LABOR LAW REVIEW

SYLLABUS
PART 3
1st Semester, AY 2023-2024
Atty. Cyrus I. Restauro
Cagayan State University – College of Law

III. Labor Standards

A. Conditions of Employment
1. Coverage

o Art. 82, Labor Code; Sec. 1, Rule 1, Book III, IRR

o Additional exemptions:

o Article 94 and 95, Labor Code

o Section 1 (b), Rule II, Book III, IRR

2. Hours of Work

 Compensable Work Hours

o Art. 84, Labor Code; Sec. 3, Rule I, Book III, IRR

 Principles in Determining Hours Worked

o Section 4, Rule I, Book III, IRR

 Normal Hours of Work; Hours Worked

o Art. 83, Labor Code

 Broken hours
 Reduction of working hours
 Compressed Work Week

 Department Advisory No. 2, Series of 2004

 Reduction of Working Days Due to Losses

  Linton Commercial Co. Inc. vs. Hellera, G.R. No. 163147,
October 10, 2007

 Philippine Graphic Arts, Inc. vs. NLRC, G.R. No. L-

80737, Sept. 29, 1988

o Union Carbide Labor Union vs. Union Carbide Philipqpines, Inc. (1992)

o Advisory Opinion on Conditions of Employment of Part-time Workers

o Art. 84, Labor Code

o Policy Instructions No. 36, dated May 22, 1978

Effects of work interruption due to brownouts.

 Meal Periods

o Art. 85, Labor Code

o Sec. 7, Rule I, Book III, IRR

o Last par., Sec. 7 Rule I, Book III, IRR

o Sime Darby Pilipinas, Inc. vs. NLRC, G.R. No. 119205, April 15, 1998

o National Development Company vs. CIR, G.R. No. L-15422,

November 30, 1962

 Night Shift Differential

o Sec. 1, Rule II, Book III, IRR (Coverage)

o Sec. 2, Rule II, Book III, IRR (Rate)
o Mercury Drug Co., Inc. vs. Dayao, G.R. No. L-30452, September 30,
1982

 Overtime Work

o Art. 87, Labor Code

o No. 4 (c), 2019 Handbook on Workers’ Statutory Monetary Benefits

 o PESALA vs. NLRC, G.R. G.R. No. 105963, August 22, 1996

o Art. 88, Labor Code (Undertime not offset by overtime)

o Art. 89, Labor Code (Emergency overtime work)

o Mercader vs. Manila Polo Club, G.R. No. L-8374, September 28,
1956

o PAL Employees Savings and Loan Association, Inc. vs. NLRC,

G.R. No. 105963, August 22, 1996

o Stolt-Nielsen Marine Services [Phils.], Inc. vs. NLRC, G.R. 105396,

November 19, 1996

o Acuna vs. CA, G.R. No. 159832, May 5, 2006

 Computation of Additional Compensation

o Art. 93, Labor Code (Compensation for Rest Day, Sunday, or

Holiday Work)

o Art. 94, Labor Code (Right to Holiday Pay)

o Rule IV, Book III, IRR (Exempt employees)

o Regular vs. Special Holidays; Special Holidays vs. Special Working

Holidays

o No. 2 (c), 2019 Handbook on Workers’ Statutory Monetary Benefits

3. Weekly Rest Periods

 Art. 91(a), Labor Code (Rule on weekly rest periods)

 Art. 91(b), Labor Code (Employer’s prerogative and exception therein)
 Sec. 4, Rule III, Book III, IRR (Preference of employee on religious
grounds; exception)
 Sec. 5, Rule III, Book III, IRR (Notification of rest day; simultaneous or
individual)
 Sec. 6, Rule III, Book III, IRR (When employer may require work on
rest day; exclusive)
 Mercury Drug Co., Inc. vs. Dayao, G.R. No. L-30452, September 30,
1982
 Lagatic vs. NLRC, G.R. No. 121004, January 28, 1998
4. Holidays

 Art. 94, Labor Code

 Sec. 1, Rule IV, Book III, IRR (Coverage; Exemption)
 Sec. 6, Rule IV, Book III, IRR (Absences)
 Sec. 10, Rule IV, Book III, IRR (Successive regular holidays)
 Asian Transmission Corporation vs. CA, G.R. No. 144664, March 15,
2004
 Lagatic vs. NLRC, G.R. No. 121004, January 28, 1998

1.1 Holiday Pay of Teachers

o Sec. 8, Rule IV, Book III, IRR

o Jose Rizal College vs. NLRC, G.R. No. 65482, December 1, 1987

4.2. Holiday Pay of Piece Workers, Takay and Others Paid by Results

o Sec. 8, Rule IV, Book III, IRR (Piece workers)

o Lambo vs. NLRC, G.R. No. 111042, October 26, 1999

1.2 Monthly-Paid Employees, Not Excluded

o The Chartered Bank vs. Ople, G.R. No. L-44717, August 28, 1985

5. Service Incentive Leaves

 Art. 95, Labor Code; Sec. 2, Rule V, Book III, IRR

 Cebu Institute of Technology vs. Ople, G.R. No. L-58870, December
18, 1987

1.1 Entitlement of Kasambahays

o Sec. 29, RA 10361

1.2 Curious Animal Doctrine

o Auto Bus Transport System, Inc. vs. Bautista, G.R. No. 156367,
May 16, 205

6. Service Charges
  Art. 96, Labor Code; Sec. 1, Rule VI, Book III, Labor Code (Covered
establishments)
 Sec. 3, Rule VI, Book III, IRR (Distribution)

6.1 Tips vs. Service Charges

o Mayon Hotel & Restaurant vs. Adarna, G.R. No. 157634, May 16,
2005

7. 13th Month Pay

 PD No. 851 [December 16, 1975]

 Sec. 2(a), IRR of PD 851 [Minimum Amount]
 No. 1, Revised Guidelines on the Implementation of the 13th Month Pay
Law [Minimum Period of Service Required]
 Honda Phils., Inc. vs. Samahan ng Malayang Manggagawa sa Honda,
G.R. No. 145561, June 15, 2005

1.1 Managerial Employees; Excluded

House of Sara Lee vs. Rey, G.R. No. 14913, August 31, 2006

1.2 Kasambahays; Now Covered

o RA 10361

1.3 Commission vis-à-vis 13th Month Pay

o Reyes vs. NLRC, G.R. 160233, August 8, 2007

1.4 CBA vis-à-vis 13th Month Pay

o No. 4[a], Revised Guidelines on the Implementation of the 13 th

Month Pay Law

B. Wages
1. Payment of Wages

1.1 Basic Wage

o Item (n), Definition of Terms, IRR of RA 6727 [Definition of Basic

Wage]
 o Honda Phils., Inc. vs. Samahan ng Malayang Manggagawa sa
Honda, G.R. No. 145561, June 15, 2005

1.2 Attributes of Wage

o Art. 97 (f), Labor Code

1.3 Minimum Wage

o Item (o), Definition of Terms, IRR of RA 6727 [Definition of

Statutory Minimum Wage]

o Mayon Hotel and Restaurant vs. Adana, G.R. No. 157634, May 16,
2005

1.4 COLA

o Maynilad Water Supervisors Association vs. Maynilad Water

Services, Inc., G.R. No. 198935, November 27, 2013

1.5 “No Work, No Pay” Principle

o Aklan Electric Cooperative vs. NLRC, G.R. No. 121439, January

25, 2000

1.6 Wage vs. Salary

o Art. 1708, Civil Code

o Equitable Banking Corp. vs. Sadac, G.R. No. 164772, June 8,

2006

1.7 Facilities vs. Supplements

o State Marine Cooperation and Royal Line, Inc. vs. Cebu Seamen’s
Association, Inc., G.R. No. L-12444, Feb. 28, 1963

o Atok Big Wedge Mining Co., Inc. vs. Atok Big Wedge Mutual
Benefit Association, G.R. No. L-5276, March 3, 1953

o Mabeza vs. NLRC, G.R. 118506, April 18, 1997

2. Prohibitions Regarding Wages

o Art. 112, Labor Code [Non-interference by employer in the disposal

by employees of their wages]
o Art. 113, Labor Code [Prohibition to deduct from wages]
  Permissive deductions:
a) Art. 114, LC [See below]
b) Art. 259 (e), LC [Agency fees]
c) Radio Communications of the Phils. Inc vs. SOLE, G.R. No.
77959, Jan. 9, 1989 [Union service fees]
d) Sec. 13, Rule VIII, Book III, IRR of LC [Payment to third
persons]
e) Sec. 7, Rule VI, Book III [Payment of facilities]
f) Premium payments for SSS, PhilHeath, Employees’
Compensation and Pag-IBIG
g) NIRC [Withholding tax]
h) Art. 1706 [Debt to employer]
i) Art. 1708 [Court judgment in specific instances]
j) Art. 59, RA 6938 [Membership in a cooperative]

o Art. 114, Labor Code [Prohibition against deposit requirement]

 Labor Advisory No. 11, Series of 2014

 Five J Taxi vs. NLRC, G.R. No. 111474, August 22, 1994

o Art. 116, Labor Code [Prohibition on withholding of wages and

kickbacks]

 Art. 1706, Civil Code [Deduction for debt due]

 Art. 1709, Civil Code [Prohibition to seize or retain articles
belonging to laborer]
 SHS Perforated Materials, Inc. vs. Diaz, G.R. No. 185814,
October 13, 2010

o Art. 117, Labor Code [Prohibition against deduction to ensure

employment]
o Art. 118, Labor Code [Retaliatory actions by employer]

 Philippine American Cigar and Cigarette Factory Workers

Independent Union vs. Philippine American Cigar and
Cigarette Manufacturing Co., G.R. No. L-18364, February
28, 1963

o Art. 119, Labor Code [False statement, report or record]

3. Wage Distortion; Concept

3.1 Across-the-Board Wage Increase

 o Metropolitan Bank and Trust Co., Inc. vs. NWPC, G.R. No. 14432,
February 6, 2007

3.2 Definition of Wage Distortion

o Art. 124, Labor Code

o Trust Company Employees Union-ALU-TUCP vs. NLRC, G.R. No.
102636, Sept. 10, 1993

o Prubankers Association vs. Prudential Bank and Trust Company,

G.R. No. 131247, Jan. 25, 1999

3.3 Wage Distortion; When Correctible

o Bankard vs. NLRC, G.R. No. 140689, Feb. 17, 2004

3.4 Wage Distortion; How Rectified

o Art. 124, Labor Code

4. Non-diminution of Benefits

 Art. 100, Labor Code

4.1 Meaning of “Supplements or Other Employee Benefits”

Vergara, Jr. vs. Coca-cola Bottlers, G.R. No. 176985, April 1, 2013

Royal Plant vs. Coca-Cola, G.R. No. 198783, April 15, 2013

San Miguel Corp. vs. Layoc, Jr., G.R. No. 149640, Oct. 19, 2007

Coca-cola vs. ICCPELU, G.R. No. 195297, December 5, 2018

4.2 Sources of Benefits

Wesleyan University – Philippines vs. Wesleyan University –

Philippines Faculty and Staff Association, G.R. No. 181806, March 12,
2014

4.3 Company Practice and Principle of Non-Diminution of Benefits

Vergara, Jr. vs. Coca-cola Bottlers Philippines, Inc., G.R. No. 176985,
April 1, 2013

Requisites of diminution of benefits:

 a) Grant or benefit is founded on a policy or has ripened into a
practice over a long period of time

Netlink Computer Inc. vs. Delmo, G.R. No. 160827, June 18,
2009

National Sugar Refineries Corp. vs. NLRC, G.R. No. 101761,

March 24, 1993

Del Rio vs. DPO Philippines, Inc., G.R. No. 211525, December
10, 2018

b) Practice is consistent and deliberate

Republic Planters Bank vs. NLRC, G.R. No. 117460

c) Practice is not due to error in the construction or application of a

doubtful or difficult question of law; and

Globe Mackey Cable and Radio Corporation vs. NLRC, G.R.

No. 74156, June 29, 1988

Central Azucarrera de Tarlac vs. Central Azucarrera de Tarlac

Labor Union – NLU, G.R. No. 188949, July 26, 2010

d) Diminution or discontinuance is done unilaterally by the

employer

Insular Hotel Employees Union – NFL vs. Waterfront Insular

Hotel Davao, G.R. No. 174040-41, September 22, 2010

4.4 Elimination/Diminution of Benefits as Constructive Dismissal

Unicorn Safety Glass, Inc. vs. Basarte, G.R. No. 154689, Nov. 25,
2004

C. Leaves

1. Service Incentive Leave

Art. 95 (a), Labor Code

2. Maternity Leave
RA 11210 (105-Day Expanded Maternity Leave Law) and its IRR

2.1 Coverage

 Sec. 1, Rule III, IRR of RA 11210

2.2 Benefits

 Sec. 2, Rule III, IRR of RA 11210

2.3 Grant of Maternity Leave

 Sec, 1, Rule IV, IRR of RA 11210

2.4 Manner of Enjoyment

 Sec. 2, Rule IV, IRR of RA 11210

2.5 Extension

 Sec. 3, Rule IV, IRR of RA 11210

2.6 Frequency of the Grant

 Sec. 4, Rule IV, IRR of RA 11210

2.7 Grant of Maternity Leave Benefits After Termination of Employment

 Sec. 5, Rule IV, IRR of RA 11210

2.8 Maternity Leave of a Female Worker With Pending Administrative Case

 Sec. 6, Rule IV, IRR of RA 11210

2.9 Maternity Leave for Female Workers in the Public Sector

a. Eligibility

o Sec. 1, Rule V, IRR of RA 11210

b. Notice of pregnancy and application for leave

o Sec. 2, Rule V, IRR of RA 11210

c. Maternity leave in the teaching profession

 o Sec. 3, Rule V, IRR of RA 11210

d. Extended maternity leave

o Sec. 4, Rule V, IRR of RA 11210

Two options: paid leave or 30-day leave without pay.

e. Manner of payment of maternity leave benefits

f. Consecutive pregnancies and multiple childbirths

Sec. 6, Rule V, IRR of RA 11210

g. Dispute resolution

Sec. 7, Rule V, IRR of RA 11210

2.10 Maternity Leave for Female Workers in the Private Sector

a. Eligibility

Sec. 1, Rule VI, IRR of RA 11210

b. Notice requirement

Sec. 2, Rule VI, IRR of RA 11210

c. Amount of benefit

Sec. 3, Rule VI, IRR of RA 11210

d. Reimbursement

Sec. 4, Rule VI, IRR of RA 11210

e. Salary differential, exceptions

Sec. 5, Rule VI, IRR of RA 11210

f. Bar to recovery of sickness benefits

Sec. 6, Rule VI, IRR of RA 11210

g. Consecutive pregnancies and multiple childbirths

 Sec. 7, Rule VI, IRR of RA 11210

h. Liability of employer

Sec. 8, Rule VI, IRR of RA 11210

i. Dispute resolution

Sec. 9, Rule VI, IRR of RA 11210

2.11 Maternity Leave benefits for Women in the Informal Economy

 Sec. 1, Rule VI, IRR of RA 11210

2.12 Allocation of Maternity Leave Credits

a. Allocation to the child’s father or alternate caregiver

o Sec. 1, Rule VII, IRR of RA 11210

b. Allocation for the SSS-covered female worker

o Sec. 2, Rule VII, IRR of RA 11210

c. Allocation of maternity leave credits for female workers in the public

sector

o Sec. 3, Rule VII, IRR of RA 11210

d. Death or permanent incapacity of the female worker

o Sec. 4, Rule VII, IRR of RA 11210

2.13 Maternity Leave for Female National Athletes

o Sec. 1, Rule XI, IRR of RA 11210

3. Paternity Leave

3.1 Concept and Purpose

o RA 8187

3.2 Conditions for Availment

 o No. 9 [C], 2019 Handbook on Workers’ Statutory Monetary Benefits
o No. 9 [F], 2019 Handbook on Workers’ Statutory Monetary Benefits

4. Solo Parent Leave

4.1 Concept and Purpose

o RA 8972

4.2 Conditions for Availment

o No. 10, 2019 Handbook on Workers’ Statutory Monetary Benefits

5. Leave Benefits for Women Workers Under RA TO 9710 and RA 9262

5.1 Special Leaves for Women Workers

5.2 Leave for Victims of Violence Against Women and Children

D. Special Groups of Employees

1. Women

a) Discrimination

 Art. 133 [135], LC

b) Stipulation Against Marriage

 Art. 134 [136], LC

 Philippine Telegraph and Telephone Company vs. NLRC, G.R. No.

118978, May 23, 1997

 Duncan vs. Glaxo Welcome, G.R. No. 162994, Sept. 17, 2004

c) Prohibited Acts

 Art. 135 [137], LC; Sec. 13, Rule XII, IRR LC

 Del Monte Phil., Inc. vs. Velasco, G.R. No. 153477, March 6, 2007

 Lakpue Drug, Inc. vs. Belga, G.R. No. 166379, October 20, 2005

d) Sexual Harassment (RA 7877)

  Sec. 3, RA 7877
o Sexual harassment settings
o Persons liable
o Work-related or employment environment sexual harassment

 Villarama vs. NLRC, G.R. No. 106341, September 2, 1994

 Philippine Aeolus vs. NLRC, G.R. No. 124617, April 28, 2000

 Sec. 4, RA 7877 (Duty of employer or head of office)

 Sec. 5, RA 7877 (Solidary liability of employer or head of office)
 Sec. 6, RA 7877 (Right of victim to institute a separate and
independent action)
 Sec. 7, RA 7877 (Prescription of action)

2. Minors (RA 7610, as amended by RA 9231)

3. Kasambahay (RA 10361)

3.1 Coverage

 Sec. 2, Rule I, IRR of RA 10361

3.2 Exclusions

 Sec. 3 (e), Rule I, IRR of RA 10361

3.3 Hiring of Kasambahay

 Sec. 1, Rule II, IRR of RA 10361 (Mode of hiring)

 Sec. 2, Rule II, IRR of RA 10361 (Cost of hiring)
 Sec. 3, Rule II, IRR of RA 10361 (Deployment expenses)

3.4 Pre-employment Requirement

 Sec. 4, Rule II, IRR of RA 10361

3.5 Written Employment Contract

 Sec. 11, Art. III, RA 1061; Sec. 5, Rule II, IRR of RA 10361
(Requirements of a Written Contract and its Contents)
 Sec. 7, Rule II, IRR of RA 10361 (Distribution of copies)
 Sec. 8, Rule II, IRR of RA 10361 (Renewal of contract)
 Sec. 11 [b], Art. III, RA 10361 vis-à-vis Sec. 32, Art. V, RA 10361
(Nature of emplyoyment)
 Sec. 32, Art. V, RA 10361 (Termination of Service)
3.6 Rights and Privileges of Kasambahay

3.6.1 Minimum Wage

 See latest RTWPB Wage Order

 Sec. 4, Rule IV, IRR of RA 10361 (Frequency of payment of
wages)
 Sec. 25, Art. IV, RA 10361 (To whom paid)
 Sec. 25, Art. IV, RA 10361 in relation to Sec. 30, Art. IV, RA
10361 (Deductions, prohibtion; when allowed)
 Sec. 6, Rule V, IRR of RA 10361 (Deduction for loss or
damage)
 Sec, 30, Art. IV, RA 10361 (Mode of payment)
 Sec, 26, Art. IV, RA 10361 (Pay slip)
 Sec, 27, Art. IV, RA 10361 (Prohibition on interference in the
disposal of wage)
 Sec, 28, Art. IV, RA 10361 (Prohibition against withholding of
wages)

3.6.2 Terms and Conditions of Employment

 Sec, 16, Art. III, RA 10361 (Employable age)

 Sec. 20, Art. IV, RA 10361; Sec. 12-A, of RA 7610 (Normal work
hours)
 Sec. 25, Art. IV, RA 10361 (13th month pay)
 Sec. 21, Art. IV, RA 10361 (Weekly rest period)
 Sec. 29, Art. IV, RA 10361 (Service incentive leave)
 Sec. 30, Art. IV, RA 10361 (Social security benefits)
 Sec. 3, Rule V, IRR of RA 10361 (Employer’s obligation to
register and enroll)
 Sec. 14, Art. III, RA 10361 (Deposits for loss or damage)
 Sec. 5, Art. II, RA 10361 (Standard of treatment)
 Sec. 6, Art. II, RA 10361 (Board, lodging and medical
attendance)
 Sec. 7, Art. II, RA 10361 (Access to outside communication)
 Sec. 8, Rule V, IRR of RA 10361 (Prohibition against privileged
communication)
 Sec. 9, Art. II, RA 10361 (Opportunities for education and
training)
 Sec. 17, Rule IV, IRR of RA 10361 (Membership in labor
organization)
 Sec. 19, Art. IV, RA 10361 (Health and safety)
 Sec. 15, Art. III, RA 10361 (Prohibition on debt bondage)
 Sec. 22, Art. IV, RA 10361 (Assignment to non-household work)
 o Apex Mining Company, Inc. vs. NLRC, G.R. No. 94951,
April 22,1991

o Remington Industrial Sales Corp. vs. Castaneda, G.R.

Nos. 169295-96

 Sec. 23, Art. IV, RA 10361 (Extent of duty outside the

household)

3.7 Standards for Employment of Working Children

 Sec. 3 (k), Rule I, IRR of RA 10361; Sec. 1, Rule VI, IRR of RA 10361
(Working age)
 Sec. 16, Art. III, RA 10361 (Benefits)
 Sec. 2, Rule VI, IRR of RA 10361 (Prohibitions)

3.8 Termination of Kasambahay

3.8.1 Pre-termination

 Sec. 32, Art. V, RA 10361

3.8.2 Termination initiated by the Kasambahay

 Sec. 33, Art. V, RA 10361

3.8.3 Termination initiated by the Employer

 Sec. 32 & 34, Art. V, RA 10361

3.8.4 Invalid ground for termination

 Sec. 4, Rule VII, IRR of RA 10361

3.8.5 Employment certification

 Sec. 35, Art. V, RA 10361

3.8.6 Mechanism for settlement/disposition of labor-related disputes

 Sec. 37, Art. VI, RA 10361

3.8.7 Crimes and Offenses

 Sec. 5, Rule XI, IRR of RA 10361

4. Homeworkers

 Art. 151 [153] to 153 [155], Labor Code

 Department Order No. 5-92

5. Night Workers

 Art. 154-161, Labor Code

 Department Order No. 119-12, Series of 2012

6. Apprentices and Learners

 Apprentices

Arts. 57-72, LC

 Learners

Arts. 73-77, LC

7. Persons with Disabilities

 RA 7277, as amended by RA 9442

a) Discrimination
b) Incentives for Employers