40648687 35986541 Labor Standards Study Notes

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    Art. 1. Name of Decree. This Decree shall be known as the "Labor Code of the Philippines".

    Presidential Decree No. 442 otherwise known as the Labor Code of the Philippines.

    ocial le!islation include laws that provide particular kinds of protection or benefits to society or segments thereof in furtherance o

    social justice.

    Labor Le!islation consists of statutes, regulations and jurisprudence governing the relations between capital and labor, by

    providing for employment standards and a legal framework for negotiating, adjusting and administering those standards and other

    incidents of employment.

    Classifications of Labor Le!islation

    . Labor standards law is that which sets out the minimum terms, conditions and benefits of employment that employers

    must provide or comply with and to which employees are entitled as a matter of legal right.

    !s defined more specifically by jurisprudence, are the minimum re"uirements prescribed by e#isting laws, rules and regulations

    relating to wages, hours of work, cost$of$living allowance, and other monetary welfare benefits, including occupational safety

    and health standards.% (Maternity Children's Hospital vs. Secretary of Labor, GR No. 7!"!, #$ne %", &!!.

    &. Labor relations law defines the status, rights and duties, and the institutional mechanisms, that govern the individual and

    collective interactions of employers, employees or their representatives.

    Labor$ is understood as physical toil although it does not necessarily e#clude the application of skill, thus there is skilled andunskilled labor.

    Distinction# Labor law and social le!islation

    Labor laws$ directly affect employmentocial le!islation$ governs effects of 'mployment.

    $ are social legislation

    $ not all (L are Labor Laws

    ocial %&stice is neither communism, nor despotism, nor atomism nor anarchy, but the humani)ation of laws and the e"uali)ation

    of social and economic forces by the (tate so that justice in its rational and objectively secular conception may at least be

    appro#imated. (ocial justice means the promotion of the welfare of all the people, the adoption by the *overnment of measures

    calculated to insure economic stability of all the component elements of society, through the maintenance of a proper economic andsocial e"uilibrium in the interrelations of the members of the community, constitutionally, through the adoption of measures legally

    justifiable, or e#tra$constitutionally, the e#ercise of powers underlying the e#istence of all governments on the time$honored principle

    ofsal$s pop$li est s$prea le).% (Calalan* vs. +illias, 7" hil. 7-.

    +hile social '&sticeis the raison d'etre of labor laws, their basis or foundation is the police powerof the (tate.

    Police Power is the power of the government to enact laws, within constitutional limits, to promote the order, safety, health, moral

    and general welfare of society.

    t is settled that state legislatures may enact laws for the protection of the safety and health of employees as an e#ercise of police

    power.

    Art. 2. Date of effecti(it). This Code shall take effect si* +,- months after its prom&l!ation.

    a) 1/ 104 P- o. //& was signed into law.

    No(ember 1/ 104 effectivity date of the Labor Code.

    3elated Laws# Civil Code, 0PC, (pecial Laws

    Art. . Declaration of basic polic). The tate shall afford protection to labor/ promote f&ll emplo)ment/ ens&re e5&al work

    opport&nities re!ardless of se*/ race or creed and re!&late the relations between workers and emplo)ers. The tate shall ass&re

    the ri!hts of workers to self$or!ani6ation/ collecti(e bar!ainin!/ sec&rit) of ten&re/ and '&st and h&mane conditions of work.

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    The 7asic Polic) of the Labor Code (social economic goals)

    . Protection to labor1

    &. Promote full employment1

    2. 'nsure e"ual work opportunities regardless of se#, race or creed, and

    /. 0egulate the relations between workers and employers

    3oth sectors 4employees and employers5 need each other. 6hey are interdependent one is inutile without the other. 6he basicpolicy is to balance or to coordinate the rights and interests of both workers and employers.

    3i!hts of 8orkers 9nder Art. of the Labor Code

    . (elf$organi)ation1

    &. Collective bargaining1

    2. (ecurity of tenure1 and

    /. 7ust and humane conditions of work

    Constit&tional 7asis of the Labor Code

    Art. ::/ ec. 1;$ the 89: Constitution declares as a state policy; 6he (tate affirms labor as a primary social economic

    force. t shall protect the rights of workers and promote their welfare.%

    Art. :::/ ec. 1;/ par. 2 no involuntary servitude

    Art. :

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    ana!ement 3i!hts

    t should not be supposed that every labor dispute will be automatically decided in favor of labor. @anagement has also its own right

    which are entitled to respect and enforcement in the interest of simple fair play.

    6he law, in protecting the rights of the laborer, authori)es neither oppression nor self$destruction of the employer.

    3i!ht to 3et&rn of :n(estments +3>:- the employer has the right to recover his investments and to make profit. 6he

    Constitution provides that the (tate shall regulate the relations between workers and employers, recogni)ing the right of labor

    to its just share... and the right of enterprises to reasonable returns on investments, and to e#pansion and growth.

    The 3i!ht to Prescribe 3&les employers have the right to make reasonable rules and regulations for the government of

    their employees, and when employees, with knowledge of an established rule, enter the service, the rule becomes part of the

    contract of employment.

    The 3i!ht to elect ?mplo)ees an employer has a right to select his employees and to decide when to engage them. 6he

    (tate has no right to interfere in a private employment1 it cannot interfere with the liberty of contract with respect to labore#cept in the e#ercise of the police power. f the employer can compel the employee to work against the latterAs will, this is

    servitude. f the employee can compel the employer to give him work against the employerAs will, this is oppression.

    3i!ht to Transfer or Dischar!e ?mplo)ees the employer has the perfect right to transfer, reduce or lay off personnel in

    order to minimi)e e#penses and to insure the stability of the business, and even to close the business, provided the transfer or

    dismissal is not abused but is done in good faith and is due to causes beyond control. 6o hold otherwise would be oppressive

    and inhuman.

    Art. =. 3&les and re!&lations. The Department of Labor and other !o(ernment a!encies char!ed with the administration and

    enforcement of this Code or an) of its parts shall prom&l!ate the necessar) implementin! r&les and re!&lations. &ch r&le

    and re!&lations shall become effecti(e fifteen +1=- da)s after anno&ncement of their adoption in newspapers of !enera

    circ&lation.

    6he Labor Code itself in !rt. > vests the -epartment of Labor and 'mployment with rule$making powers in the enforcement thereof.

    A3T. ,.Applicability.$ All ri!hts and benefits !ranted to workers &nder this Code shall/ e*cept as ma) otherwise be pro(ided

    herein/ appl) alike to all workers/ whether a!ric&lt&ral or non$a!ric&lt&ral. (As amended by Presidential Decree No. 570-A,

    Noember !, !"7#).

    6he Code is applicable to all employees in private sector and government corporations without original charter.

    Bnder the present state of the law, the test in determining whether a government$owned or controlled corporation is subject to the

    Civil (ervice Law is the manner of its creation. $oernment corporations created by special (original c%arter) from &ongress are

    s'bect to &iil erice r'les, while t%ose incorporated 'nder t%e general &orporation *a+ are coered by t%e *abor &ode.

    6he government$owned$and$controlled corporations with original charter% refer to corporations chartered by special law as

    distinguished from corporation organi)ed under our general incorporation statute, the Corporation Code.

    +hile government employees are allowed under the 89: Constitution to organi)e and join union of their choice, there is no law

    permitting them to strike.

    Art. 12;. @isitorial and enforcement power.

    @isitorial Power of the ecretar) of Labor and ?mplo)ment or his d&l) a&thori6ed representati(es/ incl&din! labor re!&lation

    officers

    . !ccess to employers records and premises at any time of the day or night whenever work is being undertaken therein1

    &. 6o copy from employerAs records12. 6o "uestion any employee

    /. 6o investigate any fact, condition or matter which may be necessary to determine violations or which may aid in theenforcement of this Code

    ?nforcement Power of the ecretar) of Labor and ?mplo)ment or his d&l) a&thori6ed representati(es

    . 6o to issue compliance orders to give effect to the labor standards provisions of this Code and other labor legislation based on

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    the findings of labor employment and enforcement officers or industrial safety engineers made in the course of inspection1

    &. 6o issue writs of e#ecution to the appropriate authority for the enforcement of their orders1

    2. 6he (ecretary of Labor and 'mployment to order stoppage of work or suspension of operations of any unit or department o

    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.

    /. 6he (ecretary of Labor and 'mployment may re"uire employers to keep and maintain such employment records as may be

    necessary in aid of his visitorial and enforcement powers under this Code.

    t is the right of employer to ask authority from visiting labor personnel. =ailure may result to a waiver.

    'mployerAs remedy to contest the findings of the (ecretary of Labor and 'mployment or his duly authori)ed representatives is the

    presentation of documentary evidence, i.e. payrolls, ((( payment receipts.

    !n order issued by the duly authori)ed representative of the (ecretary of Labor and 'mployment under this !rticle may be appealed

    to the latter. n case said order involves a monetary award, an appeal by the employer may be perfected only upon the posting of a

    cash or surety bond issued by a reputable bonding company duly accredited by the (ecretary of Labor and 'mployment in the amoun

    e"uivalent to the monetary award in the order appealed from.

    +ithin 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. n 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.

    t shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render ineffective the orders of the (ecretary of

    Labor and 'mployment or his duly authori)ed representatives issued pursuant to the authority granted under this !rticle, and noinferior court or entity shall issue temporary or permanent injunction or restraining order or otherwise assume jurisdiction over anycase involving the enforcement orders issued in accordance with this !rticle.

    !ny government employee found guilty of violation of, or abuse of authority, under this !rticle shall, after appropriate administrative

    investigation, be subject to summary dismissal from the service.

    Art. 120. 3eco(er) of wa!es/ simple mone) claims and other benefits.

    The 3e!ional Director of the Department of Labor and ?mplo)ment or an) of the d&l) a&thori6ed hearin! officers of the

    Department is empowered, through summary proceeding and after due notice, to hear and decide1

    . any matter involving the recovery of wages and other monetary claims and benefits, including legal interest, provided that the

    aggregate money claims of each employee or househelper does not e#ceed =ive thousand pesos 4P>,DDD.DD5.&. owing to an employee or person employed in domestic or household service or househelper under this Code

    2. arising from employer$employee relations

    /. complaint does not include a claim for reinstatement1 and

    6he 0egional -irector or hearing officer shall decide or resolve the complaint within thirty 42D5 calendar days from the date of the

    filing of the same.

    An) s&m th&s reco(ered on behalf of any employee or househelper pursuant to this !rticle shall be held in a special deposiacco&nt b),and shall be paid on order of, the 45 Secretary of Labor and 2ployent or 4&5 the Re*ional 3irectoror 425 directly

    to the eployeeor househelper concerned.

    !ny such sum not paid to the employee or househelper because he cannot be located after diligent and reasonable effort to locate him

    within a period of three 425 years, shall be held as a special fund of the -epartment of Labor and 'mployment to be used e#clusively

    for the amelioration and benefit of workers.

    An) decision or resol&tion of the 3e!ional Director or hearin! officer p&rs&ant to this pro(ision ma) be appealed on the same

    grounds provided in !rticle &&2 of this Code, within fi(e +=- calendar da)s from receipt of a cop) of said decision or resol&tion/ to

    the National Labor 3elations Commission which shall resol(e the appeal within ten +1- calendar da)sfrom the submission othe last pleading re"uired or allowed under its rules.

    6he (ecretary of Labor and 'mployment or his duly authori)ed representative may supervise the payment of unpaid wages and othermonetary claims and benefits, including legal interest, found owing to any employee or househelper under this Code. 4!s amended by

    (ection &, 0epublic !ct o. ?:>, @arch &, 8985

    Art. 21. %&risdiction of the Labor Arbiters and the Commission.

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    ?*ception#

    6hrough the 3oards and entities authori)ed by the (ecretary of Labor

    -irect$hiring by members of the diplomatic corps, international organi)ations and such other employers as may be allowed

    by the (ecretary of Labor

    3?P97L:C ACT N>. ;42i!rant 8orkers and >(erseas Bilipinos Act of 100=

    An act to instit&te the policies of o(erseas emplo)ment and establish a hi!her standard of protection and promotion of the

    welfare of mi!rant workers/ their families and o(erseas Bilipinos in distress/ and for other p&rposes.

    ?C. 2. D?CLA3AT:>N >B P>L:C:?$$

    %e tate does not promote oerseas employment as a means to s'stain economic gro+t% and ac%iee national

    deelopment. 6he e#istence of the overseas employment program rests solely on the assurance that the dignity andfundamental human rights and freedoms of the =ilipino citi)ens shall not, at any time, be compromised or violated. %e

    tate, t%erefore, s%all contin'o'sly create local employment opport'nities and promote t%e e/'itable distrib'tion of

    +ealt% and t%e benefits of deelopment.

    ?C. . D?B:N:T:>N

    i!rant worker a person who is to be engaged, is engaged or has been engaged in a renumerated activity in a state of which he or

    she is not a legal resident to be used interchangeably with overseas =ilipino worker.

    >(erseas Bilipinos dependents of migrant workers and other =ilipino nationals abroad who are in distress as mentioned in (ections

    &/ and &? of this !ct.

    ::. :LL?AL 3?C39:T?NT

    ec. ,. D?B:N:T:>N

    :lle!al recr&itment any act of canvassing, enlisting, contracting, transporting, utili)ing, hiring, procuring workers and includes

    referring, contact services, promising or advertising for employment abroad, whether for profit or not, when 'ndertaen by a non-license or non-%older of a't%ority. Provided, that such non$license or non$holder, who, in any manner, offers or promises for a fee

    employment abroad to two or more persons shall be deemed so engaged. 1t s%all lie+ise incl'de t%e follo+ing acts, +%et%er

    committed by any persons, +%et%er a non-licensee, non-%older, licensee or %older of a't%ority.

    4a5 o c%arge or acceptdirectly or indirectly any amo'nt greater t%anthe specified in the schedule of allowable feesprescribed by

    t%e ecretary of *abor and 2mployment, or to make a worker pay any amount greater than that actually received by him as a loan or

    advance1

    4b5 o f'rnis% or p'blis% any false noticeor information or document in relation to recr'itment or employment1

    4c5o gie any false notice, testimony, information or document or commit any act of misrepresentationfor thep'rpose of sec'ring

    a license or a't%orityunder the Labor Code1

    4d5 o ind'ce or attempt to ind'ce a +oreralready employed to /'it %is employmentin order to offer him another 'nless t%etransfer is designed to liberate a +orer from oppressie terms and conditions of employment1

    4e5 o infl'ence or attempt to infl'ence any personsor entity not to employ any +orer +%o %as not applied for employment

    t%ro'g% %is agency1

    4f5 o engage in t%e recr'itment of placement of +orers in obs %armf'l to p'blic %ealt% or morality or to dignity of t%e Rep'blicof t%e P%ilippines1

    4g5 o obstr'ct or attempt to obstr'ct inspection by t%e ecretary of *abor and 'mployment or by %is d'ly a't%ori3ed

    representatie1

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    4h5 o fail to s'bmit reportson the status of employment, placement vacancies, remittances of foreign e#change earnings, separations

    from jobs, departures and such other matters or information as may be re/'ired by t%e ecretary of *abor and 2mployment1

    4i5 o s'bstit'te or alter to t%e pre'dice of t%e +orer, employment contracts approed and erified by t%e Department of *abor

    and 2mploymentfrom the time of actual signing thereof by the parties up to and including the period of the e#piration of the same

    without the approval of the -epartment of Labor and 'mployment1

    4j5 4or an officer or agent of a recr'itment or placement agency to become an officer or member of t%e oard of any corporation

    engaged in trael agencyor to be engaged directly on indirectly in the management of a travel agency1

    4k5 o +it%%old or deny trael doc'ments from applicant +orers before departurefor monetary or financial considerationsother

    than those authori)ed under the Labor Code and its implementing rules and regulations1

    4l54ail're to act'ally deploy +it%o't alid reasonsas determined by the -epartment of Labor and 'mployment1 and

    4m5 4ail're to reimb'rse e6penses inc'rred by t%e +orers in connection +it% %is doc'mentation and processing for p'rposes of

    deployment, in cases where the deployment does not actually take place without the workerAs fault.

    llegal recruitment when committed b) a s)ndicateor in lar!e scaleshall be considered as offense involving economic

    sabota!e.

    )ndicate is illegal recruitment carried out by a group of three 425 or more persons conspiring or confederating with one another.

    Lar!e scale is illegal recruitment committed against three 425 or more persons individually or as a group.

    6he personscriminally liablefor the above offenses are theprincipals, accomplicesand accessories.

    n case of'&ridical persons, the officershaving control, management or direction of their business shall be liable.

    !n employee who was merely acting under the direction of his superiors and was unaware that his acts constituted a crime

    may not be held criminally liable.

    ?C. . P?NALT:?

    4a5 !ny person foundg'ilty of illegal recr'itmentshall suffer the penalty of imprisonment of not less t%an si6 () years and one (!)

    day b't not more t%an t+ele (!8) years and a fine not less t%an t+o %'ndred t%o'sand pesos (P800,000.00) nor more t%an fie

    %'ndred t%o'sand pesos (P500,000.00).

    4b5 6he penalty of life imprisonment and a fine of not less t%an fie %'ndred t%o'sand pesos (P500,000.00) nor more t%an one

    million pesos (P!,000,000.00) shall be imposed if illegal recr'itment constit'tes economic sabotageas defined herein.

    Provided, however, that the ma#imum penalty shall be imposed if the person illegally recruited is less than eighteen 495 years of age

    or committed by a non$licensee or non$holder of authority.

    ?C. ;. P3>E:7:T:>N >N >BB:C:AL AND ?PL>??

    :t shall be &nlawf&l for#

    . any official or employee of t%e Department of *abor and 2mployment, the Philippine N? CLA:

    3ut withstanding any provision of law to the contrary, t%e *abor Arbiters of t%e National *abor Relations &ommission (N*R&)

    s%all %ae t%e original and e6cl'sie 'risdiction to %ear and decide , within ninety 48D5 calendar days after filing of the complaint

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    the claims arising o't of an employer-employee relations%ip or by irt'e of any la+ or contract inoling 4ilipino +orers for

    oerseas deploymentincluding claims for actual, moral, e#emplary and other forms of damages.

    6heliabilityof the principalEemployer and the recruitmentEplacement agency for any and all claims under this section shall be'oint and se(eral.

    6heperformance bondto be filed by the recruitmentEplacement agency, as provided by law, shall be answerable for al

    mone) claims or dama!esthat may be awarded to the workers.

    (uch liabilities s%all contin'eduring the entire period or duration of the employment contract and shall not be affected by

    anysubstitution, amendment or modificationmade locally or in a foreign country of t%e said contract.

    !ny compromise9amicable settlement or voluntary agreement on money claims inclusive of damages under this section s%albe paid +it%in fo'r (#) mont%s from t%e approalof the settlement by the appropriate authority.

    n case of termination of o(erseas emplo)ment witho&t '&st, valid or authori)ed ca'se as defined by law or contract, t%e

    +orers s%all be entitled to t%e f'll reimb'rsement of %is placement fee +it% interest of t+ele percent (!8:) per ann'm,

    pl's %is salaries for t%e 'ne6pired portion of %is employment contract or for t%ree (;) mont%s for eery year of t%e

    'ne6pired term, +%ic%eer is less.

    on$compliance with the mandatory periods for resolutions of cases provided under this section shall subject the responsible

    officials to any or all of the following penalties;

    4a5 6he salary of any such official who fails to render his decision or resolutions within the prescribed period shall be, or caused to be

    withheld until the said official complies therewith1

    4b5 (uspension for not more than ninety 48D5 days1 or

    4c5 -ismissal from the service with dis"ualifications to hold any appointive public office for five 4>5 years.

    ?C. 12. P3?C3:PT:@? P?3:>D

    llegal recruitment cases under this !ct shall prescribe in fi(e +=- )ears; Provided, however, 6hat illegal recruitment casesin(ol(in! economic sabota!eas defined herein shall prescribe in twent) +2- )ears.

    ?C. 1=. 3?PAT3:AT:>N >B 8>3?3F ??3?NC 3?PAT3:AT:>N B9ND

    6he repatriation of the worker and the transport of his personal belongings shall be the primary responsibility of the agency

    which recruited or deployed the worker overseas. All costs attendant to repatriation s%all be borne by or c%arged to t%e

    agency concerned and9or its principal.Likewise, the repatriation of remains and transport of the personal belongings of adeceased worker and all costs attendant thereto shall be borne by the principal andEor local agency.

    Fowever, in cases +%ere t%e termination of employment is d'e solely to t%e fa'lt of t%e +orer, t%e principal9employer or

    agency s%all notin any manner be responsible for t%e repatriation of t%e former and9or %is belongings.

    %e

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    Chapter ::

    3?9LAT:>N >B 3?C39:T?NT AND PLAC??NT ACT:@:T:?

    Art. 2=. Pri(ate sector participation in the recr&itment and placement of workers.

    %e priate employment sector s%all participate in t%e recr'itment and placement of workers, locally and overseas, 'nder s'c%

    g'idelines, r'les and reg'lationsas may be issued by the (ecretary of Labor.

    Art. 2,. Tra(el a!encies prohibited to recr&it.

    6ravel agencies and sales agencies of airline companies are prohibited from engaging in the business of recruitment and placement o

    workers for overseas employment whether for profit or not.

    Art. 2. Citi6enship re5&irement.

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    Art. . 3eports on emplo)ment stat&s.

    =%eneer t%e p'blic interest re/'ires, t%e ecretary of *abor may direct all persons or entities within the coverage of this 6itle to

    s'bmit a report on the status of employment, including job vacancies, details of job re"uisitions, separation from jobs, wages, other

    terms and conditions and other employment data.

    Art. 4. Prohibited practices.

    6hese prohibited acts constitutes illegal recruitment as redefined by 0! o. 9D/&.

    Art. =. &spension andGor cancellation of l icense or a&thorit).

    %e >inister of *abor s%all %ae t%e po+er to s'spend or cancel any license or a't%ority to recruit employees for overseasemployment for violation of rules and regulations issued by the @inistry of Labor, the 9 P3>@::>N

    Art. ,. 3e!&lator) power.

    %e ecretary of *abor s%all %ae t%e po+er to restrict and reg'late t%e recr'itment and placement actiities of all agencieswithinthe coverage of this 6itle and is hereby authori)ed to issue orders and promulgate rules and regulations to carry out the objectives and

    implement the provisions of this 6itle.

    Art. . @isitorial Power.

    %e ecretary of *abor or %is d'ly a't%ori3ed representaties may, at any time, inspect t%e premises, boos of acco'nts and

    records of any personor entity covered by this 6itle,re/'ire it to s'bmit reports reg'larly on prescribed forms, and act on iolation

    of any proisions of t%is itle.

    Art. ;. :lle!al recr&itment.

    (uch acts are already contained in 0! o. 9D/&.

    Title ::

    ?PL>?NT >B N>N$3?:D?NT AL:?N

    Art. 4. ?mplo)ment permit of non$resident aliens.

    !ny alien seeking admission to the Philippines for employment purposes and any domestic or foreign employer who desires to engage

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    an alien for employment in the Philippines shall obtain an employment permit from the -epartment of Labor.

    %e employment permit may be iss'ed to a non-resident alien or to t%e applicant employer after a determination of t%e non-

    aailability of a person in t%e P%ilippines +%o is competent, able and +illingat the time of application to perform the services for

    which the alien is desired.

    4or an enterprise registeredin preferred areas of investments, said employment permit may be iss'ed 'pon recommendation of t%egoernment agency c%arged +it% t%e s'perision of said registered enterprise.

    Art. 41. Prohibition a!ainst transfer of emplo)ment

    !fter the issuance of an employment permit, the alien s%all not transfer to anot%er ob or c%ange %is employer +it%o't prior

    approal of t%e ecretary of *abor.

    !ny non$resident alien who shall take up employment in iolationof the provision of this 6itle and its implementing rules and

    regulations s%all be p'nis%ed in accordance +it% t%e proisions of Articles 8?" and 8"0 of t%e *abor &ode.

    n addition, t%e alien +orer s%all be s'bect to deportation after serice of %is sentence.

    Art. 42. &bmission of list.

    Any employer employing non-resident foreign nationalson the effective date of this Code s%all s'bmit a list of s'c% nationals to

    t%e ecretary of *abor +it%in t%irty (;0) days####. 6he (ecretary of Labor shall then determine if they are entitled to an employmen

    permit.

    Permits to be iss&ed#

    Alien 2mployment Permit (A2P) for non$resident alien

    Alien 2mployment Registration &ertificate (A2R&) for resident alien

    7>> T8>

    E9AN 3?>93C? D?@?L>P?NT P3>3A

    Title ::

    T3A:N:N AND ?PL>?NT >B P?C:AL 8>3?3

    Chapter :

    APP3?NT:C?

    Art. =;. Definition of Terms.

    Apprenticeship practical training on the job supplemented by related theoretical instruction.

    Apprentice is a worker who is covered by a written apprenticeship agreement with an individual employer or any of the entities

    recogni)ed under this Chapter.

    Apprenticeable occ&pation any trade, form of employment or occupation which re"uires more than three 425 months of practica

    training on the job supplemented by related theoretical instruction.

    Art. =0. H&alifications of apprentice.

    4a5 3e at least fourteen 4/5 years of age1

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    4b5 Possess vocational aptitude and capacity for appropriate tests1 and

    4c5 Possess the ability to comprehend and follow oral and written instructions.

    Art. ,. ?mplo)ment of apprentices.

    5 days from receipt of the decision. %e decision of t%e ecretary of *abor and

    2mployment s%all be final and e6ec'tory.

    Art. ,. ?*ha&stion of administrati(e remedies.

    o person shall institute any action for the enforcement of any apprenticeship agreement or damages for breach of any such

    agreement, unless he has e#hausted all available administrative remedies.

    Art. . @ol&ntar) or!ani6ation of apprenticeship pro!ramsF e*emptions.

    eneral r&le#

    6he organi)ation of apprenticeship program shall be primarily a voluntary undertaking by employers1

    '#ceptions;

    4a5 =%en national sec'rity or partic'lar re/'irements of economic deelopment so demand, the resident of the hilippinesay re4$ire cop$lsory trainin* of apprentices in certain trades, occupations, jobs or employment levels where shortage of

    trained manpower is deemed critical as deterined by the Secretary of Labor and 2ployent. !ppropriate rules in this

    connection shall be promulgated by the (ecretary of Labor and 'mployment as the need arises1 and

    4b5 =%ere serices of foreign tec%nicians are 'tili3ed by priate companies in apprenticeable trades , said companies arere"uired to set up appropriate apprenticeship programs.

    Art. 1. Ded&ctibilit) of trainin! costs

    !n additional deduction from ta#able income of one-%alf (!98)of the value of labor training e#penses incurred for developing the

    productivity and efficiency of apprentices shall be granted to the person or enterprise organi)ing an apprenticeship program;

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    Provided; 6hat suchprogram is d'ly recogni3ed by t%e Department of *abor and 2mployment;

    Provided, further, 6hat such ded'ction s%all not e6ceed ten (!0:) percent of direct labor +age; and

    Provided, finally, 6hat t%e personor enterprise +%o +is%es to aailhimself or itself of this incentive shouldpay %is

    apprentices t%e minim'm +age.

    Art. 2. Apprentices witho&t compensation.

    6he (ecretary of Labor and 'mployment may authori)e the %iring of apprentices +it%o't compensation

    4a5 whose training on the job is re"uired by

    G the school or

    G training program curriculum

    4b5 or as re"uisite for

    G graduation or

    G board e#amination.

    Notes#

    n relation to !rt. :&, the mplementing 0ules provide that t%ere is no employer-employee relations%ip bet+een st'dentson

    one hand, and sc%oolson the other, +%ere t%ere is +ritten agreementunder which the former agree to work for the latter in

    e#change for the privilege to study free of charge,proided t%e st'dents are gien real opport'nities to finis% t%eir c%osen

    co'rsesunder such agreement.

    Fowever, in the case of Bilamer Christian :nstit&te (s. Eon. :ntermediate Apellate Co&rt/ et. al./*0 o. :>&, !ugus:, 88&, the (upreme Court that the applicable law was !rt. &9D of the Civil Code and not the Labor CodeAs implementing

    rule. @nder Art. 8!?0, an in'red party s%all %ae reco'rse against t%e serant as +ell as t%e petitioners sc%ool for +%om,

    at t%e time of incident, t%e serant +as performing an act in f'rt%erance of t%e interest and for t%e benefit of t%e sc%ool.

    Bo&r$Bold Test in Determinin! ?mplo)er$?mplo)ee 3elationship

    . the selection and engagement of the employee

    &. the payment of wages

    2. the power of dismissal

    /. the employerAs power to control with respect to the means and methods by which the work is to be accomplished

    43rotherhood vs. Hamora5

    Chapter ::

    L?A3N?3

    Art. . Learners defined.

    Learners persons hired as trainees in semi$skilled and other industrial occupations which are non$apprenticeable and which may be

    learned through practical training on the job in a relatively short period of time which shall not e#ceed three 425 months.

    Art. 4. 8hen learners ma) be hired.

    Learners may be employed when;

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    . o e#perienced workers are available1

    &. 6he employment of learners is necessary to prevent curtailment of employment opportunities1 and,

    2. 6he employment does not create unfair competition in terms of labor costs or impair or lower working standards.

    Art. =. Learnership a!reement.

    Any employer desiring to employ learners s%all enter into a learners%ip agreementwith them, which agreement shall include;

    6henames and addresses of t%e learners1

    6he d'ration of the learnership period, which shall not e6ceed t%ree (;) mont%s1

    6he +ages or salary rates of the learners which shall begin at not less t%an seenty-fie percent (75:) of t%e applicable

    minim'm +age1 and

    ! commitment to employ t%e learners if t%ey so desire, as regular employees 'pon completion of t%e learners%ip.

    All learners +%o %ae been allo+ed or s'ffered to +or d'ring t%e first t+o (8) mont%s s%all be deemed reg'lar employees if

    training is terminated by t%e employer before t%e end of t%e stip'lated period t%ro'g% no fa'lt of t%e learners.

    6he learners%ip agreement s%all be s'bect to inspection by t%e ecretary of *abor and 'mployment or his duly authori)edrepresentative.

    Art. ,. Learners in piecework.

    *earners employed in piece or incentie-rate obs during the training period s%all be paid in f'll for t%e +or done.

    Art. . Penalt) cla&se.

    !ny iolationof this Chapter or its implementing rules and regulations shall be s'bect to t%e general penalty cla'seprovided for in

    t%is &ode.

    Learnership (s. Apprenticeship

    Learnership Apprenticeship

    imilaritiesB

    3oth mean training periods for jobs

    re"uiring skills that can be ac"uired through

    actual work e#perience

    3oth may be paid wages twenty$five percent

    lower than the applicable minimum wage

    DistinctionsB

    ! learner trains in semi$skilled job or in

    industrial occupations that re"uire

    !llowed even for non technical jobs

    6raining shall not e#ceed three months

    ! learner is not an apprentice

    imilaritiesB

    3oth mean training periods for jobs

    re"uiring skills that can be ac"uired through

    actual work e#perience

    3oth may be paid wages twenty$five percent

    lower than the applicable minimum wage

    DistinctionsB

    !n apprentice trains in a highly skilled job

    or in a job found only in highly technical

    industry

    !llowed only in highly technical industries

    6raining e#ceeds three months

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    !n employer is committed to hire the

    learner$trainee as an employee after thetraining period

    Conceptually, an apprentice is also a learner

    n apprenticeship, no such commitment

    e#ists

    Chapter :::

    EAND:CAPP?D 8>3?3

    Art. ;. Definition.

    Eandicapped workers those whose earning capacity is impaired by age or physical or mental deficiency or injury.

    Art. 0. 8hen emplo)able.

    Fandicapped workers may be employed;

    . +hen their employment is necessary to prevent curtailment of employment opportunities1 and,

    &. +hen it does not create unfair competition in labor costs or impair or lower working standards.

    Art. ;. ?mplo)ment a!reement.

    !ny employer who employs handicapped workers shall enter into an employment agreement with them, which agreement shall

    include;

    6he names and addresses of t%e %andicapped +orers to be employed1

    6he rate to be paidthe handicapped workers which shall not be less t%an seenty fie (75:) percent of t%e applicable legal

    minim'm +age1

    6he d'ration of employment period1 and

    6he +or to be performed by %andicapped +orers.

    6he employment agreement s%all be s'bect to inspection by t%e ecretary of *aboror his duly authori)ed representative.

    Art. ;1. ?li!ibilit) for apprenticeship.

    (ubject to the appropriate provisions of this Code,handicapped workers ma) be hired as apprenticesorlearners if#

    t%eir %andicap is not s'c% as to effectiely impede t%e performance of ob operations in t%e partic'lar occ'pations for

    +%ic% t%ey are %ired.

    Art. 1=. Discrimination prohibited.

    t shall be 'nla+f'l for any employer to discriminate against any +oman employee with respect to terms and conditions of

    employment solely on acco'nt of %er se6.

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    Art. 1,. tip&lation a!ainst marria!e.

    t shall be 'nla+f'l for an employer to re/'ire as a condition of employment or contin'ation of employment t%at a +oman

    employee s%all not get married, or to stipulate e#pressly ortacitly that upon getting married, a woman employee shall be deemed

    resigned or separated, or to actually dismiss, discharge, discriminate or ot%er+ise pre'dice a +oman employee merely by reason of

    %er marriage.

    Art. 10. inim&m emplo)able a!e.

    4a5 o child below fifteen 4>5 years of age shall be employed, e#cept when he works directly under the sole responsibility of his

    parents or guardian, and his employment does not in any way interfere with his schooling.

    4b5 !ny person between fifteen 4>5 and eighteen 495 years of age may be employed for such number of hours and such periods

    of the day as determined by the (ecretary of Labor and 'mployment in appropriate regulations.

    4c5 6he foregoing provisions shall in no case allow the employment of a person below eighteen 495 years of age in an

    undertaking which is ha)ardous or deleterious in nature as determined by the (ecretary of Labor and 'mployment.

    Art. 14. Prohibition a!ainst child discrimination.

    No employer s%all discriminate against any person in respect to terms and conditions of employment on acco'nt of %is age.

    3?P97L:C ACT N>. 021

    Law ?liminatin! the 8orst Borms of Child Labor

    ection 2.(ection & of the same !ct, as amended, is hereby further amended to read as follows;

    "ec. 2.2mployment of &%ildren$

    eneral 3&le# Children below fifteen 4>5 years of age shall not be employed

    e*cept#

    . =%en a c%ild +ors directly 'nder t%eB 4a5 sole responsibility of %is9%er parents or legal g'ardianand 4b5 +%ere only members

    of %is9%er family are employed;rovided, ho0ever,6hat hisEher 4c5 employment neit%er endangers %is9%er life, safety, %ealt%, and

    morals, nor impairs %is9%er normal deelopment;rovided, f$rther, 6hat 4d5 t%e parent or legal g'ardian s%all proide t%e saidc%ild +it% t%e prescribed primary and9or secondary ed'cation1 or

    &. =%ere a c%ildCs 4a5employment or participation in p'blic entertainment or information t%ro'g% cinema, t%eater, radio,

    teleision or ot%er forms of media is essential;rovided, 6hat the 4b5 employment contract is concl'ded by t%e c%ildCs parents or

    legal g'ardian, 4c5 +it% t%e e6press agreement of t%e c%ild concerned, if possible, and the 4d5 approal of t%e Department of *abor

    and 2mployment;Proided, f'rt%er, %at t%e 4e5follo+ing re/'irements in all instances are strictly complied +it%B

    I4a5 6he employer s%all ens're t%e protection, %ealt%, safety, morals and normal deelopment of t%e c%ild1

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    I4b5 6he employer s%all instit'te meas'res to preent t%e c%ildCs e6ploitation or discrimination taking into account the system andlevel of remuneration, and the duration and arrangement of working time1 and

    I4c5 6he employer s%all form'late and implement,subject to the approval and supervision of competent authorities, a contin'ing

    program for training and sills ac/'isition of t%e c%ild.

    I1n t%e aboe-e6ceptional caseswhere any such child may be employed, t%e employer s%all first sec're, before engaging s'c% c%ild,a +or permit from t%e Department of *abor and 2mployment which shall ensure observance of the above re"uirements.

    I=or purposes of this !rticle, the term

    Child shall apply to all persons under eighteen 495 years of age.%

    ection . 6he same !ct, as amended, is hereby further amended by adding new sections to be denominated as (ections &$!, &$3,

    &$C, and &$- to read as follows;

    "ec. 2$A.o'rs of =or of a =oring &%ild.$ Bnder the e#ceptions provided in (ection & of this !ct, as amended;

    I45 ! child belo+ fifteen (!5) years of agemay be allowed to work for not more t%an t+enty (80) %o'rs a +ee;Proided,6hat the

    +or s%all not be more t%an fo'r (#) %o'rs at any gien day1

    I4&5 ! childfifteen (!5) years of age b't belo+ eig%teen (!?)shall notbe allowed to workfor more t%an eig%t (?) %o'rs a day, and

    in no case beyond forty (#0) %o'rs a +ee1

    425No c%ild belo+ fifteen (!5) years of age s%all be allo+ed to +or bet+een eig%t oCcloc in t%e eening and si6 oCcloc in t%e

    morning of t%e follo+ing dayand no c%ild fifteen (!5) years of age b't belo+ eig%teen (!?) s%all be allo+ed to +or bet+een tenoCcloc in t%e eening and si6 oCcloc in t%e morning of t%e follo+ing day.

    "ec. 12$D.Pro%ibition Against =orst 4orms of &%ild *abor. $ o child shall be engaged in the worst forms of child labor. 6he

    phrase Iworst forms of child laborI shall refer to any of the following;

    I45All forms of slaery, as defined 'nder t%e EAnti-trafficing in Persons Act of 800;E, or practices similar to slavery such as saleand trafficking of children, debt bondage and serfdom and forced or compulsory labor, including recruitment of children for use in

    armed conflict1 or

    I4&5 %e 'se, proc'ring, offering or e6posing of a c%ild for prostit'tion, for t%e prod'ction of pornograp%y or for pornograp%ic

    performances1 or

    I425 %e 'se, proc'ring or offering of a c%ild for illegal or illicit actiities , including the production and trafficking of dangerous

    drugs and volatile substances prohibited under e#isting laws1 or

    I4/5 =or +%ic%, by its nature or the circumstances in which it is carried out, is %a3ardo's or liely to be %armf'l to t%e %ealt%,

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    safety or morals of c%ildren, such that it;

    Ia5 -ebases, degrades or demeans the intrinsic worth and dignity of a child as a human being1 or

    Ib5 '#poses the child to physical, emotional or se#ual abuse, or is found to be highly stressful psychologically or may prejudicemorals1 or

    Ic5 s performed underground, underwater or at dangerous heights1 or

    Id5 nvolves the use of dangerous machinery, e"uipment and tools such as power$driven or e#plosive power$actuated tools1 or

    Ie5 '#poses the child to physical danger such as, but not limited to the dangerous feats of balancing, physical strength or contortion, or

    which re"uires the manual transport of heavy loads1 or

    If5 s performed in an unhealthy environment e#posing the child to ha)ardous working conditions, elements, substances, co$agents orprocesses involving ioni)ing, radiation, fire, flammable substances, no#ious components and the like, or to e#treme temperatures

    noise levels, or vibrations1 or

    Ig5 s performed under particularly difficult conditions1 or

    Ih5 '#poses the child to biological agents such as bacteria, fungi, viruses, proto)oans, nematodes and other parasites1 or

    Ii5 nvolves the manufacture or handling of e#plosives and other pyrotechnic products.I

    ection =.(ection / of the same !ct is hereby amended to read as follows;

    "ec. 14.Pro%ibition on t%e 2mployment of &%ildren in &ertain Adertisements.$

    No c%ild s%all be employed as a model in any adertisement directly or indirectly promoting alco%olic beerages, into6icating

    drins, tobacco and its byprod'cts, gambling or any form of iolence or pornograp%y.I

    7>> TE3??

    C>ND:T:>N >B ?PL>?NT

    Title :

    8>3:N C>ND:T:>N AND 3?T P?3:>D

    Chapter :

    E>93 >B 8>3

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    Art. ;2. Co(era!e.

    6he provisions of this 6itle

    eneral 3&le# +orking Conditions and rest periods shall apply to employees in all establishments and undertakings whether fo

    profit or not.

    ?*ceptions#

    . government employees

    &. managerial employees

    2. non$agricultural field personnel

    /. officers or members of managerial staff

    >. domestic helpers and persons in the personal service of another, and

    ?. workers who are paid by results

    ana!erial emplo)ees those whose primary duty consists of the management of the establishment in which they are employed or

    of a department or subdivision thereof, and to other officers or members of the managerial staff.

    Bield personnel those non$agricultural employees who regularly perform their duties away from the principal place of business or

    branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.

    Law prevails over a contract

    6he e#istence of a employer$employee relationship is not a matter of stipulation1 it is a "uestion of law.

    'mployer$employee relationship is also a "uestion of fact depends upon the fact of its case.

    'mployer$employee relationship may e#ist regardless of the nature of the activities involved. 6he kind of work is not definitive test o

    whether the worker is an employee or not.

    ?mplo)er includes any person acting in the interest of an employer in relation to an employeeJ and an Iemplo)eeJincludes anyindividual employed by an employer 4!rt. 8:5

    ?lements of ItestsJ of emplo)ment relationship

    I3i!ht of control testJ where the person for whom the services are performed reserves a right to control not only the end to be

    achieved but also the means to be used in reaching such end.

    The e*istin! economic conditions pre(ailin! between the parties +certain economic parameters- e#. 6he inclusion of theemployee in the payrolls, in determining the relationship of employer$employee relationship.

    Ifo&r fold testJ

    a. the selection and en*a*eent of the eployee

    b. the payent of 0a*es

    c. the po0er of disissal

    d. the eployer5s po0er to control the eployee 0ith respect to the eans and ethods by 0hich the 0or6 is to be

    accoplished

    ?(idence of ?mplo)ment# :dentification Card/ @o&chers/ 3e!istration/ emorand&m

    n administrative and "uasi$judicial proceedings, s'bstantial eidence is sufficient as a basis for judgment on the e#istence o

    employer$employee relationship. o particular form to evidence is re"uired to prove the e#istence of such relationship. !ny

    competence and relevant evidence to prove the relationship may be admitted. 4doasi* vs. NLRC, Sept. &, &!!

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    odes of Compensation/ Not a test of ?mplo)ment tat&s

    2ployent relationship is one thin*, pay deterination is another

    Piece-rate, bo'ndary, and paya+are erely ethods of pay cop$tation and do not prove 0hether the payee is aneployee or not.

    Pakiao% does not make petitioners independent contractors. Pakiao workers are considered employees as long as the employer

    e#ercises control over the means by which such workers are to perform their work. 4Hamudio v. L0C, @arch &>, 88D5

    e*ercise of ?mplo)ment 3elationship Determined b) Law/ Not b) Contract 4even if the parties call their contract a Contract oLease of (ervices% under !rt. ?/& of the Civil Code, the factual e#istence of an employer$employee relationship still prevail5

    8E?N ?PL>?NT 3?LAT:>NE:P P3??NT

    1. alaried :ns&rance A!ents

    2. chool Teachers university controls the work of the members of its faculty5

    . %eepne) Dri(er/ Ta*i Dri(er/ 7arberjeepney ownersEoperators e#ercise supervision and control over their drivers

    6he owner as holder of the certificate of public convenience must see to it that the driver must follows the route

    prescribed by the franchising authority and the rules promulgated as regards its operation.

    4. Piece$rate 8orkers

    =. treet$hired Car!adores (note1 0ielded the po0er of disissal

    ,. Bishermen

    . 8orkers in o(ie Pro'ects

    +therefore entitled to the protection of the law and could not just be terminated without valid and justifiable reason5

    1 L!3

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    ealt% personnelfor the purpose of !rt. 29 of the Labor Code, they incl'de resident p%ysicians, n'rses, n'tritionists, dietitians,

    p%armacists, social +orers, laboratory tec%nicians, paramedical tec%nicians, psyc%ologists, mid+ies, attendants and all ot%er

    %ospital or clinic personnel.

    Part$time work the wage and the benefits of a part$timer are in proportion to the number of hours worked.

    =orty$hour work week would not be applicable if there is a training agreement between the resident physician and the hospital and thetraining program is duly accredited or approved by the appropriate government agency.

    Art. ;4. Eo&rs worked.

    o'rs +ored shall incl'de;

    4a5 all time during which an employee is re"uired to be on duty or to be at a prescribed workplace1 and

    4b5 all time during which an employee is suffered or permitted to work.

    4c5 0est periods of short duration during working hours.

    Rest periods of s%ort d'ration d'ring +oring %o'rs s%all be co'nted as %o'rs +ored.

    Compressed 8ork 8eek

    0esorted to by the employer to prevent serious losses due to causes beyond his control.

    nstead of working ? days a week, the employees will be regularly working for less than ? days but each workday e#ceeds 9hours. =or the hours e#ceeding 9 in a workday, the employees waive their

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    4a5 +here the +or is nonman'alwork in nature ordoes notinvolve stren'o's p%ysical e6ertion1

    4b5 +here the establis%mentregularly operates not less t%an si6teen %o'rsa day1

    4c5 n cases of act'al or impending emergencies or t%ere is 'rgent +or to be performed on machineries, e"uipment or

    installations to avoid serious loss which the employer would otherwise suffer1 and,

    4d5 +here the work is necessary topreent serio's loss of peris%able goods.

    Rest periods or coffee breasrunning from > to &D minutes are considered as compensable +oring time.

    6o shorten meal time to less than &D minutes is not allowed. f the so$called meal time% is less than &D minutes, it becomes

    only a rest period.

    Art. ;,. Ni!ht shift differential.

    'very employee shall bepaid a nig%t s%ift differential of not less t%an ten percent (!0:) of %is reg'lar +age for eac% %o'r of +or

    performed bet+een ten oFcloc in t%e eening and si6 oFcloc in t%e morning.

    f work done between D pm and ? am is . domestic helpers, and persons in the personal service of another.

    Art. ;. >(ertime work.

    +ork may be performed beyond eight 495 hours a day provided that the employee is paid for the oertime +or, an additionacompensation e/'ialent to %is reg'lar +age pl's at least t+enty-fie percent (85:) t%ereof. +ork performed beyond eig%t %o'rs

    on a %oliday or rest day s%all be paid an additional compensation e/'ialent to t%e rate of t%e first eig%t %o'rs on a %oliday or rest

    day pl's at least t%irty percent (;0:) t%ereof.

    Art. ;;. 9ndertime not offset b) o(ertime.

    @ndertime +or on any particular day s%all not be offset by oertime +or on any other day. Permission given to the employee to go

    on leave on some other day of the week shall not e#empt the employer from paying the additional compensation re"uired in this

    Chapter.

    3eason#

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    . +hen t%e co'ntry is at +ar or +%en any ot%er national or local emergency has been declared by the ational !ssembly or

    the Chief '#ecutive1

    &. +hen it is necessary to preent loss of life or property or in case of imminent danger to p'blic safety due to an actual o

    impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earth"uake, epidemic, or other disasteror calamity1

    2. +hen there is 'rgent +or to be performed on mac%ines, installations, or e"uipment, in order to aoid serio's loss or

    damage to t%e employeror some other cause of similar nature1

    /. +hen the work is necessary to preent loss or damage to peris%able goods1 and,

    >. =%ere t%e completion or contin'ation of t%e +or started before t%e eig%t% %o'r is necessary to preent serio'sobstr'ction or pre'dice to t%e b'sinessor operations of the employer.

    ?. +hen overtime work is necessary to aail of faorable +eat%er or enironmental conditionswhere performance or "uality

    or work is dependent thereon.

    !ny employee re"uired to render oertime +or under this !rticle s%all be paid t%e additional compensation re"uired in this

    Chapter.

    Art. 0. Comp&tation of additional compensation.

    4or p'rposes of comp'ting oertime and ot%er additional rem'neration as re"uired by this Chapter, the Ereg'lar +ageE of anemployee s%all incl'de t%e cas% +age only, without deduction on account of facilities provided by the employer.

    3e!&lar 8a!e includes the cash wage only, without deduction on account of facilities provided by the employer.

    Chapter ::

    8??L 3?T P?3:>D

    Art. 01. 3i!ht to weekl) rest da).

    1t s%all be t%e d'ty of eery employer, +%et%er operating for profit or not, to proide eac% of %is employees a rest period of not less

    t%an t+enty-fo'r (8#) consec'tie %o'rs after eery si6 () consec'tie normal +or days.

    6he employer shall determine and schedule the weekly rest day of his employees subject to collective bargaining agreement and to

    such rules and regulations as the (ecretary of Labor and 'mployment may provide. Fowever, the employer shall respect the

    preference of employees as to their weekly rest day when such preference is based on religious grounds.

    'siness on 'ndays9olidays $ all establishments and enterprises may operate or open for business on (unday and

    Folidays provided that the employees are given the weekly rest day and the befits as provided in this 0ule.

    =eely Rest Day every employer shall give his employees a rest period of not less than &/ consecutive hours after every si#

    consecutive normal work days.

    Preference of employee the preference of the employee as to his weekly day of rest shall be respected by the employer if

    the same is based on religio's gro'nds.

    G 6he employee shall make no+n %is preferenceto the employer in +riting at least 7 days before t%e desired effectiity

    of the initial rest day so preferred.

    +here, %o+eer, the choice of the employee as to his rest day based on religious grounds will inevitably result in

    serio's pre'dice or obstr'ction to t%e operations of the undertaking and the employer cannot normally be e#pected to

    resort to other remedial measures,t%e employer may so sc%ed'le t%e +eely rest day of %is c%oice for at least 8 days in

    a mont%.

    c%ed'les of Rest Dayshall be made known to the employees through +ritten notices posted conspicuously in the work

    place at least one +ee before t%ey become effectie.

    Art. 02. 8hen emplo)er ma) re5&ire work on a rest da).

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    eneral 3&le# 6he employer cannot compel employees to work on a rest day.

    ?*ceptions# 6he employer may re"uire his employees to work on any day;

    . n case of act'al or impending emergencies caused by serious accident, fire, flood, typhoon, earth"uake, epidemic or other

    disaster or calamity to prevent loss of life and property, or imminent danger to public safety1

    &. 1n cases of 'rgent +or to be performedon the machinery, e"uipment, or installation, to avoid serious loss which the

    employer would otherwise suffer1

    2. n the event of abnormal press're of +ordue to special circumstances, where the employer cannot ordinarily be e#pected

    to resort to other measures1

    /. 6opreent loss or damage to peris%able goods1

    >. +here the nat're of t%e +orre"uires continuous operations and the stoppage of work may result in irreparable injury orloss to the employer1

    ?. Bnder ot%er circ'mstances analogo'sor similar to the foregoing as determined by the (ecretary of Labor and 'mployment

    and

    :. +hen the work is necessary to aail of faorable +eat%er or enironmental conditions where performance or "uality owork is dependent thereon.

    =%en an employee ol'nteers to +or on %is rest dayunder other circumstances, %e s%all e6press s'c% desire in +riting, he

    shall e#press such desire in writing, subject to payment of additional compensation.

    Art. 0. Compensation for rest da)/ &nda) or holida) work.

    =%ere an employee is made or permitted to +or on %is sc%ed'led rest day, %e s%all be paid an additional compensation of at least

    t%irty percent (;0:) of %is reg'lar +age.!n employee shall be entitled to such additional compensation for work performed on

    (unday only when it is his established rest day.

    +hen the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he

    shall be paid an additional compensation of at least thirty percent 42DM5 of his regular wage for work performed on (undays and

    holidays.

    =or performed on any special %oliday s%all be paid an additional compensation of at least t%irty percent (;0:) of t%e reg'lar

    +age of t%e employee. +here such %oliday +or falls on t%e employeeFs sc%ed'led rest day,he shall be entitled to an additiona

    compensation of at leastfifty per cent (50:) of %is reg'lar +age.

    +here the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay

    than that prescribed under this !rticle, the employer shall pay such higher rate.

    Chapter :::

    E>L:DA/ ?3@:C? :NC?NT:@? L?A@? AND ?3@:C? CEA3?

    Art. 04. 3i!ht to holida) pa).

    'very worker shall be paid his regular daily wage during regular holidays, e#cept in retail and service establishments regularly

    employing less than ten 4D5 workers1

    6he employer may re"uire an employee to work on any holiday but such employee shall be paid a compensation e"uivalent to twice

    his regular rate1 and

    !s used in this !rticle, IholidayI includes; ew Kears -ay, @aundy 6hursday, *ood =riday, the ninth of !pril, the first of @ay, the

    twelfth of 7une, the fourth of 7uly, the thirtieth of ovember, the twenty$fifth and thirtieth of -ecember and the day designated by lawfor holding a general election.

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    ?mplo)ees Not Co(ered b) Eolida)s Pa)

    . government employees1

    &. retail and service establishments regularly employing less than ten 4D5 workers1

    2. managerial employees1

    /. field personnel and other employees whose time and performance is unsupervised by the employer1 and,

    >. domestic helpers, and persons in the personal service of another.

    Absences

    'mployee on leave of absence with pay entitled to the benefit provided herein.

    'mployee on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the

    re"uired holiday pay if he has not worked on such regular holiday.

    +here the day immediately preceding the holiday is a non$working day in the establishment or the sche/duled rest day of the

    employee, he shall not be deemed to be on leave of absence on that day, in which case he shall be entitled to the holiday pay

    if he worked on the day immediately preceding the non$working day or rest day.

    emporary or Periodic %'tdo+n and emporary &essation of =or (1.e inentory, repair of e/'ipment) regular holidays

    falling within this period is compensable.

    emporary or Periodic %'tdo+n and emporary &essation of =or D'e to 'siness Reerses regular holidays fallingwithin this period is not compensable.

    Eolida) Pa) of Certain ?mplo)ees

    4a5 Pri(ate chool Teachers including faculty members of college and universities may not be paid regular holidays during

    semestral vacations. Paid for the regular holidays during Christmas vacation.

    4b5 ?mplo)ee Paid b) 3es&lts 4Payment on Piece +ork5 holiday pay shall not be less than his average daily earnings for thelast : actual working days preceding the regular holiday1 Provided however, that in no case shall the holiday pay be less thanthe applicable statutory minimum wage rate.

    4c5 easonal 8orkers may not be paid the re"uired holiday pay during off$season when they are not at work.

    4d5 8orkers 8itho&t 3e!&lar 8orkin! Da)s entitled to the benefits.

    Do&ble Eolida) an employee who is entitled to holiday pay should receive at least &DDM of his basic wage even if he did not work

    on that day, provided, he was present or on leave with pay on the preceding work day. f he worked, he is entitled to 2DDM of his basicwage.

    &ccessi(e 3e!&lar Eolida)s where there are two 4&5 successive regular holidays, an employee may not be paid for both holidays i

    he absents himself from work on the day immediately preceding the first holiday, unless he works on the first holiday, in which casehe is entitled to his holiday pay on the second holiday.

    6o be entitled to two 4&5 successive holidays, employee must; 45 be present on the day immediately preceding the stholiday1 or 4&5

    be on leave with pay.

    Eolida)s

    . ew Kears day $ 7an.

    &. @aundy 6hursday $ @ovable date

    2. *ood =riday $ @ovable date

    /. !raw ng Nagitingan $ !pril 8

    >. Labor -ay $ @ay

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    ?. ndependence -ay $ 7une &

    :. ational heroes -ay $ Last (unday of !ugust

    9. 3onifacio -ay $ ov. 2D

    8. 'idul =itr $ @ovable date

    D. Christmas -ay $ -ec. &>

    . 0i)al -ay $ -ec. 2D

    pecial Da)s

    . (pecial on$working -ays

    &. (pecial Public Folidays

    2. (pecial national Foliday

    /. !ll (aints -ay $ ov.

    >. Last -ay of the Kear $ -ec. 2

    ?. inoy !"uino -ay $ !ug. &

    3&les on Pa)ment of Eolida) Pa)

    1. 3e!&lar Eolida)s

    a. f it is employees regular work day;

    Bnworked; $ DDM

    +orked;o st9 hrs $ &DDM

    o '#cess of 9 hrs $ O2DM of hourly rate on said day

    b. f it is employees rest day;

    Bnworked; $ DDM

    +orked;

    o st9 hrs $ O2DM of &DDM

    o '#cess of 9 hrs $ O2DM of hourly rate on said day

    2. pecial Da)s

    Bnworked no pay unless there is a favorable company policy, practice or C3! granting payment of wages on

    special days even if unworked.

    +orked

    o st9 hrs $ O2DM of the daily rate of DDM

    o '#cess of 9 hrs $ O2DM of hourly rate on said day

    =alling on employees rest day and if worked

    o st9 hrs $ O>DM of the daily rate of DDM

    o '#cess of 9 hrs $ O2DM of hourly rate on said day

    . pecial 8orkin! Eolida)s only basic rate

    Art. 0=. 3i!ht to ser(ice incenti(e lea(e.

    2ery employee +%o %as rendered at least one year of serice s%all be entitled to a yearly serice incentie leae of fie days +it%

    pay.

    6his provision s%all not apply tothose who are already enjoying the benefit herein provided, t%ose enoying acation leae +it% pay

    of at least fie days and t%ose employed in establis%ments reg'larly employing less t%an ten employees or in establis%ments

    e6empted from granting t%is benefit by t%e ecretary of *abor and 2mployment after considering the viability or financial condition

    of such establishment.

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    6he grant of benefit in e#cess of that provided herein shall not be made a subject of arbitration or any court or administrative action.

    (ervice ncentive Leave 4(L5 is commutable to its money e"uivalent if not used or e#hausted at the end of the year.

    At least ! year serice service for not less than & months, whether continuous or broken reckoned from the date the employee

    started working.

    ?mplo)ees Not Co(ered b) :L

    1. government employees1

    2. managerial employees1

    3. field personnel and other employees whose time and performance is unsupervised by the employer1

    4. domestic helpers, and persons in the personal service of another1

    5. those who are already enjoying the benefit herein provided1

    6. those enjoying vacation leave with pay of at least five 4>5 days1

    7. those employed in establishments regularly employing less than ten 4D5 employees1 and,

    8.those e#empted by the (ecretary of Labor.

    Art. 0,. er(ice char!es.

    !ll service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of eighty$five percen

    49>M5 for all covered employees and fifteen percent 4>M5 for management. 6he share of the employees shall be e"ually distributed

    among them. n case the service charge is abolished, the share of the covered employees shall be considered integrated in their wages.

    er(ice Char!es apply only to establishments collecting service charges such as hotels, restaurants, lodging houses, nightclubs

    cocktail lounge, massage clinics, bars, casinos and gambling houses, and similar enterprises, including those entities operating

    primarily as private subsidiaries of the *overnment.

    2mployees coered all employees of employers are covered, regardless of their positions, designations or employment status, and

    irrespective of the method by which their wages are paid e6ceptto managerial employees.

    Distrib&tion

    9>M distributed e"ually among the covered employees.

    >M for the disposition by management to answer losses and breakages and distribution to managerial employees at the

    discretion of the management in the latter case.

    -istributed and paid to the employees not less than once every & weeks or twice a month at intervals not e#ceeding ? days.

    (upervisors share in the >M. 6he Labor Code speaks of management,% not managerial employees.%

    @acation Lea(e G ick Lea(e not re"uired by law and depends on voluntary employer policy or collective bargaining.

    olo Parent Lea(e a parental leave of not more than : working days every years shall be granted to any solo parent employee who

    has rendered service of at least one 45 year.

    (olo parent woman who gives birth as a result of rape or crimes against chastity, a widow or widower, a spouse separated

    legally or de facto for at least one year and so forth. 6he claimant must show that heEshe is left alone with the responsibility

    of parenthood.

    Lea(e 9nder 3A 02,2 +Anti$@iolence A!ainst 8omen and their Children Act of 24- allows the victim of violence, which may

    be physical, se#ual, or psychological, to apply for the issuance of a protection order. f suchvictim is an employee, she is entitled to a

    paid leave of up to D days in addition to other paid leaves under the Labor Code, other laws and company policies.

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    6he employee has to submit a certification from the Punong 3arangay or Nagawad, or prosecutor or clerk of court that an

    action under 0! 8&?& has been filed and is pending.

    Paternit) Lea(e Act of 100, +3.A. No. ;;1;-

    t grants seven days of paternity leave with full pay to married male employees in the private and public sectors. 6he conditions fo

    entitlement are;

    4a5 the claimant, married male employee is employed at the time of delivery of his child1

    4b5 he is cohabiting with his wife at the time she gives birth or suffers a miscarriage1

    4c5 he has applied for paternity leave in accordance with (ec. / of the lawAs implementing rules1

    4d5 his wife has given birth or suffered a miscarriage.

    n the 0evised mplementing 0ules issued by -

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    >inim'm amo'nt $ the minimum 2thmonth pay re"uired by law shall not be less than E& of the total basic salary earned by an

    employee within a calendar year.

    7asic alar) $ for the purpose of computing the 2thmonth pay shall include all remuneration or earning paid by his employer for

    services rendered but does not include allowances and monetary benefits which are considered or integrated as part of the regular or

    basic salary, such as the cash e"uivalent of unused vacation and sick leave credits, overtime premium, night differential and holidaypay, and cost of living allowances.

    1th$month Pa) for Certain T)pes of ?mplo)ees

    a. 2mployees paid by res'lts entitled to the mandated 2th$month pay based on their total earnings during the calendar year.

    b. %ose +it% m'ltiple employer entitled to the re"uired 2thmonth pay from all their private employers regardless of their

    total earnings from each or all of their employers.

    c. Priate sc%ool teac%ers entitled to the re"uired 2 thmonth pay if they have rendered service for at least one 45 month

    within a year.

    1th$month Pa) of resi!ned or eparated ?mplo)ee

    (uch resigned or separated employee is entitled of the amount e"uivalent to E& of his total basic salary earned during such year

    when he was still working with his employer.

    Consistent with the principle of e"uity, the employer can also re"uire the employee to demand the employee to clear himself of all the

    liabilities and accountabilities upon the termination of the relationship.

    Title ::

    8A?

    Chapter :

    P3?L::NA3 ATT?3

    Art. 0. Definitions.

    !s used in this 6itle;

    Person means an individual, partnership, association, corporation, business trust, legal representatives, or any organi)ed group of

    persons.

    ?mplo)er includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shalinclude the government and all its branches, subdivisions and instrumentalities, all government$owned or controlled corporations and

    institutions, as well as non$profit private institutions, or organi)ations.

    ?mplo)ee includes any individual employed by an employer.

    ?mplo) includes to suffer or permit to work.

    8a!e paid to any employee shall mean the rem'neration or earnings, however designated, capable of being e6pressed in terms of

    money, +%et%er fi6ed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is

    payable by an employerto an employee 'nder a +ritten or 'n+ritten contract of employment for work done or to be done, or for

    services rendered or to be rendered and incl'des t%e fair and reasonable al'e, as determined by the (ecretary of Labor and

    'mployment, ofboard, lodging, or otherfacilities c'stomarily f'rnis%ed by t%e employer to t%e employee.

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    8a!e :ncl&des Bacilities or Commodities +Art. 0 +f-

    Bacilities include articles or services 4such as board and lodging5 for the benefit of the employee or his family 400 of the Labor

    Code5.

    Bacilities as Distin!&ished from &pplements

    &pplement when the benefit or privilege given to the employee constitute an e#tra remuneration over and above his basic or

    ordinary earning or wage. t is not wage deductible.

    3e5&irements for facilities to be wa!e$ded&ctible

    4a5 Proof must be shown that such facilities are customarily furnished by the trade1

    4b5 Provision of deductible facilities must be voluntarily accepted in writing by the employee1 and,

    4c5 facilities must be charged at fair and reasonable value as determined by the (ecretary of Labor and 'mployment.

    Art. 0;. Application of Title.

    6his 6itle shall not apply tofarm tenancyor leasehold, domestic sericeand persons working in their respective %omes in needle

    +or or in any cottage ind'stryduly registered in accordance with law.

    6he intention of this article is to e#clude small businesses that probably cannot afford to pay the wage rates set by law.

    Chapter ::

    :N:9 8A? 3AT?

    Art. 00. 3e!ional minim&m wa!es.

    6he minim'm +age rates for agric'lt'ral and non-agric'lt'ral employeesand workers in each and every region of the country s%albe t%ose prescribed by t%e Regional ripartite =ages and Prod'ctiity oards. 4!s amended by (ection 2, 0epublic !ct o. ?:&:

    7une 8, 8985.

    8ho sets minim&m wa!eK

    o 0egional 6ripartite +ages and Productivity 3oard

    o Congress

    inim&m wa!e the lowest wage rate fi#ed by law that an employer can pay his employees.

    Complaint may be brought before the -

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    employer because the benefit has become part of the employment contract, written or unwritten.

    ?*ceptions#

    4a5 if the practice is due to error 4but it must be done soon after the discovery of the error51

    4b5 the benefit being claimed is a contingent or conditional benefit

    Art. 11. Pa)ment b) res&lts.

    6he (ecretary of Labor and 'mployment shall regulate the payment of wages by results, including pakyao, piecework, and other non$

    time work, in order to ensure the payment of fair and reasonable wage rates, preferably through time and motion studies or in

    consultation with representatives of workers and employers organi)ations.

    Piece$rate workers ma) be s&bdi(ided into two cate!ories

    4a5 those who are paid piece rates which are prescribed in Piece 0ate 5 days with pay

    4c5 night shift differential pay

    4d5 holiday pay4e5 meal and rest periods

    4f5 overtime pay 4conditional5

    4g5 premium pay

    4h5 2thmonth pay4i5 other benefits granted by law, individual or collective agreement or company policy or practice.

    Chapter :::

    PA?NT >B 8A?

    Art. 12. Borms of pa)ment.

    No employer s%all pay t%e +agesof an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or anyobect ot%er t%an legal tender, een +%en e6pressly re/'ested by t%e employee.

    Payment of +ages by c%ec or money order s%all be allo+ed+%ensuch manner of payment is c'stomaryon the date of effectivity of

    this Code, or is necessarybecause of special circumstances as specified in appropriate regulations to be issued by the (ecretary of

    Labor and 'mployment or as stipulated in a collective bargaining agreement.

    Art. 1. Time of pa)ment.

    eneral 3&le# =ages s%all be paid at least once eery t+o (8) +ees or t+ice a mont% at interals not e6ceeding si6teen (!) days.

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    ?*ception# 1f on acco'nt of force mae're or circ'mstances beyond t%e employerFs controlpayment of wages on or within the time

    herein provided cannot be made

    6he employer shallpay t%e +ages immediately after s'c% force mae're or circ'mstances %ae ceased.o employer shal

    make payment with less fre"uency than once a month.

    6he pa)ment of wa!es of employees engaged to perform a task which cannot be completed in two +2- weeks shall be s&b'ect to

    the followin! conditions, in the absence of a collective bargaining agreement or arbitration award;

    4a5 6hat payments are made at intervals not e#ceeding si#teen 4?5 days, in proportion to the amount of work completed1

    4b5 6hat final settlement is made upon completion of the work.

    6he 00 of the Code re"uires every employer to pay his employees through payroll. 6hey payroll should clearly, among other data

    the employeeAs pay rate, the deductions made, and the amount actually paid.

    !lso re"uired are employeesA individual time records.

    Art. 14. Place of pa)ment.

    eneral 3&le# Payment of +ages s%all be made at or near t%e place of 'ndertaing

    ?*ception#As ot%er+ise proided by s'c% reg'lations as t%e ecretary of *abor and 2mployment may prescribe under conditionsto ensure greater protection of wages.

    Art. 1=. Direct pa)ment of wa!es.

    eneral 3&le# =ages s%all be paid directly to t%e +orers to +%om t%ey are d'e.

    ?*ceptions#

    1n cases of force mae're rendering such payment impossible or

    'nder ot%er special circ'mstances to be determined by t%e ecretary of *abor and 2mployment in appropriate

    reg'lations, in which case, the worker may be paid through another person under written authority given by the worker forthe purpose1 or

    =%ere t%e +orer %as died,in which case, t%e employer may pay t%e +ages of t%e deceased +orer to t%e %eirs of t%e latterwithout the necessity of intestate proceedings. 6he claimants, if they are all of age, shall e#ecute an affidavit attesting to their

    relationship to the deceased and the fact that they are his heirs, to the e#clusion of all other persons. f any of the heirs is a

    minor, the affidavit shall be e#ecuted on his behalf by his natural guardian or ne#t$of$kin. 6he affidavit shall be presented to

    the employer who shall make payment through the (ecretary of Labor and 'mployment or his representative. 6he

    representative of the (ecretary of Labor and 'mployment shall act as referee in dividing the amount paid among the heirs

    6he payment of wages under this !rticle shall absolve the employer of any further liability with respect to the amount paid.

    Art. 1,. Contractor or s&bcontractor.

    +henever an employer enters into a contract with another person for the performance of the formers work, the employees of thecontractor and of the latters subcontractor, if any, shall be paid in accordance with the provisions of this Code.

    :n the e(ent that the contractor or s&bcontractor fails to pa) the wa!es of his emplo)ees in accordance with this Code#

    the emplo)er shall be 'ointl) and se(erall) liable with his contractor or s&bcontractor to s&ch emplo)ees$$$

    to t%e e6tent of the work performed &nder the contract, in the

    same manner and e6tent that he is liable to emplo)ees directl) emplo)ed b) him.

    The ecretar) of Labor and ?mplo)ment may, by appropriate regulations,restrict or pro%ibit t%e contracting-o't of labor to

    protect t%e rig%ts of +orers established under this Code. n so prohibiting or restricting, he may mae appropriate distinctions

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    bet+een +a- labor$onl) contractin! and +b- 'ob contractin! as well as differentiations within t%ese types of contracting and

    determine who among the parties involved shall be considered the employer for purposes of this Code, to prevent any violation or

    circumvention of any provision of this Code.

    T)pes of Contractin!$o&t of Labor

    4a5 Labor$only contracting 4 which is prohibited under -< o. 9$D&5

    4b5 7ob Contracting 4which is permissible under -

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    %ey are circ'mentie and e6ploitatie sc%emes.

    Art. 1. :ndirect emplo)er.

    6he provisions of the immediately preceding article shall likewise apply to any person, partners%ip, association or corporation

    +%ic%, not being an employer, contracts +it% an independent contractor for t%e performance of any +or, tas, ob or proect.

    Art. 1;. Postin! of bond.

    An employer or indirect employer may re/'ire t%e contractor or s'bcontractor to f'rnis% a bond e/'al to t%e cost of labor 'nder

    contract,on condition that the bond will answer for the wages due the employees should the contractor or subcontractor, as the case

    may be, fail to pay the same.

    Art. 10. olidar) liabilit).

    6he provisions of e#isting laws to the contrary notwithstanding, eery employer or indirect employer s%all be %eld responsible +it%

    %is contractor or s'bcontractor for any iolation of any proision of t%is &ode. =or purposes of determining the e#tent of their civi

    liability under this Chapter, they shall be considered as direct employers.

    f the liability is in the nature of penalty, such as backwages and separation pay because of a wrongful dismissal, the liability should besolely that of the contractor if there is no proof that the principal conspired with the contractor in committing the wrongful dismissal o

    the contractorAs worker.

    Art. 11. 8orker preference in case of bankr&ptc).

    1n t%e eent of banr'ptcy or li/'idation of an employerFs b'siness, %is +orers s%all enoy first preference as regards t%eir +ages

    and ot%er monetary claims,any provisions of law to the contrary notwithstanding. (uch unpaid wages and monetary claims shall be

    paid in f'll before claims of t%e goernment and ot%er creditors may be paid. 4!s amended by (ection , 0epublic !ct o. ?:>@arch &, 8985

    Li5&idation is what happens when a corporation terminates its corporate e#istence; it settles and closes its affairs by disposing of its

    assets and paying off its debts, including claims of its employees.

    Art. 111. Attorne)Ms fees.

    1n cases of 'nla+f'l +it%%olding of +ages, t%e c'lpable party may be assessed attorneyFs fees e/'ialent to ten percent of t%e

    amo'nt of +ages recoered.

    t shall be 'nla+f'l for any person to demandor accept, in any judicial or administrative proceedings for the recovery of wages

    attorneyFs fees +%ic% e6ceed ten percent of t%e amo'nt of +ages recoered.

    Chapter :@

    P3>E:7:T:>N 3?A3D:N 8A?

    Art. 112. Non$interference in disposal of wa!es.

    No employer s%all limit or ot%er+ise interfere +it% t%e freedom of any employee to dispose of %is +ages.Fe shall not in any manner

    force, compel, or oblige his employees to purchase merchandise, commodities or other property from any other person, or otherwise

    make use of any store or services of such employer or any other person.

    Art. 11. 8a!e ded&ction.

    eneral 3&le# No employer, in his own behalf or in behalf of any person, s%all mae any ded'ction from t%e +ages of %is

    employees.

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    ?*ceptions#

    4a5 n cases +%ere t%e +orer is ins'red +it% %is consentby the employer, and t%e ded'ction is to recompense t%e employer

    for t%e amo'nt paid by %im as premium on the insurance1

    4b5 4or 'nion d'es, in cases where the right of the worker or his union to check$off has been recogni)ed by the employer orauthori)ed in writing by the individual worker concerned1 and

    4c5 n cases +%ere t%e employer is a't%ori3ed by la+ or reg'lations issued by the (ecretary of Labor and 'mployment.

    Additional to the A&thori6ed Ded&ctions

    4a5 n cases where the employee is indebted to the employer, where such indebtedness has become due and demandable1

    4b5 n court awards, wages may be subject of e#ecution or attachment, but only for debts incurred for food, shelter, clothing, and

    medical attendance1

    4c5 +ithholding ta#1

    4d5 (alary deductions of a member of a legally established cooperative1

    4e5 -eductions for payment to third persons, upon written authori)ation of the employee1

    4f5 Bnion dues1

    4g5 !gency fee1

    4h5 -eductions for value of meal and other facilities1

    4i5 -eductions for loss or damage1

    4j5 (((, @edicare, Pag3* premiums.

    Bnder the circumstance of employeeAs payment obligation to a third person, the employer may agree to make deduction but is not

    obliged to do so. Fe must not receive any pecuniary benefit, directly or indirectly, from the transaction.

    Art. 114. Deposits for loss or dama!e.

    eneral 3&le# o employer shall re"uire his worker to make deposits from which deductions shall be made for the reimbursement of

    loss of or damage to tools, materials, or e"uipment supplied by the employer.

    ?*ceptions# =%en t%e employer is engaged in such trades, occupations or b'siness +%ere t%e practice of maing ded'ctions or

    re/'iring deposits is a recogni3ed one, or is necessary or desirable as determined by t%e ecretary of *abor and 2mployment in

    appropriate r'les and reg'lations.

    Art. 11=. Limitations.

    No ded'ction from t%e deposits of an employee for t%e act'al amo'nt of t%e loss or damage s%all be made 'nless t%e employee %asbeen %eard t%ereon, and %is responsibility %as been clearly s%o+n.

    Bo&r Conditions to et 7efore Pa)ments for Lost or Dama!ed ?5&ipment a) 7e Ded&cted

    4a5 the employee is shown to be responsible for the loss or damage1

    4b5 the employee is given ample opportunity to show cause why deduction should not be made1

    4c5 the amount of the deduction is fair and reasonable and shall not e#ceed the actual loss or damage1 and,

    4d5 the deduction from the employeeAs wage does not e#ceed &DM of the employeeAs wages in a week.

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