1. What is the reason for according greater protection to employees? Explain.

2. What is bonus?
• Bonus is an amount granted and paid to an employee for his industry and loyalty which
contributed to the success of the employer’s business and made possible the realization of
profits. It is an act of generosity. It is not demandable and enforced obligation unless it is
made part of the wage or salary.
• Bonus as part of the wage. It is an additional compensation which the employer promised
and agreed to give without conditions imposed for its payment, such as success of business
or greater production or output, then it is part of wage.
• Bonus not part of wages. If it is paid only if profits are realized on a certain amount of
productivity achieved, it cannot be considered part of wages.
• For a bonus to be enforceable, it must have been promised by the employer and expressly
agreed by the parties, or it must have had a fixed amount and had been a long and regular
practice on the part of the employer.
• An employer cannot be compelled to distribute bonuses which it can no longer afford to pay.
To hold otherwise would be to penalize the employer for his past generosity.

3. What statutory employment benefits do househelpers have?

• Standard treatment – any kind of abuse or any form of physical violence or harassment or
any act tending to degrade the dignity of a domestic worker is not allowed.
• Free board, lodging and medical attendance
• Guarantee of privacy- extends to all forms of communication and personal effects.
• Access to outside communication-during free time. In case of emergency, access to outside
communication shall be at all times.
• Right to education and training- primary education; ALS; and higher education, technical and
vocational training, if practicable.
• Health and safety
• Daily rest period-8hrs/day
• Weekly rest period-24hrs
• Minimum wage-
• 2,500php/month for those employed in NCR;
• 2,000php/month for those employed in chartered cities and first class municipalities; and
• 1,500php/month for those employed in other municipalities.
• Leave benefits- 5 days with pay for those who have rendered at least 1yr of service.
• Social and other benefits-must have rendered at least one month of service
• SSS
• PhilHealth
• Pag-ibig

4. Who is a househelper?
• aka domestic servant
• shall refer to any person, whether male or female, who renders services in and about the
employer's home and which services are usually necessary or desirable for the maintenance
and enjoyment thereof, and ministers exclusively to the personal comfort and enjoyment of the
employer's family.

5. When a househelper's employment is terminated, is he entitled to separation pay?

• If the period of household service is fixed, neither the employer nor the househelper may
terminate the contract before the expiration of the term, except for a just cause. If the
househelper is unjustly dismissed, he or she shall be paid the compensation already
earned plus that for fifteen (15) days by way of indemnity. If the househelper leaves
without justifiable reason, he or she shall forfeit any unpaid salary due him or her not
exceeding fifteen (15) days.
• In one case, the househelper's contractual employment for two years was prematurely
terminated just seven days after hiring. The dismissal having been found illegal, the employer
was ordered to pay the salary for the unexpired portion of the contract. (additional to the 15
days)
• That those househelpers who are receiving at least one thousand pesos (P1,000.00) shall
be covered by the Social Security System (SSS) and be entitled to all the benefits provided
thereunder. (As amended by RA. No. 7655)

6. Juliana, who is 15 years old, is brought by her parents to Cebu City to work as a maid
in the house of Mrs. Osmena. They are paid in advance her salary for three years and
agree that she will work for Mrs. Osmena for the said period. Do you perceive any legal
infirmity in this arrangement? Explain.

Kasambahay Law (RA 10361):

Unlawful Acts:
1. Employment of children below 15 years of age;
2. Withholding of the kasambahay’s wages;
3. Interference in the disposal of the kasambahay’s wages;
4. Requiring kasambahay to make deposits for loss or damage;
5. Placing the kasambahay under debt bondage; and
6. Charging another household for temporarily performed tasks.

Unlawful acts are punishable with an administrative fine ranging from P 10,000 to
P40,000 to be imposed by the DOLE Regional Offices.

What is the employable age for a kasambahay?

Fifteen (15) years old and above.

Under what conditions may the employment of children fifteen (15) but below eighteen
(18) years of age be made?
a. They shall not be allowed to work for more than eight (8) hours a day, and in no case
beyond forty (40) hours a week;
b. They shall not be allowed to work between ten o’clock in the evening and six o’clock
in the morning of the following day;
c. They shall not be allowed to do hazardous work; and
d. They shall not be denied access to education and training.

When will a kasambahay be covered by SSS, PhilHealth, and Pag-IBIG?

After one (1) month of service.

Who will pay the SSS premium, and PhilHealth and Pag-IBIG contributions of the
kasambahay?
The employer, if the wage of the kasambahay is less than P 5,000.00.
 If the wage of the kasambahay is P 5,000.00 or more, the kasambahay will pay his/her
share in the premiums/contributions.

Is the consent of the parent/guardian of working children required in the employment

contract?
Yes. Such consent should appear in the employment contract.

Is the employer required to register the kasambahay? If yes, where?

Yes. The employer is required to register the kasambahay in the Registry of Domestic
Workers in the barangay where the employer resides. For this purpose, the DILG, in
coordination with the DOLE, shall formulate a registration system.

7. Gloria works as a live-in labandera of Mr. & Mrs. Gaisano in CDO. She starts working at
6 am rests from 12-1pm. Then resumes work until 10 pm. She is paid 2,000 a month. In
your opinion, should she receive more? Why?

Yes. Entitled to daily rest period-8hrs/day & weekly rest period-24hrs as a householder.

8. Mr. Go lives in a compound where he also operates a modest noodle factory.

Sometimes when no work in his house, his maids help in the packing of noodles. His
family driver, after bringing Mr. Go’s children to school, drives the pick-up and delivers
noodles to outlets. How should the work rendered by the maids and the family driver in
connection with Mr. Go’s noodle business be compensated? Explain.

ART. 145. ASSIGNMENT TO NON-HOUSEHOLD WORK

No househelper shall be assigned to work in a commercial, industrial or agricultural
enterprise at a wage or salary rate lower than that provided for agricultural or non-agricultural
workers as prescribed herein.

9. Are homeworkers entitled to right to self-organize? Are they covered by the SSS Law?
Yes, in the new rule, it authorizes the formation and registration of labor organization of
industrial homeworkers. It also makes explicit the employers duty to pay and remit SSS,
medicare and ECC Premiums.

10. Who is their employer?

Employers of homeworkers includes any person, natural or artificial, who for his account or
benefit or on behalf of any person residing outside the country, directly or indirectly or through
any employee, agent, contractor, subcontractor or any other person.

Industrial homework is a system of production under which work for an employer or contractor is
carried out by a homeworker at his home. Materials may or may not be furnished by the
employer or contractor.

11. Distinguish househelpers & homeworkers.

Househelper is any person, whether male or female, who renders services in or about the
employer’s home and which services are necessary or desirable for the maintenance and
enjoyment thereof, and ministers exclusively to the personal comfort and enjoyment of the
employer’s family.
Homeworker is one who performs, in or about his home, any processing of goods or materials,
in whole or in part, which have been furnished, directly or indirectly, by an employer and
thereafter to be returned to the latter.

12. Aside from there right to minimum wage, what other rights are enjoyed by a
househelper?
Mandatory benefits of the kasambahay?
a. Monthly minimum wage;
b. Daily rest period of 8 (total) hours;
c. Weekly rest period of 24 (uninterrupted) hours
d. 5 days annual service incentive leave with pay;
e. 13th month pay;(??)
f. SSS benefit;
g. PhilHealth benefit; and
h. Pag-IBIG benefit;

What are the other rights and privileges of the kasambahay?

a. Freedom from employer’s interference in wage disposal;
b. Standard of treatment;
c. Board, lodging, and medical attendance;
d. Right to privacy;
e. Access to outside communication;
f. Access to education and training;
g. Right to be provided a copy of the employment contract;
h. Right to Certificate of Employment;
i. Right to form, join, or assist labor organization;
j. Right to terminate employment based on just cause; and
k. Right to exercise religious beliefs and cultural practices.

13. Under Article 140 of the Labor Code, no employee shall discriminate against any
person in respect to terms and conditions of employment on account of his age. Would a
company rule providing for lower wages for workers below 21 years who are
inexperienced violate the prohibition? Why?

14. Childwork is wrongful and generally illegal. Before a child may be put to work, what
are the legal requirements?
A. It must be a nonhazardous work- the child is not exposed to any risk which constitutes an
imminent danger to his safety and health.
B. The child shall work only for such # of hours and period of days as determined by the
Secretary of Labor.
C. For below 15yrs old:
• Must work directly under the sole responsibility of the parents/legal guardian and where only
members of his family are employed;
• It does not endanger child’s life, safety, health nor impair normal development;
• The parent/legal guardian shall provide for the child’s primary and/or secondary
education.
• If employed in any form of media-Child’s participation must be essential;
 A. Employment contract is concluded by the child’s parent or legal guardian with
express agreement of the child concerned, if possible, and the approval of the
DOLE;
B. The ff. are strictly complied with:
Er shall ensure the protection, health, safety, morals and normal development of
the child
Er shall institute measures to prevent exploitation or discrimination of the child
(remuneration, working time)
Er shall formulate and implement continuing program for training and skill
acquisitions of the child.

15. What are the employable ages?

• Between 15 and 18 for non-hazardous work
• 18 and above for any hazardous work
• Below 15yrs old-GR: not allowed to work.
Exceptions: (RA 9231 refer to page 444 if you must )
1. When a child works directly under the sole responsibility of the parents and where only
members of his family are employed;
2. Child Star.

16. Mang Jose, who works as a cook in a restaurant has a 14 year old son, Jose, who
after coming from school, goes to the restaurant to help his father in his kitchen chores
and learn the trade. Is Jose considered an employee of the restaurant?

17. A mining company seeks your opinion whether it can employ minors aged 20 years
as miners. What would be your advice?

18. Bulilit Andrea is only 10 years old, but she is already an accomplished singer. She is
hired at 20k a month by a carnival outfit which stages wherever there is town fiesta.
Bulilit Andrea is therefore always on the road, traveling to different parts of the country.
Is her employment lawful? Why?
No, unlawful. The parent/legal guardian shall provide for the child’s primary and/or secondary
education.

19. To minimize immorality among its female employees, the company lays down a rule
that any unmarried female employee who gets pregnant will be dismissed. Is this rule
valid? Why?
- not immoral hence not a valid ground for dismissal

20. Women, as a rule, are not allowed to engage in nightwork. What are the exceptions?
a. 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
b. In case of urgent work to be performed on machineries, equipment or installation, to avoid
serious loss which the employer would otherwise suffer;
c. Where the work is necessary to prevent serious loss of perishable goods;
d. 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 service;
e. 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;
f. Where the women employees are immediate members of the family operating the
establishment or undertaking; and
g. Under other analogous cases exempted by the Secretary of Labor in appropriate
regulations.

21. Sex discrimination at work is basically wrongful. What acts are considered
discriminatory against women employees? POHD
a. Discrimination in pay
b. In employment opportunity
c. In hiring
d. In dismissal

22. Miss Ruby works as a GRO in a nightclub along Cruz Tail. The Club requires her to be
in the premises at 8pm and to stay up to 31m the following morning. She is told to be
nice to customers and is paid a percentage of whatever is collected by the club from the
latter. There are nights when she does not earn anything because there are no customer.
Is miss ruby nevertheless an employee of the nightclub? Why?
- Yes, they are considered as employee for purposes of labor and social legislation.
- Hence they may form labor organizations.

23. Before accepting female workers of employment, a company requires them to sign an
undertaking that during their employment they will not get married, and that if they get
married, they will be deemed resigned or separated from work. Is this undertaking
binding? Why?
- General Rule: Not allowed.
- Exception: Bona fide occupational rule.

24. Is the employer required by law to give maternity leave benefits to its female
workers? Explain.
- SSS Law
- A female member who has paid at least three 3 monthly contributions in the twelve-month
period immediately preceding the semester of her childbirth or miscarriage shall be paid a
daily maternity benefit equivalent to one hundred percent (100%) of her average daily salary
credit for sixty (60) days or seventy-eight (78) days in case of caesarian delivery
- That the maternity benefits provided under this section shall be paid only for the first four
(4) deliveries or miscarriages;
- Not necessary for the woman to be impregnated by her legitimate spouse.

25. To insure the safety and health of women employees, what facilities may the
employer be required to provide? STAN.
The Secretary of Labor may require employers to:
a. Provide seats proper for women and permit them to use such seats when they are free from
work and during working hours, provided they can perform their duties in this position
without detriment to efficiency
b. To establish separate toilet rooms and lavatories for men and women and provide at least a
dressing room for women;
c. To establish a nursery in a workplace for the benefit of the woman employees therein; and
d. To determine appropriate minimum age and other standards for retirement or termination in
special occupations such as those of flight attendants and the like.

26. A security agency employing male and female security guards has a policy to the
effect that female guards be paid less than the men. Is this policy valid? Why? State your
legal basis.
- It shall be unlawful for any employer to discriminate against any woman employee with
respect to terms and conditions of employment solely on account of her sex.

29. Some labor disputes are likewise adjudicated at the Regional Level. What are the
limits to such adjudicatory function?
- The proceedings in the Regional Office shall be summary and non-litiguos in nature.
- Under the provisions of Art 129, the Regional Director is empowered through summary
proceedings and after due notice, to hear and decide cases involving recovery of wages and
other monetary claims and benefits, including legal interests, provided the following requisites
are present:
- the claim is presented by an employee, or a person employed in domestic or household
service, or househelper;
- the claim arises from employer-employee relations;
- the claimant does not seek reinstatement; and
- the aggregate money claim of each claimant does not exceed P5,000.00

30. Administrative orders or adjudications are appealable. To whom? When?

Any decision or resolution of the Regional Director or hearing officer pursuant to this provision
may be appealed on the same grounds provided in Article 223 of this Code, within five (5)
calendar days from receipt of a copy of said decision or resolution, to the National Labor
Relations Commission which shall resolve the appeal within ten (10) calendar days from
the submission of the last pleading required or allowed under its rules.

31. Labor laws are enforced and administered largely through DOLE's regional offices.
How is this administrative authority exercised?
• To carry out these responsibilities, the DOLE is authorized to operate and maintain regional
offices (including district offices and provincial extension units) in each of the country's
administrative regions. These offices serve as the operational arms—the front line action
offices—of the DOLE. This role is described in Arts. 128 and 129.
• Article 128. Visitorial and enforcement powers. (a) The Secretary of Labor and Employment or
his duly authorized representatives, including labor regulations officers, shall have access to
employer's records and premises at any time of the day or night whenever work is being
undertaken therein, and the right to copy therefrom, to question any employee and to
investigate any fact, condition or matter which may be necessary to determine violations or
which may aid in the enforcement of this Code and of any labor law, wage order or rules and
regulations issued pursuant thereto. (b) The provisions of Article 217 of this Code to the
contrary notwithstanding and in cases where the relationship of employer-employee still
exists, the Secretary of Labor and Employment or his duly authorized representatives shall
 have the power to order and administer, after due notice and hearing, compliance with the
labor standards provisions of this Code and other labor legislation based on the findings of
labor regulation officers or industrial safety engineers made in the course of inspection, and to
issue writs of execution to the appropriate authority for the enforcement of their order, except
in cases where the employer contests the findings of the labor regulation officer and raises
issues which cannot be resolved without considering evidentiary matters that are not verifiable
in the normal course of inspection. (c) The Secretary of Labor and Employment may likewise
order stoppage of work or suspension of operations of any unit or department of an
establishment when non-compliance with the law or implementing rules and regulations poses
grave and imminent danger to the health and safety of workers in the workplace. Within
twenty-four hours, a hearing shall be conducted to determine whether an order for the
stoppage of work or suspension of operations shall be lifted or not. In case the violation is
attributable to the fault of the employer, he shall pay the employees concerned their salaries
or wages during the period of such stoppage of work or suspension of operation. (d) It shall be
unlawful for any person or entity to obstruct, impede, delay or otherwise render ineffective the
order of the Secretary of Labor and Employment or his duly authorized representatives issued
pursuant to the authority granted under this Article, and no inferior court or entity shall issue
temporary or permanent injunction or restraining order or otherwise assume jurisdiction over
any case involving the enforcement orders issued in accordance with this Article. (e) Any
government employee found guilty of violation of, or abuse of authority under this Article shall,
after appropriate administrative investigation, be subject to summary dismissal from the
service. (f) The Secretary of Labor and Employment may by appropriate regulations require
employers to keep and maintain such employment records as may be necessary in aid of his
visitorial and enforcement powers under this Code.
• Visitorial Power. The power of the Secretary of Labor and Employment or his duly authorized
representatives, including labor regulations officers, shall have access to employer's
records and premises at any time of the day or night whenever work is being
undertaken therein
• Enforcement. The power of the Secretary of Labor and Employment to compel employer to
comply with labor standards upon finding of violations discovered in the course of the
exercise of the visitorial power.


32. Give 2 classes of documents to be kept and maintained by the employer in
connection with the payment of wages to its employees, and state how long such
records be preserved by the owner.
All employment records required to be kept and maintained by employers shall be preserved for
at least three (3) years from the date of the last entry in the records.
1. Payrolls
2. Time records

33. Marketing firm

General Rule: No employer shall require his worker to make deposits from which deductions
shall be made for the reimbursement of loss of or damage to tools, materials or equipment
supplied by the employer, except when the employer is engaged in such trades, occupations
or business where the practice of making deductions or requiring deposits is a
recognized one, or is necessary or desirable as determined by the Secretary of Labor in
appropriate rules and regulations.

Requisites: SOFE
1. The employee is clearly shown to be responsible.
2. Opportunity to be heard
3. Fair and reasonable
4. Should not exceed 20% of the employee’s wage in a week.

34. In cases where the employee is indebted to the employer, where such indebtedness
has become due and demandable, the employer may deduct even without the employee’s
consent.

35. To whom should the wages be paid?

36. Place of payment of wages.

37. May the employer be compelled by its employees to pay them by means of goods?
Why?

38. What is wage? What does it include?

Wage is the remuneration or earnings, however designated, capable of being expressed in
terms of money, whether fixed or ascertained on a time, piece, or commission basis or other
method of calculating the same, which is payable by an employer to an employee under a
written or unwritten contract of employment for done or to be done or for services rendered or to
be rendered and includes the fair and reasonable value, as determined by the Secretary of
Labor, of board, lodging, or other facilities customarily furnished by the employer to the
employee.

Wage or Salary includes;

1. Commission
2. Facilities
3. Commodities/Supplements

39. To determine whether one’s wage meets the legal minimum, should non-cash benefits
included in the computation?
Yes, non-cash benefits maybe included in the computation of wages such as board and lodging
customarily furnished by the employer to the employee.

40. “Facilities” are wage-deductible, “Supplements” are not. How are they
differentiated?
In short, the benefit or privilege given to the employee, which constitutes an extra remuneration
over and above his basic or ordinary earning or wage, is “supplement”. When benefit or
privilege is part of the laborers basic wages, it is a “facility”. The criterion lies not so much on
the kind of the benefit or item given, but its purpose.

41. What establishments may be exempted from observance of the minimum wage law?
1. Farm tenancy or leasehold;
2. Household or domestic helpers;
3. Homeworkers engaged in needle-work;
4. Workers employed in any establishment duly registered with the National Cottage
Industry Development Authority (NACIDA);
5. Workers in duly registered cooperatives when so recommended upon approval by the
Secretary of Labor;
6. Workers of a Barangay Micro Business enterprise

42. Minimum wage rates are regionalized, i.e., they vary among the regions. How is this
justified?
The minimum wage rates were regionalized based on the following applicable laws
a. Art. 99 of the Labor Code provides that “the minimum wage rates for agricultural and non
agricultural employees and workers in each and every region of the country shall be those
prescribed by the Regional Tripartite Wages and Productivity Boards.”
b. By virtue of RA 6727 (Wage Rationalization Act), the regional wage boards or RTWPBs
have issued wage orders fixing the minimum wages for their respective regions.

43. What factors or criteria are considered in determining a region’s minimum wage
standard?

44. What are the three areas of DOLE’s primary responsibility as mandated in “The
Administrative Code”?

45. What are “facilities” and how is their “fair and reasonable value fixed?
- includes all articles and services for the benefit of the employee or his family but shall not
include tools of the trade and articles or services primarily for the benefit of the of the
employer or necessary to the conduct of the employer’s business.
- Requirements for deducting amount of facilities: (1) preen must be shown that such facilities
are customarily furnished by the trade; (2) the provision of deductible facilities must be
voluntarily accepted in writhing by the employee; and (3) the facilities must be charged at fair
and reasonable value.
- fair and reasonable value: usually 70 %

46. Are vacation and sick leave benefits are cumulative and commutative? Why?
- It depends.
- In a case involving the accumulation of leave credits and their conversion into cash as
provided in the Collective Bargaining Agreement, the Court noted that cash equivalent is
aimed primarily at encouraging workers to work continuously and with dedication for the
company. Companies offer incentives, such as the conversion of the accumulated leave
credits into their cash equivalent, to lure employees to stay with the company. Leave credits
are normally converted into their cash equivalent based on the last prevailing salary received
by the employees.
- SL/VL benefits and their conversion to cash are voluntary, not statutory, in character.
Entitlement to them, especially by a corporate executive, must be proved.

47. If an employee does not work on regular holiday, is he entitled to any pay?
Yes. Regular holiday is compensable even if unworked subject to certain conditions. (Rate is
200% of the regular rate if worked.)

48. Are employees entitled to any pay on Special Public Holidays? Explain.
Yes, it compensable if worked in a rate of 130% of the regular wage. The rule is not
compensable if unworked.
49. May an employee be required to work on his rest day? State the rule and the exceptions if
any.
Geral Rule: NO
Exceptions: (UPANAC)
A. In cases of urgent work to be performed to the machineries, equipment or installation.
B. To prevent loss or damages of perishable goods.
C. In case of actual or impending emergencies caused by force majeure to prevent loss of
life and property or imminent danger to public safety.
D. Where the nature of the work requires the continuous operations and the stoppage may
result an irreparable injury or loss to the employer.
E. In the event of abnormal pressure of work due to special circumstances, where the
employer cannot ordinarily be expected to resort other measures.
F. Under other circumstance analogous to the forgoing as determined by the Secretary of
Labor.

50. Company ABC designates of its employees as office manager, chief mechanic, and head
salesman. Are these managerial employees? Why?
- Test of Supervisory or Managerial Staff - Depends on whether a person possesses authority
that is not merely routine or clerical in nature but one that requires use of independent
judgment.

51. Give the reasons for the requirement of overtime pay.

- Because he is made to work longer than the require compensation for the statutorily fixed and
voluntarily agreed hours of labor he is supposed to do.
- 25% or 30%

52. What are considered compensable hours worked?

- all the time during which the employee is required to be on duty or to be at a prescribed
workplace.
- all the time during which the employee is suffered or permitted to work.
- Rest periods of short duration during working hours which shall not be more than 20 minutes;
- Meal period of less than 20 minutes are only a rest period of short duration and are thus
considered as hours worked.

53. Is it lawful to pay the wages only once a month? May the wages be paid in the form of
goods such as phone cards?
- GR: Time of Payment. (1) At least once ever 2 weeks or (2) twice a month at intervals not
exceeding 16 days.
- Expns: (1) force majeure or beyond the employer’s control or (2) engaged to perform task
which cannot be completed in 2 weeks.
- GR: Forms of payment - Legal Tender
- Expn: Payment by check or Money Order

54. May an employer deduct from the employee’s salary the cost of company property lost or
damaged by the employee?
- GR: Prohibition against elimination or diminution of benefits
- Expns: If there is a written agreement

55. What statutory benefits are piece-rate workers entitled thereto?

- there compensation is based on the work completed and not on the time spent in working.
- Workers paid by results may be grouped into two: 1) those whose time and performance is
supervised by the employer and 2) those whose time and performance is unsupervised by
the employer. The first embodies an element of control and supervision over the manner as to
how the work is to be performed while in the second there is no such element because the
control, if any, is merely over the result of the work itself.
- A piece-rate worker usually belongs to the first type especially so if he performs his work in
company premises. On the other hand, workers on pakiaw and takay basis are usually
unsupervised by the employer and therefore fall under the second group.

OTHER PAST QUESTIONS NOT ASKED DURING RECITATION:

44. What is the Rule on Nondiminution of benefits? Does it apply to benefits negotiated
through a collective bargaining agreement (CBA) or to conditional benefits such as
bonus?

The rule on Nondiminution of Benefits is simply the prohibition against elimination or diminution
of employee benefits under Article 100 of the Labor Code. So that the rule against diminution of
supplements or benefits may apply, it must be shown that:
a. The grant of the benefit is founded on a policy or has ripened into a practice over a long
period;
b. The practice is consistent and deliberate;
c. The practice is not due to error in the construction or application of a doubtful or difficult
question of law; and
d. The diminution or discontinuance is done unilaterally by the employer.
No. Benefits initiated through negotiation between employer and employees, such as those
contained in a collective bargaining agreement, are not within the prohibition of Article 100
because, as products of bilateral contract, they can only be eliminated or diminished bilaterally.
What the law forbids is elimination or modification done unilaterally by the employer.
Neither does the rule under Art. 100 apply to a benefit whose grant depends on the existence of
certain conditions, so that the benefit is not demandable if those preconditions are absent. An
example of this is the giving of bonus which is not part of the employees’ regular compensation.
It is only an act of generosity.
In sum, jurisprudence recognizes exceptions to the application of Article 100:
a. a. Correction of error;
b. Negotiated benefits;
c. Wage order compliance;
d. Benefits on reimbursement basis;
e. Reclassification of position;
f. Contingent benefits or conditional bonus; and
g. Productivity incentives.
1. 3. What is the thirteenth-month pay and who are entitled to it? On what basis is it
computed? Are commissions part of the pay?
Thirteenth-month pay is an additional monetary benefit given to an employee by creating an
imaginary thirteenth month and obliges employers to pay the employees for that imaginary
month. It is a statutory grant under P.D. No. 851.

All rank-and-file employees, regardless of salary rate, shall be entitled to 13th-month pay.

Under the implementing rules of P.D.851, the basis of computation of 13th-month pay shall be
the one-twelfth (1/12) of the basic salary of an employee within a calendar year.

In the case of Philippine Duplicators vs. NLRC, the Court ruled, essentially, that commissions
are included or excluded, depending on what kind of commissions are involved.
If the commissions may properly be considered part of the basic salary, they should be included
in computing the 13th-month pay. (i.e. wage-or sales-percentage type)
If the commissions are not integral part of the basic salary, then they should be excluded. (i.e.
profit-sharing or bonus type)

4. Wages calculated according to work output, instead of time spent, is lawful. On what
conditions?

This is the so-called Payment by Results under Article 101 of the Labor Code. Under the law,
the wage rates paid to workers paid by results, including pakyao, piecework and other noontime
work must be fair and reasonable.

5. What statutory benefits are piece-rate workers entitled to?

On the basis of existing labor regulations and more recent jurisprudence, piece rate workers are
entitled to the benefits, as follows:
a. a. The applicable statutory minimum daily rate;
b. Yearly service incentive leave of five (5) days with pay;
c. Night shift differential pay;
d. Holiday pay;
e. Meal and rest periods;
f. Overtime pay (conditional)
g. Premium pay (conditional)
h. 13th-month pay
Other benefits granted by law, by individual or collective agreement
Chapter III – Payment of Wages
Box 13 - Estacion

1. Is it lawful to pay the wages only once a month? May the wages be paid in form of goods
such as phone cards?
Ans.:
Under Art. 103 of the Labor Code; Wages shall be made at least once every two (2)weeks
or twice a month at intervals not exceeding sixteen (16) days. If on account of Force majeure or
circumstances beyond the employers control, payment of wages on or within the time herein
provided cannot be made, the employer shall pay the wages immediately after such force
majeure or circumstances have ceased. No employer shall make payment with less frequency
than once a month.
 No employer shall pay the wages of an employee by means of promissory notes,
vouchers, coupons, tokens, tickets, chits or any object other than legal tender, even when
expressly requested by the employee.

2. What is independent contracting in contrast to labor-only contracting? What does the

latter consist of and why does the law prohibit it?

Ans.:

Independent contracting is an arrangement whereby a principal agrees to put out or farm out
with a contractor or subcontractor the performance or completion of a specific job work or
service within a definite or predetermined period, regardless of whether such job, work or
service to be performed or completed within or outside the premises of the principal as
hereinafter qualified. Contracting, as the, definition shows, refers to the completion or
performance of a job, work, or service within a given period. Labor-only contracting, on the
other hand, is not really contracting because the arrangement is merely to recruit or place
people to be employed, supervised and paid by another, who, therefor, is the employer. The
commitment of the so-called “contractor” is not to do and deliver a job, work or service but
merely to find and supply people. The “contractor” is a pseudo-contractor; in fact, he himself
might even be an employee of the employer. Thus, “labor-only contracting” is self-contradictory
because there is no contactor and no contracting in L.o.C.

It is prohibited because it is an attempt to evade the obligations of an employer.

Section 5 of D.O. No. 18-02-Prohibition against labor-only contracting – Labor-only contracting

is hereby declared prohibited. For this purpose, labor-only contracting shall refer to an
arrangement where the contractor or subcontractor merely recruits, supplies or place workers
To perform a job, work or service for principal, and any of the following elements are
present:

(i) The contractor or subcontractor does not have substantial capital or investment which
relates to the job, work, or service to be performed and the employees recruited, supplied or
place by such contractor or subcontractor are performing activities which are directly related to
the main business of the principal; or
(ii) The con tractor does not exercise the right to control over the performance of the work of
the contractual employee.

3. Other than labor-only contracting, what forms or acts of labor contracting are
disallowed?
Ans.:
Notwithstanding Section 5 of these Rules the following are hereby declared prohibited for being
contrary to law or public policy.
(a) Contracting that terminates the employment of regular employees, or reduce their work
hours, or reduces or splits a bargaining unit, if such contracting out is not done in good faith and
not justified by business exigencies.
(b) Contracting with “cabo”
(c) Contracting with in-house agency
(d) Contracting because of a strike or lockout.
(e) Contracting that constitutes ULP under Article 248.

4. May an indirect employer be held liable answerable for an illegal dismissal done by the
direct employer?

Ans.:

Every employer or indirect employer shall be held responsible with his contractor or
subcontractor for any violation of any provision of this Code. For purposes of determining the
extent of their civil liability under this Chapter, they shall be considered as direct employers.

Chapter IV – Prohibition Regarding Wages

Box 14 - Ga

1. What wage deductions are legally allowed?

Ans. Expressly provided in the Labor Code
Art. 113. WAGE DEDUCTION
No employer, in his own behalf or in behalf of any person, shall make any deduction from the
wages of his employees, except:
(a) In cases where the worker is insured with his consent by the employer, and the
deduction is to recompense the employer for the amount paid by him as premium on the
insurance;
(b) For union dues, in cases where the right of the worker or his union to check-off has been
recognized by the employer or authorized in writing by the individual worker concerned; and
(c) In cases where the employer is authorized by law or regulations issued by the Secretary
of Labor.
Deductions authorized by law:
a. Deduction for value of meals and other facilities.
b. In cases where the employee is insured with his consent by the employer, deductions for
the amount paid by said employer, as premiums on the insurance.
c. In cases where the right of the employees or his union to checkoff has been recognized
by the employer or authorized in writing by the individual employee concerned.
d. In cases where the employee is indebted to the employer, where such indebtedness has
become due and demandable.
e. In court awards, wages may be the subject of execution or attachment, but only for debts
incurred for food, shelter, clothing and medical attendance.
f. Withholding tax
g. Salary deductions of a member of a legally established cooperative
h. SSS, Medicare and Pag-ibig contributions

2. May an employer deduct from the employee’s salary the cost of company property lost
or damaged by the employee?
Ans. According to the implementing rules, payments for lost or damaged equipment is
deductible from the employee’s salary if four conditions are met namely:
a. The employee is clearly shown to be responsible for the loss or damage;
b. The employee is given ample opportunity to show cause why deduction should not be
made;
c. The amount of the deduction is fair and reasonable and shall not exceed the actual loss
or damage;
d. The deduction from the employee’s wage does not exceed 20 percent of the employee’s
wages in a week.
3. May labor standards violation justify a strike?
Ans. A wage violation is unlawful and may be pursued in a money claim, not through a strike.
But a strikeable situation may arise when the employer retaliates against the complaining
employee, and the retaliation is of the kind considered as ULP under Art. 248(f). Violation of
labor standards, therefore, may ultimately cause or justify a strike if Article 248 (f) or Article 261
(gross violation of the CBA) is applicable.

Chapter V – Wage Studies, Wage Agreements, and Wage Determination

Box 15 – Cruz
1. What is the NWPC? The RTWPB? What are their respective authorities as regards wage
determination?

A: NWPC or National Wages and Productivity Commission, prescribes rules and guidelines
for determination of appropriate minimum wage and productivity measures at the regional,
provincial or industry levels. Further the NWPC may review the wage levels set by the RTWPB.
But a wage-fixing order by RTWPB does not need prior approval by the NWPC
RTWPB or Regional Tripartite Wages and Productivity Boards, are empowered ‘to
determine and fix minimum wage rates applicable in their regions’ and to issue the
corresponding wage orders, subject to guidelines’ issued by the NWPC. But the guidelined, like
the Labor Code, do not require NWPC’s approval of a wage order. What it requires is for the
board to conduct a public hearing over a petition for a wage order, to decide such petition within
30 days after the last hearing , and to “furnish the Commission a copy of the decision on the
petition or the wage order.” Furnishing the NWPC a copy of the Wage Order does not mean
seeking the Commission’s approval.
2. What factors or criteria are considered in determining a region’s minimum wage
standard?
A: ARTICLE 124. Standards/Criteria for minimum wage fixing. – The regional
minimum wages to be established by the Regional Board shall be as nearly adequate as is
economically feasible to maintain the minimum standards of living necessary for the health,
efficiency and general well-being of the employees within the framework of the national
economic and social development program. In the determination of such regional minimum
wages, the Regional Board shall, among other relevant factors, consider the following:
(a) The demand for living wages;
(b) Wage adjustment vis–vis the consumer price index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to pay of employers;
(i) Effects on employment generation and family income; and
(j) The equitable distribution of income and wealth along the imperatives of economic and social
development.
The wages prescribed in accordance with the provisions of this Title shall be the standard
prevailing minimum wages in every region. These wages shall include wages varying with
industries, provinces or localities if in the judgment of the Regional Board, conditions make such
local differentiation proper and necessary to effectuate the purpose of this Title.
3. What obligations, if any, does an employer have when salaries are distorted by compliance
with a wage order?
A: Where the application of any prescribed wage increase by virtue of a law or wage order
issued by any Regional Board results in distortions of the wage structure within an
establishment, the employer and the union shall negotiate to correct the distortions. Any dispute
arising from wage distortions shall be resolved through the grievance procedure under their
collective bargaining agreement and, if it remains unresolved, through voluntary arbitration.
Unless otherwise agreed by the parties in writing, such dispute shall be decided by the voluntary
arbitrators within ten (10) calendar days from the time said dispute was referred to voluntary
arbitration.
In cases where there are no collective agreements or recognized labor unions, the employers
and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be
settled through the National Conciliation and Mediation Board and, if it remains unresolved after
ten (10) calendar days of conciliation, shall be referred to the appropriate branch of the National
Labor Relations Commission (NLRC). It shall be mandatory for the NLRC to conduct continuous
hearings and decide the dispute within twenty (20) calendar days from the time said dispute is
submitted for compulsory arbitration.
The pendency of a dispute arising from a wage distortion shall not in any way delay the
applicability of any increase in prescribed wage rates pursuant to the provisions of law or wage
order.

1. What is the basis of compensation for death & other benefits of Filipino Seamen? • Provided
in Sec 20(A) of POEA Contract
• Requires that for a respondent to be entitled to death benefits, the seafarer must
have 

suffered a work-related death during the term of his contract. 


• The standard contract for employment for 


Filipino seamen allows the payment of death benefit pension, funeral benefit, and burial 

gratuity for the private respondent. 


• These claims arose from the responsibility of the foreign employer together with
the local 

agency for the safety of the employee during his repatriation and until his arrival in this country,
i.e. the point of hire. (Inter- Orient Maritime Enterprises vs. NLRC) 

2. Under R.A. No. 8042, what agency has the jurisdiction to hear & decide a claim for
enforcement of a foreign judgement? Explain.

-NLRC?

-original and exclusive jurisdiction to hear and decide the claims arising out of an employer-
employee relationships by virtue of any law or contract involving Filipino workers for overseas
deployment including claims for actual, moral, exemplary and other forms of damage. 

3. Does the POEA have jurisdiction to hear & decide a claim for enforcement of a foreign
judgement? Explain.

The Philippine Overseas Employment Administration has no jurisdiction to hear and
decide a claim for enforcement of a foreign judgment. Such a claim must be brought
before the regular courts. The POEA is not a court, it is an administrative agency,
exercising, inter alia, adjudicatory or quasi-judicial functions. Neither the rules of
procedure nor the rules of evidence which are mandatorily applicable in proceedings
before courts, are observed in proceedings before the POEA. 

4. May a foreign-based employer or principal hire a Filipino worker for overseas employment
without the intervention of the govt or private entities authorized to engage in recruitment &
placement? Explain.

- General Rule: Art 18. Direct hiring of Filipino workers for overseas employment is not 

allowed. 


- Exceptions: Direct hiring by (DION):

A. Members of Diplomatic corps;

B. International Organizations;

C. Other employees as may be allowed by the DOLE; and

D. Name hirees- individual workers who are able to secure contracts for overseas
employment without the assistance or participation of agency. Their hiring, nonetheless, shall
pass through the POEA for processing purposes.
5. Reasons for the Ban on Direct Hiring?
-  to assure the best possible terms and conditions of work to the employee; and 


-  to assure the foreign employer that he hires only qualified Filipino workers. 


6. What are the functions of the Commission on Filipino Overseas (CFO)?

a. To assist the president and the congress in formulating policies and measures
concerning 

and affecting Filipinos abroad; 


b. To develop and implement programs that will promote the interest and well-being
of 

Filipinos abroad; 


c. To serve as a forum for preserving and enhancing the social, economic, and
cultural ties of 

Filipinos abroad with the Philippines; 


d. To provide liaison services to Filipino residing outside the Philippines with appropriate
government and private agencies in the transaction of business and similar projects in the
Philippines.
7. Explain the rule on the immutability of Seamen’s Standard Contract.
Another issue raised by the movants is whether or not the seamen violated their contracts of
employment.
The form contracts approved by the National Seamen Board [now POEA] are designed to
protect Filipinos, not foreign shipowners who can take care of themselves. The standard forms
embody the basic minimums which must be incorporated as parts of the employment contract.
(Section 15, Rule V, Rules and Regulations Implementing the Labor Code.) They are not
collective bargaining agreements or immutable contracts which the parties cannot improve upon
or modify in the course of the agreed peril of time. To state, therefore, that the affected seamen
cannot petition their employer for higher salaries during the 12-month duration of the contract
runs counter to established principles of labor legislation. The National Labor Relations
Commission, as the appellate tribunal from the decision of the National Seamen Board,
correctly ruled that the seamen did not violate their contracts to warrant their dismissal.
8. What are the minimum employment conditions of employment contracts?
a. Guaranteed wages for regular working hours and overtime pay 


b. Free transportation to and from the worksite, or offsetting benefit; 


c. Free food and accommodation, or offsetting benefit; 


d. Just and authorized causes for termination of contract taking into consideration
the customs and norms of the host country. 


9. What are the 4 govt agencies assigned to promote the welfare and protect the rights of the
migrant workers and as far as applicable of all overseas Filipinos?
-DFA

-DOLE

-POEA

-OWWA - Overseas Workers Welfare Administration. Intended to provide social and welfare
services, including insurance coverage, legal assistance, placement assistance, and remittance
services to OFWs.
10. What is the primary responsibility of the legal assistant of migrant workers’ affairs (LAMWA)
under the DFA?
- Furthermore, R.A. No. 8042 created the position of Legal Assistant for Migrant W orker's
Affairs [LAMW A] under the Department of Foreign Affairs. Its primary responsibility is to provide
and coordinate all legal assistance services to Filipinos in distress. It also administers the Legal
Assistance Fund for Migrant W orkers.
11.Replacement & Monitoring Center

Re-Placement and Monitoring Center 

Serves as a promotion house for local employment of these returning workers and to tap their
skills for national development.
12.power of subordinate legislation?

“The governing Board of the Administration (POEA), as hereunder provided, shall promulgate
the necessary rules and regulations to govern the exercise of the adjudicatory functions of the
Administration (POEA)." -
With the proliferation of specialized activities and their attendant peculiar problems, the national
legislature has found it more and more necessary to entrust to administrative agencies the
authority to issue rules to carry out the general provisions of the statute. This is called "the
power of subordinate
13. Primary Regulatory Policy for Filipino Seamen Working in Ocean-going vessels? Is the
employer’s nationality material?
The Labor Code, the Migrant Workers' law, and the relevant regulations extend protection to
Filipino workers overseas, i.e., outside the Philippines. The statute and regulations do not limit
the coverage to non-Filipino employers. Fili- pinos working overseas share the same risks and
burdens whether their employers be Filipino or foreigner. For instance, it is well known that
foreign-owned and foreign-registered vessels have frequently also secured Philippine
registration where the interest or convenience of the owners dictated such second or dual
registration. The underlying regulatory policy is that Filipino seamen working in ocean-going
vessels should receive the same wages and benefits without regard to the nationality/
nationalities of the vessels on which they serve.
14. Who is migrant worker?
-person who is to be engaged, is engaged or has been engaged in a remunerated activity in a
state of which he or she is not a citizen or on board a vessel navigating the foreign seas other
than the government ship used for military non-commercial purposes or on an installation
located offshore or on the high seas; aka OFW
15. 7. JURISDICTION RETAINED WITH POEA
Even after the passage of R.A. No. 8042, the POEA retains original and exclusive jurisdiction to
hear and decide:
(a) all cases which are administrative in character, involving or arising out of violations of rules
and regulations relating to licensing and registration of recruitment and employment agencies or
entities; and
(b) disciplinary action cases and other special cases which are administrative in character,
involving employers, principals, contracting partners and Filipino migrant workers. (Sec. 28,
Rules Implementing the Migrant Workers' Act dated February 29, 1996.
16. Premature Termination of Contract
Where the workers' employment contract is terminated before its agreed termination date, and
the termination is not shown to be based on lawful or valid grounds, the employer will be
ordered to pay the workers their salaries
1
17. As already noted, R.A. No. 8042 transferred from POEA to NLRC the jurisdiction over
OFWs' claims arising from employer-employee relationship. But POEA retains original and
exclusive jurisdiction over cases involving violations of POEA rules and regulations, disciplinary
cases and other cases that are administrative in character involving OFWs. Thus, POEA
performs regulatory, enforcement, and limited or special adjudicatory functions.
18. ADJUDICATORY FUNCTION OF POEA
Before the passage of R.A. No. 8042 in 1995, POEA had original and exclusive jurisdiction to
hear and decide the following kinds of cases:
a. pre employment cases which are administrative in character, involving or arising
out of recruitment laws, rules and regulations, including money claims therefrom or violations of
the conditions for issuance of license to recruit workers. 


b. Employer-Employee Relations cases consisting of all claims arising out of an

employer- employee relationship or by virtue of any law or contract involving Filipino workers in
overseas employment, such as but not limited to:
a. violation of the terms and conditions of employment; 


b. disputes relating to the implementation and interpretation of employment

contracts 


c. money claims of workers against their employers and duly authorized agents in
the Philippines or vice versa; 


d. claims for death, disability and other benefits arising out of employment; and 


e. violation/s of or noncompliance with any compromise agreement entered into by

and between the parties in an overseas employment contract. 

c. Disciplinary Action cases consisting of all complaints against a contract worker for breach of
discipline. The disciplinary action may take the form of warning, repatriation, suspension, or
disqualification from the overseas employment program, or inclusion in the POEA blacklist.
19. 5. REGULATORY FUNCTION OF POEA
The POEA performs regulatory and adjudicatory functions.
POEA regulates the private sector participation in the recruitment and overseas placement of
workers through its licensing and registration system. This function is taken up further under
Article 25.
20. WHIP Program
The WHIP is a program pursuant to Republic Act 6885 which requires the Department of Public
Works and Highways and private contractors to hire 30 percent of skilled and 50 percent
unskilled labor requirements from the area where the project is being undertaken.
21. Among the principal functions of the POEA are
the formulation, implementation, and monitoring of the overseas employment of Filipino workers
and the protection of their rights to fair and equitable employment practices.
POEA also participates in the deployment of Filipino workers through government-to-
government hiring.
It has extended its services nationally through its regional extension units.
They process vacationing workers, register sea-based workers, and participate in government
hiring through manpower pooling.
22. Officially, O F W s are classified by D O L E as either land-based or sea-based.
Sea-Based OFWs (or seamen) are those employed in a vessel engaged in maritime navigation.
Sea-based work pertains to ship operations like navigation, engineering, maintenance, including
a variety of occupations from kitchen staff to on-board entertainment in large vessel ships.
Land-Based OFWs are contract workers other than a seaman including workers engaged in
offshore activities whose occupation requires that majority of his working/ gainful hours are
spent on land. Occupations in the land-based categories are broader, covering all the skill areas
one can think of from house cleaners to entertainers to managers. The land-based group
constitutes the great majority of OFWs.
23. To pursue its responsibility to promote employment opportunities, the DOLE carries out
programs for local and overseas employment. Effective allocation of manpower resources in
local employment is assigned to the B L E
(Bureau of Local Employment) and to POEA (Philippine Overseas Employment Administration)
for overseas employment.
24.
25. The PESO

A significant development in the promotion of local employment is the approval of
R.A. No(#75Ji on February 4, 2000.
It requires the establishment of a public employment service office (PESO) in capital towns,
cities and other strategic areas.
A PESO is intended to serve as employment service and information center in its area of
operation. It regularly obtains lists of j o b vacancies from employers, publicizes them, invites
and evaluates applicants, and refers them for probable hiring. It also provides training and
educational guidance and employment counseling services.
The PESO also renders special services to the public such as holding of (job fairs) livelihood
and self-employment bazaars; special credit assistance for placed overseas workers; special
program for employment of students (SPES) during summer or semestral breaks; work
appreciation seminars and conferences; and hiring of workers in infrastructure projects (WHIP.
27. "License" means a document issued by the Department of Labor authorizing a person or
entity to operate a private employment agency.
(f) "Authority" means a document issued by the Department of Labor authorizing a person or
association to engage in recruitment and placement activities as a private recruitment entity.