Labor Law Bar 2011 Notes
Roland Glenn T. Tuazon Ateneo de Manila University Table of contents:
1. FUNDAMENTAL PRINCIPLES AND POLICIES 2. RECRUITMENT AND PLACEMENT
3. LABOR STANDARDS 4. TERMINATION 5. SOCIAL LEGISLATION 6. SELF-ORGANIZATION 7. COLLECTIVE BARGAINING 8. CONCERTED ACTS 9. PROCEDURE
FUNDAMENTAL PRINCIPLES AND POLICIES
What is labor law?
o A regulatory devise, which regulates the relationship between the employer and the worker – the two factors of production
What is labor standards law?
o Establishes the minimum terms and conditions of employment o Rationale: these are necessary for the worker and his family to
survive
o These are beyond then negotiation of the parties; they cannot agree to terms less than those provided in the law. If they do, these are void.
What is labor relations law?
o It is concerned with institutional relationships and does not look as the laborer as an individual, but as a group of workers (union)
o Two aspects of labor relations law: 1. Union and State relationship
2. Union as an organization and its relationship to the members
What is social or welfare legislation?
o It solves the problem of avoiding making the worker a charge on society and solves the problem of continuity of income either in whole or in part if and when some contingencies occur, such as sickness, injuries, premature death, and final death
o What are the laws covered by social legislation?
1. Employees compensation and State Insurance Fund (ECSIF)
2. SSS Law 3. GSIS Law
4. Limited portability law
o Which are applicable to what workers? SSS, to private sector employees
GSIS, to government employees and those in GOCCs Both, to those employed in both fields
Limited portability provides a “tacking provision” for those who have partially fulfilled GSIS and SSS requirements
SSS and GSIS for non-work-connected injuries and ECSIF for work-connected injuries
What is the basis for enacting labor law?
o Constitutional provisions mandating the State to protect laborers
o Police power of the State
What are the sources of labor law?
A. Civil code provisions on contracts B. Collective Bargaining Agreements o 2. Past practices, which are:
Those given voluntarily by the employer without compulsion by law for a sufficient duration
What is sufficient period or duration?
Case by case o 3. Company policies
Those unilaterally designed and implemented by the employer, stating rules and regulations of the company. These can be the source of rights and obligations.
N.B. these are unilaterally imposed by the employer; otherwise, it would fall under contract law.
What is a labor case?
o 1. Involves employer and employee
o 2. Subject of controversy and laws of resolution fall under labor law
Thus, if the area of resolution is civil law and not labor law, such as replevin, then it is not a labor dispute
What is management function?
o These are rules based on the right of ownership, designed for efficient and economical management of the enterprise. It permeates the entire labor code, regardless of field.
o What is the limit to management function?
The law reserves the right to inquire as to the manner of exercise of such right.
How does the law look upon waivers and compromises?
o It looks upon it with disfavor, although not all waivers and compromises are void under law.
o What are the tests of validity of waivers and compromises?
1. Arithmetic measure – is what was received for settlement unconscionable?
2. Relative positions of the employer and employee – what is the educational attainment of each? Was the employee in dire need?
3. Freedom on the part of the worker – was there absence of coercion?
What are the guaranteed rights of laborers under Art XIII, Sec. 3? o 1. Self-organization
o 2. Collective bargaining and negotiations
o 3. Peaceful concerted activities, including right to strike o 4. Security of tenure
o 5. Humane conditions of work o 6. Living wage
o 7. Participation in policy and decision-making processes How does LC Art. 255 operationalize this?
Workers can participate in policy and decision-making processes of the establishment where they are employed as far as it would directly affect their rights, benefits, and welfare
What are the other goals set by this provision? o Full protection to labor
o Full employment and equality of opportunities o Shared responsibility between ER and EEs o Preferential use of voluntary dispute settlement o Two fold rights:
Right of labor to just share in fruits of production Right of enterprises to reasonable returns to
investments
What does the NCC say?
o Art 1700 – relations between labor and capital are not just contractual, but impressed with public interest – must yield to common good
What factors does labor law consider as to contracts? o 1. Due process clause
Labor is considered property
Due process and EPC can protect the employer too, not just the employee
o 2. Liberty of contract and laissez faire
N.B. but the State still retains an interest on the worker as part of society no matter how reckless he may be; thus, the State continues to interfere in contract. Laissez faire is not totally adopted.
When does the Labor code apply?
o 1. There must be an employer-employee relationship o 2. Generally applies to all kinds of employment
N.B. but for GOCCs created and governed by special charter, apply the Civil Service Law instead
o What is the rule on international organizations?
Beyond the coverage of the Labor Code, but the international agreement must contain provisions on method of dispute settlement.
N.B. if not provided, the worker can ask for withdrawal of immunity of suit so that Philippine legal processes can apply.
o What about school teachers?
Public school teachers are covered by the Civil Service Law.
Private school teachers are covered by the Dep. Ed. Manual
But for all matters not covered by these, the Labor Code applies. The most important is probationary employment.
o Does the Labor Code apply to religious corporations? If the nature of the controversy is not religious, then
the Labor Code applies.
o Does the Labor Code apply to managerial employees?
Yes, although certain aspects like Hours of Work do not apply.
RECRUITMENT AND PLACEMENT
RECRUITMENTOF LOCALAND MIGRANT WORKERS
What is recruitment and placement? o Any act of:
Canvassing, enlisting, contracting,
Transporting, utilizing, hiring, procuring workers Includes referrals, contact services, promising or
advertising employment for profit or not, here or abroad
o When is there a presumption of R&P?
When a person or entity offers or promises for a fee employment to two or more persons
o How do you harmonize the definition and the presumption?
Any one act under the definition is sufficient to establish R&P, regardless of number of persons. The presumption is only a rule of evidence which operates when there are two persons to whom employment is promised for a fee and the acts defined above cannot clearly be established.
o Who are “workers”?
All members of the labor force, whether employed or unemployed
What is the State policy under MWA?
o Promotion of overseas recruitment is not State policy, because it seeks to create local opportunities. But while there are workers deployed abroad, there must be protections for them.
o Does the POEA have jurisdiction over ER-EE relations cases for OFWs?
Not anymore. It’s been retransferred to NLRC. The POEA only handles administrative cases.
o What is the nature of employment of seafarers? They are contractual employees
Differentiate license from authority:
o License is authorization to operate a private employment agency. A Private Employment Agency is an entity engaged in R&P for a fee (charged from employer, worker, or both)
o Authority is authorization to operate a private recruitment entity. A Private Recruitment Entity is an entity engaged in R&P without charging any fee
Illegal recruitment
o What is the definition of illegal recruitment under the LC? Any recruitment activities (Art. 13) or prohibitions (Art.
34) undertaken by non-licensees or non-holders of authority
o What is the definition of illegal recruitment under the MWA (RA 8042)?
Any recruitment activities (Art. 13) undertaken by non-licensees or non-holders of authority
Any prohibited acts (Art. 34), whether licensed or non-licensed
o What are the prohibited acts (Art. 34)?
1. Overcharging (whether vis-à-vis schedule of fees or what has been loaned/advanced)
2. Public false information re: recruitment
3. Misrepresentation to secure license or authority 4. Induce or attempt to induce employed worker to
leave job to offer him to another
Except to save him from oppressive employment
5. Influence employer not to hire worker unless coursed through his agency
6. Engage in R&P for harmful or anti-public policy work
7. Obstruct or attempt to obstruct inspection by Sec of Labor or representatives
8. Fail to file reports required by Sec of Labor
9. Substitution or alteration of approved contracts without approval of Sec of Labor
10. Becoming officer or being involved in management of travel agency
11. Withhold or deny travel documents from workers before departure due to financial considerations
Unless authorized by LC
o What are the additional grounds added by MWA, apart from these?
12. Failure to deploy the worker without valid reason 13. Failure to reimburse worker when deployment
does not happen without his fault
Differentiate simple illegal recruitment, illegal recruitment in large scale, illegal recruitment as syndicate:
o Large scale – if committed against 3 or more persons individually or as a group
o By a syndicate – carried out by a group of 3 or more persons conspiring or confederating with each other
o What are these two types of illegal recruitment called? Illegal recruitment as economic sabotage
Can illegal recruitment and estafa coincide?
o If there are pecuniary damages due to previous or simultaneous false pretense resorted to by the entity, then the latter can be sued for estafa under Art. 315
What are the liabilities of the local employment agency and the employer?
o The agency is solidarily liable for the unpaid salaries of the worker, along with the principal/employer. This holds true even if the agency agreement has been severed, if no notice was given to the employee.
o What is the theory of imputed knowledge?
The presumption that knowledge of he agent can be ascribed to the principal as well.
o When is an employee of the entity liable as a principal? When he had knowledge of the offense and had
active and conscious participation. NOT liable as principal when merely carrying out orders of superior.
What is the rule on pre-termination of contract of a MW?
o If there was pre-termination without just cause, the employer will be ordered to pay the workers:
o 1. Full placement fee with 12% interest AND
o 2. Salary for unexpired portion of the contract OR for 3 months for every year of the unexpired term, whichever is lesser o Isn’t this unconstitutional?
Yes, according to Serrano v. Gallant, but R.A. 10022 passed 1 year after reinstated the provision
Is direct hiring allowed for overseas employment?
o As a general rule, no, direct hiring is not allowed. It must be through boards and authorized entities.
o What are the exceptions? 1. Diplomatic corps 2. IOs
3. Other employers allowed by the DOLE
What is the rule on employment of Non-Resident Aliens?
o Either the alien or the employer must obtain an employment permit from the DOLE
o When is the permit issued?
Upon determination of non-availability or a person in the Philippines who is competent, able, and willing at the time of application to perform the services for which the alien is desired
o What is the special rule for those preferred areas of investment?
Permit issued upon recommendation of the government agency in charge of that enterprise
Upon issuance of the employment permit to the NRA, what are the regulations?
o Cannot transfer employment without prior approval from DOLE Secretary
o Else, punished under the LC and/or deported REGULATION AND ENFORCEMENT
What is the rule on remittance of foreign exchange earnings? o Employment contracts must contain a proviso that makes
remittance of the following rates mandatory – 1. Seamen – 70% of basic salary
2. Workers of Filipino contractors or construction firms – 70%
3. Doctors, nurses, engineers, teachers, other professionals whose contract gives free board and lodging – 70%
4. Professionals without free board and lodging – 50% 5. Domestic and service workers – 50%
6. All others – 50%
What are regulations?
o 1. Travel agents and sales agencies of airline companies cannot engage in R&P for overseas employment, w/n for profit o 2. Citizenship requirement for recruitment entities:
OR 75% Filipino ownership (authorized and voting stock)
o 3. Minimum capitalization as required by Sec. of Labor o 4. Non-transferability of authority or license
Cannot transfer to another person or use in another place
What if you want to transfer offices?
Get prior approval of Sec. of Labor, as with appointing an agent or getting additional offices
What are the prohibited activities? o See above enumeration (Art. 34)
What is the nature of the regulatory and visitorial powers of the Labor Secretary?
o The Secretary can restrict and regulate R&P activities of all agencies covered
o Can issue orders and R&Rs
o Visitorial Powers – Sec of Labor or representatives may inspect premises, inspect books/records of entities, require submission of reports, etc.
What must be given by those applying for license or authority? o 1. Prescribed registration fees
o 2. Cash/surety bonds to guarantee compliance with provisions
What is the nature of the license?
o It is beyond the commerce of man, and subject to prior approval
What are the penalties for illegal recruitment?
o 1. Simple illegal recruitment – 12 y 1 d to 20 y imprisonment And fine of P1M to 2M
o 2. Economic sabotage – life imprisonment And fine of P2M to 5M
Maximum if the one recruited is less than 18 years, or committed by a non-licensee or holder of authorization
o 3. Prohibited acts – 6 y 1 d to 12 y And fine of P500K to P1M
If alien, deported without further proceedings o 4. In all cases:
Revoke license or authorization
LABOR STANDARDS
Where do benefits come from? o 1. Law (Labor standards law) o 2. Contact (ex. CBA) o 3. Vested benefits HOURS OF WORK
What is the rationale for the hours of work provisions? o 1. To safeguard health and welfare of the laborer
o 2. Prevent unemployment (companies that operate more than 8 hours have to hire more workers or pay more)
o 3. The employee usually just accepts what the employer says, so this will prevent begrudging acceptance of long work days
Who are covered by the provisions on hours of work?
o By default, employees in all establishments and undertakings, whether for profit or not
Who are excluded by the provisions? o 1. Government employees
Covered by Civil Service Law Exception?
Employees of GOCCs incorporated under the Corporation Code
N.B. even GSIS-covered employees are not excluded from the employee’s compensation program under the Labor Code
o 2. Managerial employees
What are managerial employees?
1. Primary duty is management of the establishment, department, or subdivision
2. Customarily or regularly directs work of two or more employees
3. Has authority to hire/fire employees of lower rank, or at least their suggestions are given particular weight
N.B. this is not the same definition for manager in labor relations. This is broader in scope and covers even supervisory employees, while the labor relations definition does not.
Ratio: they are not hired for quantity of hours of work put in but the special training, knowledge, or experience that requires discretion and independent judgment
o 3. Field personnel Who are these?
Non-agricultural employees regularly performing their duties away from the principal place of business
What is essential?
Actual hours of work cannot be determined with reasonable certainty
Test: whether the employee is supervised on the field
What about bus conductors and drivers?
NOT field personnel because inspectors check their hours of work.
o 4. Members of the family of the employer who are dependent on him for support
o 5. Domestic helpers
o 6. Persons in the personal service of another o 7. Workers paid by results
Is this determinative of employer-employee relationship?
No. Always follow the four-fold test. This is just a method to compute compensation. Ratio: they are paid based on work output, regardless
of time employed
What are the normal hours of work? o Not exceeding 8 hours a day
Can normal hours of work be less than 8?
Yes. It says “not exceeding”
Can an employer and employee contractually agree that work must be 12 hours a day, or any number above 8?
Yes, it’s a contractual commitment – but the extra 4 hours are covered by OT pay. What is the “day” here?
Work day (24 hour period starting from the time an employee regularly starts to work)
NOT calendar day o What are the exceptions?
1. Health workers –
In cities and municipalities with population at least 1 million
Or in hospitals/clinics with bed capacity at least 100
What are their hours?
o 8 hours a day, 5 days a week (N.B., it’s doesn’t say “not
exceeding” this time, so they really must work 8 hours)
Excluding meal times o Except when exigencies require
work for 6 days (48 hours)
What is the implication on their salary? o 130% of normal salary on the sixth
day 2. Compressed Work Week
What is this?
o When the employer and employee agree that the employee works one day less (ex. from 6 to 5 days) and the hours of the skipped day will be added to the other days
What is the maximum time allowed for CWW?
o 12 hours. Anything in excess will garner OT pay
Otherwise, what is the general?
o The work beyond 8 hours but under 12 is not given OT pay
What are covered by the counting on hours worked?
o 1. All time where an employee is required to be on duty or to be at a prescribed workplace
o 2. All time when the employee is suffered or permitted to work o 3. Rest periods of short duration during work hours
Does the employee actually need to leave the premises of the workplace?
No. He can stay or go. o What about waiting time?
Check the circumstances of the job, if waiting is an integral part of his work
o X has to drive to a place outside Metro Manila to do an installation job. Is this part of hours of work?
Yes, it is when the travel time cuts across or coincides with regular work hours.
o X is a delivery truck driver. Is time spent driving the vehicle to and fro the bodega time worked?
Yes.
How does the law treat work interruption due to brownouts? o It is considered working time, because the time during which
an employee is inactive by reasons beyond his control is considered working time if –
Resumption of work is imminent and it requires his presence at the place of work
Or the interval is too brief to be utilized effectively and gainfully in the employee’s interest
Meal period:
At least 60 minutes Default meal period Less than 60 minutes but at least
20 minutes
Valid shortened meal time; becomes compensable
Less than 20 minutes Compensable rest period. NOT a valid meal period.
Less than 20 minutes, but valid compensable meal period:
1. Non-manual work; does not involve strenuous physical exertion
2. Establishment regularly operates at least 16 hours a day 3. Actual or impending emergencies or urgent work on machineries to avoid serious loss
4. Necessary to avoid serious loss of perishable goods
Other types of time spent at work:
Type of work Counted as working time?
Idle time Yes, if the employee was engaged to
wait or he waited to be engaged. The controlling factor: whether the waiting time was for the employer’s benefit or the employee’s benefit Waiting time Yes, if waiting is integral part of the
work, or if the ER engaged him to wait.
“On call” working Yes. It is when an EE is required to remain on call that he cannot gainfully and effectively use his time for his own purposes.
Travel from home to work No.
Except, when:
1. EE made to work on emergency call and travel is necessary to get to work 2. Travel through conveyance
provided by ER
3. Travel under supervision and control of ER
4. Travel under vexing and dangerous circumstances X was a company driver and was engaged to pick up and drop off other employees to and fro work.
Is this working time?
Yes, because it is done for the employer’s benefit
Travel incidental in day’s work Yes, if part of EE’s regular activity Travel away from home Yes, if it keeps an EE away from
home overnight and it cuts across an EE’s workday. It substitutes for normal working time.
Semestral break, for teachers Yes. It is an interruption beyond their control. N.B. this only applies to regular full-time teachers
Attendance in lectures, meetings, trainings, or programs
Yes.
Except if the ff requisites concur: 1. Attendance is outside
regular working hours 2. Attendance is voluntary 3. There is no productive work
done during attendance Nightshift differential
What is the nightshift differential?
o 10% of regular wage, for each hour of work between 10 pm and 6 am
Who are not covered by nightshift differential? o 1. In government or GOCCs
o 2. Managerial employees
o 3. Field personnel or other employees whose time/performance is unsupervised
o 4. Domestic helpers o 5. Those in personal service
o 6. Working on contract basis, purely commission basis, or paid fixed amount irrespective of time worked
o 7. In retail or service establishments regularly hiring only up to five workers
o N.B. So this is just like the hours of work enumeration, but including retail and service establishments hiring only up to 5 workers.
o Reason?
It’s onerous for the small business to pay NSD, but in also, it will be harsh if they don’t have to comply with hours of work just because they have few employees.
What is the rationale for the NSD? o 1. Social disarrangement o 2. Lower efficiency and output
o 3. Higher risk going to and fro work in darknesss
What if it is also overtime work?
o The 10% is calculated against OT pay as base Overtime Work
What is OT work?
o Work performed beyond 8 hours a day
What is the rate for each hour of work done beyond 8 hours? o Regular wage + 25%
N.B. Base excludes fringe benefits/bonuses – just regular pay
o What if the OT work was done during a holiday? The +25% becomes +30%
o What if the OT work was done during a rest day? The +25% becomes +30%
What are conditions to be entitled to OT pay? o 1. Actual rendition of OT work
o 2. Submission of sufficient proof that work was actually performed
o 3. With knowledge and consent of employer
Is it legal for the employment contract that the monthly salary would be treated as covering even pay for rest days and holidays?
o Yes, as long as the wage is still equal to or above the minimum wage
What is the anti-offset rule?
o Under-time work on one day cannot be offset by overtime work on another day
o Neither does permission given to the employee to go on leave some other day of the week exempt the employer from paying additional compensation
Can OT pay be waived?
o No.
o Unless the waiver was in consideration of other benefits or salary that equals or exceeds the OT pay.
What are the emergency situations when OT work can be made mandatory by the ER?
o 1. RP is at war, or national/local emergency declared by Congress or President
o 2. Necessary to prevent loss of life/property or imminent danger due to disaster or calamity
o 3. Urgent work on machines, installations, equipment to avoid serious loss or damage to the employer
o 4. Necessary to prevent loss or damage to perishable goods o 5. Completion or continuation of work started before the 8th
hour must be completed to avoid serious obstruction or prejudice to the business
o 6. Necessary to avail of favorable weather or environmental conditions
o When OT is required under these 6 circumstances, must there be extra compensation nonetheless?
Yes. It just becomes mandatory, rather than optional.
o CBA may stipulate higher OT pay rate. The court cannot impose upon the parties anything beyond what they agreed upon. If there is none, impose regular OT rate.
WAGES
What is the “no work no pay” principle?
o If there is no work performed by the employee, there can be no wage or pay.
o Exceptions to “no work no pay”:
1. The laborer was willing, able, and ready to work but was prevented by management
2. Illegally locked out, suspended, or dismissed. o What if the failure to work was the employee’s fault?
He doesn’t get paid
o What is the principle established under ISA v. Quisumbing?
Equal work for equal pay; no distinction can be made based on nationality
Facilities and supplements:
Facilities Supplements
Included in “wages” Not included in “wages” Can be credited as wages or
deducted from wages
Over and above wages Articles or services like
board/lodging which benefit the EE and his family
Requisites:
1. Customarily furnished in trade
2. EE voluntarily accepted it in
Extra remuneration or special privileges received over and above the EE’s ordinary wages
N.B. For facilities and supplements, the nature of the benefit or item is not a controlling criterion. It is the purpose that controls. Check if it’s
writing
3. Charged at reasonable value
meant to be part of his wages or over and above them.
Generally for the benefit of the employee. So it’s usually at the initiative of the EE.
Usually on the initiative of the ER. Tools of trade or other articles for the benefit of the ER or the business
Who are excluded from the rules on wages? o 1. Farm tenancy/leasehold
o 2. Cottage industries and other small businesses that probably cannot afford to pay the wage rates set by law.
N.B. Consult wage orders established by regional wage boards
o 3. Domestic service
o 4. Barangay Micro Business Enterprises (BMBE) under R.A. 9178
Business entities engaged in producing or processing of products (including agro-processing), whose total assets do not exceed 3M pesos
What does the term “assets” cover?
Includes loans
Excludes land where the office, plant, or equipment are situated
Differentiate wages and salaries: o Wages –
Manual labor, skilled or unskilled Paid at stated times
Measured by day, week, month, or season
Usually for lower and less responsible character of employment
o Salaries –
Higher degree of employment, superior grade of services, and implies position/office
What is the non-diminution rule?
o The benefits being given to employees cannot be taken back or reduced unilaterally by the employer, because the benefit has become part of the employment contract (whether written or unwritten)
o When does a benefit set-in and cannot be diminished? 1. When the benefit is based on express policy or has
ripened into practice for a long period of time 2. AND that it is consistent and deliberate o What can be diminished?
1. Conditional or contingent benefits (ex. bonuses) 2. Those granted due to error or doubtful application
or law
What is the exception to this?
o When the error has stood so long and has been left uncorrected that it has ripened into company policy
What is the rule on those paid by results? o
If paid according to piece rates in DOLE Pierce Rate Orders: Wages = number of pieces * Piece Rate
No overtime pay o
If paid according to output rates prescribed by the employer and not yet approved by DOLE:
If number of pieces * Rate is >= to legal daily wage, they receive the former
If formula is < than the legal daily wage, they receive the latter
What are piece-rate employees entitled to? o 1. Applicable minimum daily rate o 2. SIL
o 3. Night shift differential
Huh? I thought those paid by results are excluded by NSD?
Yes – but that covers those paid by commission, contract basis, or by end-result.
That doesn’t include piece-rate workers who are just like normal workers in every respect except they are paid by pieces made. o 4. Holiday pay
How calculated?
Not less than his average daily earnings for the last seven actual working days
It must not be less than the minimum wage o 5. Meal and rest periods
o 6. OT pay
Conditional o 7. Premium pay
Conditional o 8. 13th month pay
o 9. Other benefits granted by law or by agreement
o N.B. So the rule is that piece-work EEs are entitled to the normal benefits because the difference between them and the usual employees is just manner of payment and nothing else
What are the legal forms of payment? o Must be legal tender
o Cannot be in PNs, vouchers, coupons, tokens, tickets, etc. o What if the employee requested for PNs, vouchers, etc?
Even so. It’s not allowed. o When is payment by check allowed?
1. Customary manner of wage payment in that place 2. Stipulated in CBA
3. Or where all of the following requisites are met:
A. Bank or encashment facility within 1 km radius from workplace
B. the ER or his agents do not receive pecuniary benefit from the arrangement
C. EEs given reasonable time during banking hours to withdraw wages from bank
o This is compensable working time
D. Written consent of employee if there is no CBA provision
4. Special circumstances provided in labor regulations o Is payment by ATM allowed?
Yes, under 25 Nov 1996 labor advisory Requisites for payment through ATM:
1. Written permission of majority of EEs
2. 25 or more EEs in the establishment
3. Establishment is within 1 km from bank
What is the time of payment?
o At least once every 2 weeks or twice a month at intervals not exceeding 16 days
o What if there is force majeure preventing payment? Payment made as soon as force majeure disappears o In all cases, what is prohibited?
Payment with less frequency than once a month o What is the rule for employees made to perform tasks
which cannot be completed in 2 weeks?
1. Payments at intervals not exceeding 16 days, in proportion to amount of work completed
2. Pay balance upon completion of work o What is required by the IRRs?
1. Individual time record of employees 2. Payroll
Where and how must wages be paid? o At or near the place of undertaking
N.B. Remember the ATM exception o When can there be payment in any other place?
1. Impossible to pay in place of work due to emergency or calamity
2. ER provides free transportation back and forth 3. Analogous circumstances
N.B. For all: time spent is compensable work time o What are prohibited places of payment?
Bar, night/day club, drinking place, massage clinic, similar places
Except if the people are employed there o Who must receive the payment?
The worker himself o Exceptions to this rule?
1. Force majeure – can be paid to another person with written authority given by EE
2. Decease of EE –
Can pay wages to heirs directly without need of intestate proceedings
What is the procedure?
o The heirs submit an affidavit stating relationship to deceased
o ER pays through Sec. of Labor or his representatives
o Sec. of Labor acts as referee to divide the amount
3. Worker’s family member authorized in writing
What is the rule on workers’ preference under Art. 110?
o In case of bankruptcy or judicial liquidation, the worker’s unpaid wages are preferred.
o It is not a lien, but a reordering of credits (see Concurrence and Preference of Credits in Civil Law)
What is the rule on attorney’s fees?
o In case of unlawful withholding of wages –culpable party may be assessed attorney’s fees equal to 10% of wages recovered o In any proceeding, cannot recover attorney’s fees exceeding
10% of the wages recovered
What is non-interference in disposal of wages?
o No employer can limit or interfere with the employee’s disposal of his wages.
o Can an employer compel his employees to purchase any merchandise or commodity?
No, whether it be from himself or another person
Can an employer deduct his employees’ wages? o In general, no.
o What are the exceptions under the Labor Code?
1. To pay for insurance premiums that employee consented to
2. Union dues, where right to check-off is authorized in writing by the employee or recognized by the employer
3. Authorization by the Sec. of Labor o What are the exceptions under other laws?
1. Employee is indebted to the employer, and it is due and demandable
2. Court ordered attachment of wages for debts incurred for food, shelter, clothing, or medical attendance only
3. Withholding tax
4. Salary deductions for coop members
5. Payment to third persons, upon written authorization by employee
And agreement by the employer, who is not obliged to do so
6. Agency fee 7. Facilities
8. Loss or damage under Art. 114 (see below) 9. SSS, Medicare, Pag-ibig premiums
Can the employer require the employees to make deposits to cover for deductions for loss/damage to tools or equipment?
o In general, no.
o What is the exception?
When it is shown that such practice is long-established and recognized in the trade
o If allowed, when can deductions be made (requisites)? 1. Employee is responsible for the loss/damage 2. Employee given chance to show cause against
deduction
3. Amount is fair and reasonable, and not exceeding the loss/damage
4. Deduction does not exceed 20% of employee’s wages in a week
Can wages be withheld by the employer, if the employee violated company rules, failed to perform tasks, or for any other reason?
o No. It can be dealt with in some way but not by withholding wages.
o Other express prohibitions?
Deduction to ensure employment Retaliatory deductions
False reporting
Which body has the power to prescribe rules and guidelines for determination of wages in the country?
o National Wages and Productivity Commission (NWPC)
o What is the status of guidelines issued by Regional Tripartite Wages and Productivity Boards?
These are void, if without the approval of or contrary to NWPC guidelines
o What is the status of a wage order without required public consultation and publication in newspapers?
Void as well
Who sets the minimum wage?
o Regional Tripartite Wages and Productivity Boards
o Is poor financial condition of the company an exemption to payment of minimum wage?
No.
o What does “minimum wage” relate to?
A day’s work which comprises 8 hours at most o When is a worker “daily paid”?
Paid only for days he actually worked o When is a worker “monthly paid”?
When the monthly rate covers all the days of the month.
Calculated through the following formula:
Monthly wage x 12 / 365 = daily rate Must exceed the following formula:
Minimum wage x 365 / 12
Distinguish agricultural from industrial rates: o Agricultural rates – farming in all its branches o Industrial – manufacturing and processing o What determines which rate applies?
Nature of the work. It is permissible for one company to pay agricultural rate to some, and industrial rate to others.
What is wage distortion?
o When the pay advantage of a position over another is removed or significantly reduced due adjustment required by a wage order
o The advantage must thereafter be restored
o Must there be full elimination of salary differences? No. A “severe contraction” is enough. o Are efforts to rectify mandatory?
Yes, whether the establishment is organized or unorganized
What if it’s an organized establishment? (Neg-GM-VA)
1. Employer and union must negotiate
2. Any dispute must be resolved through grievance machinery in CBA
3. If unsolved, through voluntary arbitration What if it’s an unorganized establishment?
(Neg-Labor-NLRC)
1. Employer and union must endeavor to correct it
2. Any dispute must be resolved through Labor Arbiter (R.A. 6727 says NCMB)
3. In unsolved after 10 days of conciliation, refer to NLRC
o Must the new difference be the same as before?
No, not to the last peso. Restoration of appreciable differential is sufficient.
o Is any issue involving wage distortion a valid ground for strike or lockout?
No. Check the enumeration – it’s not there.
o What is the “just and equitable” formula forwarded by the SC in Metrobank?
(minimum wage / actual salary) * (prescribed increase) = distortion adjustment
o Is there inter-region wage distortion?
No. Just intra-region. The wage-fixing rates are fixed per region, and comparison must be within these regions and not across regions.
o What if the salary distortion was created due to employer-initiated salary restructuring?
There is no legal duty to rectify the distortion because the legal duty only arises from distortions brought about government wage orders.
o What are the prohibitions pertinent to wage orders? 1. No TROs or injunctions are allowed for proceedings
before the NWPC or RTWPBs.
2. Wage orders must respect the statutory minimum wage set by Congress.
o Who are not covered by wage orders?
1. Household/domestic workers, and those in personal service
2. Workers in retail/service establishments employing not more than 10 workers, when exempted from compliance for a certain period fixed by commission/boards
3. Workers in new business enterprises, within 2-3 years from start of operations, when exempted and:
Outside NCR
Or in EPZs
o How often can there be a wage order? Once every 12 months
Except when there is a Congressional law
o What are factors considered in wage orders? (don’t memorize but understand and familiarize)
1. Standards of living 2. Needs of workers/families
3. Wage adjustment vis-à-vis consumer price index 4. Prevailing wage levels
5. Effects on employment family income 6. Cost of living and changes
7. Fair return of capital investment and employers’ capacity
8. Need to induce investment in rural areas 9. Equitable distribution of income
10. Demand for living wages REST DAY
When does the right to rest day accrue?
o For every six consecutive normal work days
When is the rest day set?
o Depending on the CBA or subject to RRs
o What if the employee has preference based on religion? It is respected, but he must inform the employer at
least 1 week before the day preferred
What if it might cause prejudice to business?
Resort to other remedial measures. If there are none, must schedule the preferred rest day on that chosen day at least twice a month.
When may an employee be required to work on a rest day?
o 1. Actual or impending emergencies caused by disaster or calamity, to prevent loss of life/property
o 2. Urgent work on machinery, equipment, or installation to avoid serious loss
o 3. Abnormal pressure of work due to special circumstances And there are no other measures
o 4. Prevent loss or damage to perishables
o 5. Nature of work requires continuous operations and stoppage of work may result in irreparable injury or loess to employer o 6. Analogous circumstances
o 7. Favorable weather or environmental conditions, when performance is dependent on such
o
( N.B. If you notice, this is the same as the Mandatory OT enumeration, except for “abnormal pressure of work due to special circumstances”)
What is the rate of rest-day compensation? o Regular wage plus 30% (“premium pay”)
o What if because of the nature of the employee’s job, there are no regular workdays and no regular rest days can be scheduled?
The extra 30% applies to Sunday work
What is the rate for work on a special holiday? o Regular wage plus 30%
o What if it is also his scheduled rest day? Regular wage plus 50%
N.B. if he works OT, then it’s plus 30% of 150%
What are the special holidays? o 1. All Saints’ Day (Nov 1) o 2. Last day of the year (Dec 31)
o 3. Ninoy Aquino day (Aug 21)
What if the employee does not work on a special holiday? o No pay
What is the implication when a day is declared as a special
working holiday?
o Then no premium pay is given. An employee just earns 100% if he works.
HOLIDAYS
Which employers are not required to pay this holiday pay? o 1. Government and GOCC employees
o 2. Domestic helpers
o 3. Those in personal service of another o 4. Managerial employees
o 5. Field personnel
o 6. Those paid based on contract, commission, or for end-result regardless of time spent working
o
7. Those in retail and service establishments employing less than 10 workers
o (N.B. This is the same as NSD enumeration, and the same as hours of work exemption + 10 workers-rule)
Are monthly-paid employees excluded from holiday pay?
o No. They are included. The IRR provision establishing this is void.
For hourly-paid teachers, will the calling off of class or declaration of special public holiday deprive them of income?
o No. They should receive what they would have been paid. o What about when extensions are given?
Then they are paid their hourly rates.
Are private school teachers entitled to holiday pay? o Yes if the holiday falls during Christmas vacation o No if the holiday falls during semestral breaks
What about employees paid by results?
o Paid average daily earnings for 7 days preceding holiday
o But must not be less than minimum wage
What about seasonal workers?
o Not paid holiday pay during off-season Compensation:
Holiday and EE does not work 100% pay
Holiday and EE works 200% pay
Double-holiday (ex. Maundy Thursday and Araw ng Kagitingan)
200% if EE rests; 300% if EE works Holiday falls on Sunday 100% if EE rests; 200% if EE works
(no special rule)
Holiday falls on rest day 100% if EE rests; 230% if EE works; N.B. +30% of 230% if EE works OT
What is the rule in case of absences? o Employee on LOA with pay –
entitled to benefit
o Employee on LOA without pay on the day immediately preceding a regular holiday –
not entitled to holiday pay unless he works on such regular holiday
o If immediately preceding day to a holiday is a non-working day or is the scheduled rest day –
entitled to benefit only if he worked on the day immediately preceding the rest day or non-working day
What if there are successive regular holidays, like Maundy Thursday and Good Friday?
o To be entitled to two successive holidays, employee must: 1. Be present on the day immediately preceding the
first holiday
o If he absents himself on the day immediately preceding the first holiday, what is the consequence?
He may not be paid for the two holidays What is the remedy?
He can go to work on the first holiday.
What is the rule if there is temporary shutdown or cessation of work?
o If regular holiday falls in period of temporary shutdown (ex. inventory, repair, etc.) –
Entitled to benefit
o If it falls in period where operations cease due to business reverses, as authorize by Sec. of Labor –
No holiday pay
What is an ECOLA? Is the employee entitled to it during a legal holiday?
o Emergency Cost of Living Allowance, which is not part of the regular wage
o Yes, whether or not the employee works on a legal holiday, he is entitled to ECOLA
What are the legal holidays? o New Year
o Maundy Thursday o Good Friday
o Araw ng Kagitingan (April 9) o Labor Day (May 1)
o Independence Day (June 12)
o National Heroes Day (Last Sunday of August) o Bonifacio day (November 30)
o Eidul Fitr o Eidul Adha o Christmas Day
o Rizal Day (December 30)
What is the “holiday economics” rule?
o For the following seven holidays, the holiday is moved to the nearest Monday –
Araw ng Kagitingan Labor Day
Independence Day
National Heroes Day (becomes Last Monday of August)
Bonifacio Day Rizal Day
Ninoy Aquino Day Special holiday LEAVES
What is the right of Service Incentive Leave?
o Every employee who has rendered 1 year of service is entitled to SIL of 5 days
o To whom will SIL not apply?
0. USUAL (Government/GOCCs, domestic workers, those in personal service of another, managerial, field, contractual/commission/end-result)
1. Those already enjoying this benefit
2. Those with Vacation Leave (VL) with pay of at least 5 days
3. Those in establishments with less than 10 employees
4. Establishments exempt by the Sec. of Labor, after considering viability or financial condition of the establishment
o (N.B. There are actually just three categories: a) those who already grant it, and b) those who can’t grant it, c) usual)
What is the prohibition as to benefits granted in excess of what is provided herein?
o It cannot be the subject of arbitration or any court/admin action
o No, it is not required by law. It is dependent on employer policy and CBAs.
o These are voluntary benefits.
What are required by law (mandatory benefits)? o 1. SIL
o 2. Paternity Leave (RA 8187) o 3. Maternity Leave (SSS Law) o 4. Solo Parent Leave (RA 8972) o 5. Battered Woman Leave (RA 9262)
o Does the “less than ten employees” rule apply to Paternity or Maternity Leave?
No. It only applies to SIL. Why?
Kawawa naman sila, nanganak na nga, papapasukin mo pa. It doesn’t matter how many employees are there.
What happens to unused SIL? o Converted to cash.
Maternity Leave:
o Who is covered?
Female who has paid at least 3 monthly contributions in the 12-month period immediately preceding the semester of her childbirth or miscarriage
o What does she receive?
100% of average daily salary for 60 days
100% of average daily salary for 78 days, if caesarian o What are the conditions?
The employee must notify the employer of her pregnancy – and this information is transmitted to the SSS
Full payment is advanced by the employer within 30 days from filing the maternity leave application o Can the woman recover sickness benefits concurrent with
maternity leave?
No.
o When does the SSS reimburse the employer?
Upon satisfactory proof that the employer has advanced to the employee the benefits required o How many times can maternity leave benefits be availed
of?
First four deliveries or miscarriages
o What is the consequence if the employer fails to turnover to the SSS the employee’s contributions, or fails to inform the SSS of her pregnancy?
Employer pays damages to the SSS equal to what the employee would have been entitled to
o Is the identity of the father material? No, it doesn’t matter who the father is
Paternity Leave: o What is given?
Seven days of paternity leave with full pay to married male employees in the private/public sectors
Are these 7 working days or 7 calendar days?
No. 7 calendar days. o What are the conditions to entitlement?
1. Married male employee and is employed when the child is born
2. Cohabiting with his legitimate spouse when she gives birth or suffers miscarriage
3. Applied for paternity leave according to rules 4. Wife gave birth or suffered miscarriage
Is abortion included? o No, not anymore. o For how many deliveries is paternity leave valid?
First 4 deliveries
o A solo parent employee who has rendered service for at least one year shall be given parental leave of not more than 7 working days
o What does a “solo parent” cover?
Women who gave birth as a result of rape Widow or widower
Spouse separated legally or de facto for at least one year
o What must the solo parent prove?
He or she is left alone with responsibility of parenthood
o What must he or she show?
Solo parent identification card issued by a representative of the DSWD
What is the Battered Woman Leave (BWL) under RA 9262?
o A victim of physical, sexual, or psychological violence can apply for the issuance of a “protection order.” In addition to other reliefs, if she is an employee, she is entitled to a paid leave of up to 10 days in addition to other leaves.
o Is it extendible?
Yes, when necessity arises as specified in the protection order.
o What is a pre-requisite?
Must submit certification from punong brgy, kagawad, prosecutor, or clerk of court that an action under RA 9262 has been filed and is pending
o Is use of the 10 day leave mandatory? No. It’s up to the woman employee.
It can be used for days where she attends to medical and legal concerns.
Are unused leave days convertible to cash or cumulative?
No.
o What if the employer refuses to implement BWL?
Liable under RA 9262.
o How is recovery of BWL benefits enforceable?
Under Art. 129, with the Regional Director (same provision as simple money claims)
SERVICE CHARGES
What is the rate of distribution for service charges collected by establishments?
o 85% to all covered employees – distributed equally among employees, regardless of position or rank
How often is distribution?
Once or twice a month o 15% to management
What is the integration rule?
o If service charge is abolished, the share of covered employees is considered integrated in their wages
What is covered by the 15% management share?
o To answer for losses and breakages, or it can be distribution to managers at management’s prerogative
13
TH MONTH PAY
What is the rule on 13th month pay?
o It is required by law. It is not part of the basic wage, but it is based on that wage.
What is the value of the 13th month pay?
o It is 1/12 of total salary earned within a calendar year. Are other bonuses included in the base rate?
No. Just the regular wage. When is it paid?
Not later than December 24
What is not part of the “basic salary” base?
1. Cost of living allowances
3. All allowances and monetary benefits not integrated in the basic salary
Who is entitled to 13th month pay?
o All rank and file employees regardless of designation and status – as long as they worked at least one month in that year o And irrespective of method of payment (even piece-rate
employees)
o What about managerial employees?
Excluded by law, but can be included by stipulation
What if an employee is terminated or has resigned before payment of 13th month pay?
o Entitled to 1/12 of what he has earned anyway
Which employers are exempted? o 1. Government/GOCCs (usual) o 2. Employers of household helpers
o 3. Employers of those under the personal service of another o 4. Employers of those paid on commission, boundary, or
end-result basis
Except: piece-rate workers, who are covered What is the rule on commissions?
If the commissions may properly be considered as part of the basic salary, then it’s covered by 13th month pay
If it’s not part of the basic salary, it’s excluded o 5. Those already paying 13th month pay or its equivalent
Check intent of the bonus to see if it is credited as in lieu of the 13th month pay or if it’s additional
o N.B. This is almost the usual enumeration + those who already get an equivalent. Managers may or may not be given (see above).
o EXCEPT field workers are supposed to be given 13th month pay, because this provision is not re: hours of work.
What if someone has multiple employers?
o Can get 13th month pay from all private employers, regardless of total earnings Summary of exemptions: Hours of work NSD Wages Holiday pay SIL 13th MP Govt, GOCCs Govt, GOCCs Farm tenancy/ leasehold Govt, GOCCs Govt, GOCCs Govt, GOCCs Managers Managers Cottage
industries
Managers Managers Managers (may still be given) Field personnel Field personnel BMBE Field personnel Field personnel DH DH DH DH DH DH Supported family members Supported family members Supported family members Supported family members Supported family members Personal service Personal service Personal service Personal service Personal service Paid by results Paid by results Paid by results Paid by results Paid by results Only up to 5 EEs Only up to 10 EEs Only up to 10 EEs Exempted by Labor Sec Already have SIL Already have 13th MP With paid VL of at
least 5 days
Compulsory OT work Compulsory rest day work
War or emergency War or emergency
Prevent loss or imminent danger Prevent loss or imminent danger Urgent work on equipment Urgent work on equipment Prevent loss or damage to
perishables
Prevent loss or damage to perishables
Completion of work to avoid prejudice
Completion of work to avoid prejudice
Favorable weather conditions Favorable weather conditions Abnormal pressure to work due to special circumstances
WOMEN WORKERS
What is the non-discrimination rule?
o Cannot discriminate against a woman as to terms and conditions of employment solely due to her sex o What are the reliefs available?
Criminal action
Civil action for money claims, with damages, and other affirmative reliefs
Are these mutually exclusive?
No. They proceed independently of each other.
Are stipulations against marriage allowed?
o No. An employee cannot be hired with the condition that she does not get married, or be terminated due to marriage
What are the prohibited acts?
o 1. Deny a woman employee benefits here or discharge her to prevent her from enjoying the benefits
o 2. Discharge a woman due to pregnancy, or while on maternity leave
o 3. Discharge or refuse to re-admit a woman after leave
What is the special rule on classification?
o Woman who is permitted or suffered to work, with or without compensation in night clubs, massage clinics, bars (and similar establishments), if under effective control/supervision of the employer considered an employee of such establishment o For what purposes?
Labor and social legislation
Who may be a victim of sexual harassment? o Either a male or female
When is sexual harassment committed?
o When a person demands, requests, or requires sexual favor from another
Must it be put in an oral or written statement?
No, it can be by inference o Who may commit sexual harassment?
Anyone with authority, influence, or moral ascendancy over the person harassed
o Where may it happen? In work, training,
or education environment
o What if the person harassed refused the demand, request, or requirement?
It does not matter. It’s still sexual harassment. MINOR WORKERS
o For any employment, as long as it is non hazardous. A person has to be at least 18 years old to perform hazardous work o Give examples of hazardous workplaces:
Exposed to contaminants
Construction, logging, fire-fighting, mining, mechanized farming, deep sea fishing, etc. Handling explosives or pyrotechnics Using heavy equipment or machinery Using power tools
o What are the allowed working hours?
Not more than 40 hours a week, no more than 8 hours a day
No work from 10 pm – 6 am
N.B. in other words, no OT, no night shift
Can children below 15 be employed? o No, except under very strict conditions o What are these exceptions?
1. The child works directly under the sole
responsibility of his/her parents/guardian and where only members of the family are employed, and as long as:
The child’s safety, life, health, or morals are not endangered
Does not impair child’s normal development
Parent or guardian gives primary/secondary education to the child
2. Child actors or talents, as long as:
Employment contract is concluded by parents or guardian with express agreement of child, and if possible, DOLE approval
The child’s safety, morals, health are not endangered
Employer takes measures to prevent child exploitation or discrimination – taking into
account remuneration, duration, and working time
Implement continuing skills and training acquisition program for the child o What is required for these two situations?
The employer must secure a work permit from DOLE o What are the allowed working hours?
No more than 20 hours a week, no more than 4 hours a day
No work from 8 pm – 6 am
What does RA 7323 provide?
o Employers can hire at least 50 students during vacation period and pay those students only 60% of their wages, and 40% through education vouchers to be paid by government o But the wages must meet the legal minimum
What are the prohibitions on employment of children in certain advertisements?
o Cannot be employed as model in advertisements for alcoholic beverages, tobacco, gambling, violence, or pornography
What are the worst forms of child labor? o 1. Slavery
o 2. Prostitution
o 3. Production and trafficking of dangerous drugs and prohibited substances
o 4. Work which by its nature or circumstances in which it is carried is hazardous or harmful to health, safety, morals of children
EMPLOYMENT OF HOUSE HELPERS
What are house helpers?
o Those providing services in the employer’s home which is usually necessary and desirable for the maintenance and enjoyment thereof
Includes ministering personal comfort and convenience of the members of the household Including family drivers
o Is a driver, laundrywoman, houseboy, etc. who works in company staff-houses a house helper?
No. He or she is an industrial worker and must be paid the industrial rate
o What is the criterion?
Personal comfort and enjoyment of the family of the employer in the home of said employer
What benefits are accorded house helpers? o 1. Minimum wage
o 2. Cannot be assigned to work in commercial, industrial, or agricultural enterprise at a wage lower than what is prescribed o 3. What if the house helper is less than 18 years old?
If the house helper is less than 18 years old, the employer must afford opportunity for at least elementary education
Cost of education is part of the helper’s compensation o 4. Must be treated in just and humane manner. No physical
violence must be used.
o 5. Free lodging, board, and medical attendance
o 6. Upon termination, given a written statement of the nature and duration of the service and his/her efficiency as house helper (employment certification)
o 7. Contract does not exceed 2 years (renewable)
o 8. Funeral expenses paid by employer if house helper has no relatives with sufficient means in the place
What are the hours of work allowed?
o Not to work for more than 10 hours a day
If the house helper agrees to work OT and there is additional compensation, it is permissible
What is the vacation privilege?
o Right to 4 days vacation each month with pay. Failure to use this does not allow accumulation – the helper can just get monetary value.
What if the period of household service is fixed?
o Cannot be terminated before end of the period without just cause
o What if a house helper is unjustly dismissed?
Paid compensation already earned plus that of 15 days indemnity
o What if a house helper leaves without justifiable reason? Forfeits unpaid salary not exceeding 15 days
What if the period of household service is not fixed?
o He must give 5 days notice before intended date of termination EMPLOYMENT OF HOME WORKERS
What is a homeworker?
o Any person who performs industrial homework for an employer, contractor, or sub-contractor
Under what circumstances are persons considered employers of homeworkers?
o 1. Delivers or causes to be delivered any goods to be processed or fabricated in or about a home and then returned or disposed of or distributed according to his directions o 2. Sells goods to be processed or fabricated in or about a
home and then re-buys them after such processing
Who can be deemed an employer of homeworkers? o Any person, natural or artificial
o For his account or benefit, or on behalf of a non-resident o Directly or indirectly
Can industrial home workers form a labor organization? o Yes.
What are the conditions before there can be deductions from a homeworker’s income, due to loss, damage, or destruction to materials?
o 1. Homeworker is clearly shown to be responsible for the loss o 2. Employee is given reasonable opportunity to explain o 3. Amount of deduction is fair and reasonable and not exceed
loss/damage
o 4. Deduction is made such that it does not exceed 20% of the earnings in a week
o N.B. this is the same rule for breakages for regular employees
What is the nature of the liability of the employer vis-à-vis the contractor and the latter’s homeworkers?
o Same as in an independent contracting arrangement. The provisions for homeworkers must be inserted in the contract. o The employer is held liable when there is failure to pay wages
by the contractor.
Prohibitions for homework:
o 1. Explosives, fireworks, similar articles o 2. Drugs and poisons
o 3. Articles where processing involves exposure to toxic substances
APPRENTICES AND LEARNERS
What is an apprenticeable occupation?
o Any trade, form of employment, or occupation which requires more than 3 months of practical training on the job
supplemented by theoretical instruction
o Involving a contract between the apprentice and employer, on an approved apprenticeable occupation by the TESDA
Who may employ apprentices?
o Only employers in highly technical industries AND approved by the DOLE
Who can qualify as an apprentice?
o 1. At least 14 years of age
o 2. With vocational aptitude and capacity for appropriate tests o 3. And possesses the ability to comprehend and follow
written/oral instructions
What is the maximum period of apprenticeship? o 6 months
Can there be payment of less than the minimum wage?
o Yes, but not below 75% and it must be pursuant to an approved apprenticeship program approved by the DOLE
What if there is no prior approval of the DOLE? o The “apprentice” is in fact a regular employee.
What are the possible venues of the program? o 1. Entirely within the sponsoring firm o 2. In a DOLE training facility
o 3. In a training facility, and then in the sponsoring firm
What is the remedy for violation of apprenticeship agreement? o Complaint filed with DOLE
o Appeal within 5 days from receipt of decision to Sec. of Labor
What the conditions for tax deductibility of training costs? o 1. The program must be approved by the DOLE
o 2. The deduction must not exceed 10% of direct labor wage o 3. The apprentices are paid at least the minimum wage o How much can be deducted?
½ of value of labor training expenses
When can apprentices be hired without compensation? o When training on the job is required by the school or
curriculum, or as a requisite for graduation/board examination
Are students who work for the school for free education deemed employees?
o No, as long as they are given real opportunities to finish their chosen courses
o What if the student causes damage to a third person in the course of these duties?
