOLE Sec recognized such deposit as a “practice” in
taxi industry. Hence illegal. (5-J Taxi v. NLRC) Regional Tripartite Wages and Producticity Boards
Composed of:
Art. 116 Withholding of wages and kickbacks DOLE Regional Director
prohibited NEDA Regional Director
Art. 117. Deduction to Ensure employment DTI Regional Director
Art. 118 Retaliatory Measures 2 – workers
2 – employers
Are retaliatory measures (Art 118) striakeable?
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While the RTWPB has the power to issue wage orders i. Effects on employment generation and
under Art 122 (b) of the Labor Code, such orders are family income
subject to the guidelines prescribed by the National j. Equitable distribution of income and
Wages and Productivity Commission (NWPC), who has wealth
the power to prescribe the rules and guidelines for the
determination of appropriate wages in the country. Wage distortion – situation where an increase in
prescribed wage rates results in the elimination or
severe contraction of intentional quantitative
Art. 123 Wage Order differences in wage of salary rates among employee
Wage Order groups, obliterating the distinctions as to skills, length
Takes effect after complete publication in at least 1 of service or other logical bases of differentiation.
newspaper of gen circulation in region.
Not be disturbed for a period of 12 months from Distortion adjustment formula (Metro Bank v. NLRC):
effectivity.
Public Hearing reqd Minimum wage / actual salary = % x prescribed increase
Wage increase cannot be retroactive to effectivity of = distortion adjustment
wage order (Cagayan Sugar Milling v. Secretrary of
Labor) See also equitable bank case
Art. 124. Standards/Criteria for Min Wage Fixing Art. 125 Freedom to Bargain
Standards/Criteria for Min wage fixing Art. 126 Prohibition against Injunction
a. Living Wage Art. 127. Non-Dimunition of Benefits
b. Consumer price index
c. Cost of living
d. Needs of workers and their families Chapter VI Administration and Enforcement
e. Induce industries to invest in
countryside Art. 128. Visitorial and Enforcement Power
f. Improvements in standards of living If employer-employee relationship still exists – regional
g. Prevailing wage levels director has power to order and administer, after due
h. Fair return of capital
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notice and hearing, compliance with labor standards

provision of Labor Code/other laws Labor Standards Cases
DOLE Regional Director exercises both visitorial and
DOLE regional director must endorse case to Labor enforcement power over labor standard cases –
arbiter emplowered to adjudicate money claims, provided
Where employer contests finding of labor standards employer-employee relationship exists and finding are
and welfare officers and not contested by employer (Maternity Children’s
Raises issues which cannot be resolved without Hospital v. sec of labor)
considering evidentiary matters
That are not verifiable in the normal course of Art. 129. Recovery of wages, simple money claims
inspection. and other benefits
Money claims arising from complaint/routine inspection
Regional director can enforce a labor standards law Regional director refers case to Labor Standards and
even if the compliance issue is not raised in the Welfare Officer for field inspection. LSWO to submit
complaint. (Aboitiz Shipping v. dela Serna) report to Regional Director through the Chief of the
Labor Standards Enforcement Division (LSED) with 24 hrs
See also Univ of Immaculate Conception case after investigation or within a reasonable period as
determined by Regional Director.
But Regional director without authority to declare an
order or law unconstitutional; only duty to enforce the Restitution
laws, which stands valid. Plant Level restitution may be effected for money
claims not exceeding P50T. Report submitted to
Double Indemnity Regional Director for verification and confirmation.
Fine of double prescribed wage increase when employer
refuses or fails to pay prescribed adjustment in wage Compromise agreement
rates. (RA 6727). In writing, signed by parties in the presence of Regional
Based on unpaid benefits, where benefits defined to be Director or his duly authorized rep.
prescribed wage rates which employer failed to pay
upon effectivity of wage order, exclusive of other wafe Hearing
related benefits.
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Where no proof of compliance submitted by employer

after 7 days from receipt of inspection, Regional Most call centers are exempt  DOLE Secretary
director to summon employer & complainants to a exemption (under Art 131 (g))
summary investigation.
Art. 132 Facilities for Women
Enforcement under Art 128 are beyond injunctive power
of an inferior court. Art. 133. Maternity Leave (obsolete)
Maternity leave benefits (now under SSS law)
Appeal Pre-req: at least 3 monthly contributions in 12 month
Appealable to DOLE sec. Then to CA through certiorari. period immediately preceding semester of childbirth or
miscarriage:
DO 57-04 New system for enforcement of labor laws 60 days salary credit
3 approaches 78 days in case of caesarian delivery
(1) self-assessment – voluntary compliance applicable
for shops >= 200 workers or those with CBA Paternity Leave (RA 8187) – legit married, living with
(2) Inespection – 10 to 199 workers; hazardous, spouse
construction projects; labor standards complaints
(3) advisory - < 10 workers; micro business enterprises; Maternity leave benefits apply to married or unmarried
not punitive; assistance to increase productivity; women.
relaxed
Art. 134. Family Planning Services; Incentives for
DOLE may delegate to Lgu the inspection of safety (ex Family Planning
boiler). Art. 135. Discrimination Prohibited
Title III Working Conditions for Special Groups of Discrimination prohibited

employees  solely on account of her sex
Chapter I Employment of Women RA 7192 provides that “the state recognizes the role of
women in nation-bldg and shall ensure the fundamental
Nightwork prohibition (Art 130) equality before the law of women and men. The State
Exceptions (Art 131) shall provide women rights and opportunities equal to
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that of men.” To attain this policy: (1) substantial effective control of the employer for a substantial
portion of Official Devt Funds set aside & utilized by period of time  condiered employee of such
agencies to support programs & activities for women; establishment
(2) All govt depts. Ensure that women benefit equally &
participate directly in devt programs & projects of said Zialcita v. PAL (1977) – OP decision
depts.; and (3) All depts. And agencies shall review & We cannot agree to the respondent PAL’s proposition
revise regulations, circulars, issuances and procedures that termination from employment of flight attendants
to remove gender bias therein. on account of marriage is a fair and reasonable standard
designed for their own health, safety, protection and
Art. 136. Stipulation against marriage welfare, as no basis has been laid therefore. Actually,
respondent claims that its concern is not so much
Stipulation against marriage against the continued employment of the flight
Nondiscrimination policy against women for T&C of attendant merely by reason of marriage but rather on
employment. the consequence of marriage – pregnancy. Xxx The
See star paper case sweeping intendment of the law, be it on special or
ordinary occupations is reflected in the whole text and
Prohibited acts: (Art 137) supported by Art 135 that speaks of nondiscrimination
1) Deny any woman employee benefits or on the employment of women.
dischrage woman for purpose of
preventing her from enjoying benefits PT&T v. NLRC
under this code Similar to the Zialcita case except that the employer
2) Discharge woman on acct of her did not admit that the employee was dismissed because
pregnancy she was married. The cause of the dismissal, the
3) Refuse admission of such woman upon employer insisted, was her dishonesty in stating in the
returning to work for fear that she may job application that she was single though in fact she
again be pregnant was not.
PT&T’s policy that married women are not qualified for
Art 138 Classification of certain women workers employment in PT&T is not only in derogation of the
Any woman working in any night club, cocktail lounce, provisions of Art 136 on the right of women to be free
massage clinic, bar or similar establishment, under the from any kind of stipulation against marriage in
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connection with her employment, but it likewise (2) education related

assaults good morals and public policy tending as it does (3) training related
to deprive a woman of the freedom to choose her
statusl, a privilege that by all accounts inheres in the Excluded:
individual as an intangible and inalienable right. Salewoman-Client relations but RPC, Independent Civil
Actions
Gualberto v. Marinduque Mining (1978) – CA Case Employee-employee but file case with company based
Whether pre-employment agreement or company on company rules
policy, the policy of the firm to consider, due to lack of
facilities for married women, female employees as
separated the moment they get married, is void. No Duty of employer or head of office
employer may require female applicants for jobs to To prevent or deter the commission of acts of sexual
enter into preemployment agreements that they would harassment and provide procedures for resolution or
be dismissed once they get married. prosecution of acts of sexual harassment
To promulgate rules and regulations prescribing
Art. 137. Prohibited Acts procedure for investigation of secual harassment cases
Art. 138. Classification of Certain Women Workers. and admin sanctions therefor
To create committee on decorum and investiation of
cases on sexual harassment
Sexual Harassment
RA 7877 BOOK FOUR
Victim may be male or female. HEALTH, SAFETY AND SOCIAL
WELFARE BENEFITS
Elements: DRR AIMA
Demand/Request/Require sexual favor Title I MEDICAL,
Authority, influence or moral ascendancy over victim DENTAL AND
OCCUPATIONAL SAFETY
Punishes sexual harassment if same is: Chapter I

(1) work related MEDICAL AND DENTAL SERVICES
103
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work-connected, BEFORE more extensive

medical and/or dental treatment can be
Article 156: FIRST-AID TREATMENT secured. It does not include continued
Article 157: EMERGENCY MEDICAL AND DENTAL treatment or follow-up treatment for any
SERVICES injury or illness.
Article 158: WHEN EMERGENCY HOSPITAL NOT o Workplace – OFFICE, PREMISES or
REQUIRED WORKSITE where the workers are
Article 159: HEALTH PROGRAM HABITUALLY employed and shall include
Article 160: QUALIFICATIONS OF HEALTH PERSONNEL the office or place where the workers who
Article 161: ASSISTANCE OF EMPLOYER have no fixed or definite worksite
REGULARLY REPORT for assignment in the
COMMENTS course of their employment.
o First Aider – any person trained and duly
The Implementing Rules in Book IV, Rule I, provide certified as qualified to administer first aid
details additional to those in the above codal provisions: by PHILIPPINE NATIONAL RED CROSS or any
other organization accredited with the
• Coverage: The Rule shall apply to ALL employers former.
whether operating for profit or not, including the • Medicines and Facilities:
Government and any of its political subdivisions o An employer shall keep in or about his
and government-owned or controlled workplace firs-aid medicines, equipment
corporations, which employ one or more workers and facilities prescribed by the
• Bureau of Dental Health Services of DOH: in Department of Labor 5 days from issuance
charge of the development of dental standards of regulation
o The list may be revised anytime by the
• Definition:
Bureau of Labor Standards, subject to
o First Aid Treatment – ADEQUATE,
approval of the Secretary of Labor.
IMMEDIATE, and NECESSARY, medical and
dental attention or remedy given in case • Emergency Medical and Dental Services:
of injury o sudden illness suffered by a
worker during employment, irrespective of Number of Medical and Dental Services
whether or not such injury or illness is Employees Hazardous Non-Hazardous
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Graduate First-aider, and may be one The Physician and

10 to 50 in a of the workers in the workplace AND the Dentist shall
workplace who has immediate access to the firs- stay in the
aid medicine prescribed in Section 3 premises of the
Exceeds 50 but Full-time Full-time First- workplace for at
not more than Registered Nurse aider IF a Nurse is least 8 hours a
200 not available day*
• Full-time Registered Nurse *Where the establishment has more than one
• Part-time Physician workshift a day, the required two-hour stay shall be
Exceeds 200 • Part-time Dentist devoted to the workshift which has he biggest
but not more • Emergency Clinic number of workers and they shall, in addition to the
than 300 The Physician and the dentist shall stay requirements of this Rule, be subject to call at
in the premises for at least 2 hours a anytime during the other workshifts to attend to
day.* emergency cases.
• Full-time • Full-time
Nurse Registered ** In all workplaces where there are more than one
Nurse workshift in a day, the employer shall, in addition to
• Full-time
the requirements of this rule, provide for the
Physician • Part-time
Physician services of a full-time first-aider for each workshift.
• Full-time
Exceeds 300 Dentist • Part-time
• Dental Dentist
• Emergency Hospital: An employer need not put
Clinic and Shall have same
Infirmary OR responsibilities as up and emergency hospital or dental clinic in the
Emergency those provided in following situations:
Hospital previous box o Urban Area – where there is a hospital or
with One dental clinic not more than 5 kilometers
bed away from the workplace OR which can be
capacity for reached by motor vehicle in 25 minutes of
travel
every 100
workers
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o Rural Area - the employer has facilities o Institute of Public

readily for transporting a worker to the Health of UP; OR
hospital or clinic in case of emergency o Any organization
o The employer must enter into a written accredited by the
contract with the hospital or dental clinic former
for the use thereof in the treatment of • Passed the examination
workers in case of emergency. given by the Board of
• Training and Qualifications of Medical and Dental Examiners
Personnel: • Licensed to practice
medicine in the Philippines
• Preferably a graduate of a
Physician training course in
Personnel Requirements occupational medicine
• Must be able to read and conducted by the
First-aider write o Bureau of Labor
• Completed a course in Standards
first-aid duly certified by o Institute of Public
the National Red Cross or Health of UP
any other organization o Or any organization
accredited by the same accredited by the
• Passed the examinations former
given by the Board of • Passed the examinations
Examiners given by the Board of
• Duly licensed to practice Examiners
nursing in the Philippines • Licensed to practice in the
Nurse and preferably with at Philippines
least 50 hours of training in Dentist • Preferably has completed a
occupational nursing training course in
conducted by occupational dentistry
o DOH conducted
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o Bureau of Dental Provided: that their dry docks,


Services of DOH garages, hangars, maintenance and
o OR any organization repair shops and offices, shall be
duly accredited by covered by this Rule
the former o Residential places exclusively devoted to
dwelling purposes
• Opportunity for Training: *GR: Department of Labor has jurisdiction to
• Hazardous Workplaces inspect all establishments, workplaces and
• Health Program undertakings.
• Medical and Dental Records Exception: Chartered cities may be
allowed to assume responsibility for technical
Chapter II OCCUPATIONAL HEALTH safety inspection upon compliance with such
AND SAFETY standards and guidelines as the Secretary of
Labor may promulgate
Article 162: SAFETY AND HEALTH STANDARDS
Article 163: RESEARCH *Technical Safety Inspection includes inspection
Article 164: TRAINING PROGRAMS for purposes of safety determination of boilers,
Article 165: ADMINISTRATION OF SAFETY AND pressure, wheels, internal combustion engines,
HEALTH LAW elevators (passenger and freight), dumbwaiters,
escalators, and electrical installations in all
COMMENTS workplaces.
The Implementing Rules in Book IV, Rule II, provide • Work Condition not covered by standards: Any
details additional to those in the above codal provisions: specific standards applicable to a condition,
practice, means, method, operation, or process
• Coverage: The Rule shall apply to ALL shall also apply to other similar work situations
establishments, workplaces and other for which NO specific standards have been
undertakings except: established.
o Those engaged in land, sea and air • Training of Personnel in safety and Health: Every
transportation employer shall take steps to train a sufficient
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number of his supervisors or technical personnel shall work as

in occupational safety and health. part-time safety
man. He shall
Number of Training be the
Employees Hazardous Non-Hazardous secretary of the
At least one of safety
the supervisors committee
or technical At least two of
personnel shall its supervisors
be trained in or technical
50 to 400 each occupational personnel shall
shift health and safety Over 200 workers be trained and
and shall be each shift one of them
assigned as part- shall be
time safety man. appointed full-
Such safety man time safety man
shall be the and secretary of
secretary of the safety
safety committee committee
At least two of therein.
its supervisors * The employment of a full-time safety man may not be
Over 400 workers shall be trained required where the employer enters into a written
per shift and a full time contract with a qualified consulting organization which
safety man shall shall develop and carry out his safety and health
be provided activities. Provided, that the consultant shall conduct
At least one of plant visits at least four hours a week and is subject to
its supervisors call any time to conduct accident investigations and is
or technical available during scheduled inspections or surveys by the
20 to 200 each men shall be Secretary of Labor or his authorized representatives.
shift trained who
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* The provisions of this Section shall be made mandatory

upon orders of the Secretary of Labor as soon as he is EMPLOYEES’ COMENSATION AND STATE
satisfied that the adequate facilities on training in INSURANCE FUND
occupational safety and health are available in the
Department of Labor and other public or private Chapter I
entities duly accredited by the Secretary of Labor POLICY AND DEFINITIONS
• General duties of workers: Article 166: POLICY

o Every worker shall cooperate with the
employer in carrying out the provisions of COMMENTS AND CASES
this Rule
o Every worker shall make us of ALL 1. OVERVIEW: WORKMEN’S COMPENSATIONS PROGRAM
safeguards and safety devices furnished in AND SIF
accordance with the provisions of this Rule
for his protection and the protection of Workmen’s Compensation is a general and
others and shall follow ALL instructions comprehensive term applied to those laws providing for
made by the employer in compliance with compensation for loss resulting from the INJURY,
the provisions of this Rule. DISABLEMENT, or DEATH of workmen through
• Duties of Other persons: Any person, including INDUSTRIAL ACCIDENT, CASUALTY or, DISEASE.
builders or contractors, who visits, builds,
innovates or installs devices in establishments or Compensation means the money relief afforded
workplaces shall comply with the provisions of according to the scale established under the statute, as
this Rule and all regulations issued by the differentiated from “compensatory damages”
employer in compliance with the provisions of recoverable in an action at law for breach of contract or
this Rule and other subsequent issuances, of the for tort
Secretary of Labor.
• Training Amount of Compensation generally determined in
accordance with a definite schedule, based on the loss
of earning power, the usual provision being for the
TITLE II payment of a specified amount at regular intervals over
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a definite period. Provision is also made, in most  Obviate uncertainties, delay, expense, and
instance, for the furnishing of medical, surgical, hardship attendant upon the enforcement of
hospital, nursing, and burial services in addition to court remedies
independently of the payment of compensation.  Transfer from the worker to the industry in which
he is employed, and ultimately to the consuming
Primary Purpose is to provide compensation for public, a greater proportion of the economic loss
disability or death resulting from occupational injuries due to industrial accidents and injuries.
or diseases, or accidental injury to, or death of,  Improve the relations between employers and
employees. It is for the benefit of the EMPLOYEES and employees by avoiding or reducing the friction
not the employer incident to litigation.
 Provide, not only for employees a remedy which
It is not Charity but a recognition of a moral duty and is both expeditious and independent of proof of
erection of it into a legal obligation of the PUBLIC not fault, but also for employers a liability which is
only of that of the employer. limited and determinate.
Based on the Idea that liability arising out of employer’s Statutorily given Right which both create and measure
negligence is inapplicable to modern conditions of the right
employment because of highly organized and hazardous
industries of modern times. The causes of injuries are Source of Compensation:
often so obscure and complex that it is usually 1. Direct Payment Statutes – payment by the
impossible to ascertain the fact to from an accurate employer
judgment. Further litigation causes expense and delays 2. Insurance Statutes
that defeats justice and antagonisms between employer a. require the employer to take out
and employee. Basically, the theory of negligence is insurance either with
discarded as the basis of liability, and in general a right i. an insurance bureau operated by
to compensation is given for all injuries incident to the the state
employment, the amount is limited to a given schedule. ii. private company
b. require and employer to contribute to a
Purpose compensation fund –
 Improve the economic status of the worker
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State Insurance Fund the Labor Code adopts the executory, appealable to the SC in limited
compensation fund type. All covered employers are cases
required to remit to a common fund a monthly b. If SSS or GSIS is reversed the two systems
contribution equivalent to one percent of the monthly cannot appeal to the high court.
salary credit of every covered employee. The employee
pays NO contribution into the fund; agreement to the 2. PD 626 AND ITS EFFECTIVE DATE
contrary is VOID and PROHIBITED.
PD 626 amended extensively the Labor Code
Compensation is in the form of medical supplies and provisions on ECC and SIF. It applies only
services and/or cash income if employee is unable to prospectively. Because it took effect on January 1,
earn because of injury of disease. Death benefits and 1975 it applies to illness contracted on or after that
funeral benefits are also given. date. For those contracted before said date the
applicable law is the workmen’s compensation act
Process: its commission was finally abolished on March 31,
1. Injury befalls the employee 1976.
2. Within 5 days must notify employer, if
notification is required, who in turn ,must enter 3. VALIDITY OF PD 626: NATURE OF THE STATE
notice in the logbook INSURANCE FUND
3. Within 5 days after entry report the sickness,
injury or death deemed work connected to: Jose B. Sarmiento vs. Employees’ Compensation
a. SSS in private sector or; Commission, et. al. - PD 626 does not infringe upon the
b. GSIS in public sector worker’s constitutional rights. The said new law
Note: The employer INITIALLY decided whether the discarded the concepts of “presumption of
injury, sickness or death is work related or not. compensability” and “aggravation” to restore what the
4. The claim is decided by the SSS or GSIS. Decisions law believes as a sensible equilibrium between the
of the two administering agencies are appealable employer’s obligation to pay and the employee’s right
to the Employees’ Compensation Commission, to receive reparation
which is the policy making body, within 30 days.
a. If the result of the appeal is favorable to The new law establishes a state insurance fund built up
the employee becomes final and by the contributions of employers base don the salaries
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of their employees. The injured workers does not have actuarially determined number of workers who would
to litigate his right to compensation. No employer probably file claims within any given year is important
opposes his claim. There is no notice of injury nor in insuring the stability of the trust fund and making
requirement of controversion. The sick worker simply certain that the system can pay its benefits due to all
files a claim with a new neutral ECC which then who are entitled and in the increased amounts fixed by
determines on the basis of employee’s supporting law. Thus, if diseases no intended by the law to be
papers and medical evidence whether or not compensated are inadvertently or recklessly included
compensation may be paid. The payment of benefits is the integrity of SIF is endangered.
more prompt. The cost of administration is low. The
amount of death benefits has also been doubled. 4. WORKMEN’S COMPENSATION ACT DISTINGUISHED
FROM EMPLOYEES’ COMPENSATION LAW
3.1.Trust Fund
Workmen’s Compensation Employees’ Compensation
It is now the trust fund and not the employer that Act Law
suffers if benefits are paid to the claimants who are not Presumption of Abolished
entitled under the law. The employer joins the Compensability – once it is
employee in trying to have their claims approved. The proven that injury or
employer is spared the problem of proving a negative disease arose in course of
proposition that the disease was not caused by employment
employment. Rule that if ailment Abolished
aggravated by work
3.2.Social Insurance employer becomes liable
Requires the employer to No need to controvert
Employees compensation is based on social security controvert the claim within because the claim is
principles. All covered employers throughout the 14 days from disability or against the SIF not the
country are required to contribute fixed and regular 10 days from knowledge employer
premiums or contributions to a trust fund for their otherwise considered
employees. Benefits are paid from this trust fund. At waived
the time the amount of the contributions was being
fixed, actuarial studies were undertaken. The
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The old law destroyed the parity or balance between the evidentiary details of his injury, or death, are
the competing interests of employer and employee with clearly established through duly issued medical
respect to workmen’s compensation. The balance was certifications on his injury or injuries, or death, by the
tilted unduly in favor of the workmen since it was attending physician or duly authorized representatives
possible to stretch the work-related nature of an of the hospital where he is brought for medical
ailment beyond the seemingly rational limits. treatment.
Under the present law for an employee to be entitled to 5. LIBERAL INTERPRETATION

sickness, injury or death benefits, it must be result form
or must have resulted: The ECC should adopt a liberal attitude in favor of the
1. Any illness definitely accepted as an occupational employee in deciding claims for compensability,
disease listed by the Commission especially where there is some basis in the facts for
2. Any illness caused by employment subject to inferring a work-connection to the accident. This kind
proof that the risk of contracting the same is of interpretation gives meaning and substance to the
increased by working conditions compassionate spirit of the law as embodied in Article 4
of the New Labor Code.
The list of occupational diseases is in Annex A of the
ECC Rules in the Appendix. However, it is not the intention of the legislature the
insurer against all accidental injuries which might
4.1.Presumptive Compensability for AFP Members happen to an employee while in the course of the
and Policemen employment, but only for such injuries arising from, or
growing out of, the risks peculiar to the nature of the
In a limited sense, Presumption of Compensability has work in the scope of the workmen’s employment or
been restored through Resolution No 3906, adopted on incidental to such employment, and accidents in which
July 5, 1988 by the ECC which states: it is possible to trace the injury to some risk or hazard
to which the employee is exposed in a special degree by
This board resolves, as it hereby resolves, to approve reason of such employment.
the adoption of a policy that the moment an AFP
member suffers a contingency, the presumption is that Article 167: DEFINITION OF TERMS
it is because of the nature of his work; provided that
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COMMENTS AND CASES two portions of the test can exclude clearly work-
related injuries.
1. COMPENSABLE WORK-RELATED INJURY DEFINED
Arising out of refer to the origin or cause of the
What is compensated is not the injury or the disease accident and are descriptive of its character
itself but the attendant loss or impairment of earning
capacity. In the course of the Employment – when it takes place
within the period of the employment, at a place where
Rule III, Section 1(a): the employee reasonable may be, and while he is
For the injury and the resulting disability or fulfilling his duties or is engaged in doing something
death to be compensable, the injury must be the result incidental thereto
of an employment accident satisfying all the following
grounds: Accident need not be foreseen or expected it is
1. the employee must have been injured at sufficient that after the event it appears to have its
the place where his work requires him origin in a risk connected with employment, and to have
to be; flowed from that source as a rational consequence.
2. the employee must have been performing
his official functions; and Nature and Degree of relation there is an existing
3. if the injury is sustained elsewhere, the conflict of views whether should be inherent to the
employee must have been executing an employment (conservative view) or it is sufficient that
order for the employer employee was exposed by reason of employment, not
necessary that inherent (liberal view). It has been
2. MEANING OF “ARISING OUT OF” AND “IN THE stated that an accident arise out of employment if it
COURSE OF” THE EMPLOYMENT ensues from a risk reasonably incident to the
employment, and if it is in some sense due to the
Although it has been said that the coverage formula is employment. Again, the view has been taken that an
composed of two separate tests, the basic concept of injury arises out of the employment if the employment
compensation is unitary and is best expressed by the is one of the contributing causes without which the
word, “work-connection.” An uncompromising accident which actually happened would not have
insistence on an independent application of each of the happened. The position has also been taken that an
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accident arises in the course of employment if it had its Where the primary injury is shown to have arisen in the
origin there in the sense that it was the end-product of course of employment, every natural consequence that
a force or cause set in motion in the course of flows from the injury likewise arises out of the
employment. employment, unless it is the result of an independent
intervening cause attributable to claimant’s own
No Precise Formula for Sphere of Employment: negligence or misconduct. Simply stated, all medical
Generally, time and place of and the circumstances consequences and sequels that flow from the primary
surrounding its occurrence. Sphere of Employment injury are compensable.
varies, dependent upon the nature of the work and
terms and conditions in the hiring contract. 3.1.Illustrative Case: Proximate Cause
Not necessary it should have occurred during hours of Belarmino vs. Employees’ Compensation Commission –
active labor or in premises or within control of The condition of the classroom floor caused Mrs.
employer, employment includes not only the actual Belarmino to slip and fall and suffer injury as a result.
doing of work, but also reasonable margin of time and The fall precipitated the onset of recurrent abdominal
space necessary to be used in passing to and form the pains which culminated in the premature termination of
place where the work is to be done, where the latter is her pregnancy with tragic consequences to her. Her fall
expressly included in the terms of employment on the classroom floor brought about her premature
delivery which caused the development of septicemia
3. PROXIMATE CAUSE postpartum which resulted in death. Her fall was the
proximate or responsible cause that set in motion an
It is the sufficient cause, which may be the most remote unbroken chain of events leading to her, demise. True,
of an operation chain. It must be that which sets the that she probably would not have suffered lacerations
others in motion and is to be distinguished from a mere of the vagina and would not have contracted the fatal
preexisting condition upon which the effective cause infection. But she is not to blame for her inability to
operates, and must have been adequate to produce the afford a hospital delivery and the services of a trained
resultant damage without the intervention of an doctors and nurses. Penury compelled the deceased to
independent cause. scrimp by delivering her baby at home instead of the
hospital.
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3.2.Arising Out/In the Course of Employment clock. But this doctrine, while it relaxes the workplace
factor does not dispense with the work-connection
Hinoguin vs. Employee’s Compensation Commission – requisite.
The death of Sgt. Hinoguin that resulted from his being
hit by an accidental discharge of his companion’s rifle GSIS vs. CA and F. Alegre – From the cases (Hinoguin vs.
arose out of and in the course of his employment as a ECC, Nitura vs. ECC and ECC vs. CA), it can be gleaned
soldier on active duty status in the AFP, and hence that the Court did not justify its grant of death benefits
compensable. The concept of “workplace” cannot merely on account of the rule that soldiers or
always be literally applied to a soldier on active duty policemen, as the case may be, are virtually working
status. A soldier must go where his company is round-the-clock. Note that the court likewise attempted
stationed. Sgt. Hinoguin and his companions had in each case to find reasonable nexus between the
permission to proceed to Aritao. This is a place where absence of the deceased from his assigned place of
soldiers have secured lawful permission to be and work and the incident that led to his death.
cannot be very different from a place where they are
required to go by their commanding officer. Hinoguin Obviously, the matter SPO2 Alegre was attending to at
and his companions were not on vacation leave. They the time he met his death that of ferrying passengers
are authorized to carry their firearms with which they for a fee, was intrinsically private and unofficial in
were to defend themselves if NPA elements happen to nature proceedings as it did from no particular directive
attack them. or permission from his superior officer. In the absence
A soldier should be presumed to be on official duty of such as in the case of Hinoguin and Nitura, or
unless he is shown to have clearly and unequivocally put peacekeeping nature of the act attended to by the
aside that status or condition temporarily by, e.g. going policeman at the time he died even without the explicit
on approved vacation leave. Even vacation leave may be permission or directive of a superior officer, as in
preterminated by superior officers. Alavaran, there is no justification for holding that SPO2
Alegre met the requisites set forth in the ECC
3.3.The 24-Hour Duty Doctrine and Its Qualifications; guidelines.
Moonlighting Policemen
At any rate the 24-hour duty doctrine serves more as an
Soldiers and policemen and even firemen by the nature after-the-fact validation of their acts to place them
of their work may be considered on duty round-the- within the scope of the guidelines rather than a blanket
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license to benefit them in all situations that may give excluded from the benefits of workmen’s compensation
rise to their deaths. In other words, the doctrine should acts.”
not be sweepingly applied to all acts and circumstances Exceptions:
causing the death of the police officer but only to those 1. Where the employee is proceeding to
which, although not on official line of duty, are or from his work on the premises of his
nonetheless, basically police service in character. employer
2. Where the employee is about to enter
3.4.The “24-Hour Duty” Doctrine Requires Work- or about to leave the premises of his
Connection; “Police Service” Activities employer by way of the exclusive
customary means of ingress and egress
Valeriano vs. Employees’ Compensation Commission and (Proximity Rule)
GSIS – Petitioner Valeriano was not able to demonstrate 3. Where the employee is charged, while
solidly how his job as a firetruck driver was related to on his way to or from his place of
the injuries he has suffered. That he sustained the employment or at his home, or during
injuries after pursuing a purely personal and social his employment, with some duty or
function – having dinner with some friends. Because he special errand connected with his
was neither at his assigned work place nor in pursuit of employment.
the orders of his superiors when he met an accident and 4. Where the employer, as an incident of
more importantly was not doing an act within his duty the employment, provides the means of
and authority as a firetruck driver, or any other act of transportation to and from the place of
such nature, at the time he sustained his injuries. There employment.
is not any reasonable connection between his injuries
and his work as a firetruck driver. Iloilo Dock & Eng’g. Co. vs. WCC – The point where
Pablo was shot was barely twenty meters away from the
4. INGRESS-EGRESS/PROXIMITY RULE main IDECO gate, certainly nearer that a stone’s throw
therefrom. The spot is immediately proximate to the
The general rule in workmen’s compensation law known IDECO’s premises. Considering the fact, and further
as “going and coming rule,” simply stated, is that “in facts that Pablo has just finished overtime work at the
the absences of special circumstances, an employee time, and was killed barely two minutes after dismissal
injured in, going to, or coming from, his place of work is from work and the place was immediately proximate to
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the place of work, the accident in question must be 1) The act of the employee of going to, or coming
deemed to have occurred within the zone of from, the workplace, must have been a
employment and therefore arose out of and in the CONTINUING ACT, that is, he had not been
course thereof. diverted therefrom by any other activity, and he
had not departed from his usual route to, or
Bountiful Brick Company vs. Giles – Employment from, his workplace; and
includes not only the actual doing of work, but 2) Re: an employee on an special errand, the
reasonable margin of time and space necessary to be special errand must have been official and in
used in passing to and from the place where the work is connection with his work.
to be done. If the employee be injured while passing,
with the express or implied consent of the employer, to 5.1.Accident on the Way to Work
or from his work by a way over the employer’s
premises, or over those of another in such proximity and Alano vs. ECC – Dedication was a school principal. Her
relation as to be in practical effect a part of the tour of duty was from 7:30am to 5:30pm. While waiting
employer’s premises, the injury is one arising out and in for a ride at a public plaza on her way to school, she
the course of the employment as much as though it had was bumped and run over by a speeding bus which
happened while the employee was engaged in his work caused her death. The deceased died while going to her
at the place of its performance. place of work. She was at the place where her job
necessarily required her to be if she was to reach her
5. “GOING TO OR COMING FROM WORK” RULE place of work on time. There was nothing private or
personal about her being at the place of the accident.
Resolution No. 3914-A, July 5, 1988 – extending the She was there because her employment required her to
compensable coverage of off-premises injury from near be there.
the premises up to the residence of the employee. The
resolution provides that an injury or death of a covered 5.2.Accident on the Way Home
member in an accident while he is going to, or coming
from, the workplaces, shall henceforth be duly Lazo vs. Employees’ Compensation Commission – Here
considered compensable provided the following Lazo left his station at the Central Bank several hours
conditions are established definitely: after his regular time off, because the reliever did not
arrive, and so he was asked to go on overtime. After
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permission to leave was given, he went home. There is fact that street perils are common to all mankind is
no evidence that eh deviated from his usual, regular immaterial
homeward route or that interruptions occurred in the
journey. Employment includes not only the actual doing In fine, the general rule is that the accident should have
of the work, but a reasonable margin of time and space occurred at the place of work and this is known as the
necessary to be used in the passing, with the express or “direct premises rule.” Exceptions among others are the
implied consent of the employer, to or from his work by “Coming-and-going rule” and the “Ingress and
a way over the employer’s premises, or over those of egress/proximity rule
another in such proximity and relation as to be in
practical effect a part of the employer’s premises, the 7. INCIDENTS OF EMPLOYMENT
injury is one arising out of and in the course of the
employment as much as though it had happened while It is settled that injuries sustained in connection with
the employee was engaged in his work at the place of acts which are reasonably incidental to the employment
its performance. are deemed as arising out of such employment.
1) Acts of personal ministration for the comfort or
6. INJURY AT PLACE OF EMPLOYMENT NOT NECESSARY convenience of the employee
ELEMENT OF COMPENSABILITY 2) Acts for the benefit of the employer
3) Acts done to further the goodwill of the business
For an injury to be compensable, it is not necessary that 4) Slight deviations from work, from curiosity or
the cause therefore shall take place within the place otherwise
employment. If a workman is acting within the scope of 5) Acts in emergency
his employment, his protection “in the course of”
employment usually continues regardless of the place of 8. ACTS OF MINISTRATION
injury
Acts of Ministration are those done by a person for the
The use of streets by the workman merely to get to or purpose of satisfying the call of nature, such as:
from his work stands on a different footing altogether, quenching his thirst, relieving himself by way of
but as soon as it is established that the work itself urination or excretion etc. They are deemed to be
involves exposure to the perils of the streets, the incidents of employment and necessary to the health of
workman can recover for any injury so occasioned. The
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the employee, so that injuries sustained thereby are It has been held that an injury received at a union
compensable. meeting held during a lunch period at the plant for the
purpose of electing a shop steward, the shop steward
8.1.Rest or Refreshment system being recognized by the employer in its contract
with the union, was not an injury arising out of and in
The general rule is that injuries occurring to an the course of employment
employee during an intermission or break for rest or
refreshment arise in the course of the employment and 9. ACTS FOR THE BENEFIT OF EMPLOYER
are compensable. Such rule is not affected by the fact
that the employee is paid by the hour and receives no The relation of master and servant is ordinarily
pay for the period covered by such intermission. suspended during the period that the employee is off
Whether an employee, by resting during work hours, duty and. Therefore, the general rule is that injuries
departs from, abandons, or breaks his employment so as occurring before or after regular working hours are not
to deprive himself of the right to compensation for any within the course of employment. However, an injury
injury sustained while so resting generally depends upon sustained by an employee outside his regular working
whether such resting, in view of all the circumstances is hours or during a temporary stoppage or cessation of
reasonable incident to the employment. work may, nevertheless, under some circumstances, be
compensable as arising out of and in the course of the
8.2.Lunch Period employment, and is generally held to be so where the
employee was at the time engaged in the performance
Thus, while generally an accidental injury to an of some service for the benefit of the employer in
employee is not covered by workmen’s compensation as connection with his usual duties.
being one arising out of and in the course of
employment if it occurs OFF the employer’s PREMISES 9.1.While Doing Work at Home
while the employee is going or coming from lunch on
UNPAID TIME, there are exceptions Injuries sustained by an employee at his own home or
upon his own premises, in connection with the
8.3.Union Meeting performance of the duties of his employment, are
generally held to be compensable where such work is
done there pursuant to the terms of the contract,
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express or implied, or pursuant to the direction or transportation. This is because the company vehicle is
request of the employer, but not where it is there an extension of its premises
performed voluntarily by the employee for his own
convenience or benefit. 12. SPECIAL ERRAND
RULE
10. ACTS DURING
EMERGENCY An injury sustained by an employee outside the
company premises is compensable if his being out is
According to many authorities the following are injuries covered by an office order or a locator slip or pass for
arising out of and in the corus of his employment and official business.
entitling the employee to compensation:
1) Outside the scope of his usual duty 13. WHILE LIVING, BOARDING, OR LODGING ON
a. Which the employer has expressly ordered PREMISES OF EMPLOYER, OR AT WORKING PLACE
to do by someone authorized to direct him
as to his work or; The mere fact that an employee was living on the
b. Even in the absence of orders when such employer’s premises at the time of injury does not
act is reasonably necessary or incidental to ordinary of itself, render such injury compensable as
his regular work, particularly where an arising out of or in the course of the employment where
emergency existed such residence on the employer’s premises is merely
c. Even without emergency, direct orders or permissive and not required, or where the injury results
reasonable necessity, if it was done in the from a risk or danger which is not reasonable incidental
furtherance of the employer’s business or to employment.
in pursuance of a habit or custom
14. WHILE
11. EXTRA-PREMISES TRAVELING
RULE
The right to compensation depends, as in other cases
a.k.a. Shuttle Bus Rule – Where a company which generally, upon whether the injury results from a risk
provides the means of transportation in going to and which is inherent in the nature of the employment, or
coming from the place of work is liable for the injury which is reasonably incidental thereto, or which the
sustained by employees while on board said means of employee is specially exposed, and upon whether the
employee, at the time of the occurrence of the
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accident, was engaged in the exercise of some functions 14.3. Effect of Mingling of Purposes of Employer
or duties reasonably necessary or incidental to the and Employee; Dual Purpose
performance if the contract of employment, or, if not
actively engaged, whether he was at the place where he Dual Purpose Doctrine considers as compensable an
was authorized or required by such contract to be. injury that an employee sustains while on a trip
undertaken for the benefit of the employer even if in
14.1. Where Employee Uses Own Vehicle Which the course thereof the employee pursues also a personal
He Also Uses in Performance of Duties purpose
In some cases in which it appeared that an employee Resolution No. 99-08-0469, August 31, 1999 – the
was using his own vehicle at the time he was injured in doctrine may be applied in the adjudication of
an accident while going to or from work, and that he employees compensation claims. The application,
used such vehicle in the performance of his duties to his however, is subject to the following guidelines:
employer, it was held that his it was held that such
injuries arose out of and in the course of employment. The Test in the applicability of the dual purpose
doctrine:
14.2. Effect of Deviation from Route, Schedule,
or Mode of Travel The test is that is ordinarily employed for
determining liability in such a case is that if
Non Compensability of Deviation depends upon the the work of the employee tends to create
Extent, Purpose and Effect Thereof - An unauthorized necessity for travel, he or she is deemed in the
deviation may preclude recovery of compensation for an course of employment, albeit the employee
injury caused by an added peril to which the employee serves at the same time some personal
is thereby exposed during the period of the deviation, purpose. The requirement is that the services
but the compensability of an injury occurring after the of the employer is at least a concurrent cause
deviation has ended and the employee is again in the of the trip of the employee
course of his employment is not ordinarily affected
thereby. 15. EMPLOYER-SPONSORED
ACTIVITIES The Test
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person then and there present would have met

Whether the recreation was for the employee’s irrespective of his employemtn, that accident is one
exclusive benefit, or whether the employer had “arising out of the employment” of the person so
some interest in the activity. Where an employee injured. Employer is held liable for compensation
is injured while at recreation during a temporary because were it not for the order the employee would
cessation of work, the injury is compensable as not have been at said position or location which
arising out of and in the course of employment exposed him to the said danger.
where the recreation indulged was fostered and
encourages by the employer to the end of In investigating whether or not the death of an
efficiency of the service. employee arose out of his employment, all of the
circumstances present in the case should be taken into
Recreational Activities fall under the so-called “special consideration in order to be able to determine whether
engagement rule” which is one of the exceptions to the or not a causal connection exist between his death and
“direct premises rule.” This exception covers field trips, the conditions under which he necessarily had to fulfill
intramurals, outings, and picnics when initiated or his duties. Liberal Interpretation
sanctioned by the employer. Accidents befalling
employees on those occasions are compensable. 17.
*Considered as an incident of employment ASSAULT
16. ACTS OF GOD OR FORCE Assault although resulting from a deliberate act of the
MAJEUR slayer, is considered an “accident” within the meaning
of the Workmen’s Compensation Act, since the word
General Rule: The employer is not responsible for “accident” is intended to indicate that “the act causing
accidents arising from force majeur or an act of God, the injury shall be casual or unforeseen, an act for
when the employee has not been exposed to a greater which the injured party is not legally responsible”
danger than usual.
Where the duties of an employee entail his presence (at
Exception: Positional and Local Risks, when one in the a place and a time) the claim for an injury there
course of his employment is reasonably required to be occurring is not to be barred because it results from a
at a particular place at a particular time and there risk common to all others…unless it is also common to
meets an accident, although one which any other
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the general public without regard to such conditions, 3. Jobs which expose the employee to direct
and independently of place, employment, or pursuit. contact with lawless and irresponsible
members of the community, like that of a
Jurisprudence is to the effect that injuries sustained by bartender; and
an employee while in the course of his employment, as 4. Work as bus driver, taxi driver, or street car
the result of an assault upon his person by another conductor.
employee, or by a third person, no question of the
injured employee’s own culpability being involved, is
compensable where, from the evidence presented, a 18. NPA VICTIMS; PRESUMPTIVE COMPENSABILITY
rational mind is able to trace the injury to a cause set in
motion by the nature of the employment, or some Quebec vs. GSIS, ECC Case No. 4310, promulgated
condition, obligation or incident therein, and not by November 9, 1988: The moment an AFP member
some other agency. suffers a contingency, the presumption is that it is
because of the nature of his work. This policy is
When a quarrel had its origin at work, injury from “adopted because of certain serious peace and order
assault committed outside the work premises is deemed problems of the country, more particularly the
compensable. The SC reasoning that it was merely a insurgency problem, it has become generally
continuation or extension of the quarrel that begun perceptible that on account of the nature of their
within; that continuity of the case had been so work, members of the AFP have become “marked
combined with continuity in time and space “that the men” insofar as insurgents and other lawless
quarrel from origin to ending must be taken as one” elements are concerned and are, therefore killed by
such insurgents at every opportunity. Same problem
17.1. “Increased Risk” Jobs is true to the members of the police force. Police
officers are also targets of the insurgents an other
1. Jobs having to do with keeping the peace or lawless elements.
guarding property
2. Jobs having to do with keeping or carrying of 18.1. “Presumptive Compensability” Not
money which subject the employee to the risk Applicable
of assault because of the increased
temptation to robbery
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Jahuran vs. GSIS, ECC Case No. 3551, promulgated on 20. WHEN NOT
March 29, 1989: Presumption applied in the Quebec COMPENSABLE
case was not applied because said presumption only
attaches when the members of the AFP are killed by Although violation of company rules does not necessarily
insurgents or lawless elements because of the mere fact defeat compensability it will be a different matter,
that they are soldiers. In the case at bar Jahuran’s heirs however, if the injury results from intoxication whether
were denied compensability although he was killed by or not the company rule is violated. It will be seen
another member of the Philippine Constabulary because under Art. 172 that the disability or death is not
evidence revealed the indeed the incident was brought compensable if it is caused by the employee’s
about by personal conflicts. intoxication, willful intention to injure or kill himself or
another, notorious negligence, or otherwise excluded
19. EFFECTS OF VIOLATION OF from coverage of law.
RULES
21. SICKNESS, DEFINED; OCCUPATIONAL
Acts within the sphere of employment but carried out in OR COMPENSABLE DISEASE
violation of some employer-promulgated rules are
compensable. Sickness any illness definitely accepted as an
occupational disease listed by the Commission, or any
1. Where the violation of the rule itself did not illness caused by employment subject to proof by the
bring about the cause of the accident employee that the risk of contracting the same is
2. Where there is serious doubt that the prohibition increased by working conditions. For this purpose, the
was known to the employees injured. Commission is empowered to determine and approve
3. Where the violation was not intentional but due occupational diseases and work-related illnesses that
to carelessness or negligence. may be considered compensable based on peculiar
hazards of employment. (Occupational diseases found in
Hawaiian-Philippine CO. vs. WCC: If the injury or death ECC Rules, appended to the book. Book IV)
was the result of horseplay or larking among employees,
the courts have declared the same as a compensable 21.1. Occupational Disease
accident. There can be no question that horseplay or
larking is unfortunately too common in factory life. Menez vs. Employee’s Compensation Commission, et.
al: “Nature” means conditions to which all employees of
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a class are subject and which produce the disease as a decision, or clear and convincing evidence. Although
natural incident of a particular occupation, and attach strict rules of evidence are not applicable, yet the basic
to that occupation a hazard which distinguishes it from rules that mere allegations is not evidence cannot be
the usual run of the occupation and is in excess of the disregarded.
hazard attending the employment in general.
22.1. Illustrative Case: Increased Risk Shown
To be an occupational disease it must be one due wholly
to causes and conditions which are normal and Clemente vs. GSIS: Working as a cleaner in a skin clinic
constantly present and characteristic of the particular whereas the deceased was exposed to different carriers
occupation; that is, those things which science and of viral and bacterial diseases.
industry have not yet learned how to eliminate. Every
worker in every plant of the same industry alike Narazo vs. ECC: (Uremia) Deceased was a Budget
constantly exposed to the danger of contracting a Examiner. From human experience, prolonged sitting
particular occupational disease. down and putting off urination result in stagnation of
urine. This encourages the growth of bacteria in the
21.2. Duties of Employer Regarding Occupational urine, and affects the delicate balance between
Disease bacterial multiplication rates and the host defense
mechanisms. Delayed excretion may permit the
Under Rule III, Sec. 2 of the Amended ECC Rules, the retention and survival of microorganisms which multiply
employer is bound to require preemployment rapidly, and infect the urinary tract.
examination of employees exposed to occupational
diseases.
22.2. Illustrative Case: Increased Risk Not Shown
22. THEORY OF INCREASED
RISK Quantum of Evidence: to prove the cause of the ailment
or the increased risk from the job “can obviously be
Increased Risk Theory – to establish compensability, the determined only on a case-to-case basis”
claimant must show proof of reasonable work-
connection, not necessarily direct causal relation. The Limbo vs. ECC: Absence of the sickness from the list of
degree of proof required is merely substantial evidence Occupational Diseases is not a bar to petitioner to claim
which means such relevant evidence as will support a
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so long as he can probe that the risk of contracting the

illness was increased by his working conditions. In 23. SPECIFIC
determining whether a disease is compensable, it is DISEASES/AILMENTS
enough that there exists a reasonable work connection 23.1. Adenocarcinoma of the Ileocaecal Junction
as the workmen’s claim is based on probability and not
on certainty. A malignancy affecting a certain portion of the small
intestines, it is not listed as an occupational disease.
Dabatian vs. GSIS: Aside from the undisputed fact that Despite scientific advances on the matter, even
deceased was a heavy coffee drinker, which was his way professional experts have not as yet determined its
of warding off sleepiness; no evidence was ever cause. Since its cause is not known, there is no duty on
adduced by claimant to bolster the theory that her the part of the claimant to present proof, since proof is
husband’s work increased the risk of contracting the required only when the cause of the disease is known.
ailment. The Supreme Court takes notice of the fact
that the conditions in this case are not peculiar to the 23.2. Asbestosis
work mentioned therein. Many, if not most, employees
are equally exposed to similar conditions but have not Guidelines:
been victims of peptic ulcer. 1. the employee must have been exposed to
asbestos dust in the workplace, as duly certified
Sarmiento vs. ECC: Parotid carcinoma or cancer of the to by the employer, or by a medical institution,
salivary glands is not an occupational disease or competent medical practitioner acceptable to,
considering the deceased’s employment as accounting or accredited by the System
clerk and later as manager of the budget division. The 2. The chest x-ray report of the employee must
petitioner must, therefore, prove that show findings of asbestos, or asbestos-related
his wife’s ailment was caused by her disease, (e.g. plural plaques, pleural thickening,
employment or that her working conditions increased effusion, neoplasm and interstitial fibrosis;
the risk of her contracting fatal illness. The evidence 3. in case the ailment is discovered after the
presented by petitioner that her field trips employees’ retirement/separation from the
necessitated her to take frequent plane travels which service, the claim therefore must be filed with
caused defeaning and numb sensation in the ears the System within (3) years from discovery
were held by the court as mere conjectures and not
sufficient to grant her relief. 23.3. Bangungot
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Metastases to the gastrointestinal Tract and lungs is

The exact cause of death is still unknown. But even if listed as occupational disease only among workers in
the deceased died of “bangungot”, still, where the pulp and paper mills and plywood mills, and vinyl
cause of an ailment is unknown and undetermined even chloride and plastic factories.
by medical science, the requirement of proof of causal
link between the ailment and the working conditions 23.8. Cardiovascular Failure
should be liberalized.
Under the restrictive provisions of the Labor Code,
23.4. Bells Palsy, Anxiety Neurosis, Peripheral which cast aside the presumption of compensability
Neuritis provided in the Workmen’s Compensation Act,
cardiovascular disease, which includes myocardial
Not among those listed, thus, the claimant must prove infarction, is listed as a work-related disease
that he contracted the disease in the course of
employment. 23.9. Chronic Glomerulonephritis*
23.10. Chronic Osteomylitis*
23.5. Cancer of the Pancreas 23.11. Chronic Pylonephritis, Diabetes
Mellitus, Anemia, Pulmonary Metastases
Still of unknown origin (Cancer)*
23.12. Incomplete Abortion
23.6. Cancer of the Stomach
Carvajal vs. ECC: Records reveal that petitioner’s wife,
In ECC Resolution No. 247-A, dated April 13, 1977, while working as campaign clerk in the Treasurer’s
cancer of the stomach and other lymphatic and blood Office of San Juan, Eastern Samar, suffered “two
forming vessels is considered occupational only among attacks of vaginal bleeding and hypogastric pain”
wood-workers, loggers, carpenters and employees, in attributing said ailment to the lifting of heavy tax
plywood, pulp and paper mills. declaration books, due to incomplete abortion.
23.7. Carcinoma of the Breast with Metastases
to the Gastrointestinal Tract Pregnant women become tired more readily; therefore,
the prevention of fatigue must be stressed very
emphatically. The body is made up of various types of
cells, each type with a specific function. Depletion of
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nerve-cell energy results in fatigue, and fatigue causes It is an occupational disease or work-connected in such
certain reactions in the body that are injurious. occupations as that of a teacher, laborer, driver, land
inspector and other similar occupations; hence
Additionally, medical opinion to the contrary can be compensable.
disregarded especially when there is some basis in the
facts for inferring a work-connection. *Not an occupational disease, hence must prove that
the risk of contracting the disease was increased by the
23.13. Intestinal Obstruction Partial working conditions.
It is a condition in which the passage of intestinal 24. EVIDENCE; DEGREE OF

contents is arrested or seriously impaired. This is due to PROOF
causes which are either mechanical, vascular or
neurogenic. Mechanical causes are intrinsic factors as Proof of direct causal relation is not, however,
adhesions and tumors, and hernia and such factors as indispensably required. It is enough that the claimant
impacted foreign body offeces, parasites, and adduces proof of reasonable work connection, whereby
gallstones. the development of the disease was brought about
largely by the conditions present in the nature of the
23.14. Leprosy job. Strict rules of evidence are not demanded. The
23.15. Parotid Carcinoma* degree of proof required is merely substantial evidence,
23.16. Peptic Ulcer* which has been held to be such relevant evidence as a
23.17. Rheumatoid Arthritis* reasonable mind might accept as sufficient to support a
23.18. Schistosomiasis conclusion.
A teacher who works under a hazardous condition in far- Under the law, it is not required that the employment
flung town and has to hike daily to his place of work, is be the sole factor in the growth development or
liable to contract schistosomiasis. acceleration of claimant’s illness to entitle him to the
benefits provided for. It is enough that his employment
23.19. Senile Cataract* had contributed even in a small degree.
23.20. Tuberculosis
25. PROOF IS REQUIRED ONLY IF CAUSE IS KNOWN;
OLD DOCTRINE
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Orate vs. CA: It is well to remember that if diseases not

The Necessity of Proof is present only when the cause of intended by the law to be compensated are
the disease is known. If not known, there is no duty to inadvertently or recklessly included, the integrity of the
present proof, for the law does not demand an State Insurance Fund is endangered. Compassion for the
impossibility. Thus, the requirement that the disease victims of diseases not covered by the law ignores the
was caused or aggravated by the employment or work need to show a greater concern for the trust fund to
applies only to an illness where the cause can be which the tens of millions of workers and their families
determined or proved. look to for compensation whenever covered accidents,
diseases and death occur. This stems from the
Where the causes of an ailment are unknown to and/ or development in law that no longer is the poor employee
undetermined even by medical science, the still arrayed against the might and power of his rich
requirement of proof of any causal link between the corporate employer, hence the necessity of affording all
ailment and the working conditions should be liberalized kinds of favorable presumptions to the employee. This
so that hose who have less in life will have more in law. reasoning is no longer good policy. It is now the trust
fund and not the employer which suffers if benefits are
26. NEW DOSCTRINE; PROOF IS paid to claimants who are not entitled under the law.
REQUIRED
Raro vs. ECC: It is not correct to say that all cancers are Chapter II COVERAGE
not compensable. The list of occupational diseases AND LIABILITY
prepared by the ECC includes some cancers as
compensable. Article 168: COMPULSORY COVERAGE
Article 169: FOREIGN EMPLOYMENT
Cancer is still a disease of still unknown origin which Article 170: EFFECTIVE DATE OF COVERAGE
strikes people in all walks of life, employed or Article 171: REGISTRATION
unemployed. Unless it be shown that a particular form
of cancer is caused by specific working conditions. The COMMENTS
court cannot conclude that it was the employment 1. COVERAGE
which increased the risk of contracting the disease.
Employees
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• Covered from first day of employment 1. EXCLUSIONS

• All employees, public or private, including
casual, emergency, temporary or substitute Self-Inflicted or Self-Courted contingencies
employees
• It includes a “member of the Armed Forces of the 1.1.Intoxication or Drunkenness
Philippines” (Article 167(g) of the Labor Code as
amended and Section 4(b)(1) of Rule 1 as To the extent that one is not entirely himself or so that
amended of the implementing rules on his judgment is impaired and his act, word, or conduct
employees’ compensation is visibly impaired.
• Not over 60 years of age, or over 60 if he had
been paying contributions to the System prior to 1.2.Self-Inflicted Injuries
age 609 and has not been compulsorily retired. The injury must be intentionally self-inflicted, which
contemplates a deliberate intent on the part of the
Employer employee, not a failure on his part to realize the
• Covered compulsorily from first day of operation probable consequences to himself of his foolish act.
2. FOREIGN EMPLOYMENT 1.2.a. Suicide or Provoked Death Not

Compensable
Filipinos working abroad for employers doing business in 1.2.b. Death Not the Result of Worker’s Willful
the Philippines are covered by the employee’s Act
compensation law. They are entitled to the same 1.2.c. Suicide, When Compensable
benefits as for those working in the Philippines.
Considering their situation, the application for the rule According to American authorities, suicide is
on accreditation of hospitals and physicians and the rule compensable in the following cases:
requiring notice to employer is relaxed. 1. when it results from insanity resulting from
compensable work injury or disease
Article 172: LIMITATIONS OF LIABILITY 2. when it occurs during a delirium resulting from
compensable disease
COMMENTS AND CASES
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NAESS Shipping Phil. Vs. NLRC: No law or rule would Code) for work-connected death or injuries exclude
make it illegal for an employer to assume the obligation other remedies under the civil code?
to pay death benefits in favor of his employee in their
contract of employment. Since, NAESS freely bound Answer: Case of Ysmael Maritime Corporation vs.
itself to a contract which on its dace makes it Avelino (June 30, 1987)
unqualifiedly liable to pay compensation benefits for In this case, the employer refused to grant the claim of
Dublin’s death while in its service, regardless or the deceased employee’s parents on the ground that
whether or not it intended to make itself the insurer, in the claimants had already been compensated by the
the legal sense, of Dublin’s life, NAESS cannot escape Workmen’s Compensation Commission for the same
liability. incident, for which reason they are now precluded from
seeking other remedies against the same employers
1.3.Notorious Negligence under the Civil Code.
Notorious Negligence something more than simple or Ruling: In the case of Robles vs. Yap, it was held that
contributory negligence. It signifies a deliberate act of the action is selective and the employee or his heirs
the employee to disregard his own personal safety. have a choice of availing themselves of the benefits
Disobedience to rules and/or prohibition does not in under the WCA or of suing in the regular courts under
itself constitute notorious negligence, if no intention the Civil Code for higher damages from the employer by
can be attributed to the injured to en his life. It reason of his negligence. But once the election has
exempts the State Insurance Fund from liability for been exercised, the employee or his heirs are no longer
injuries suffered by the former by notorious negligence. free to opt for the other remedy, i.e., the employee
cannot pursue both actions simultaneously.
ART. 173 EXTENT OF LIABILITY
2. RECOVERY UNDER THE LABOR CODE AND THE SOCIAL
1. OPTIONS AVAILABLE: BENEFITS UNDER THE SECURITY LAW
COMPENSATION LAW OR UNDER THE CIVIL CODE - Simultaneous recovery of benefits under the
employee’s compensation program of the Labor Code
Question: Does the compensation remedy under the and under the Social Security Law is allowed.
Workmen’s Compensation Act (now under the Labor
ART. 174 LIABILITY OF THIRD PARTIES
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b. President and General Manager

ART. 175 DEPRIVATION OF BENEFITS c. ECC Executive Director
d. Medicare Chairman
Rule: No contract, regulation, or device whatsoever
shall operate to deprive the employee or his dependents TWO APPOINTIVE MEMBERS: a. one representing the
of any part of the income benefits, and medical or employers (for a term of 6 yrs. each)
related services granted under this title. Existing b. another representing the employees
medical services being provided by the employer shall
be maintained and continued to be enjoyed by their
employees. ECC – the policy-making body of the Employees’
Compensation Program and also the
Exception: When otherwise provided under this Title. appeal body. ( Decisions of SSS or GSIS, if
unfavorable to the claimant, are
CHAPTER III appealable to the ECC).
ADMINISTRATION
THREE THRUSTS OR COMPONENTS OF THE ECC PRGRAM:
ART. 176 EMPLOYEES’ COMPENSATION COMMISSION 1. Preventive Thrust
ART. 177 POWERS AND DUTIES - to minimize and control hazards in the working
ART. 178 MANAGEMENT OF FUNDS environment.
ART. 179 INVESTMENT OF FUNDS - Two agencies involved in this program:
ART. 180 SETTLEMENT OF CLAIMS a. Bureau of Working Conditions (BWC)
ART. 181 REVIEW - inspects work premises
ART. 182 ENFORCEMENT OF DECISIONS b. Occupational Safety and Health Center
(OSHC)
1. STRUCTURE AND FUNCTIONS - trains safety engineers, tests
safety equipment and undertakes
CHAIRMAN of the Employees’ Compensation Commission research work.
: Secretary of Labor and Employment - the law provides that establishments having
high rate of incidents caused by
FOUR EX-OFFICIO MEMBERS: a. SSS Administrator;
103
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Finals Reviewer
hazards of their working environment will be 2. TWO SEPARATE FUNDS

liable to 25% of benefits due the
claimants. (To force the observance of the legal The ECC may not augment the SIF in the GSIS with
requirement on occupational funds from the SIF in the SSS because these are two
health and safety.) separate funds.
2. Compensative Thrust
- is the heart of the Employees’ Compensation
Program
- through the SSS and GSIS, the ECC pays benefits
to government and private
Sector workers who suffer work-oriented
contingencies.
- in case of death, the benefits are given to the
beneficiaries.
3. Curative Thrust
- The ECC is also responsible for the treatment of
sickness or injury that a worker
may suffer in line of duty as well as
rehabilitation of those who are disabled.
Note: For medical services, the ECC conduct

accreditation of qualified physicians, clinics and
hospitals where EC patients may be referred to for
admission and treatment.
REHABILITATION SERVICES consist of

a. medical treatment;
b. surgical treatment; or
c. hospital treatment, including appliance.
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Finals Reviewer
- temporary total disability;

CHAPTER IV - permanent total disability;
CONTRIBUTIONS - permanent partial disability;
- death.
ART. 183 EMPLOYER’S CONTRIBUTIONS c. Funeral Benefit
ART. 184 GOVERNMENT GUARANTEE
2. MEDICAL BENEFITS
The penalties to the employer who is delinquent in The Medical services, appliances, and supplies shall be
paying ECC contributions include imprisonment and/or provided to the afflicted employee:
st
fine and a 3% penalty per month from the date the - beginning on the 1 day of in injury or
contribution falls due until paid. sickness,
- during the subsequent period of his disability,
CHAPTER V - and as the progress of his recovery may
MEDICAL BENEFITS require, subject to Sec. 5 of Rule IV, which
requires submission of periodic medical report
ART. 185 MEDICAL SERVICES from the attending physician.
ART.186 LIABILITY Notes:
ART. 187 ATTENDING PHYSICIAN - The employee is entitled to the benefits only
ART. 188 REFUSAL OF EXAMINATION OR TREATMENT for the ward services of an accredited hospital
ART. 189 FEES AND OTHER CHARGES and accredited physician.
ART. 190 REHABILITATION SERVICES - ECC accredited hospitals and physicians are
not allowed to ask any deposit from EC
1. E.C. BENEFITS SUMMARIZED patients as requisite for admission.
- Neither are they allowed to collect any
THREE KINDS OF COMPENSATION EXTENDED TO THE amount from EC patients as charges.
EMPLOYEE: - However, they are privileged to claim
a. Services reimbursement with the ECC through the
- medical services, appliances and supplies; System fro expenses incurred in the treatment
- rehabilitation services of patients.
b. Cash Income Benefit or Pension due to:
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Finals Reviewer
- Medicines purchased by EC patients are declared by law to be so.

reimbursed 100%.
- Expenses incurred at the ICU are also paid in The reimbursable medical expenses are not only those
full. incurred for the primary illness but even those for its
complications developed after the employee’s
2.1 Duration of Medical Liability retirement.
- Medical attendance is owing as long as the Case: Godofredo Alvero, Sr. vs. GSIS (Dec. 4, 1991)
employee is sick of a compensable Ruling: The complications that arose from appellant’s
illness, and this duty is not ended when primary illnesses, PTB and COPD were brought about by
employment terminates. the intake of several medications like steroids,
- Prevailing Rule in compensation cases: Acts antibiotics, and diuretics. For this reason, we believe
not containing any limitation as to that appellant is entitled to reimbursement of
the period during which the employer may medications used in treating the complications,
furnish or pay for medical, surgical, Diabetes Mellitus and Stomach Ulcerations.
or hospital services have been construed as
imposing liability on the employer 3. REHABILITATION SERVICES
as long as such services are required to cure or
relieve the injured employee THREE STAGES OF REHABILITATION UNDER THIS
from the effect of his injury. PROGRAM:
a. Physical rehabilitation
2.2 Reimbursement of Medical Expenses -involves physical therapy by the rehab center of
- The services, appliances and supplies may be the ECC – accredited hospital, furnishing of
acquired by the employee himself, prosthesis and appliances all paid by the ECC.
in the event of failure of the employer to b. Vocational Assessment
furnish the same promptly, at the -involves evaluation by guidance psychologist of
expense of the employer or system. the ECC and sending to
- The employee’s right of reimbursement for vocational school of those found ready to
medical expenses is not extinguished reengage in gainful employment.
upon his death but is transmitted to his legal b. Vocational Placement
heirs, unless personal in nature or
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Finals Reviewer
-involves job placement by Employment Service Art. 167 (n) – defines ‘disability’ as loss or impairment
Officer to help him become independent and of a physical or mental function resulting from injury or
gainfully employed. sickness.
CHAPTER VI 2. CATEGORIES OF DISABILITY

DISABILITY BENEFITS
Case: Vicente vs. ECG (Jan. 23, 1991)
ART. 191 TEMPORARY TOTAL DISABILITY
ART. 192 PERMANENT TOTAL DISABILITY 3 Distinct Categories of of Employee’s Disability:
ART. 193 PERMANENT PARTIAL DISABILITY 1. temporary total disability
2. permanent total disability
1. DISABILITY 3. permanent partial disability
Disability – does not refer to the injury nor to the pain

and suffering it has occasioned
- it refers to the loss or impairment of earning
capacity TOTAL DISABILITY - may either be: a. permanent
- there is disability when there is a loss or b. temporary
diminution of earning power because of actual - does not mean a state of
absence from work due to the injury or illness absolute helplessness
arising out of and in the course of - means disablement of an
employment. employee to earn wages in the same
- The basis of compensation is reduction of kind of work, or a work of
earning power similar nature, that he was trained
- As long as the employee goes on working for or accustomed to
(even if he suffers service-connected injury or perform, or any kind of work which a
illness) without any reduction whatsoever in person of his mentality and
his earning capacity, there is no disability and attainment could do.
, therefore, he is not entitled to any income
benefit. Kind of Disability Purpose of the Law for
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Finals Reviewer
Granting Compensation disability, in which case he shall

Temporary Disability To compensate the laborer be paid benefit for temporary
or employee for what he total disability during the
might have earned during extended period.
the period of the treatment 2. the monthly income benefit
of his injury shall be suspended if the employee
Permanent Disability To compensate the injured fails to submit a monthly medical
laborer or employee for the report certified by its attending
actual and permanent loss physician.
of a member of the body, - Maximum Daily Income Benefit :
or the use thereof P200.00
st
- Paid beginning on the 1 day of
disability.
Kind of Disability Descriptions - The system may declare the
1. TEMPORARY - employee is unable to perform total and permanent status at any
TOTAL any gainful occupation for a time after 120 days of continuous
continuous period not exceeding temporary disability as may be
120 days, except as otherwise warranted by the degree of actual
provided in Rule X of these Rules. loss or impairment of physical or
- income benefit equivalent to 90 mental functions as determined by
percent of his average daily salary the system.
credit, subject to the following Note:
conditions: -After an employee has fully
1. the daily income benefit shall recovered from an illness, the
not be less than P10 or more than period covered by any relapse he
P90 nor paid longer than 120 days suffers, or recurrence of his illness
for the same disability, unless the shall be considered independent
in jury or sickness requires more of, and separate from, the period
extensive treatment that lasts covered by the original
beyond 120 days, but not to disability. Such a period shall not
exceed 240 days from onset of be added
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Finals Reviewer
to the period covered by his the System and approved by

original disability in the the Commission.
computation of his income benefit - The full monthly income benefit
for temporary total disability. shall be paid for all compensable
2. PERMANENT -employee is unable to perform… months of disability. The monthly
TOTAL for a continuous period exceeding income benefit shall be
120 days except as otherwise guaranteed for 5 years, except as
provided for in Rule X of the ECC otherwise provided.
Rules.
- incapacity to perform gainful GROUNDS FOR CANCELLATION OF
work which is expected to be PTD:
permanent. 1. Failure of employee to
- does not require a condition of present himself for
complete helplessness examination at least once a
year upon notice by the
PERMANENT TOTAL DISABILITIES System;
(ART. 192): 2. Failure to submit a
1. Temporary total disabilities quarterly medical report
lasting continuously for certified by his attending
more than 120 days; physician as required under
2. Complete loss of sight of Sec. 5 of Rule IV hereof;
both eyes; 3. Complete or full recovery
3. Loss of two limbs at or from his permanent
above the ankle or wrist; disability; or
4. Permanent complete 4. Upon being gainfully
paralysis of two limbs; employed. (ECC Rules)
5. Brain injury resulting in
incurable imbecility and Amount of Benefits:
insanity; and a. SSS- monthly income benefit as
6. Such cases as determined by defined in Sec. 9 (a), Rule VI
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Finals Reviewer
b. the number of months of paid the date of his permanent total

coverage shall be the number of disability.
monthly contributions remitted to 3. PERMANENT -employee suffers a permanent
the System including contributions PARTIAL partial loss of the use of any part
other than for Employees’ of his body
Compensation if paid before March - see art. 193 (body parts/period)
31, 1975. The full monthly income -monthly income benefit for the
benefit shall be paid for all number of months indicated in art.
compensable months of disability. 193
c. The first day preceding the - If the indicated number of
semester of temporary total months exceeds 12, the income
disability shall be considered for benefits shall be paid in monthly
purposes of computing the pension; otherwise, the System
monthly income benefit for may pay income benefit in lump
permanent total disability. sum or in monthly pension.
- a covered employee shall
Note: continue to receive the income
-Each dependent child, but not benefits provided thereunder even
exceeding 5, counted from the if he is gainfully employed and
youngest and without substitution, receiving his wages or salary.
shall be entitled to 10% percent of
the monthly income benefit of the
employee. Permanent Total vs. Permanent Partial
-Except the benefit to dependent
children under Sec.4 of this Rule, Permanent Total Permanent Partial
the aggregate monthly benefit
payable, in the case of the GSIS, -results in an employee’s -occurs when an
shall in no case exceed the loss of work or inability to
employee loses the use of
monthly wage or salary actually perform his usual work any particular anatomical
received by the employee as of part of his body which
-Test to determine whether disables him to continue
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Finals Reviewer
or nor an employee suffers with his former work. time. It is possible that an injury which at first was
from Permanent Total: considered to be temporary may later on become
a showing of the capacity of permanent or one who suffers a partial disability
the employee to continue becomes totally and permanently disabled from the
performing his work same cause.
notwithstanding the
disability he incurred. NOTE:
-The compensation paid in 1936 on account of the
amputation of an employee’s foot, below the knee,
Permanent Total Disability Cases: should NOT be deducted from the compensation due for
1. Orlino vs. Employees’ Compensation Commission the dsability resulting from the amputation of the left
Ruling: He is considered permanently and totally leg, above the knee in 1857.
disabled to work when he was incapacitated or disabled
to perform any substantial amount of labor in the line of CHAPTER VII
work where he was formerly engaged, or any other kind DEATH BENEFITS
of work to which he could be assigned.
ART. 194 DEATH
2. Vicente vs. ECC
Ruling: The test of determining whether or not an DEPENDENCY
employee suffers from permanent total disability is a - does not mean absolute dependency for the
showing of the capacity of the employee to continue necessities of life, but rather, that the
performing his work notwithstanding the disability he plaintiff looked up to and relied on the
incurred. It does not mean an absolute helplessness but contribution of the decedent in whole or in
rather an incapacity to perform gainful work which is part, as a means of supporting and
expected to be permanent. maintaining herself in accordance with her
station in life.
Conversion from Permanent Partial to Permanent Total - A person may be dependent, according to this
1. GSIS vs. CA view, although able to maintain himself
Ruling: A person’s disability may not manifest fully at without any assistance from the decedent.
one precise moment in time but rather over a period of TEST OF DEPENDENCY
103
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- dependency may exist although the The Beneficiaries

dependent could have subsisted without the Primary Secondary
assistance he received, if such contributions a. Dependent spouse a. Illegitimate
were relied on by claimant for his means of until he/she children and
living as determined by his position in life. remarries legitimate
- one need not be a part of the deceased’s b. Dependent children descendants
household in oreder to be a dependent. (legitimate, b. Parents,
legitimated, grandparents,
SPOUSE AS DEPENDENT natural-born, or grandchildren.
- arises from fact that marriage exists legally adopted)
- showing of marital status is essential
TWO WIVES AS CLAIMANTS Notes:
- the Commission must resolve the dispute - Amount of income benefits shall be equivalent t the
- determine who the legal wife is monthly income benefits under PTD and PPD benefits.
PARENTS AS DEPENDENT - Under the ECC Rules, the death benefit shall accrue
- a parent cannot claim as a dependent in a to the Employees’ Compensation Fund if the deceased
compensation case where the deceased employee has no beneficiaries at the time of his death.
employee is an abandoned child. - Funeral benefit is paid to the survivor or to whoever
shouldered the burial expenses
DEATH BENEFIT AND BENEFICIARIES
Death benefits are paid in the form of cash monthly ART. 195 RELATIONSHIP AND DEPENDENCY
pension: ART. 196 DELINQUENT CONTRIBUTIONS
a. for life to the primary beneficiaries, guaranteed ART.197 SECOND INJURIES
for 5 yrs.; ART. 198 ASSIGMENT OF BENEFITS
b. for not more than 60 months to the secondary ART. 199 EARNED BENEFITS
beneficiaries in case there are no primary ART. 200 SAFETY DEVICES
beneficiaries; ART. 201 PRESCRIPTIVE PERIOD
c. in no case shall the total benefit be less than ART. 202 ERROMEOUS PAYMENT
P1,500 ART. 203. PROHIBITION
ART. 204 EXEMPTION FROM LEVY, TAX, ETC.
3B – 2006-2007
Finals Reviewer
Reviewer Prepared
CHAPTER IX By: Baetiong,
RECORDS, REPORTS AND PENAL PROVISIONS
Joselito
ART. 205 RECORD OF DEATH OR DISABILITY Baniqued, Marigel
ART. 206 NOTICE OF SICKNES, INJURY OR DEATH Castro, Elvira
ART. 207 PENAL PROVISIONS Dy, Denise
ART. 208 APPLICABILITY Harina, Sheryl
Remulla, Giselle
TITLE III
MEDICAL CARE
TITLE IV ADULT
EDUCATION
Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla Page 103
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AZUCENA Labor Review 156828582

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Labor Law I Atty. C.A.

PRELIMINARY TITLE application of the science or art to practical

peaceful concerted activities, including to restrictions and regulations as the protection

 Act 2549 which prohibited payment of wages 10.3. Special Laws

Organize and Collective Bargaining Convention

state delegates government power for the

Chapter II EMANCIPATION OF goal sought to be achieved by the government

COMMENTS Article 13: DEFINITIONS

1. THE UNEMPLOYMENT PROBLEM COMMENTS

Article 14: EMPLOYMENT PROMOTION COMMENTS

involving Filipino workers for overseas termination is not shown to be based

award in dollars was based on the parties’

l. Unjust refusal to depart for a  Direct hiring of Filipino workers by a foreign

of repatriation from the worker after return to the

Article 29: NON-TRANSFERABILITY OF LICENSE OR

Article 27: CITIZENSHIP REQUIREMENT COMMENTS AND CASES

1. SUSPENSION OR CANCELLATION OF LICENSE

As stated in the Code: (a) Any recruitment activities,

and entities found to be engaged in the recruitment of schedule of allowable fees

harmful to public health or or indirectly in the management

- under the Constitution (Art. III, Sec. 2, 1987

Private Sector Participation – The State shall encourage

To qualify as an apprentice, a person shall:

Art. 78 – Definition Art. 81 – Eligibility for Apprenticeship

• NSD not waivable since it is founded on public policy

1. necessary to prevent loss of life or

Art. 93 – Compensation for rest day, Sunday, or ‫ ﺺ‬Muslim Holidays

‫ ﺺ‬Vacation and sick leaves are voluntary benefits

 who is a solo parent?

Lodging facility – value is determined to be  GRATUITY – something given freely, or without

- not intended to pay a worker for actual commodities, including agro-processing,

received pursuant to a valid minimum ex: rank-and-file to supervisory  lose overtime

which are not considered or their total earnings during

- an employee who has employees; no intention to

apprentices, and handicapped workers employed  Variant Jurisprudence on Piece-rate workers’

by dividing the amount earned during the year by month pay

performance is unsupervised by allege adherence to the standards

1. Proof of wage payment

Art. 103. Time of Payment 2. Payment through banks

Substantial capital or investment – capitalization,

To restate, the significant factor in determing the Commission Agent

7.1 Summary of Legitimate Labor Contracting Messengerial/Janitorial Service

d) Self organizations, CBA, peaceful concerted

Solidary Liability - Limitation – to extent of work Worker preference in case of bankruptcy

notice and hearing, compliance with labor standards

Where no proof of compliance submitted by employer

Title III Working Conditions for Special Groups of Discrimination prohibited

connection with her employment, but it likewise (2) education related

Punishes sexual harassment if same is: Chapter I

work-connected, BEFORE more extensive

Graduate First-aider, and may be one The Physician and

o Rural Area - the employer has facilities o Institute of Public

o Bureau of Dental Provided: that their dry docks,

number of his supervisors or technical personnel shall work as

* The provisions of this Section shall be made mandatory

• General duties of workers: Article 166: POLICY

Under the present law for an employee to be entitled to 5. LIBERAL INTERPRETATION

ACTIVITIES The Test

person then and there present would have met

so long as he can probe that the risk of contracting the

Metastases to the gastrointestinal Tract and lungs is

It is a condition in which the passage of intestinal 24. EVIDENCE; DEGREE OF

Orate vs. CA: It is well to remember that if diseases not

• Covered from first day of employment 1. EXCLUSIONS

2. FOREIGN EMPLOYMENT 1.2.a. Suicide or Provoked Death Not

b. President and General Manager

hazards of their working environment will be 2. TWO SEPARATE FUNDS