Labor Standards Azucena Notes

was retained! Hn line w/ its policy to attain nancial stability, te respondent bank adopted measures, one of w/c is an early retirement program! Hn april of "GG$, petitioner opted to avail imself of tis retirement package, +supposedly under protest. & received te amt of >$,9:"B as retirement pay! Hn july "GG", petitioner led a complaint against resp bank for constructive dismissal & underpayment of wages, $9 t mont pay & retirement benets before te Labor ?rbiter! Ke alleged discrimination & unfair treatment, and intense pressure on te part of te resp bank forced im to retire at te prime of  is life

Hssue $6 
foreclose any coice on is part e*cept to resign >etitioner claims e was discriminated against as new ires were given iger salaries tan e was receiving! #iscrimination – failure to treat all persons e)ually wen no reasonable distinction can be found bet tose favored & tose not favored! Ht must be clearly establised tat +$. tere is no reasonable distinction for classication tat can be obtained bet persons belonging to te same class, and +". persons belonging to te same class ave not been treated alike >etitioner failed to establised tat e possessed te same skills, competencies & e*pertise as tose newly ired to eliminate te possibility of  substantial distinction tat may warrant une)ual treatment bet tem! >etitioner contends tat in cases of constructive dismissal, te burden of proof rests on te EE' to sow tat te EE was dismissed on a valid &  just cause! 7ut tis legal principle presupposes tat tere is indeed an involuntary separation from EENT & te facts attendant to suc forced separation was clearly establised, w/c te petitioner failed to do! Ht was im wo availed of te voluntary retirement program! ?nd absent te sowing of duress, te presumption is tat it was done by im voluntarily! ile te state promotes te utmost protection of  labor against capital, it does not mean tat te working class is upeld in all labor dispute! Te law also recogni0es te rigts of management!

>'E(EB>L
4! to insure careful selection of Dilipino workers for overseas employment in order to protect te good name of te >K abroad!  Te #
by ?dministrative 5ode of $234 +E< "2". te primary policy(making, programming, coordinating and administrative entity of  te E*ecutive branc of te govt in te eld of labor and employment

Hts >rimary responsibilities6 $! Te promotion of gainful EENT opportunities and te optimi0ation of te devt & utili0ation of te country@s manpower resources8 "! Te advancement of workers@ welfare by providing for just and umane working conditions and terms of EENT8 9! Te maintenance of industrial peace by promoting armonious, e)uitable and stable EENT, relations tat assure protection for te 's of all concerned parties!

'E5'UHTBENT & >L?5EBENT rivate fee(carging EEnt ?gency – any person/ entity engaged in te recruitment & placement of workers for a fee w/c is carged directly/indirectly from te workers or employers or bot License – a document issued by te #rivate recruitment entity – any person/assoc engaged in te recruitment & placement of  workers, locally/overseas witout carging, directly/indirectly any fee from te workers or employers! ?utority – a document issued by te #
%eaman – any person employed in a vessel engaged in maritime navigation K Emigrant – any person, worker or oterwise, wo emigrates to a foreign country by virtue of an immigrant visa or resident permit to its e)uivalent in te country of destination ?rt $:! EB>L'
?rt $C! 7U'E?U L
primarily responsible for developing & monitoring a compreensive EENT program!

>owers & #uties6 $! To formulate & develop plans & programs to implement te EENT promotion objectives of tis Title8 "! To establis & maintain a registration and/or licensing system to regulate private sector participation in te recruitment & placement of workers, locally & overseas, and to secure te best possible terms & conditions of EENT for Dilipino contract workers and compliance terewit under suc rules & regulations as may be issued by te #
:! To establis & maintain a registration and/or work permit system to regulate te EENT of aliens8 C! To develop a labor market information system in aid of proper manpower and development planning8 ! To develop a responsible vocational guidance & testing system in aid of proper uman resources allocation8 and 4! To maintain a central registry of skills, e*cept seamen
of

te

over all matters/cases involving EE(EE' relations including money claims, arising out of or by virtue of any law or contracts involving Dilipino workers for overseas EENT  e*cept seamen6 Provided, tet te 7ureau of Employment %ervices +7E%. +now 7LE. may, in te case of te N5', e*ercise suc power, wenever te #
 Te decisions of te regional o=ces of te 7E% if so autori0ed by te %ec of ## $$44! •

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># 3CG – replaced 7E% w/ 7LE, and created >ublic Employment %ervice <=ce +>E%<. in capital towns, cities and oter strategic areas >E%< ( serves as EENT service & o information center ( 'egularly obtains lists of job vacancies from EE'%, publici0es tem, invites and evaluates applicants, and refers tem for probable iring ( >rovides training and educational guidance and EENT counseling services ( ?lso renders special services to te public suc

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as olding of jobfairs, liveliood and self( employment ba0aars ( %pecial credit assistance for placed overseas workers ( %pecial program for EENT of  students +%>E%. during summer or semestral breaks ( ork appreciation seminars & conferences and ( Kiring of workers in infrastructure projects +KH>. 'a 33C – created KH>, a program w/c re)uires te #>K and private contractors to ire 9GR of skilled and CGR unskilled labor re)uirements from te area were te project is being undertaken

?rt $! >'HP?TE 'E5'UHTBENT6 1'6 No person/entity oter tan te public EENT o=ces, sall engage in te recruitment & placement of workers! 6 E*ceptions

$! "! 9! :! C! ! 4! 3!

>ublic EEnt o=ces >rivate recruitment entities >rivate EENT agencies %ipping or manning agents or representatives Te >
?rt $4! Lrincipal Dunctions of te >
$! Dormulation, implementation and monitoring of overseas employment of  Dilipino workers8 "! >rotection of teir rigts to fair and e)uitable employment practices8 9! #eployment of Dilipino workers troug govt(to(govt iring 'egulatory Dunctions $! 'egulate private sector participation in te recruitment & overseas placement of  workers troug its licensing and registration system8 "! Dormulate & implement, in coordination w/ appropriate entities concerned, wen necessary, a system for promoting and monitoring te overseas EEnt of Dilipino workers taking into consideration teir welfare and te domestic manpower re)uirements8 9! Hnform migrant workers not only of teir rigts as workers but also of teir rigts as uman beings8 :! Hnstruct and guide te workers ow to assert teir rigts and provide te available mecanism to redress violation of teir rigts8 C! Hn te recruitment & placement of workers to service te re)uirements for trained and competent Dilipino workers of foreign govts and teir instrumentalities, and suc oter employers as public interest may re)uire, deploy only to countries6 a! ere te >K as concluded 7ilateral labor agreements or arrangements8 b!
9! N< jurisdiction to enforce foreign  judgment +must be brougt before te regular courts.! > laws or by te laws of te ost country8 "! #rug addiction/possession or tra=cking of  proibited drugs8 9! #esertion or abandonment8 :! #runkenness, esp were te laws of te ost country proibit into*icating drinks8 C! 1ambling, esp were te laws of te ost country proibits te same8 ! Hnitiating/joining a strike or work stoppage were telaws of te ost country proibit strikes or similar actions8 4! 5reating trouble at te worksite or in te vessel8 3! Embe00lement of company funds or of  moneys and properties of a fellow worker entrusted for delivery to kins or relatives in te >K8 2! Teft/robbery8 $G! >rostitution8 $$! Pandalism or destroying company property8 $"! 1unrunning or possession of deadly weapons8 $9! Unjust refusal to depart for te worksite after all employment and travel documents ave been duly approved by te approp govt agency/ies8 and $:! Piolation/s of te laws and sacred practices of te ost country and unjustied breac of govt(approved EENT contract by a worker 5'enalties for Non(compliance of mandatory period for resolution of cases

te

$! Te salary of suc o=cial wo fails to render is decision/resolution w/in te prescribed pd sall be, or caused to be, witeld until suc o=cial complies terewit8 "! %uspension for not more tan 2G days8 or 9! #ismissal w/ dis)ualication to old any appointive public o=ce for C yrs

$"

EE'/EE 'elations 5ases  Billares & Lagda v NL'56 %56 seafarers are

contractual EE% >remature Termination of 5ontract Hf EE is terminated before end of contract w/o just cause, EE'% will be ordered to pay teir salaries corresponding to te une*pired portion of teir EENT contract >retermination Under '? 3G:" ? worker dismissed from overseas EENT w/o just cause as dened by law/contract is entitled to full reimbursement of is placement fee w/ interest at $"R per annum, plus te salary for te une*pired portion of teir EENT contract! #ue >rocess re)uired to terminate employment E*6 in case of seamen – must be given written notice of te carges against im, and a;orded a formal investigation were e can defend imself or tru a representative before e can be dismissed & disembarked! Te EE' is re)uired to furnis im w/ " notices6 +$. written notice of carge8 and +". written notice of dismissal 5ontracted but not #eployed6 >erfected 5ontract #eat benets of %eafarers ( entitled to deat and oter benets under w/c ever is iger +foreign law or > law. ( entitled to deat benets if deat occurs during te term of is contract of  employment, even if deat is not work( related   deat is caused by teir own doing #isability – loss or impairment of a pysical or mental function resulting from injury/sickness >ermanent disability – te inability of a worker to perform is job for more tan $"G days, regardless of 
re)uires medical attendance beyond $"G days but not to e*ceed ":G days from onset of  disability in w/c case benet for temporary total disability sall be paid! Hn case of di;ering medical assessment a!. wen a seafarer sustains a work(related illness/injury wile on board, is tness/untness to work sall be determined by te company(designated pysician! b!. Hf te pysician appointed by te seafarer disagrees w/ te company(designated pysician@s assessment, te opinion of a 9rd  doctor may be agreed jointly bet te EE' and te seafarer to be te decision nal and binding on tem ?gencies 1iven te #uty to promote te welfare & rigts of migrant workers6 $! #D? "! #B ( 'e(>lacement and Bonitoring 5enter – develops liveliood programs for te returning workers to reintegrate te returning migrant workers to te > society8 ! NL'5 – tasked w/ te settlement/adjudication of labor disputes

?rt $36 7?N roibition $! To assure te best possible terms & conditions of work to te EE8 and "! To assure te foreign EE' tat e ires only )ualied Dilipino workers ?rt $26 5HN<
5D< – attaced to te #D?8 replaced te <=ce of  Emigrant ?;airs! ( assists in te formulation of policies a;ecting Dilipinos overseas and formulates an integrated program tat promotes te welfare of Dilipinos overseas ?rt "$! D<'EH1N %E'PH5E '?'TH5H>?THrofessionals wose EENT contract provide for lodging facilities – 4GR >rofessionals w/o 7oard & Lodging – CGR #omestic and oter service workers – CGR  E*ceptions to Bandatory 'emittance

$! Dil servicemen working in U% military installations8 "! ere te worker@s immediate family members, dependents, or beneciaries are residing w/ im abroad8 9! Hmmigrants and Dil professionals and EEs working w/ UN agencies or speciali0ed bodies E;ects of Dailure to 'emit $! orkers wo fail to comply w/ te mandatory remittance re)ment sall be suspended/e*cluded from te list of  eligible workers for overseas EENT! %ubse)uent violations sall warrant is repatriation! "! EE'% wo fail to comply sall be e*cluded from te overseas EENT program! >rivate EENT agencies/entities sall face cancellation or revocation of teir licenses or autority to recruit, w/o prejudice to oter liabilities under e*isting laws and regulations 5K "6 'E1UL?THL?5EBENT ?5THPHTHE%

'E5'UHTBENT

&

?rt "C6 >'HP?TE %E5T<' >?'TH5H>?THL?5EBENT rivate %ectors tat can participate $! >rivate EENT agencies8 "! >rivate recruitment agencies8 9! %ipping or manning agencies8 :! %uc oter persons as may be autori0ed by te %ec of #
C! 5onstruction contractors w/ a duly issued autority to operate private recruitment entities Vualications for >articipation $! 5iti0ensip re)uirement a! Dilipino citi0ens8 or b! 5orporations, partnersips or entities at least 4CR of te autori0ed and voting capital stock of w/c is owned & controlled by Dilipino citi0ens! "! 5apitali0ation a! >rivate EENT agency for local EENT i! Dor single proprietorsip or partnersip – minimum net wort of "GGk pesos ii! Dor corporations – a minimum paid up capital of  Cook pesos b! >rivate recruitment or manning agency for overseas EENT i! Dor single proprietorsip or partnersip – >"B minimum capital ii! Dor corps – >"B minimum paid up capital, >rovided, tat tose w/ e*isting licenses sall, w/in : yrs from e;ectivity ereof, increase teir capitali0ation or paid(up capital, as te case may be, to >"B at te rate of "CGW every yr! 9! Tose not oterwise dis)ualied by law or oter govt regulations to engage in te recruitment & placement of workers for overseas EENT #is)ualied from 'ecruitment & >lacement of  orkers for ersons, partnersips or corps wic ave derogatory records, suc as but not limited to6 a! Tose certied to ave derogatory record/info by te N7H or by te ?nti(illegal 'ecruitment 7ranc of  te >
d! Tose agencies wose licenses ave been previously cancelled or revoked by ># ::" as amended and teir H'' as well as te Labor 5ode@s H'' e! <=cials/EE% of te #rovincial recruitment and/or job fairs may be allowed only wen autori0ed by >urposes6 $! To guarantee compliance w/ prescribed recruitment procedures, rules & regulations, and terms & conditions of  EENT8 and "! To ensure prompt & e;ective recourse against suc companies wen eld liable for applicants/workers@ claim E*emption from 1arnisment 5as bond led by applicants for license/autority is not subj to garnisment by a judgment creditor of te agency! %ould te bond/deposit in escrow or any part tereof be garnised, te same sould be replenised by te agency w/in $C days from notice from te >?H# 7J <'WE'% •

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 Te applicant can be carged w/ fees only after e as obtained EENT or as actually commenced EENT Dees paid sall always be covered w/ te approp receipt clearly sowing te amount paid! >
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>roibition on 5arging Dees $! >lacement fees cannot be collected from a ired worker until e as signed te EENT contract & sall be covered by receipts clearly sowing te amt paid "! Banning agencies sall not carge any fee from seafarer(applicants for its recruitment & placement services! ?ll e*penses for iring seamen sall be souldered by foreign sipping principals! 9! No oter fees/carges, including processing fees sall be imposed against any worker! ?rt 9: & %ection  '? 3G:"6 >''?5TH5E%6 Ht sall be unlawful for any indiv, entity, licensee or older of autority6 $! To carge greater amt tan tat specied in te scedule of allowable fees +illegal e*action.8 "! To furnis any false info in relation to recruitment/EENT +false information.8 9! To give any false notice, testimony, etc! or commit any act of misrepresentation to secure a license or autority +false statements.8 :! To induce or attempt to induce a worker to )uit is job in lieu of anoter o;er unless it is designed to liberate te worker from oppressive terms of EENT +pirating.8 C! To inAuence of attempt to inAuence any person/entity no to employ any worker wo as not applied for EENT troug is agency +inAuencing not to employ.8 ! To engage in te recruitment/placement of   jobs armful to public ealt, morality or to te dignity of te >K +armful jobs.8 4! To obstruct or attempt to obstruct inspection by te Labor %ec or is autori0ed reps +obstruct inspection.8 3! To fail to le reports on te status of EENT, placement, etc! and suc oter matters as may be re)uired by te %ec of Labor +failure to comply w/ rules & regulations.8 2! To substitute or alter EENT contracts w/o te approval of te %ec of Labor +alteration of contracts.8 $G! To become an o=cer or member of te board of any corp engaged in te mgt of a travel agency8 and $$! To witold travel docs from applicant workers before departure for unautori0ed monetary considerations +witolding documents.! $C

5ontract by >rncipal Even if it was te principal of te manning agency wo entered into contract w/ te EE, te manning agent in te >K is jointly & solidarily liable w/ te principal •

?rt 9C6 %U%>EN%H 1rounds for %uspension/5ancellation of License $! Te acts proibited under ?rt 9:8 "! 5arging a fee before te worker is employed or in e*cess of te autori0ed amt8 9! #oing recruitment in places outside its autori0ed area8 :! #eploying workers w/o processing troug te >ublising job announcements w/o >
E*ception to Liability of 'ecruitment agency en workers temselves insisted for te recruitment agency to send tem back to teir foreign EE' despite teir knowledge of its inability to pay teir wages •

%uability of Doreign 5orps ? foreign corp tat, tru unlicensed agents, recruits workers in te country may be suid in and found liable by > courts •

5K 96 BH%5ELL?NE'. canvassing, enlisting, transporting, contracting, utili0ing, or procuring workers and includes +5'?>. contract services, referrals, or advertising, promising for employment abroad, weter for prot or not, wen undertaken by a non(licensee or non(older of autority8 >rovided tat any suc non(licensee or non( older of autority wo in any manner, o;ers or promises for a fee employment abroad to " or more persons sall be deemed so engaged! ?lso includes te act of reprocessing workers troug a job order tat pertains to none*istent work, work di;erent from te actual overseas work, or work w/ a di;erent EE' weter registered or not w/ te >
Elements of Hllegal 'ecruitment $! Te o;ender is a licensee/non(licensee or older/non(older of autority engaged in te recruitment & placement of workers8 and

$

"! Te o;ender undertakes eiter any recruitment activities devided under ?rt $9 +b. or any proibited practices in ?rt 9:

Note6 Ba* penalty if te person illegally recruited is less tan $3 y/o or committed by a non( licensee or non(older of autority

%imple Hllegal 'ecruitment – ere a person6 $! undertakes any recruitment activity dened under ?rt $9+b. or any proibited practice enumerated under ?rts 9: & 93 of  te L58 and "! does not ave a license or autority to lawfully engage in te recruitment & placement of any workers!

?bsence of receipts evidencing payment, not fatal to prosecution@s case for illegal recruitment – as long as te witnesses can positively sow troug teir respective testimonies tat te accused is te one involved in proibited recruitment

Hllegal 'ecruitment in Large %cale – furter re)uires a 9 rd element6 9! Te o;ense is committed against 9/more persons, individually or as a group

Hllegal 'ecruitment as Economic %abotage6 $! en illegal recruitment is committed by a syndicate +wen 9/more persons conspire or confederate w/ one anoter in carrying out an unlawful or illegal transaction, enterprise or sceme.8 "! en illegal recruitment is committed in a large scale +if committed against 9/more persons individually or as a group 5onse)uences of 5onviction $! ?utomatic revocation of license/autority8 "! Dorfeiture of te cas & surety bonds8 9! 5onviction for te crime of estafa, if found guilty tereof  Hllegal 'ecruitment vs Estafa Hllegal recruitment is malum proibitum, wereas estafa is malum in se +criminal intent necessary for conviction. a person may be carged & convicted for bot

Liability of Local EEnt agency – solidarily liable w/ te foreig principal for unpaid salaries of a worker recruited! 7efore recruiting, te agency is re)uired to submit a doc containing its power to sue and be sued jointly and solidarily w/ te principal or foreign(based EE' for any of  te violations of te recruitment agreement and te contracts of EEnt Liability of 5ompany Engaged in Hllegal 'ecruitment – may be eld as principal, togeter is EE', if it is sown tat e actively  & consciously   participated in illegal recruitment  Hssuance of searc warrant/warrant of arrest ?rt 93 is unconstitutional inasmuc as it gives te %ec of Labor te power to issue searc or arrest warrants  Te  e*ception is in cases of deportation wom te >resident or te 5ommissioner of Hmmigration may order arrested, following a nal roder of deportation Note6 te %ec of Labor may order closure of  illegal recruitment establisments because it is only administrative & regulatory in nature •

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?cts 5onstituting Estafa ( te accused represented temselves to complainants to ave te capacity to send workers abroad altoug tey did not ave any autority or license, enabling tem to obtain placement fee Penue of criminal action arising from Hllegal 'ecruitment  Te complainant may, at is option le at te 'T5 of te province/city6 a!. were te o;ense was committed8 or b!. were te o;ended party resides at te time of te commission of te o;ense >rescriptive >eriod Dine %imple C yrs >$("B Economic %abotage "G yrs >"(CB

Hmprisonment $"("G yrs Life

 THTLE "6 EB>Lermit +?E>. – re)uired for entry into te country for employment purposes and is issued after determination of  te non(availability of a person in te pK wo is competent, able and willing at te time of  application to perform te services for w/c te alien is desired ?ll foreign nationals wo intend to engage in gainful EENT in te >K sall apply for ?E> •

Employment >ermit 'e)uired $! all foreign nationals seeking admission to te >K for te purpose of EENT8 "! all non(resident foreign nationals already working in te >K8 9! non(resident foreign nationals admitted to te >K on non(working visas and wo wis to seek EENT8 and :! missionaries or religious workers wo intend to engage in gainful EENT! Note6 ?E> sould be secured regardless  of te source of compensation and duration of te EENT, weter te EENT is part(time or temp ?n ?E> is issued based on te ;6 $4

$! 5ompliance by te applicant EE' or te foreign national w/ te substantive & documentary re)uirements8 "! #etermination of #rogram is no longer a re)uirement in te issuance of ?E> and te EEr as now te option to implement transfer of tecnology 'e)uisite for EENT of 'esident ?liens6 Hmmigrants & resident aliens are not re)uired to secure a working permit! Tey are re)uired to secure teir ?lien Employment 'egistration 5ert +?E'5. E*emption from >ermit $! ?ll members of te #iplomatic service and foreign govt o=cials accredited by and w/ reciprocity arrangement w/ te > govt8 "! <=cers and sta; of international orgs of  w/c te >K is a member, and teir legitimate spouses desiring to work in te >K8 9! Doreign nationals elected as members of  1overning 7oard wo do not occupy any oter position, but ave only voting rigts in te corp8 :! ?ll foreign nationals granted e*emption by law8 C! K for a limited period and solely for te purpose of interviewing Dilipino applicants for EENT abroad8 ! Doreign nationals wo come to te >K to teac, present and/or conduct researc studies in univs and colleges as visiting, e*cange or adjunct professors under formal agreements bet te univs or colleges in te >K an foreign univs or colleges8 or bet te > govt and foreign govt8 provided tat te e*emption is on a reciprocal basis8 and 4! 'esident foreign nationals! •

1rounds for denial of ?pplication of ?E> $! Bisrepresentation of facts in te application8 "! %ubmission of falsied docs8 9! Te foreign national as a derogatory record8 or :! ?vailability of a Dil wo is competent, able and willing to te job intended for te alien! 1rounds for suspension of ?E> $! Te continued stay of te foreign national my result in damage to te interest of te industry of te country8 and

"! te EENT of te alien is suspended by te EE' or by te order of te court 1rounds for revocation of ?E> $! Non(compliance w/ any of te re)uirement/conditions for w/c te ?E> was issued8 "! Bisrepresentation of facts in te application8 9! %ubmission of falsied docs8 :! Beritorious objection or information against te EENT of foreign national as determined by te 'egional #ir8 C! Doreign national as a derogatory record8 and ! EE' as terminated te EENT of te foreign national! Palidity of EENT >ermit $ yr, unless te EENT contract, consultancy services or oter modes of  engagement provides oterwise, w/c sall in no case e*ceed Cyrs ne for working w/o or wit an e*pired ?E> >$GW for every year or a fraction tereof! •

•

'ule on Nationali0ed 7usiness 1'6 Doreigners may N'<E' #EPT >'<1'?B 5K $6 N?THLEBENT?TH
%tatement of 1oals & LE5H?L <'WE'% 5K$6 TJ>E% E5H?L <'WE'% $! ?pprentice "! Learner 9! Kandicapped ?rt C4 %T?TEBENT E5H?L <'WE'% $! To elp meet te demand of te economy for trained manpower8 "! To establis a national apprenticesip program8 and 9! To establis apprenticesip standards for te protection of apprentices!

$! ?t least $C y/o, provided tat if below $3 y/o, e sall not be eligible for a0ardous occupation8 "! >ysically t for te occupation in w/c e desires to be trained8 9! >ossess vocational aptitude and capacity for te particular occupation as establised troug appropriate tests8 and :! >ossess te ability to compreend and follow oral & written instructions! Note6 Total pysical tness is not re)uired of  te apprentice(applicant unless it is essential to te e*peditious and e;ective learning of te occupation! L>'ENTH5E% Vualications to be met by EE'6 $! eriod of apprenticesip sall not e*ceed  monts Note6 at te termination of te apprenticesip, te EE' is not re)uired to continue te EENT

?rt C36 #EDHNHTH
 Tere is no valid apprenticesip if6 $! Te agreemt submitted to te TE%#? was made long after te workers started undergoing apprenticesip8 "! Te work performed by te apprenticesip was di;erent from tose allegedly approved by TE%#?8 9! Te workers undergoing apprenticesip are already skilled workers8 :! Te workers were re)uired to continue undergoing apprenticesip beyond mos! ?rt $6 5>'ENTH5E%KH> ?1'EEBENT $! Dull name & address of te contracting parties8 "! #ate of birt of te apprentice8 9! Name of trade, occupation or job in w/c te apprentice sall be trained and te dates on w/c suc training will begin and will pro*imately end8 :! ?pprop number of rs of <T w/ compulsory teoretical instruction w/c te apprentice sall undergo during is training8

?rt C26 VU?LHDH5?TH>'ENTH5E% $2

C! %cedule of te work processes of te trade/occupation in w/c te apprentice sall be trained and te appro*! time to be spent on te job in eac process8 ! 1raduated scale of wages to be paid to te apprentice8 4! >robationary pd of te apprentice during wc eiter party ay summarily terminate teir agreemt8 and 3! ? clause tat if te EE' is unable to fulll is training oblig, e may transfer te agreemt, w/ te consent of te apprentice to any oter EE' wo is willing to assume suc oblig! orking Krs – sall not e*ceed te ma* number of rs prescribed by law, if any, for a worker of  is age and se*! Time spent in compulsorily teoretical instruction sall be considered rs of work! ?n apprentice not oterwise barred by law from working 3rs may be re)uisted by is EE' to work overtime and paid accordingly! ?rt "6 %H1NHN1 >'ENTH5E%KH> ?1'EEBENT o signs6 $! Te apprentice, if of age, oterwise, by is parent or guardian, or in te latter@s absence, by an autori0ed rep of TE%#?8 and "! EE' or is duly autori0ed rep ?rt 96 PENUE >'ENTH5E%KH> >'<1'?B $! itin te sponsoring rm, establisment or entity8 or "! itin a #>'ENTH5E%KH> >'<1'?B% 7J6 $! Te plant, sop or premises of te EE' or rm concerned if te apprenticesip program is organi0ed by an indiv EE' or rm8 "! Te premises of one or several rms designated for te purpose by te organi0er of te program if suc organi0er is an assoc of EE'%, civic group and te like8 and 9! #

?>>'ENTH5E%KH>

?rt C6 Hnvestigation of violation of apprenticesip agreement $! Eiter party to an agreemt may terminate te same after te probationary pd only for a valid cause!

"! ?ction may be initiated upon complaint of  any interested person or upon #
Palid 5ause to terminate agreement $! 7y te EE'6 a! Kabitual absenteeism in <T and related teoretical instructions8 b! illful disobedience of company rules or insubordination to lawful order of a superior8 c! >oor pysical condition, permanent disability or prolonged illness w/c incapacitates te apprentice from working8 d! Teft or malicious destruction of  company property and/or e)uipment e! >oor e=ciency or perf on te job or in te classroom for a prolonged period despite warnings duly given to te apprentice8 and f! Engaging in violence or oter forms of gross misconduct inside te EE'@s premises "! 7y te apprentice6 a! %ubstandard or deleterious working conditions w/in te EE'@s premises8 b! 'epeated violations by te EE' of  te terms of te apprenticesip agreemt8 c! 5ruel or inumane treatment by te EE' or is subordinates8 d! >ersonal problem s/c in te opinion of te apprentice sall prevent im from a satisfactory perf of is job8 and e! 7ad ealt or continuing illness! ?rt 6 ?ppeal  Te decision of an autori0ed agency of  te #
•

?rt 4 E*austion of ?dministrative 'emedies $! Te e*austion of administrative remedies is a condition precedent to te institution of action! "! Te plant apprenticesip committee sall ave initial responsibility for settling di;erences arising out of apprenticesip agreements! ?rt 36 ?>THTU#E TE%T% ?NT
B?'HTHBE

D?5T%6 "G

>etitioner ?ntonio %errano was ired by respondents 1allant Baritime %ervices, Hnc! and Barlow Navigation 5o!, Hnc!, under a >ilippines, serving only two monts and 4 days, leaving an une*pired portion of nine monts and twenty( tree days! Upon complaint led by %errano before te Labor ?rbiter +L?., te dismissal was declared illegal! artial 'econsideration, but tis time e )uestioned te constitutionality of te last clause in te Ct paragrap of %ection $G of '? 3G:"! H%%UE%6 $! eter or not te subject clause violates %ection $G, ?rticle HHH of te 5onstitution on non( impairment of contracts8 "! eter or not te subject clause violate %ection $, ?rticle HHH of te 5onstitution, and %ection $3, ?rticle HH and %ection 9, ?rticle IHHH on labor as a protected sector! KEL#6 etitioner@s claim tat te subject clause unduly interferes wit te stipulations in is contract on te term of is employment and te *ed salary package e will receive is not tenable!  Te

subject

clause

may

not

be

declared

unconstitutional on te ground tat it impinges on te impairment clause, for te law was enacted in te e*ercise of te police power of te %tate to regulate a business, profession or calling, particularly te recruitment and deployment of 
2


"$

employment, did ten and tere, willfully, unlawfully and criminally recruit, contract and promise to deploy, for a fee te erein complainants, namely, Hmelda #! 7amba, 1eraldine B! Lagman and ?lma E! %ing, for work or employment in Los ?ngeles, 5alifornia, U!%!?! in Nursing Kome and 5are 5enter! >rosecution presented tree witnesses, namely Hmelda 7amba, 1eraldine Lagman and ?lma %ing! ?ccording to 7amba, se met te appellant on a bus! %e was on er way to %B Nort Edsa were se was a company nurse! ?ppellant introduced imself as a recruiter of  workers for employment abroad! ?ppellant told er e could elp er get employed as nurse! ?ppellant gave is pager number and instructed er to contact im is se@s interested! %ometime in anuary $22, appellant fetced er at er o=ce, went to er ouse and gave im te necessary documents and anded to appellant te amount of U%X9GG!GG and te latter sowed er a potocopy of er supposed U% visa! Kowever, te appellant did not issue a receipt for te said money! Tereafter, appellant told er to resign from er work because se was booked wit Nortwest ?irlines and to leave for U%? on Deb, $22! $G,GGG to te appellant covering alf price of er plane ticket! Tey paged te appellant troug is beeper to set up anoter appointment but te appellant avoided tem as e ad many tings to do!  Te accused amilosa testied on direct e*amination tat e never told 7amba tat e

could get er a job in U%?, te trut being tat se wanted to leave %B as company nurse because se was aving a problem tereat! 7amba called im several times, seeking advices from im! Ke started courting 7amba and went out dating until latter became is girlfriend! Ke met Lagman and %ing tru 7amba! ?s complainants seeking advice on ow to apply for  jobs abroad, lest e be carged as a recruiter, e made 7amba, Lagman and %ing sign separate certications, all to e;ect tat e never recruited tem and no money was involved! 7amba led an illegal recruitment case against im because tey )uarreled and separated! 'T5 rendered judgment nding accused guilty beyond reasonable doubt of illegal recruitment in large scale! =SSUE: Hllegal 'ecruitment in a large scaleZ >ELD: ?'ecruitment and placement[ refers to any act of canvassing, enlisting, contracting, transporting, utili0ing, iring, or procuring workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, weter for prot or not! >rovided,  Tat any person or entity wic, in any manner, o;ers or promises for a fee employment to two or more persons sall be deemed engaged in recruitment and placement! Hllegal recruitment sall mean any act of  canvassing, enlisting, contracting, transporting, utili0ing, iring, or procuring workers and includes referring, contract services, promising or advertising for employment abroad, weter for prot or not, wen undertaken by a non(licensee or non(older of autority! >rovided, Tat any suc non(licensee or non(older wo, in any manner, o;ers or promises for a fee employment abroad to two or more persons sall be deemed so engaged!  To prove illegal recruitment in large scale, te prosecution is burdened to prove tree +9. essential elements, to wit6 +$. te person carged undertook a recruitment activity under ?rticle $9+b. or any proibited practice under ?rticle 9: of te Labor 5ode8 +". accused did not ave te license or te autority to lawfully engage in te recruitment and placement of workers8 and +9. accused committed te same against tree or more persons individually or as a group! ?s gleaned from te collective testimonies of te complaining witnesses wic te trial court and te appellate court found to be credible and deserving of full probative weigt, te prosecution mustered te re)uisite )uantum of  evidence to prove te guilt of accused beyond reasonable doubt for te crime carged! Hndeed, te ndings of te trial court, a=rmed on appeal by te 5?, are conclusive on tis 5ourt absent evidence tat te tribunals ignored, misunderstood, or misapplied substantial fact or oter circumstance!  Te failure of te prosecution to adduce in evidence any receipt or document signed by appellant were e acknowledged to ave received money and li)uor does not free im from criminal liability! Even in te absence of  ""

money or oter valuables given as consideration for te [services[ of appellant, te latter is considered as being engaged in recruitment activities! Ht can be gleaned from te language of  ?rticle $9+b. of te Labor 5ode tat te act of  recruitment may be for prot or not! Ht is su=cient tat te accused promises or o;ers for a fee employment to warrant conviction for illegal recruit COND=T=ONS O< E@"LO@ENT OR=N6 COND=T=ONS & REST "ER=ODS Art ;) COERA6E a! ?LL employees in all establisments & undertakings weter for prot or not b! %uc standards apply only if tere e*ists EE'(EE relationsip  EI5E>TH
a!  drivers tat are re)uired to be at specic places at specic times are not eld personnel b!  in case of sermen altoug performing non( agri work away from te o=ce, te fact tat tey ave no coice but to remain on board te vessel, tey are still under constant supervision by te E' tru te vessel@s patron/master iv!

Employer@s family members wo are dependent on im for support v! #omestic elpers   ouse personnel ired by a ranking company o=cial, a foreigner, but paid for by te company itself, to maintain a sta;  ouse provided for te o=cial regular EE vi! >ersons in te personal service of anoter vii! orkers paid by result – per piece/per task ( laborer/EE w/ no *ed salary, wag, or renumeration but receiving a compensation from is E' an uncertain & variable amount depending upon te work done or te result of said work +piece work., irrespective of te time employed EE'(EE 'elationsip – is not dependent upon te agreement of te parties! Te caracteri0ation by law prevails over tat in te contract!  te e*istence of an EE'(EE relsp is not a matter of stipulation but a )uestion of law d! depends on te facts of eac case 5ore/Non(core obs e! EE'(EE relsip may comver core/non(core activities of te EE'@s business! f! Te kind of work is not te denitive test of weter te worker is an EE or not! Employer – any person, natural or juridical, domestic or foreign, wo carries on in te >K any trade, business, industry, undertaking or activity of any kind and uses te services of  anoter person wo is under is order as regards employment Employee – any person wo performs services for an EE' in w/c eiter or bot mental & pysical e;orts are used and wo receives compensation for suc services, were tere is an EE'(EE relationsip  TE%T%
also te means to be sued in reacing suc end! >lus6 te courts added te e*isting economic conditions prevailing bet te parties +like payrolls. in determining te e*istence of EE'( EE 'elsip! ELEBENT% +Dour(fold Test. i! te selection  and engagement of te EE8 ii! te payment of wages; iii! te power of dismissal; iv! te employer@s power to control te EE w/ respect to te means & metods by w/c te work is to be accomplised +most important. Hndependent contractors – can employ oters to work & accomplis contemplated result w/o consent of contractee, wile EE cannot substitute anoter in is place w/o consent of  is EE'! "! Te Economic #ependence Test – observes te need to consider te e*isting conditions bet te parties 7est approac6 ?pply te two(tiered test involving6 $! te putative employer@s power to control te EE w/ respect to te means and metods by w/c te work is to be accomplised8 and "!te underlying economic realities of te activity or relationsip a! te e*tent to w/c te services performed are an integral part of  te employer@s business8 b! to te e*tent of te worker@s investment in e)uipment and facilities8 c! te nature and degree of control e*ercised by te employer8 d! te worker@s opportunity for prot and loss8 e! te amount of initiative, skill,  judgment or foresigt re)uired for te success of te claimed independent enterprise8 f! te permanency and duration of  te relationsip between te worker and te employer8 and g! te degree of dependency of te worker upon te employer for is continued employment in tat line of business %tandard of economic dependence – weter te worker is dependent on te alleged employer for is continued employment in tat line of  business Evidence of employment i! id card ii! voucers of salaries iii! sss registration iv! memorandum

 ?bsence of EE@s name in payroll does not mean

e is not an EE  Bode of 5ompensation – not a test of EEnt status8 pakyaw basis does not mean workers are independent contractors Hndependent contractors( generally rely on teir own resources S Unions and unregistered associations can be EE's of te persons wo work for tem 1'6 ?n employee is not a contractor8 a contractor is not an employee! 1'6 ile EE(E' relationsip e*ists bet a job contractor and te workers tat e ires, no suc relationsip e*ists bet tose workers and te job contractee, te contractor@s client!  Labor(only contractor – serve as an agent of  te true employer by merely recruiting & supplying people +proibited.! 5onditions of Employment – laid down by law or by contract concluded individually w/ an EE or collectively w/ a group may also arise from establised practice in te enterprise " Winds of Employment 5onditions a! %tatutory – provided for by law b! Poluntary – initiated by te E' unilaterally or by contractual stipulation ?n employer is free to regulate, accdg to is own discretion & judgment, all aspects of EENT, including iring, work assignments, working metods, time, place and manner of work, tools to be used, processes to be followed, supervision of workers, working regulations, transfer of EE%, work supervision, lay(o; of  workers and discipline, dismissal and recall of  workers! Employers ave te rigt to e*ercise management prerogatives to strengten is business   competitiveness unlawful/ unjust/unfair8 so long as tey are e*ercised in 1D for te advancement of is interest and not for te purpose of   defeating/circumventing te 's of  te EE% a! Bay devise & implement new salary scales applicable only to future EE%! +salary distortion. •

•

Bembers/<=cers of te Banagerial %ta;6 #uties & 'esponsibilities $! Teir primary duty consists of te performance of work directly related to mgt policies of teir E'8 "! Tey customarily & regularly e*ercise discretion and independent judgment8 9! Tey regularly & directly assist te managerial EE wose primary duty consists of te mgt of a dept of te ":

establisment in w/c tey are employed8 :! Tey e*ecute, under gen supervision, work along speciali0ed/tecnical lines re)uiring special training, e*perience or knowledge8 C! Tey e*ecute, under gen supervision, special assignments and tasks8 and tey do not devote more tan "GR of  teir ours worked in a work(week to activities w/c are not directly & clearly related to te performance of teir work Art () NOR@AL >OURS O< OR  sall not e*ceed 3 rs/day •

>urpose of 3(r Labor law – not only to safeguard te ealt & welfare of te laborer/EE, but in a way to minimi0e unemployment by forcing E's, in cases were more tan 3(r operation is necessary, to utili0e di;erent sifts to laborers/EEs working only for 3 rs eac >art(time ork – not proibited! +at te law regulates is work e*ceeding 3rs. 1'6 age & benets of a part(timer are in proportion to te number of rs worked! ork rs of Kealt >ersonnel Kealt personnel – sall include, but not limited to, resident pysicians, nurses, nutritionists, dieticians, parmacists, social workers, lab tecnicians, paramedics, psycologists, midwives, attendants, and all oter ospital & clinic personnel like medical secretaries

>rinciples in #etermining Kours rked $! ?ll rs are rs worked w/c te EE is re)uired to give to is E', regardless of  re/>ostliminary ?ctivities >reliminary +before work. and postliminary +after actual work. activities are deemed performed during working rs, were suc activities are controlled/re)uired by te E' and are pursued necessarily & primarily for te E'@s benet •

'esident pysicians – customary practice to work for ": rs a day violates te limitations in ?rt 39!  wen tey are under training program/agreement bet te residents and te ospital accredited by te govt Kospital EEs – are entitled to a full weekly salary w/ apid " days o; if tey ave completed te :Gr/Cday workweek +4days pay for C days work. Kealt personnel in 1ovt service – covered by '? 49GC $"(r orksift wit OURS ORED sall inclue: 7) all ti!e uring wGc an EE is re.uire to be on ut' or to be at a %rescribe wor/%lace- an ;) all ti!e uring wGc an EE is su,ere or %er!itte to wor/  Rest %erios o# sort uration uring wor/  rs sall be counte as ours wor/e

aiting Time weter waiting time constitutes working time depends on te circumstances on eac particular case controlling factor is 
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orking ile Eating 1'6 EE must be completely relieved from duty for te purpose of eating regular meals! Te meal time is not compensable if e is completely "C

free from duties during is meal period even toug e remains in te workplace!  EE is not relieved if e is re)uired to perform is duties weter active/inactive, wile eating +e*! %tand(by for emergency work. orking ile %leeping 1'6 %leeping time may be considered working time if it is subj to serious interruption or takes place under conditions substantially less desirable tan would be likely to e*ist at te EE@s ome!  if tere is an opportunity for comparatively uninterrupted sleep under fairly desirable conditions, event toug EE is re)uired to remain on or near te E'@s premises and must old imself in readiness for a call to action ENT! depends upon te e*press/implied agreement of te parties, or in absence of an agreement, upon te nature of te service and its relation to te working time! •

ublic ealt workers@
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Lectures, Beetings and Training >rograms – not worktime if6 a! ?ttendance is outside of te EE@s regular working rs8 b! ?ttendance is in fact voluntary8 and c! Te EE does not perform any productive work during suc attendance! S must meet all criteria 1rievance Beeting – time spent in adjusting grievance bet E' & Ee during te time te EEs are re)uired by te E' to be on te premises rs worked   if a bona de union is involved   depends on te 57? or te custom practice under te 57? %emestral 7reak – rs worked by teacers in private scools <'W K
K
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it 5ellular pone or
 Travel Time – time spent walking, riding, or traveling to/from place of work a! Travel from ome to work – not worktime  wen EE receives an emergency call outside is regular working rs and is re)uired to travel to is regular place of business or some oter worksiteworking time b! Travel tat is all in a day@s work – time spent by an EE in travel as part of is principal activity rs worked c! Travel away from ome – travel tat keeps an EE away from ome overnigt worktime wen it cuts across te EE@s workday

Art H) @EAL "ER=ODS must be at least Gminutes time( o; for regular meals 1'6 not compensable E*ceptions6 $! were te lunc period or mealtime is predominantly spent for te E'@s benet +considered overtime. 8or "! were it is less tan G minutes +but not less tan "Gminutes. must be wit full pay wen6 were work is non(manual +does not involve strenuous pysical e*ertion.8 were te establisment regularly operates not less tan $rs a day 9! in cases of actual or impending emergencies or tere is urgent work to be performed on macineries, e)uipment or installations to avoid serious loss w/c te E' would oterwise su;er8 :! were te work is necessary to prevent serious loss of perisable goods •

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"

Hf less tan "G minutes it becomes only a rest period and is tus considered work time Note6 Beal periods during overtime work is not given to workers performing
%ortened Beal 7reak Upon EE@s re)uest EEs may re)uest tat teir meal pd be sortened so tat tey can not leave work earlier compensable 'e)uisites $! EEs voluntarily agree in writing and waive teir
Note6 Te 3(r work period does not include te meal break! EE@s may leave te company premises as long as tey return to teir posts on time! Art 8 N=6>T S>=B and ?B ( given as premium for working at a time for sleep & rest ( in addition to te e*ceptions in ?rt 3", N%# is n/a to EEs of retail and service establisments regularly employing C employees and below (  if work done from $Gpm(am is
ay – additional compensation for work performed beyond 3rs w/in te worker@s ":(r workday regardless weter te work covers " calendar days 7asis – cas wage only, w/o any deduction 'ates $!?LE? & >?L %upervisors ?ssoc +>?L%?., commenced an action v >?L in

te 5H' praying tat te latter be ordered to revise te metod of computing te basic daily & ourly rates of its montly(salaried EEs and necessarily to pay tem teir accrued salary di;erentials >?L@s Dormula6 montly salary * $"/9C days in a yr \ 7asic daily rate basic daily rate/3 – 7asic ourly rate >roposed Dormula6 Bontly salary * $"/actual working days \ 7#' 7#'/3 \ 7K'

>aid Unworked days of a montly(paid EE ( E' may stipulate tat EE@s montly salary constitutes payment for all te days of te mont incl rest days & olidays if wen converted into its daily e)uivalent would still meet minimum wage legal Kow work day- is counted ? day – te ":(r period w/c commences from te time te EE regularly starts to work ( regardless of te day of te week or r of  te day ( any work in e*cess of te 3rs w/in te ":( r pd is considered as
1'6 ?n e*press instruction from te E' to te EE to render
after o=ce rs is re)uired for te EE to be entitled to compensation ? verbal instruction to render
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done +i!e! brownout, macine repair, lack of rawmats. ay 1'6
benets! 'eversion to te normal 3(r work day sall not constitute diminution of benets! +'eversion is considered a legitimate e*ercise of mgt prerogative, provided tat te E' sall give te EEs prior notice of suc reversion w/in a reasonable period of time! S EE may validly waive te ' to
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"3

( Hn addition to 5, te D?s include6 $! 'eduction of workdays – were normal workdays per week are reduced but sould not last for more tan  monts "! 'otation of workers – were te EEs are rotated/alternately provided work w/in te workweek 9! Dorced leave – EEs are re)uired to go on leave for several days or weeks, utili0ing teir leave credits if tere are any :! 7roken(time scedule – te work scedule is not continuous but te number of rs w/in te day or week is not reduced C! Dle*i(oliday scedule – Ees agree to avail temselves of te olidays at some oter days, provided tat tere is no diminution of e*isting benets as a result of suc arrangement Art ) UNDERT=@E NOT O<ermission given to te EE to go on leave o some oter day of te week sall not e*empt E' from paying te addtl compensation 'eason6 EE@s ourly rate is not e)uivalent to roper metod6 #educt te UT from te accrued leave, if any Art 9) E@ER6ENC OT OR  1'6 EEs cannot be compelled to render
(  T TO EEL REST DA  #uration6 at least ": consecutive rs after every  consecutive normal work days ( all establisments & enterprises may operate or open for business on %undays & olidays provided tat te EEs are given te weekly rest day & te benets provided under te law o #etermines6 Te E' determines and scedules te weekly rest period subj to te ;6 $!57?8 "!'ules & regulations issued by te %ec of  Labor8 and 9!EE@s preference based on religious grounds! +en suc preference will prejudice te business of te E', and no oter remedial measures are available, te weekly rest pd may be sceduled to meed te EE@s coice for at least " days a mont Art 9;) >EN T>E ER @A REIU=RE OR  ON A REST DA  1'6 Te E' may not re)uire te EEs to work on a rest day 6 E*ceptions $!Hn cases of urgent work to be performed on te macinery, e)uipment or installation8 "!To prevent loss or damage to perisable goods8 9!Hn case of actual/impending emergencies caused by force majeure to prevent loss of  life and property, or imminent danger to public safety8 :!ere te nature of work re)uires continuous operations and te stoppage of  work may result in irreparable injury/loss to te E'8 C!Hn te event of abnormal pressure of work due to special circumstances, were te E' cannot ordinarily be e*pected to resort to oter measures8 and !Under te circumstances analogous to te foregoing as determined by te %ec of  Labor! Note6 Te failure to work during an EE@s rest day does not justify disciplinary sanction of  outrigt dismissal, more so wen justiable grounds e*ist for te said failure! Note6 en an EE volunteers to work on is rest day under oter circumstances, e may be allowed to do so, provided e e*presses suc desire in writing and e is paid te addtl compensation for working on is rest day Art 9() CO@"ENSAT=ON OL=DA OR 

REST DA-

>remium pay or #i;erential compensation – addtl compensation for work rendered by te EE on days wen normally e sould not be working suc as special olidays and weekly rest days "2

Note6 Tis article does not proibit a 57? stipulation for iger benets Dormulas to 5ompute ages on Kolidays $!Dor 'E1UL?' Klus 9GR of ourly rate of  said day b! if it is an EE@s rest day i! if unworked – $GGR ii! if worked $! $st 3rs – plus 9GR of  "GGR "! e*cess of 3 rs – plus 9GR of ourly rate of said day "! Dor declared %>E5H?L #?J% suc as %pecial Non(orking #ay, %pecial >ublic Koliday, %pecial National Koliday and nationwide special days $! Hf unworked – no pay, unless tere is a favorable company policy, practice or 57? granting payment of wages on special days even if unworked "! Hf worked a! $st 3rs – plus 9GR of  te daily rate of $GGR b! e*cess of 3rs – plus 9GR of ourly rate on said day 9! Dalling on te EE@s rest day and if worked a! $st 3rs – plus CGR of  te daily rate of $GGR b! e*cess of 3rs – plus 9GR of ourly rate on said day 9! Dor tose declared as %>E5H?L <'WHN1 Kroc! :C2 ?! 'egular Kolidays $! New Jear@s #ay "! Baundy Tursday 9! 1ood Driday :! ?raw ng Wagitingan C! Labor #ay ! Hndependence #ay 4! National Keroes #ay 3! 7onifacio #ay 2! 5ristmas #ay $G! 'i0al #ay 7! %pecial +Non(working.#ays $! 7lack %aturday "! Ninoy ?)uino #ay 9! ?ll %aints #ay :! Nov " C! #ec ":

! Last #ay of te Jear 5! %pecial Koliday +for all scools. E#%? 'evolution ?nniversary #! Local Koliday  Tose declared by law or ordinance 'egular Koliday 5ompensable even if unworked subj to certain conditions Limited to te list enumeration

%pecial #ay Not compensable if  unworked

Not e*clusive since a law or ordinance may provide for oter special olidays 'ate is "GGR of te 'ate is $9GR of te regular rate if   regular wage if   worked worked ?ddtl 5ompensation for ork on a 'est day, %unday or Koliday #ay 'ate of ?ddtl 5ompensation ork on a 9GR of regular wage sceduled rest day No regular 9GR of regular wage workdays and no for work performed specic rest days on %undays & olidays ork on %unday 9GR wen it is is establised rest day ork on special 9GR oliday ork on special CGR oliday falling on sceduled rest day ork on regular "GR of regular oliday falling on wage sceduled rest day

Art 9F) R=6>T TO >OL=DA "A  Koliday pay – a day@s pay given by law to an EE even if e does not work on a regular oliday! ( Ht is limited to te regular/legal olidays listed by law! ( EE sould not ave been absent w/o pay on te working day preceding te regular oliday Note6 Hn addition to te E*ceptions in ?rt 3", Koliday pay is n/a to EEs of retail and service establisments regularly employing $G workers or less

'ule on 5ompensability – compensable weter worked or unworked subj to certain conditions! Legal oliday falling on a %unday does not create an addtl oblig for te E' to pay e*tra, aside from te usual oliday pay to its montly paid EEs •

Koliday pay of Bontly paid EEs 9G

1'6 for te company w/ a (day working scedule, te divisor 9$: already means tat te legal olidays are included in te montly pay of te EE! Te divisor is arrived at by subtracting all %undays from te total number of calendar days in a yr 1'6 for a company w/ a C(day working scedule, te divisor "$ means tat te oliday pay is already included in te montly salary of te EE Koliday pay of Teacing >ersonnel >aid per Lecture Kr ( not entitled to payment of oliday pay since tey are paid by te rs worked8 and no class days- means no work for tem ( entitled to teir regular ourly rate on days declared as special olidays or wen classes are called o; or sortened on acct of typoons, Aoods rallies, and te like #ouble Koliday >ay +?raw ng Wagitingan & 1ood Driday on te same day. $!"GGR of te basic wage a! entitled even if said oliday is unworked b! to give EE only $GGR would reduce te number of olidays under te law "!:GGR if e worked on " regular olidays falling on te same day 9!C"GR if e worked on " regular olidays falling on te same day and at te same time falling on a sceduled rest day %ingle Koliday 'ule6 provided tat te EE $!worked8 "!was on leave w/ pay8 or 9!was on autori0ed absence on te day prior to te regular oliday! %uccessive 'egular Kolidays6 to be entitled to " successive olidays, te EE must6 $!be present on te day immediately preceding te rst oliday8 or "!be on leave w/ pay!
E;ects of 7usiness 5losure on Koliday >ay Hf regular oliday occurs during6 $!Temporary or periodic sutdown and temporary cessation of work of an establisment te regular olidays falling w/in te period sall be compensated! "!5essation of operation of an enterprise due to business reverses as autori0ed by te %ec of Labor te regular oliday may not be paid by E' C 9H) R=6>T TO SER=CE =NCENT=E LEAE 4S=L5 5oncept6 C days leave w/ pay for every EE wo as rendered at least $ yr of service

$ yr of service – service w/in $" monts, weter continuous or broken, reckoned from te date te EE started working including autori0ed absences and paid regular olidays unless te number of working days in te establisment as a matter of practice/policy is less tan $" monts %HL is N/? to te ;6 $!EEs of te 1ovt "!#omestic elpers and persons in te personal service of anoter8 9!Banagerial EEs :!Dield personnel wose performance is unsupervised or tose wo are paid a *ed amt for performing work irrespective of te time consumed in te performance tereof  C!Tose already enjoying te said benets !Tose already enjoying vacation leave w/ pay for at least C days8 4!Tose employed in establisments regularly employing less tan $G EEs S EEs engaged on task/contract basis or paid purely commission basis are not automatically e*empted from te %EL unless tey fall under te classication of eld personnel! 5onversion to Bonetary E)uivalent %HL is 5art(time workers 9!>iece(rate workers6 a! orking inside te premises of E' & tus are under direct supervision of te E'  entitled b! orking outside te premises of  te E' wose ours of work cannot be ascertained w/ reasonable certainty and tus are not under te direct supervision of te E'not entitiled EEs w/ salaries above Bin age6 te di;erence bet te min wage and te actual salary received by te EEs cannot be deemed as teir $9t mont pay and %HL pay Pacation & %ick Leave ( not statutorily re)uired but is a matter of  management discretion or 57? 1'6 7enets are non(cumulative and non( commutative8 must be enjoyed by te EE w/in $yr oterwise forfeited 6 wen te labor law contract or te establised practice of te E' provides oterwise

%HL

PL/%L 9$

Bandatory ?rt 2C Hntended to alleviate te economic condition of te workers for it acts as replacement for regular income tat would not be earned during suc instance 5annot be waived

5ommutable

Poluntary grant +E'@s policy or 57?. Hntended to a;ord a laborer a cance to get a muc needed rest to replenis is energy and renew is e=ciency

Bust be demanded in its opportune time8 silence is waiver Not commutable

>arental +%olo(parent. Leave ( not more tan 4 working days every yr ( rendered to an EE wo as rendered service at least $yr ( no E' sall discriminate against any solo parent EE w/ respect to terms & conditions of ENT on acct of is/er status ( a cange in te status/circ of te parent claiming benets under tis ?ct suc tat e/se is no longer alone w/ responsibility of parentood sall terminate is/er eligibility for tese benets ( not convertible to cas unless oterwise agreed 7attered woman leave ( female EE wo is a victim of violence is entitled to paid leave of $G days in addition to oter paid leaves! ( E*tendible wen necessity arises ( EE as to submit certication from te punong brgy, kagawad, prosecutor or clerk of court tan an action under '? 2"" as been led and is pending Baternity & >aternity Leave Art 98) SER=CE C>AR6ES 5oncept6 ?ll service carges collected by otels, restaurants, and similar establisments sall be distributed as follows6 $!3CR for all covered EEs to be e)ually distributed among tem "!$CR for disposition by mgt to answer for losses and breakages and distribution to EEs receiving more tan >"k amont at te discretion of te mgt in te latter case 5overage6 only to otels, restaurants, and similar ( all EEs are covered, regardless of teir position, designation, ENT status, irrespective of te metod by w/c teir wages are paid, e*cept managerial EEs #istribution – distributed to paid EEs at least once every " weeks or "* a mont at interval of at least $ days 'ule in case of abolition

( in case te service carge is abolised, te sare of te covered EEs sall be considered integrated in teir wages ( te basis of te amt to be integrated sall be te average sare of eac EE for te past $" monts immediately preceding te abolition >ooled Tips ( were an establisment does not collect service carges but as a practice/policy of pooling tips given voluntarily by its customers, te pooled tips sould be monitored, accounted for and distributed in te same manner as te service carges Title ; A6ES C 7 Art 9$) Denitions >erson – an individual, partnersip, assoc, corp, business trust, legal rep, or any organi0ed group of persons Employer – any person acting directly/indirectly in te interest of an E' in relation to an EE & sall include te 1ovt & all its brances, subd, & instrumentalities, all govt(owned/(controlled corps & institutions, as well as non(prot private institutions/orgs! Employee ( any indiv employed by an E' ?griculture – includes farming in all its brances, and among oter tings, includes te cultivation & tillage of soil, dairying, te production, cultivation, growing & arvesting of any agricultural & orticultural commodities, te raising of livestock or poultry, and any practices performed by a famer on a farm as an incident to or in conjunction wit suc farming operations, but does not include te manufacturing or processing of sugar, coconuts, abaca, tobacco, pineapples or oter farm products! Employ – includes to su;er or permit to work age – paid to any EE8 sall mean te renumeration or earnings, owever designated, capable of being e*pressed in terms of money, weter *ed or ascertained on a time, task, piece, or commission basis, or oter metod of calculating te same, w/c is payable by and E' to an EE under a written/unwritten contract of ENT for work done or to be done, or for services rendered and includes te fair and reasonable value, as determined by te %ec of Labor, of board, lodging, or oter facilities customarily furnised by te E' ro te EE! Hncludes – te commissions recompense compensation/reward of an agent, salesman, e*ecutor, trustee, receiver, factor, broker or bailee, wen te same is calculated as a percentage on te amt of is transactions or on te prot of te principal •

onco v 'L)6 ^uelig was made to pay te terminated EE +due to 

9"

retrencment., separation pay based not only on te basic salary, but also on te commissions, transpo & emergency living allowances! Even if commissions were in te form of  incentives or encouragement, still tese commissions are direct renumerations for services rendered w/c contributed to te increase of income of te E'! Te nature of work of a salesman & te reason for suc type of renumeration for services rendered demonstrate tat commissions are part of teir wage or salary! +%ome salesmen do not receive any basic salary but depend on commissions & allowances or commissions alone, altoug an EE(E' relationsip e*ists.! •

Hncludes *acilities or commodities – fair & reasonable value of board, lodging, or oter facilities customarily furnised by te E' to te EE! ?n E' may provide, for instance, food & ousing to is EEs but e may deduct teir values from te EE%@ wages to be determined by te %ec of Labor! Snac/s 4GR ( deducted from wages +must be autori0ed in writing. 9GR ( subsidi0ed by te E' Loging #acilit' – te cost of   operation & maintenance, including ade)uate depreciation plus amt of  capital invested by te E', provided tat if te total is more tan te *air  rental value   + or te fair price of te commodities or facilities o;ered for sale.

Dair rental value (sall be te reasonable cost of te operation & maintenance! 'ate of depreciation & depreciated amt – tose arrived at under good accounting practices 1ood accounting practices – sall N
–

sall

include

 Hn order tat te cost of facilities

•

furnised by te E' may be carged against an EE, is acceptance of suc facilities must be voluntary  E*cludes allowances (

Dair & reasonable value prot to te E' or to te E' A6ES 5ompensation for manual labor, skilled/unskilled, paid at stated times, and measured by te day, week, mont, or season Hndicates considerable pay for a lower and less responsible caracter of ENT

– sall N
%uggestive of a larger and more permanent or *ed compensation for more important service 5ompensation of  clerks, o=cers of  pub corps, and pub o=ces

Kas a less e*tensive meaning tan salary8 being ordinarily restricted to sums paid as ire or reward to domestic or menial servants and to sums paid to artisans, mecanics, laborers, and oter EEs of like class Hn many situations, owever, and as te %5 states, tey are in essence synonymous


eamen.s Assoc, inc/  Te vessel crew were provided w/ free meals by te sip owners +petitioner., not part of teir wages but as a necessary matter in te maintenance of te ealt & e=ciency of te crew during te voyage! Tey sould not be deducted from

99

teir wages! Te deductions sould be returned to tem! Ato$0ig 2edge Assoc v Ato$0ig 2edge/ %upplements constitute e*tra renumeration or special privileges or wages, wile facilities on te oter and, are items of e*pense necessary for te laborer@s & is family@s e*istence & substinence, so tat by e*press provision of law, tey form part of te wage and wen furnised by te E' are deductible terefrom, since if tey are not so furnised, te laborer would spend and pay for tem just te same! 

Re.uire!ents #or Deucting alue o#  roof must be sown tat suc facilities are customarily furnised by te trade +e*! 5ompany policy or guideline sowing tat te meal & lodging are part of te salary.8 "! Te provision of deductible facilities must be voluntarily accepted in writing by te EE8 9! Dacilities must be carged at fair & reasonable value! +a-eza v 'L) 6 Te E' failed to meet any of  te re)uirements! Bore signicantly, te food & lodging or te electricity & water consumed by te EE were not facilities, but supplements! Kotel workers are re)uired to work di;erent sifts and are e*pected to be available at various odd ours, teir ready availability is a necessary matter in te operations of  respondent@s otel!



1ratuity ( 1iven freely or w/o recompense8 a gift8 someting voluntarily given in return for a favor or services8 a bounty8 a tip! ( gratuity pay is not intended to pay a worker for actual services rendered! Ht is a money benet given to te workers wose purpose is to reward EEs wo ave rendered satisfactory & e=cient service to te company!( Not mandatory &  not part of labor standard law ? A fair day’s wage for fair day’s labor.” – if  tere is no work performed by te EE, tere can be no wage or pay unless te laborer was able, willing and ready to work but was prevented by te mgt or was illegally locked out, suspended or dismissed!

Equal pay for equal work.” – EEs working in te >K, if tey are performing similar functions & responsibilities under similar working conditions, sould be paid under te principle of e)ual pay for e)ual work! nternational chool Alliance o* Educators v 

3uisum-ing/ H% ires as members of te faculty, $.foreign(ires and ". local(ires! Te scool grants foreign(ires salary of "CR more tan tat of local(ires due to a. te

dislocation factor, and b. limited tenure! %56 Hf  an E' accords EEs te same position & rank, te presumption is tat tese EEs perform e)ual work! Tere is no sowing tat foreign( ires perform "CR more e=ciently or e;ectively tan te local(ires! 7ot groups ave similar functions & responsibilities w/c tey perform under similar working conditions!  Te dislocation factor- and limited tenurecannot serve as valid bases for te distinction in salary rates, and are ade)uately compensated by certain benets accorded tem w/c are not enjoyed by local(ires +ousing, transpo, sipping, ta*es, ome leave allowance.! ?gricultural ork ork on te soil and its arvests

Lower rate +?gricultural EEs.

Hndustrial ork en te arvests are processed into nised product or transformed to anoter product Kiger rate +industrial EEs.

Agricultural Acti2ities >reparation of te soil, planting of  ramie stalks and transporting tem to te stripping seds, stripping te bers w/ te use of decorticating macines run by electricity, drying te wet bers, passing tem troug te bruser to cleanse tem of impurities and baling te ers for te market >lanting & arvesting sugar cane & oter cores incidental to ordinary farming operations  Tillage of te soil, raising of crops including discovery of plant pests and teir eradication by means of   insecticides Dispond business  farmands employed to cultivate te vegetable garden of a non(agricultural corp are not agricultural workers •

•

•

• •

Art 9) Tis title sall NOT a%%l' to: 7)
C ; @=N=@U@ A6E RATES Art 99) Te !ini!u! wage rates #or agricultural an non1agricultural EEs an wor/ers in eac an e2er' region o# te countr' sall be tose %rescribe b' te Regional Tri%artite ages an "roucti2it' Boars

9:

Statutor' @ini!u! age   – te lowest wage rate *ed by law tat an E' can pay is workers! 5ompensation w/c is less tan suc minimum rate is considered an underpayment tat violates te law! ( determined for eac region by te regional wage boards ( provided w/ margin to take care of  contingencies, suc as increase of prices of  commodities and increase in wants and to provide means for a desirable improvement in EE@s mode of living +? person@s needs increase as is means increase!. E,ects6 $! benets all wage earners by setting a Aoor below w/c teir pay cannot fall "! raises te standard of competition among E's, since it would protect te fair(minded E' from te competition of  te E' wo pays is workers a wage below subsistence8 9! is a prere) to te adoption of te %%%, w/c re)uires contributions from EEs temselves Abilit' to %a' i!!aterial ( E' cannot e*empt imself from liability to pay minimum wages because of poor nancial condition of te company ( Lack of funds is not a valid defense because te payment of minimum wage is a mandatory statutory obligation EEs not estopped to sue for di;erence in amount of wages ( te acceptance by an EE of te wages paid im w/o objection does not give rise to estoppel precluding im from suing for te di;erence bet te amt received and te amt e sould ave received pursuant to a valid minimum wage law E0e!%tions to te co2erage o# te Rule on !ini!u! wages $! Kouseold or domestic elpers, including family drivers and persons in te personal service of anoter8 "! Komeworkers engaged in needle(work8 9! orkers employed in any establisment duly registered w/ te National 5ottage Hndustries and #evt ?utority in accordance w/ '? 9:4G provided tat suc workers perform te work in teir respective omes8 :! orkers in any duly registered cooperative wen so recommended by te 7ureau of  5ooperative #evt and upon approval by te %ec of #
period of time as te %ec of Labor may prescribe! C! 7arangay Bicro 7usiness Enterprises +7B7E. +under '? 2$43/7B7E Law., provided tat all EEs covered under tis ?ct sall be entitled to te same benets given to any regular EE suc as social security and ealt care benets! 7B7Es are also e*empt from income ta*! B@BE – any business entity or enterprise engaged in te production, processing or manufacturing of products or commodities, including agro( processing, trading and services, wose total assets including tose arising from loans but e*clusive of te land on w/c te particular business entity@s o=ce, plant and e)uipment are situated, sall not be more tan >9B! +comprises no less tan 2GR of > E's. ! 'etail %ervice Establisments +by virtue of  '? 4"4/age 'ationali0ation ?ct. a! regularly employing not more tan $G workers8 and b! upon application w / and as determined by te 'egional 7oard in accordance w/ te ''s of te 5ommission! Hf not granted, EEs sall receive te approp compensation due tem ] $R interest per mont retroactive to te e;ectivity of te ?ct! 7urden of proving suc e*emption rests on te E'! 4! roductivity 7oard

Art 7) EL=@=NAT=ON BENE<=TS

%o

"RO>=B=T=ON A6A=NST OR D=@=NUT=ON O<

tat te rule against diminution of  supplements/benets may apply, it must be sown tat6 $! Te grant of te benet is founded on a policy or as ripened into a practice over a long period8 "! Te practice is consistent and deliberate8 9! Te practice is not due to error in te construction or application of a doubtful or di=cult )uestion of law8 and :! Te diminution or discontinuance is done unilaterally by te E'!
9C

#iscontinued by E' upon e;ectivity of  Binimum age Law! 5H'6  company practice Nonconributor' Retire!ent "lan 'estle P5 nc% v 'L) 6 Te fact tat te retirement plan is noncontributory, does not make it a nonissue in te 57? negotiations! Te EEs ave a vested rigt over te e*isting benets voluntarily granted to tem by teir E'! Te latter may not unilaterally witdraw, eliminate or diminis suc benets! @ontl' E!ergenc' Allowance  % 6iangco & 7% 6iangco v 5on% Leogardo 6 E's, sing operator and sbroker, discontinued paying te batillos +wo work by unloading te s from te vessels  dependent on arrival of te vessels, ence tey work only a few days a mont averaging : rs a day. a *ed montly emergency allowance +wic tey ad been paid as a matter of  practice/verbal agreement.  illegal! roductivity incentives!

•

Not establise %racticeK @ista/e in A%% o# Law 8lo-e +ac$ay v 'L)6 E' ad been computing te 59/day by 9G days! Upon e;ectivity of  age
•

57?s, are not w/in te proibition of ?rt $GG because, as products of bilateral contract, tey can only be eliminated or diminised bilaterally! at te law forbids is elimination/modication done unilaterally by te E'! age Orer Co!%liance – te giving of  across(te(board salary increases so as to rectify a salary distortion caused by compliance w/ a wage order cannot be said to ave ripened into a company practice! Pag0asa teel 2or$s v )A 6 To ripen into a

company practice tat is demandable as a matter of rigt, te giving of te increase sould not only be by reason of a strict legal +as age er diem allowance – a daily allowance given for eac day wen an EE is away from is ome base8 intended to cover teir cost of  lodging & subsistence wen on duty outside of teir permanent stationif te EE did not leave is permanent station and spent noting for meals & lodging outside tereof, ten e is not entitled to per diem as tere is noting to be reimbursed Bontly ration of gas given to o certain managerial EEs is not part of teir basic salary!  its temporary revocation does not constitute a diminution of te EE@s fringe benets! o  Te elimination of an e*isting benet in e*cange for an e)ual or better one does not violate ?rt $GG! Reclassication o# "ositionK "ro!otion from rank(and(le to supervisory ( o te position olders lose
& ' 4nion6 E' implemented a ob Evaluation program a;ecting all EEs! 'espondents were reclassied from rank(and( le to supervisory/managerial positions! 7ecause of tat, tey lost teir romotion – te advancement from one position to anoter wit an increase in duties &

9

responsibilities as autori0ed by law and usually accompanied by an increase in salary ContingentGConitional BenetsK Bonus ( ?rt $GG is n/a to a benet wose grant depends on te e*istence of certain conditions, so tat te benet is no demandable if tose preconditions are absent! 7onus – an amt granted & paid to an EE for is industry & loyalty w/c contributed to te success of te E'@s business and made possible te reali0ation of prots! Ht is an act of  generosity! ( it is not a demandable and enforceable oblig! 7UT_ Ht is so wen it is made a part of  te wage/salary! Hn suc a case, te latter would be a *ed amt and te former would be a contingent one dependent upon te reali0ation of prot


(

(

(

•

(

( (

te bonus, if te EE as served during te stipulated time, on te ground tat it was a promise of mere gratuity! Ser2ices Renere as Basis o# Bonus EEs wose ENT as been terminated may still demand paymt of service under company policy and of te bonuses! Te ' is not defeated by a release & )uitclaim  L8 +arcos v 'L) & nsular Li*e 6 Te fact tat an EE as signed a satisfaction receipt for is claims does not necessarily result in te waiver tereof! Te law does not consider as valid any agreement wereby a worker agrees to receive less compensation tan wat e is entitled to recover! ? deed of release or )uitclaim cannot bar an EE from demanding benets to w/c e is legally entitled! No "rot- No Bonus 6raders oyal an$ v 'L)/   Te matter of giving te EEs bonuses over & above teir lawful salaries & allowances is entirely dependent on te prots, if any, reali0ed by te bank from its operations during te past year! %ince te scal condition aving declined, te bank may not be forced to distribute bonuses w/c it can no longer a;ord to pay and, in e;ect, be penali0ed for its past generosity to its EEs! >roductivity Hncentives ( bonus tat comes from productivity gain, or improved output witout increasing input '? 24$6 EE@s sare is in te nature of  salary bonus proportionate to increases in current productivity over te average for te preceding 9 consecutive yrs Not gratuitous8 it is a benet claimable only on te basis of predened output level 5ontingent/conditional8 if tey are not given because te preconditions are absent, ?rt $GG is not violated e*cept peraps if tere is contractual commitment to te contrary!

"D H7: 7(T> @ONT> "A  ( adds $(mont pay to te usual $"(mont earnings! 7UT, does not cange te EE@s basic wage! Kence, E6 all rank(and(le EEs, regardless or salary rate!  managerial & supervisory EEs ( EI5E>TH or its e)uivalent- are not covered by te decree! +te intent of  te law was to grant addt@l income to EEs not already rcving te same not to all EEs but only to te unfortunate ones wo are not paid a $9tmont salary or wat amounts to it, by watever name called. its E)uivalent - – sall include Imas bonus, mid( year bonus, prot(saring payments and oter cas bonuses amounting to not less tan $/$"

94

of te basic salary! en an E' pays less tan $/$" of te EE@s basic salary, te E' sall pay te di;erence! ( ole P5 nc v Leogardo  sall not include cas & stock dividends, 5 re)uired by law! Neiter may year(end rewards for loyalty & service be considered in lieu of $9tB>

considering tat te E' pays tem a small *ed/guaranteed wage8 te greater part being composed of te sales/incentive commissions earned on actual sales closed by tem %ales commissions – are intimately related or directly proportional to te e*tent or energy of an EE@s endeavors8 paid upon te specic results acieved by a salesman(EE8 it is a percentage of te sales closed by a salesman & operates as an integral part of  suc salesman@s bsic pay!

 Hf te bonus was included in or considered as

the e, tere would be no need for a specic provision of suc bonus in te 57?! 7ut if te 57? did provide for a bonus in graduated amts depending on te lengt of service, for e*ample, te intention is clear tat te bonus provided in te 57? was meant to be in addition to te legal re)uirement of $9tB>!

$9tB> – deemed incorporated in te 57?, employment contract!   Te absence of an e*press provision obligating te E' to pay $9tB> to te EEs is immaterial $:t B> – basically a bonus, and  gratuitous8 ( mgt prerogative & cannot be forced upon te E'8 not legally demandable E0clusions in te Co!%utation o# 7( t @" $9tB> \ $/$" of te -asic salary of te EE w/in a calendar year V6 at does =-asic salary>   includeZ ?6 7asic salary sall include all renumerations or earnings paid by an E' to an EE for services rendered  Not included + *ringe -ene:ts" 5# C"C/Lay Dringe benets – all allowances & monetary benets w/c are not considered/integrated as part of te basic salary   Te items e*cluded by te decree may be included troug esta-lished practice or agreement  binding on te E' •

•

•

"! Hf tey are N
paid to medreps were e*cluded from te term basic salary- because tese were paid to tem as productivity bonuses-! Tey are generally tied to te productivity or capacity for revenue production of a corp8 suc bonuses closely resemble prot(saring payments and ave no clear direct or necessary relation to te amt of work actually done by eac indiv EE!  Te commissions pd by 7oie to its medreps could not ave been sales commissions! Bedreps are not salesmen8 tey do not e;ect any sale of  any article at all! Tey are EEs engaged in te promotion of parmaceutical products or med devices manufactured by teir E'! Tey promote suc products by visiting identied pysicians & inform suc pysicians orally/w/ te aid of brocures, of te e*istence & cem composition of te parma product! Te addt@s payments given to tem were not in fact commissions but rater in te nature of  prot(saring bonuses!

•

V6 ?re commissions included in te computationZ ?6 Ht depends! $! Hf te commissions may properly be considered part of te basic salary, tey sould be included in computing te $9 TKB> Ph uplicators nc v 'L)/   te sales

commission earned by te sales men constitute part of teir compensation,

1uaranteed wage/commission – EEs wose income is guaranteed by way of wages and/or commissions are entitled to a $9tB> based on teir earnings tat include commissions!  Ph Agricultural )ommercial & ndustrial

2or$ers 4nion v 'L)6 te bus drivers & conductors of respondent transic co! +allegedly paid on purely commission basis. are entitled to $9tB> on bot teir *ed & guaranteed wage and commission  in te case of a bus conductor paid on commission only as supported by is pay slips w/c indicated te varying amount of 

93

commissions e received eac trip included in $9 TKB>

not

$! tose wose time & performance is supervised by te E'8 piece(rate workers, esp wen tey work in company premises +soes, andicraft, garment. "! tose wose time & performance is unsupervised  by te E'! >akyaw & takay basis – commonly practiced in te agricultural industry +planting, arvesting per ectare of  land. >akyaw >iece(rate Bore aptly used 5ommon were te wen te job/work output may easily to be performed is in be counted or bulk/volumes w/c measured are di=cult to )uantify •

V6 Hs Teacers@ ay HncludedZ ?6 Jes! Ht is considered part of teir basic pay for te purposes of computing $9 tB> 1'6 >ayments for overload work w/in 3 rs form part of te basic wage, & terefore are to be included in te computation of $9tB>! is entitled to tis monetary benet in proportion to the length o* time unless he wor$ed during the year ! oterwise stipulated in te 57? Distresse E!%lo'er – e*empted from paying $9tB> upon prior  autori0ation from te %ec of  #
#i;erence of opinion in te computation of $9 tB> is a nonstri$ea-le issue !  a strike eld on tis ground is illegal% 6o2t E!%lo'ees – not covered by $9 tB> Sea#arers  – not covered by $9 tB>8 because tey are contractual, not regular EEs! Teir ENT is governed by teir 5ontract of  Enlistment w/c was approved by te >!

Art 77) "A@ENT B RESULTS 4"iecewor/5 Te Sec o# Labor sall regulate te %a'!ent o# wages b' results- incluing %a/'ao- %iecewor/ an oter noonti!e wor/- in orer to ensure te %a'!ent o#  #air & reasonable wage rates- %re#erabl' troug ti!e & !otion stuies or in consultation wG re%s o# wor/ers & ERMs orgs)

orkers paid by results – workers wose pay is calculated not on te basis of time spent on te job but of te )uantity & )uality or te kind of work tey turn out! +nontime work.! ( stress is placed on te unit of work produced or te )uantity tereof  ( a uniform amount is paid per unit accomplised Categories o# "iece1rate wor/ers A) As to %resence o# control

•

S>ayment by result is not determinative of EE(E' 'elsip! Ht is merely a metod of compensation and does not dene te essence of te relation! Basis o# Out%ut RateK "rocess to set te Stanar $! iece 'ate
"! Tose wo are paid output rates w/c are prescribed by te E' and are not yet approved by te #
F of pcs * rate per pc as determined by te E'! a!. Hf te resulting amt is   tan te statutory min daily rate in rel to te F of rs worked, te worker will rcv suc amt! b!. 7UT, if te amt is less tan te applicable legal rate, it is possible tat te rates per pc are not in accordance w/ te standards! Hn tat case, te E' is re)uired by law to pay te di;erence! Entitle!ent o# "iece1Rate or/ers to NSD an S=L a! Unsupervised – no olia' "a' ( sall not be less tan is average daily earnings for te last 4 actual working days immediately preceding te regular oliday! Provided however,  tat in no case sall te oliday pay be less tan te applicable statutory min wage rate Entitle!ent to 7( t@" 1'6 ># 3C$ e*empts from payment of $9 tB> E's of tose wo are paid a *ed amt for performing specic work, irrespective of time consumed in te perf tereof, e*cept were te workers are paid on  piece0 wor$ -asis  +tose wo are paid a standard amt for every pc/unit of work produced tat is more/less regularly replicated, w/o regard to te time spent in producing te same. in w/c case te E' sall grant te $9 tB> to suc EEs!  Te piece(rate worker sould ave rendered at least $ mont work/service during te calendar yr! Not Entitle to >"-ND- S=L- 7( t@" $! Dield personnel "! Unsupervised employees 9! Engaged on task/contract basis :! >urely commission basis C! >aid a *ed amt for performing work irrespective of te time consumed Not Entitle to OT "a'

$! "! 9! :!

>aid on piece(work >aid on takay >aid on pakyaw >aid on task basis i* their output rates are in accordance w/ te standards under %ec 3 'ule 4 7ook 9, or were suc rates ave been *ed by te %ec of Labor

Benets "a'able to "iece1Rate or/ers $! %tatutory minimum wage +B. "! Jearly service incentive leave of C days w/ pay +%HL. 9! Nigt sift di;erential +N#. :! Koliday pay +K>. C! Beal & rest periods +Beal/rest. ! remium pay +conditional. +>>. 3! $9tBont pay +$9t. 2! oter benets granted by law, by indiv/57? or company policy/practice +57?. BC 6uielines Su!!ar'   Te rate(per(pc to be paid to a worker sould be submitted to #
>roof of age payment – E' as burden of proof   Te H's re)uire every E' to keep a payroll! ?mong oter tings, it must sow te lengt of time to be paid, te pay rate, te amt actually paid, and so on! ?N# te EE sould sign te payroll! ER cannot %a' is wor/ers b' !eans o#: $! >romissory notes "! Poucers 9! 5oupons :! Tokens C! Tickets ! 5its 4! ?ny obj oter tan legal tender :G

Even wen e*pressly re)uested by te EE! 6R: "a'!ent b' legal tener : "a'!ent b' cec/ or !one' orer !a' be allowe i# te sa!e is: $! 5ustomary on te date of e;ectivity of te L58 "! Necessary because of special circs as determined by te %ec of Labor8 9! %tipulated in te 578 or :! ere te ; conditions are met a! Tere is a bank or oter facility for encasment w/in $km radius8 b! Te E', or any of is agents or reps, does not rcv any pecuniary benet directly/indirectly from te arrangement8 c! Te EEs are given reasonable time during banking rs to witdraw teir wages from te bank w/c time sall be considered as compensable ours worked if done during working rs8 and d! Te payment by ceck is w/ te written consent of te EEs concerned if tere is no 57? autori0ing te payment of wages by bank cecks! Art 7() T=@E O< "A@ENT

1'6 $! ?t least once every " weeks8 or "! Twice a mont at intervals not e*ceeding $ days! 6 $! Hn case of force majeure or oter circs beyond te E'@s control, payment must be made immediately after suc occurrence as ceased! "! Hf engaged to perform a task w/c cannot be completed in " weeks and in te absence of 57? or arbitration award6 a! >ayment sall be made at intervals not e*ceeding $ days, in proportion to te amt of work completed8 b! Tat nal settlement is made upon completion of work! Art 7F) "LACE O< "A@ENT 1'6 ?t or near te place of undertaking 6 $! en payment cannot be e;ected at or near te place of work by reason of  deterioration of peace & order conditions, or by reason of actual or impending emergencies caused by re, Aood or oter calamity rendering paymt tereat impossible8 "! en te E' provides for free transpo to te EEs back and fort8 and 9! Under any oter analogous circs! "roibition6 No E' sall pay is EEs in a bar, nigt or day club, drinking establisment, massage clinic, dance all or oter similar places or in places were games are played w/

stakes of money or tins representing money e*cept in te case of persons employed in suc places! Re.uisites #or "a'!ent tru Ban/s 4age Rationaliation Act5 $! Tere must be written permission of te majority of te EEs concerned in an establisment8 "! Te establisment must ave "C/more EEs8 and 9! Te establisment must be located w/in $ km radius to te bank Re.uisites o# "a'!ent tru AT@ $! Te ?TB sys of paymt is w/ te written consent of te EE concerned8 "! Te EEs are given reasonable time to witdraw teir wages from te bank facility w/c, if done during working rs, sall be considered as compensable rs worked8 9! Te sys sall allow te EE to rcv teir wage w/in te period & te amt prescribed under te L58 :! Tere is a bank/?TB facility w/in $km radius from te workplace8 C! Upon te re)uest of te concerned EE, te E' sall issue a record evidencing paymt of wages, benets & deductions for a particular pd8 ! Te ?TB sys of paymt sall neiter result in diminution of benets & privileges of  te EE nor sall te latter incur addt@l e*penses in te process8 and 4! Te E' sall assume full responsibility in case te wage protection provisions of law & regulations are not complied w/ under te arrangemt Art 7H) D=RECT "A@ENT O< A6ES 1'6 ages sall be paid directly to te workers to wom tey are due! 6 E*ceptions 7) "a'!ent troug anoter %erson a! Hn case of force majeure rendering suc payment impossible provided said person is under written autority given by te worker for te purpose8 b! en autori0ed under e*isting law, including payments for insurance premiums of te EE and union dues were te ' to ceck( o; as been recogni0ed by te E' in accordance w/ a 57? or autori0ed in writing by te indiv EEs concerned! ;) "a'!ent troug te eirs o# te wor/er ( in case te worker as died, E' may pay wages of te deceased worker to te eirs of te latter w/o te necessity of intestate proceedings!

:$

"roceure $. 5laimants sall e*ecute an a=davit attesting teir relsp to te deceased and te fact tat tey are is eirs, to te e*clusion of all oters +?=davit of Ne*t of Win.8 ". Hn case of a minor eir, a=davit sall be e*ecuted on is bealf by is natural guardian or ne*t of kin8 9. ?=davit sall be presented to te E' wo sall make paymt troug te %ec of Labor or is rep8 :. Te rep sall act as referee in dividing te amt paid among te eirs8 and C. >ayment of wages under tis ?rt sall absolve te E' of any furter liability w/ respect to te amt paid! () "a'!ent troug a #a!il' !e!ber o#  te wor/ers #a!il' ( were te E' is autori0ed in writing by te EE to pay is wages to a member of is family Su!!ar' o# Legal "roibitions on ages $. >ayment of wages in non(cas form8 ". >ayment of wages in nigt and day clubs, bars & oter similar places8 9. Non(diminution of wages8 and :. Non(interference by te E's in te EE@s disposition of teir wages! Su!!ar' o# at must be paid

en ere Kow

Rules on "a'!ent o# ages Legal Tender!  promissory notes, voucers, coupons, tokens, tickets, cits, or any oter obj oter tan legal tender
Art 78) CONTRACTOR OR SUBCONTRACTOR T'%es o# Contractors uner te Law 7) Job Contracting or Subcontracting – an arrangement wereby a principal agrees to put out or farm out wit a contractor or subcontractor te performance or completion of a specic job, work or service w/in a denite or predetermined period, regardless or weter suc job, work, or service is t be performed or completed w/in or outside te premises of te principal E0istence o# Trilateral Relationsi% (under tis legitimate contracting te ;  CONTRACTS e*ist6 a! 5ontract for specic job, work or service bet te principal & te contractor/subcontractor8 and b! 5ontract of ENT bet te contractor/subcontractor and its workers!

Kence, te "ART=ES involved are6 $! >rincipal8 "! 5ontractor/subcontractor8 and 9! 5ontractual workers Laws applicable between6 $! >rincipal & 5ontractor   5ivil 5ode & pertinent commercial laws "! 5ontractor & is EEs   Labor 5ode & special labor laws 9! >rincipal & contractor@s EEs  no EE(E' 'elationsip 7UT E'(EE 'elsip will e*ist bet te >rincipal & te orkers were te contracting arrangement is not legitimate, as in labor(only contracting Ele!ents o# =ne%enent Contractor Job Contracting $! Te sub/contractor carries on a distinct and independent  business and undertakes to perform te job on is own account and under is own responsibility, according to its own manner and metod and free from te control & direction of te principal in all matters connected w/ te performance of te work e*cept to te results tereof8 "! Te sub/contractor as su-stantial capital or investment in tool, e)uipment and macineries, work premises and oter materials necessary in te conduct of is business8 9! Te agreement  bet te principal and sub/contractor assures te contractual EEs entitlement to all labor & ealt standards, free e*ercise of te ' to self( org, security of tenure and social & welfare benets8 :! Bust be properly registered as suc in accordance w/ #< F$3(G"! +Te absence of registration only gives rise to te presumption tat te contractor is engaged in labor(only contracting a presumption tat can be refuted!. ;) Labor1onl' Contracting – an arrangement were te sub/contractor merely recruits, supplies or places workers to perform a job, work or service for a principal, and AN   of te ; ELE@ENTS is present6 a! Lack of substantial capital/investment AND performance of activities directly related to te principal@s business +conrming element.8 or b! Te contractor does not e*ercise te rigt of control over te performance of te contractual EE +conrming element.8 c! Te arrangement is merely to recruit, supply or place workers to perform a job, work, or service for a principal +Essential Element. L<5 \ Essential Element ] eiter or bot conrming element/s •

Labor(only contracting is wrong & proibited bco0 it is an attempt to evade te obligs of an EEr6 :"

a. To respect EE@s ' to unioni0e8 b. ' to ENT standards8 c. ' to security of tenure %ubstantial capital – capital stocks and subscribed capitali0ation in te case of corps, tools, e)uipment, implements, macineries and work premises, actually & directly used by te sub/contractor in te performance or completion of te job, work or service contracted out! ( te law does not re)uire bot substantial capital and investment in te form of tools, e)uipment, macineries, etc! 'igt to control – refers to te rigt reserved to te person for wom te service of te contractual workers are performed, to determine not only te end to be acieved, but also te manner & means to be used in reacing tat end nsular li*e v 'L)/  e*clusive servicing-

esp springing from a regulation issued by te Hnsurance 5ommission, and not from an intention by te alleged E', does not necessarily mean being under te control or ENT of te entity being served! Te relsip may still be classied as independent contractorsip because te element of control is absent! ( EEs may resign from teir jobs to become contractors to teir former E', but te latter sould cease controlling te means & metod of doing te work allegedly contracted, oterwise, te result is L<5! Su!!ar' o# "roibite Labor Contracting $! Labor(only contracting8 "! 5ontracting tat terminates te ENT of  regular EEs, or reduces teir work rs, or reduces/splits a bargaining unit, if suc contracting out is not done in 1D & not  justied by business e*igencies8 9! 5ontracting w/ a 5abo – person/s or labor group w/c, in te guise of a labor org, supplies workers to an E' w/ or w/o any monetary or oter consideration weter in te capacity of an agent of te E' or as an ostensible independent contractor8 :! 5ontracting w/ in(ouse agency8 C! 5ontracting because of a strike/lockout8 ! 5ontracting tat constitutes UL> under ?rt ":3!

 <7 5
L?7<'(
 Te law creates an E'(EE relsp for a limited purpose, i!e! to ensure tat te EEs are paid teir wages

E'.  Te statute creates an E'(EE relsp for a compreensive purpose, i!e! to prevent a circumvention of  labor laws  Te principal becomes solidarily liable w/ te contractor not only for unpaid wages but also for all te rigtful claims of  te EEs under te L5 ?N# ?N5HLL?'J L?%

 Te principal becomes solidarily liable w/ te contractor in te even te latter fails to pay te EEs wages and for violation of labor standard laws! Te liability, owever does not e*tend to te paymt of   backwages or separation pay of  EEs wo are illegally dismissed >ermissible >roibited by law >resence of   None substantial capital or investment Note6 Te principal sall be %arties – a principal +contractee. enters into a contract w/ a contractor, or if te principal is imself a contractor, e enters into contact w/ a sub(contractor! ? contracted job may be subcontracted, partly or wolly, unless proibited in te contract! "! %pecic job – te contract calls for te performance or completion of a specic  job, work or service8 9! >eriod – suc job, work or service is to be performed or completed w/in a denite or predetermined period8 and :! Location – te contracted job, work or service may be performed or completed inside or outside te premises of te principal

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?n independent contractor is one wo e*ercises6 $! Hndependent ENT8 "! 5ontracts to do a pc of work accdg to is own metods8 and 9! Hs not subj to control of E'  result  Te labor contractor is legit if6 $! Ke is a job contractor8 and "! Hs properly registered w/ #
case but an independent contractor in anoter!  )oca0cola ottlers Ph v 5ingpit/ Lipercon was adjudged to be a L<5 in a previous case +1uarin v Lipercon., for lacking te substantial capital! 7ut not so in te present case, were it as been able to establis its caracted as an independent contractor! ?side form iring its own EEs and paying te workers teir salaries, it also e*ercised supervision & control over tem, w/c is te most important aspect in determining E'(EE 'elsp! Art 7) "OST=N6 O< BOND ( ?n E' or indirect E' may re)uire te sub/contractor to furnis a bond e)ual to te cost of labor under contract, on condition tat te bond will answer for te wages due te EEs sould te sub/contractor, as te case may be fail to pay te same! ( ere te E' fails to re)uire te contractor to post a bond, te E' must answer for watever liabilities te contractor may ave incurred to is EEs! Tis is w/o prejudice to its seeking reimbursement from te contractor for watever amt it will ave to pay te EEs! Art 79) SOL=DAR L=AB=L=T   Te provision of e*isting laws to te contrary notwitstanding, every E' or indirect E' sall be eld responsible w/ is sub/contractor for any violation of any provision of te L5! Dor purposes of determining te e*tent of teir civil liability under tis 5, tey sall be considered as direct E's!

 Te e*istence of E'(EE 'elsp is a precondition to entitlement to labor standards & labor relatios 's!

E*tent of >rincipal@s Liability in Legitimate 5ontracting ( solidarily liable in te event of any violation of any provisions of te L5 $! Dor wages and money claims – if te sub/contractor fails to pay te wages of  is EEs in accdance w/ te L5, te E' sall be jointly & severally +solidarily. liable w/ is contractor to suc EEs to te e*tent of work performed under te contract, in te same manner & e*tent tat e is liable to EEs directly employed by im! Ke cannot escape tis liability even if e as paid te workers@ wage rate in accordance w/ te contract w/ te contractor! Te EEs are not privy to te contract! ?lso, te labor standard legislations are considered written in every contract! %imilarly, legislated wage increases are deemed amendments to te contract! Tus, E's cannot ide beind teir contracts in order to evade teir or teir contractor@s liability for noncompliance w/ te statutory min wage, w/o prejudice to is ' to recover watever amount e paid from te contractor! "! a. 'eimbursement – te joint & several liability of te contractor & te principal under ?rts $G, $G4 & $G2 of te L5 is mandated to assure compliance of te provisions including te statutory min wage! Te contractor is made liable by virtue of is status as te direct E'8 and te principal is made te indirect E' of  te contractor@s EEs for purposes of  paying te EEs teir wages sould te contractor fail to do so! ( were no E'(EE 'elsp e*ists bet te parties, as to reimbursement bet te principal & te contractor, te 'T5 as jurisdiction b. >ayment before 'eimbursement – but one may seek reimbursement only ?DTE' it as paid te EEs! c. Dor
'igts of 5ontractual EEs +EEs of a legitimate contractor. $! %afe & ealtful working conditions8 "! Labor standards suc as %HL, rest days, ay, oliday pay, $9 tB>, & separation pay8 9! %% & welfare benets8 :! %elf(orgs, 57 and peaceful concerted action8 and C! %ecurity of tenure! 5ertain conditions re)uired e*pressly stipulated in te ENT 5ontract $! %pecic description of te job, work or service to be performed by te contractual EE8 "! Te place of work and terms & conditions of ENT, uncluding a statement of te wage rate applicable to te indiv contractual EE8 and 9! Te term/duration of ENT, w/c sall be coe*tensive w/ te contract of te principal & contractor or w/ te specic pase for w/c te contractual EE is engaged, as te case may be!  Te sub/contractor sall inform te contractual EE of te foregoing terms & conditions on or before te $ st  day of is ENT! %ecurity of Tenure6 a! in cases of termination of ENT prior to te e*piration of te contract bet te principal & te sub/contractor, te ' of te contractual EE to separation pay or oter related benets sall be governed by applicable laws & jurisprudence on termination of ENT! b! ere te termination results from e*piration of contract bet te principal & te contractor, or from completion of te pase of te job for w/c te EE is engagednot entitled to separation pay!  owever, tis sall be w/o prejudice to completion bonuses or oter emoluments, incl retirement pay as may be provided by law/contract bet te principal & te contractor! %ecurity of tenure re)uires procedural due process for termination of ENT! No security of tenure for casual EEs! 'egistration of 5ontractors 'e)uirements6 $! %ubmission of annual reports a! %worn undertaiking tat te sss, Kome #evt Butual Dund, >ilKealt, EEs 5ompensation 5ommission +E55., and 7H' remittances "! Tey are subj to routine inspection by te #
1'6 Te absence of registration gives rise to te presumption tat te contractor is engaged in L<5,   7ut, if te contractor directly supervises te workers & imposes disciplinary action, e )ualies as a legit contractor despite nonregistration w/ #
5onditions6 $! Dormal declaration of insolvency or bankruptcy8 "! 1eneral judicial li)uidation proceedings of  te E'@s business8 and 9! Diling of claims by workers! Art 777) ATTORNEMS
5oncepts of ?tty@s Dees a!
E;ect of Nonregistration6 :C