Labor Standards Final Reviewer by Atty C a Azucena

Labor Law IFinals Reviewer Atty. C.A. Azucena PRELIMINARY TITLE Chapter I GENERAL PROVISIONS Article 1: NAME OF DECREE Article 2: DATE OF EFFECTIVITY 2. COMMENTS AND CASES 1. LABOR LEGISLATION; DEFINITIONS  Broadly divided into labor standards and labor relations  Labor standards law is that which sets out the minimum terms, conditions, and benefits of employment that employers must provide and comply with and to which employees are entitled to as a matter of right.  Labor relations law is that which defines the status, rights and duties, and the institutional mechanisms, that govern the individual and collective interactions of employers, employees or their representatives.  Labor is understood as physical toil, although it does not necessarily involve the application of skill. Skill, by dictionary definition, is the familiar knowledge of any art or science, united with readiness and dexterity in execution or performance or in the Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla 3B – 2006-2007 3. 4. application of the science or art to practical purposes.  Work is broader than labor as “work” covers all forms of physical or mental exertion, or both combined, for the attainment of some object other than recreation or amusement per se. LABOR LAW AND SOCIAL LEGISLATION  Social legislation includes laws that provide particular kinds of protection or benefits to society or segments thereof in furtherance of social justice. In that sense, labor laws are necessarily social legislation. SOCIAL JUSTICE AS THE AIM  The aim, reason, and justification for labor laws is social justice.  Section 3 of Article XIII says that “the State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all.”  This is because “without the improvement of economic conditions, there can be no real enhancement of the political rights of the people.” CONSTITUTIONAL RIGHTS AND MADNESS  The basic rights of workers guaranteed by the Constitution are: the rights to organize themselves, to conduct collective bargaining or negotiation with management, to engage in Page 1 of 103 Labor Law I Finals Reviewer 5. peaceful concerted activities, including to strike in accordance with law, to enjoy security of tenure, to work under humane conditions, to receive a living wage, to participate in policy and decision making processes affecting their rights and benefits as may be provided by law. 4.1.Balancing of Rights; the Constitutional Principle of Shared Responsibility  While labor is entitled to a just share in the fruits of production, the enterprise has an equally important right not only to reasonable returns in investment but also to expansion and growth. The Constitution commands the State to promote the principle of shared responsibility between employers and workers and the preferential use of voluntary modes of settling disputes, including conciliation, and to enforce their mutual compliance therewith to foster industrial peace.  Constitutional outlook suggests a balanced treatment. POLICE POWER AS THE BASIS  The right of every person to pursue a business, occupation or profession is subject to the paramount right of the government as a part of its police power to impose such Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla 3B – 2006-2007 Atty. C.A. Azucena 6. 7. 8. restrictions and regulations as the protection of the public may require. BIRTH OF THE LABOR CODE  Writing began under Blas Ople, Father of the Labor Code  The objective was not merely to consolidate the then existing pieces of social legislation, but also to reorient them to the needs of economic development and justice. PRINCIPLES UNDERLYING THE CODE  Must be both responsive and responsible to national development  Must substitute rationality for confrontation in times of national emergencies  Must be made expeditious without sacrificing due process  Manpower development and employment must be regarded as a major dimension of labor policy  Availability of a global labor market to qualified Filipinos  Must command adequate resources and acquire capable machinery for effective and sustained implementation  There should be popular participation in national policy making through what is now called tripartism SOME LABOR LAWS BEFORE THE PASSAGE OF THE CODE  Act 1874 or the Employer’s Liability Act Page 2 of 103 Labor Law I Finals Reviewer Act 2549 which prohibited payment of wages in non-cash form  RA 1054 which required emergency medical treatment for employees  CA 444 or the Eight Hour Labor Law  CA 103 which created the Court of Industrial Relations (pre-NLRC)  PD 21 which created the NLRC  RA 875 or the Industrial Peace Act/ Magna Carta of Labor  RA 946 Blue Sunday Law  RA 1052 or the Termination Pay Law SIGNIFICANCE OF FOREGOING DECISIONS  Where are labor statutes are based upon or patterned after statutes in foreign jurisdiction, the decisions of high courts in those jurisdictions… should receive the careful attention of the SC in the application of our own law. RELATED LAWS 10.1. The Civil Code  Labor relations not merely contractual, but must yield to the common good.  Prohibition against involuntary servitude (Art. 1703)  Also contains provisions regarding wages, househelpers and liabilities of employers. 10.2. The Revised Penal Code  Punishes the use of violence or threats by either employer or employee (Art. 289) Atty. C.A. Azucena 10.3.  9. 10. Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla 3B – 2006-2007 Special Laws SSS law, GSIS law, Agrarian Reform Law, 13th month Pay Law, etc. INTERNATIONAL ASPECT  On June 15, 1948, the Philippines became a member of the International Labor Organization (ILO), which is the UN specialized agency which seeks the promotion of social justice and internationally recognized human and labor rights.  The ILO formulates international labor standards in the form of Conventions and Recommendations setting minimum standards of basic labor rights.  An essential characteristic of ILO is tripartism, that is, it is composed not onl of government representatives but also of employers’ and workers’ organizations. 11.1. International Commitments  By being an ILO member, the country thereby subscribes t the fundamental principles on which the ILO is based. Also, as an ILO member, the Philippines imbibes the obligation of the ILO to further programs that will achieve ILO objectives. 11.2. ILO Core Conventions  The eight core conventions are as follows: Forced Labor Convention (1930); Freedom of Association and Protection of the Right to Organize Convention (1948); Freedom to  11. Page 3 of 103  The better understanding is that the basic policy is to balance or coordinate the rights and interests of both workers and the employers. make the rich richer and the poor poorer. on abolition of forced labor. Liberal Approach  The working man’s welfare should be the primordial and paramount consideration. INTERDEPENDENCE  It should not be deduced that the basic policy is to favor labor to prejudice capital. on abolition of child labor. Ratified ILO Conventions  As of the end of 2000. 11.Laborer’s Welfare. including significantly. the ILO adopted a Declaration on Fundamental Principles and Right at Work concerning an obligation of all ILO members to respect and promote the fundamental rights even if they have not ratified the conventions. Denise Dy. The plain reality is that both sectors need each other. Article 3: DECLARATION OF BASIC POLICY COMMENTS Jojo Baetiong. Minimum Age Convention (1973). Abolition of Forced Labor Convention (1957).one is inutile without the other. 2. Exception  In 1999.  The true task of a student of labor law is to examine how those laws hinder or help the attainment of the country’s socio-economic goals. and Worst Forms of Child Labor Convention (1999). LABOR LAWS AND SOCIAL-ECONOMIC GOALS  Labor laws are devices for social equity. the “core” conventions on freedom of association. 11.1.A. The policy is to extend the Decree’s applicability to a greater number of employees to enable Page 4 of 103 . Gel Baniqued. Discrimination (Employment and Occupation) Convention (1958). the Philippines has ratified thirty ILO Conventions. Article 4: CONSTRUCTION IN FAOVR OF LABOR COMMENTS AND CASES 1. depending on their provisions. Azucena Organize and Collective Bargaining Convention (1949). Giselle Remulla 3B – 2006-2007 1. The may. INTERPRETATION AND CONSTRUCTION 1.3. equal remuneration Convention (1951). and on nondiscrimination.4.  The value of labor laws is in their contribution to national growth in the context of social justice. Ratification Generally Needed. They are interdependent. C. Sheryl Harina.Labor Law I Finals Reviewer Atty.  A labor law expert asserts that the Philippines can claim with some pride that it belongs to the upper 25% of the ILO members on the basis of efforts taken to approximate labor standards. Elvira Castro. There is nothing dirty about profit per se – it is profit that creates jobs and improves the workers’ lot. enter the service. at a wage and under conditions agreeable to them. Article 5: RULES AND REGULATIONS Page 5 of 103 . the same as the right of an employer to purchase labor from any person whom it chooses.3.Reason for According Greater Protection to Employees  In the matter of employment bargaining. 2.1. with Jojo Baetiong. provided the transfer or dismissal is not abused but is done in good faith and is due to causes beyond control. Denise Dy. 2. or lay off personnel in order to minimize expenses and to insure the stability of the business. to full freedom in employing any person free to accept employment from him. 1. Giselle Remulla 3B – 2006-2007 Atty. the rule becomes a part of the contract of employment. in its essence.2. Elvira Castro. reduce. He has the right. even desperate.Right to ROI  The employer has the right to recover his investments and make profits. except in the exercise of police power. 2.Right to Transfer or Discharge Employees  The employer has the perfect right to transfer.  This is because there is a greater supply than demand for labor. Sheryl Harina.Rights to Prescribe Rules  Employers have the right to make reasonable rules and regulations for the government of their employees.Right to Select Employees  An employer has the right to select his employees and to decide when to engage them. and even to close the business. necessity. 2. under the law. and this. in consonance with the State’s avowed policy to give maximum aid and protection to labor. Also. Azucena knowledge of an established rule. and when employees. there is no doubt that the employer stands on higher footing than the employee.Labor Law I Finals Reviewer them to avail of the benefits under the law. except as restricted by valid statute and valid contract. Gel Baniqued.  State cannot interfere with the liberty to contract with respect to labor. MANAGEMENT RIGHTS  Management also has its own rights which are entitled to respect and enforcement in the interest of simple fair play.3. C.Concern for Lowly Worker  The Sc reaffirms its concern for the lowly worker who. 2.4.  The right of a laborer to sell his labor to such person as he may choose is. the need for employment comes from vital. often at his employer’s mercy. and this right has been consistently upheld. 1.A. must look up to the law for protection.2. the resulting rule or regulation is void. But when the issue. depending on the kind of issue involved. 1. then surely. The word “instrumentality” with respect to the state.  Government corporations created by special charter from Congress are subject to civil service rules. Denise Dy. Giselle Remulla 3B – 2006-2007 Atty. not a government-owned or controlled corporation. contemplates an authority to which the Jojo Baetiong. NHA 2. employment relationship is an essential element. Its employees are covered by civil service rules and regulations. Article 6: APPLICABILITY COMMENTS AND CASES 1.  Example: The National Parks Development Committee is an agency of the government. Page 6 of 103 . Elvira Castro. since they are civil service employees. C. is an indirect employer’s liability.  But if function is proprietary in nature. for instance.  For example. or by which a certain government act or function is performed. Sheryl Harina.1.PNOC-EDC.1. RULES AND REGULATIONS TO IMPLEMENT THE CODE 1. 3.  The Labor Code applies with or without employment relationships between the disputants. Gel Baniqued. NON-APPLICABILITY TO GOVERNMENT AGENCIES  The terms governmental “agency” or “instrumentality” are synonymous in the sense that either of them is a means by which a government acts. Azucena state delegates government power for the performance of a state function.A. its employees are governed by the Labor Code. FTI. while those incorporated under the Corporation Code are covered by the Labor code. APPLICABILITY TO GOVERNMENT CORPORATIONS  The ruling now is that the Labor Code applies to a corporation incorporated under the Corporation Code.Labor Law I Finals Reviewer COMMENTS AND CASES 1. when one speaks of employment benefits.When Invalid  If promulgated in excess of its rule making power. there is no employeremployee relationship and yet the pertinent Labor Code provisions find application. APPLICABILITY WITHOUT EMPLOYER-EMPLOYEE RELATIONSHIP  The Labor Code may apply even if the parties are not employers and employees of each other. thus: “The State shall. Gel Baniqued.2. who are landless. COMMENTS AND CASES 6. RETENTION LIMITS  … in no case shall retention by the landowner exceed 5 hectares. LEGISLATIVE HISTORY  There is an acute imbalance in the distribution of land among our people.Livestock.A. CA) 6. to receive a just share of the fruits thereof. 6. SHARE TENANCY ABOLISHED  RA 3844 abolished and outlawed share tenancy and put in its stead the agricultural leasehold system. 1. a 1 goal sought to be achieved by the government program of agrarian reform.1. by law. 4. Poultry and Swine Raising Lands Amended by R. CONSTITUTIONAL PROVISIONS COMPENSATION SCHEME  Title to all expropriated properties shall be transferred to the State only upon full payment of compensation of the respective owners. in the case of other farmworkers. 1988 Jojo Baetiong.Labor Law I Finals Reviewer Atty.Residential Subdivisions  An agricultural leasehold cannot be established on land which has ceased to be devoted to cultivation or farming because of its conversion to a residential subdivision. 5.  The phasing out of share tenancy was the first step towards the ultimate status of owner-cultivator. June 10. (Gonzales vs. Elvira Castro.  RA 6389. Sheryl Harina. undertake an agrarian reform program founded on the right of farmers and regular farmworkers. the Constitution of 1987 adopted a whole article containing provisions for the uplift of the common people. C. declared share tenancy as contrary to law and public policy. Giselle Remulla 3B – 2006-2007 Page 7 of 103 . amending RA 3844. to own directly or collectively the land they till or. No.  Homestead Act has been enacted for the welfare and protection of the poor. LANDS NOT COVERED 6.Lands Obtained Through Homestead Patent  The Philippine Constitution respects the superiority of the homesteader’s rights over the rights of the tenants.” 2. 6657. Azucena Chapter II EMANCIPATION OF TENANTS1 Article 7: STATEMENT OF OBJECTIVES Article 8: TRANFER OF LANDS TO TENTN-WORKERS Article 9: DETERMINATION OF LAND VALUE Article 10: CONDITION OF OWNERSHIP Article 11: IMPMENTING AGENCY 3. Hence. Denise Dy. The law gives a needy citizen a piece of land where he may build a modest house for himself and his family and plant what is necessary for subsistence and for the satisfaction of life’s other needs.A.3. BOOK ONE PRE-EMPLOYMENT Article 12: STATEMENT OF OBJECTIVES COMMENTS 1. Any of the acts mentioned in the basic rule in Article 13 (b) will constitute recruitment and placement even if only one prospective worker is involved. Elvira Castro. at 10. Giselle Remulla 3B – 2006-2007 employment relations that assure protection for the rights of all concerned parties. Panis)  It must be shown that the accused gave the complainant the distinct impression that she had the power or the ability to send the complainant abroad for work. The advancement of workers’ welfare by providing for just and humane working conditions and terms of employment. C. WHAT CONSTITUTES RECRUITMENT AND PLACEMENT  The number of persons is not an essential ingredient of the act of recruitment and placement of workers. Goce) Page 8 of 103 . (People vs. (People vs.  The unemployment problem is exacerbated by population growth that appears unchecked.Labor Law I Finals Reviewer  Atty. The promotion of gainful employment opportunities and the optimization of the development and utilization of the country’s manpower resources. meaning more than three million jobless. there is not recruitment activity and conviction for illegal recruitment has no basis. 2. c. THE DOLE: ITS RESPONSIBILITY  The Administrative Code mandates the DOLE to assume primary responsibility for: a. The maintenance of industrial peace by promoting harmonious. such that the latter was convinced to part with her money to be so employed. Title I RECRUITMENT AND PLACEMENT OF WORKERS Chapter I GENERAL PROVISIONS Article 13: DEFINITIONS COMMENTS ARTICLE 13 (B) CONSTRUED. Where such an act or representation is not proven. the Philippines’ unemployment rate is the highest. Denise Dy. Sheryl Harina.2%. b. THE UNEMPLOYMENT PROBLEM  In a list of 18 countries. equitable and Jojo Baetiong. Azucena There is simply no reason to include livestock and poultry lands in the coverage of agrarian reform. Gel Baniqued.A. Gel Baniqued. Construction contractors if authorized to operate by DOLE and the Construction Industry Authority g. Private employment agencies d. 1982) 1.The PESO  Public Employment Service Office  Intended to serve as employment service and information center in its area of operation. Jojo Baetiong. Denise Dy. Private recruitment entities c. Giselle Remulla 3B – 2006-2007 Also holds special services for the public such as employment bazaars. and refers them for probable hiring. the DOLE carries out programs for local and overseas employment. C. LOCAL EMPLOYMENT  The Bureau of Employment Services has been replaced by the Bureau of Local Employment (BLE) through EO 797 (May 1. Sheryl Harina. It regularly obtains a list of job vacancies from employers.A. the following entities are authorized to recruit and place workers for local or overseas employment: a. Other persons or entities as may be authorized by the DOLE Secretary. public employment offices b. publicizes them. Members of the diplomatic corps although hirings done by them have to be processed through the POEA h. Azucena “By themselves. can hardly qualify as recruitment activities. Elvira Castro. airline tickets and foreign visa for another individual. etc.Labor Law I Finals Reviewer  Atty. Article 17: OVERSEAS EMPLOYMENT DEVELOPMENT BOARD COMMENTS AND CASES Page 9 of 103 . CA) Article 14: EMPLOYMENT PROMOTION COMMENTS EMPLOYMENT PROMOTION  To pursue its responsibility to promote employment opportunities.1. Shipping or manning agents or representatives e. without more. Article 15: BUREAU OF EMPLOYMENT SERVICES COMMENTS 1. invites and evaluates applicants. POEA f.  Article 16: PRIVATE RECRUITMENT COMMENTS AUTHORIZED ENTITIES  Based on the Rules Implementing the Code.” (Darvin vs. procuring a passport. declarations or resolutions relating to the protection of migrant workers. at any time.1.”  “… The existence of overseas employment program rests solely on the assurance that the dignity and fundamental human rights and Jojo Baetiong. OVERSEAS EMPLOYMENT.  PD 1412: revived private sector participation in the recruitment and placement of Filipino migrant workers. Canada. C. Japan and Saudi Arabia eventuall followed suit.  EO 797: Enacted to streamline operations in the overseas employment program. 8042  “…The State does not promote overseas employment as a means to sustain economic growth and achieve national development. and monitoring of the Page 10 of 103 . may. 4.  Notwithstanding this… the government. No. Elvira Castro. be compromised or violated.A.A. terminate or impose a ban on the deployment of migrant workers. Australia. paved the way for stricter government regulation of the overseas employment industry. at any time. Giselle Remulla 3B – 2006-2007 Atty. o It is taking positive.” 3.Labor Law I Finals Reviewer 1. implementation. THE POEA: OVERVIEW OF ITS FUNCTIONS AND POWERS  Among the principal functions of the POEA are the formulation. o It is a signatory to multilateral conventions. Azucena freedoms of the Filipino citizen shall not.  EO 247: Reorganization Act of the POEA  RA 8042: Migrant Workers and Overseas Filipinos Act of 1995 3. Gel Baniqued. The 200 Filipinos that initially went there were followed by many more until they formed about 70% of Hawaii’s plantation labor. A BRIEF HISTORY  Labor migration in the Philippines began in the 1900s when Hawaii experienced severe manpower shortage. LEGISLATIVE BACKGROUND OF OVERSEAS EMPLOYMENT  Act 2486: first law passed by Philippine Congress relating to overseas employment  PD 442: Labor code. in pursuit of national interest or when public welfare so requires. Denise Dy. OVERSEAS EMPLOYMENT POLICY 3.  Other countries such as the US. Sheryl Harina.Selective Deployment  RA 8042 requires certain guarantee of protection for the overseas worker before they are deployed in countries that meet some criteria: o It has existing labor and social laws protecting the rights of migrant workers. 2. o It has concluded a bilateral agreement or arrangement with the government protecting the rights of Filipino migrant workers.R. concrete measures to protect the rights of migrant workers.2. Labor Law I Finals Reviewer overseas employment of the Filipino workers and the protection of their rights to fair and equitable employment practices.  Overseas Filipino Worker (OFW) is understood as a Filipino worker who is to be engaged, is engaged, or has been engaged in a remunerated activity in a country of which he/she is not a legal resident.  OFWs are classified by DOLE as either land-based or sea-based. 4.1.POEA Rules (2002) 5. REGULATORY FNCTION OF POEA  POEA regulates the private sector participation in the recruitment and overseas placement of workers through its licensing ad registration system. 6. ADJUDICATORY FUNCTIONS OF POEA  Before the passage of RA 8042, POEA had original and exclusive jurisdiction to hear and decide the ff cases: a. Recruitment violation and related cases consisting of all preemployment cases which are administrative in character, involving or arising out of recruitment laws, rules and regulations, including money claims therefrom or violations of the conditions for issuance of license to recruit workers. b. Employer-emploee relations cases consisting of all claims arising out of an employer-employee relationship or Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla 3B – 2006-2007 Atty. C.A. Azucena b virtue of any law or contract involving Filipino workers in overseas employment. c. Disciplinary action cases consisting of all complaints against a contract worker for breach of discipline. 6.1.Jurisdiction Transferred to NLRC  RA 8042 transferred to the NLRC the jurisdiction over employer-employee relations cases.  Section 10 of the said law provides that Labor Arbiters shall have the exclusive and original jurisdiction to hear and decide claims arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino workers for overseas employment including claims for actual, moral, exemplary and other forms of damages.  RA 8042 not only transferred from POEA to NLRC the jurisdiction over money claims of OFWs, it even expanded the scope of such money claim. When the jurisdiction was still with the POEA, the jurisdiction covered only money claims involving Filipino workers for overseas employment. Now the NLRC jurisdiction is over money claims Page 11 of 103 Labor Law I Finals Reviewer involving Filipino workers for overseas deployment.  RA 8042 allows for claims for money or damages sustained during the period of deployment or before departure for abroad. 6.2.Jurisdiction Retained With POEA  POEA retains the jurisdiction to decide all cases which are administrative in character and disciplinary action cases. 6.3.Compromise Agreement  RA 8042 allows also resolution by compromise. 6.4.Mandatory Principle  Non-compliance with the periods provided for under the law will subject the responsible officials to penalties such as withholding of salaries until compliance, suspension, or dismissal from service. 7. EMPLOYER-EMPLOYEE RELATIONS CASES: TERMINATION OF EMPLOYMENT 7.1.Contractual Employees  Sea farers are contractual employees. (Millares and Lagda vs. NLRC) 7.2.Premature Termination of Contract  Where the workers’ employment contract is terminated before its agreed termination date, and the Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla 3B – 2006-2007 Atty. C.A. Azucena termination is not shown to be based on lawful or valid grounds, the employer will be ordered to pay the workers their salaries corresponding to the unexpired portion of their employment contract. (Tierra Construction vs. NLRC) 7.3.Pretermination Under R.A. No. 8042; July 15, 1995 Onward  The date of the employment termination is material. If it occurred on or after July 15, 1995, the law to apply is RA 8042.  Under Section 10, a worker dismissed from overseas employment without just, valid or authorized cause as defined by law or contract, is entitled to “a full reimbursement of his placement fee with interest at 12% per annum, plus his salary for the unexpired portion of his employment contract or for 3 months for every year of the unexpired term, whichever is less.” 8. EMPLOYER-EMPLOYEE RELATIONS CASES: MONEY CLAIMS; EMPLOYER’S NATIONALITY IMMATERIAL  Statutes and regulations do not limit the coverage to non-Filipino employers. Filipinos working overseas share the same risks and burdens whether their employers be Filipino or foreign. Page 12 of 103 Labor Law I Finals Reviewer 8.1.Death and Other Benefits, Basis of Compensation  The standard contract for employment for Filipino seamen allows the payment of death benefit pension, funeral benefit, and burial gratuity for the private respondent.  These claims arose from the responsibility of the foreign employer together with the local agency for the safety of the employee during his repatriation and until his arrival in this country, i.e. the point of hire. (InterOrient Maritime Enterprises vs. NLRC) 8.2.Illustrative Case: Death Benefit Under the Standard Contract  In order to evade liability for death benefit under the standard contract, it must be sufficiently shown that the deaths of the seamen were caused by their own willful and deliberate act. In this case, the evidence does not substantially prove that the seamen contracted tetanus as a result of the unsanitary surgical procedures they performed on themselves. Hence, the death benefits under the employment contract must be paid. (NFD International Manning Agents vs. NLRC) 8.3.Overseas Compensation Benefits in Dollars  While it is true that RA 529 makes it unlawful to require payment of domestic obligations in foreign currency, this particular statute is not applicable in the case at bar. The fixing of the Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla 3B – 2006-2007 Atty. C.A. Azucena award in dollars was based on the parties’ employment contract, stipulating that wages and benefits in dollars, since private respondent was engaged as an overseas seaman on board petitioner’s foreign vessel. (Philippine International Shipping Corp. vs. NLRC) 9. DISCIPLINARY ACTION CASES  The POEA may motu propio undertake a disciplinary action against a worker for breach of discipline. It shall also establish a system of watching and blacklisting OCWs. 9.1.Grounds for Disciplinary Action a. Commission of a felony punishable by Philippine laws or laws of host country; b. Drug addiction or possession or trafficking of prohibited drugs; c. Desertion or abandonment; d. Gambling; e. Initiating or joining a strike, where prohibited; f. Creating trouble at the work site; g. Embezzlement of company funds or other properties; h. Theft or robbery; i. Prostitution; j. Vandalism; k. Gunrunning or possession of deadly weapons; Page 13 of 103 it is only an administrative agency. Sheryl Harina. Elvira Castro. but are items claimed as natural consequences of his dismissal (which he denominates as “damages. 10. overtime pay or separation pay. But this adjudicatory function of the POEA has since been moved to the NLRC by RA 8042. SEAMEN’S EMPLOYMENT CONTRACTS AND THE INTERNATIONAL TRANSPORT FEDERATION (ITF)  Wallem Shipping vs. 2.1. No Jurisdiction Over Torts  Intention must be to seek and claim protection under the Labor Code and not the Civil Code. Also excepted are “name hirees” or those individual workers who are able to secure contracts for overseas employment on their own efforts and representations without the assistance or participation of any agency. Denise Dy. Gel Baniqued. 79. Giselle Remulla 3B – 2006-2007   Direct hiring of Filipino workers by a foreign employer is not allowed except direct hiring by members of he diplomatic corps and others mentioned in this article. NSB NOW POEA  EO 797 abolished the NSB and transferred its function to the POEA. Ministry of Labor: Seamen who were dismissed because they demanded that they be paid the worldwide rate. OUTSIDE POEA JURISDICTION  The POEA has no jurisdiction to hear and decide a claim for enforcement of a foreign judgment. did not commit serious misconduct as Page 14 of 103 . Such a claim must be brought before the regular courts. Article 18: BAN ON DIRECT-HIRING Article 19: OFFICE OF EMIGRANT AFFAIRS COMMENTS Jojo Baetiong.A. Unjust refusal to depart for a worksite after all documents have been prepared. 10. Article 20: NATIONAL SEAMEN BOARD COMMENTS AND CASES 1. the items demanded are not labor benefits such as wages. instead of the lower Far East rate as provided in their contracts of employment. This is because the POEA is not a court. C. m. The Office of Emigrant Affairs has been abolished and its pertinent functions were transferred to the Commission on Filipinos Overseas (CFO) by Batasang Pambansa Blg. Azucena l. ARTICLE 20 CONSTRUED. Violations of the law and sacred practices of the host country and unjustified breach of the employment contract.”) POEA has no jurisdiction. In the case at bar.Labor Law I Finals Reviewer Atty. Hence. c. They were only exercising their rights.Labor Law I Finals Reviewer to warrant their dismissal. They are not collective bargaining agreements or immutable contracts which the parties cannot improve upon or modify in the course of the agreed peril of time. its application is controlled by equitable considerations. Elvira Castro. provided the whole employment package should be more beneficial to the worker than the minimum. public policy.A. Courts should never apply the doctrine of laches earlier than the expiration of time limited for the commencement of actions at law. Guaranteed wages for regular working hours and overtime pay b. MINIMUM EMPLOYMENT CONDITIONS a.  “Filipino seamen are admittedly as competent and reliable as seamen from any other country in the world. They are entitled to government protection when they ask for fair and decent treatment by their employers and when they exercise their right to petition for improved terms of employment. Article 21: FOREIGN SERVICE ROLE AND PARTICIPATION Page 15 of 103 . Just and authorized causes for termination of contract taking into consideration the customs and norms of the host country. recovery therefore cannot be barred by laches. dismissal was illegal. Gel Baniqued. NLRC) 5. unless such subsequent agreement is approved by the POEA. The question of laches is addressed to the sound discretion of the court and Jojo Baetiong. C. Giselle Remulla 3B – 2006-2007 Atty. 6. otherwise. 4.” (Vir-jen Shipping vs. and that the same not be contrary to law. Denise Dy.  “Where the claim was filed within the three-year statutory period. there would not be so many of them in the vessels sailing in every ocean and sea on this globe. Also. or offsetting benefit. or offsetting benefit. d.” (Imperial Victory Shipping vs. INVALID SIDE AGREEMENT  An agreement that diminishes the employee’s [ay and benefits as contained in a POEA-approved contract is void. NLRC) 3. each case is to be determined according to its particular circumstances. Free transportation to and from the worksite. Azucena since it is an equitable doctrine. Sheryl Harina. It cannot be worked to defeat justice or perpetrate fraud or injustice. DELAY IN FILING CLAIM  There is no absolute rule as to what constitute laches. the standard forms embody the basic minimums which must be incorporated as parts of the employment contract. FREEDOM TO STIPULATE  Parties are allowed to stipulate other terms and conditions and other benefits not provided under these minimum requirements. Free food and accommodation. and morals. especially when they feel that these are substandard or are capable of improvement according to internationally accepted rules. including his or her remains and personal effects.  Funded with contributions from the workers themselves and the fees and charges imposed by the POEA and BLE. Gel Baniqued. belongs to the principal or the agency that recruited or deployed the worker. 2. PROTECTION AND ASSISTANCE BY GOVERNMENT AGENCIES  RA 8042 assigns four government agencies to promote the welfare and protect the rights of migrant workers and.Labor Law I Finals Reviewer Atty. POEA. THE RPM CENTER  Re-Placement and Monitoring Center  Serves as a promotion house for local employment of these returning workers and to tap their skills for national development. of all overseas Filipinos: DFA. the POEA shall notify the OWWA to advance the repatriation cost with recourse to the agency or principal.A. the principal or agency may recover the cost Jojo Baetiong. THE OWWA  Overseas Workers Welfare Administration  Intended to provide social and welfare services. C. Sheryl Harina. Denise Dy. REPATRIATION OF WORKERS  The primary responsibility to repatriate a worker. Azucena COMMENTS  1. If the principal of agency does not comply with this obligation. Article 22: MANDATORY REMITTANCE OF FOREIGN EXCHANGE EARNINGS COMMENTS REMMITTANCE Article 23: COMPOSITION OF THE BOARDS COMMENTS 1. legal assistance. 4. Giselle Remulla 3B – 2006-2007 of repatriation from the worker after return to the country. COMPOSITION OF THE POEA Article 24: BOARDS TO ISSUE RULES AND COLLECT FEES Chapter II REGULATIONS OF RECRUITMENT AND PLACEMENT ACTIVITIES Article 25: PRIVATE SECTOR PARTICIPATION IN THE RECRUITMENT AND PLACEMENT OF WORKERS COMMENTS AND CASES Page 16 of 103 . placement assistance. 3. and OWWA.  If the termination is due solely to the fault of the worker. and remittance services to OFWs. including insurance coverage. as far as practicable. DOLE. Elvira Castro. Elvira Castro. Article 30: REGISTRATION FEES Article 31: BONDS   COMMENTS AND CASES The POEA possesses the power to enforce liability under cash or surety bonds. C. or secluded places. Sheryl Harina. POEA.POEA Circular No. Article 27: CITIZENSHIP REQUIREMENT Article 28: CAPITALIZATION  COMMENTS The required capitalization.1. an official or employee of DOLE. Article 26: TRAVEL AGENCIES PROHIBITED TO RECRUIT  COMMENTS The POEA rules also disqualify persons with derogatory records such as those convicted for illegal recruitment or other crimes involving moral turpitude. (Finman General Assurance vs. Innocencio) Article 32: FEES TO BE PAID BY WORKERS Jojo Baetiong. Atty.A. Azucena Article 29: NON-TRANSFERABILITY OF LICENSE OR AUTHORITY COMMENTS PLACE OF RECRUITMENT  Licensees or holders of authority or their dulyauthorized representatives may. according to POEA rules.  Under existing regulations.  Recruitment of workers for overseas employment cannot be lawfully undertaken on a house-to-house basis. however. undertake recruitment and placement activities only at their authorized official address. in residences. cannot be used as a basis for the imposition of administrative sanctions. Gel Baniqued. These are means of ensuring prompt and effective recourse against such companies when held liable for applicants’ and workers’ claims. 11 (1983) Unenforceable  This circular has not yet been published or filed with the National Administrative Register. DFA and other government agencies directly involved in the implementation of RA 8042 or any of their relatives within the fourth civil degree. OWWA. VALIDITY OF POEA REGULATIONS  Valid under the principle of subordinate legislation 1. hence. they may be allowed to conduct provincial recruitment only upon written authority from the POEA. as a rule. Denise Dy.Labor Law I Finals Reviewer 1. is a minimum of two million pesos in case of single proprietorship or partnership and a minimum paid-up capital of the same amount for a corporation. Giselle Remulla 3B – 2006-2007 Page 17 of 103 . OWWA membership fee. NBI/ Police/ Barangay clearance. It is also a deterrant to loan sharks who lend money at usurious interests. it is not necessary that the worker was actually induced or did quit the employment.Labor Law I Finals Reviewer COMMENTS AND CASES 1. c. Giselle Remulla 3B – 2006-2007 Page 18 of 103 . g. the principal shall be liable to pay for the ff: a.  In Article 34(d). f.  Article 33: REPORTS ON EMPLOYMENT STATUS Article 34: PROHIBITED PRACTICES COMMENTS AND CASES PROHBITED PRACTICES  Article 34(a) prohibits the charging or accepting of fees greater than that allowed by regulations.  Article 34(b) includes the act of furnishing fake employment documents to a worker. and the act of publishing false notice or information in relation to recruitment or employment. Inoculation. b. if necessary. REFUND FEES  POEA has the power to order the refund of illegally collected fees. and d. Sheryl Harina. Passport.  The abovementioned placement and documentation costs are the only authorized payments that may be collected from a hired worker. Elvira Castro. c. airfare. exclusive of documentation costs. Trade test. Medical Examination fees. 2. e. Authentication. Atty. Denise Dy. Gel Baniqued. visa fee. when required. shall be imposed on and be paid by the worker without prior approval by the POEA. Azucena Such fees shall be collected from the hired worker only after he has obtained employment through the facilities of the recruitment agency.A. SUSPENSION OR CANCELLATION OF LICENSE Jojo Baetiong. h. Birth Certificate. manner or purpose. Medicare. C. b. CHARGEABLE FEES  Unless otherwise provided. No other charges in whatever form. These documentation costs shall include expenses for the ff: a. d.  A land-based agency may charge and collect from its hired workers a placement fee in an amount equivalent to one month salary. Article 35: SUSPENSION AND/OR CANCELLATION OF LICENSE OR AUTHORITY COMMENTS AND CASES 1. POEA processing fee. Denise Dy. 34 are not just grounds for suspension or cancellation of license or authority. for all claims filed by recruited workers which may arise in connection with the implementation of the service agreements or employment contracts. C. Gel Baniqued. as the manning agent in the Philippines. Azucena  Contract contained a provision empowering the agency to sue and be sued jointly and solidarily with the foreign principal for any of the violations of the recruitment agreement and the contracts of employment. The acts prohibited under Art. SUABILITY OF A FOREIGN CORPORATION WHICH HIRES FILIPINO WORKERS  A foreign corporation which.1. Balatongan) 3. NLRC) 3. etc.A. 1. Page 19 of 103 . through unlicensed agents.1. Elvira Castro.Proper Party  A sister in the Philippines of a maltreated Filipino domestic helper in Abu Dhabi is a proper party to file a complaint.Labor Law I Finals Reviewer  The grounds for imposition of administrative sanctions include engaging in acts of misrepresentation for the purpose of securing a license or renewal thereof. Sheryl Harina.2. petitioner.  Even if the recruitment agency and the principal had already severed their agency agreement at the time the worker was injuredm the recruitment agency may still be sued for violation of the employment contract. if no notice of the agency agreement’s termination was given to the employee.Concurrent Jurisdiction to Suspend or Cancel a License  The SC has affirmed the concurrent jurisdiction of the DOLE Secretary and the POEA Administrator to suspend or cancel a license. nevertheless. SOLIDARY LIABILITY ASSUMED BY RECRUITMENT AGENT Jojo Baetiong.3. 4.Contract by Principal  It has been held that even if it was the petitioner’s principal which entered into a contract with the private respondent. 2. (Royal Crown Inernationale vs. PERSONS LIABLE.  The responsibilities of the recruitment agency and the principal to the worker extends up to and until the expiration of the employment contracts of the employees recruited and employed pursuant to the said employment agreement. DURATION OF LIABILITY  A recruitment agency is solidarily liable for the unpaid salaries of a worker it recruited for employment with a foreign principal. They likewise constitute illegal recruitment under RA 8042. 3. These contractual undertakings constitute the legal basis for private agencies being liable jointly and severally with its principal. Giselle Remulla 3B – 2006-2007 Atty.Required Undertaking by Agent 3. (Seagull Maritime Corp vs. recruits workers in the country may be sued in and found liable by Philippine courts. is jointly and solidarily responsible with its principal. inspect the premises. 39 of this Code. when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage and shall be penalized in accordance with Art. paraphernalia. at any time. Azucena As stated in the Code: (a) Any recruitment activities. require it to submit reports regularly on prescribed forms. Chapter III – Miscellaneous Provisions Art. enterprise or scheme. Sheryl Harina.A. Art. 34 of this Code. Elvira Castro. 37 – Visitorial Power The Secretary of Labor or his duly authorized representatives may. DEREGULATION AND PHASE OUT  RA 8042 envisions a phase-out of POEA’s regulatory function so that the migration of workers will become strictly a matter between the worker and his employer. The DOLE or any law enforcement officer may initiate complaints under this Article. Denise Dy. books of accounts and records of any person or entity covered by this Title. and act on any violations of this Title. 39 hereof. 38 – ILLEGAL RECRUITMENT2 2 Amended by Republic Act 8042 or The Migrant Workers and Overseas Filipinos Act of 1995 Jojo Baetiong. C. establishments Page 20 of 103 . Giselle Remulla 3B – 2006-2007 Atty. (b) Illegal Recruitment. continue to remain unresolved. to be undertaken by non-licensees or nonholders of authority shall be deemed illegal and punishable under Art.Labor Law I Finals Reviewer 5. (c) The Secretary of Labor and Employment or his duly authorized representatives shall have the power to cause the arrest and detention of such non-licensee or non-holder of authority if after investigation it is determined that his activities constitute danger to national security and public order or will lead to further exploitation of job-seekers. This projected deregulation has stirred some controversies which. including prohibited practices enumerated under Art. Gel Baniqued. The Minister shall order the search of the office or premises and seizure of documents. Art. 36 – Regulatory Power The Secretary of Labor shall have the power to restrict and regulate the recruitment and placement activities of all agencies within the coverage of this Title and is hereby authorized to issue orders and promulgate rules and regulations to carry out the objectives and implement the provision of this Title. to this day. Illegal Recruitment is deemed committed in large scale if committed against three (3) or more persons individually or as a group. defined under the first paragraph hereof. Illegal Recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring and/or confederating with one another in carrying out any unlawful of illegal transaction. properties and other implements used in illegal recruitment activities and the closure of companies. testimony. e. LICENSEE OR HOLDER OF AUTHORITY: a. Azucena schedule of allowable fees prescribed by the DOLE Secretary. whether for profit or not. WHETHER A NON-LICENSEE. contracting. Denise Dy. information or document or commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code. Provided. offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. under RA 8042. the list of ACTS CONSIDERED AS ILLEGAL RECRUITMENT has also been EXPANDED as found in SECTION 6. or to make a worker pay any amount greater than that actually received by him as a loan or advance. f. b. that any such non-licensee or non-holder who. when undertaken by a non-licensee or non-holder of authority as contemplated under the Labor Code.A. Sheryl Harina.) To furnish of publish any false notice or information or document in relation to recruitment or employment.) To engage in the recruitment or placement of workers in jobs Page 21 of 103 . c. promising or advertising for employment abroad. C.) To change or accept directly or indirectly any amount greater than that specified in the Jojo Baetiong. d. in any manner. NON-HOLDER.  Now. the abovementioned article has been amended to also include LICENSED or AUTHORIZED entities. It shall likewise include the following acts whether committed by any person. or procuring workers and includes referring contract services. Giselle Remulla 3B – 2006-2007 Atty.) To give any false notice. transporting. hiring. Elvira Castro. Gel Baniqued. enlisting. utilizing.Labor Law I Finals Reviewer and entities found to be engaged in the recruitment of workers for overseas employment without having been licensed or authorized to do so.) To induce or attempt to induce a worker already employed to quit his employment in order to offer him another unless the transfer is designed to liberate a worker from oppressive terms and conditions of employment. RA 8042: Definition: xxx Illegal Recruitment shall mean any act of canvassing.) To influence or attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency. ) For an officer or agent of a recruitment or placement agency to become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly Jojo Baetiong.A. l. separation from jobs. employment contracts approved and verified by the DOLE from the time of the actual signing thereof by the parties up to and including the period of the expiration of the same without the approval of the DOLE.) To obstruct or attempt to obstruct inspection by the DOLE Secretary or by his duly authorized representative. Denise Dy.Labor Law I Finals Reviewer Atty. g.) To fail to submit reports on the status of employment.) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations other than those authorized under the provisions of the Labor Code and its IRR’s.) Failure to actually deploy without valid reason as determined by the DOLE. h. remittance of forex earnings. Illegal Recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage. departures and such other information as may be required by the DOLE Secretary. Gel Baniqued.) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment. It is deemed committed in large scale if committed against three (3) or more persons individually or as a group. C. j. Azucena harmful to public health or morality or to the dignity of the Republic of the Philippines. Giselle Remulla 3B – 2006-2007 or indirectly in the management of a travel agency. in cases where the deployment does not actually take place without the worker’s fault. Sheryl Harina. Page 22 of 103 . placement vacancies. Elvira Castro. m.) To substitute or alter to the prejudice of the worker. Illegal Recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring and/or confederating with one another. i. k. Sheryl Harina. UNLESS. 1987 Constitution) only a judge may issue a warrant of arrest or a search warrant . Sec. C. it is shown that such employees ACTIVELY AND CONSCIOUSLY PARTICIPATED in the illegal recruitment LACK OF RECEIPTS: will not defeat the purpose of criminal prosecution AS LONG AS THE WITNESSES CAN POSITIVELY SHOW THROUGH THEIR RESPECTIVE TESTIMONIES that the accused was the one involved in the prohibited recruitment. March 14.the Secretary of Labor is not a judge hence is no longer granted the power to issues said warrants. PLAIN VIEW. OR DIRECTION of their business General Rule: Employees who have no control. Elvira Castro. Authorities must now undergo judicial process . WARRANTLESS SEARCHES: INCIDENTAL to lawful arrest. Denise Dy. Section 5 of the ROC may still apply to illegal recruiters when they fall under the circumstances enumerated therein. upon compliance with the procedure as provided for by law namely through a warrant of arrest issued by a judge of an RTC where a criminal information was filed after preliminary investigation. III. G.Exception: Deportation or Illegal and Undesirable Aliens Cases—the President or the Commissioner of Immigration may order arrested following a final order of deportation for the purpose of deportation SUBJECT TO ARREST: Illegal Recruiters are still subject to arrest.Labor Law I Finals Reviewer       Atty. with INDIVIDUAL’S CONSENT CLOSURE ORDER: DOLE Secretary or his duly authorized representative still has power or authority to issue and order closure of illegal recruitment establishes. and Accessories. No. also RULES ON WARRANTLESS ARRESTS under Rule 113.A. credible testimonies suffice ECONOMIC SABOTAGE: IR committed by syndicate and IR committed in large scale. MANAGEMENT. Giselle Remulla 3B – 2006-2007   Page 23 of 103 . Issuance after an ex parte preliminary examination to determine whether the activities of a non-licensee - Persons Liable: Principals. Achacoso and Marquez. 1990 Jojo Baetiong. Azucena under the Constitution (Art. 38 (C) DEEMED UNCONSTITUTIONAL see Salazar v. for Juridical Persons: the officers HAVING CONTROL. do not manage nor direct the business may not be held liable. each is an independent and separate category that can stand on their own and need not coincide or concur within the same case ESTAFA: CONVICTION for Illegal Recruitment is not a bar for filing suit against such person for ESTAFA under the RPC as long as the requisites for said felony are present THE POWER TO ISSUE SEARCH AND ARREST WARRANTS AS FOUND IN ART.R. 81510. Accomplices. 2. this being an ADMINISTRATIVE and REGULATORY action. Gel Baniqued. A. or entity responsible for the violation. Who may file such Motion.000 nor more than P50.00) Amended by RA 8042.000. conviction shall cause and carry the automatic revocation of the license or authority and all the permits and privileges granted to such person or entity under this Title. Provision for Legal Assistance. Implementation of Closure Order.000 nor more than P100. Elvira Castro. in addition to the penalties herein prescribed. suffer the penalty of imprisonment of not 3 Atty. Motion to Lift CO. association. partnership. be deported without further proceedings. RA 8042 provides: Any person found guilty of IR shall suffer the penalty of IMPRISONMENT of NOT LESS THAN SIX (6) YEARS AND ONE (1) DAY BUT NOT MORE THA TWELVE (12) YEARS and A FINE OF NOT LESS THAN TWO HUNDRED THOUSAND PESOS (P200. at the discretion of the court. C. Institution of Criminal Action. Appeal and Re-padlocking of Office Art. (D) If the offender is a corporation. (B) Any licensee or holder of authority found violating or causing another to violate any provision of this Title or its implementing rules and regulations shall upon conviction thereof. Section 7 Jojo Baetiong. and the forfeiture of the cash and surety bonds in favor of the Overseas Employment Board or the National Seamen Board. partnership. both of which are authorized to use the same exclusively to promote their objectives. upon conviction thereof.000) shall be imposed if illegal recruitment constitutes economic sabotage as defined herein. and if such officer is an alien.000. these cover the POEA’s Anti-Illegal Recruitment Programs. 14 – 27.Labor Law I Finals Reviewer  constitute a danger to national security and public order or will lead to further exploitation of job seekers PROCEDURE FOR CLOSURE: Rules Secs. the penalty shall be imposed upon the officer or officers of the corporation. 39 . (C) Any person who is neither a licensee nor a holder of authority under this Title found violating any provision thereof or its IRR’S shall. Giselle Remulla 3B – 2006-2007 Page 24 of 103 . Issuance of Closure Order. (E) In every case. as the case may be. Report on CO. Grounds for Lifting or Reopening.000 or both such imprisonment and fine. at the discretion of the court. Gel Baniqued.PENALTIES3 (A) The penalty of life imprisonment and a fine of One Hundred Thousand Pesos (P100. or entity.00) NOR MORE THAN FIVE HUNDRED THOUSAND PESOS (P500. Denise Dy. Sheryl Harina. Azucena less than four years nor more than eight years or a fine not less than P20.  Section 7. Complaints Desk. or both such imprisonment and fine. he shall. association.000. suffer the penalty of imprisonment of not less than two years nor more than five years or a fine not less than P10. Surveillance. Gel Baniqued.Labor Law I Finals Reviewer The penalty of LIFE IMPRISONMENT and a FINE NOT LESS THAN FIVE HUNDRED THOUSAND PESOS (P500. able and willing at the time of the application to perform the services for which the alien is desired. Sheryl Harina.A.00) shall be imposed if IR CONSTITUTES ECONOMIC SABOTAGE Provided however. Denise Dy. C. file information within 48 hours from the date of receipt of case records if preliminary investigation conducted by judge and prima facie case is established PRESCRIPTIVE PERIODS (Sec. RA 8042): Criminal Action arising from IR shall be filed with the REGIONAL TRIAL COURT of the province or city WHERE THE OFFENDED PARTY ACTUALLY RESIDES AT THE TIME OF THE COMMISSION OF THE OFFENSE MANDATORY PERIODS for Resolution of IR cases (Sec.000. the alien shall not transfer to another job or change his employer without prior approval from the Secretary of DOLE (b) Any non-resident alien who shall take up employment in violation of provision of this Title Page 25 of 103 . 9. 11.000. 41 – Prohibition against transfer of employment (a) After the issuance of the employment permit. 40 – EMPLOYMENT PERMIT OF NON-RESIDENT ALIENS Any alien seeking admission to the Philippines for employment purposes and any domestic or foreign employer who desires to engage an alien for employment in the Philippines shall obtain an employment permit from the DOLE. Giselle Remulla 3B – 2006-2007 Atty. file information within 24 hours from termination of investigation. Azucena TITLE II – EMPLOYMENT OF NON-RESIDENT ALIENS Art. RA 8042): General IR: five (5) years.00) NOR MORE THAN ONE MILLION PESOS (P1.000. The employment permit may be issued to a nonresident alien or to the applicant employer after a determination of non-availability of a person in the Philippines who is competent. Elvira Castro. IR involving Economic Sabotage: twenty (20) years Jojo Baetiong. RA 8042): terminate within 30 days from date of filing: preliminary investigation. That the MAXIMUM PENALTY shall be imposed if the PERSON ILLEGALLY RECRUITED is LESS THAN 18 YEARS OF AGE or committed by a non-licensee or non-holder of authority. said employment permit may be issued upon recommendation of the government agency charged with the supervision of said registered enterprise. Art. 12. For an enterprise registered in preferred areas of investments.    VENUE (Sec. or. Book 7: Title 1: Penal Provisions and Liabilities. they need an ALIEN EMPLOYMENY REGISTRATION CARD (AERC) NATIONALIZED INDUSTRIES and the ANTI-DUMMY LAW (C. instead. Special Retirees Resident Visa (SRRV).) All foreign nationals seeking admission to the Philippines for the purpose of employment. or individuals whether public or private.) Non-Indo Chinese Refugees who are asylum seekers and given refugee status by the UN High Commissioner on Refugees (UNHCR) of the DOJ under the DOJ Department Order no. financing companies. In addition. di nag-ma-match numbers e. law provides and subjects reservation of ownership and control of such corporations to the 60% requirement. series 1976: provides instances when aliens may be allowed to engage in employment within nationalized industries: a. supervisory. no.    RESIDENT ALIENS: NOT required to have employment permits. Gel Baniqued.Labor Law I Finals Reviewer and its IRR’s shall be punished in accordance with Arts. i. 12. 5. public utility. 4.) where the DOJ Secretary specifically authorizes the employment of foreign technical personnel. natural resources.A.) Resident foreign Nationals seeking employment in the Philippines (see D. who secure the services of foreign professional to practice their professions in the Philippines under reciprocity and international agreements. Title 2: Prescription. organizations. no.) Missionaries or religious workers who intend to engage in gainful employment. 2. Treaty Trades Visa. 49. b.e.O. Giselle Remulla 3B – 2006-2007 Atty.) Holders of Special Investors Resident Visa (SIRV). 1998.289 (Liable Officers of Juridical Person). the alien worker shall be subject to deportation after service of his sentence. Sheryl Harina. 3. or Special NonImmigration Visa. SERIES 2001: Omnibus Guidelines for the Issuance of Employment Permits to Foreign Nationals. 21-02 which suspends “until further notice” the requirement for Resident Foreign Nationals to secure AEP) Page 26 of 103 . 6. Azucena  DEPARTMENT ORDER no. who occupy any advisory. Denise Dy. however. C. 2894 and 290 of the Labor Code. 108 as amended by PD715) – Foreigners may not be employed in certain “nationalized” industries.) Agencies. 288 (Penalties) .A. or technical position in any establishment. the following are required to apply for an Alien Employment Permit (AEP): 1. 290: Offenses: 3 years Jojo Baetiong.) where the aliens are elected members of the Board of Directors or governing body of corporations or associations in proportion to their allowable participation in the capital of such entities 4 Re-check Codal. media and advertising requires 100% Filipino ownership and management (Consti) DOJ OPINION 143. Elvira Castro. regardless of whether or not the renewal is granted before or after the expiration of the previous permit. Gel Baniqued. . c. Sheryl Harina. Validity of AEP is for ONE YEAR unless the employment contract.RENEWAL OF AEP: application must be filed at least 15 days before its expiration. 42 – Submission of List Any employer employing non-resident foreign nationals on the effective date of this Code. foreign and local addresses.EFFECTIVITY OF RENEWAL: one day after the expiration of previous permit. and their legitimate spouses desiring to work in the Philippines.Labor Law I Finals Reviewer   Atty. and 4. GENERAL RULE: PERMITS VALID ONLY FOR THE POSITION AND EMPLOYER FOR WHICH THEY WERE ISSUED. shall submit a list of such nationals to the Secretary of Labor within thirty (30) days after such date indicating their names. Giselle Remulla 3B – 2006-2007 Page 27 of 103 .) All members of the diplomatic services and foreign government officials accredited by the Philippine Government. but have only voting rights in the corporation.O. b. consultancy services. able and willing to do the job for which the services of the applicant is desired.A. Jojo Baetiong. 2. Denise Dy. EXEMPTS the following from AEP requirements: 1.) Officers and staff of the international organizations of which the Philippine government is a cooperating member.G. The Secretary of Labor shall then determine if they are entitled to an employment permit.R. C.Understudy Program is no longer required for the issuance of AEP .) Assessment of the DOLE Secretary that the employment of the Foreign Art. 3. 12-01 further.) Compliance by the applicant employer or the foreign national with the substantive and documentary requirements. Elvira Castro. .) Foreign nationals elected as members of the Governing Board who do not occupy any other position. provides for a longer period. .) All foreign nationals granted exemption by special laws and all other laws that may be promulgated by Congress  Basis for issuing AEP: a. citizenship. nature of employment and status of stay in the country.) Determination of the DOLE Secretary that there is no Filipino national who is competent. except in cases of holders of MULTIPLE POSITIONS IN ONE CORPORATION D. Azucena national will redound to national benefit. or other modes of engagement or term of office for elective officers. Jojo Baetiong.A. Elvira Castro.) An Apprenticeable Occupation means any trade.) An Apprentice is a worker who is covered by a written apprenticeship agreement with an individual employer or any entities recognized under this Chapter. being direct participants in and immediate beneficiaries of a trained and skilled workforce.Labor Law I Finals Reviewer BOOK TWO HUMAN RESOURCES DEVELOPMENT TITLE I: MANPOWER DEVELOPMENT PROGRAM CHAPTER 1 NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION Articles 43 – 56.) Apprenticeship – means any practical training on the job supplemented by related theoretical instruction. particularly private enterprises. pertaining to National Manpower and Youth Council has been replaced and absorbed by the TESDA (Technical Education and Skills Development Authority) created under RA7796 which was approved on August 25. Azucena Private Sector Participation – The State shall encourage the active participation of various concerned sectors. 7796. 2994. 7796) d. form of employment or occupation which requires more than three (3) months of practical training on the job supplemented by related theoretical instruction. Sheryl Harina. Art. high quality and efficient technical education and skills development in support of the development of high quality Filipino middle-level manpower responsive to and in accordance with Philippine development goals and priorities. accessible. Giselle Remulla 3B – 2006-2007 Atty.) Apprenticeship Agreement is an employment contract wherein the employer binds himself to train the apprentice and the apprentice in turn accepts the terms of training.A. 59 – Qualifications of an Apprentice Page 28 of 103 .A. 58 – Definition of Terms As used in this Title: a. Gel Baniqued. TITLE II – TRAINING AND EMPLOYMENT OF SPECIAL WORKERS Chapter 1: APPRENTICES Art. 57 – Statement of Objectives Art. (see R. C. see Appendix II-1 of Azucena’s Labor Book For the complete copy of the Implementing Rules for R. of Azucena’s Labor Book Declaration of Policy: It is the declared policy of the State to provide relevant. see Appendix II-1. Denise Dy. b. c.1. For the complete copy of Republic Act 7796: The TESDA Act of 1994. in providing technical education and skills development opportunities. after which it shall submit a list of apprenticeable occupations. Art. Denise Dy.Responsibility for Theoretical Instruction Page 29 of 103 . 1995 . an apprenticeship is not included in the enumeration. private respondent’s assertion that he was hired not as an apprentice but as a delivery boy deserves credence. although the said law recognizes certain exceptions. since the apprenticeship agreement between petitioner and private respondent has no force and effect in the absence of a valid apprenticeship program duly approved by the DOLE.Sponsoring of Apprenticeship Program Art. the DOLE is required to undertake the review of trades. a person shall: (a) Be at least fourteen (14) years of age. it’s 15 years) (b) Possess vocational aptitude and capacity for appropriate tests. Giselle Remulla 3B – 2006-2007 Atty. and jobs in all sectors of the economy to determine the apprenticeability. no. 61 – Contents of Apprenticeship Agreements  Apprenticeship need DOLE’s prior approval.R. 1989 – DOLE Policy on Apprenticeship. Azucena Art. Capili (G. Jojo Baetiong. March 9. now under R. it’s 15.  Department Order no. or Apprentice becomes regular employee .It is mandated that apprenticeship agreements entered into by an employer and an apprentice shall be entered only in accordance with the apprenticeship program duly approved by the Minister of Labor and Employment. Art. Sheryl Harina. 7610 there is an explicit prohibition on employment of children below 15 years of age. 62 – Signing of Apprenticeship Agreement Art. 69 . 63 – Venue of Apprenticeship Programs Art . 114337) September 29. 68 .A.Nitto Enterprises v. 67 . but under the IRR.Exhaustion of Administrative Remedies Art. Gel Baniqued. hence. occupation.  The apprenticeable age under this Article is 14.64 . to learn the ropes of a skilled job. 60 – Employment of Apprentices  Apprenticeship is the arrangement and the period when an upcoming worker undergoes hands-on training. Trade and industry associations may recommend to the Secretary of Labor appropriate educational requirements for different occupations.A.Labor Law I Finals Reviewer To qualify as an apprentice. NLRC and R. Elvira Castro. 66 . C. 8. It is usually the point of entry to the world of work. 65 -Investigation of Violation of Apprenticeship Agreement Art.Appeal to the Secretary of Labor Art. more or less formal. and (c) Possess the ability to comprehend and follow oral and written instructions. by virtue of which. (but under the IRR.Aptitude Testing of Applicants Art. Art. C. Book III of the IRR of the Labor Code was promulgated by the Secretary of Labor and Employment only for the purpose of administering and enforcing the provisions of the Labor Code on conditions of employment. where there is a written agreement between them under which the former agree to work for the latter in exchange for the privilege to study free of charge. . 70 . The case does not deal with a labor dispute on conditions of employment between an alleged employer and employee… reliance of petitioner on the IRR is misplaced. et a. 71 . Giselle Remulla 3B – 2006-2007 Atty. etc… Rule X is merely a guide to the enforcement of the substantive law on Jojo Baetiong. 1992 . Azucena labor. Rule X of Book III provides guidelines on the matter by which the powers of the Labor Secretary shall be exercised. on the other. 75 – Learnership Agreement Page 30 of 103 . Art.Apprentices without Compensation  Implementing Rules (Section X. and c. Sheryl Harina. Elvira Castro. colleges or universities. Rule X. in relation to Art. including such facilities as may be reasonable and necessary to finish their chosen courses under such agreement. 74 – When Learners may be hired Learners may be hired when: a. Gel Baniqued.) no experienced workers are available.A. on what records should be kept or maintained.Section 14. Particularly.Deductibility of Training Costs Art. 73 – Definition Learners are persons hired as trainees in semi-skilled and other industrial occupations which are nonapprenticeable and which may be learned through practical training on the job in a relatively short period of time which shall not exceed three (3) months. no. An IRR on labor cannot be used by an employer as a shield to avoid liability under the substantive provisions of the Civil Code.Filamer Christian Institue v. Hon. Exceptions Art.Voluntary Organization of Apprenticeship Programs. Chapter II – LEARNERS Art. Intermediate Appellate Court. 72: There is no employer-employee relationship between students on one hand and schools. (G. 75112) August 17.) the employment does not create unfair competition in terms of labor costs or impair or lower working standards. Denise Dy. b. 72 .) the employment of learners is necessary to prevent curtailment of opportunities. provided the students are given real opportunities.Labor Law I Finals Reviewer Art. Rule 14) provide.R. Art. Sheryl Harina. and d.  Learnership v. industrial occupations that require training for less than 3 months .job is non-apprenticeable because its practical skills can be learned in 3 (not 6) months . Gel Baniqued. training period exceeds 3 months .) a commitment to employ the learners if they so desire.no commitment to hire an apprentice even after completion of period .prior DOLE approval required for hiring apprentices Learner is not an apprentice.training in highly-skilled job. C. or his duly authorized representatives. but an apprentice is considered a learner.) the names and addresses of the learners.minimum period is 6 months .Labor Law I Finals Reviewer Any employer desiring to employ learners shall enter into a learnership agreement with them. Elvira Castro. b.training in semi-skilled job. All learners who have been allowed or suffered to work during the first two (2) months shall be deemed regular employees if training is terminated by the employer before the end of the stipulated period through no fault of the learner. Art.) the wages or salary rates of the learners which shall begin at not less than seventy-five (75%) percent of the applicable legal minimum wage. 76 – Learners in Piecework Learners employed in piecework or incentive-rate jobs during the training period shall be paid in full for the work done.) the duration of the learnership period. which shall not exceed three (3) months. job found in highlytechnical industry.A. Giselle Remulla 3B – 2006-2007 Page 31 of 103 . Apprenticeship: BOTH: Training periods for jobs requiring skills that can be acquired through actual work experience. both learner and apprentice may be paid wages twenty-five (25%) percent lower than the applicable legal minimum wage Learnership . which agreement shall include: a. The learnership agreement shall be subject to inspection by the Secretary of Labor.no need for prior approval from DOLE in terms of hiring Apprenticeship . c. Atty. Azucena Any violation of this Chapter or its IRR’s shall be subject to the general penalty clause provided for in this Code.commitment to hire a learner after the period . Denise Dy. as regular employees upon completion of the learnership. 77 – Penalty Clause Chapter III – HANDICAPPED WORKERS Jojo Baetiong. The employment agreement shall be subject to inspection by the Secretary of Labor or his duly authorized representatives. which agreement shall include: a. C. Sheryl Harina.A.) the rate to be paid the handicapped workers to be employed which shall be not less than seventy-five (75%) percent of the applicable legal minimum wage. 82 – Coverage of Title 1  Employees in all establishments and undertakings whether for profit or not BUT NOT TO govt employees.) the duration of the employment period. Denise Dy. Art.) the work to be performed by the handicapped workers. and d. field personnel Page 32 of 103 . 81 – Eligibility for Apprenticeship Subject to the appropriate provisions of this Code. Giselle Remulla 3B – 2006-2007 Atty. handicapped workers may be hired as apprentices or learners if their handicap is not such as to effectively impede the performance of job operations in the particular occupations for which they are hired.Republic Act no.Labor Law I Finals Reviewer Art. 7277.) it does not create unfair competition in labor costs or impair or lower working standards.  The MAGNA CART FOR DISABLED PERSONS. Art. and b. 1992 – insures equal opportunities for disabled persons and prohibits discrimination against them Book 3 Conditions of Employment Title I Working Conditions and Rest Periods Chapter 1 HOURS OF WORK Art. 80 – Employment Agreement Any employer who employs handicapped workers shall enter into an employment agreement with them. March 24. c. or physical or mental deficiency or injury. Jojo Baetiong. b.) their employment is necessary to prevent curtailment of employment opportunities. Elvira Castro. Gel Baniqued. and to other officers or members of the managerial staff]. Azucena Art. 78 – Definition Handicapped workers are those whose earning capacity is impaired by age.) the names and addresses of the handicapped workers to be employed. 79 – When Employable Handicapped workers may be employed when: a. managerial employees [those whose primary duty consists of the management of the establishment in which they are employed or of a dept or subdivision thereof. vouchers. accdg to his own discretion and judgment. even unregistered association may be deemed an employer LC defines an employer as any person who acts in the interest of an employer in/directly. dismissal and recall of workers so long as the they are exercised in good faith for the advancement of the employer’s interest and not for the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements Excluded employees Page 33 of 103 . C. power of dismissal 4. not by contract Elements of employment relationship (4-fold test) 1.Labor Law I Finals Reviewer  [refer to non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty]. persons in the personal service of another. Giselle Remulla 3B – 2006-2007 Atty. processes to be followed. workers who are paid by results Employer-employee must exist. Elvira Castro. all aspects of employment. working methods. work assignments. existence is determined by law. employer’s power to control the employee with respect to the means and methods by which the work is to be accomplished aka control test evidence of employment: id.A. Sheryl Harina. organization charts pakiao workers are considered employees as long as the employer exercises control over the means by which such workers are to perform their work (Zamudio vs NLRC) Jojo Baetiong. selection and engagement of the employee 2. payrolls. Gel Baniqued. Azucena  mere fact that an entity is a labor union does not mean that it cannot be considered an employer of the persons who work for it. memorandum. including hiring. tools to be used. the law does not require an employer to be registered in order to be considered as an employer (Orlando Farm Growers vs NLRC) No employment relationship  job contracting or independent contractor Employer is free to regulate. place and manner of work. Denise Dy. SSS registration. time. payment of wages 3. appointment letters. domestic helpers. members of the family who are dependent on him for support. supervision of workers. considered as working time if waiting is an integral part of his work or if the employee is required or engaged by an employer to wait  Working while eating  not compensable if completely freed from duites even though he remains in the workplace Jojo Baetiong. where such activities are controlled or required by the employer and are pursued necessarily and primarily for the employer’s benefit  Whether waiting time constitutes working time depends on the circumstances of each case  whether it is spent predominantly for the employer’s benefit or for the emmployee’s. domestic helpers 6. outside or field sales personnel 4. 83 – Normal Hours of Work  8-hour law  prescribes the minimum Art. all of the time spent in such travel is working time travel away from home  travel that keeps an employee away from home overnight. “within reach through cellphone or other contact device”  not compensable Travel from home to work  not worktime EXCEPT when employee receives an emergency call outside of his regular working hours and is required to travel to his regular place of business or some other work site.Labor Law I Finals Reviewer 1. workers paid by result Atty. Denise Dy. Azucena    Art. Elvira Castro. it is voluntary. worktime attendance at lectures. and the employee does not perform productive work during such attendance time spent in grievence meetings considered worktime regular full-time teachers are entitled to salary and emergency cost-of-living allowance during semestral breaks (UPang Faculty Union vs UPANG) a laborer need not leave the premises of the workplace in order that his rest period shall not be counted. managerial employees or staff 3. Giselle Remulla 3B – 2006-2007       Working while sleeping  may be considered working if it is subject to interruption or takes place under conditions substantially less desirable than would likely to exist at employee’s home “on call”  compensable. meetings. training programs and other similar activities not considered worktime if it is outside employee’s regular working hours. govt employees governed by CSC rules EXCEPT govt employees of govt agencies and govt corporations incorporated under the Corporation Code 2. Gel Baniqued. it is enough that he ceases to work (case in point: seamen) hours worked: employer has burden of proof Page 34 of 103 . C.A. employer’s family members 5. 84 – Hours worked  Prelim and postlim activities are deemed performed during working hours. Sheryl Harina. persons rendering personal service 7. overtime pay of the employees will become due and demandable if ever they are permitted or made to work beyond 4:30pm 6.A. there should have been express agreement to that effect Page 35 of 103 . 85 – Meal Periods  GR: not compensable E: predominantly spent for employer’s benefit or where it is less than 60 minutes (but in no case shall it be shorter than 20 minutes) Continuous shifts E to E: shortened break is upon employee’s request Requisites: 1. Denise Dy. Sheryl Harina. however. 87 – Overtime Work  Compensation for work rendered in excess of 8 hours a day  Multiply the overtime hourly rate by the number of hours worked in excess of 8  Receipt of overtime pay does not preclude right to NSD  Overtime rate based on regular wage (excludes money received in different concepts and other fringe benefits)  How “work day” is counted  24-hour period which commences from the time the employee regularly starts to work  Work in excess of 8 hours w/n a work day is considered as overtime regardless of whether this is performed in a work shift other than at which employee regularly works  Estoppel and laches cannot be invoked against employees in an action for the recovery of compensation for overtime work  Overtime pay in arrears retroacts to the date when services were actually rendered  GR: NO waiver or quitclaim of overtime pay E: waiver is in exchange for certain benefits  Agreement that overtime pay will be integrated in basic salary is not per se illegal. Elvira Castro. effectivity of proposed working time arrangement shall be of temporary duration as determined by DOLE Art. Gel Baniqued. value of the benefits derived by the employees from the proposed work arrangement is equal to or commensurate with the compensation due them 5. C. no diminution in the salary and other fringe benefits 3. 86 – Night Shift Differential  not less than 10% of regular wage for each hour of work performed b/w 10pm to 6am Jojo Baetiong. agree in writing to a shortened meal break and waive overtime pay for such shortened period 2. Giselle Remulla 3B – 2006-2007 Atty.Labor Law I Finals Reviewer Art. Azucena   NSD not waivable since it is founded on public policy Burden of proof of payment rests upon the employer Art. work does not involve strenuous physical exertion and are provided w/ coffee breaks 4. Sheryl Harina. urgent work to be performed on the machines. 92 – When employer may require work on a rest day Page 36 of 103 . 89 – Emergency Overtime Work 1. necessary to prevent loss of life or property or in case of imminent danger to public safety due to impending emergency caused by accidents. epidemic. Azucena 2. 91 – Right to weekly rest day ☼ rest period of not less than 24 hours after every 6 consecutive normal work days Art. overtime pay of the employees will become due and demandable if ever they are permitted or made to work on weekend 5. effectivity of proposed working time arrangement shall be of temporary duration as determined by DOLE Art. Giselle Remulla 3B – 2006-2007 Atty. to prevent loss or damage to perishable goods 5. earthquake. are equal to or higher than the separate amounts legally due Compressed workweek (45 hours in 5 days) as an exception to the non-waiver of overtime pay if the following requisites are present: 1.computed separately. country is at war or when any national or local emergency has been declared by Congress or the President Jojo Baetiong. ect. agree in writing to work 9 hours a day from Monday to Friday 2. typhoon. w/o deduction on account of facilities provided by employer Chapter II WEEKLY REST PERIODS Art.Labor Law I Finals Reviewer  and that the mathematical result shows that the agreed legal wage rate and the overtime pay. work does not involve strenuous physical exertion and are provided w/ coffee breaks 6. In order to avoid loss or damage to employer 4. 88 – Undertime not offset by Overtime Art. 90 – Computation of Additional Compensation  regular wage shall include cash wage only. value of the benefits that will accrue to the employees under the proposed work schedule is more than or at least commensurate with or equal to the one-hour overtime pay that is due them during weekdays 4. fire.A. C. Elvira Castro. Gel Baniqued. to prevent serious obstruction ot prejudice to the business or operations of the employer 6. flood. no diminution in the salary and other fringe benefits 3. Denise Dy. to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon Art. or other disaster or calamity 3. 94 – Right to (Regular) Holiday ‫ ﺺ‬100% add’l compensation ‫ ﺺ‬10 regular holidays 1. urgent work to be performed on the machines.1) 2. AND SERVICE CHARGES Art. Rizal Day (Dec 30) 11. nature of work requires continuous operations and stoppage of work may result in irreparable injury or loss to the employer 6.Labor Law I Finals Reviewer 1. Gel Baniqued. Eidul Adha – reg’l holiday in the ARMM ‫ ﺺ‬Muslim Holidays – shall be observed in the provinces of Basilan.A. necessary to prevent loss of life or property or in case of imminent danger to public safety due to impending emergency caused by accidents. add’l compensation of at least 50% ☼ CBA may stipulate higher premium pay ☼ 3 special days (holidays)  Nov. abnormal pressure of work due to special circumstances. Elvira Castro. and in such other Muslim provinces and cities as may be created. Iligan. Aug. C. Pagadian. Araw ng Kagitingan (Apr 9) 5. 21  30% Jojo Baetiong. North Cotabato. Tawi-tawi. prevent loss or damage to perishable goods 5. 31. Denise Dy. Zamboanga del Norte/Sur. Lanao del Norte/ Sur. epidemic. Art.1st day after 30-day fasting period 12. Independence Day (Jun 12) 7. Sunday.1. or other disaster or calamity 2. Upon proclamation by the Page 37 of 103 . Bonifacio Day (Nov 30) 9. earthquake. Marawi. Giselle Remulla 3B – 2006-2007 Atty. typhoon. National Heroes Day (Last Sunday of Aug) 8. Sulu. 93 – Compensation for rest day. cities of Cotabato. and Zamboanga. Good Friday 4. Dec. or holiday work ☼ at least 30% of regular wage ☼ when such holiday falls on his rest day. SERVICE INCENTIVE LEAVES. Sheryl Harina. Eidul Fitras . In order to avoid loss or damage to employer 3. Sultan Kudarat. Christmas Day (Dec 25) 10. Azucena Chapter III HOLIDAYS. where the employer cannot ordinarily be expected to resort to other measures 4. similar circumstances as determined by DOLE Sec. Labor Day (May 1) 6. fire. ect. Maguindanao. New Year (Jan. flood. Maundy Thursday 3. he is entitled to his holiday pay on the 2nd holiday holiday pay of hourly-paid faculty members during semestral break  employer-school is exempted from paying hourly paid faculty members their pay for regular holidays. unless he works on the 1st holiday. Giselle Remulla 3B – 2006-2007 if unworked  covered employees are entitled to at least 200% of their basic wage even if said holiday is unworked if worked  entitled to compensation equivalent to at least 300% of his basic wage double holiday rule for monthly-paid employees  if worked. or Holy Week vacations  employer-school must pay said faculty members their regular hourly rate on days declared as special holidays or for some reason classes are called off or shortened for the hours they are supposed to have taught. C. provided. President. offices. 4. Elvira Castro. in which case. Muslim holidays may also be officially observed in other provinces and cities – PP 1198  all private corps.Labor Law I Finals Reviewer 1. whether the same be during the regular semester or during semestral. 3. to its monthly-paid employees (Wellington Investment vs Trajano) ‫ ﺺ‬double holiday: 2 regular holidays on same day ‫ﺺ‬ Jojo Baetiong. Gel Baniqued. Denise Dy. that all Muslim employees working outside of the Muslim provinces and cities shall be excused from work during the observance of Muslim holidays as recognized by law. 2. and agencies operating within the provinces and cities enumerated herein shall observe the legal holidays as proclaimed. aside from the usual holiday pay. additional 100% of regular salary successive regular holidays  an employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the 1st holiday. without diminution of salary during said period – Both Muslim and Christian employees within the Muslim areas may not report for work on the designated Muslim holidays amun jadid (new year) mauled-un-nabi (birthday of Mohammed) lailatul isra wal mi rai (nocturnal journey and ascension of the Prophet Mohammed) id-ul-fitr (hari raja pausa) – end of fasting season id-ul-adha (hari raha haji) Atty. Azucena ‫ﺺ‬ ‫ﺺ‬ ‫ﺺ‬ ‫ ﺺ‬a legal holiday falling on a Sunday creates no legal obligation for the employer to pay extra. Christmas. 5. whether extension of class days be ordered or not.A. in case of extensions said faculty mems shall likewise be paid their hourly rates should they teach during said extension (JRC vs NLRC) field personnel not entitled to holiday pay Page 38 of 103 . Sheryl Harina. and those employed in establishments regularly employing less than 10 employees ‫“ ﺺ‬1 year of service”  service within 12 months. reckoned from the date the employee started working. Gel Baniqued. respectively (DOLE Explanatory Bulletin dated January 2. Azucena ‫ ﺺ‬Vacation and sick leaves are voluntary benefits ‫ ﺺ‬Leave credits are normally converted into their cash equivalent based on the last prevailing salary received by the employee ‫ ﺺ‬Paternity leave  available only for the 1st four deliveries of the legitimate spouse with whom the husband is cohabiting. 95 – Right to Service Incentive Leave ‫ ﺺ‬coverage: every employer who has rendered at least 1 year of service shall be entitled to a yearly SIL of 5 days with pay ‫ ﺺ‬SIL not applicable to those already enjoying the benefit herein provided. those enjoying vacation leave with pay of at least 5 days. in which case said period shall be considered as 1 year for the purpose of determining entitlement to the SIL ‫ ﺺ‬SIL of part-time workers  proportionate to the daily work rendered and the regular salary. has rendered at least 1 year of service 2. C. 1996) ‫“ ﺺ‬on contract” workers entitled to SIL ‫ ﺺ‬Commutation of SIL valid. unless the number of working days in the establishment as a matter of practice or policy. Giselle Remulla 3B – 2006-2007 Atty.A. miscarriage. including authorized absences and paid regular holidays. he has applied for paternity leave 4. has presented a Solo Parent ID to employer Page 39 of 103 . Elvira Castro. availment and commutation of the SIL benefit may be on a pro-rata basis ‫ ﺺ‬SIL is mandatory Jojo Baetiong. whether continuous or broken. or abortion  shall not exceed 7 calendar days for each delivery  entitled to full pay  non-commutation of benefits Requisites: 1. delivery includes childbirth. basis of conversion shall be the salary rate at the date of commutation. hi wife has given birth or suffered a miscarriage ‫ ﺺ‬Maternity leave  see discussion under Art 133 of LC ‫ ﺺ‬Parental (Solo Parent) Leave  not more than 7 working days each year  non-convertible to cash if unused  requisites: 1. or provided ini the employment contract is less than 12 months. has notified employer of the availment thereof w/n a reasonable period of time 3. Sheryl Harina. he is an employee at the time of delivery of his child 2.Labor Law I Finals Reviewer Art. he is cohabiting with his spouse at the time she gives birth or suffers a miscarriage 3. Denise Dy. and measured by the day. C. woman gives birth as result of rape or crime against chastity. employer c. spouse has died 3. legally separated or de facto separated for at least 1 year. employee d.Labor Law I Finals Reviewer  who is a solo parent? 1. Denise Dy. any other person who solely provides parental care and support to a child 9. week. or season .includes sales commissions . agriculture e. spouse is detained or is serving sentence for at least 1 year 4. provided she keeps and raises the child 2. month. the share of covered employees shall be considered as integrated in their wages ‫ ﺺ‬basis shall be the average monthly share of each employee for the past 12 months immediately preceding the abolition or withdrawal of such charges ‫ ﺺ‬pooled tips shall be monitored.A.includes facilities (include articles or services for the benefit of the employee or his family but shall not include tools of the trade or articles or service primarily for the benefit of the employer or necessary to the conduct of the employer’s business) or commodities (employer may provide Page 40 of 103 . employ f. 96 – Service Charges ‫ ﺺ‬covered employees  except those receiving more than P2.Definitions: a.000 a month ‫ ﺺ‬in case service charge is abolished. Giselle Remulla 3B – 2006-2007 Atty. Elvira Castro. wage g.indicates inconsiderable pay for a lower and less responsible character of employment . Azucena Title II – WAGES Chapter 1 – Preliminary Chapter Art. provided s/he is entrusted with custody 5. unmarried mother/father 8. and distributed in the same manner as service charge Jojo Baetiong. person b. any family mem who assumes the responsibility of head of family Art. paid at stated times. accounted for. Gel Baniqued. fair and reasonable value  WAGE – applies to the compensation for manual labor. skilled or unskilled. physical/mental incapacity of spouse 6. 97 . Sheryl Harina. abandoned by spouse for at least 1 year 7. Facilities – items of expense necessary for the laborer’s and his family’s existence and subsistence so that by express provision of law. C. or without recompense. Elvira Castro. provision of deductible facilities must be voluntarily accepted in writing by the employee 3. including adequate depreciation plus reasonable allowance Jojo Baetiong. a tip . a gift. remaining 30% has to be subsidized by the employer Lodging facility – value is determined to be the cost of operation and maintenance.suggestive of a larger and more permanent or fixed compensation for more important office . they form part of the wage and when furnished by the employer are deductible therefrom HOWEVER. or a superior grade of services. Giselle Remulla 3B – 2006-2007 Atty.A. Denise Dy. facilities must be charged at fair and reasonable value  SALARY – denotes a higher degree of employment. Azucena Requirements for deducting value of facilities (Mabeza v NLRC) 1. something voluntarily given in return for a favor or services. Sheryl Harina. and implies a position or office . proof must be shown that such facilities are customarily furnished by the trade 2.excludes allowances Songco v NLRC – sales allowances should be included in separation pay commissions and computation of  GRATUITY – something given freely.Labor Law I Finals Reviewer them but he may deduct their values from the employee’s wages distinguish facilities from supplements (criterion: purpose) supplements – constitute extra remuneration or special privileges or benefits given to or received by the laborers over and above their ordinary earnings or wages. re: meals and snacks  deduction cannot be more than 70% of the value of the meals and snacks.that which is paid to the beneficiary for past services rendered purely out of the generosity of the giver or grantor Page 41 of 103 . provided that such deduction must be authorized in writing by the employee. Gel Baniqued. a bounty. processing.employer’s ability to pay is immaterial. can’t exempt himself to pay minimum wages .raises standard of competition among employers . persons working in their respective homes in needle work or any cottage industry 4.A. workers in any duly registered cooperative when so recommended by the Bureau of Cooperative Development 6. Barangay micro business enterprise  any business entity engaged in the production.Labor Law I Finals Reviewer - Atty. or manufacturing of products or MINIMUM WAGE .Regional Minimum Wages Agri and non-agri  prescribed by the Regional Tripartite Wages and Productivity Boards Art. plant and equipment are situated. 7. 99 . wage orders issued by the wage boards under A 99 and 122  Agricultural work  work on the soil and its harvests  if highly mechanized and carries on processing activities not merely incidental to purely farming operations. including agro-processing.adopted to reduce the evils of the “sweating system” . workers employed in any establishment duly registered with the National Cottage Industries and Development Authority 5. deemed industrial employees  nature of work classifies a worker Art. Elvira Castro. whose total assets including those arising from loans but exclusive of the land on which the particular business entity’s office. 98 – Application of Title 2 (Wages) Not applicable to: 1. Denise Dy. Gel Baniqued. shall not be more than P3M.acceptance by an employee of the wages paid him without objection does not give rise to estoppel precluding him from suing for the difference between the amount received and the amount he should have Jojo Baetiong. trading and services. Giselle Remulla 3B – 2006-2007 Chapter 2 – Minimum Wage Rates Page 42 of 103 .lowest wage rate fixed by law that an employer can pay his worker . Sheryl Harina. C. farm tenancy or leasehold 2. domestic services 3. Azucena not intended to pay a worker for actual services rendered  fair day’s wage for fair day’s labor  equal pay for equal work (think Quisumbing case) ISAE v commodities. CBA) 4. monthly emergency allowance Exceptions to the non-diminution rule 1.e. Sheryl Harina. Granting of bonus is basically a management prerogative (Traders Royal Bank v NLRC)  bonus as productivity incentives. benefit on reimbursement basis 3. long and regular concession. “bonus” is not gratuity but the computed result of joint planning and effort. food and meal allowances 2. reclassification of position/promotion made in good faith Jojo Baetiong. no bonus. contingent or conditional benefits/bonus  bonus is an amount granted and paid to an employee for his industry and loyalty which contributed to the success of the employer’s business and made possible the realization of profits.A. Giselle Remulla 3B – 2006-2007 ex: rank-and-file to supervisory  lose overtime pay and other benefits under A 82-96 but A 100 is not violated (Nat’l Sugar Refineries Corp v NLRC) 5. 100 – Prohibition against diminution of benefits  NONDIMINUTION OF BENEFITS elimination or Requisites for application of nondiminution rule 1. claimable only on the basis of predefined output level  PD 851 – 13TH MONTH PAY Page 43 of 103 . C. bonus is not a demandable and enforceable obligation BUT it is when made part of the wage or salary or compensation  equity or long practice as basis of bonus – even if bonus is not demandable. Denise Dy. employee’s share is in the nature of salary bonus proportionate to increases in current productivity over the average for the preceding 3 consecutive years. the practice is consistent and deliberate 3. the practice is not due to error in the construction or application of a doubtful or difficult question of law 4.Labor Law I Finals Reviewer Atty. fixed hope  services rendered as basis of bonus – right is not defeated by a “release and quitclaim” upon termination (Marcos v NLRC – redundancy benefits))  reduction of bonus not diminution of benefits. Azucena received pursuant to a valid minimum wage law Art. Gel Baniqued. noncontributory retirement plan 3. grant of the benefit is founded on a policy or has ripened into a practice over a long period 2. the diminution or discontinuance is done unilaterally by the employer Extent of the Rule 1. not established practice 2. no profit. negotiated benefits (i. Elvira Castro. PD 851 is mandatory. profit-sharing payments and all allowances and monetary benefits Page 44 of 103 . as well as nonmonetary benefits) or bonuses may be credited as 13th month pay (Nat’l Federation of Sugar Workers v Ovejera – year-end productivity Jojo Baetiong.A. cost-of-living allowances and all other allowances enjoyed by the employees. mid-year bonus. a 13th month pay not later than December 24 of every year President Aquino removed the P1000 ceiling.e. regardless of salary rate. entitled to 13th month pay all rank-and-file employees. Denise Dy. Gel Baniqued. but still excluding managerial or supervisory employees “equivalent” (i. Giselle Remulla 3B – 2006-2007 - - - - bonus of 1/12 of basic salary plus difference) If the CBA did provide for bonus in graduated amounts depending on the length of service of the employee. Christmas bonus. regardless of the nature of employment.Labor Law I Finals Reviewer Atty. Elvira Castro. 13th month pay is deemed written in contract Supplements or other employee’s benefits or favorable practice not substitute for 13th month pay Computation of 13th month pay – 1/12 of basic salary within a calendar year Basic salary – include all remunerations or earnings paid by an employer to an employee for services rendered but may not include cost-of-living allowances. requires all employers to pay their rank-and-file employees receiving a basic salary of not more than P1000 a month. and other cash bonuses amounting to not less than 1/12 of the basic salary but shall not include cash and stock dividends. Sheryl Harina. profitsharing payments. C. Azucena - - - issued during the Martial Law. bonus provided in the CBA was meant to be in addition to the legal requirement (Universal Corn Products v NLRC – graduated Christmas bonus) Absence of an express provision in the CBA obligating the employer to pay the employees a 13th month pay is immaterial. if wage-or-salespercentage type [intimately related to the extent or energy of an employee’s endeavors]. work in excess of the regular teaching load. C. Duplicators v NLRC). excluded (BoieTakeda Chemicals v Dela Serna) . when the same is calculated as a percentage on the amount of his transactions or on the profit of the principal teacher’s overload pay performed during or within the 8 hours in a day [the load in excess of the normal load of private school teachers as prescribed by DECS or the policies. compensation.A.Labor Law I Finals Reviewer Atty. if profit-sharing or productivity bonus type [something extra for which no specific additional services are rendered by any particular employee].employees w/ guaranteed wages/commissions entitled to 13th month pay based on Jojo Baetiong.commissions are included or excluded. rules. Sheryl Harina. Denise Dy. Azucena which are not considered or integrated as part of the basic salary of the employee. reward of an employee. . Gel Baniqued.overtime pay and other remunerations are excluded as part of basic salary and in the computation of the 13th month pay (San Miguel Corp v Inciong) . agent. Giselle Remulla 3B – 2006-2007 - - their total earnings during the calendar year on both their fixed and guaranteed wage and commissions (Phil. may be performed within or outside 8 hours in a day] part of basic pay for computing 13th month pay Page 45 of 103 . Agricultural and Industrial Workers’ Union v NLRC – drivers and conductors) commissions  recompense. depending on what kind of commissions are involved. salesman. includible in the 13th month pay computation (Phil. and standard of particular private schools. executor. Elvira Castro. broker or bailee. C. Giselle Remulla 3B – 2006-2007 employees. Sheryl Harina.A. those whose time and performance is supervised by the employer – embodies an element of control and supervision over the manner as to how the work is to be performed ex: piece-rate worker 2. Denise Dy.. only a method of compensation  basis of output rate – the performance of an ordinary worker of minimum skill or ability [aka the average worker of the lowest producing group representing 50% of the total number of employees engaged in similar employment in a particular establishment. Gel Baniqued. excluding learners. reckoned from the time he started working during the calendar year up to the time of his resignation or termination from service (Int’l School of Speech v NLRC) distressed employer may be exempt from paying the 13th month pay only upon prior authorization from Labor Sec (Dentech Manufacturing Corp v NLRC) difference of opinion on how to compute the 13th month pay does not justify a strike nonpayment of 13th month pay is not an issue of unfair labor practice but one of money claim PD 851 only applies to private employers and their Jojo Baetiong. no intention to cover persons working in the govt service (Alliance of Govt Workers v Minister of Labor and Employment) Art.Labor Law I Finals Reviewer Atty. Azucena - - - - - an employee who has resigned or whose services were terminated at any time before the time for payment of the 13th month pay is entitled to this monetary benefit in proportion to the length of time he worked during the year. those whose time and performance is unsupervised ex: pakiaw and takay workers  payment by result not determinative of er-ee rel. Page 46 of 103 . 101 – Payment by Results  Workers paid by results [pay is calculated not on the basis of time spent on the job but of the quantity and quality or the kind of work they turn out] grouped into 2: 1. Elvira Castro. holiday pay 2. night differential pay and company fringe benefits computation of service incentive leave of piecerate worker  get actual wage earned for 1 year. rule 5.as regular employees.Labor Law I Finals Reviewer      apprentices. premium pay. Other entitlements: 1. Giselle Remulla 3B – 2006-2007 Atty. holiday pay.entitled to minimum wage . Gel Baniqued. Labor Code for being paid at a fixed amount for performing work irrespective of time consumed in the performance thereof b. Implementing Regulations.A. C. Makati Haberdashery v NLRC Held: . service incentive leave.piece-rate employees are entitled to night shift differential. holiday pay. Book 3. the minimum rate outside Metro Manila. and handicapped workers employed therein unsupervised piece-rate workers are not entitled to night differential pay and service incentive leaves re: yearly commutation or cash conversion of the service incentive leave of piece-rate workers  based on their average daily earnings during the particular year of service which can be derived by dividing the amount earned during the year by the actual number of working days or the statutory minimum rate. 13th month pay (if he has rendered at least 1 month work or service during the calendar year) Jojo Baetiong. 13th month pay . if average daily rate is less than P36. Elvira Castro. and premium pay. Azucena  Variant Jurisprudence on Piece-rate workers’ entitlement to statutory benefits a. divide by 12 to get average monthly earnings then divide by the average number of actual worked days in a month. basis for the computation is P36.workers are regular employees although paid on piece-rate basis . overtime pay. and 13th month pay because they do not fall within the group of workers who “are field personnel and other employees whose time and Page 47 of 103 . Denise Dy. Labor Congress v NLRC Held: . Sheryl Harina. whichever is higher in the absence of any agreement which provides otherwise. they can claim cost-living allowances. the amount earned during the year may exclude COLA. multiply result by 5.not entitled to service incentive leave pay and holiday pay because they fall under one of the exceptions stated in Section 1(d). Book 3) Revised Guidelines on the th Implementing of the 13 Month Pay Law.A. service incentive leave of 5 days with pay 3. Sec. purely commission basis. other benefits granted by law. meal and rest periods 6. piece workers are specifically mentioned as being entitled to holiday pay (Sec 8-B. C. Elvira Castro.” entitled to overtime pay if their output pay rate is not shown to be in accordance with the standards prescribed under the Implementing Rules [Rule 7-A. Rule 4. by individual or collective agreement or company policy or practice IF output rates conform with the standards prescribed by the Labor Code. Proof of wage payment Jojo Baetiong. Denise Dy. overtime pay (conditional) 7. 13th month pay 9. Giselle Remulla 3B – 2006-2007 Page 48 of 103 . 28.Labor Law I Finals Reviewer Atty. premium pay (conditional) 8. minimum wage 2.D. Book 3  Summation of benefits payable to Piece-rate workers 1. Sheryl Harina. Rule 7. 851 by Memorandum Order No. night differential pay 4. in view of the modifications to P. Gel Baniqued. Azucena - - - - performance is unsupervised by the employer. holiday pay 5. including those who are engaged on task or contract basis. or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof. employer is not required to grant the piece-rate workers the benefits under the Rule on Hours of Work nor to pay the wage differentials if their daily earnings do not amount to the applicable statutory minimum daily wage. Chapter III Payment of Wages Art 102. clearly exclude the employer of piece-rate workers from those exempted from paying the 13th month pay Entitled to overtime pay because respondent company did not allege adherence to the standards set forth in Sec 8. Forms of Payment Forms of payment 1.5] or by the Secretary of Labor further. A. When employer provides free transpo back & forth 2. amt actually paid. Azucena Place of Payment Where the employee alleges non-payment of wages and/or commission. 1. C. massage clinic. The employee should sign the payroll Art. Place of Payment Jojo Baetiong. Payment cannot be effected at or near the place of work: a. or in places where games are played with stakes of money or things representing money. Under any analogous circumstances. provided: a. by reason of actual or impending emergencies caused by fire. epidemic or other calamity rendering payment thereat impossible. Time spent by employee in collecting their wages shall be considered as compensable hours worked No employer shall pay his employees in any bar. Sheryl Harina. 103. the same is inadmissible considering the it is not properly accomplished – undated. Held: Although the employer submitted a notebook showing the alleged vales. Jimenez et al v. flood. Payment through banks Upon written permission of the majority of the employee or workers concerned. unsigned and is thus uncertain as to its origin and authenticity. etc. dance hall or other similar places. The Implementing Rules require every employer to keep a payroll – showing length of time to be paid. Time of Payment Art. Page 49 of 103 . Elvira Castro. the pay rate.Labor Law I Finals Reviewer Atty. There were cash advances may by the employee as evidenced by a notebook presented by the employer. 104. bec of deterioration of peace & order b. NLRC (1996) Facts: Employee Juanatas sued for full payment of his 20% commission of the gross income. except in the case of persons employed in said places 2. night or day club. Denise Dy. Giselle Remulla 3B – 2006-2007 GR – should be near place of undertaking E 1. Gel Baniqued. the employer has the burden to prove payment. drinking establishment. The employer has the burden of proof to establish full payment of wages. C. 106.Labor Law I Finals Reviewer Entities with 25 or more employees and Located within 1 km radius to a bank Shall pay wages & other benefits through any of said banks Within period of payment of wages fixed by Labor Code (Wage Rationalization act RA 6727) Whenever applicable and Upon request of a concerned worker or union. B which in turn hires the services of Jojo Baetiong. 1996) Art. work or service is to be performed or completed within or outside the premises of the principal. 105. Giselle Remulla 3B – 2006-2007 Atty. work or service iii. 109 Solidary Liability Contractor of Subcontractor 1. Parties – principal enters into a contract with subcon. Denise Dy. Period – definite or predetermined period iv Location – performed within or outside principal’s premises Page 50 of 103 .O. ii. Specific Job – performance or completion of a specific job. Elvira Castro. Gel Baniqued. B & C hires people. (Wage Rationalization act RA 6727) Payment through ATM allowed. Indirect Employer Art. Sheryl Harina. Contracting and Subcontracting in general Co. Azucena another contractor C to handle certain aspect of construction project. A engaged in resto business concludes contract with const co. Contractor or Subcontractor Art. 4 features of legit contracting i. regardless of whether such job. work or service within a definite or predetermined period. 108. Bank shall issue a cert of the record of payment of wages Of particular worker/workers For a particular pay period. 18-02 Contracting or subcontracting as an arrangement whereby a principal agrees to put out or farm out with a contractor or subcon the eprformance or completion of a specific job. 107. Direct Payment of Wages Art. (under a labor advisory dated Nov 25.A. Posting of Bond Art. GR Employer-employee relationship (see Art 82) Bet B and his workers Bet C and his workers A is not an employer to B or C to their respective groups of workers E – employment arrangement unlawful A is indirect employer D. A. eqpt. eqpt. actually and directly used by the contractor or subcon in performance or completion of the jobm work or service contracted out. machineries and work premises. Elvira Castro. Azucena Substantial capital or investment – capitalization. Insular Life v. Giselle Remulla 3B – 2006-2007 Atty. Denise Dy.o. etc. NLRC (1993) Law does not require both substantial capital and investment in the form of tools.C. supply or place workers to perform a job. contractor and contractual employees Bet principal and contractor – Civil code & pertinent commercial law Bet contractor & employee – Labor code and special labor laws 2.Labor Law I Finals Reviewer 1. work or service for the principal CE1 = confirming element 1  lack of substantial capital or investment and performance of activities directly related to the principal’s main business CE2 = confirming element 2  contractor does not exercise control over the performance of the employees L. Under the memo issued by the Page 51 of 103 . C. by presumption of law  a full-pledged legitimate labor contractor has to be registered with DOLE.C = EE + (CE1 or CE2) EE = essential element  arrangement is merely to recruit. 1st set of prohibition – Labor only contracting (DO 18-02) L. NLRC (1996) Where the contractor is a going concern duly registered with the SEC with substantial capitalization of P1. such contractor cannot be considered as engaged in LoC being a highly capitalized venture. P400T of which is actually subscribed. Jojo Baetiong. Sheryl Harina.C. Filipinas Synthetic Fiber v. to determine not only the end to be achieved but also the manner and means to be used in reaching that end. implements. machineries. tools.2 Trilateral relationship 3 parties – principal. NLRC (1989) The fact that the complainant worker was required to solicit business exclkusively for the alleged employer could hardly be considered as control in labor jurisprudence.o.6M. Gel Baniqued. otherwise he is presumed to be an L. Control – right reserved to the person for whom the service of contactual workers are performed.o. Neri v. NLRC (1997) Exclusive servicing does not necessarily mean being under the control. The bank is liable to the employee as if the employee had been directly employed not only by CESI but also by the bank. the amounts which the bank will have to pay to Orpiada. or employment of the entity being served. 2. AFP MBAI v. 3. all benefits as may be provided by existing CBA or other relations or by law.A. Jojo Baetiong. Giselle Remulla 3B – 2006-2007 Atty. NLRC (1986) There is of course nothing illegal about hiring persons to carry out “a specific project or undertaking the completion or termination of which (was) determined at the time of the engagement of the employee. Gel Baniqued.Labor Law I Finals Reviewer Insurance Commission. Elvira Castro. or some contribution to. Denise Dy.4 Consequence of LoC – Agency hired employee becomes entitled to benefits under CBA of client company Tabas v. But the bank may in turn proceed against CESI to obtain reimbursement of. 2nd set of prohibitions – Arrangements that violate public policy (DO 18-02) Not LoC but are likewise prohibited because they contravene public policy: Prohibitions: a) Contracting not done in good faith and not justified by the exigencies of the business and the same results in the termination of regular employees and reduction of work hours or reduction or splitting of the bargaining unit b) Contracting with cabo c) Contracting with in house agency d) Contracting bec of strike or lockout e) Contracting that constitutes ULP under Art 248 Page 52 of 103 . Sheryl Harina. or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season.3 Consequence of LoC – Worker supplied by Agency becomes employee of client company PBCOM v. California Manufacturing Co (1989) The existence of an employer-empoyee relation is a question of law and being such. CESI was engaged in LoC vis-à-vis the petitioner bank. insurance agents are barred from serving more than 1 insurance company. Given te circumstances of this case. C. Employee is reinstated with the full status and rights of regular employees. Azucena 2. cannot be made the subject of agreement. Summary of prohibited labor contracting 4. (Broadway Motors v. Extent of employer’.Labor Law I Finals Reviewer 5. such as backwages and separation pay because of a wrongful dismissal. blank payroll. or circumventing the provisions of regular employment. the liabilithy should be solely that of the contractor if there is no proof that the principal conspired with the contractor in committing the wrongful dismissal of the contractor’s worker. Gel Baniqued. occupational safety and health standards. Azucena Rosewood Processing If the liability is in the nature of a penalty. right to self organization. accdg to its own manner and method and free from the control and direction of the principal in all matter connected with the perf of work except as to the results thereof ii) Contractor has substantial capital or investment iii) Contractual agreement assures contractual employees entitlement to all labor. security of tenure. requiring the contractual employee to perform functions done by regular employees ii) Requiring him to sign as a precondition to employment/continuance: antedated resignation letter. 3RD set of prohibitions – Exploitative acts Taking undue advantage of the economic situation or lack of bargaining strength of the contractual employee or undermining his security of tenure or basic rights. quitclaim iii) Contract with period of employment shorter than term of contract bet principal & contractor/subcon. Denise Dy. 7. C. Sheryl Harina. NLRC) Jojo Baetiong. what is contracted is the performance of a job and the contractor is an Page 53 of 103 . Legitimate Contracting – Independent Contractor/Job Contracting Legitimate when the ff circumstances concur: i) Contractor carries on a distinct and independent business & undertakes to perform job. unless contract is divisible into phases for w/c substantially different skills are reqd & this known to employee at time of engagement 6. social or welfare benefits. waiver of labor standards incl min wage.s liability in invalid contracting and violation of other pohibitions Liability is immediately and directly imposed upon the principal.A. as if directly hired by the employer. social and welfare benefits. Giselle Remulla 3B – 2006-2007 Atty. in any of the ff instances: i) in addition to his assigned functions. work or service on its own account and under its own resp. Elvira Castro. In legitimate or valid contracting. To restate. 7. Ople) Where the peddler shall have the right to employ his own workers. C. Messengerial/Janitorial Service Rhone-Poulenc Phils v. NLRC Page 54 of 103 . (Mafinco Trading v. Gel Baniqued. Ople Jojo Baetiong. [Union Carbide was bought by Rhoune Poulenc. CSI had the power to assign its janitors to various clients and to pull out. Elvira Castro. (Andovo v. shall post a bond to protect the manufacturer against losses. Giselle Remulla 3B – 2006-2007 Independent Operator Ushio v. 7.2 Examples of Independent Contractor Dealership Mafinco Trading Corp v. the significant factor in determing the delationship of the parties is the presence or absence of supervisory authority to control the method and the details of performance of the service being rendered and the degree to which the principal may intervene to exercise such control (AFP MBAI v. shall be responsible for damages caused to 3rd persons.Labor Law I Finals Reviewer independent businessman capable of doing the job by his own means and methods. MRR) Atty. Commission Agent Insular Life v. Denise Dy. NLRC Under the contract. an independent contractor whose claim for unpaid commissions should have been litigated in an ordinary civil action. NLRC).A. Sheryl Harina. Moreover. Basiao is not an employee of Insular life but a commission agent.  independent contractors.1 Summary of Legitimate Labor Contracting Legitimate when: i) contractor is a job contractor and not a labor only contractor ii) properly registered in accordance with DO 1802 does not fall under Sec 5 or 6 of DO 18-02. Azucena An independent contractor is one who exercises independent employment and contracts to do a piece of work accdg to his own methods and without being subject to control of his employer except as to the result of the work.] The janitors drew their salaries from CSI which exercised control over them. NLRC The respondents themselves admitted that they were selected and hired by CSI and were assigned to Union Carbide. shall obtain necessary licenses and permits and bear the expenses incurred in the sale of soft drinks is not a contract of employment. NLRC Judicial notice of general practice adopted in govt & privateinstitutions of hiring independent contractings to perform special services – janitorial. investment. 9. applying the 4-fold test in determining employer-employee relationship. 7. But in this case. 9. (DO 18-02). But reliance of Tabas case is misplaced because Livi was a mere placement agency that had simply supplied CMC with manpower Jojo Baetiong. (Rosewood Processing. Giselle Remulla 3B – 2006-2007 Atty. Hingpit In 1st case. Sheryl Harina. tools.1 As to payment of wages/money claims When a contractor fails to pay the wages of his employees in accordance with the Labor Code. C. 8. The power to control the employee’s conduct is absent. etc.  as if such employer were the employer of the contractor’s employee. Denise Dy. Gel Baniqued. Escario v. the employer who contracted out the job becomes jointly and severally liable with the contractor to the extent of the work performed under the contract. In present case. Elvira Castro. NLRC) Legislated wage increases are deemed amendments to the contract. NLRC In earlier case of Tabas v. including failure to pay wages. also NFA) Page 55 of 103 . the status of Admark as the true employer of the petitioners is further established. Azucena necessaru tp carry oiut the company’s merchandizing activity. it failied to prove that Lipercon has substantial capital. Livi was determined to be an LoC. free lance operators who offer services to customers of auto parts shops along Banawe. CMC. (PBCOM v. Extent of Principal’s liability in legit contracting Contractor considered to be the employer of the contractual employee for purposes of enforcing the provisions of the Labor cCode and other Social legislation. with respect to the means and methods by which his work was to be accomplished.Labor Law I Finals Reviewer Severino is one of those independent.A. A manpower company may be a LoC in one case but an independent contractor in another Coca Cola Bottlers v. Private respodent was free to offer his services to other stores along Banawe.3 Judicial Notice of Job Contracting Neri v. (DO 18-02) The principal shall be solidarily liable with the contractor in the event of any violation of the provisions of the Labor Code. Lipercon established its character as an independent contractor. security or even technical or other specific services. even ahead of claims of govt. Registration of Contractors Registration of contractor with DOLE regional office.declaration of bankruptcy or judicial liquidation of employer’s business Unpaid wages earned prior to declaration/liquidation shall be given 1st preference for payment. CBA. indirect employer is solidarily liable. Page 56 of 103 . Gel Baniqued. Sheryl Harina. Sec 7 par 1.2 As to other violations Under DO 18-02. to extent of their civil liability on payment of wages. C. Denise Dy. Rosewood Processing v. Elvira Castro. to perf of any work. NLRC Liability does not extend to the payment of backwages and separation pay of employees who were constructively or illegally dismissed by thec ontractor – no showing that principal conspired in effecting illegal dismissal. An unregistered contractor is presumed to be a labor-only contractor. separation pay. Preference even to claims of govt for taxes (DBP v. 110 Worker Preference in case of bankruptcy Worker preference in case of bankruptcy Prereq. Rights of contractual employees Contractual employees entitled to all rights and privileges due a regular employee as provided under labor code to include: a) safe and healthgul working conditions b) Labor standards c) Social security and welfare benefits Jojo Baetiong. Giselle Remulla 3B – 2006-2007 Atty. task job or project. NLRC) Coverage of Preference Termination pay.Labor Law I Finals Reviewer 9.A. An order to pay backwages and separation pay is invested with a punitive character such that an indirect employer should not be made liable without a finding that it had committed ot conspired in the illegal dismissal. Art. peaceful concerted action e) Security of Tenure 10. 10. all other monetary claims.1 Security of Tenure In case of pre-termination of contract bet principal & contractor – governed by applicable laws Expiration of contract bet principal & contractor – not entitled to separation pay 11.Limitation – to extent of work performed under contract. Solidary Liability . Azucena d) Self organizations. Subject to exection for debts incurred for food. directly or indirectly from transaction. he cannot be allowed to share in the atty fees. except for debts incurred for food. 112. Non-interference in disposal of wages 1. Denise Dy.Labor Law I Finals Reviewer Art. NLRC) 3. NLRC) 4. Atty’s fees assessed” a. Giselle Remulla 3B – 2006-2007 Atty. Wage Deduction Wage deduction Authorized deductions by law: a. Premium paid by employer where insured with employee’s consent c.ce e. Art.A. Elvira Castro. shelter. Art 1708 CC: wages not subject to execution or attachment. cases of unlawful withholding of wages b. Awarded Atty’s fee may not exceed 10%. Pao Lawyers PAO lawyers disqualified from being awarded atty fees (Lambo v. except for a debt due. Pag-ibig Payment to 3rd person Authorized in writing by employee Employer agrees to make deduction Employer must not receive any pecuniary benefit. Art 1709 CC: Employer shall neither seize nor retain any tool or other articles belonging to the laborer. Value of means and other facilities b. CIR) 5. shelter clothing and medical attendance f. arising from CBA negotiations (Reahs Corp) 2. Salary deductions  cooperative h. but between lawyer and client quantum meruit may apply (TRB EU v. Union to check off recognized by employer/ authorized in writing by indiv employee d. C. 113. Art 1707 CC: Labor’s wages shall be a lien on goods manufactured or work done. SSS. Art 1706 CC: withholding of wages. Page 57 of 103 . Art 1705 CC: paid in legal currency b. (Amalgated Laborers Assoc v. Gel Baniqued. Since the union president is not the lawyer for the workers. 111 Atty’s Fees Attorney’s fees 1. Non lawyers not entitled to atty’s fees (Five J Taxi v. Employee is indebted to employer. Civil Code Provisions a. Medicare. Sheryl Harina. clothing and medical attenda. Withholding tax g. NLRC) Chapter IV Prohibition Regarding Wages Art. due & demandable e. Jojo Baetiong. Azucena d. shall not be made by the employer c. 117. (5-J Taxi v. 120 Creation of National Wages and Productivity Commission National Wages and Productivity Commission created by RA 6727. Deposits for Loss or Damage Art. Elvira Castro. 116 Withholding of wages and kickbacks prohibited Art. wage agreements and wage determination Art. 122. If ULP. Azucena Acts under Art 118 are broad.Labor Law I Finals Reviewer Art.A. and can lead to a ULP case if employer retaliated against testifying employee. Reprisal for Silent Testimony Art 118 equally applies to implicit or unspoken testimony by an employee. striekable. 121. C. Giselle Remulla 3B – 2006-2007 Page 58 of 103 . Art. Illegal Deposit Art. 118 Retaliatory Measures Atty. materials or eqpt supplied by employer. NLRC) Art. No Showing that the DOLE Sec recognized such deposit as a “practice” in taxi industry. Limitations Deductions for Loss or Damage (1) employee clearly shown to be responsible for loss or damage (2) employee given ample opprotunity to show cause why deduction should not be mde (3) deduction fair and reasonable and shall not exceed actual loss or damage (4) deduction not exceed 20% of employee’s wages in a weel Deductions for absences Deductions for unpaid absences are allowed. Creation of the RTWPB Regional Tripartite Wages and Producticity Boards Composed of: DOLE Regional Director NEDA Regional Director DTI Regional Director 2 – workers 2 – employers Are retaliatory measures (Art 118) striakeable? Jojo Baetiong. False Reporting Chapter V. Deduction to Ensure employment Art. Art. 114. 119. Denise Dy. Gel Baniqued. Hence illegal. 114 provides the rule on deposits for loss or damage to tools. Powers and Functions of the Commission Art. Sheryl Harina. It does not permit daily deposits which taxi drivers are required to make to defray any shortage in their “boundary”. Wage studies. 115. Labor Law I Finals Reviewer While the RTWPB has the power to issue wage orders under Art 122 (b) of the Labor Code. 128. Azucena i. Cost of living d. Secretrary of Labor) Art. 123 Wage Order Wage Order Takes effect after complete publication in at least 1 newspaper of gen circulation in region. Denise Dy. 125 Freedom to Bargain Art. Consumer price index c. 124. Giselle Remulla 3B – 2006-2007 Atty. Standards/Criteria for Min Wage Fixing Standards/Criteria for Min wage fixing a. Prevailing wage levels h. Visitorial and Enforcement Power If employer-employee relationship still exists – regional director has power to order and administer. Fair return of capital Jojo Baetiong.A. obliterating the distinctions as to skills. Improvements in standards of living g. NLRC): Minimum wage / actual salary = % x prescribed increase = distortion adjustment See also equitable bank case Art. Induce industries to invest in countryside f. C. Sheryl Harina. 126 Prohibition against Injunction Art. Non-Dimunition of Benefits Chapter VI Administration and Enforcement Art. Equitable distribution of income and wealth Wage distortion – situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage of salary rates among employee groups. Effects on employment generation and family income j. Distortion adjustment formula (Metro Bank v. who has the power to prescribe the rules and guidelines for the determination of appropriate wages in the country. Elvira Castro. Gel Baniqued. Art. 127. Living Wage b. such orders are subject to the guidelines prescribed by the National Wages and Productivity Commission (NWPC). Not be disturbed for a period of 12 months from effectivity. Needs of workers and their families e. length of service or other logical bases of differentiation. after due Page 59 of 103 . Public Hearing reqd Wage increase cannot be retroactive to effectivity of wage order (Cagayan Sugar Milling v. dela Serna) See also Univ of Immaculate Conception case But Regional director without authority to declare an order or law unconstitutional. which stands valid. compliance with labor standards provision of Labor Code/other laws DOLE regional director must endorse case to Labor arbiter Where employer contests finding of labor standards and welfare officers and Raises issues which cannot be resolved without considering evidentiary matters That are not verifiable in the normal course of inspection. Denise Dy. Hearing Page 60 of 103 . Compromise agreement In writing. Double Indemnity Fine of double prescribed wage increase when employer refuses or fails to pay prescribed adjustment in wage rates. Recovery of wages. Based on unpaid benefits. (Aboitiz Shipping v. 129. Sheryl Harina. Jojo Baetiong. Restitution Plant Level restitution may be effected for money claims not exceeding P50T. signed by parties in the presence of Regional Director or his duly authorized rep. Regional director can enforce a labor standards law even if the compliance issue is not raised in the complaint. where benefits defined to be prescribed wage rates which employer failed to pay upon effectivity of wage order. Giselle Remulla 3B – 2006-2007 Atty. (RA 6727). exclusive of other wafe related benefits.Labor Law I Finals Reviewer notice and hearing. LSWO to submit report to Regional Director through the Chief of the Labor Standards Enforcement Division (LSED) with 24 hrs after investigation or within a reasonable period as determined by Regional Director. Azucena Labor Standards Cases DOLE Regional Director exercises both visitorial and enforcement power over labor standard cases – emplowered to adjudicate money claims. sec of labor) Art.A. only duty to enforce the laws. simple money claims and other benefits Money claims arising from complaint/routine inspection Regional director refers case to Labor Standards and Welfare Officer for field inspection. Elvira Castro. provided employer-employee relationship exists and finding are not contested by employer (Maternity Children’s Hospital v. C. Gel Baniqued. Report submitted to Regional Director for verification and confirmation. Family Planning Services. Maternity Leave (obsolete) Maternity leave benefits (now under SSS law) Pre-req: at least 3 monthly contributions in 12 month period immediately preceding semester of childbirth or miscarriage: 60 days salary credit 78 days in case of caesarian delivery Paternity Leave (RA 8187) – legit married. Discrimination Prohibited Discrimination prohibited  solely on account of her sex RA 7192 provides that “the state recognizes the role of women in nation-bldg and shall ensure the fundamental equality before the law of women and men. Sheryl Harina.A. Gel Baniqued. Appeal Appealable to DOLE sec. living with spouse Maternity leave benefits apply to married or unmarried women. Title III Working Conditions for Special Groups of employees Chapter I Employment of Women Nightwork prohibition (Art 130) Exceptions (Art 131) Jojo Baetiong. Incentives for Family Planning Art. not punitive. labor standards complaints (3) advisory . 133. 132 Facilities for Women Enforcement under Art 128 are beyond injunctive power of an inferior court. C. The State shall provide women rights and opportunities equal to Page 61 of 103 . Azucena Most call centers are exempt  DOLE Secretary exemption (under Art 131 (g)) Art. relaxed DOLE may delegate to Lgu the inspection of safety (ex boiler).< 10 workers. construction projects. 134. Elvira Castro. Denise Dy. Then to CA through certiorari. Art. hazardous. assistance to increase productivity. Regional director to summon employer & complainants to a summary investigation. micro business enterprises. DO 57-04 New system for enforcement of labor laws 3 approaches (1) self-assessment – voluntary compliance applicable for shops >= 200 workers or those with CBA (2) Inespection – 10 to 199 workers. Giselle Remulla 3B – 2006-2007 Art. 135.Labor Law I Finals Reviewer Where no proof of compliance submitted by employer after 7 days from receipt of inspection. Atty. and (3) All depts. be it on special or ordinary occupations is reflected in the whole text and supported by Art 135 that speaks of nondiscrimination on the employment of women. And agencies shall review & revise regulations. cocktail lounce.A. issuances and procedures to remove gender bias therein. Elvira Castro. (2) All govt depts. under the Jojo Baetiong. Gel Baniqued. PT&T v. Xxx The sweeping intendment of the law. NLRC Similar to the Zialcita case except that the employer did not admit that the employee was dismissed because she was married. Stipulation against marriage Stipulation against marriage Nondiscrimination policy against women for T&C of employment. Giselle Remulla 3B – 2006-2007 Atty. bar or similar establishment. circulars. protection and welfare.” To attain this policy: (1) substantial portion of Official Devt Funds set aside & utilized by agencies to support programs & activities for women.Labor Law I Finals Reviewer that of men. PT&T’s policy that married women are not qualified for employment in PT&T is not only in derogation of the provisions of Art 136 on the right of women to be free from any kind of stipulation against marriage in Page 62 of 103 . Actually. massage clinic. See star paper case Prohibited acts: (Art 137) 1) Deny any woman employee benefits or dischrage woman for purpose of preventing her from enjoying benefits under this code 2) Discharge woman on acct of her pregnancy 3) Refuse admission of such woman upon returning to work for fear that she may again be pregnant Art 138 Classification of certain women workers Any woman working in any night club. as no basis has been laid therefore. Art. Sheryl Harina. 136. Ensure that women benefit equally & participate directly in devt programs & projects of said depts. PAL (1977) – OP decision We cannot agree to the respondent PAL’s proposition that termination from employment of flight attendants on account of marriage is a fair and reasonable standard designed for their own health.. C. the employer insisted. Azucena effective control of the employer for a substantial period of time  condiered employee of such establishment Zialcita v. The cause of the dismissal. safety. respondent claims that its concern is not so much against the continued employment of the flight attendant merely by reason of marriage but rather on the consequence of marriage – pregnancy. was her dishonesty in stating in the job application that she was single though in fact she was not. Denise Dy. SAFETY AND SOCIAL WELFARE BENEFITS Title I MEDICAL. 138. Art. Prohibited Acts Art. Giselle Remulla 3B – 2006-2007 Atty. Sheryl Harina. C. Elvira Castro. female employees as separated the moment they get married. Classification of Certain Women Workers. due to lack of facilities for married women. Azucena (2) education related (3) training related Excluded: Salewoman-Client relations but RPC. Elements: DRR AIMA Demand/Request/Require sexual favor Authority.A. but it likewise assaults good morals and public policy tending as it does to deprive a woman of the freedom to choose her statusl. is void. influence or moral ascendancy over victim Punishes sexual harassment if same is: (1) work related Jojo Baetiong. Gel Baniqued. Sexual Harassment RA 7877 Victim may be male or female. the policy of the firm to consider. DENTAL AND OCCUPATIONAL SAFETY Chapter I MEDICAL AND DENTAL SERVICES Page 63 of 103 . Gualberto v. Independent Civil Actions Employee-employee but file case with company based on company rules Duty of employer or head of office To prevent or deter the commission of acts of sexual harassment and provide procedures for resolution or prosecution of acts of sexual harassment To promulgate rules and regulations prescribing procedure for investigation of secual harassment cases and admin sanctions therefor To create committee on decorum and investiation of cases on sexual harassment BOOK FOUR HEALTH. a privilege that by all accounts inheres in the individual as an intangible and inalienable right. Marinduque Mining (1978) – CA Case Whether pre-employment agreement or company policy.Labor Law I Finals Reviewer connection with her employment. Denise Dy. No employer may require female applicants for jobs to enter into preemployment agreements that they would be dismissed once they get married. 137. Gel Baniqued. Medicines and Facilities: o An employer shall keep in or about his workplace firs-aid medicines. Giselle Remulla 3B – 2006-2007   work-connected. C. Denise Dy. equipment and facilities prescribed by the Department of Labor 5 days from issuance of regulation o The list may be revised anytime by the Bureau of Labor Standards. PREMISES or WORKSITE where the workers are HABITUALLY employed and shall include the office or place where the workers who have no fixed or definite worksite REGULARLY REPORT for assignment in the course of their employment. and NECESSARY. BEFORE more extensive medical and/or dental treatment can be secured. provide details additional to those in the above codal provisions:    Coverage: The Rule shall apply to ALL employers whether operating for profit or not. It does not include continued treatment or follow-up treatment for any injury or illness. IMMEDIATE. Rule I. irrespective of whether or not such injury or illness is Jojo Baetiong. o Workplace – OFFICE. including the Government and any of its political subdivisions and government-owned or controlled corporations. Emergency Medical and Dental Services: Number of Employees Medical and Dental Services Hazardous Non-Hazardous Page 64 of 103 .Labor Law I Finals Reviewer Article 156: Article 157: SERVICES Article 158: REQUIRED Article 159: Article 160: Article 161: Atty. Azucena FIRST-AID TREATMENT EMERGENCY MEDICAL AND DENTAL WHEN EMERGENCY HOSPITAL NOT HEALTH PROGRAM QUALIFICATIONS OF HEALTH PERSONNEL ASSISTANCE OF EMPLOYER COMMENTS The Implementing Rules in Book IV. Elvira Castro. Sheryl Harina. o First Aider – any person trained and duly certified as qualified to administer first aid by PHILIPPINE NATIONAL RED CROSS or any other organization accredited with the former. subject to approval of the Secretary of Labor. medical and dental attention or remedy given in case of injury o sudden illness suffered by a worker during employment. which employ one or more workers Bureau of Dental Health Services of DOH: in charge of the development of dental standards Definition: o First Aid Treatment – ADEQUATE.A. in addition to the requirements of this rule. the required two-hour stay shall be devoted to the workshift which has he biggest number of workers and they shall. in addition to the requirements of this Rule. Sheryl Harina. C. Elvira Castro. be subject to call at anytime during the other workshifts to attend to emergency cases.A. ** In all workplaces where there are more than one workshift in a day. provide for the services of a full-time first-aider for each workshift.Labor Law I Finals Reviewer Graduate First-aider. Giselle Remulla 3B – 2006-2007 Atty. Denise Dy.*  Full-time  Full-time Nurse Registered Nurse  Full-time  Part-time Physician Physician  Full-time Exceeds 300  Part-time Dentist Dentist  Dental Clinic and Shall have same Infirmary OR responsibilities as those provided in Emergency previous box Hospital with One bed capacity for every 100 workers Jojo Baetiong. the employer shall.  Emergency Hospital: An employer need not put up and emergency hospital or dental clinic in the following situations: o Urban Area – where there is a hospital or dental clinic not more than 5 kilometers away from the workplace OR which can be reached by motor vehicle in 25 minutes of travel Page 65 of 103 . Azucena The Physician and the Dentist shall stay in the premises of the workplace for at least 8 hours a day* *Where the establishment has more than one workshift a day. Gel Baniqued. and may be one 10 to 50 in a of the workers in the workplace AND workplace who has immediate access to the firsaid medicine prescribed in Section 3 Exceeds 50 but Full-time Full-time Firstnot more than Registered Nurse aider IF a Nurse is 200 not available  Full-time Registered Nurse  Part-time Physician Exceeds 200  Part-time Dentist but not more  Emergency Clinic than 300 The Physician and the dentist shall stay in the premises for at least 2 hours a day. OR o Any organization accredited by the former Passed the examination given by the Board of Examiners Licensed to practice medicine in the Philippines Preferably a graduate of a training course in occupational medicine conducted by the o Bureau of Labor Standards o Institute of Public Health of UP o Or any organization accredited by the former Passed the examinations given by the Board of Examiners Licensed to practice in the Philippines Preferably has completed a training course in occupational dentistry conducted Page 66 of 103 .A. C.the employer has facilities readily for transporting a worker to the hospital or clinic in case of emergency o The employer must enter into a written contract with the hospital or dental clinic for the use thereof in the treatment of workers in case of emergency. Denise Dy. Training and Qualifications of Medical and Dental Personnel:   Physician Personnel First-aider     Nurse Requirements Must be able to read and write Completed a course in first-aid duly certified by the National Red Cross or any other organization accredited by the same Passed the examinations given by the Board of Examiners Duly licensed to practice nursing in the Philippines and preferably with at least 50 hours of training in occupational nursing conducted by o DOH Jojo Baetiong. Azucena o Rural Area . Sheryl Harina. Elvira Castro. Giselle Remulla 3B – 2006-2007    Dentist  o Institute of Public Health of UP.Labor Law I Finals Reviewer  Atty. Gel Baniqued. Elvira Castro. elevators (passenger and freight). workplaces and undertakings. workplaces and other undertakings except: o Those engaged in land. wheels. sea and air transportation Jojo Baetiong. Exception: Chartered cities may be allowed to assume responsibility for technical safety inspection upon compliance with such standards and guidelines as the Secretary of Labor may promulgate  o Bureau of Dental Services of DOH o OR any organization duly accredited by the former     Opportunity for Training: Hazardous Workplaces Health Program Medical and Dental Records Chapter II OCCUPATIONAL HEALTH AND SAFETY Article 162: SAFETY AND HEALTH STANDARDS Article 163: RESEARCH Article 164: TRAINING PROGRAMS Article 165: ADMINISTRATION OF SAFETY AND HEALTH LAW *Technical Safety Inspection includes inspection for purposes of safety determination of boilers. Gel Baniqued. or process shall also apply to other similar work situations for which NO specific standards have been established. shall be covered by this Rule o Residential places exclusively devoted to dwelling purposes *GR: Department of Labor has jurisdiction to inspect all establishments. hangars. C.Labor Law I Finals Reviewer Atty. dumbwaiters. garages. escalators. means. practice. pressure. operation. COMMENTS The Implementing Rules in Book IV. provide details additional to those in the above codal provisions:  Coverage: The Rule shall apply to ALL establishments. Azucena Provided: that their dry docks. Denise Dy. method. Sheryl Harina. maintenance and repair shops and offices.A. Training of Personnel in safety and Health: Every employer shall take steps to train a sufficient Page 67 of 103 . Rule II. Giselle Remulla 3B – 2006-2007   Work Condition not covered by standards: Any specific standards applicable to a condition. internal combustion engines. and electrical installations in all workplaces. C.A. Such safety man shall be the secretary of the safety committee At least two of its supervisors shall be trained and a full time safety man shall be provided At least one of its supervisors or technical men shall be trained who Jojo Baetiong.Labor Law I Finals Reviewer Atty. Page 68 of 103 . Giselle Remulla 3B – 2006-2007 shall work as part-time safety man. Gel Baniqued. Number of Employees 50 to 400 each shift Over 400 workers per shift 20 to 200 each shift Training Hazardous Non-Hazardous At least one of the supervisors or technical personnel shall be trained in occupational health and safety and shall be assigned as parttime safety man. Elvira Castro. Azucena number of his supervisors or technical personnel in occupational safety and health. that the consultant shall conduct plant visits at least four hours a week and is subject to call any time to conduct accident investigations and is available during scheduled inspections or surveys by the Secretary of Labor or his authorized representatives. * The employment of a full-time safety man may not be required where the employer enters into a written contract with a qualified consulting organization which shall develop and carry out his safety and health activities. Provided. Sheryl Harina. Denise Dy. He shall be the secretary of the safety committee At least two of its supervisors or technical personnel shall Over 200 workers be trained and each shift one of them shall be appointed fulltime safety man and secretary of safety committee therein. CASUALTY or. innovates or installs devices in establishments or workplaces shall comply with the provisions of this Rule and all regulations issued by the employer in compliance with the provisions of this Rule and other subsequent issuances. or DEATH of workmen through INDUSTRIAL ACCIDENT. based on the loss of earning power. including builders or contractors. of the Secretary of Labor. Giselle Remulla 3B – 2006-2007 EMPLOYEES’ COMENSATION AND STATE INSURANCE FUND Chapter I POLICY AND DEFINITIONS Article 166: POLICY COMMENTS AND CASES 1. who visits. Sheryl Harina. DISEASE. as differentiated from “compensatory damages” recoverable in an action at law for breach of contract or for tort Amount of Compensation generally determined in accordance with a definite schedule. DISABLEMENT. Denise Dy. Compensation means the money relief afforded according to the scale established under the statute. Elvira Castro.Labor Law I Finals Reviewer Atty. Azucena * The provisions of this Section shall be made mandatory upon orders of the Secretary of Labor as soon as he is satisfied that the adequate facilities on training in occupational safety and health are available in the Department of Labor and other public or private entities duly accredited by the Secretary of Labor    General duties of workers: o Every worker shall cooperate with the employer in carrying out the provisions of this Rule o Every worker shall make us of ALL safeguards and safety devices furnished in accordance with the provisions of this Rule for his protection and the protection of others and shall follow ALL instructions made by the employer in compliance with the provisions of this Rule. builds. OVERVIEW: WORKMEN’S COMPENSATIONS PROGRAM AND SIF Workmen’s Compensation is a general and comprehensive term applied to those laws providing for compensation for loss resulting from the INJURY.A. C. Duties of Other persons: Any person. Gel Baniqued. Training TITLE II Jojo Baetiong. the usual provision being for the payment of a specified amount at regular intervals over Page 69 of 103 . Giselle Remulla 3B – 2006-2007 Atty. Direct Payment Statutes – payment by the employer 2. surgical. not only for employees a remedy which is both expeditious and independent of proof of fault. Based on the Idea that liability arising out of employer’s negligence is inapplicable to modern conditions of employment because of highly organized and hazardous industries of modern times. expense. private company b. nursing. and ultimately to the consuming public. Denise Dy. C. Statutorily given Right which both create and measure the right Source of Compensation: 1. It is for the benefit of the EMPLOYEES and not the employer It is not Charity but a recognition of a moral duty and erection of it into a legal obligation of the PUBLIC not only of that of the employer. the theory of negligence is discarded as the basis of liability. Provision is also made. in most instance. for the furnishing of medical. the amount is limited to a given schedule. or accidental injury to. hospital. and in general a right to compensation is given for all injuries incident to the employment. Elvira Castro. and hardship attendant upon the enforcement of court remedies  Transfer from the worker to the industry in which he is employed.A. and burial services in addition to independently of the payment of compensation. Basically. Insurance Statutes a.Labor Law I Finals Reviewer a definite period. but also for employers a liability which is limited and determinate. a greater proportion of the economic loss due to industrial accidents and injuries. an insurance bureau operated by the state ii.  Improve the relations between employers and employees by avoiding or reducing the friction incident to litigation. require and employer to contribute to a compensation fund – Page 70 of 103 . Primary Purpose is to provide compensation for disability or death resulting from occupational injuries or diseases. Sheryl Harina. Purpose  Improve the economic status of the worker Jojo Baetiong. delay. require the employer to take out insurance either with i. employees. Gel Baniqued. Azucena  Obviate uncertainties.  Provide. or death of. Further litigation causes expense and delays that defeats justice and antagonisms between employer and employee. The causes of injuries are often so obscure and complex that it is usually impossible to ascertain the fact to from an accurate judgment. Compensation is in the form of medical supplies and services and/or cash income if employee is unable to earn because of injury of disease. Within 5 days after entry report the sickness. Because it took effect on January 1.A. 4. PD 626 AND ITS EFFECTIVE DATE PD 626 amended extensively the Labor Code provisions on ECC and SIF. sickness or death is work related or not. It applies only prospectively. If SSS or GSIS is reversed the two systems cannot appeal to the high court. All covered employers are required to remit to a common fund a monthly contribution equivalent to one percent of the monthly salary credit of every covered employee.PD 626 does not infringe upon the worker’s constitutional rights. For those contracted before said date the applicable law is the workmen’s compensation act its commission was finally abolished on March 31. Sarmiento vs. Giselle Remulla 3B – 2006-2007 Atty. Sheryl Harina.Labor Law I Finals Reviewer State Insurance Fund the Labor Code adopts the compensation fund type. The employee pays NO contribution into the fund. VALIDITY OF PD 626: NATURE OF THE STATE INSURANCE FUND Jose B.must enter notice in the logbook 3. Injury befalls the employee 2. et. b. Within 5 days must notify employer. a. if notification is required. agreement to the contrary is VOID and PROHIBITED. appealable to the SC in limited cases b. The said new law discarded the concepts of “presumption of compensability” and “aggravation” to restore what the law believes as a sensible equilibrium between the employer’s obligation to pay and the employee’s right to receive reparation The new law establishes a state insurance fund built up by the contributions of employers base don the salaries Page 71 of 103 . which is the policy making body. 1976. The claim is decided by the SSS or GSIS. SSS in private sector or. Employees’ Compensation Commission. Death benefits and funeral benefits are also given. GSIS in public sector Note: The employer INITIALLY decided whether the injury. 1975 it applies to illness contracted on or after that date. who in turn . Azucena executory. . Decisions of the two administering agencies are appealable to the Employees’ Compensation Commission. Elvira Castro. Denise Dy. If the result of the appeal is favorable to the employee becomes final and Jojo Baetiong. 3. injury or death deemed work connected to: a. al. Process: 1. within 30 days. 2. Gel Baniqued. C. 1. The amount of death benefits has also been doubled. Thus. Atty. At the time the amount of the contributions was being fixed. 4. The injured workers does not have to litigate his right to compensation. Giselle Remulla 3B – 2006-2007 Workmen’s Compensation Act Presumption of Compensability – once it is proven that injury or disease arose in course of employment Rule that if ailment aggravated by work employer becomes liable Requires the employer to controvert the claim within 14 days from disability or 10 days from knowledge otherwise considered waived Employees’ Compensation Law Abolished Abolished No need to controvert because the claim is against the SIF not the employer Page 72 of 103 . C. No employer opposes his claim. Benefits are paid from this trust fund. There is no notice of injury nor requirement of controversion.Social Insurance Employees compensation is based on social security principles. The payment of benefits is more prompt. Gel Baniqued. All covered employers throughout the country are required to contribute fixed and regular premiums or contributions to a trust fund for their employees. Elvira Castro. The cost of administration is low.Labor Law I Finals Reviewer of their employees.2.Trust Fund It is now the trust fund and not the employer that suffers if benefits are paid to the claimants who are not entitled under the law. The sick worker simply files a claim with a new neutral ECC which then determines on the basis of employee’s supporting papers and medical evidence whether or not compensation may be paid.A. Sheryl Harina. Azucena actuarially determined number of workers who would probably file claims within any given year is important in insuring the stability of the trust fund and making certain that the system can pay its benefits due to all who are entitled and in the increased amounts fixed by law. The Jojo Baetiong. Denise Dy. 3. WORKMEN’S COMPENSATION ACT DISTINGUISHED FROM EMPLOYEES’ COMPENSATION LAW 3. actuarial studies were undertaken. The employer is spared the problem of proving a negative proposition that the disease was not caused by employment. if diseases no intended by the law to be compensated are inadvertently or recklessly included the integrity of SIF is endangered. The employer joins the employee in trying to have their claims approved. Gel Baniqued. especially where there is some basis in the facts for inferring a work-connection to the accident. Article 167: DEFINITION OF TERMS Page 73 of 103 . as it hereby resolves. This kind of interpretation gives meaning and substance to the compassionate spirit of the law as embodied in Article 4 of the New Labor Code. the risks peculiar to the nature of the work in the scope of the workmen’s employment or incidental to such employment. adopted on July 5. the evidentiary details of his injury. Any illness definitely accepted as an occupational disease listed by the Commission 2.1. Elvira Castro. it must be result form or must have resulted: 1. Any illness caused by employment subject to proof that the risk of contracting the same is increased by working conditions 5. it is not the intention of the legislature the insurer against all accidental injuries which might happen to an employee while in the course of the employment. Giselle Remulla 3B – 2006-2007 The ECC should adopt a liberal attitude in favor of the employee in deciding claims for compensability. provided that Jojo Baetiong.Labor Law I Finals Reviewer Atty. Denise Dy. or death. Under the present law for an employee to be entitled to sickness. injury or death benefits. and accidents in which it is possible to trace the injury to some risk or hazard to which the employee is exposed in a special degree by reason of such employment. However. but only for such injuries arising from. to approve the adoption of a policy that the moment an AFP member suffers a contingency. Presumption of Compensability has been restored through Resolution No 3906. or growing out of. by the attending physician or duly authorized representatives of the hospital where he is brought for medical treatment. LIBERAL INTERPRETATION The list of occupational diseases is in Annex A of the ECC Rules in the Appendix. 1988 by the ECC which states: This board resolves. the presumption is that it is because of the nature of his work.Presumptive Compensability for AFP Members and Policemen In a limited sense. Azucena The old law destroyed the parity or balance between the competing interests of employer and employee with respect to workmen’s compensation. are clearly established through duly issued medical certifications on his injury or injuries. The balance was tilted unduly in favor of the workmen since it was possible to stretch the work-related nature of an ailment beyond the seemingly rational limits. C. Sheryl Harina.A. or death. 4. the employee must have been injured at the place where his work requires him to be. not necessary that inherent (liberal view). if the injury is sustained elsewhere.” An uncompromising insistence on an independent application of each of the Jojo Baetiong. Rule III. Denise Dy. C. the employee must have been executing an order for the employer 2. Again. It has been stated that an accident arise out of employment if it ensues from a risk reasonably incident to the employment. Giselle Remulla 3B – 2006-2007 Arising out of refer to the origin or cause of the accident and are descriptive of its character In the course of the Employment – when it takes place within the period of the employment. 2. the basic concept of compensation is unitary and is best expressed by the word. the view has been taken that an injury arises out of the employment if the employment is one of the contributing causes without which the accident which actually happened would not have happened. the employee must have been performing his official functions. COMPENSABLE WORK-RELATED INJURY DEFINED What is compensated is not the injury or the disease itself but the attendant loss or impairment of earning capacity. and to have flowed from that source as a rational consequence. and while he is fulfilling his duties or is engaged in doing something incidental thereto Accident need not be foreseen or expected it is sufficient that after the event it appears to have its origin in a risk connected with employment.A. MEANING OF “ARISING OUT OF” AND “IN THE COURSE OF” THE EMPLOYMENT Although it has been said that the coverage formula is composed of two separate tests. Sheryl Harina. the injury must be the result of an employment accident satisfying all the following grounds: 1. Elvira Castro. Azucena two portions of the test can exclude clearly workrelated injuries. “work-connection. The position has also been taken that an Page 74 of 103 . at a place where the employee reasonable may be.Labor Law I Finals Reviewer COMMENTS AND CASES Atty. Section 1(a): For the injury and the resulting disability or death to be compensable. 1. Gel Baniqued. and 3. Nature and Degree of relation there is an existing conflict of views whether should be inherent to the employment (conservative view) or it is sufficient that employee was exposed by reason of employment. and if it is in some sense due to the employment. where the latter is expressly included in the terms of employment 3. and must have been adequate to produce the resultant damage without the intervention of an independent cause.Labor Law I Finals Reviewer accident arises in the course of employment if it had its origin there in the sense that it was the end-product of a force or cause set in motion in the course of employment. C. 3. every natural consequence that flows from the injury likewise arises out of the employment. But she is not to blame for her inability to afford a hospital delivery and the services of a trained doctors and nurses.Illustrative Case: Proximate Cause Belarmino vs. but also reasonable margin of time and space necessary to be used in passing to and form the place where the work is to be done. Her fall was the proximate or responsible cause that set in motion an unbroken chain of events leading to her. Simply stated. all medical consequences and sequels that flow from the primary injury are compensable. Jojo Baetiong. It must be that which sets the others in motion and is to be distinguished from a mere preexisting condition upon which the effective cause operates. Employees’ Compensation Commission – The condition of the classroom floor caused Mrs. Sphere of Employment varies. time and place of and the circumstances surrounding its occurrence. that she probably would not have suffered lacerations of the vagina and would not have contracted the fatal infection. Denise Dy. PROXIMATE CAUSE It is the sufficient cause. employment includes not only the actual doing of work. Page 75 of 103 . Penury compelled the deceased to scrimp by delivering her baby at home instead of the hospital. Gel Baniqued. Not necessary it should have occurred during hours of active labor or in premises or within control of employer. demise. No Precise Formula for Sphere of Employment: Generally. Sheryl Harina.1. unless it is the result of an independent intervening cause attributable to claimant’s own negligence or misconduct. Her fall on the classroom floor brought about her premature delivery which caused the development of septicemia postpartum which resulted in death. Azucena Where the primary injury is shown to have arisen in the course of employment. The fall precipitated the onset of recurrent abdominal pains which culminated in the premature termination of her pregnancy with tragic consequences to her.A. Giselle Remulla 3B – 2006-2007 Atty. which may be the most remote of an operation chain. Elvira Castro. Belarmino to slip and fall and suffer injury as a result. True. dependent upon the nature of the work and terms and conditions in the hiring contract. 2. In the absence of such as in the case of Hinoguin and Nitura. This is a place where soldiers have secured lawful permission to be and cannot be very different from a place where they are required to go by their commanding officer. A soldier must go where his company is stationed. Hinoguin that resulted from his being hit by an accidental discharge of his companion’s rifle arose out of and in the course of his employment as a soldier on active duty status in the AFP. Sgt. Sheryl Harina. Hinoguin and his companions were not on vacation leave. The concept of “workplace” cannot always be literally applied to a soldier on active duty status. Elvira Castro. CA and F. and hence compensable. GSIS vs.3. ECC and ECC vs. while it relaxes the workplace factor does not dispense with the work-connection requisite. Gel Baniqued. A soldier should be presumed to be on official duty unless he is shown to have clearly and unequivocally put aside that status or condition temporarily by.Labor Law I Finals Reviewer 3. was intrinsically private and unofficial in nature proceedings as it did from no particular directive or permission from his superior officer.The 24-Hour Duty Doctrine and Its Qualifications. as in Alavaran. 3. But this doctrine. Employee’s Compensation Commission – The death of Sgt. ECC. e. it can be gleaned that the Court did not justify its grant of death benefits merely on account of the rule that soldiers or policemen. the matter SPO2 Alegre was attending to at the time he met his death that of ferrying passengers for a fee. or peacekeeping nature of the act attended to by the policeman at the time he died even without the explicit permission or directive of a superior officer. Note that the court likewise attempted in each case to find reasonable nexus between the absence of the deceased from his assigned place of work and the incident that led to his death. C. CA). Giselle Remulla 3B – 2006-2007 Atty. They are authorized to carry their firearms with which they were to defend themselves if NPA elements happen to attack them. Nitura vs. are virtually working round-the-clock.Arising Out/In the Course of Employment Hinoguin vs. as the case may be. there is no justification for holding that SPO2 Alegre met the requisites set forth in the ECC guidelines. Azucena clock. going on approved vacation leave. Hinoguin and his companions had permission to proceed to Aritao. Moonlighting Policemen Soldiers and policemen and even firemen by the nature of their work may be considered on duty round-theJojo Baetiong.g. Obviously.A. Even vacation leave may be preterminated by superior officers. Denise Dy. At any rate the 24-hour duty doctrine serves more as an after-the-fact validation of their acts to place them within the scope of the guidelines rather than a blanket Page 76 of 103 . Alegre – From the cases (Hinoguin vs. Labor Law I Finals Reviewer license to benefit them in all situations that may give rise to their deaths. In other words, the doctrine should not be sweepingly applied to all acts and circumstances causing the death of the police officer but only to those which, although not on official line of duty, are nonetheless, basically police service in character. 3.4.The “24-Hour Duty” Doctrine Requires WorkConnection; “Police Service” Activities Valeriano vs. Employees’ Compensation Commission and GSIS – Petitioner Valeriano was not able to demonstrate solidly how his job as a firetruck driver was related to the injuries he has suffered. That he sustained the injuries after pursuing a purely personal and social function – having dinner with some friends. Because he was neither at his assigned work place nor in pursuit of the orders of his superiors when he met an accident and more importantly was not doing an act within his duty and authority as a firetruck driver, or any other act of such nature, at the time he sustained his injuries. There is not any reasonable connection between his injuries and his work as a firetruck driver. 4. INGRESS-EGRESS/PROXIMITY RULE The general rule in workmen’s compensation law known as “going and coming rule,” simply stated, is that “in the absences of special circumstances, an employee injured in, going to, or coming from, his place of work is Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla 3B – 2006-2007 Atty. C.A. Azucena excluded from the benefits of workmen’s compensation acts.” Exceptions: 1. Where the employee is proceeding to or from his work on the premises of his employer 2. Where the employee is about to enter or about to leave the premises of his employer by way of the exclusive customary means of ingress and egress (Proximity Rule) 3. Where the employee is charged, while on his way to or from his place of employment or at his home, or during his employment, with some duty or special errand connected with his employment. 4. Where the employer, as an incident of the employment, provides the means of transportation to and from the place of employment. Iloilo Dock & Eng’g. Co. vs. WCC – The point where Pablo was shot was barely twenty meters away from the main IDECO gate, certainly nearer that a stone’s throw therefrom. The spot is immediately proximate to the IDECO’s premises. Considering the fact, and further facts that Pablo has just finished overtime work at the time, and was killed barely two minutes after dismissal from work and the place was immediately proximate to Page 77 of 103 Labor Law I Finals Reviewer the place of work, the accident in question must be deemed to have occurred within the zone of employment and therefore arose out of and in the course thereof. Bountiful Brick Company vs. Giles – Employment includes not only the actual doing of work, but reasonable margin of time and space necessary to be used in passing to and from the place where the work is to be done. If the employee be injured while passing, with the express or implied consent of the employer, to or from his work by a way over the employer’s premises, or over those of another in such proximity and relation as to be in practical effect a part of the employer’s premises, the injury is one arising out and in the course of the employment as much as though it had happened while the employee was engaged in his work at the place of its performance. 5. “GOING TO OR COMING FROM WORK” RULE Resolution No. 3914-A, July 5, 1988 – extending the compensable coverage of off-premises injury from near the premises up to the residence of the employee. The resolution provides that an injury or death of a covered member in an accident while he is going to, or coming from, the workplaces, shall henceforth be duly considered compensable provided the following conditions are established definitely: Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla 3B – 2006-2007 Atty. C.A. Azucena 1) The act of the employee of going to, or coming from, the workplace, must have been a CONTINUING ACT, that is, he had not been diverted therefrom by any other activity, and he had not departed from his usual route to, or from, his workplace; and 2) Re: an employee on an special errand, the special errand must have been official and in connection with his work. 5.1.Accident on the Way to Work Alano vs. ECC – Dedication was a school principal. Her tour of duty was from 7:30am to 5:30pm. While waiting for a ride at a public plaza on her way to school, she was bumped and run over by a speeding bus which caused her death. The deceased died while going to her place of work. She was at the place where her job necessarily required her to be if she was to reach her place of work on time. There was nothing private or personal about her being at the place of the accident. She was there because her employment required her to be there. 5.2.Accident on the Way Home Lazo vs. Employees’ Compensation Commission – Here Lazo left his station at the Central Bank several hours after his regular time off, because the reliever did not arrive, and so he was asked to go on overtime. After Page 78 of 103 Labor Law I Finals Reviewer permission to leave was given, he went home. There is no evidence that eh deviated from his usual, regular homeward route or that interruptions occurred in the journey. Employment includes not only the actual doing of the work, but a reasonable margin of time and space necessary to be used in the passing, with the express or implied consent of the employer, to or from his work by a way over the employer’s premises, or over those of another in such proximity and relation as to be in practical effect a part of the employer’s premises, the injury is one arising out of and in the course of the employment as much as though it had happened while the employee was engaged in his work at the place of its performance. 6. INJURY AT PLACE OF EMPLOYMENT NOT NECESSARY ELEMENT OF COMPENSABILITY For an injury to be compensable, it is not necessary that the cause therefore shall take place within the place employment. If a workman is acting within the scope of his employment, his protection “in the course of” employment usually continues regardless of the place of injury The use of streets by the workman merely to get to or from his work stands on a different footing altogether, but as soon as it is established that the work itself involves exposure to the perils of the streets, the workman can recover for any injury so occasioned. The Jojo Baetiong, Gel Baniqued, Elvira Castro, Denise Dy, Sheryl Harina, Giselle Remulla 3B – 2006-2007 Atty. C.A. Azucena fact that street perils are common to all mankind is immaterial In fine, the general rule is that the accident should have occurred at the place of work and this is known as the “direct premises rule.” Exceptions among others are the “Coming-and-going rule” and the “Ingress and egress/proximity rule 7. INCIDENTS OF EMPLOYMENT It is settled that injuries sustained in connection with acts which are reasonably incidental to the employment are deemed as arising out of such employment. 1) Acts of personal ministration for the comfort or convenience of the employee 2) Acts for the benefit of the employer 3) Acts done to further the goodwill of the business 4) Slight deviations from work, from curiosity or otherwise 5) Acts in emergency 8. ACTS OF MINISTRATION Acts of Ministration are those done by a person for the purpose of satisfying the call of nature, such as: quenching his thirst, relieving himself by way of urination or excretion etc. They are deemed to be incidents of employment and necessary to the health of Page 79 of 103 in view of all the circumstances is reasonable incident to the employment. 8. Denise Dy. departs from. was not an injury arising out of and in the course of employment 9. Page 80 of 103 . Sheryl Harina. while generally an accidental injury to an employee is not covered by workmen’s compensation as being one arising out of and in the course of employment if it occurs OFF the employer’s PREMISES while the employee is going or coming from lunch on UNPAID TIME.1.3. or breaks his employment so as to deprive himself of the right to compensation for any injury sustained while so resting generally depends upon whether such resting. ACTS FOR THE BENEFIT OF EMPLOYER The relation of master and servant is ordinarily suspended during the period that the employee is off duty and.While Doing Work at Home Injuries sustained by an employee at his own home or upon his own premises. C. there are exceptions 8. be compensable as arising out of and in the course of the employment. by resting during work hours. Gel Baniqued. Such rule is not affected by the fact that the employee is paid by the hour and receives no pay for the period covered by such intermission. Azucena It has been held that an injury received at a union meeting held during a lunch period at the plant for the purpose of electing a shop steward.1. so that injuries sustained thereby are compensable.Union Meeting Jojo Baetiong.Lunch Period Thus.Rest or Refreshment The general rule is that injuries occurring to an employee during an intermission or break for rest or refreshment arise in the course of the employment and are compensable. nevertheless. Elvira Castro. the shop steward system being recognized by the employer in its contract with the union. 8.A.2. and is generally held to be so where the employee was at the time engaged in the performance of some service for the benefit of the employer in connection with his usual duties.Labor Law I Finals Reviewer the employee. However. in connection with the performance of the duties of his employment. abandons. are generally held to be compensable where such work is done there pursuant to the terms of the contract. 9. Giselle Remulla 3B – 2006-2007 Atty. Whether an employee. the general rule is that injuries occurring before or after regular working hours are not within the course of employment. an injury sustained by an employee outside his regular working hours or during a temporary stoppage or cessation of work may. under some circumstances. Therefore. particularly where an emergency existed c. This is because the company vehicle is an extension of its premises 10. Denise Dy. C. or pursuant to the direction or request of the employer. According to many authorities the following are injuries arising out of and in the corus of his employment and entitling the employee to compensation: 1) Outside the scope of his usual duty a.Labor Law I Finals Reviewer Atty. WHILE TRAVELING 11. WHILE LIVING. render such injury compensable as arising out of or in the course of the employment where such residence on the employer’s premises is merely permissive and not required. Even without emergency. b. at the time of the occurrence of the Page 81 of 103 . OR LODGING ON PREMISES OF EMPLOYER. BOARDING. Elvira Castro. Azucena express or implied.k. and upon whether the employee. or where the injury results from a risk or danger which is not reasonable incidental to employment. EXTRA-PREMISES RULE a.A. or which is reasonably incidental thereto. as in other cases generally. direct orders or reasonable necessity. SPECIAL ERRAND RULE 13. upon whether the injury results from a risk which is inherent in the nature of the employment. but not where it is there performed voluntarily by the employee for his own convenience or benefit. 14.a. Shuttle Bus Rule – Where a company which provides the means of transportation in going to and coming from the place of work is liable for the injury sustained by employees while on board said means of Jojo Baetiong. Giselle Remulla 3B – 2006-2007 The right to compensation depends. ACTS DURING EMERGENCY An injury sustained by an employee outside the company premises is compensable if his being out is covered by an office order or a locator slip or pass for official business. if it was done in the furtherance of the employer’s business or in pursuance of a habit or custom 12. transportation. OR AT WORKING PLACE The mere fact that an employee was living on the employer’s premises at the time of injury does not ordinary of itself. Sheryl Harina. Gel Baniqued. Even in the absence of orders when such act is reasonably necessary or incidental to his regular work. Which the employer has expressly ordered to do by someone authorized to direct him as to his work or. or which the employee is specially exposed. it was held that his it was held that such injuries arose out of and in the course of employment. he or she is deemed in the course of employment. Dual Purpose Dual Purpose Doctrine considers as compensable an injury that an employee sustains while on a trip undertaken for the benefit of the employer even if in the course thereof the employee pursues also a personal purpose Resolution No. whether he was at the place where he was authorized or required by such contract to be. Purpose and Effect Thereof . but the compensability of an injury occurring after the deviation has ended and the employee is again in the course of his employment is not ordinarily affected thereby. 1999 – the doctrine may be applied in the adjudication of employees compensation claims. and that he used such vehicle in the performance of his duties to his employer.A. Gel Baniqued. Azucena 14. Schedule. Sheryl Harina. or Mode of Travel Non Compensability of Deviation depends upon the Extent. EMPLOYER-SPONSORED ACTIVITIES The Test Jojo Baetiong. Elvira Castro. 99-08-0469.2.1. was engaged in the exercise of some functions or duties reasonably necessary or incidental to the performance if the contract of employment. or. Effect of Deviation from Route.3. albeit the employee serves at the same time some personal purpose. August 31.Labor Law I Finals Reviewer accident. Giselle Remulla 3B – 2006-2007 Page 82 of 103 . 14. if not actively engaged.An unauthorized deviation may preclude recovery of compensation for an injury caused by an added peril to which the employee is thereby exposed during the period of the deviation. C. Where Employee Uses Own Vehicle Which He Also Uses in Performance of Duties In some cases in which it appeared that an employee was using his own vehicle at the time he was injured in an accident while going to or from work. The requirement is that the services of the employer is at least a concurrent cause of the trip of the employee 15. The application. Denise Dy. however. is subject to the following guidelines: The Test in the applicability of the dual purpose doctrine: The test is that is ordinarily employed for determining liability in such a case is that if the work of the employee tends to create necessity for travel. Effect of Mingling of Purposes of Employer and Employee. Atty. 14. all of the circumstances present in the case should be taken into consideration in order to be able to determine whether or not a causal connection exist between his death and the conditions under which he necessarily had to fulfill his duties. Recreational Activities fall under the so-called “special engagement rule” which is one of the exceptions to the “direct premises rule. Gel Baniqued. *Considered as an incident of employment 16. and picnics when initiated or sanctioned by the employer.A. since the word “accident” is intended to indicate that “the act causing the injury shall be casual or unforeseen. Liberal Interpretation 17. Employer is held liable for compensation because were it not for the order the employee would not have been at said position or location which exposed him to the said danger. Denise Dy. In investigating whether or not the death of an employee arose out of his employment. C. ASSAULT Assault although resulting from a deliberate act of the slayer. when one in the course of his employment is reasonably required to be at a particular place at a particular time and there meets an accident. outings. Exception: Positional and Local Risks. that accident is one “arising out of the employment” of the person so injured. intramurals. Sheryl Harina. or whether the employer had some interest in the activity. the injury is compensable as arising out of and in the course of employment where the recreation indulged was fostered and encourages by the employer to the end of efficiency of the service. Where an employee is injured while at recreation during a temporary cessation of work. Accidents befalling employees on those occasions are compensable.Labor Law I Finals Reviewer Whether the recreation was for the employee’s exclusive benefit. Giselle Remulla 3B – 2006-2007 Atty. although one which any other Jojo Baetiong. when the employee has not been exposed to a greater danger than usual. an act for which the injured party is not legally responsible” Where the duties of an employee entail his presence (at a place and a time) the claim for an injury there occurring is not to be barred because it results from a risk common to all others…unless it is also common to Page 83 of 103 .” This exception covers field trips. Elvira Castro. is considered an “accident” within the meaning of the Workmen’s Compensation Act. ACTS OF GOD OR FORCE MAJEUR General Rule: The employer is not responsible for accidents arising from force majeur or an act of God. Azucena person then and there present would have met irrespective of his employemtn. or pursuit. a rational mind is able to trace the injury to a cause set in motion by the nature of the employment. The SC reasoning that it was merely a continuation or extension of the quarrel that begun within. no question of the injured employee’s own culpability being involved. 1988: The moment an AFP member suffers a contingency. and independently of place. therefore killed by such insurgents at every opportunity. ECC Case No. Work as bus driver. Jobs having to do with keeping the peace or guarding property 2. and 4. Sheryl Harina.Labor Law I Finals Reviewer the general public without regard to such conditions. or some condition. 18. Gel Baniqued. more particularly the insurgency problem. the presumption is that it is because of the nature of his work. GSIS. When a quarrel had its origin at work. from the evidence presented. promulgated November 9. “Increased Risk” Jobs 1. 4310. 18. or street car conductor. that continuity of the case had been so combined with continuity in time and space “that the quarrel from origin to ending must be taken as one” 17. C. Jobs having to do with keeping or carrying of money which subject the employee to the risk of assault because of the increased temptation to robbery Jojo Baetiong. taxi driver.1. and not by some other agency. is compensable where. like that of a bartender. obligation or incident therein. Police officers are also targets of the insurgents an other lawless elements. Elvira Castro. Giselle Remulla 3B – 2006-2007 Atty. Jobs which expose the employee to direct contact with lawless and irresponsible members of the community. employment. “Presumptive Compensability” Not Applicable Page 84 of 103 . PRESUMPTIVE COMPENSABILITY Quebec vs. NPA VICTIMS. it has become generally perceptible that on account of the nature of their work.1. or by a third person. Denise Dy. injury from assault committed outside the work premises is deemed compensable.A. as the result of an assault upon his person by another employee. Jurisprudence is to the effect that injuries sustained by an employee while in the course of his employment. Same problem is true to the members of the police force. Azucena 3. members of the AFP have become “marked men” insofar as insurgents and other lawless elements are concerned and are. This policy is “adopted because of certain serious peace and order problems of the country. Giselle Remulla 3B – 2006-2007 21. however. GSIS. Where the violation was not intentional but due to carelessness or negligence. OCCUPATIONAL OR COMPENSABLE DISEASE Sickness any illness definitely accepted as an occupational disease listed by the Commission. vs. 19. (Occupational diseases found in ECC Rules. C. Azucena 20. appended to the book. if the injury results from intoxication whether or not the company rule is violated. or any illness caused by employment subject to proof by the employee that the risk of contracting the same is increased by working conditions. Denise Dy. Hawaiian-Philippine CO. et.1. the Commission is empowered to determine and approve occupational diseases and work-related illnesses that may be considered compensable based on peculiar hazards of employment. Book IV) 21. 1989: Presumption applied in the Quebec case was not applied because said presumption only attaches when the members of the AFP are killed by insurgents or lawless elements because of the mere fact that they are soldiers. It will be seen under Art. Gel Baniqued. promulgated on March 29. Where there is serious doubt that the prohibition was known to the employees injured. Employee’s Compensation Commission. There can be no question that horseplay or larking is unfortunately too common in factory life. EFFECTS OF VIOLATION OF RULES Acts within the sphere of employment but carried out in violation of some employer-promulgated rules are compensable. DEFINED. ECC Case No. 1. Elvira Castro. 3. or otherwise excluded from coverage of law. al: “Nature” means conditions to which all employees of Page 85 of 103 . 172 that the disability or death is not compensable if it is caused by the employee’s intoxication. Jojo Baetiong. Where the violation of the rule itself did not bring about the cause of the accident 2. WCC: If the injury or death was the result of horseplay or larking among employees. notorious negligence. For this purpose. In the case at bar Jahuran’s heirs were denied compensability although he was killed by another member of the Philippine Constabulary because evidence revealed the indeed the incident was brought about by personal conflicts. the courts have declared the same as a compensable accident. Atty. Occupational Disease Menez vs.Labor Law I Finals Reviewer Jahuran vs. willful intention to injure or kill himself or another. WHEN NOT COMPENSABLE Although violation of company rules does not necessarily defeat compensability it will be a different matter. SICKNESS. Sheryl Harina. 3551.A. Narazo vs. Duties of Employer Regarding Occupational Disease Under Rule III. those things which science and industry have not yet learned how to eliminate. The degree of proof required is merely substantial evidence which means such relevant evidence as will support a Jojo Baetiong. Giselle Remulla 3B – 2006-2007 Quantum of Evidence: to prove the cause of the ailment or the increased risk from the job “can obviously be determined only on a case-to-case basis” Limbo vs.2. the claimant must show proof of reasonable workconnection.Labor Law I Finals Reviewer a class are subject and which produce the disease as a natural incident of a particular occupation. and attach to that occupation a hazard which distinguishes it from the usual run of the occupation and is in excess of the hazard attending the employment in general. Illustrative Case: Increased Risk Shown Clemente vs. and infect the urinary tract. Sec. yet the basic rules that mere allegations is not evidence cannot be disregarded. Although strict rules of evidence are not applicable. Illustrative Case: Increased Risk Not Shown 22. 21. ECC: (Uremia) Deceased was a Budget Examiner. C.A. ECC: Absence of the sickness from the list of Occupational Diseases is not a bar to petitioner to claim Page 86 of 103 . that is. Every worker in every plant of the same industry alike constantly exposed to the danger of contracting a particular occupational disease. the employer is bound to require preemployment examination of employees exposed to occupational diseases. To be an occupational disease it must be one due wholly to causes and conditions which are normal and constantly present and characteristic of the particular occupation. prolonged sitting down and putting off urination result in stagnation of urine. THEORY OF INCREASED RISK Increased Risk Theory – to establish compensability. Elvira Castro. This encourages the growth of bacteria in the urine. Atty. From human experience. not necessarily direct causal relation. 22. or clear and convincing evidence. Delayed excretion may permit the retention and survival of microorganisms which multiply rapidly. Denise Dy. 2 of the Amended ECC Rules. Gel Baniqued.2. and affects the delicate balance between bacterial multiplication rates and the host defense mechanisms. Azucena decision. 22. Sheryl Harina. GSIS: Working as a cleaner in a skin clinic whereas the deceased was exposed to different carriers of viral and bacterial diseases.1. Asbestosis Guidelines: 1. which was his way of warding off sleepiness. since proof is required only when the cause of the disease is known. pleural thickening.g. even professional experts have not as yet determined its cause. the claim therefore must be filed with the System within (3) years from discovery 23. Adenocarcinoma of the Ileocaecal Junction A malignancy affecting a certain portion of the small intestines. 3. there is no duty on the part of the claimant to present proof. or asbestos-related disease. it is not listed as an occupational disease. GSIS: Aside from the undisputed fact that deceased was a heavy coffee drinker. The petitioner must. The chest x-ray report of the employee must show findings of asbestos. 23. Giselle Remulla 3B – 2006-2007 Atty. Denise Dy. prove that his wife’s ailment was caused by her employment or that her working conditions increased the risk of her contracting fatal illness. ECC: Parotid carcinoma or cancer of the salivary glands is not an occupational disease considering the deceased’s employment as accounting clerk and later as manager of the budget division. employees are equally exposed to similar conditions but have not been victims of peptic ulcer. Many. Sarmiento vs. in case the ailment is discovered after the employees’ retirement/separation from the service.2. (e.1. plural plaques. neoplasm and interstitial fibrosis. C. or by a medical institution. if not most.3. Sheryl Harina. the employee must have been exposed to asbestos dust in the workplace.Labor Law I Finals Reviewer so long as he can probe that the risk of contracting the illness was increased by his working conditions. The evidence presented by petitioner that her field trips necessitated her to take frequent plane travels which caused defeaning and numb sensation in the ears were held by the court as mere conjectures and not sufficient to grant her relief. Despite scientific advances on the matter. In determining whether a disease is compensable. or accredited by the System 2. Gel Baniqued. Dabatian vs. The Supreme Court takes notice of the fact that the conditions in this case are not peculiar to the work mentioned therein. Elvira Castro. as duly certified to by the employer. Jojo Baetiong. it is enough that there exists a reasonable work connection as the workmen’s claim is based on probability and not on certainty. effusion. SPECIFIC DISEASES/AILMENTS 23. or competent medical practitioner acceptable to. therefore. Since its cause is not known. no evidence was ever adduced by claimant to bolster the theory that her husband’s work increased the risk of contracting the ailment. Bangungot Page 87 of 103 .A. Azucena 23. in plywood. Chronic Osteomylitis* 23. suffered “two attacks of vaginal bleeding and hypogastric pain” attributing said ailment to the lifting of heavy tax declaration books. dated April 13.12.9. carpenters and employees. is listed as a work-related disease 23. 1977. Diabetes Mellitus. Azucena Metastases to the gastrointestinal Tract and lungs is listed as occupational disease only among workers in pulp and paper mills and plywood mills.11. Anxiety Neurosis.Labor Law I Finals Reviewer The exact cause of death is still unknown. Cancer of the Stomach In ECC Resolution No. 23. still. cancer of the stomach and other lymphatic and blood forming vessels is considered occupational only among wood-workers.A. cardiovascular disease. 247-A. Gel Baniqued. But even if the deceased died of “bangungot”. C. pulp and paper mills. ECC: Records reveal that petitioner’s wife. Cardiovascular Failure Under the restrictive provisions of the Labor Code.6. the claimant must prove that he contracted the disease in the course of employment.8. The body is made up of various types of cells. Pulmonary Metastases (Cancer)* 23.10. which includes myocardial infarction. the prevention of fatigue must be stressed very emphatically. Depletion of Page 88 of 103 . 23. Denise Dy. Anemia.5. Eastern Samar. Bells Palsy. Cancer of the Pancreas Still of unknown origin 23.7. and vinyl chloride and plastic factories. therefore. each type with a specific function. Incomplete Abortion Carvajal vs. Carcinoma of the Breast with Metastases to the Gastrointestinal Tract Jojo Baetiong. due to incomplete abortion. while working as campaign clerk in the Treasurer’s Office of San Juan. 23. Peripheral Neuritis Not among those listed. where the cause of an ailment is unknown and undetermined even by medical science. Chronic Glomerulonephritis* 23. the requirement of proof of causal link between the ailment and the working conditions should be liberalized. Chronic Pylonephritis. Pregnant women become tired more readily. Sheryl Harina. Giselle Remulla 3B – 2006-2007 Atty. 23. which cast aside the presumption of compensability provided in the Workmen’s Compensation Act.4. Elvira Castro. thus. loggers. Azucena It is an occupational disease or work-connected in such occupations as that of a teacher. 24.18. Sheryl Harina.15. 23. indispensably required. is liable to contract schistosomiasis. Strict rules of evidence are not demanded.19.16. It is enough that the claimant adduces proof of reasonable work connection. It is enough that his employment had contributed even in a small degree. 23. OLD DOCTRINE Page 89 of 103 . Rheumatoid Arthritis* 23. however. *Not an occupational disease. driver.20. medical opinion to the contrary can be disregarded especially when there is some basis in the facts for inferring a work-connection. Denise Dy. parasites. which has been held to be such relevant evidence as a reasonable mind might accept as sufficient to support a conclusion. hence compensable. Giselle Remulla 3B – 2006-2007 Atty. Gel Baniqued. Senile Cataract* 23. 25. This is due to causes which are either mechanical. it is not required that the employment be the sole factor in the growth development or acceleration of claimant’s illness to entitle him to the benefits provided for.A. Intestinal Obstruction Partial It is a condition in which the passage of intestinal contents is arrested or seriously impaired.17. Leprosy 23. Tuberculosis Jojo Baetiong. and gallstones. C. Additionally.Labor Law I Finals Reviewer nerve-cell energy results in fatigue. whereby the development of the disease was brought about largely by the conditions present in the nature of the job. The degree of proof required is merely substantial evidence.14. and hernia and such factors as impacted foreign body of feces. vascular or neurogenic. hence must prove that the risk of contracting the disease was increased by the working conditions. land inspector and other similar occupations. PROOF IS REQUIRED ONLY IF CAUSE IS KNOWN. Under the law. Mechanical causes are intrinsic factors as adhesions and tumors. 23. and fatigue causes certain reactions in the body that are injurious. laborer. Peptic Ulcer* 23.13. Parotid Carcinoma* 23. EVIDENCE. DEGREE OF PROOF Proof of direct causal relation is not. Schistosomiasis A teacher who works under a hazardous condition in farflung town and has to hike daily to his place of work. Elvira Castro. This reasoning is no longer good policy. there is no duty to present proof. Thus. the requirement that the disease was caused or aggravated by the employment or work applies only to an illness where the cause can be determined or proved. C. Unless it be shown that a particular form of cancer is caused by specific working conditions. diseases and death occur. The court cannot conclude that it was the employment which increased the risk of contracting the disease. Azucena Orate vs. NEW DOSCTRINE. Denise Dy. Gel Baniqued. The list of occupational diseases prepared by the ECC includes some cancers as compensable. It is now the trust fund and not the employer which suffers if benefits are paid to claimants who are not entitled under the law.Labor Law I Finals Reviewer The Necessity of Proof is present only when the cause of the disease is known. for the law does not demand an impossibility. Compassion for the victims of diseases not covered by the law ignores the need to show a greater concern for the trust fund to which the tens of millions of workers and their families look to for compensation whenever covered accidents. Chapter II COVERAGE AND LIABILITY Article 168: Article 169: Article 170: Article 171: COMPULSORY COVERAGE FOREIGN EMPLOYMENT EFFECTIVE DATE OF COVERAGE REGISTRATION COMMENTS 1. If not known. Elvira Castro. the requirement of proof of any causal link between the ailment and the working conditions should be liberalized so that hose who have less in life will have more in law. 26. PROOF IS REQUIRED Atty. COVERAGE Employees Jojo Baetiong. Raro vs. Sheryl Harina. Where the causes of an ailment are unknown to and/ or undetermined even by medical science. Giselle Remulla 3B – 2006-2007 Page 90 of 103 . the integrity of the State Insurance Fund is endangered. employed or unemployed. hence the necessity of affording all kinds of favorable presumptions to the employee.A. ECC: It is not correct to say that all cancers are not compensable. This stems from the development in law that no longer is the poor employee still arrayed against the might and power of his rich corporate employer. Cancer is still a disease of still unknown origin which strikes people in all walks of life. CA: It is well to remember that if diseases not intended by the law to be compensated are inadvertently or recklessly included. or conduct is visibly impaired. EXCLUSIONS Self-Inflicted or Self-Courted contingencies 1.b. Sheryl Harina.Labor Law I Finals Reviewer     Covered from first day of employment All employees. Considering their situation.2. Azucena 1. C. temporary or substitute employees It includes a “member of the Armed Forces of the Philippines” (Article 167(g) of the Labor Code as amended and Section 4(b)(1) of Rule 1 as amended of the implementing rules on employees’ compensation Not over 60 years of age. Death Not the Result of Worker’s Willful Act 1.Self-Inflicted Injuries The injury must be intentionally self-inflicted.1. suicide is compensable in the following cases: 1. including casual. Employer  Covered compulsorily from first day of operation 2. public or private. 1. which contemplates a deliberate intent on the part of the employee. When Compensable According to American authorities. word. Giselle Remulla 3B – 2006-2007 Page 91 of 103 . the application for the rule on accreditation of hospitals and physicians and the rule requiring notice to employer is relaxed.Intoxication or Drunkenness To the extent that one is not entirely himself or so that his judgment is impaired and his act. They are entitled to the same benefits as for those working in the Philippines.2. emergency.c. Suicide or Provoked Death Not Compensable 1. Denise Dy. when it results from insanity resulting from compensable work injury or disease 2.2. Elvira Castro.a. not a failure on his part to realize the probable consequences to himself of his foolish act. when it occurs during a delirium resulting from compensable disease COMMENTS AND CASES Jojo Baetiong. Suicide. FOREIGN EMPLOYMENT Filipinos working abroad for employers doing business in the Philippines are covered by the employee’s compensation law. Gel Baniqued. 1. or over 60 if he had been paying contributions to the System prior to age 609 and has not been compulsorily retired. Article 172: LIMITATIONS OF LIABILITY Atty.A.2. Disobedience to rules and/or prohibition does not in itself constitute notorious negligence. Giselle Remulla 3B – 2006-2007 Page 92 of 103 . Code) for work-connected death or injuries exclude other remedies under the civil code? Answer: Case of Ysmael Maritime Corporation vs.Notorious Negligence Notorious Negligence something more than simple or contributory negligence. Yap.3. RECOVERY UNDER THE LABOR CODE AND THE SOCIAL SECURITY LAW Simultaneous recovery of benefits under the employee’s compensation program of the Labor Code and under the Social Security Law is allowed. NLRC: No law or rule would make it illegal for an employer to assume the obligation to pay death benefits in favor of his employee in their contract of employment. It exempts the State Insurance Fund from liability for injuries suffered by the former by notorious negligence. i. Elvira Castro. Ruling: In the case of Robles vs.. Denise Dy. Vs.Labor Law I Finals Reviewer Atty.A. regardless or whether or not it intended to make itself the insurer. the employee or his heirs are no longer free to opt for the other remedy. 173 EXTENT OF LIABILITY 1. 1. the employee cannot pursue both actions simultaneously. Azucena NAESS Shipping Phil. But once the election has been exercised. C. ART.e. Since. NAESS freely bound itself to a contract which on its dace makes it unqualifiedly liable to pay compensation benefits for Dublin’s death while in its service. in the legal sense. 174 LIABILITY OF THIRD PARTIES Jojo Baetiong. OPTIONS AVAILABLE: BENEFITS UNDER COMPENSATION LAW OR UNDER THE CIVIL CODE THE Question: Does the compensation remedy under the Workmen’s Compensation Act (now under the Labor 2. of Dublin’s life. NAESS cannot escape liability. 1987) In this case. Avelino (June 30. for which reason they are now precluded from seeking other remedies against the same employers under the Civil Code. Sheryl Harina. the employer refused to grant the claim of the deceased employee’s parents on the ground that the claimants had already been compensated by the Workmen’s Compensation Commission for the same incident. it was held that the action is selective and the employee or his heirs have a choice of availing themselves of the benefits under the WCA or of suing in the regular courts under the Civil Code for higher damages from the employer by reason of his negligence. ART. Gel Baniqued. It signifies a deliberate act of the employee to disregard his own personal safety. if no intention can be attributed to the injured to en his life. each) b. President and General Manager c. Preventive Thrust . Gel Baniqued. ART. 176 177 178 179 180 181 182 EMPLOYEES’ COMPENSATION COMMISSION POWERS AND DUTIES MANAGEMENT OF FUNDS INVESTMENT OF FUNDS SETTLEMENT OF CLAIMS REVIEW ENFORCEMENT OF DECISIONS 1. Elvira Castro. 175 DEPRIVATION OF BENEFITS Rule: No contract. are appealable to the ECC). and medical or related services granted under this title. C.inspects work premises b. Occupational Safety and Health Center (OSHC) . CHAPTER III ADMINISTRATION ART. Sheryl Harina. THREE THRUSTS OR COMPONENTS OF THE ECC PRGRAM: 1. Denise Dy. ART.Labor Law I Finals Reviewer Atty. ( Decisions of SSS or GSIS. STRUCTURE AND FUNCTIONS CHAIRMAN of the Employees’ Compensation Commission : Secretary of Labor and Employment b. Existing medical services being provided by the employer shall be maintained and continued to be enjoyed by their employees.A. ART. Jojo Baetiong. another representing the employees ECC – the policy-making body of the Employees’ Compensation Program and also the appeal body. Azucena ART. tests safety equipment and undertakes research work. ART. Bureau of Working Conditions (BWC) . one representing the employers (for a term of 6 yrs. . .the law provides that establishments having high rate of incidents caused by FOUR EX-OFFICIO MEMBERS: a. ART.trains safety engineers. SSS Administrator.Two agencies involved in this program: a. Medicare Chairman TWO APPOINTIVE MEMBERS: a. ART.to minimize and control hazards in the working environment. Exception: When otherwise provided under this Title. regulation. Giselle Remulla 3B – 2006-2007 Page 93 of 103 . or device whatsoever shall operate to deprive the employee or his dependents of any part of the income benefits. ECC Executive Director d. if unfavorable to the claimant. TWO SEPARATE FUNDS The ECC may not augment the SIF in the GSIS with funds from the SIF in the SSS because these are two separate funds.in case of death.Labor Law I Finals Reviewer hazards of their working environment will be liable to 25% of benefits due the claimants. (To force the observance of the legal requirement on occupational health and safety. Azucena 2. Curative Thrust . .The ECC is also responsible for the treatment of sickness or injury that a worker may suffer in line of duty as well as rehabilitation of those who are disabled. REHABILITATION SERVICES consist of a. Denise Dy. Elvira Castro. Note: For medical services. including appliance. hospital treatment. the ECC conduct accreditation of qualified physicians. surgical treatment. or c. Jojo Baetiong. the benefits are given to the beneficiaries.A. Compensative Thrust . C. medical treatment. Sheryl Harina. the ECC pays benefits to government and private Sector workers who suffer work-oriented contingencies.through the SSS and GSIS. Giselle Remulla 3B – 2006-2007 Page 94 of 103 . 3. b. clinics and hospitals where EC patients may be referred to for admission and treatment.is the heart of the Employees’ Compensation Program . Atty. Gel Baniqued.) 2. 188 REFUSAL OF EXAMINATION OR TREATMENT ART.The employee is entitled to the benefits only for the ward services of an accredited hospital and accredited physician. 189 FEES AND OTHER CHARGES ART. 184 GOVERNMENT GUARANTEE The penalties to the employer who is delinquent in paying ECC contributions include imprisonment and/or fine and a 3% penalty per month from the date the contribution falls due until paid. Cash Income Benefit or Pension due to: Jojo Baetiong. 187 ATTENDING PHYSICIAN ART.C. Sheryl Harina.death. Elvira Castro. Notes: . Denise Dy. BENEFITS SUMMARIZED THREE KINDS OF COMPENSATION EXTENDED TO THE EMPLOYEE: a. E. .permanent total disability. Giselle Remulla 3B – 2006-2007 . Funeral Benefit 2. subject to Sec. MEDICAL BENEFITS The Medical services. .rehabilitation services b. appliances.permanent partial disability.A. Gel Baniqued.However. . and supplies shall be provided to the afflicted employee: . . CHAPTER V MEDICAL BENEFITS ART.186 LIABILITY ART. they are privileged to claim reimbursement with the ECC through the System fro expenses incurred in the treatment of patients.and as the progress of his recovery may require.Neither are they allowed to collect any amount from EC patients as charges. 183 EMPLOYER’S CONTRIBUTIONS ART.medical services.Labor Law I Finals Reviewer Atty. which requires submission of periodic medical report from the attending physician.temporary total disability. C. . Page 95 of 103 .ECC accredited hospitals and physicians are not allowed to ask any deposit from EC patients as requisite for admission. 5 of Rule IV.beginning on the 1st day of in injury or sickness. Services . . . Azucena CHAPTER IV CONTRIBUTIONS ART. . 190 REHABILITATION SERVICES 1. c. appliances and supplies. 185 MEDICAL SERVICES ART.during the subsequent period of his disability. . Gel Baniqued. and this duty is not ended when employment terminates. Expenses incurred at the ICU are also paid in full. appliances and supplies may be acquired by the employee himself. Giselle Remulla 3B – 2006-2007 Atty. in the event of failure of the employer to furnish the same promptly. 4. 3. Sr. and diuretics.Prevailing Rule in compensation cases: Acts not containing any limitation as to the period during which the employer may furnish or pay for medical. Azucena declared by law to be so. GSIS (Dec. Sheryl Harina.1 Duration of Medical Liability . C. we believe that appellant is entitled to reimbursement of medications used in treating the complications. Diabetes Mellitus and Stomach Ulcerations. or hospital services have been construed as imposing liability on the employer as long as such services are required to cure or relieve the injured employee from the effect of his injury. furnishing of prosthesis and appliances all paid by the ECC.The services. unless personal in nature or Jojo Baetiong. at the expense of the employer or system. Elvira Castro. 1991) Ruling: The complications that arose from appellant’s primary illnesses. Vocational Placement Page 96 of 103 . PTB and COPD were brought about by the intake of several medications like steroids.Medical attendance is owing as long as the employee is sick of a compensable illness. b. 2. 2. . Physical rehabilitation -involves physical therapy by the rehab center of the ECC – accredited hospital. b. surgical.A. . For this reason. REHABILITATION SERVICES THREE STAGES OF REHABILITATION UNDER THIS PROGRAM: a. Denise Dy.2 Reimbursement of Medical Expenses . Case: Godofredo Alvero. antibiotics.Labor Law I Finals Reviewer - Medicines purchased by EC patients are reimbursed 100%.The employee’s right of reimbursement for medical expenses is not extinguished upon his death but is transmitted to his legal heirs. The reimbursable medical expenses are not only those incurred for the primary illness but even those for its complications developed after the employee’s retirement. vs. Vocational Assessment -involves evaluation by guidance psychologist of the ECC and sending to vocational school of those found ready to reengage in gainful employment. there is disability when there is a loss or diminution of earning power because of actual absence from work due to the injury or illness arising out of and in the course of employment. 2. C. therefore.A. 1991) ART. . Giselle Remulla 3B – 2006-2007 3 Distinct Categories of of Employee’s Disability: 1. temporary does not mean a state of absolute helplessness means disablement of an employee to earn wages in the same kind of work.Labor Law I Finals Reviewer Atty. 23. permanent total disability 3.The basis of compensation is reduction of earning power . Denise Dy. or a work of similar nature. that he was trained for or accustomed to perform. CHAPTER VI DISABILITY BENEFITS Art. Kind of Disability Purpose of the Law for Page 97 of 103 . he is not entitled to any income benefit. CATEGORIES OF DISABILITY Case: Vicente vs. DISABILITY Disability – does not refer to the injury nor to the pain and suffering it has occasioned . 193 PERMANENT PARTIAL DISABILITY 1. there is no disability and . temporary total disability 2. Azucena -involves job placement by Employment Service Officer to help him become independent and gainfully employed.may either be: a. permanent partial disability TOTAL DISABILITY . Jojo Baetiong. permanent b.As long as the employee goes on working (even if he suffers service-connected injury or illness) without any reduction whatsoever in his earning capacity. or any kind of work which a person of his mentality and attainment could do. ECG (Jan. Elvira Castro. 192 PERMANENT TOTAL DISABILITY ART.it refers to the loss or impairment of earning capacity . 191 TEMPORARY TOTAL DISABILITY ART. 167 (n) – defines ‘disability’ as loss or impairment of a physical or mental function resulting from injury or sickness. Sheryl Harina. Gel Baniqued. Labor Law I Finals Reviewer Temporary Disability Permanent Disability Atty. Azucena Granting Compensation To compensate the laborer or employee for what he might have earned during the period of the treatment of his injury To compensate the injured laborer or employee for the actual and permanent loss of a member of the body. Note: -After an employee has fully recovered from an illness.The system may declare the total and permanent status at any time after 120 days of continuous temporary disability as may be warranted by the degree of actual loss or impairment of physical or mental functions as determined by the system.income benefit equivalent to 90 percent of his average daily salary credit. . but not to exceed 240 days from onset of Jojo Baetiong. . the monthly income benefit shall be suspended if the employee fails to submit a monthly medical report certified by its attending physician. unless the in jury or sickness requires more extensive treatment that lasts beyond 120 days. TEMPORARY . the period covered by the original disability. Sheryl Harina. Denise Dy.00 . subject to the following conditions: 1. C. . Elvira Castro. or recurrence of his illness shall be considered independent of. 2. except as otherwise provided in Rule X of these Rules. the daily income benefit shall not be less than P10 or more than P90 nor paid longer than 120 days for the same disability. or the use thereof Kind of Disability Descriptions 1. Gel Baniqued.Maximum Daily Income Benefit : P200. and separate from. in which case he shall be paid benefit for temporary total disability during the extended period.A. the period covered by any relapse he suffers.employee is unable to perform TOTAL any gainful occupation for a continuous period not exceeding 120 days.Paid beginning on the 1st day of disability. Giselle Remulla 3B – 2006-2007 disability. Such a period shall not be added Page 98 of 103 . (ECC Rules) Amount of Benefits: a. Rule VI Page 99 of 103 . Complete or full recovery from his permanent disability. Sheryl Harina. 2. Temporary total disabilities lasting continuously for more than 120 days. Upon being gainfully employed. 192): 1. Brain injury resulting in incurable imbecility and insanity. Failure to submit a quarterly medical report certified by his attending physician as required under Sec. PERMANENT -employee is unable to perform… TOTAL for a continuous period exceeding 120 days except as otherwise provided for in Rule X of the ECC Rules. 2. except as otherwise provided. Gel Baniqued.monthly income benefit as defined in Sec. Denise Dy. Complete loss of sight of both eyes. .The full monthly income benefit shall be paid for all compensable months of disability. 3. 2. 9 (a). 5 of Rule IV hereof. Elvira Castro. 5. 3.does not require a condition of complete helplessness PERMANENT TOTAL DISABILITIES (ART. C. Giselle Remulla 3B – 2006-2007 the System and approved by the Commission. Such cases as determined by Jojo Baetiong. Azucena to the period covered by his original disability in the computation of his income benefit for temporary total disability. .Labor Law I Finals Reviewer Atty. SSS.A. or 4.incapacity to perform gainful work which is expected to be permanent. 4. The monthly income benefit shall be guaranteed for 5 years. Failure of employee to present himself for examination at least once a year upon notice by the System. Loss of two limbs at or above the ankle or wrist. Permanent complete paralysis of two limbs. and 6. . GROUNDS FOR CANCELLATION OF PTD: 1. 1975. Permanent Total vs. otherwise. Gel Baniqued.A. PERMANENT -employee suffers a permanent PARTIAL partial loss of the use of any part of his body . a covered employee shall continue to receive the income benefits provided thereunder even if he is gainfully employed and receiving his wages or salary. but not exceeding 5. Denise Dy. Permanent Partial Permanent Total Permanent Partial -results in an employee’s -occurs when an loss of work or inability to employee loses the use of perform his usual work any particular anatomical part of his body which -Test to determine whether disables him to continue Page 100 of 103 . shall be entitled to 10% percent of the monthly income benefit of the employee. the income benefits shall be paid in monthly pension. in the case of the GSIS. Azucena b. Elvira Castro. The full monthly income benefit shall be paid for all compensable months of disability.4 of this Rule. C. 3. 193 . -Except the benefit to dependent children under Sec. the aggregate monthly benefit payable. shall in no case exceed the monthly wage or salary actually received by the employee as of Jojo Baetiong. the System may pay income benefit in lump sum or in monthly pension. Note: -Each dependent child.Labor Law I Finals Reviewer Atty.see art. counted from the youngest and without substitution.If the indicated number of months exceeds 12. the number of months of paid coverage shall be the number of monthly contributions remitted to the System including contributions other than for Employees’ Compensation if paid before March 31. Giselle Remulla 3B – 2006-2007 the date of his permanent total disability. 193 (body parts/period) -monthly income benefit for the number of months indicated in art. c. The first day preceding the semester of temporary total disability shall be considered for purposes of computing the monthly income benefit for permanent total disability. Sheryl Harina. does not mean absolute dependency for the necessities of life. CHAPTER VII DEATH BENEFITS ART. Orlino vs. although able to maintain himself without any assistance from the decedent. that the plaintiff looked up to and relied on the contribution of the decedent in whole or in part. or any other kind of work to which he could be assigned. CA Ruling: A person’s disability may not manifest fully at one precise moment in time but rather over a period of Jojo Baetiong. as a means of supporting and maintaining herself in accordance with her station in life. 194 DEATH DEPENDENCY . Employees’ Compensation Commission Ruling: He is considered permanently and totally disabled to work when he was incapacitated or disabled to perform any substantial amount of labor in the line of work where he was formerly engaged. Denise Dy. ECC Ruling: The test of determining whether or not an employee suffers from permanent total disability is a showing of the capacity of the employee to continue performing his work notwithstanding the disability he incurred.A. above the knee in 1857. Sheryl Harina. from Permanent Total: a showing of the capacity of the employee to continue performing his work notwithstanding the disability he incurred. TEST OF DEPENDENCY Page 101 of 103 . below the knee. Vicente vs. 2. Elvira Castro. C. according to this view. Permanent Total Disability Cases: 1. Gel Baniqued. NOTE: -The compensation paid in 1936 on account of the amputation of an employee’s foot.A person may be dependent. GSIS vs. . It does not mean an absolute helplessness but rather an incapacity to perform gainful work which is expected to be permanent.Labor Law I Finals Reviewer or nor an employee suffers with his former work. Azucena time. should NOT be deducted from the compensation due for the dsability resulting from the amputation of the left leg. Conversion from Permanent Partial to Permanent Total 1. It is possible that an injury which at first was considered to be temporary may later on become permanent or one who suffers a partial disability becomes totally and permanently disabled from the same cause. but rather. Giselle Remulla 3B – 2006-2007 Atty. Secondary Illegitimate children and legitimate descendants Parents. . in no case shall the total benefit be less than P1. grandparents. grandchildren.Under the ECC Rules. 200 SAFETY DEVICES ART. ETC. SPOUSE AS DEPENDENT .Funeral benefit is paid to the survivor or to whoever shouldered the burial expenses ART. TAX. Elvira Castro. b. Dependent children (legitimate. guaranteed for 5 yrs.the Commission must resolve the dispute .. legitimated. one need not be a part of the deceased’s household in oreder to be a dependent. . for life to the primary beneficiaries.determine who the legal wife is PARENTS AS DEPENDENT .a parent cannot claim as a dependent in a compensation case where the deceased employee is an abandoned child. 196 DELINQUENT CONTRIBUTIONS ART. Denise Dy. Gel Baniqued. 203. 202 ERROMEOUS PAYMENT ART. Giselle Remulla 3B – 2006-2007 Atty. b. 195 RELATIONSHIP AND DEPENDENCY ART. natural-born. C. for not more than 60 months to the secondary beneficiaries in case there are no primary beneficiaries.Labor Law I Finals Reviewer - - dependency may exist although the dependent could have subsisted without the assistance he received.arises from fact that marriage exists . 201 PRESCRIPTIVE PERIOD ART. PROHIBITION ART. Page 102 of 103 . Azucena The Beneficiaries Primary a. 199 EARNED BENEFITS ART. c. 204 EXEMPTION FROM LEVY. Notes: . DEATH BENEFIT AND BENEFICIARIES Death benefits are paid in the form of cash monthly pension: a. Sheryl Harina. or legally adopted) a. the death benefit shall accrue to the Employees’ Compensation Fund if the deceased employee has no beneficiaries at the time of his death. 198 ASSIGMENT OF BENEFITS ART.showing of marital status is essential TWO WIVES AS CLAIMANTS .197 SECOND INJURIES ART.A. Dependent spouse until he/she remarries b.Amount of income benefits shall be equivalent t the monthly income benefits under PTD and PPD benefits. if such contributions were relied on by claimant for his means of living as determined by his position in life.500 Jojo Baetiong. Giselle Remulla 3B – 2006-2007 Page 103 of 103 . Azucena CHAPTER IX RECORDS. Sheryl Remulla. Denise Dy. Denise Harina.A. ART. ART. Joselito Baniqued. C. Marigel Castro.Labor Law I Finals Reviewer Atty. Gel Baniqued. Elvira Dy. Sheryl Harina. REPORTS AND PENAL PROVISIONS ART. INJURY OR DEATH PENAL PROVISIONS APPLICABILITY Reviewer Prepared By: Baetiong. Giselle TITLE III MEDICAL CARE TITLE IV ADULT EDUCATION Jojo Baetiong. 205 206 207 208 RECORD OF DEATH OR DISABILITY NOTICE OF SICKNES. ART. Elvira Castro.