LA BOR LA W - Presidential D Ecree 442: Trade and Labor Union
LA BOR LA W - Presidential D Ecree 442: Trade and Labor Union
LA BOR LA W - Presidential D Ecree 442: Trade and Labor Union
To promote and maintain a state of full employment through improved manpower training,
allocation and utilization;
To protect every citizen desiring to work locally or overseas by securing for him the best possible
terms and conditions of employment;
To facilitate a free choice of available employment by persons seeking work in conformity with
the national interest;
To facilitate and regulate the movement of workers in conformity with the national interest;
To regulate the employment of aliens, including the establishment of a registration and/or work
permit system;
To strengthen the network of public employment offices and rationalize the participation of the
private sector in the recruitment and placement of workers, locally and overseas, to serve national
development objectives;
To insure careful selection of Filipino workers for overseas employment in order to protect the
good name of the Philippines abroad.
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The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote
full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to
security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and
decision-making processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its
just share in the fruits of production and the right of enterprises to reasonable returns to investments, and
to expansion and growth.
Explanatory note from Senator Honasan II: “ Consistent with this constitutional mandate, it is the
duty of Congress to provide for a wage that could sustain the basic standards of living necessary
for the health, efficiency and general well-being of the worker and his/her family.”
LABOR STANDARDS
Minimum requirements prescribed by existing laws relating to wages, hours of work, and other
monetary and welfare benefits
Labor Standards refers to the standard conventions with respect to the workers, in matters of
basic worker rights, working conditions, wages to be paid & also related to job security
LABOR RELATIONS
Rules and regulations that govern the relationship between employees and employers
Promite rights of employees to self-organization and collective bargaining
Penalizes unfair labor and provide modes of settlement of labor disputes
B o o k F i v e , L a b o r R e l a ti on s
To promote and emphasize the primacy of free collective bargaining and negotiations, including voluntary
arbitration, mediation and conciliation, as modes of settling labor or industrial disputes;
To promote free trade unionism as an instrument for the enhancement of democracy and the promotion
of social justice and development;
To foster the free and voluntary organization of a strong and united labor movement;
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To promote the enlightenment of workers concerning their rights and obligations as union members and
as employees;
To provide an adequate administrative machinery for the expeditious settlement of labor or industrial
disputes;
To ensure the participation of workers in decision and policy-making processes affecting their rights, duties
and welfare.
To encourage a truly democratic method of regulating the relations between the employers and employees
by means of agreements freely entered into through collective bargaining, no court or administrative
agency or official shall have the power to set or fix wages, rates of pay, hours of work or other terms and
conditions of employment, except as otherwise provided under this Code. (As amended by Section 3,
Republic Act No. 6715, March 21, 1989)
* Article 213. National Labor Relations Commission. There shall be a National Labor Relations
Commission which shall be attached to the Department of Labor and Employment for program
and policy coordination only, composed of a Chairman and fourteen (14) Members.
WHO IS AN EMPLOYER?
Art. 97. Includes any person acting directly or indirectly in the interest of an employer in relation
to an employee and shall include the government and all its branches, subdivisions and
instrumentalities, all government-owned or controlled corporations and institutions, as well as
non-profit private institutions, or organizations.
WHO IS AN EMPLOYEE?
Includes any person in the employ of an employer. The term shall not be limited to the employees
of a particular employer unless the Code so explicitly states. It shall include any individual whose
work has ceased as a result of or in
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CONTROL TEST
An employee is subject to the employer’s power to control the means and methods by which the
employee’s work is to be performed and accomplished.
Of the 4 elements of employer employee relationship, the control test is generally regarded as the most
crucial and determinative indicator of the presence or absence of an employer-employee relationship.
Under this test, an employer-employee relationship is said to exist where the person for whom the services
are performed reserves the right to control not only the end result but also the manner and means utilized
to achieve the same.
DISCUSS: SANZA V. ABS -CBN BRODCASTING CORP, G.R. NO. 138 05 1 , 10 J UNE 2 004
KINDS OF EMPLOYMENT
1. Probationary
Not exceed 6 months from the day the employee started working
Observe the fitness of probationary employee to work = prove the qualifications
2. Regular
There is a reasonable connection between the task of the employee to the usual
business of the employer
3. Project
Hired for a specific project
Completion/termination of the project has been determined
4. Seasonal
Work to be done is seasonal in nature
Employment is the duration of the season
5. Casual
work is merely incidental (or very minor)
Jon is for s definite period
6. Fixed Term
Employee is engaged to the usual business, but a completion will be determined
There is a deadline
Article 280. Regular and casual employment. The provisions of written agreement to the contrary
notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to
be regular where the employee has been engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the employer, except where the employment has been fixed for
a specific project or undertaking the completion or termination of which has been determined at the time
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of the engagement of the employee or where the work or service to be performed is seasonal in nature
and the employment is for the duration of the season.
An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided,
That any employee who has rendered at least one year of service, whether such service is continuous or
broken, shall be considered a regular employee with respect to the activity in which he is employed and
his employment shall continue while such activity exists.
PROBATIONARY EMPLOYMENT
Article 281. Probationary employment. Probationary employment shall not exceed six (6) months from the
date the employee started working, unless it is covered by an apprenticeship agreement stipulating a
longer period. The services of an employee who has been engaged on a probationary basis may be
terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable
standards made known by the employer to the employee at the time of his engagement. An employee who
is allowed to work after a probationary period shall be considered a regular employee
1. Hours of Work
Normal working hours = 8 hours a day maximum
Short rest periods shall be counted
Waiting time is also considered
2. Meal Periods
Employees given min. of 60 minutes for regular meals
Prescribed by the Secretary of Labor and Employment
3. Night-Differential
paid a min of 10% of regular wage for each hour
Between 10pm-6am
Rendering work past his bedtime
4. Overtime
beyond 8 hours = additional compensation (at least 25% of regular wage)
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Overtime on holiday/rest day = additional compensation (at least 30% of the regular rate)
Under time does not equal to overtime (or else worker is at a disadvantage)
Art. 82. Coverage. The provisions of this Title shall apply to employees in all establishments and
undertakings whether for profit or not, but not to government employees, managerial employees, field
personnel, members of the family of the employer who are dependent on him for support, domestic
helpers, persons in the personal service of another, and workers who are paid by results as determined
by the Secretary of Labor in appropriate regulations.
As used herein, “managerial employees” refer to those whose primary duty consists of the management
of the establishment in which they are employed or of a department or subdivision thereof, and to other
officers or members of the managerial staff.
“Field personnel” shall 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.
Art. 83. Normal hours of work. The normal hours of work of any employee shall not exceed eight (8) hours
a day.
Health personnel in cities and municipalities with a population of at least one million (1,000,000) or in
hospitals and clinics with a bed capacity of at least one hundred (100) shall hold regular office hours for
eight (8) hours a day, for five (5) days a week, exclusive of time for meals, except where the exigencies of
the service require that such personnel work for six (6) days or forty-eight (48) hours, in which case, they
shall be entitled to an additional compensation of at least thirty percent (30%) of their regular wage for
work on the sixth day. For purposes of this Article, “health personnel” shall include resident physicians,
nurses, nutritionists, dietitians, pharmacists, social workers, laboratory technicians, paramedical
technicians, psychologists, midwives, attendants and all other hospital or clinic personnel.
Art. 84. Hours worked. Hours worked shall include (a) all time during which an employee is required to
be on duty or to be at a prescribed workplace; and (b) all time during which an employee is suffered or
permitted to work.
Rest periods of short duration during working hours shall be counted as hours worked.
Art. 85. Meal periods. Subject to such regulations as the Secretary of Labor may prescribe, it shall be the
duty of every employer to give his employees not less than sixty (60) minutes time-off for their regular
meals.
Art. 86. Night shift differential. Every employee shall be paid a night shift differential of not less than ten
percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening
and six o’clock in the morning.
Art. 87. Overtime work. Work may be performed beyond eight (8) hours a day provided that the
employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus
at least twenty-five percent (25%) thereof. Work performed beyond eight hours on a holiday or rest day
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shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest
day plus at least thirty percent (30%) thereof.
Art. 88. Undertime not offset by overtime. Undertime work on any particular day shall not be offset by
overtime work on any other day. Permission given to the employee to go on leave on some other day of
the week shall not exempt the employer from paying the additional compensation required in this
Chapter.
Art. 89. Emergency overtime work. Any employee may be required by the employer to perform overtime
work in any of the following cases:
a. When the country is at war or when any other national or local emergency has been declared by
the National Assembly or the Chief Executive;
b. When it is necessary to prevent loss of life or property or in case of imminent danger to public
safety due to an actual or impending emergency in the locality caused by serious accidents, fire,
flood, typhoon, earthquake, epidemic, or other disaster or calamity;
d. When the work is necessary to prevent loss or damage to perishable goods; and
e. Where the completion or continuation of the work started before the eighth hour is necessary to
prevent serious obstruction or prejudice to the business or operations of the employer.
Any employee required to render overtime work under this Article shall be paid the additional
compensation required in this Chapter.
Art. 90. Computation of additional compensation. For purposes of computing overtime and other
additional remuneration as required by this Chapter, the “regular wage” of an employee shall include the
cash wage only, without deduction on account of facilities provided by the employer.
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done during the night; while the payment of the overtime pay is for work in excess of the
regular eight (8) working hours.
WORK DURING REGULAR HOLIDAYS
o Paid 100% of his regular daily wage; while a covered employee who does not work during
a special day does not receive any compensation under the principle of “no work, no pay
WORK DUR ING SPECIAL NON -WORKING HOLIDAYS \
o Work performed on any special holiday (now special day) shall be paid with an additional
compensation of at least thirty percent (30%) of the regular wage of the employee.
o Where such holiday work falls on the employee’s scheduled rest day, he shall be entitled
to additional compensation of at least fifty percent (50%) of his regular wage
WORK DURING REST DAY
o A covered employee who is made or permitted to work on his scheduled rest day shall be
paid with an additional compensation of at least thirty percent (30%) of his regular wage.
* Rule in case of regular Muslim holidays: The Supreme Court, however, ruled that there
should be no distinction between Muslims and non-Muslims as regards payment of
benefits for Muslim holidays.
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SECTION 1. Section 26, Chapter 7, Book 1 of Executive Order No. 292, as amended, otherwise
known as the Administrative Code of 1987, is hereby amended to read as follows:
“SEC. 26. Regular Holidays and Nationwide Special Days. — (1) Unless otherwise modified
by law, order or proclamation, the following regular holidays and special days shall be observed
in the country:
a) Regular Holidays
c) In the event the holiday falls on a Wednesday, the holiday will be observed on the Monday
of that week. If the holiday falls on a Sunday, the holiday will be observed on the Monday that
follows:
Provided, That for movable holidays, the President shall issue a proclamation, at least six
months prior to the holiday concerned, the specific date that shall be declared as a nonworking
day:
Provided, however, That Eidul Adha shall be celebrated as a regional holiday in the Autonomous
Region in Muslim Mindanao.”
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SECTION 2. All laws, orders presidential issuances, rules and regulations or part thereof
inconsistent with this Act are hereby repealed or modified accordingly.
SECTION 3. This Act shall take effect after fifteen (15) days following its publication in at least
two newspapers of general circulation.
REPUBLIC ACT NO. 10151 – AN ACT ALLOWING THE EMPLOYMENT OF NIGIIT WORKERS, THEREBY
REPEALING ARTICLES 130 AND 131 OF PRESIDENTIAL DECREE NUMBER FOUR HUNDRED FORTY-TWO,
AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES
In any industrial undertaking or branch thereof between ten o’clock at night and six o’clock in
the morning of the following day; or
In any agricultural undertaking at nighttime unless she is given a period of rest of not less than
nine (9) consecutive hours.
Article 131. Exceptions. The prohibitions prescribed by the preceding Article shall not apply in
any of the following cases:
In cases of actual or impending emergencies caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disasters or calamity, to prevent loss of life or property, or in
cases of force majeure or imminent danger to public safety;
Where the woman employee holds a responsible position of managerial or technical nature, or
where the woman employee has been engaged to provide health and welfare services;
Where the nature of the work requires the manual skill and dexterity of women workers and the
same cannot be performed with equal efficiency by male workers;
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Where the women employees are immediate members of the family operating the establishment
or undertaking; and
Under other analogous cases exempted by the Secretary of Labor and Employment in
appropriate regulations.
TERMINATION OF EMPLOYMENT
Dismissal of relationship between the employer and employee based on just and authorized causes.
SECTION 1. Security of tenure and due process. — No workers shall be dismissed except for a just or
authorized cause provided by law and after due process.
SECTION 2. Notice of dismissal. — Any employer who seeks to dismiss a worker shall furnish him a written
notice stating the particular acts or omission constituting the grounds for his dismissal. In cases of
abandonment of work, the notice shall be served at the worker's last known address.
SECTION 3. Preventive suspension. — The employer may place the worker concerned under preventive
suspension if his continued employment poses a serious and imminent threat to the life or property of
the employer or of his co-workers.
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SECTION 4. Period of suspension. — No preventive suspension shall last longer than 30 days. The
employer shall thereafter reinstate the worker in his former or in a substantially equivalent position or
the employer may extend the period of suspension provided that during the period of extension, he pays
the wages and other benefits due to the worker. In such case, the worker shall not be bound to reimburse
the amount paid to him during the extension if the employer decides, after completion of the hearing, to
dismiss the worker.
SECTION 5. Answer and hearing. — The worker may answer the allegations stated against him in the
notice of dismissal within a reasonable period from receipt of such notice. The employer shall afford the
worker ample opportunity to be heard and to defend himself with the assistance of his representative, if
he so desires.
SECTION 6. Decision to dismiss. — The employer shall immediately notify a worker in writing of a decision
to dismiss him stating clearly the reasons therefor.
SECTION 7. Right to contest dismissal. — Any decision taken by the employer shall be without prejudice
to the right of the worker to contest the validity or legality of his dismissal by filing a complaint with the
Regional Branch of the Commission.
SECTION 8. Period to decide. — Cases involving the dismissal of a worker shall be decided by the Labor
Arbiter within 20 working days from the date of submission of such cases for decision.
SECTION 9. Reinstatement pending hearing. — The Secretary may suspend the effects of the termination
pending resolution of the case in the event of a prima facie finding that the termination may cause a
serious labor dispute or is in implementation of a mass lay-off.
SECTION 10. Certification of employment. — A dismissed worker shall be entitled to receive, on request,
a certificate from the employer specifying the dates of his engagement and termination of his
employment and the type or types of work on which he is employed.
SECTION 11. Report of dismissal. — The employer shall submit a monthly report to the Regional Office
having jurisdiction over the place of work all dismissals effected by him during the month, specifying
therein the names of the dismissed workers, the reasons for their dismissal, the date of commencement
and termination of employment, the positions last held by them and such other information as may be
required by the Department for policy guidance and statistical purposes.
SUBSTANTIVE DUE PROCESS AND PROCEDURAL DUE
PROCESS
Substantive due process requires that the dismissal must be pursuant to either a just or an
authorized cause under Articles 282, 28317 or 28418 of the Labor Code
Procedural due process in dismissal cases consists of the twin requirements of notice and
hearing.20 The employer must furnish the employee with two written notices before the
termination of employment can be effected: (1) the first notice apprises the employee of the
particular acts or omissions for which his dismissal is sought; and (2) the second notice informs
the employee of the employer's decision to dismiss him. 21 Before the issuance of the second
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notice, the requirement of a hearing must be complied with by giving the worker an opportunity
to be heard.22 It is not necessary that an actual hearing be conducted.23
Article 282. Termination by employer. An employer may terminate an employment for any of the
following causes:
Serious misconduct or willful disobedience by the employee of the lawful orders of his employer
or representative in connection with his work;
Fraud or willful breach by the employee of the trust reposed in him by his employer or duly
authorized representative;
Commission of a crime or offense by the employee against the person of his employer or any
immediate member of his family or his duly authorized representatives; and
Article 284. Disease as ground for termination. An employer may terminate the services of an
employee who has been found to be suffering from any disease and whose continued employment
is prohibited by law or is prejudicial to his health as well as to the health of his co-employees:
Provided, That he is paid separation pay equivalent to at least one (1) month salary or to one-half
(1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6)
months being considered as one (1) whole year.
D I S CU S S : KI N G O F KI N GS TR AN S PO R T V. M AM AC , G. R . N O . 1 6 6 2 0 8 , 2 9 J UN E 2 0 0 7
D I SCU SS: J AK A FOO D PRO C ESSI N G V. PAC O T G.R . NO . 151 378 , 28 J UN E 2 005
DISCUSS: AGABON V. NLRC, G.R. NO. 1 5869 3 , 17 NOVEMBER 200 4
An employee may terminate without just cause the employee-employer relationship by serving a
written notice on the employer at least one (1) month in advance. The employer upon whom no such
notice was served may hold the employee liable for damages.
An employee may put an end to the relationship without serving any notice on the employer for any of
the following just causes:
Serious insult by the employer or his representative on the honor and person of the employee;
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Inhuman and unbearable treatment accorded the employee by the employer or his representative;
Commission of a crime or offense by the employer or his representative against the person of the
employee or any of the immediate members of his family; and
It should be noted that employees who voluntarily resign from work are not entitled to separation pay.
Philippine laws only grant separation pay to those who were dismissed from service not due to their own
fault or negligence but for reasons that are beyond their control, i.e. business closure, cessation of
operation, retrenchment (reduction of costs) to prevent losses, etc. However, there are at least two cases
where employees who resign voluntarily may be entitled to separation pay, and they are as follows:
In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have
earned under existing laws and any collective bargaining agreement and other agreements: Provided,
however, that an employee’s retirement benefits under any collective bargaining and other agreements
shall not be less than those provided therein.
In the absence of a retirement plan or agreement providing for retirement benefits of employees in the
establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five
(65) years which is hereby declared the compulsory retirement age, who has served at least five (5) years
in the said establishment, may retire and shall be entitled to retirement pay equivalent to at least one-
half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered
as one whole year.
Unless the parties provide for broader inclusions, the term ‘one-half (1/2) month salary’ shall mean fifteen
(15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5)
days of service incentive leaves.
Retail, service and agricultural establishments or operations employing not more than ten (10) employees
or workers are exempted from the coverage of this provision.
Violation of this provision is hereby declared unlawful and subject to the penal provisions under Article
288 of this Code.
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