INTRODUCTION TO LABOR LAW “If the Labor Code or company rules are unclear or confusing, the decision

ART. 1. NAME OF DECREE – This decree shall be known as the “Labor should always favor the worker.”
Code of The Philippines.” Why? Kasi workers have less power than employers and this rule protects
"Guys, this law is officially called the Labor Code of the Philippines." Parang workers from unfair treatment.
pangalan lang yan ng group project para alam ng lahat what to call it. “Kapag hindi malinaw ang batas, dapat laging panalo si worker! "

What is the Labor Code?

- It’s like a rulebook for both workers and employers. ART. 5. RULES AND REGULATIONS
- Protects employees from unfair treatment (ex. kulang sahod, biglaang “So like, DOLE (Department of Labor and Employment) makes rules to apply
tanggal). the Labor Code, but they can’t change the law—just explain and enforce it.”
- Protects employers from lazy or problematic workers. Important things to know:
- Covers stuff like: - DOLE can make rules, but only if they follow the Labor Code.
o Sweldo (minimum wage, benefits, overtime pay) - If they make rules that go against the law, those rules are invalid.
o Hiring and firing rules Example: DOLE once removed holiday pay for monthly workers, but the
o Workers’ rights (unions, contracts, etc.) Court was like, “Nope! That’s illegal.”
o Illegal recruitment "DOLE can make rules, pero hindi sila pwedeng gumawa ng sariling batas”

DIVISION OF LABOR LAWS ART. 6. APPLICABILITY

- Labor legistation is broadly classified into labor standards and labor “all workers, whether in agriculture or other industries, are covered by
relations. (2 division of labor registatration) the Labor Code, except when stated otherwise. This means the law
• Labor Standards = "Batas para sa tamang trabaho" (sweldo, oras, generally applies to all employees, but there are exceptions.
benefits).
• Labor Relations = "Paano mag-usap ang workers at boss" 1. COVERAGE CLAUSE
(unions, strikes, rules sa pag-fire). - General rule shall apply to all workers
Basically: - Governement workers can use labor law only for compensation
• Labor Standards = Para alam ng workers ang rights nila.
• Labor Relations = Para fair ang trato ng boss sa workers. GOCCs with a Special Charter
- Law standards set out the minimum terms, conditions, and benefits of • Created by a special law (e.g., PAG-IBIG, SSS, GSIS)
employment that employers must provide or comply with and to which • Employees are considered government employees - Their
employers are entitled as a manner of legal right. employees are government workers under the Civil Service
- Labor relation laws, defines the status, right, and duties, as well as the Commission (CSC).
international mechanism (the aim of the labor leg. Is the social justice. • Labor Code does NOT apply (because they follow government
Kailangan lahat may opportunity na mag trabaho). rules.
GOCCs with an Original Charter
ART. 2. - This Code shall take effect six (6) months after its • Created under the Corporation Code (like private companies)
promulgation. • Employees are considered private-sector employees -
• The Labor Code was signed in 1974 but was supposed to take • Labor Code applies (DOLE jurisdiction) - to them, meaning they
effect 6 months later. have the same rights as private-sector workers.
• But si Marcos changed the date to November 1, 1974 (kasi power In short:
move vibes). • If a GOCC was created by a special law, employees follow
• The law has been updated over the years (like with the 13th-month government rules (Civil Service).
pay and paternity leave). • If a GOCC was created under the Corporation Code, employees
Why Should You Care? follow private-sector labor laws (Labor Code).
• If may trabaho ka, this law protects your rights! *manner of creation
• If ikaw naman ang boss, this law makes sure you treat employees
fairly. 2. EXCLUSIONARY CLAUSE
• Basically, it keeps things fair sa workplace. - Employees Who Cannot Join a Union
Managerial employees – They represent the company, so they cannot join
ART. 3. - DECLARATION OF BASIC POLICY unions.
” exists to protect workers and promote fairness in the workplace” Confidential employees – They handle sensitive company information, so
Bakit mahalaga? they are also excluded.
• Para walang exploitation (walang abuso sa workers). Employees who are members of a cooperative – Since they are co-owners of
• Para may equal opportunity sa trabaho. the coop, they cannot form a union against themselves.
• Para may balance between employers and employees (fair - Employees Who Are NOT Entitled to Certain Benefits
Retail & service employees (small businesses w/ less than 10 workers)
treatment for both)
• No holiday leave
The 7 Basic Rights of Workers (Super Simple Explanation!) • No incentive leave
Right to Organize Retail, service, & farm workers (small biz w/ 10 or fewer employees)
- Workers can form or join a union para mas may power sila to negotiate for • No retirement pay
better conditions. Managers & bosses
Right to Collective Bargaining & Negotiation • Not covered by some statutory benefits (kasi big-time na sila,).
- Pwede silang makipag-usap sa management to demand fair wages and
Kasambahays (household workers)
benefits.
• No benefits except weekly rest day & incentive leave (at least may day off )
Right to Engage in Peaceful Concerted Activities (Including Strike)
- If unfair ang treatment, workers can protest or go on strike (pero dapat Personal service workers (e.g., family drivers, yayas, caregivers)
legal at may process). • No night shift pay, overtime, sick leave, or premium pay
Right to Security of Tenure "Paid by results" workers (commission-based, per-project work)
- Hindi basta-basta pwede i-fire ang workers without a valid reason and due • Your salary is based on output, so sometimes no OT pay or extra benefits.
process.
Right to Work Under Humane Conditions
- Dapat safe, clean, at fair ang work environment—walang abuse or unfair BOOK ONE: PRE-EMPLOYMENT
treatment. TITLE: RECRUITMENT AND PLACEMENT OF WORKERS
Right to Receive a Living Wage
- Workers should earn enough to support their needs (hindi pwede sobrang “Referral is a form of recruitment”
baba ng sweldo). kahit walang pera na involved)
Right to Participate in Policy & Decision-Making (even if only 1 person is recruited, it is still a recruitment (liable) as long as
- Workers should have a say in decisions that affect their rights and benefits. may offer and promise”

“ These rights protect workers from abuse and ensure they get fair treatment,
good working conditions, and enough pay to live decently.” ART. 16. PRIVATE RECRUITMENT
- Labor Code always favor the LABOR but it ensures the protection of both
empleyee and employer/equal treatment “Article 16 of the Labor Code states that only public employment offices
- the state must ensure equal work opportunities regardless of sex, race, or (like DOLE or POEA) can recruit and place workers for jobs.
creed
- discrimination in hiring or employment terms is prohibited
However, there are exceptions under Chapter 2 of this title. This means that
private recruitment agencies may be allowed, but only if they follow strict
ART. 4. CONSTRUCTION IN FAVOR OF LABOR
government regulations.”
(Labor is always favor the labor)

Who can engage?

 Who Can Engage in Recruitment & Placement of Workers? CHAPTER 2: REGULATIONS OF RECRUITMENT AND
(Art. 16) Public Employment Offices PLACEMENT ACTIVITIES
- Government-run employment services that help people find jobs.
- Example: PESO (Public Employment Service Office). ART. 32. – Prohibition on Charging Fees
(Art. 25) Private Recruitment -Hindi puwedeng maningil ng recruitment fees maliban kung may pahintulot
a. These private entities can recruit workers but must have a license ng DOLE.
from POEA or the Bureau of Local Employment: -May mga trabaho na exempted sa placement fees (hal. domestic/local
b. Private Recruitment Agencies – Companies that connect job employment at household service workers abroad).
seekers with employers, either locally or abroad.
c. Private Recruitment Entities – Other private organizations that Manning Agencies
are legally allowed to recruit. • Ito ang mga recruitment agencies para sa seafarers o mga nagtatrabaho sa
d. Manning Agencies – Agencies that recruit seafarers for jobs on barko.
ships. • Hindi sila puwedeng singilin ng placement fee, alinsunod sa batas, para
maprotektahan ang kanilang karapatan laban sa sobrang singil o illegal
Only government offices and licensed private agencies can legally recruit recruitment.
workers. Illegal recruiters are not allowed • Article Reference: ART. 32 – Bawal maningil ng placement fee kung hindi
awtorisado.
➢ Qualifications for Recruitment Agencies
ART. 33. – Reports on Employment Status
To legally operate a recruitment agency, these qualifications must be met: -Kailangang mag-submit ng regular reports ang recruitment agencies tungkol
1. Filipino Citizenship 🇵🇭 sa status ng mga na-hire nilang workers.
• Sole Proprietorship – The operator must be a Filipino citizen. -Kasama rito ang pangalan ng employer, worker, at job details.
• Partnership – At least 75% of partners must be Filipino. Personal Documents
• Corporation – At least 75% of the voting capital stock must be Filipino- • Ang mga manggagawa ay may karapatang panatilihin ang kanilang
owned. personal na dokumento (e.g., passport, diploma, certificate of employment).
2. Capital Requirement • Ilegal kung kukunin ng recruitment agency o employer ang kanilang
• Minimum paid-up capital: ₱5 million. dokumento bilang collateral o panggipit.
• Annual increase: ₱750,000. • Article Reference: ART. 34 – Ipinagbabawal ang panloloko at pang-aabuso
3. Office Space Requirement sa mga aplikante.
• For Local Employment (LE): At least 50 sqm office space.
ART. 34. – Prohibited Practices
• For Overseas Employment (OE): At least 100 sqm office space.
-Bawal ang illegal recruitment (panloloko sa job offers, overpricing ng
placement fees, at fake job orders).
A recruitment agency must be majority Filipino-owned, have enough
-Hindi maaaring mag-recruit kung walang lisensya mula sa POEA/DMW.
capital, and meet office space requirements to operate legally. Here’s a
-Hindi puwedeng maningil ng placement fees para sa domestic jobs.
clearer and more structured summary of the Disqualifications for
Recruitment Agencies based on your notes:
Mandatory Bond (Kaugnay ng Recruitment Regulations)
- Ang recruitment agencies ay kailangang maglagay ng bond/security deposit
➢ Disqualification for Engaging in Recruitment
para masiguradong protektado ang mga manggagawa.
If disqualified, a person or entity CANNOT engage in recruitment anymore.
- Ginagamit ito pang-compensate sa employment-related claims (e.g., unpaid
A. General Disqualifications (For Both Local & Overseas Employment)
wages).
1. Employees of recruitment agencies whose licenses were previously
- Para sa proteksyon ng mga workers.
canceled due to violations of recruitment laws.
- Security para masiguradong mababayaran sila.
2. Persons charged or convicted of:
- Limitado lang ang gamit—pwede lang gamitin para sa employment-related
a. Illegal recruitment
payments.
b. Human trafficking
c. Child labor violations
IN OFW
d. Crimes involving moral turpitude (e.g., fraud, corruption, serious
= Principal Employer → Yung employer sa ibang bansa
dishonesty).
= Recruitment Agency → Yung agency dito sa Pinas.
B. Specific Disqualifications for Local Employment (LE)
Theory of Imputed Knowledge
1. Cooperatives, even if registered.
- Kapag alam ng agency, dapat alam din ng employer abroad.
2. Local enforcers (e.g., barangay officials, police officers).
- Pero! Hindi required ang employer abroad na i-update ang agency sa lahat.
3. DOLE employees (Department of Labor and Employment).
One-way rule:
4. Sole proprietors who already own a recruitment agency.
Agency → Principal
C. Specific Disqualifications for Overseas Employment (OE)
Principal → Agency
1. Government officers/employees involved in implementing the Migrant
Workers Act, including close relatives (e.g., up to the 4th civil degree –
Dapat sumunod ang mga recruitment agencies sa labor standards at
great-grandparents, great-grandchildren, first cousins).
protektahan ang workers.
2. Sales agents of airline companies.
3. Insurance companies offering services to OFWs.
4. Travel agencies, including their board managers. Regulatory Fees

If a person is involved in government labor regulation, recruitment, or • May mga bayarin na kailangang sagutin ng mga recruitment
certain industries (airlines, insurance, travel), they CANNOT engage in agencies o principal employers bilang bahagi ng regulasyon ng
recruitment gobyerno.
• Hindi ito dapat ipasa sa mga manggagawa o aplikante.
➢ Where to Apply for a License? Article Reference: ART. 32-34 – Tumutukoy sa placement fees,
• Local Employment (LE): Apply at the DOLE Regional Office that has recruitment regulations, at mga ipinagbabawal na gawain sa
jurisdiction over the area. pangangalap ng manggagawa.
• Overseas Employment (OE): Apply at POEA (Philippine Overseas
Employment Administration). Summary 32, 33, 34

➢ IV. Limitations of the License

• Seafarers → Hindi dapat singilin ng placement fee.
1. Non-transferable – The license can only be used by the person or entity it
was issued to. No one else can use it, directly or indirectly. • Personal documents → Hindi puwedeng kunin ng agency.
2. Location-Specific – The license can only be used in the location specified. • Regulatory fees → Sagot ng agency o employer, hindi ng worker.
If the agency wants to operate in another region, they must get special
recruitment authority from POEA/DOLE. CHAPTER 3: MISCELLANEOUS PROVISION
3. Cannot be transferred, sold, or assigned to another person or entity.
ART. 38. ILLEGAL RECRUITEMENT
➢ Validity of the License Kahit walang lisensya, pwedeng ma-consider na illegal recruiter
• Local Employment (LE): 6 years “it is not necessary to have a license to be considered as illegal recruitment”
• Overseas Employment (OE): 4 years
Two Kind of Illegal Recruitment
Agencies must apply for the correct license depending on whether they are An illegal recruiter may be a license or a non-license (general rule)
hiring for local or overseas jobs. • Licensed Recruiter na gumagawa ng iligal na gawain (e.g.,
The license is strictly controlled and cannot be shared, transferred, or overcharging, false promises).
used outside its approved location. • Non-Licensed Recruiter (walang permit pero nagre-recruit ng
tao).
Ilang halimbawa ng illegal recruitment: Constructive Dismissal
• Pagtanggap ng placement fee pero walang job order. • Kapag ang isang empleyado ay pinilit umalis dahil sa hindi
• Panloloko o misrepresentation ng trabaho. makatarungang kondisyon sa trabaho.
• Hindi pagsunod sa tamang deployment process. • Halimbawa:
o Biglang pagbabawas ng sahod nang walang dahilan.
Deployment of Workers o Paglalagay sa napakabigat na trabaho nang wala sa job
• Dapat i-deploy ang worker sa loob ng 60 days pagkatapos description.
makuha ang visa/travel documents. o Paglikha ng hostile work environment para mapilitan siyang mag-resign.
• Kapag hindi na-deploy:
o Pwedeng i-refund ang placement fee. Summary
o Pwedeng mag-file ng kaso laban sa recruiter/employer. May proteksyon ang empleyado laban sa illegal dismissal.
o Kung ayaw na ituloy, puwedeng bawiin ang sahod o May mga test para matukoy kung may EE-ER relationship.
iba pang bayad. May standard working conditions na dapat sundin ng employer.
Hindi puwedeng pilitin umalis ang empleyado sa hindi makatarungang
Miscellaneous Provisions (Article 39) paraan.
• Blacklist ng Employers/Recruiters
o Kapag lumabag sa batas, pwedeng ma-blacklist ang 2 TYPES OF TEST TO IDENTIFY EMPLOYEE-EMPLOYER
employer o recruiter. RELATIONSHIP
• Bawal ang pananakot o panunuhol para mapilitang umalis ang 1. Economic Reality Test
worker. -Tinutukoy kung ang empleyado ay nakadepende sa employer.
• Bawal ang pagkuha ng pera sa worker bago siya umalis kung 2. Control Test
hindi ito kasama sa legal fees. -Tinitingnan kung sino ang may kapangyarihang magdesisyon sa kung paano
ginagawa ang trabaho.
“Dito kana. Mas malaki sahod dito, umalis kana dyan (BAWAL)” “umalis -Ang employer ang may kapangyarihang magkontrol sa paraan ng paggawa
kana dyan, sinasaktan sa lang ng amo (PWEDE)” ng trabaho (means/method) at pati na rin sa resulta ng trabaho.

1. Recruitment vs. Contracting 4 Elements of Control Test:

Recruitment 1. Selection and Engagement – Sino ang pumili o kumuha ng manggagawa?
• A recruitment agency finds and places applicants in jobs. 2. Payment of Wages – Paano siya binabayaran?
• Needs a license to operate. 3. Power of Dismissal – May kapangyarihan ba ang employer na tanggalin siya
Contracting sa trabaho?
4. Control over Means & Methods – Sino ang may kontrol sa paraan ng
• A contractor performs a job/service using his own employees for
paggawa ng trabaho?
a principal (client).
• Needs registration with DOLE.
"Kahit na mawala o hindi gaanong malinaw ang ilang aspeto ng control ng
o If in construction, must be accredited by the
employer, maaaring mayroon pa ring employer-employee relationship (ER-EE
Philippine Contractor Accreditation Board.
relationship)."
o If engaged in IT-enabled services, must be properly
registered.
Classification of Payments:
Wages = Labor (may ER-EE relationship)
2. Requirements for Valid Contracting
Professional Fees = Result/Finish Work (walang ER-EE relationship)
1. Contractor must have an independent business (separate from
the principal).
2. Contractor must have substantial capital (at least ₱5 million Power of Dismissal: May rule na kailangang sundin ng employees ang
investment). policies ng employer.
3. Contractor must be free from control of the principal (except for
TYPES OF EMPLOYMENT
agreed work results).
Regular Employees
3. Contracting vs. Labor-Only Contracting Pwedeng maging regular employee base sa:
o -Regular Employment – Ang aktibidad na ginagawa ng empleyado a
Contracting Labor-Only Contracting
necessary at desirable sa negosyo.
Provides services Provides manpower only o Nature of the Job – Kung ito ay mahalaga sa operasyon ng negosyo.
No EE-ER relationship created EE-ER relationship exists o Repeated or Continuous Hiring – Kung ang empleyado ay patuloy na nire-
between contractor’s workers and the between principal and the rehire.
principal workers "If you are a regular employee, you have security of tenure (bawal ka basta
Principal employer is indirect Principal employer is direct tanggalan sa trabaho without authorized cause)."
employer employer
Principal employer and Non-Regular / Unregular Employment
Principal employer is only liable for
contractor are fully liable for
unpaid wages
all claims Project Employment
Notes on Conditions of Employment (Book Three, Title I, Chapter I) • May 2 factors upang matukoy kung project-based ang trabaho:
Security of Tenure -Specific Understanding – May malinaw na kasunduan kung para saan ang
• Hindi puwedeng basta tanggalin ang empleyado nang walang trabaho.
sapat na dahilan. -Pre-Determined Date of Completion – May takdang panahon kung kailan
• Ang termination ay dapat may due process at valid grounds ayon matatapos ang proyekto.
sa Labor Code. Employment Within Regular or Unusual Business
• Legal Basis: Article 279 – Proteksyon ng empleyado laban sa -Within Regular Business – Ang trabaho ay bahagi ng normal na operasyon -
illegal dismissal. ng negosyo.
Tests to Identify Employer-Employee (EE-ER) Relationshipp -Not Within Regular Business – Ang trabaho ay hindi bahagi ng normal
• Control Test → Pinakakaraniwang ginagamit; sinusuri kung sino naoperasyon.
ang may control sa paraan ng pagtatrabaho ng empleyado.
• Economic Reality Test → Sinusuri kung sino ang nakikinabang Tenure
sa trabaho ng empleyado at kung sino ang may dependency sa isa't • Co-terminous – Pwedeng maging regularized kung ang parehong employer
isa. ay patuloy na kumukuha ng manggagawa.
• 4 Elements ng Control Test:
o Employer’s power to hire
o Payment of wages
o Employer’s power to dismiss
o Employer’s power to control work details
Working Conditions & Rest Periods (Hours of Work - Art. 82)
• Standard Working Hours: 8 hours/day (pwede may overtime
with pay).
• Meal Breaks: Minimum 1-hour break (hindi kasama sa working
hours).
• Overtime Pay: Required kapag lumagpas sa 8 oras ang trabaho.
• Night Shift Differential: Dagdag bayad kapag nagtrabaho sa
pagitan ng 10:00 PM – 6:00 AM.