Memory Aid LABOR
Memory Aid LABOR
Memory Aid LABOR
PRELIMINARY TITLE
6.Right to Receive a Living Wage
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
Page 2 of 72
SAN BEDA COLLEGE OF LAW
MEMORY AID in LABOR LAW
Any form of reproduction of this copy is strictly prohibited!!!
LABOR LAW COMMITTEE: JUBERT JAY C. ANDRION, Chairperson, PAULITO DEJESUS, EDP
MEMBERS: RJ Nolasco, Michelle Marquez, JoMarie Lazaro, AnnaLeah Lee, Grace Tenorio, Allan Alda, Jono DeGuzman, Elmer
Guerzon, Angeluz Torres, Sheila Sulit, Liezel DeLeon, Ana Marie Gayos, Liza Sato , Mac-Mac Romero, Filmar Callejo, Sally Silva,
Joy Mejia, Howard Arzadon
Page 3 of 72
WORKER -any member of the labor force,
whether employed or unemployed
1. Preserve the landholding in the hands of the 1. Contract Processing workers hired thru the
owner-tiller and his heirs; POEA shall be issued the individual
2. minimize land speculation; and employment contract and such other
3. prevent a return to the regime of land documents as may be necessary for travel
ownership by a few. 2. Passport Documentation
3. Visa Arrangement
PRESCRIPTIVE PERIOD
NIGHT SHIFT DIFFERENTIAL -Additional - The minimum normal working hours fixed by
compensation of not less than ten percent the Act need not be continuous to
(10%) of an employees regular wage for every constitute the legal working day
hour of work done between 10:00 PM and 6:00
AM, whether or not this period is part of the - Express approval by a superior is not a
workers regular shift. prerequisite to make overtime work
compensable. HOWEVER, written
- If work done between 10 PM and 6 AM is authority after office hours during rest days
overtime work, then the 10% night shift and holidays are required for entitlement to
compensation.
ART 89. EMERGENCY OVERTIME
- The right to OT pay cannot be waived. WORK
Such waiver is contrary to law and public
policy.
WHEN WORKER MAY BE REQUIRED
TO RENDER OT:
EXCEPTIONS:
(WNUNCN)
1. When the waiver stipulates higher payment
W 1. Country is at war or any other
or rate of OT pay; or
national/local emergency has been
2. Where the contract of employment requires
declared by the Chief
work for more than eight hours of work at
Executive/Congress
specified wage per day providing for a fixed
N 2. Necessary to prevent loss of
hourly rate or that the daily wages include
life/property/ in case of actual/impending
overtime pay.
emergency in the locality
U 3. There is urgent work to be performed
COMPRESSED WORKWEEK -allowable on machines, installations, or equipment
under the following conditions: in order to avoid serious loss/damage to
1. It is voluntary on the part of the worker the employer or some other causes of
2. There will be no diminution of the weekly or similar nature
monthly take-home pay and fringe benefits N 4. Work is necessary to prevent
of the employees; loss/damage to perishable goods; and
3. The value of the benefits that will accrue to C 5. where the completion or continuation
the employees under the proposed schedule of the work started before the eighth
is more than or at least commensurate with hour is necessary to prevent serious
the one-hour OT pay that is due them during obstruction or prejudice to the business
weekdays based on the employees or operations of the employer.
quantification N 6. when it is necessary to avail of
4. The one-hour OT pay will become due and favorable weather or environmental
payable if they are made or permitted to conditions where performance or quality
work on a day not scheduled for work on the of work is dependent thereon
compressed work week
5. The work does not involve strenuous physical
ART 90. REGULAR WAGE
exertion and employees must have
adequate rest periods
- include the cash wage only, without deduction
5. The arrangement is of temporary duration.
on account of facilities provided by the
employer
ART 88. UNDERTIME NOT OFFSET BY
CHAPTER II
OVERTIME
WEEKLY REST PERIOD
- Undertime work on any particular day
shall not be offset by overtime work on ART 91. RIGHT TO A WEEKLY REST
any other day. Permission given to the DAY
employee to go on leave on some other day
of the week shall not exempt the employer - Employees should be provided a rest period
from paying the additional compensation. of not less than twenty four (24)
consecutive hours after every six (6)
RATIONALE consecutive normal work days.
- An employees regular pay rate is lower than
the overtime rate. Offsetting the undertime - Employer shall schedule the weekly rest day
hours against the overtime hours would of his employees subject to collective
result in undue deprivation of the bargaining agreement. However, the
employees extra pay for overtime work. employer shall respect the preference of
employees as to their weekly rest day
when such preference is based on
religious grounds. But when such
preference will prejudice the operations of
the undertaking and the employer cannot
normally result to other remedial measures,
the employer may so schedule the weekly
rest day that meets the employees choice
for at least two (2) days a month
ART 92. WHEN EMPLOYER MAY CHAPTER III
REQUIRE WORK ON A REST DAY HOLIDAYS, SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
WHEN EMPLOYEE MAY BE REQUIRED
TO RENDER WORK ON A REST ART 94. RIGHT TO HOLIDAY PAY
DAY:
HOLIDAY PAY - A days pay given by law to
1. In case of actual or impending emergencies an employee even if he does not work on a
caused by serious accident, fire, flood regular holiday. It is limited to the ten (10)
typhoon, earthquake epidemic or other regular holidays listed by law.
disaster or calamity, to prevent loss of life or - employee should not have been absent
property or in cases of force majeure or without pay on the working day preceding the
imminent danger to public safety regular holiday
2. urgent work to be performed on the
machinery, equipment or installation to avoid Art. 94(b) refers to regular holidays, special
serious loss which the employer would holidays are taken care of under Art. 93.
otherwise suffer
3. abnormal pressure of work due to special PREMIUM PAY - Additional compensation for
circumstances, where the employer cannot work performed on a scheduled rest day or
ordinarily be expected to resort to other holiday.
measures
4. prevent serious loss of perishable goods
REGULAR HOLIDAYS:
5. nature of work requires continuous operation
for seven days a week
6. work is necessary to avail of favorable 1. New Years Day -January 1
weather or environmental conditions where 2. Maundy Thursday -Movable date
performance or quality of work depends 3. Good Friday- Movable date
upon them 4. Araw ng Kagitingan -April 9
5. Labor Day -May 1
6. Independence Day -June 12
ART 93. COMPENSATION FOR REST 7. National Heroes Day`-Last Sunday of
DAY, SUNDAY OR HOLIDAY WORK August
8. Bonifacio Day-November 30
- this article does not prohibit a stipulation in 9. Christmas Day-December 25
the CBA for higher benefits 10. Rizal Day-December 30
SERVICE INCENTIVE LEAVE (SIL) - Five (5) WAGE - the remuneration or earnings,
days leave with pay for every employee however designated, capable of being
who has rendered at least one (1) year of expressed in terms of money, whether fixed
service. or ascertained on a time, task, piece, or
commission basis or other method or
calculating the same, which is payable by
BUT DOES NOT APPLY TO THOSE an employer to an employee under a
WHO ARE: written or unwritten contract of employment
for work done or to be done or for services
1. already enjoying the said benefits; or rendered or to be rendered and includes
2. enjoying vacation leave with pay for at least the fair and reasonable value of board,
5 days lodging, or other facilities customarily
3. those employed in establishments regularly furnished by the employer to the employee.
employing less than 10 employees
4. those employed in establishments exempted FAIR DAYS WAGE FOR A FAIR DAYS
from granting this benefit by the Secretary of LABOR - if there is no work performed by
Labor. the employee, there can be no wage or
pay unless the laborer was able, willing,
ONE (1) YEAR OF SERVICE.- service within and ready to work but was prevented by
12 months, whether continuous or broken, management or was illegally locked out,
reckoned from the date the employee started suspended or dismissed.
working including authorized absences and paid
regular holidays unless the number of working WAGE SALARY
day in the establishment as a matter of practice
or policy, or provided in the employment contract - compensation for - denotes higher
is less than 12 mos. manual labor degree of
employment
- SIL is commutable i.e., convertible to cash-
the cash equivalent is aimed primarily at - Not subject to - subject to execution
encouraging workers to work continuously execution (Gaa vs. CA)
and with dedication to the company.
FACILITIES shall include all articles or
ART 96. SERVICE CHARGES
services for the benefit of the employee or his
family but shall not include tools of the trade or
TO BE DISTRIBUTED TWICE A MONTH articles or services primarily for the benefit of the
AND AT THE RATE OF: employer or necessary to the conduct of the
employers business.
1. 85% for all covered employees to be equally
distributed among them
FACILITIES SUPPLEMENTS 2. has ripened into practice over a long period
of time, and the practice is consistent and
- Are items of - Constitute extra deliberate.
expense necessary remuneration or 3. It is not due to an error in the
for the laborers and special privileges or construction /application of a doubtful or
his familys benefits given to or difficult question of law.
existence and received by the
subsistence laborers over and - But even in cases of error, it should be
above their ordinary shown that the correction is being done
earnings wages soon after the discovery of the error.
COVERAGE:
ART 100. PROHIBITION AGAINST - All rank-and-file employees regardless of their
ELIMINATION OR DIMUNITION OF designation or employment status and
BENEFITS irrespective of the method by which their wages
are paid, are entitled to this benefit, provided,
LEGAL REQTS. BEFORE FACILITIES that they have worked for at least one (1)
CAN BE DEDUCTED FROM THE month during the calendar year.
EMPLOYEES WAGES:
FORMS:
1. Proof that such facilities are customarily
furnished by the trade ; 1. Christmas bonus
2. Voluntarily Accepted in writing by the 2. midyear bonus
employee 3. profit sharing payments; and
3. Charged at Fair & Reasonable Value 4. other cash bonuses amounting to not less
than 1/12 of its basic salary.
THE NON-DIMINUTION RULE -the benefits
- Difference of opinion on how to compute the
being given to employees cannot be taken
13th month pay does not justify a strike
back or reduced unilaterally by the
employer because the benefit has become
- It must always be in the form of legal tender
part of the employment contract, written or
. Free rice, electricity cash and stock
unwritten.
dividends, COLA not equivalent
The rule is applicable if it is shown that
the grant of the benefit is:
CATEGORIES OF PIECE-RATE
WORKERS: ART 103. TIME OF PAYMENT
EXCEPTIONS:
- checks or money orders may be paid if:
REQUISITES :
CHAPTER I
EMPLOYMENT OF WOMEN
MATERNITY LEAVE UNDER THE SSS LAW
ART 130. NIGHTWORK PROHIBITION A female member, who need not be
legally married, who has paid for at least three
- No woman , regardless of age, shall be (3) monthly contributions in the 12-month
employed or permitted or suffered to work, period immediately preceding the semester of
with or without compensation in any :
1. Industrial undertaking between 10PM-6AM her childbirth or miscarriage shall be paid a daily
2. Commercial/Non-Industrial undertaking maternity benefit equivalent to 100% of her
between 12 MN-6AM average daily salary credit for 60 days or 78
3. Agricultural undertaking at nighttime unless, days, in case of caesarian delivery.
she is given a period of rest of not less than
9 consecutive hours REQUISITES :
The Secretary of Labor may require employers - ART 133 (b) subsists, i.e., the maternity
leave shall be extended without pay on
to:
account of illness medically certified to arise
1. Provide seats proper for women and permit
out of the pregnancy, delivery, abortion, or
them to use the seats when they are free
miscarriage, which renders the woman unfit
from work or during office hours provided
for work , unless she has earned unused
the quality of the work will not be
leave credits from which such extended
compromised;
leave may be charged.
2. To establish separate toilet rooms and
lavatories for men and women and provide
at least a dressing room for women; LIMIT OF THE BENEFIT: Applies only for the
3. To establish a nursery in the establishment; first four deliveries irrespective of who is the
4. To determine appropriate minimum age and father of the children, and may not be availed of
other standards for retirement or termination in addition to sickness benefit under the Social
in special occupations such as those of flight Security program.
attendants and the like
RA 8187 (PATERNITY LEAVE)
TITLE II
NATIONAL LABOR RELATIONS
COMMISSION 1. Cases certified to it for compulsory
arbitration by the Secretary of Labor under
Art. 263;
CHAPTER I 2. Injunction cases under Art. 218 and 264;
CREATION AND COMPOSITION and
3. Contempt cases.
ART. 213. NATIONAL LABOR
RELATIONS COMMISSION
- until they reach the age of 65 unless - Labor cases are not subject to Barangay
removed for causes as provided by law or Conciliation since ordinary rules on
become incapacitated to discharge the procedure are merely suppletory in
function of his office. character vis-a- vis labor disputes which are
primarily governed by labor laws.
CASES WERE THE NLRC HAVE
EXCLUSIVE AND ORIGINAL - The failure of the petitioner to file a motion
JURISDICTION: for reconsideration of the decision of NLRC
before filing a petition for certiorari has in the same to the grievance machinery and
certain instances been held not to be a fatal voluntary arbitration.
omission.
- The labor arbiter has jurisdiction over the
CHAPTER II claims of employees against GOCCs if the
POWERS AND DUTIES latter does not have an original charter and
has been incorporated under the
Corporation Code.
ART 217. JURISDICTION OF LABOR
ARBITERS AND THE COMMISSION. - The labor arbiter and the NLRC have no
jurisdiction over claims filed by employees
a. Except as otherwise provided under this against international agencies such as IRRI,
Code the Labor Arbiters shall have original WHO etc.
and exclusive jurisdiction to hear and
decide, within 30 calendar days after the ART 218. POWERS OF THE
submission of the case by the parties for COMMISSION
decision without extension, even in the
absence of stenographic notes, the following
POWERS OF THE NLRC:
cases involving all workers, whether
agricultural or non-agricultural:
a. Rule-making power
1, Unfair labor practice cases; b. Power to issue compulsory
2. Termination disputes; processes
3. If accompanied with a claim for c. Power to investigate matters
reinstatement, those cases that and hear disputes within its
workers may file involving wages, jurisdiction
rates of pay, hours of work and d. Contempt power
other terms and conditions of e. Power to issue injunctions and
employment; Restraining Orders
4. Claims for actual, moral,
exemplary and other forms of REQUISITES BEFORE RESTRAINING
damages arising from employer- ORDER/ INJUNCTION MAY ISSUE:
employee relations;
5. Cases arising from any violation 1. filing of a verified petition
of Art 264 of this Code, including 2. a hearing after due and personal notice has
questions involving the legality of been served in such manner as the
strikes and lockouts; and Commission shall direct, to all known
6. Except claims for Employees persons against whom the relief is sought
Compensation, Social Security, and also to the Chief Executive or other
Medicare and maternity benefits, public officials of the province or city within
all other claims arising from which the unlawful acts have been
employer-employee relations, threatened or committed charged with the
including those of persons in duty to protect the complainants property
domestic or household service, 3. reception at the hearing of the testimony of
involving an amount exceeding witnesses with opportunity for cross-
P5,000.00 regardless of whether examination, in support of the allegations of
accompanies with a claim for the complaint made under oath as well as
reinstatement. testimony in opposition thereto
7.Monetary claims of overseas 4. a finding of fact of the Commission to the
contract workers under the effect that :
Migrant Workers Act of 1995. a) prohibited or unlawful acts have been
threatened and will be committed and
b. The Commission shall have exclusive will be continued unless restrained, but
appellate jurisdiction over all cases no injunction or temporary restraining
decided by Labor Arbiters. order shall be issued on account of any
threat, prohibited, or unlawful act, except
c. Cases arising from the interpretation or against the persons, association or
implementation of CBA and those arising organization making the threat or
from the interpretation or enforcement of committing the prohibited or unlawful
company personnel policies shall be act or actually authorizing or ratifying the
disposed of by the Labor Arbiter by referring same after actual knowledge thereof.
b) That substantial and irreparable injury to 5. Regional Directors
the complainants property will follow 6. Med- Arbiters
c) That as to each item of relief to be
granted, greater injury will be inflicted Art 219. OCULAR INSPECTION
upon complainant by the denial of the
relief than will be inflicted upon the The Chairman, any Commissioner, labor Arbiter
defendants by the granting of the relief or their duly authorized representatives may, at
d) That complainants has no adequate anytime during working hours:
remedy at law
e) That public officers charged with the a. Conduct an ocular inspection on
duty to protect complainants property any establishment, building,
are unable or unwilling to furnish ship, place or premises,
adequate protection. including any work, material,
5. Posting of a bond implement, machinery,
appliance or any object therein;
REQUISITES BEFORE TRO MAY BE and
ISSUED EX PARTE: b. Ask any employee. Laborer, or
any person as the case may be
1. The complainant shall allege that, unless a for any information or date
TRO shall be issued without notice, a concerning any matter or
substantial and irreparable injury to question relative to the object of
complaints property will be unavoidable; the investigation
2. There is testimony under oath, sufficient, is
sustained, to justify the Commission in ART. 221. TECHNICAL RULES NOT
issuing a temporary injunction upon hearing BINDING AND PRIOR RESORT TO
after notice ; AMICABLE SETTLEMENT
3. The complainant shall first file an
undertaking with adequate security in an - An amicable settlement of a labor dispute
amount to be fixed by the Commission should be approved by the labor arbiter
sufficient to recompense those enjoined for before whom the case is pending after
any loss, expenses or damage caused by being satisfied that it was voluntarily entered
the improvident or erroneous issuance of by the parties and after having explained to
such order or injunction, including all them the terms and consequences thereof.
reasonable costs, together with a
reasonable attorneys fee, and expense of PURPOSE: for the employees protection for the
defense against the granting of any labor arbiter before whom the case is pending
injunctive relief sought in the same would be in a better position than just any labor
proceeding and subsequently denied by the arbiter to personally determine the voluntariness
Commission; and of the agreement and certify its validity.
4. The TRO shall be effective no longer than
20 days and shall become void at the RES JUDICATA applies only to judicial or
expiration of said 20 days counted from the quasi-judicial proceedings and not to the
date of the posting of the bond. exercise of administrative powers.
- In the absence of service of summons or a
ART 222. APPEARANCES AND FEES
valid waiver thereof, the hearings and
judgment rendered by the labor arbiter are
null and void. APPEARANCE OF NON-LAWYERS
BEFORE THE COMMISSION:
- The procedural and substantial
requirements of Art 218 (e) must be strictly GENERAL RULE: ONLY lawyers can
complied with before an injunction may appear before the NLRC, or any Labor Arbiter,
issue in a labor dispute.
EXCEPTIONS : Non-Lawyers can appear ONLY
THE FF. CAN ISSUE INJUNCTIONS/ in the following instances:
TRO IN LABOR DISPUTES
1. if they represent themselves; or
2. if they represent their organization
1. President (ART. 263, g)
or members thereof; or
2. Secretary of Labor (ART. 263, g)
3. if he is a duly-accredited member of
3. Labor Arbiters (ART. 217)
the legal aid office duly recognized
4. NLRC
by the DOJ of IBP in cases referred NO. The period of appeal to cases
thereto by the latter. decided by the regional Director and the Labor
Arbiter is NEVER extendible. It is the policy of
ATTORNEYS FEES: The maximum amount to the state to settle expeditiously labor disputes.
be given a lawyer is 10% of the monetary
benefits awarded to the employees excluding REQUISITES BEFORE APPEAL TO THE
the award for moral and exemplary damages NLRC IS DEEMED PERFECTED:
shall not be included.
1. File a verified memo of appeal within the
- Moral and exemplary damages and other
required period of appeal;
benefits that employee receives when he is
2. In case of monetary award, the employer
working are excluded.
should file a bond corresponding to the
monetary award excluding awards for moral,
- This article prohibits the payment of
exemplary damages and attorneys fees.
attorneys fees only where the same is 3. Appeal fee of P110;
effected through forced contributions from 4. Furnish the other party with a copy of the
the workers form their own funds as memo of appeal (proof of service).
distinguished from the union funds.
- Where the employer failed to post a bond to
perfect its appeal, the remedy of the
CHAPTER III employee is not a petition for mandamus by
APPEAL a motion to dismiss appeal.
3. Can only form, 3. Can form, join or - Government employees and employees of
join or assist Assisi labor government-owned and controlled
labor organization for corporations with original charters may
organization for purposes of CBA, bargain, however, such bargaining power
purposes not etc. is limited.
contrary to law. RATIONALE : GOCCs INCORPORATED
UNDER THE CORP. CODE ALLOWED TO
ORGANIZE:
- If not within 6 months, the parties may ONE-UNION, ONE-COMPANY POLICY- the
agree to the DATE OF RETROACTION. proliferation of unions in an employer unit is
This rule applies only if there is an discouraged as a matter of policy unless there
EXISTING AGREEMENT. IF THERE IS NO are compelling reasons which would deny a
EXISTING AGREEMENT, there is no certain class of employees the right to self-
retroactive effect because the date agreed organization for purposes of collective
upon shall be the start of the period of bargaining.
agreement.
EXCEPTIONS: supervisory employees who are
TAKE NOTE: Article 253-A on retroaction does allowed to form their own unions apart from the
not apply if the provisions were imposed by the rank-and-file employees
Secretary of Labor by virtue of arbitration. It
applies only if the agreement was voluntarily LABOR MANAGEMENT COUNCILS deal with
made by the parties. the employer on matters affecting employees
rights, benefits and welfare. They may be
SUCCESSOR-IN-INTEREST DOCTRINE formed even if there is already a union in the
occurs when an employer is succeeded by company.
another employer, the successor-in-interest who
is a buyer in good faith has no liability to TITLE VII- A
employees in continuing employment and
(as incorporated by RA 6715) 4. Denial of substantial justice
5. Erroneous interpretation of the law
GRIEVANCE MACHINERY AND
VOLUNTARY ARBITRATION
TITLE VIII
ART 260. GRIEVANCE MACHINERY STRIKES AND LOCKOUTS AND
AND VOLUNTARY ARBITRATION FOREIGN INVOLVEMENT IN TRADE
UNION ACTIVITIES
GRIEVANCE MACHINERY - Mechanism for
the adjustment of controversies or CHAPTER I
disputes arising from the STRIKES AND LOCKOUTS
interpretation or implementation of
the CBA and the interpretation or ART. 263. STRIKES, PICKETING AND
enforcement of personnel policies LOCKOUTS
PROBATIONARY PERIOD OF
AUTHORIZED CAUSES OF TERMINATION
BY THE EMPLOYER:
EMPLOYMENT - the period needed to
determine the fitness for the job, i .e., the
time needed to learn the job. 1. The installation of labor-saving devices
It is period during which the employer (automation)
may determine if the employee is qualified for 2. Redundancy (superfluity in the performance
possible inclusion in the regular force. of a particular work)
3. Redundancy to prevent losses (there is
NOTE:The standard which the probationary excess of employees and employer wants to
prevent financial losses)
employee is to meet must be made known by
4. The closing or cessation of operation of the
the employer to the employee at the time of the
establishment or undertaking UNLESS the
engagement.
closing is for the purpose of circumventing
the provisions of the Labor Code.
Probationary employees may be terminated for
5. Illness
the same causes as a regular employee, except a. If illness is incurable within 6 months
that there is an additional ground failure to and is
meet the standard. b. deleterious to his health or his co-
employees.
Is it necessary that probationary employment c. certification from public heath officer
be for a period of 6 months? that illness is incurable within 6
No. Provided that the following months.
requisites concur:
1. it is done before the lapse of 6 STANDARDS UNDER WHICH AN
months;
EMPLOYER MAY RETRENCH:
2.employee must be advised of such extension;
3. employee must agree.
1. Losses expected should be imminent and
substantial.
EFFECT IF PROBATIONARY EMPLOYEE IS 2.It must be reasonably necessary and likely to
ALLOWED TO WORK BEYOND 6 MONTHS: effectively prevent the expected losses
3. Alleged losses if already incurred, and the
If the probationary employee is allowed expected imminent losses sought to be
to work beyond the period of 6 months or the forestalled, must be proved by sufficient and
agreed probationary period, said employee convincing evidence.
become a regular employee by operation of law.
Under the Labor Code, an employee
ART. 285. TERMINATION BY
who is allowed to work after a probationary
period shall be considered a regular employee. EMPLOYEE
(Art. 281.)
ART. 282. TERMINATION BY EMPOYER TERMINATION BY THE EMPLOYEE
An employee may terminate WITHOUT
JUST CAUSES: JUST CAUSE the employee-employer
relationship by serving a WRITTEN NOTICE on
1. Serious misconduct or willful disobedience the employer at least one month in advance. .
by the employee of the lawful orders of his The employer upon whom no such
employer or representative in connection notice was served may hold the employee liable
with his work; for damages.
2. Gross and habitual neglect by the employee An employee may put an end to
of his duties; establish WITHOUT SERVING ANY NOTICE on
3. Fraud or willful breach by the employee of the employer for any of the following just
the trust reposed in him by his employer or causes:
duly organized representative;
4. Commission of a crime or offense by the 1. Serious insult by the employer or his
employee against the person of his representative on the hour and person of the
employer or any immediate member of his employee;
family or his duly authorized representative; 2. Inhuman and unbearable treatment
and accorded the employee by the employer or
5. Other causes analogous to the following: his representative;
3. Commission of a crime or offense by the 2. 65-compulsory retirement age
employer or his representative against the (no need for 5 years of
person of the employee or any of the service)
immediate members of his family; and
4. Other causes analogous to any of the BENEFITS- A retiree is entitled to a
foregoing. retirement pay equivalent at least month
salary for every year of service, a fraction of at
SEPARATION PAY least six (6) months being considered as one
whole year.
In case of termination due to Unless the parties provide for broader
inclusions, the term one half (1/2) month salary
a) THE INSTALLATION OF LABOR-SAVING shall mean:
DEVICES OF 15 days plus 1/12 of the 13 th month
b) REDUNDANCY, pay and
- the worker affected thereby shall be entitled the cash equivalent of NOT more
to a separation pay equivalent to at least than 5 days of service incentive
one (1) month pay or to at least one (1) leaves.
month pay for every year of service, (22.5 days per year of service)
whichever is higher.
NOTE: Exempted from the payment of
c) RETRENCHMENT TO PREVENT LOSSES retirement pay are retail, service and agricultural
and CLOSURES OR CESSATION OF establishments or operations employing NOT
OPERATIONS (NOT due to serious more than ten (10) employees or workers.
business losses or financial reverses)
- The separation pay shall be equivalent to
one (1) month pay or at least month pay BOOK SEVEN
for every year of service, whichever is
higher.
TRANSITORY AND FINAL
d) In the case of ILLNESS PROVISIONS
- separation pay equivalent to at least one
month salary or to month salary for every TITLE II
year of service, whichever is greater, a PRESCRIPTION OF OFFENSES AND
fraction of at least 6 months shall be
considered one (1) whole year.
CLAIMS
1. he is reemployed
COMPUTATION OF SERVICE
2. he recovers from his
disability as determined by
The computation of service for the
the GSIS, whose decision
purpose of determining the amount of benefits
shall be final and binding
payable shall be from the date of the original
3. he fails to present himself
appointment/ election including periods of
for medical examination
service at different times under the authority of
when required by the GSIS
the Republic of the Philippines and those that
may be prescribed by the GSIS in coordination
TEMPORARY DISABILITY BENEFITS
with the Civil Service Commission.
All service credited for retirement,
resignation or separation for which 75% of the current daily compensation
corresponding benefits have been awarded shall for each day or fraction thereof of temporary
be excluded in the computation of service in disability benefit not exceeding 120 days in one
case of reinstatement in the service of an calendar year after exhausting all sick leave
employer and subsequent retirement or credits and collective bargaining agreement sick
separation which is compensable. leave benefits. PROVIDED:
1. he is in service at the time of his
disability
2. if separated, he has rendered at
UNEMPLOYMENT OR INVOLUNTARY
least 3 years of service and has
SEPARATION BENEFITS
paid at least 6 monthly contributions
in the 12- month period immediately
preceding the disability
country of the rights of overseas Filipino
HOWEVER: workers:
A member cannot enjoy
temporary total disability benefit and sick leave 1. It has existing labor and social laws
pay simultaneously. protecting the rights of migrant
In no case shall it be less than workers;
70 pesos a day. 2. It is a signatory to multilateral
conventions, declarations or
SURVIVORSHIP BENEFITS: resolutions relating to the protection
of migrant workers;
Upon the death of a member, the 3. It has concluded a bilateral
primary beneficiaries shall be entitled to: agreement or arrangement with the
survivorship pension, PROVIDED: government protecting the rights of
a. member was in service at the time of his overseas Filipino workers; and,
death 4. It is taking positive, concrete
b. if separated from service, has rendered measures to protect the rights of
at least 3 years of service and paid 36 migrant workers.
monthly contributions with the 5- year
period immediately preceding his death JURISDICTION
or has paid a total of at least 180
monthly contributions. - NLRC
1. government employees
2. employees already receiving 13th month pay
3. household helpers
4. employees paid purely on commission basis
X. SOCIAL WELFARE LEGISLATION
COMPARATIVE CHART
EMPLOYER Employers in private sector All government agencies and All employers (private or public)
instrumentalities , including GOCCs
COVERAGE
COMPULSORY 1. Employees not over 60 years of age and their 1. Compulsory for all employees Any person compulsorily covered
employers. receiving compensation who have not by GSIS or SSS
2. 2. Domestic helpers whose monthly income reached compulsory retirement age Any person employed as casual,
is not less than P1,000.00. irrespective of employment status. emergency, temporary, substitute
3. Self-employed persons as determined by the or contractual
Commission : a) self-employed professionals; *Including barangay and sanggunian
b) partners and single proprietors; c) actors officials
and actresses, directors, etc; d) professional
athletes, coaches, trainers, etc. and e)
individual farmers and fishermen.
VOLUNTARY 1. Spouses who devote full time to managing of
household and family affairs, UNLESS they
are also engaged in other vocation or
employment which is subject to
MANDATORY coverage.
2. 2. Filipinos recruited by foreign-based
employers for employment abroad.
3. Employees separated from employment by
paying TOTAL contribution (meaning : both
employer and employees share)
BY-ARRANGEMENT
Any foreign government, international
organization or their wholly owned instrumentality
MAT enter into agreement for the inclusion of
their employees EXCEPT those covered by their
own respective civil service retirement systems.
1. AFP
EXEMPTED 1. purely CASUAL and not for purpose or 2. PNP
occupation of the employer. 3. Contractuals who have no employer
EMPLOYMENT
2. Performed in an alien vessel by an employee and employee relationship
if he is employed when such vessel is outside
of the Philippines. * Members of the judiciary and the
3. By the government of the Philippines or Constitutional Commissions life
instrumentality or agent thereof. insurance only
4. Foreign government of international
organization.
BENEFITS 1. Monthly pension 1. Life Insurance
2. Dependents pension 2. Retirement
3. Retirement 3. Disability
4. Death Benefits 4. Survivorship
5. Permanent Disability benefits 5. Separation
6. Funeral 6. Unemployment
7. Sickness
8. Maternity * Life insurance for the members of the
judiciary and constitutional commissions.
BENEFICIARIES
MODE 1. For those with employees Employee 1. The employer shall deduct each
OF COLLECTION contribution shall be deducted by the month from the salary or compensation of
employees based on an approved schedule. each employee the contribution payment.
Employer shall remit BOTH EMPLOYEE AND Employer shall remit to the system within
EMPLOYER contribution to the system. 10 days the Employer-Employee
2. For self-employed Self-employed shall pay contributions.
BOTH EMPLOYER AND EMPLOYEE
contributions to the system.
3. For government contribution remitted to the
SSS within the first 10 days of each calendar
month following the month got which they are
applicable.
ENTITLED TO Member has reached age of 60 or 65. OPTIONAL. Member meets the ff :
RETIREMENT 1. has worked for at least 15 years.
BENEFITS 2. Is at least 60 years of age at time of
retirement, and
3. Is not receiving monthly pension
benefit from permanent total disability
DISABILITIES DEEMED Complete and permanent loss of use of a Complete and permanent loss of a Complete and permanent loss of
PERMANENT PARTIAL digit, limb, ear (or both ears), hearing in one or digit, limb, ear (or both ears), hearing in use of a digit, limb, ear (or both ears),
both ears, or sight in one eye. one or both ears, or sight in one eye. hearing in one or both ears, or sight in
one eye.
SYSTEM EXCUSED For permanent disability in the ff. cases : For all contingencies in the ff. cases :
FROM LIABILITY 1. grave misconduct 1. intoxication
2. notorious negligence 2. willful intent to injure or kill ones
3. willful intent to kill self or another self or another
4. habitual intoxication 3. notorious negligence
COVERAGE Occurrence of contingency whether or not Occurrence of contingency whether or Work-related illness or injury.
work-connected. not work-connected.
NOTICE Employee to notify employer within 5 days Employee to notify employer within
REQUIREMENT from injury or illness(unless no longer 5 days from injury or illness (unless
necessary under the exceptions) it is no longer necessary under the
Employer to notify SSS within 5 days from exceptions)
notice. Employer to record the same in
logbook within 5 days from notice.
Employer to notify SSS or GSIS
within 5 days from recording in
logbook.
EFFECT OF Legal And eligible claimant may still SSS absolved unless notified of other
ERRONEOUS demand benefits, without prejudice to claim prior to payment.
PAYMENT right of GSIS to sue improper claimant.
DISPUTE SETTLEMENT 1. File claim with SSS. 1. File claim with GSIS. 1. File claim with SSS and GSIS.
2. Appeal to Social Security Commission. 2. Appeal to GSIS Board. 2. Appeal to ECC.
3. Appeal to CA. 3. Appeal to CA. 3. Appeal to CA
4. Appeal to SC 4. Appeal to SC. 4. Appeal to SC
EXCLUSIVENESS OF May Apply for same benefits in EC, if in Whenever other laws provide similar May apply for the same benefits
BENEFITS private sector. benefits for the same contingencies, under SSS, if in the private sector.
May not receive benefits for same members who qualifies has option to May apply for same benefits under
contingency under GSIS offers more (he may choose. If benefits chosen are less GSIS, if in public sector (applying
then receive deficiency) than under GSIS, he may get the Mazo Sugar Central vs CA case.
difference.
However, with respect to work-
connected illness and injuries, he
may also recover in full under ECC,
applying the Mazo Sugar Central vs
CA case.
PRESCRIPTIVE 10 years from the time the right of action 4 years from date of contingency
PERIODS accrues. except life and retirement benefits
5. Cases involving
prohibited acts in strikes
(ART. 264)