INTRODUCTIONI.LABOR- It is the exertion by human beings of physical or mental efforts, or both, towards the production of goods and services.II.LABOR LAW - The law governing the rights and duties of the employer and employees:(1) with respect to the terms and conditions of employment.(2) with respect to labor disputes arising from collective bargaining respecting such terms and conditions.III.SOURCES OF LABOR LAW (PLCCC)1. Labor Code and other related special legislation 2. Contract 3. Collective Bargaining Agreement 4. Past practices 5. Company policies

IV.CLASSIFICATIONS1. Labor Standards- minimum requirements prescribed by existing laws, rules and regulations relating to wages, hours of work, cost of-living allowance, and other monetary and welfare benefits, including occupational safety, and health standards. Maternity Childrens Hospital v. Sec. of Labor (89).2. Labor Relations- Regulates the institutional relationship between the workers organized into a union and the employers.3. Welfare Laws- Designed to take care of the contingencies which may affect the workers.

V.SOCIAL JUSTICE- an effective instrument for the equalization of the social and economic forces by the State when it is used to shield wrongdoing.Limits of use:1. Not to undermine property rights resulting in confiscation Guido vs. Rural Progress Adm. (49)2. May only protect the laborers who come with clean hands Phil. Long Distance Telephone Co. v. NLRC (88)3. Never result to an injustice or oppression of the employer Phil. Geothermal Inc. v NLRC (94)Basis of limitation:Law also guarantees the ER reasonable returns from his investmentAsian Alcohol Corp. v. NLRC (99)

VI.POLICE POWER- basis of foundation of the state

VII.CONSTITUTIONAL MANDATES REGARDING LABOR LAW 1. Sec. 3, Art. XIII The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to selforganization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decisionmaking processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth.

BASIC RIGHTS OF WORKER GUARANTEED BY THE CONSTITUTION (SHeR SOCO PaEn)1. Security of tenure 2. Receive a living wage 3. Humane working conditions 4. Share in the fruits of production 5. Organize themselves 6. Conduct collective bargaining or negotiation with management 7. Engage in peaceful concerted activities including strike 8. Participate in policy and decision making processes

2. Sec. 9, Art. II The State shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all. 3. Sec. 10, Art II The State shall promote social justice in all phases of national development. 4. Sec. 11, Art II The State values the dignity of every human person and guarantees full respect for human rights. 5. Sec. 13, Art. II The State recognizes the vital role of the youth in nationbuilding and shall promote and protect their physical, moral, spiritual, intellectual, and social wellbeing. It shall inculcate in the youth patriotism and nationalism, and encourage their involvement in public and civic affairs. 6. Sec. 14, Art. II The State recognizes the role of women in nationbuilding, and shall ensure the fundamental equality before the law of women and men. 7. Sec. 18, Art. II The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. 8. Sec. 20, Art. II The State recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments. 9. Sec. 1, Art. III No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws. 10. Sec. 4, Art. III No law shall be passed abridging the freedom of speech, of expression, or of the press, or the right of the people peaceably to assemble and petition the government for redress of grievances. 11. Sec. 8, Art. III The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged. 12. Sec. 1, Art. XIII The Congress shall give highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the common good. To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and its increments. 13. Sec. 2, Art. XIII The promotion of social justice shall include the commitment to create economic opportunities based on freedom of initiative and selfreliance. 14. Sec. 14, Art. XIII The State shall protect working women by providing safe and healthful working conditions, taking into account their maternal functions, and such facilities and opportunities that will enhance their welfare and enable them to realize their full potential in the service of the nation.

VIII.GENERAL PROVISIONSPresidential Decree No.442 this decree shall be known as the Labor Code of the PhilippinesArt.3 Declaration of Policy (APEAR)1. Afford protection to labor2. Promote full employment3. Ensure equal work opportunities regardless of sex, race, or creed4. Assure workers rights to self-organization,collective bargaining, security of tenure, and just and humane conditions of work5. Regulate the relations between workers and Employers

Seven basic rights of workers guaranteed by the Constitution: (OConEnEn WORP)1. right to Organize2. to Conduct collective bargaining or negotiation with management3. to Engage in peaceful concerted activities, including strike in accordance with law4. to Enjoy security of tenure5. to Work under humane conditions6. to Receive a living wage7. to Participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.

Art. 4. Construction in favor of labor- When the interest of labor and capital collide, the heavier influence of capital should be counterbalanced with the sympathy and compassion of law for the less privileged workers. But protection to labor does not meanoppression or destruction of capital. The employers act will be sustained when it is in the right. [Eastern Shipping Lines v. POEA, 166 SCRA 523 (1998)]-Court decisions adopt a liberal approach that favors the exercise of labor rights. The mandateis simply to resolve doubt in favor of labor. If there is no doubt in implementing and interpretingthe law, labor will enjoy no built-in advantage and the law will have to be applied as it is.- When the subject matter is covered by the Labor Code, doubts which involve implementation and interpretation of labor laws should be resolved in favor of labor, even if the question involves Rules of Evidence.Management Rights / Prerogative except as limited by special laws, an employer is free toregulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time, place and manner of work, tools to be used, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay-off of workers and the discipline, dismissal and recall of workers.

Art. 5. Rules and regulationsDepartment of Labor and Employment (DOLE)- Lead agency in enforcing labor laws and it possesses rule-making power in the enforcementof the Code.- But a rule or regulation that exceeds the Departments rule-making authority is void.Art. 6. Applicability of Labor Code- Applies alike to all workers, except as otherwise provided by law, whether agricultural or nonagricultural.-Applies to a government corporation incorporated under the Corporation Code.

EXCEPTIONS: (FIGELAC)1. Government employees (Ees) 2. Ees of government corporations created by special or original charter 3. Foreign governments 4. International agencies 5. Corporate officers/ intracorporate disputes which fall under P.D. 902A and now fall under the jurisdiction of the regular courts pursuant to the Securities Regulation Code (SRC). 6. Local water district except where NLRCs jurisdiction is invoked. 7. As may otherwise be provided by the Labor Code

Book I: Pre-Employment

I.RECRUITMENT AND PLACEMENT OF WORKERS (PUTECH PARC)-any act of canvassing, enlisting, transporting,contracting, hiring, utilizing or procuring workers and includes includes contract services, referrals, advertising for employment, promising foremployment locally or abroad, whether for profit or not: Provided, That any person or entity which, in any manner, offers or promises for a fee, employment to two or more persons shall be deemed engaged in recruitment and placement.

II.REGULATIONS OF RECRUITMENT AND PLACEMENT OF WORKERS*Entities authorized to engage in recruitment and placementa. public employment officesb. Philippine Overseas Employment Administration (POEA)c. private recruitment entitiesd. private employment agenciese. shipping or manning agents or representativesf. such other persons or entities as may be authorized by the DOLE Secretaryg. construction contractors*Exception-Persons or entities allowed under Chapter 2 of the Labor Code (Art 16). For this purpose, the Labor Code expressly authorizes the participation of the private employment sector in the recruitment and placement of workers, locally and overseas, BUT such recruitment and placement shall be done under such guidelines,rules and regulations, as may be issued by the Secretary of Labor and Employment. (Art 25) Private sector participation in recruitment and placement is sought to be rationalized pursuant to national development objectives (Art 12f) and in order to harness and maximize the use of private sector resources and initiative in the development and implementation of a comprehensive employment program (Art 25).*Prohibited Practices ( ChaFuG Indu.Influ EnOF SuBeW FaFa)1. To charge or accept, directly or indirectly, any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any amount greater than that actually received by him as a loan or advance.2. To furnish or publish any false notice or information or document in relation to recruitment or employment.3. To give any false notice, testimony, information or document or commit any act of misrepresentation for the purpose of securing a license or authority under this Code.4. To induce or attempt to induce a worker already employed to quit his employment in order to offer him to another unless the transfer is designed to liberate the worker from oppressive terms and conditions of employment5. To influence or to attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency6. To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines7. To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized representatives8. To fail to file reports on the status of employment, placement vacancies, remittance of foreign exchange earnings, separation from jobs, departures and such other matters or information as may be required by the Secretary of Labor9. To substitute or alter employment contracts approved and verified by the Department of Labor from the time of actual signing thereof by the parties up to and including the periods of expiration of the same without the approval of the Secretary of Labor10. To become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of a travel agency11. To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations other than those authorized under this Code and its implementingrules and regulations12. Failure to actually deploy without valid reason as determined by DOLE13. Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment, in cases where the deployment does not actually take place without the workers fault* Employers cannot directly hire workers for overseas employment except through authorized entities see (enumeration above). The reason for the ban is to ensure full regulation of employment in order to avoid exploitation.Fees to be Paid by Workers:- No worker shall be charged with any fee until employee: (1) obtained work through recruiters efforts; and (2) worker has actually commenced working.- Placement fee in an amount equivalent to one months salary of the worker and documentation costs are the ONLY AUTHORIZED PAYMENTS that may be collected from a hired worker.Nature of the liability of local recruitment agency and foreign principal1. Local Agency is solidarily liable with foreign principal.2. Severance of relations between local agent and foreign principal does not affect liability of local recruiter.Joint and solidary liability of recruiter with Foreign Principal- A recruitment agency is solidarily liable for the unpaid salaries of a worker it recruited for employment overseas.- Even if the recruiter and the principal had already severed their agency agreement at the time employee was injured, the recruiter may still be sued for a violation of the employment contract because no notice of the agency agreement's termination was given to the employee.Posting of cash bond by recruiter Capricorn Travel & Tours v. CA, 184 SCRA 123 (1990)-The requirement for the posting of a cash bond is also an indispensable adjunct to the requirement that the agency undertakes to assume joint and solidary liability with the employer for all claims and liabilities which may arise in connection with the implementation of the contract of overseas employment and to guarantee compliance with existing labor and social legislation of the Philippines and the country of employment. The undertaking to assume joint and solidary liability and to guarantee compliance with labor laws, and the consequent posting of cash and surety bonds, may be traced all the way back to the constitutional mandate for the State to "afford full protection to labor, local and overseas." The peculiar nature of overseas employment makes it very difficult for the Filipino overseas worker to effectively go after his foreign employer for employment-related claims and, hence, public policy dictates that, to afford overseas workers protection from unscrupulous employers, the recruitment or placement agency in the Philippines be made to share in the employer's responsibility.Liability of surety- In a surety bond, the surety unequivocally bound itself to answer for all liabilities which the POEA may adjudge or impose against the principal in connection with the recruitment of Filipino seamen.

Power to suspend or cancel any license or authority to recruit employees for overseas employment is concurrently vested with the POEA and the Secretary of Labor.- The penalties of suspension and cancellation of license or authority are prescribed for violations of the above quoted provisions, among others. And the Secretary of Labor has the power under Section 35 of the law to apply these sanctions, as well as the authority, conferred by Section 36, not only to 'restrict and regulate the recruitment and placement activities of all agencies,' but also to 'promulgate rules and regulations to carry out the objectives and implement the provisions' governing said activities. Pursuant to this rulemaking power thus granted, the Secretary of Labor gave the POEA on its own initiative or upon filing of a complaint or report or upon request for investigation by any aggrieved person, (authority to) conduct the necessary proceedings for the suspension or cancellation of the license or authority of any agency or entity' for certain enumerated offenses including:1. the imposition or acceptance, directly or indirectly, of any amount of money, goods or services, or any fee or bond in excess of what is prescribed by the Administration.2. any other violation of pertinent provisions of the Labor Code and other relevant laws, rules and regulations.-The Administrator was also given the power to 'order the dismissal of the case or the suspension of the license or authority of the respondent agency or contractor or recommend to the Minister (now Secretary) the cancellation thereof.

III.ILLEGAL RECRUITMENT-defined by law as any recruitment activities undertaken by nonlicenses or nonholders of authority. (People v. Senoron, G.R. No. 119160, Jan. 30,1997) And it is large scale illegal recruitment when the offense is committed against 3 or more persons, individually or as a group.

ELEMENTS OF ILLEGAL RECRUITMENT1. Offender is a nonlicensee or nonholder of authority to lawfully engage in the recruitment/placement of workers 2. Offender undertakes: a. Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contact services, promising or advertising for employment, locally or abroad, whether for profit or not (Art. 13[b]); or b. Any of prohibited practices under Art. 34 .

Simple Illegal Recruitment- It is considered simple illegal recruitment when it involves less than three (3) victims or recruiters.

Economic sabotage-Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage and shall be penalized in accordance with Article 39 hereof. Illegal recruitment is deemed committed by a SYNDICATE if carried out by a group of three (3) or more persons conspiring and/or confederating with one another in carrying out any unlawful or illegal transaction, enterprise or scheme defined under the first paragraph hereof. Illegal recruitment is deemed committed in large scale if committed against three (3) or more persons individually or as a group. (Art 38b).*Note, however, that the finding of large-scale illegal recruitment must depend on whether there are at least three complainants in a single complaint who alleges illegal recruitment whether committed to them singly or collectively.

RULE OF LIABILITY- The persons CRIMINALLY LIABLE for the above offenses are the principals, accomplices and accessories. In case of juridical persons, the officers having control, management or direction of their business shall be liable.

IV.EMPLOYMENT OF NON-RESIDENT ALIENSREQUISITES IN RECRUITMENT OF NON RESIDENT ALIEN-Any alien seeking admission to the Phil. for employment purposes and any domestic or foreign employer (Er) who desires to engage an alien for employment in the Philippines: 1. Shall obtain an employment permit from the DOLE 2. The permit may be issued to a nonresident alien or to the applicant Er after a determination of the nonavailability of a person in the Phil. who is competent, able and willing at the time of application to perform the services for which the alien is desired 3. For an enterprise registered in preferred areas of investments, said permit may be issued upon recommendation of the govt agency charged with the supervision of said registered enterprise.

PROHIBITION AGAINST TRANSFER OF EMPLOYMENTGENERAL RULE: Only nonresident aliens;EXCEPTIONS:1. Diplomatic services and foreign govt officials 2. Officers and staff of intl organizations and their legitimate spouses 3. Members of governing board who has voting rights only 4. Those exempted by special laws 5. Owners and representatives of foreign principals who interview Filipino applicants for employment abroad 6. Aliens whose purpose is to teach, present and/or conduct research studies 7.Resident aliens. (D.O. 7506, May 31, 2006) * After the issuance of an employment permit, the alien shall not transfer to another job or change his employer without prior approval of the Secretary of Labor. RESIDENT ALIENDuration of Permit- Valid for 1 year from date of issuance, unless sooner revoked by the Secretary of Labor- Renewable upon showing of good cause- Non-transferableOther Prohibitions-Aliens shall not transfer to another job or change his employer without prior approval of the secretary of labor-Non-resident alien shall not take up employment in violation of the provisions of the Code.

BOOK II:Tesda actI. HUMAN RESOURCES DEVELOPMENT PROGRAM1. Government Machinery Policy-It is the policy of the State to provide relevant, accessible, high quality and efficient technical education and skills development in support of the development of high-quality Filipino middle-level manpower responsive to and in accordance with Philippine development goals and priorities.Power and Functions of TESDA-Responsible for formulating, continuing, coordinating, and fully integrating technical education and skills development policies, plans and programs.Special classes of Workers:- Apprentice- Learners- Handicapped*On learners and handicapped workers the intent of the law is that, part of national interest and development is to have a trained manpower.

II. APPRENTICES-Practical training on the job, Supplemented by related theoretical instruction, Covered by a written apprenticeship agreement with an individual employer or entity, Needs DOLE approval and Shall no exceed 6 months-They may hired only in highly technical industries and apprenticeable occupations and must be at least 14 years old .Possesses vocational aptitude and capacity for tests, has ability to comprehend, ability to follow oral and written instructions, any form of employment requiring beyond 3 mos. practical training on the job supplemented by related theoretical instruction.Requisites for a Valid Apprenticeship1. qualifications of apprentice are met2. the apprentice earns not less than 75% of the prescribed minimum salary3. apprenticeship agreement duly executed and signed4. apprenticeship program approved by the Sec. of Labor; otherwise, the apprentice shall be deemed as a regular employee5. period of apprenticeship not exceed 6 months* At the termination of the apprenticeship, the employer is not required to continue the employment.*Employer may not pay wage if the apprenticeship is : a requirement for graduation required by the School required by the Training Program Curriculum requisite for Board examinationVenue of Apprenticeship Programs- The plant, shop, premises of the employer or firm concerned if the apprenticeship program is organized by an individual employer or firm.-The premises of one or several firms designated for the purpose by the organizer of the program if such organizer is an association of employers, civic groups and the like.-DOLE training center or other public training institutions with which the Bureau has made appropriate arrangements.

III.LEARNERS-Persons hired as trainees in semiskilled and other industrial occupations.-They may hire on nonapprenticeable, may be learned through practical training on the job in a relatively short period of time, shall not exceed 3 months. No experienced workers available, prevent curtailment of employment opportunities, not to create unfair competition in labor costs and lower working standards and list of learnable trades provided by TESDA.Contents of Learnership Agreement1. names and addresses of employer and learner2. occupation to be learned and the duration of the training period which shall not exceed 3 months3. wage of the learner which shall be at least 75% of the applicable minimum wage4. commitment to employ the learner, if he so desires, as a regular employee upon completion of training*A learner who has worked during the first two months shall be deemed a regular employee if training is terminated by the employer before the end of the stipulated period through no fault of the learner.

IV.HANDICAPPED WORKERSLaw: RA 7277 Magna Carta for Disabled Persons- These are workers whose earning capacities are impaired, by reason of age, physical or mental infirmity. But these infirmities are not deterrent to gain an employment or livelihood.- Handicapped workers will be treated like a regular worker. Disabled persons have the same rights as other persons to take their proper place in society.- If qualified, handicapped workers may be considered apprentices or for apprenticeship.

Bernardo vs. NLRCA qualified disabled EE should be given the same terms and conditions of a qualified able bodied person. This means that a handicapped EE, if his infirmity does not impair his earning capacity, should be considered and treated like a normal EE. Effect: he should be paid fullcompensation and not 75%).

Rights and privileges of disabled persons- Equal Opportunity for Employment (Sec 5, RA 7277) No disabled person shall be denied access to opportunities for suitable employment. A qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits, incentives or allowances as a qualified able-bodied person.-Reserved contractual positions (Sec 5, RA 7277) Five percent (5%) of all casual, emergency and contractual positions in the Departments of Social Welfare and Development; health, Education, Culture and Sports; and other government agencies, offices or corporations engaged in social development shall be reserved for disabled persons.- Sheltered employment (Sec 6, RA 7277) If suitable employment for disabled persons cannot be found through open employment as provided in the immediately preceding Section, the State shall endeavor to provide it by means of sheltered employment. In theplacement of disabled persons in sheltered employment, it shall accord due regard to the individual qualities, vocational goals and inclinations to ensure a good working atmosphere and efficient production.-Apprenticeship opportunity (Sec 7, RA 7277) Subject to the provisions of the Labor Code as amended, disabled persons shall be eligible as apprentices or learners: Provided, that their handicap is not as much as to effectively impede the performance of job operations in the particular occupation for which they are hired; provided, further, That after the lapse of the period of apprenticeship, if found satisfactory in the job performance, they shall be eligible for employment.

Incentives for employers1. Tax incentives for employment of disabled persons (Sec 8, RA 7277) Private entities that employ disabled persons who meet the required skills or qualifications, either ad regular employee, apprentice or learner, shall be entitled to an additional deduction, from their gross income, equivalent to 25% of the total amount paid as salaries and wages to disabled persons: Provided, however, That such entities present proof as certified by the Department of Labor and Employment and the Department f Health as to his disability, skills, and qualifications.2. Tax incentives for construction of disabled-friendly facilities (Sec 8, RA 7277) Private entities that improve or modify their physical facilities in order to provide reasonable accommodation for disabled persons shall also be entitled to an additional deduction from their net taxable income, equivalent to 50% of the direct costs of the improvements or modifications. This Section, however, does not apply to improvements or modifications or facilities required under Batas Pambansa Bilang 344. (Sec 8, RA 7277).

book III:conditions of employment

I.HOURS OF WORKHours RegulationRationale and Enforcement-The Eight-Hour Labor Law was designed not only to safeguard the health and welfare of the laborer or EE, but in a way to minimize unemployment by forcing employers, in cases where more than 8-hour operation is necessary, to utilize different shifts of laborers or EEs working only for eight hours each.(Manila Terminal Co. Inc. v. CIR, 1952)

Coverage-The provisions of this Title shall apply to employees in all establishments and undertakings whether for profit or not. (Art. 82)

Does NOT cover: (Art. 82) (GoMa FiMemDo PerWor)1. government employees,2. managerial employees,3. field personnel,4. members of the family of the ER who are dependent on himfor support,5. domestic helpers,6. persons in the personal service of another, and7. workers who are paid by results as determined by the Secretary of Labor in appropriate regulations.

Managerial employees - those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof, and to other officers or members of the managerial staff. (Art. 82)"Field personnel" - non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty. (Art. 82)

Rationale Exemption Managerial Employees-The philosophy behind the exemption of managerial EEs from the 8- Hour Labor Law is that such workers are not usually employed for every hour of work but their compensation is determined considering their special training, experience or knowledge which requires the exercise of discretion and independent judgment, or perform work related to management policies or general business operations along specialized or technical lines. For these workers it is not feasible to provide a fixed hourly rate of pay or maximum hours of labor. (National Waterworks and Severage Authority v. NAWASA Consolidated Unions, 1965)

Tests Field Personnel-The clause "whose time and performance is unsupervised by the employer" did not amplify but merely interpreted and expounded the clause "whose actual hours of work in the field cannot be determined with reasonable certainty." The former clause is still within the scope and purview of Article 82 which defines field personnel. Hence, in deciding whether or not an EE's actual working hours in the field can be determined with reasonable certainty, query must be made as to whether or not such EE's time and performance is constantly supervised by the employer. (Union of Filipro Employees v. Vivar, 1992) Actual hours work in the field is to be read in conjunction with Rule IV, Book III of the Implementing Rules. Therefore field personnel are EEs whose time and performance is unsupervised by the employer. (Salazar v. NLRC, 1996) If required to be at specific places at specific times, EEs including drivers cannot be said to be field personnel despite the fact that they are performing work away from principal office of EE. (Auto Bus Transport Systems, Inc. v. Bautista, 2005)

Rationale Exemption Piece Worker-Philosophy underlying the exclusion of piece workers from the 8- hour law is that said workers are paid depending upon the work they do irrespective of the amount of time employed in doing said work. (Red V Coconut Products Ltd., v. CIR, 1966)II.HOURS WORKEDNormal Hours of Work-The normal hours of work of any employee shall not exceed eight (8) hours a day. (Art. 83)

Special Rule for Health Personnel:-Health personnel in cities and municipalities with a population of at least one million (1,000,000) or in hospitals and clinics with a bed capacity of at least one hundred (100) shall hold regular office hours for eight (8) hours a day, for five (5) days a week, exclusive of time for meals. (Art. 83)

Exception to the Special Rule:-Exigencies of the service require work for six 6 days or 48 hours, in which case, they shall be entitled to an additional compensation of at least 30% of their regular wage for work on the sixth day.(Art. 83)"health personnel"1. resident physicians, 2. nurses,3. nutritionists,4. dietitians,5. pharmacists,6. social workers,7. laboratory technicians,8. paramedical technicians,9. psychologists,10. midwives,11. attendants, and12. all other hospital or clinic personnel.(Art. 83)Note: Normal hours of work may be shortened or compressed.Regular Working Hours and Days of Hospital and

Clinic Personnel-Not more than 8 hrs. in any one day and not more than 40 hrs. in any one week- Not more than 5 days in a work week. The workweek may begin at any hour and on any day

Overtime Work of Hospital and Clinic Personnel- May be scheduled to work for more than 5 days or 40 hrs. a week, provided employee is paid for overtime work-Overtime: additional compensation of regular wage + at least 30% thereof

Considered as Compensable Hours Worked1. All time during which an employee required to be on duty or to be at the employers premises or to be at a prescribed work place; and2. All time during which an employee suffered or permitted to work.3. Rest periods of short duration during working hours.

*PRINCIPLES OF DETERMINING HOURS WORKED1. All hours which the Ee is required to give to his Er regardless of whether or not such hours are spent in productive labor or involve physical or mental exertion. 2. Rest period is excluded from hours worked, even if Ee does not leave his workplace, it being enough that: a. He stops working b. May rest completely c. May leave his workplace, to go elsewhere, whether within or outside the premises of the workplace 3. All time spent for work is considered hours worked if: a. The work performed was necessary b. If it benefited the Er c. Or the Ee could not abandon his work at the end of his normal working hours because he had no replacement d. Provided, the work was with the knowledge of his Er or immediate supervisor 4. The time during which an Ee is inactive by reasons of interruptions in his work beyond his control shall be considered working time: a. If the imminence of the resumption of the work requires the Ees presence at the place of work or b. If the interval is too brief to be utilized effectively and gainfully in the Ees own interest. (Sec. 4, Rule I, Book III, IRR)

COMPRESSED WORKWEEKA: The normal workweek is reduced to less than 6 days but the total number of workhours of 48 hours per week shall remain. The normal workday is increased to more than 8 hours but not to exceed 12 hours, without corresponding overtime premium. The concept can be adjusted accordingly depending on the normal workweek of the company. (Department Advisory Order No. 2, Series of 2009) *Validity of Compressed Workweek-The validity of the reduction of working hours can be upheld when the arrangement is temporary, it is a more humane solution instead of a retrenchment of personnel, there is notice and consultations with the workers and supervisors, a consensus is reached on how to deal with deteriorating economic conditions and it is sufficiently proven that the company was suffering from losses. Under the Bureau of Working Conditions bulletin, a reduction of the number of regular working days is valid where the arrangement is resorted to by the employer to prevent serious losses due to causes beyond his control, such as when there is a substantial slump in the demand for his goods or services or when there is lack of raw materials. There is one main consideration in determining the validity of reduction of working hours that the company was suffering from losses. A year of financial losses would not justify a reduced workweek. (Linton Commercial v. Hellera, G.R. No. 163147, October 10, 2007)* Requisites for exception to 8 hour a day (VolDimBen OTSTem)1. The Ee voluntarily agrees to it 2. There is no diminution in their weekly or monthly take home pay or fringe benefits 3. The benefits are more than or at least commensurate or equal to what is due the Ees without the compressed work week 4. OT pay will be due and demandable when they are required to work on those days which should have ceased to be working days because of the compressed work week schedule. 5. No strenuous physical exertion or that they are given adequate rest periods. 6. It must be for a temporary duration as determined by the DOLE. (2005 Bar Question) *Requisites for adoption of compressed workweek 1. The Er shall notify the DOLE through the Regional Office which has jurisdiction over the workplace, of the adoption of compressed workweek. 2. The notice shall be in Report Form attached to the advisory. 3. The Regional Office shall conduct an ocular visit to validate whether the adoption of the flexible work arrangements is in accordance with this issuance. (Department Advisory Order No. 2, Series of 2009.)WORK INTERRUPTION DUE TO BROWNOUTS *Guidelines on power interruption1.Brownouts of short duration but not exceeding 20 minutes shall be treated as worked or compensable hours whether used productively by the employees (Ees) or not. 2. Brownouts running for more than 20 minutes may not be treated as hours worked provided any of the following conditions are present: a. The Ees can leave their workplace or go elsewhere within or without the work premises; or b. The Ees can use the time effectively for their own interest. 3. In each case, the Er may extend the working hours of his Ees outside the regular schedules to compensate for the loss of productive manhours without being liable for OT pay. 4. Industrial enterprises with one or two work shifts may adopt any of the work shift prescribed for enterprises with 3 work shifts to prevent serious loss or damage to materials, machineries, or equipment that may result case of power interruptions. (Policy Instruction No. 36)III.MEAL PERIODS-Every Er shall give his Ees not less than 60 minutes or 1 hour timeoff for regular meals.Except: meal period of not less than 20 mins. in the following cases compensable hours worked:1. Where the work is non-manual work in nature or does not involve strenuous physical exertion2. Where the establishment regularly operates not less than 16 hours a day3. In case of actual or impending emergencies or there is urgent work to be performed on machineries, equipment or installations to avoid serious loss which the employer would otherwise suffer4. Where the work is necessary to prevent serious loss of perishable goodsRest periods or coffee breaks running from 5 to 20 mins. considered as compensable working time.- To shorten meal time to less than 20 mins, is not allowed. If the so-called meal time is less than 20 mins., it becomes only a rest period.*Not Compensable Ee requested for the shorter meal time so that he can leave work earlier than the previously established schedule. Requisites: a. Ees voluntarily agree in writing and are willing to waive OT pay for the shortened meal period; b. No diminution in the salary and other fringe benefits of the Ees which are existing before the effectivity of the shortened meal period; c. Work of the Ees does not involve strenuous physical exertion and they are provided with adequate coffee breaks in the morning and afternoon; d. Value of the benefits derived by the Ees from the proposed work arrangements is equal to or commensurate with the compensation due them for the shortened meal period as well as the OT pay for 30 minutes as determined by the Ees concerned; e. OT pay will become due and demandable after the new time schedule f. Arrangement is of temporary duration. -Being timeoff, it is not compensable. Employee must be completely relieved from duty.-It is compensable where the lunch period or meal time: 1. Is predominantly spent for the employers benefit; or 2. Where it is less than 20 minutes Note: Where during meal period, the laborers are required to stand by for emergency work, or where the meal hour is not one of complete rest, such is considered OT. (Pan Am vs. Pan Am Ees Association, G.R. No. L16275, Feb. 23, 1961) Rest periods or coffee breaks running from 5 to 20 minutes shall be considered as compensable working time. (Sec. 7, Rule I, Book III, IRR)-since the 1 hour meal period (noncompensable) is not given during OT work because the latter is usually for a short period and to deduct from the same would reduce to nothing the Ees OT work. Thus, the 1 hour break for meals during OT should be treated as compensable.

Idle Time means time when EE is not working or completely at rest, or can leave the work spot, therefore, not compensable time, except if the work is continuous, then it is compensable time.

Waiting Time Arrica v NLRC case: The 30-minute assembly time was NOT compensable time. Accdg. to SC, such assembly is a routinary practice of EEs, and the proceedings attendant thereto are not infected with complexities so as to deprive EEs time to attend to their personal pursuits. (Sir: This is not good doctrine though)

Travel Time The Basic Question to ask in determining WON travel time is compensable is: For whose benefit? In Rada v NLRC, travel time was instituted by the company for its benefit in order to answer the problem of losses connected with the frequent tardiness of EEs. Hence, travel time was compensable time.*Entry Time Cards cannot be considered substantial evidence to determine the number of hours worked.IV.NIGHT SHIFT DIFFERENTIAL-It is additional compensation of not less than 10% of an Ees regular wage for every hour worked between 10:00 pm to 6:00 am, whether or not such period is part of the workers regular shift.

NSD = (10% x regular wage/hr.) x no. of hrs. of work between 10 pm 6 am- If work done between 10 pm and 6 am is OT work, the NSD should be based on the OT rate.

Employees NOT Covered by NSD1. Those of the government and any of its political subdivisions, including government-owned and/or controlled corporations2. Those of retail and service establishments regularly employing not more than 5 workers3. Domestic helpers and persons in the personal service of another4. Managerial employees5. Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.*Employees cannot waive the right to NSD because such waiver is against public policy. (Mercury Drug Co., Inc. vs. Dayao, et al., G.R. No. L30452, Sep. 30, 1982)except those with higher/better benefits.

V.OVERTIME WORK*Overtime Work and Offsetting ProhibitionOvertime work - Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least 25% thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least 30% thereof. (Art. 87)

Undertime not offset by overtime - Undertime work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required in this Chapter. (Art. 88)

Emergency overtime work - Any employee may be required by the employer to perform overtime work in any of the following cases: (Art. 89)a. When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive;b. When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;c. When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage to the employer or some other cause of similar nature;d. When the work is necessary to prevent loss or damage to perishable goods; ande. Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer. (Art. 89)

Computation of additional compensation - For purposes of computing overtime and other additional remuneration as required by this Chapter, the "regular wage" of an employee shall include the cash wage only, without deduction on account of facilities provided by the employer.

Overtime Pay (OT) work exceeding eight hours within the workers 24-hour workday. Work within the Eees shift is not overtime.- OT on a Regular Day: regular wage + at least 25% thereof- OT on a Holiday/Eees Rest Day: rate of 1st 8 hrs. on holiday/rest day + at least 30% thereof.- Since the OT work is considered hourly, the pay rate is computed also on per hour basis. The daily wage is divided by 8 to get the hourly base rate.- If employee is paid on a monthly salary basis, the daily rate is obtained by the following formula:Daily Rate = Monthly salary x 12 Total no of days considered paid in a year- Permissible for the employer to stipulate that the employees monthly salary constitutes payment for all the days of the month, including rest days and holidays, where the employees monthly salary, when converted by the increased divisor into its daily equivalent, would still meet minimum wage.

Regular Wage includes the cash wage only, without deduction on account of facilities provided by the employer

Conditions to be entitled to OT pay1. Actual rendition of OT work2. Submission of sufficient proof that said work was actually performed3. OT work is with the knowledge and consent of the employer

Compulsory OT Work (provided employee paid the additional compensation required)(CCUNNN)1. Country at war/National or Local Emergency2. Completion of work started before the 8th hour and is necessary to prevent serious obstruction or prejudice to the business3. Urgent work to be performed on Machines to avoid serious loss or damage to employer4. Necessary to Prevent loss of life/property or Imminent danger to public safety5. Necessary to prevent loss or damage to perishable goods6. Necessary to avail of favorable weather or environmental condition

Undertime NOT Offset by OT an employees regular pay rate is lower than the OT rate. Offsetting the undertime hours against the OT hours would result in undue deprivation of the employees extra pay for OT work.- Right to OT pay cannot be waived. But when the alleged waiver of OT pay is in consideration of benefits and privileges which may even exceed the OT pay, the waiver may be permitted.

VI.WEEKLY REST DAY-It shall be the duty of every employer, whether operating for profit or not, to provide each of his employees a rest period of not less than 24 consecutive hours after every 6 consecutive normal work days. (Art. 91a)

Scheduling of Rest DayRight to weekly rest day - The employer shall determine and schedule the weekly rest day of his employees subject to collective bargaining agreement and to such rules and regulations as the Secretary of Labor and Employment may provide. However, the employer shall respect the preference of employees as to their weekly rest day when such preference is based on religious grounds. (Art. 91b)Exception:1. CBA 2. Rules and regulations as the SLE provides 3. Preference of employee (Ee) based on religious grounds Ee shall make known his preference in writing at least 7 DAYS before the desired effectivity of the initial rest day so preferred. (Sec. 4(1), Rule III, Book III, IRR) Exception to exception 3: Employer (Er) may schedule the WRD of his choice for at least 2 days in a month if preference of the employee will inevitably result in: a. serious prejudice to the operations of the undertaking and b. the Er cannot normally be expected to resort to other remedial measures. (Sec. 4(2), Rule III, Book III, IRR)

*Compulsory Work and CompensationWhen employer may require work on a rest day - The employer may require his employees to work on any day:a. In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and property, or imminent danger to public safety;b. In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer would otherwise suffer;c. In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures;d. To prevent loss or damage to perishable goods;e. Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer; andf. Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.

VII.HOLIDAYSRight to holiday pay - Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than 10 workers. (Art. 94a)

*Coverage and Purpose-The Secretary of Labor cannot exempt Man trade from paying holiday pay just because its employees are uniformly paid by the month irrespective of the number of working days therein. The Labor Code only exempts retail and service establishments regularly employing less than 10 workers. (Man trade / FMC Division Employees and Workers Union v. Bacungan, 1986)-Muslim holidays are provided for in the code of Muslim personal laws.- Art. 170 of the same code: 169 must be read in conjunction with Art. 94.- There should be no distinction between Muslims & non-Muslims as regards to the payment of benefits for Muslim holidays.-Wages & other emoluments granted by law to the working man are determined on the basis of the criteria laid down by laws & not on the basis of the workers faith.- Art. 3(3), PD 1083: nothing herein shall be construed to operate to the prejudice of a non-Muslim. (San Miguel Corp. v. Court of Appeal, 2002)

Holiday pay - legislative benefit enacted as part of the constitutional imperative that the state shall afford protection to labor.

Holiday pay purpose:-not merely to prevent diminution of the monthly income of the workers on account of work interruptions,-to enable the worker to participate in the national celebrations held during the days identified as with great historical & cultural significance unlike a bonus, which is a management prerogative, holiday pay is a statutory benefit demandable under the law. (Asian Transunion Corp. v. Court of Appeals, 2004).

HOLIDAY PAY-It is a premium given to employees (Ees) pursuant to law even if he has not been suffered to work on a regular holiday. It is limited to the 11 regular holidays, also called legal holidays listed by law. The employee (Ee) should not have been absent without pay on the working day preceeding the regular holiday.-The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate. (Art. 94b)Coverage: (Sec. 1 Rule 4 of IRR)All employeesExcept: (Sec. 1 Rule 4 of IRR)1. Those of the government and any of the political subdivision, including government-owned and controlled corporation;2. Those of retail and service establishments regularly employing less than 10 workers;3. Domestic helpers and persons in the personal service of another;4. Managerial employees as defined in Book 3 of the Code;5. Field personnel6. other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.

A.SPECIAL HOLIDAYSClasses of special holidays:1. National Special Public Holiday GENERAL RULE: Non- working days Exception: Otherwise declared by the President 2. Local Special Public Holiday Regular working day. (LOI 814 as amended by LOI 1087) 3. Special National Holiday

B.REGULAR HOLIDAYS1. New Years Day - Jan. 12. Maundy Thursday - Movable Date3. Good Friday - Movable Date4. Araw ng Kagitingan - April 95. Labor Day - May 16. Independence Day - June 127. Natl Heroes Day - Last Sun. of Aug.8. Bonifacio Day - Nov. 309. Eidul Fitr - Movable Date10. Christmas Day - Dec. 2511. Rizal Day - Dec. 30Note: RA 9492 has already been superseded by Presidential Proclamation No. 18 issued by President Benigno C. Aquino III placing the observance of regular holidays and national special days according to their respective dates in the calendar.

Muslim Holidays - The MHs, except Eidl Fitr, are observed in specified Muslim areas. All private corporations, offices, agencies and entities or establishments operating within the designated Muslim provinces and cities are required to observe MH. Eidl Fitr and/or Eidl Adha as a national holiday- The proclamation declaring a national holiday for the observance of Eidl Fitr and/or Eidl Adha shall be issued: 1. After the approximate date of the Islamic holiday has been determined in accordance with the: a. Islamic Calendar (Hijra) or b. Lunar Calendar or c. Upon astronomical calculations d. Whichever is possible or convenient 2. The Office of Muslim Affairs shall inform the Office of the President on which day the holiday shall fall. (Sec.2, Proc. No. 1841) * Christians working within the Muslim areas may not report for work during MH. Not only Muslim but also Christian Ee in the designated provinces and cities are entitled to HP on the MH. (SMC v. CA, G.R. 146775, Jan. 30, 2002)* Muslim Ees shall be excused from work during MH without diminution of salary or wages. Exception: Those who are permitted or suffered to work on MH are entitled to at least 100% basic pay + 100% as premium of their basic pay. (SMC v. CA, G.R. No. 146775, Jan. 30, 2002) Note: Regular holiday falling within temporary or periodic shutdown and temporary cessation of work are compensable. However, if the temporary or periodic shutdown and cessation of work is due to business reverses, the employer may not pay the RHs during such period.

VIII.SERVICE INCENTIVE LEAVEService Incentive Leave (SIL) every employee who has rendered at least 1 year of service shall be entitled to a yearly service incentive leave of 5 days with pay.- Commutable to its money equivalent if not used or exhausted at the end of the year.*At least 1 year service service for not less than 12 months, whether continuous or broken reckoned from the date the employee started working, including authorized absences and paid regular holidays unless the working days in the establishment as a matter of practice or policy, or that provided in theemployment contract is less than 12 months, in which case said period shall be considered as one year

*Employees NOT Covered1. Those of the government and any of its political subdivisions, including government-owned and controlled corporations2. Domestic helpers and persons in the personal service of another3. Managerial employees4. Field personnel and other employees whose performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.5. Those who are already enjoying the benefit herein provided6. Those enjoying vacation leave with pay at least five days7. Those employed in establishments regularly employing less than ten employees

IX.SERVICE CHARGE-apply only to establishments collecting service charges such as hotels, restaurants, lodging houses, night clubs, cocktail lounge, massage clinics, bars, casinos and gambling houses, and similar enterprises, including those entities operating primarily as private subsidiaries of the Government.-all employees of covered employers, regardless of their positions, designations or employment status, and irrespective of the method by which their wages are paid EXCEPT to managerial employees.* THE DISTRIBUTION OF EMPLOYEE MUST BE PAID Not less than once every 2 weeks or twice a month at intervals not exceeding 16 days.

X.WAGESWages2 preliminary things to consider:1 Coverage (A97): who are included; government defined as ER repayment of wages2 A97 (f) Definition of WageIN GENERALCoverage-Employer - includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include the government and all its branches, subdivisions and instrumentalities, all government-owned or controlled corporations and institutions, as well as non-profit private institutions, or organizations.(Sec 97(b))Employee includes any individual employed by an employer.(Sec 97(c))Employ includes to suffer or permit to work.(Sec 97(e))This Title shall NOT apply to:1. farm tenancy or leasehold2. domestic service, &3. persons working in their respective homes in needle work or in any cottage industry duly registered in accordance with law. (Sec 98)- paid to any employee shall mean the remuneration or earnings, however designated,-capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same.-which is payable by an employer to an employee under a written or unwritten contract of employment- for work done or to be done, or for services rendered or to be rendered and-includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, of:1. board,2. lodging, or3. other facilities customarily furnished by the employer to the employee.4. Fair and reasonable value - shall not include any profit to the employer, or to any person affiliated with the employer.

XI.MINIMUM WAGE lowest wage rate fixed by law that an employer can pay his employee; payment of minimum wages is not dependent on the employers ability to pay.-In the determination of such regional minimum wages, the Regional Board shall, among other relevant factors consider the following:

1.The demand for living wages 2.Wage adjustment visavis the consumer price index 3.The cost of living and changes or increases therein 4.The needs of workers and their families 5.The need to induce industries to invest in the countryside 6.Improvements in standards of living 7.The prevailing wage levels 8.Fair return of the capital invested and capacity to pay of employers 9.Effects on employment generation and family income 10.The equitable distribution of income and wealth along the imperatives of economic and social development

XII.WAGE DISTORTION- A situation where an increase in wage results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among the Eegroups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service or other logical bases of differentiation.

ELEMENTS OF WAGE DISTORTION1. An existing hierarchy of positions with corresponding salary rates. 2. A significant change or increase in the salary rate of a lower pay class without a corresponding increase in the salary rate of a higher one; 3. The elimination of the distinction between the 2 groups or classes; and 4. The WD exists in the same region of the country. (Alliance Trade Unions v. NLRC, G.R. No. 140689, Feb. 17, 2004) *The Er and the union shall negotiate to correct the distortions. If there is no union, the Er and the workers shall endeavor to correct such distinctions.

Basic Principles of Wages1. The concept of WD assumes an existing group or classification of Ees which establishes distinctions among such Ees on some relevant or legitimate basis. This classification is reflected in a differing wage rate for each of the classes of Ees 2. Often results from govt decreed increases in minimum wages. 3. Should a WD exist, there is no legal requirement that, in the rectification of that distortion by readjustment of the wage rates of the differing classes of Ees, the gap which had previously or historically existed be restored in precisely the same amount. In other words, correction of a WD may be done by reestablishing a substantial or significant gap (as distinguished from the historical gap) between the wage rates of the differing classes of Ees. 4. The reestablishment of a significant difference in wage rates may be the result of resort to grievance procedures or collective bargaining negotiations. (Metro Transit Org., Inc. v. NLRC, G.R. No. 116008, July 11, 1995)

XIII.NON DIMINUTION OF BENEFITSConcept of nondiminution of benefitsGENERAL RULE: Benefits being given to employees (Ees) cannot be taken back or reduced unilaterally by the employer (Er) because the benefit has become part of the employment contract, whether written or unwritten. Exception:To correct an error, otherwise, if the error is not corrected for a reasonable time, it ripens into a company policy and Ees can demand it as a matter of right. * It is applicable if it is shown that the grant of benefit: 1. Is based on an express policy of the law; or 2. Has ripened into practice over a long period of time and the practice is consistent and deliberate and is not due to an error in the construction/ application of a doubtful or difficult question of law.

XIV.PAYMENT BY RESULTS regulated by DOLE Secretary to ensure the payment of fair and reasonable wage rates, preferably through time and motion studies or in consultation with representatives of workers and employers organizations. Includes pakyaw, piece work and other noontime work.

XV.PAYMENT OF WAGESFormForms of payment NOT allowed:- promissory notes,- vouchers,- coupons,- tokens,- tickets,- chits, or- any object other than legal tender (Art 102)*Payment by check or money order allowed:-when customary on the date of the effectivity of this Code, or- necessary because of special circumstances as specified in appropriate regulations or as stipulated in a CBA. (Art 102)*Payment through banks; Conditions:-written permission of the majority of the EEs/workers concerned- 25 or more EEs-establishment located within 1 km radius of a commercial, savings or rural bank- payment of wages within the period fixed in the LC.(RA 6727, Sec 7) Labor Advisory on Payment of Salaries through Automated Teller Machine (ATM) Based on Article 104, as well as the provisions of Sec. 4, Rule VIII, Book III of the Codes Implementing Rules and considering present day circumstances, practices and technology, employers may adopt a system of payment other than in the workplace, such as through automated teller machine (ATM) of banks, provided that the following conditions are met:1. The ATM system of payment is with the written consent of the employees concerned.2. The employees are given reasonable time to withdraw their wages from the bank facility which time, if done during working hours, shall be considered compensable hours worked.3. The System shall allow workers to receive their wages within the period or frequency and in the amount prescribed under the Labor Code, as amended.4. There is a bank or ATM facility within a radius of one kilometer to the place of work5. Upon request of the concerned employee/s, the employer shall issue a record of payment of wages, benefits and deductions for particular period.6. There shall be no additional expenses and no dimunition of benefits and privileges as a result of the ATM system of payment.7. The employer shall assume responsibility in case the wage protection provisions of law and regulations are not complied with under the arrangement.

*Full Payment- The law does not consider as valid any agreement whereby a worker agrees to receive less compensation than what he is entitled to recover. A deed of release or quitclaim cannot bar an EE from demanding benefits to which he is legally entitled. (Lopez Sugar Corp. v. Franco, 2005)

XVI.CONTRACTOR OR SUBCONTRACTOR-In the event that the contractor or subcontractor fails to pay the wages of his employees in accordance with this Code, the employer shall be jointly and severally liable with his contractor or subcontractor to such employees to the extent of the work performed under the contract, in the same manner and extent that he is liable to employees directly employed by him. (Art 106)

XVII.INDIRECT EMPLOYER-The provisions of the immediately preceding article shall likewise apply to any person, partnership, association or corporation which, not being an employer, contracts with an independent contractor for the performance of any work, task, job or project.

XVIII.WORKER PREFERENCE IN CASE OF BANKCRUPCY-In the event of bankruptcy or liquidation of an employer's business, his workers shall enjoy first preference as regards their wages and other monetary claims, any provision of law to the contrary notwithstanding. Such unpaid wages and monetary claims shall be paid in full before the claims of the Government and other creditors may be paid. (As amended by R. A. 6715)

*Bankruptcy workers shall enjoy first preference as regards their wages and other monetary claims, any provisions of law to the contrary notwithstanding. Such unpaid wages and monetary claims shall be paid in full before claims of the government and other creditors may be paid.- A declaration of bankruptcy or a judicial liquidation must take place before the workers preference may be enforced.- Establishes a preference of credit and NOT alien.-Bankruptcy is referred to in the Philippines as Insolvency. It denotes the state of an entity or person that has liabilities greater than its assets.

XIX.ATTORNEYS FEES1. In case of unlawful withholding of wages, the culpable party may be assessed attorneys fees equivalent to ten percent of the amount of wages recovered.2. It shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings for the recovery of wages, attorneys fees which exceed ten percent of the amount of wages recovered.

XX.PROHIBITION REGARDING WAGESArt. 112. NonInterference in Disposal of WagesNo employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages. He shall not in any manner force, compel or oblige his employees to purchase merchandise, commodities or other properties from the employer or from any other person, or otherwise make use of any store or service of such employer or any other person.Art. 113 Wage DeductionNo employer in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees, except: (a) In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by him as premium on the insurance; (b) For union dues, in cases where the right of the worker or his union to check off has been recognized by the employer or authorized in writing by the individual worker concerned; and (c) In cases where the employer is authorized by law or regulations issued by the Secretary of Labor.

Art.114 Deposits for loss or damage-No employer shall require his worker to make deposits from which deductions shall be made for the reimbursement of loss of or damage to tools, materials or equipments supplied by the employer; except when the employer is engaged in such trades, occupations or business where the practice of making deductions or requiring deposits is a recognized one, or is necessary, or desirable as determined by the Secretary of Labor in appropriate rules and regulations.

Art. 115 LimitationsNo deduction from the deposits of an employee for the actual amount of the loss or damage shall be made unless the employee has been heard thereon, and his responsibility has been clearly shown.

Art 116 Withholding of Wages and Kickbacks ProhibitedIt shall be unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker or induce him to give up any part of his wages by force, stealth, intimidation, threat or by any other means whatsoever without the workers consent.

Art 117 Deduction to Ensure EmploymentIt shall be unlawful to make any deduction from the wages of any employee for the benefit of the employer or his representative or intermediary as consideration of a promise of employment or retention in employment or retention in employment.

Art. 118 Retaliatory MeasuresIt shall be unlawful for an employer to refuse to pay or reduce the wages and benefits, discharge or in any manner discriminate against any employee who has filed any complaint instituted any proceeding under this Title or has testified or is about to testify in such proceedings.

XXI. EMPLOYMENT OF WOMEN1. Women*Consti recognizes the role of women (Art. 2 Sec.14)*3 provisions: 1) re protection the institution of marriage, 2) protecting womens pregnancy, and 3) discrimination provisions on women under certain conditions.

3 Areas of Concern:[a] Institution of marriage A136 provides for stipulation against marriage. When does the law apply? Pre-employment and Post-employment. In case of the pre-employment, does the law apply within the time of pre-hiring or hiring?[b] Law on pregnancy 2 associated laws: Paternity Leave and Maternity Leave[c] Discrimination A135 LC prohibits discrimination against women with respect to terms and conditions of employment solely on account of their sex. There must be equal opportunity, growth, work and pay between male and female EEs.Special Women Workers: A138 LC provides for a classification of certain women workers.- Women under certain conditions deemed EEs when they meet the test of the workplace, meaning, when they are permitted or suffered to work in bars, lounges, night clubs and other similar establishments.- Wage is immaterial: with or without compensation- Sec. of Labor should provide rules and regulations re terms and conditions of these women workersStar Paper case No spouse employment policy declared invalid.

XXII.UNLAWFUL ACTS AGAINST WOMEN1. Discrimination with respect to the terms and conditions of employment solely on account of sex a. Payment of lesser compensation to a female Ee as against a male Ee for work of equal value b. Favoring a male Ee with respect to promotion, training opportunities, study and scholarship grants on account of gender. (Art. 135) c. Favoring a male applicant with respect to hiring where the particular job can equally be handled by a woman d. Favoring a male Ee over a female Ee with respect to dismissal of personnel.

2. Stipulating, whether as a condition for employment or continuation of employment: a. That a woman Ee shall not get married, or b. That upon marriage, such woman Ee shall be deemed resigned or separated. (Art. 136) Note: A woman worker may not be dismissed on the ground of dishonesty for having written single on the space for civil status on the application sheet, contrary to the fact that she was married. (PT&T Co. v. NLRC, G.R. No. 118978, May 23, 1997)

3. Dismissing, discriminating or otherwise prejudice a woman Ee by reason of her being married. (Art. 136)

4. Denying any woman Ee benefits provided by law. (Art. 137)

5. Discharge any woman for the purpose of preventing her from enjoying any of the benefits provided by law. (Art. 137)

6. Discharging such woman on account of her pregnancy, or while on leave or in confinement due to her pregnancy. (Art. 137)

7. Discharging or refusing the admission of such woman upon returning to her work for fear that she may again be pregnant. (Art. 137) Note: Discrimination in any form from pre employment to post employment, including hiring, promotion or assignment, based on the actual, perceived or suspected HIV status of an individual is unlawful. (Philippine AIDS Prevention and Control Act of 1998, [R.A. 8504]) Under Sec. 2 of R.A. 9710 or the Magna Carta of Women, the State condemns discrimination against women in all its forms and pursues by all appropriate means and without delay the policy of eliminating discrimination against women in keeping with the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) and other international instruments consistent with Philippine law. The State shall accord women the rights, protection, and opportunities available to every member of society. The State shall take steps to review and, when necessary, amend and/or repeal existing laws that are discriminatory to women within three (3) years from the effectivity of this Act. (Sec. 12, R.A. 9710)

XXIII.EMPLOYMENT OF MINORS2 Areas of Concern:[a] Minimum Employable Age: 15 years oldGeneral. Rule: Below 15 y.o. NOT to be employedExceptions: 1) when employed by parents of legal guardian,2) when employment in entertainment is essential, provided that children are protected from any hazardous undertaking, both physical and moral hazards[b] Absolute prohibition on that range: No person shall employ children models in all commercial ads, promoting alcoholic beverages, intoxication drinks, tobacco and its b-products, and violence (Sec.14 RA 7610)

Main Requisite before Employment: ER must secure a work permit from DOLE before engaging the child.

XXIV.EMPLOYMENT OF HOUSE HELPERSHousehelpersA141 LC coverage: all persons rendering services in households for compensation Domestic or Household services shall mean service in ERs home which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of ERs household, including services of family drivers.*Househelpers shall not be assigned to non-household work assignment. If suffered to work in a commercial, industrial or agricultural enterprise, he must be paid the prevailing wage or salary of suchworkers.*Domestic servants or Househelpers are excluded from fringe benefitsLegal measure:- place of work: ERs home- nature of work: for maintenance and enjoyment of ERs home and for personal comfort and convenience of ERs family- inclusion of family driver

XXV.HOMEWORKERSHomeworkersA153 LC Regulations of industrial homework to be done by DOLE to ensure general welfare and protection of homeworkers*Industrial Homework: A system of production under which work for an ER or contractor is carried out by a homework at his/her home.Material may or may not be furnished by ER or contractor.

LABOR RELATIONS

BOOK V:LABOR RELATIONS

I.POLICY AND DEFINITION-It is the policy of the State:(a) To promote and emphasize the primacy of free collective bargaining and negotiations, including voluntary arbitration, mediation and conciliation, as modes of settling labor or industrial disputes;(b) To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of social justice and development;(c) To foster the free and voluntary organization of a strong and united labor movement;(d) To promote the enlightenment of workers concerning their rights and obligations as union members and as employees;(e) To provide an adequate administrative machinery for the expeditious settlement of labor or industrial disputes;(f) To ensure a stable but dynamic and just industrial peace; and(g) To ensure the participation of workers in decision and policy-making processes affecting their rights, duties and welfare.(j). To encourage a truly democratic method of regulating the relations between the employersand employees by means of agreements freely entered into through collective bargaining, nocourt or administrative agency or official shall have the power to set or fix wages, rates of pay,hours of work or other terms and conditions of employment, except as otherwise provided underthis Code. (As amended by Section 3, Republic Act No. 6715, March 21, 1989).

II. RIGHT TO SELF ORGANIZATION-It includes the right: 1. To form, join and assist labor organizations for the purpose of collective bargaining (CB) through representatives of their own choosing; and 2. To engage in lawful and concerted activities for the purpose of CB or for their mutual aid and protection. (Art. 246)

The persons/Ees eligible to join a labor organization (LO) for purposes of CB -The entities covered are all persons employed in: 1. Commercial industrial, and agricultural enterprises; and 2. In religious, charitable, medical or educational institutions whether operating for profit or not. (Art. 243)

The persons/Ees eligible to join a labor organization for mutual aid and protection (AmInIt SelRuWit)-The following enjoy the right to selforganization for mutual aid and protection: 1. Ambulant workers 2. Intermittent workers 3. Itinerant workers 4. Selfemployed people 5. Rural workers 6. Those without and definite Ers. (Art. 243)

The persons/Ees not granted the right to selforganization: 1. High level or Managerial Government Ees. (Sec. 3, E.O. 180) 2. Ees of International organizations with immunities. (ICMC v. Calleja, G.R. No. 85750, Sep. 28, 1990) 3. Managerial Employees. (Art. 212 of LC) 4. Members of the AFP including the police officers, policemen, firemen, and jail guards. (Sec. 4, E.O. 180) 5. Confidential Employees. (Metrolab Industries Inc. v. Confesor, G.R. No. 108855, Feb. 28, 1996) 6. Employees of cooperatives who are its members. (Benguet Elec. Coop. v. FerrerCalleja, G.R. No. 79025, Dec. 29, 1989); However they may form workers association. (NEECO Ees Assoc. v. NLRC, G.R. No. 16066, Jan. 24, 2000) 7. NonEes. (Rosario Bros. v. Ople, G.R. No. L5390, July 31, 1984) 8. Govt Ees, including GOCCs with original charters. (Arizala v. CA, G.R. Nos. 4363334, Sep. 14, 1990) -Aliens without a valid working permit or aliens with working permits but are nationals of a country which do not allow Filipinos to exercise their right of selforganization and to join or assist labor organizations. (Art. 269 of LC; D.O. No. 9 [1997], Rule II, Sec. 2)

III.MANAGERIAL AND SUPERVISORY EMPLOYEES- Under Art. 245, managerial employees are not eligible to join, assist or form any labor organization.- Supervisory employees shall not be eligible for membership in a labor organization of the rank-and-file employees but may join, assist or form separate labor organizations of their own.

Manager one who is vested with the power or prerogative to lay down an execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees- Note that the management policies must pertain exclusively to labor relations.

Supervisor one, who, in the interest of the employer, effectively recommends managerial actions.Power to recommendMust be both:1. Effective, and2. Requires the Use of Independent Judgment.

IV.CONFIDENTIAL EMPLOYEES-Confidential employees are also prohibited from forming, joining or assisting any labor organization.Confidential Employees a confidential employee is one who is entrusted with confidence on delicate matters, or with custody, handling, or care and protection of the employers property. (National Association of Trade Unions (NATU) Republic Planters Bank Supervisors Chapter v. Honorable Ruben Torres, 1994)- Confidential employees assist and act in a confidential capacity to, or have access to confidential matters of, persons who exercise managerial functions in the field of labor relations [Philips Industrial Development v. NLRC; G.R. No. 88957 (June 25, 1992)]NOTE: Confidential employees may be managerial, supervisory or even a rank and file employee.

Purpose of Disqualification of Confidential Employees Doctrine of Necessary Implication- what is implied in s statute is as much part thereof as that which is expressed- Under Art. 245, confidential employees are not prohibited from joining, assisting, or forming any labor organization. But by virtue of necessary implication, confidential employees are similarly disqualified.- By the very nature of their functions, they assist and act in a confidential capacity to, or have access to confidential matters of, persons who exercise managerial functions in the field of labor relations. As such, the rationale behind the ineligibility of managerial employees to form, assist or join a labor union equally applies to them. (Metrolab Industries, Inc. v. Roldan- Confesor ,1996)

Access to Confidential Labor Relations Information- The information must be related labor relations matters. When the employee does not have access to confidential labor relations information, then the prohibition to form, join, or assist a union does not apply. (Sugbuanon Rural Bank v. Laguesma,2000)- If the access is merely incidental to his duties and not necessary in the performance of such duties, the access does not render the employee a confidential employee (San Miguel Corp. Supervisors & Exempt Union, et. al. v. Laguesma 1997)

V.SECURITY GUARDS- Under RA 6715, they may now join a labor organization of the rank and file or that of the supervisory union, depending on their rank. (Manila Electric Co. v. Secretary of Labor and Employment, GR No. 91902, 20 May 1991)

VI.MEMBERS OF COOPERATIVES

Benguet Electric Cooperative v. Ferrer-Calleja, 180 SCRA 740 (1989)Issue:- Whether employees of a cooperative are qualified to form or join a labor organization for purposes of collective bargaining.

Held:- The right to collective bargaining is not available to an employee of a cooperative who at the same time is a member and co-owner thereof. With respect, however, to employees who are neither members nor co-owners of the cooperative they are entitled to exercise the rights to self-organization, collective bargaining and negotiation. The fact that the member-employees of petitioner (cooperative) do not participate in the actual management of the cooperative does not make them eligible to form, assist or join a labor organization purposes of collective bargaining. They cannot invoke the right to collective bargaining for certainly an owner cannot bargain with himself or his co-owners. It is the fact of ownership of the cooperative, and not involvement in the management thereof, which disqualifies a member from joining any labor organization within the cooperative.

VII.RELIGIOUS OBJECTORSVictoriano v. Elizalde Rope Workers Union, 59 SCRA 54 (1974)- What the Constitution and the Industrial Peace Act recognize and guarantee is the right to form or join associations. Notwithstanding the different theories propounded by the different schools of jurisprudence regarding the nature and contents of a right, it can be safely said that whatever theory one subscribes to, a right comprehends at least 2 broad notions, namely: first, liberty or freedom, i.e. the absence of legal restraint, whereby an employee may act for himself without being prevented by law; and second, power whereby an employee may, as he pleases, join or refrain from joining an association. It is therefore, the employee who should decide for himself whether he should join or not in an association. It is clear, therefore, that the right to join a union includes the right to abstain from joining any union. The legal protection granted to such right to refrain from joining is withdrawn by operation of law, where a labor union and an employer have agreed on a closed shop. What the exception provides is that members of said religious sects cannot be compelled or coerced to join labor unions even when said unions have close shop agreements with the employers; that in spite of any closed shop agreement, members of said religious sects cannot be refused employment or dismissed from their jobs on the sole ground that they are not members of the collective bargaining union. It is clear therefore, that the assailed Act, far from infringing the constitutional provision on freedom of association, upholds and reinforces it. It does not prohibit the members of said religious sects from affiliating with labor unions. If, notwithstanding their religious beliefs, the members of said religious sects prefer to sign up with the labor union, they can do so; the law does not coerce them to join; neither does the law prohibit them from joining; and neither may the employer or labor union compel them to join.

Kapatiran sa Meat and Canning Division v. Ferrer-Calleja, 162 SCRA 367 (1988) - This Courts decision in Victoriano v. Elizalde Rope Workers Union upholding the right of members of the Iglesia no Kristo sect not to join a labor union for being contrary to their religious beliefs, does not bar the members of that sect from forming their own union. The public respondent correctly observed that the recognition of the tenets of that sect xxx should not infringe on the basic right of self-organization granted by the constitution to workers, regardless of religious affiliation.

VIII.GOVERNMENT EMPOLYEES

Art. 244. Right of employees in the public service.

Art. 276. Government employees.

Association of Court of Appeals Employees v. Ferrer-Calleja, 203 SCRA 596 (1991)The terms and conditions of employment in the government service are governed by law. Any understanding between the top officials of a government agency and the union which represent the rank-and-file is subordinate to the law governing the particular issue or situation. Davao City Water District v. Civil Service Commission, 201 SCRA 593 (1991)- By government owned or controlled corporation with original charter, we mean government owned or controlled corporation created by a special law and not under the Corporation Code of the Philippines. It is clear that what has been excluded from the coverage of the CSC are those corporations created pursuant to the Corporation Code.

Government Employees Not Allowed To Unionize1. Members of the Armed Forces2. Police Officers/Policemen3. Firemen4. Jail Guards- High level employees are also not allowed to join the organization of rank and file government employees. High level employees- one whose functions are normally considered policy determining, managerial or one whose duties are highly confidential in nature.

IX.EMPLOYEES OF INTERNATIONAL ORGANIZATIONSInternational Catholic Migration Commission v. Calleja, 190 SCRA 130 (1989) - Labor organizations in the International Catholic Migration Commission (ICMC) and International Rice Research Institute (IRRI), both international organizations, filed a petition for certification election. ICMC and IRRI claimed immunity.Held:- The grant of immunity from local jurisdiction to ICMC and IRRI is clearly necessitated by their international character and respective purposes. The objective is to avoid the danger and partiality and interference by the host country in their internal workings. The exercise of jurisdiction by the DOLE in these instances would defeat the very purpose of immunity, which is to shield the affairs of international organizations, in accordance with international practice, from political pressure or control by the host country to the prejudice of member states of the organization, and to ensure the unhampered performance of their functions. The immunity granted being from every form of legal process except in so far as in any particular case they have expressly waived in their immunity, it is inaccurate to state that a certification election is beyond the scope of that immunity for the reason that it is not a suit against ICMC. A certification election cannot be viewed as independent or isolated process. It could trigger off a series of events in the collective bargaining process together with related incidents and/or concerted activities, which could inevitably involve ICMC in the legal process, which includes any penal, civil and administrative proceedings.

X. ACQUISITION AND RETENTION OF MEMBERSHIP; UNION SECURITY AGREEMENTS

Art. 277. Miscellaneous provision.- Any employee, whether employed for a definite period or not, shall, beginning on his first day ofservice, be considered as an employee for purposes of membership in any labor union.

Art. 248. Unfair labor practices of employers. - Discrimination.- What the law prohibits is discrimination to encourage or discourage membership in a labor organization. Where the purpose is to influence the union activity of employees, the discrimination is unlawful.- However, the inclusion of union security clause in the CBA is not considered ULP.