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Labor I: Labor Standards& Welfare Teacher: Atty. Filemon Ray Javier Rodriguez MemAid Step 1: Is there an employer-employee relationship? Use the 4-Fold Test: a. Right to hire or to the selection and engagement of the employee. b. Payment of wages and salaries for services c. Power of dismissal or the power to impose disciplinary actions. d. Power to control the employee with respect to the means and methods by which the work is to be accomplished. This is known as the right- of-control test. Or when applicable, use the two-tiered Test: a. power to control b. economic reality/economic dependency Consider the existing economic conditions prevailing between the parties, in addition to the standard of right-of-control like the inclusion of the employee in the payrolls, to give a clearer picture in determining the existence of an employer-employee relationship based on an analysis of the totality of economic circumstances of the worker. Thus, the determination of the relationship between employer and employee depends upon the circumstances of the whole economic activity, such as: (1) the extent to which the services performed are an integral part of the employers business; (2) the extent of the workers investment in equipment and facilities; (3) the nature and degree of control exercised by the employer; (4) the workers opportunity for profit and loss; (5) the amount of initiative, skill, judgment or foresight required for the success of the claimed independent enterprise; (6) the permanency and duration of the relationship between the worker and the employer; and (7) the degree of dependency of the worker upon the employer for his continued employment in that line of business. The proper standard of economic dependence is whether the worker is dependent on the alleged employer for his continued employment in that line of business. In the United States, the touchstone of economic reality in analyzing possible employment relationships for purposes of the Federal Labor Standards Act is dependency. [25] By analogy, the benchmark of economic reality in analyzing possible employment relationships for purposes of the Labor Code ought to be the economic dependence of the worker on his employer. Step 2: What kind employee is the person? REGULAR EMPLOYEE a. where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer (regular employee by nature of work)or; b. casual employee who has rendered at least one year of service , whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists(regular employee by years of service) o 1 year = 365 days (whether continuous or broken) 1

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Labor I: Labor Standards& WelfareTeacher: Atty. Filemon Ray JavierRodriguez MemAid

Step 1: Is there an employer-employee relationship?Use the 4-Fold Test:

a. Right to hire or to the selection and engagement of the employee.

b. Payment of wages and salaries for servicesc. Power of dismissal or the power to impose disciplinary actions.d. Power to control the employee with respect to the means and

methods by which the work is to be accomplished. This is known as the right-of-control test.

Or when applicable, use the two-tiered Test:

a. power to controlb. economic reality/economic dependency

Consider the existing economic conditions prevailing between the parties, in addition to the standard of right-of-control like the inclusion of the employee in the payrolls, to give a clearer picture in determining the existence of an employer-employee relationship based on an analysis of the totality of economic circumstances of the worker.

Thus, the determination of the relationship between employer and employee depends upon the circumstances of the whole economic activity, such as: (1) the extent to which the services performed are an integral part of the employers business; (2) the extent of the workers investment in equipment and facilities; (3) the nature and degree of control exercised by the employer; (4) the workers opportunity for profit and loss; (5) the amount of initiative, skill, judgment or foresight required for the success of the claimed independent enterprise; (6) the permanency and duration of the relationship between the worker and the employer; and (7) the degree of dependency of the worker upon the employer for his continued employment in that line of business.

 The proper standard of economic dependence is whether the worker is dependent on the alleged employer for his continued employment in that line of business. In the United States, the touchstone of economic reality in analyzing possible employment relationships for purposes of the Federal Labor Standards Act is dependency.[25] By analogy, the benchmark of economic reality in analyzing possible employment

relationships for purposes of the Labor Code ought to be the economic dependence of the worker on his employer.Step 2: What kind employee is the person?

REGULAR EMPLOYEEa. where the employee has been engaged to perform activities

which are usually necessary or desirable in the usual business or trade of the employer (regular employee by nature of work)or;

b. casual employee who has rendered at least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists(regular employee by years of service)

o 1 year = 365 days (whether continuous or broken)o When one is deemed as a “casual regular” then the

employer CANNOT get another casual worker to do your job

CASUAL EMPLOYEE performs work which is incidental to the usual business or trade of the employerNote: In determining w/n the activity perform is usually necessary or desirable in the usual trade or business of the employer sometimes you really need to rely on gut feel.

PROJECT EMPLOYEEto assert that one is a project employee and not a regular employee, identify:

a. SPECIFIC: designation of a specific project or undertaking for which the employee is hired; and

b. DURATION: clear determination of the completion or termination of the project AT THE TIME of the employee’s engagement.

o The services of the project employees are legally and automatically terminated upon the end or completion of the project as the employee’s services are coterminous with the project.

o Even if there has been consistent rehiring for 10 years, or even if the duration of the project is more than one year, as long as there is an identifiable and different project each and every time (e.g. construction workers), then such employee will not be considered a regular employee.

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o Also, the project employee may be performing work which is usually necessary or desirable in the usual business or trade of the employer.

BUT note that GMA Network v Pabriaga tells us that: “A project employee or a member of a work pool MAY acquire the status of a regular employee when the following concur:

a. There is a continuous rehiring of project employees even after cessation of a project; and

b. The tasks performed by the alleged project employee are vital, necessary and indispensable to the usual business or trade of the employer.

Definition in Art. 280: where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined AT THE TIME OF ENGAGEMENT of the employee

SEASONAL EMPLOYEE

a. SEASONAL: Where the work or service to be performed is seasonal in nature

b. SEASON: And the employment is for the duration of the season

o REGULAR SEASON WORKERS: Those seasonal workers who, even during the off-season period, are not separated from the service but are simply considered on leave until they are re-employed.

FIXED-TERM EMPLOYEE For there to be a Valid Fixed Term Employment Contract (in order that it cannot be said to circumvent security of tenure):

a. KNOWINGLY & VOLUNTARILY: (Intelligently & willingly)that the fixed period of employment was knowingly and voluntarily agreed upon by the parties, without any force, duress or improper pressure being brought to bear upon the employee and absent any other circumstances vitiating his consent; OR

b. EQUAL FOOTING: it satisfactorily appears that the employer and employee dealt with each other on more or less equal

terms with no moral dominance whatever being exercised by the former on the latter.

c. That there was in fact a “fixed term” (implied)d. Additional: Was it entered into for the circumvention of the

security of tenure of employees? If yes, then it is not valid.

o PROJECT EMPLOYMENT vs FIXED TERM EMPLOYMENT: While the former requires a project as restrictively defined, the duration of a fixed-term employment agreed upon by the parties may be any day certain, which is understood to be "that which must necessarily come although it may not be known when." The decisive determinant in fixed-term employment is not the activity that the employee is called upon to perform but the day certain agreed upon by the parties for the commencement and termination of the employment relationship

PROBATIONARY6 months = 180 daysHe must be informed at the time of engagementof the reasonable standard to be observed and that he is only a probationary employee.

Why? For termination purposes (before the 6-month period) or for non-absorption into the regular workforce.

If employer doesn’t do this, probationary employee is deemed to be a regular employee from Day 1.

A probationary employee may be terminated by:

a. just causesb. failure to meet standards of employment

Note: The probationary employee is not entitled to the 6-month period. The employer may fire him even before such period ends as long as he was informed of the standards to be observed at the time of engagement and that the probationary employee DID NOT meet such standard. And how do we construe “at the time” of engagement? Upon signing the contract? Or upon Day 1 of being on the job? FLJ believes that being informed on Day 1 is sufficient.

General Rule: If he works beyond 180 days, he will be automatically be considered as a regular employee on Day 181.Exception:

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a. When the job is technical in nature (w/n there is an apprenticeship program)

b. When, as an act of compassion, the parties decide to extend the 180 day period so that the probationary employee may prove that his is fit for the job.

Guaranteed Basic Rights of Workers under the Constitution: WHOSE-CD

right to a living Wage right to work under Humane conditions right to Organize thesmelves right to enjoy Security of tenure right to Engage in peaceful concerted activities right to Conduct collective bargaining or negotiation with

management

right to participate in policy and Decision-making processes affecting their rights and benefits as may be provided by law

Recruitment and placement - refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, whether for profit or not: Provided, That any person or entity which, in any manner, offers or promises for a fee, employment to two or more persons shall be deemed engaged in recruitment and placement.

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General Rule Direct hiring of Filipino workers by a foreign employer is not allowed

EXCEPTIONS Authorized Entities

The following entities, as summarized by Azucena, are authorized to recruit and place workers for local or overseas employment.Authorized Entities: PPPP-CADS» P ublic employment office» P rivate recruitment entities» P rivate employment agencies» P OEA» C onstruction contractors if authorized to operate by DOLE and the

Construction Industry Authority» other persons or entities As may be authorized by the DOLE

Secretary» members of the Diplomatic corps although hirings done by them

have to be processed through the POEA» S hipping or manning agents or representatives

Selective Deployment The gov’t recognizes any of the following as a guarantee of the receiving country for the protection of verseas Filipino workers:

a) it has existing labor or social laws protecting the rights of workers, including migrant workers

b) it is a signatory to and/or ratifer of multilateral conventions, declarations or resolutions relation to the protection of workers, including migrant workers; and

c) it has concluded a bilateral agreement or arrganement with the government on the protection of the rights of OFW’s

Provided, that the receiving country is taking positive, concrete measures to protect the rights of migrant workers in furtherance of any of the guarantees under subparagraphs (a), (b), & (c) hereof.If the aforementioned guarantees do not exist in the country of destination, then no permit for deployment shall be issued by the POEA.

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Grounds for Disciplinary Action of Overseas Employee: STDDD – PERVV – FUGG

a) Initiating or joining a Strike or work stoppage where the laws of the hose country prohibit strikes or similar actions;

b) Creating Trouble at the worksite or in the vessel;c) D rug addiction or possession or trafficking of prohibited drugs;d) D esertion or abandonment;e) D runkenness, esp. where the laws of the host country prohibit

intoxicating rinks;f) P rostitution;g) E mbezzlement of company funds of moneys and properties of

a fellow worker entrusted for delivery to kins or relatives in the Philippines;

h) R obbery or theft;i) V iolation/s of the laws and sacred practices of the host country

and unjustified breach of gov’t-approved employment contract by a worker

j) V andalism or destroying company property;k) Commission of a Felony punishable by Philippline laws or by

the laws of the host countryl) U njust refusal to depart for the worksite after all employment

and travel documents have been duly approved by the appropriate gov’t agency/ies; and

m) G ambling, esp. where the laws of the host country prohibit the same;

n) G unrunning or possession of deadly weapons;

Labor CodeRegulation of Recruitment and Placement ActivitiesArt. 34. Prohibited practices. It shall be unlawful for any individual, entity, licensee, or holder of authority:

IRR for RA 8042 (as amended by RA 10022)RULE IV: ILLEGAL RECRUITMENTSection 1. Definition.For purposes of the Act, illegal recruitment shall mean any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract services, promising or advertising for employment abroad, whether for profit or not, when undertaken by a non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential Decree

No. 442, as amended, otherwise known as the Labor Code of the Philippines:

Provided, that any such non-licensee 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. It shall likewise include the following acts, whether committed by any person, whether a non-licensee, nonholder, licensee or holder of authority:

1.2. (a) To charge or accept,

directly or indirectly, any amount greater than that

(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of

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specified in the schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any amount greater than that actually received by him as a loan or advance;

allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay or acknowledge any amount greater than that actually received by him as a loan or advance;

3. (b) To furnish or publish any false notice or information or document in relation to recruitment or employment;

(b) To furnish or publish any false notice or information or document in relation to recruitment or employment;

4. (c) To give any false notice, testimony, information or document or commit any act of misrepresentation for the purpose of securing a license or authority under this Code.

5.

(c) To give any false notice, testimony, information or document or commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code, or for the purpose of documenting hired workers with the POEA, which include the act of reprocessing workers through a job order that pertains to non-existent work, work different from the actual overseas work, or work with a different employer whether registered or not with the POEA;

6. (d) To induce or attempt to induce a worker already employed to quit his employment in order to offer him to another unless the transfer is designed to liberate the worker from oppressive terms and conditions of employment;

(d) To induce or attempt to induce a worker already employed to quit his employment in order to offer him another unless the transfer is designed to liberate a worker from oppressive terms and conditions of employment;

7. (e) To influence or to attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency;

8.

(e) To influence or attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency or who has formed, joined or supported, or has contacted or is supported by any

union or workers’ organization; 9. (f) To engage in the

recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines;

(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines;

10. (g)To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized representatives;

11.

(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment or by his duly authorized representative;

12. (h) To fail to file reports on the status of employment, placement vacancies, remittance of foreign exchange earnings, separation from jobs, departures and such other matters or information as may be required by the Secretary of Labor.

13.

(h) To fail to submit reports on the status of employment, placement vacancies, remittance of foreign exchange earnings, separation from jobs, departures and such other matters or information as may be required by the Secretary of Labor and Employment;

14. (i) To substitute or alter employment contracts approved and verified by the Department of Labor from the time of actual signing thereof by the parties up to and including the periods of expiration of the same without the approval of the Secretary of Labor;

15.

(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the period of the expiration of the same without the approval of the Department of Labor and Employment;

16. (j) To become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of a travel agency; and

17.

(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of a travel agency;

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18. (k)To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations other than those authorized under this Code and its implementing rules and regulations.

19.

(k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations, or for any other reasons, other than those authorized under the Labor Code and its implementing Rules and Regulations;

20. (l) Failure to actually deploy a contracted worker without valid reason as determined by the Department of Labor and Employment;

21. (m) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment, in cases where the deployment does not actually take place without the worker's fault; and

22. (n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.

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IRR for RA 8042 (as amended by RA 10022)RULE IV: ILLEGAL RECRUITMENT

Sec. 3. Other Prohibited Acts.

In addition to the acts enumerated above, it shall also be unlawful for any person or entity to commit the following prohibited acts:

a. Grant a loan to an OFW with interest exceeding eight (8%) percent per annum, which will be used for payment of legal and allowable placement fees and make the migrant worker issue, either personally or through a guarantor or accommodation party, postdated checks in relation to the said loan;

b. Impose a compulsory and exclusive arrangement whereby an OFW is required to avail of a loan only from specifically designated institutions, entities, or persons;

c. Refuse to condone or renegotiate a loan incurred by an OFW after the latter’s employment contract has been prematurely terminated through no fault of his/her own;

d. Impose a compulsory and exclusive arrangement whereby an OFW is required to undergo health examinations only from specifically designated medical clinics, institutions, entities or persons, except in the case of a seafarer whose medical examination cost is shouldered by the principal/shipowner;

e. Impose a compulsory and exclusive arrangement whereby an OFW is required to undergo training, seminar, instruction or schooling of any kind only from specifically designated institutions, entities or persons, except for recommendatory training mandated by principals/shipowners where the latter shoulder the cost of such trainings;

f. For a suspended recruitment/manning agency to engage in any kind of recruitment activity including the processing of pending workers’ applications;

g. For a recruitment/manning agency or a foreign principal/employer to pass-on to the OFW or deduct from his/her salary the payment of the

cost of insurance fees, premium or other insurance related charges, as provided under the compulsory worker’s insurance coverage.

Sec. 2. Crime Involving Economic Sabotage.Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring or confederating with one another.

It is deemed committed in large scale if committed against three (3) or more persons individually or as a group.

Sec. 4. Persons Responsible. The persons criminally liable for the above offenses are the principals, accomplices and accessories. In case of juridical persons, the officers having ownership, control, management or direction of their business who are responsible for the commission of the offense and the responsible employees/agents thereof shall be liable.

Sec. 5. Penalties.(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less than twelve (12) years and one (1) day but not more than twenty (20) years and a fine of not less than One Million Pesos (Php1,000,000.00) nor more than Two Million Pesos (Php2,000,000.00)

(b) The penalty of life imprisonment and a fine of not less than Two Million Pesos (Php2,000,000.00) nor more than Five Million Pesos (Php5,000,000.00) shall be imposed if illegal recruitment constitutes economic sabotage as defined therein.

Provided, however, that the maximum penalty shall be imposed if the person illegally recruited is less than eighteen (18) years of age or committed by a non-licensee or non-holder of authority.

(c) Any person found guilty of any of the prohibited acts shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day but not more than twelve (12) years and a fine of not less than Five Hundred Thousand Pesos (Php500,000.00) nor more than One Million Pesos (Php1,000,000.00).

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If the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be deported without further proceedings.

In every case, conviction shall cause and carry the automatic revocation of the license or registration of the recruitment/manning agency, lending institutions, training school or medical clinic.Sec. 6. Venue.A criminal action arising from illegal recruitment as defined under this Rule shall be filed with the Regional Trial Court of the province or city where the offense was committed or where the offended party actually resides at the time of the commission of the offense; Provided, that the court where the criminal action is first filed shall acquire jurisdiction to the exclusion of other courts.

Sec. 7. Prescription.Illegal recruitment cases under this Rule shall prescribe in five (5) years: Provided, however, that illegal recruitment cases involving economic sabotage shall prescribe in twenty (20) years.

Sec. 8. Independent Action. The filing of an offense punishable under this section shall be without prejudice to the filing of cases punishable under other existing laws, rules or regulations.

Labor CodeRegulation of Recruitment and Placement Activities

Article 26: Travel Agencies Prohibited to Recruit Travel agencies and sales agencies of airline companies are

prohibited from engaging in the business of recruitment and placement of workers for overseas employment whether for profit or not.

Persons with derogatory records such as those convicted for illegal recruitment or other crimes involving moral turpitude are also disqualified

Officials or employees of DOLE, POEA, OWWA, DRA and other gov’t agencies directly involved in the implementation of RA 8041 or any of their relatives within the 4th civil degree are likewise prohibited.

RULE V: PROHIBITION OF GOVERNMENT PERSONNELSection 1. Disqualification. The following personnel shall be prohibited from engaging directly or indirectly in the business of recruitment of migrant workers:

(a) Any official or employee of the DOLE, POEA, OWWA, DFA, DOJ, DOH, BI, IC, NLRC, TESDA, CFO, NBI, Philippine National Police (PNP), Manila International Airport Authority (MIAA), Civil Aviation Authority of the Philippines (CAAP), and other government agencies involved in the implementation of the Act, regardless of the status of his/her employment; and

(b) Any of his/her relatives within the fourth civil degree of consanguinity or affinity.

Any government official or employee found to be violating this section shall be charged administratively, according to Civil Service Rules and Regulations without prejudice to criminal prosecution.

…(c) For an officer or agent of a recruitment or placement agency to become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of a travel agency (see Rule IV, Section 1, paragraph (j),as cited above)

…(d) non-Filipino citizen to head or manage a licensed recruitment/manning agency (see Rule IV, Section 1, paragraph (n), as cited above)

DO 75-06: Revised Rules for the Issuance of Employment Permits to Foreign Nationals

General Rule: All foreign nationals who intend to engage in gainful employment in the Philippines shall apply for Alien Employment Permit (AEP).

Exemption:The following categories of foreign nationals are exempt from securing an employment permitDIME-ROT

2.1 All members of the Diplomatic service and foreign government officials accredited by and with reciprocity arrangement with the

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Philippine government;

2.2 Officers and staff of International organizations of which the Philippine government is a member, and their legitimate spouses desiring to work in the Philippines;

2.3 Foreign nationals elected as Members of the Governing Board who do not occupy any other position, but have only voting rights in the corporation;

2.4 All foreign nationals granted Exemption by law;

2.7 Resident Foreign nationals(instead, get an Alien Employment Resident Certificate or AERC)

2.5 Owners and representatives of foreign principals whose companies are accredited by the Philippine Overseas Employmet Administration (POEA) who come to the Philippines for a limited period and solely for the purpose of interviewing Filipino applicants for employment abroad;

2.6 Foreign nationals who come to the Philippines to Teach, present and/or conduct research studies in universities and colleges as visiting, exchange or adjunct professors under formal agreements between the universities or colleges in the Philippines and foreign universities or colleges; or between the Philippine government and foreign government; provided that the exemption is on a reciprocal basis;

General Rule: Foreigners may not be employed in certain “nationalized” business.-Public Utility at least 60% of capital is owned by Filipinos-Natural Resources at least 60% of capital is owned by Filipinos-Financing Companies at least 60% of capital is owned by Filipinos-Mass Media Enterprises must be owned/managed wholly by Filipinos

Exceptions:(a) where the Secretary of Justice specifically authorizes the employment of foreign technical personel, or -Why to the SOJ? In order to safeguard prosecution from the Anti-Dummy Test

(b) where the aliens are elected members of the board of directors or governing body of corporations or associations in proportion to their allowable participation in the capital of such entities

(c) enterprises registered under the Omnibus Investments Code (EO No. 226) may, for a limited period, employ foreign nations in technical, supervisory, or advisory postiions

Suspension of AEP by the issuing RO, and after due process:

1. Continued stay of the foreign national may result in damage to the interest of the industry or the country2. The employment of the foreign national is suspended by the employer or by order of the Court

Cancellation/Revocation of AEP by RD, and after due process: NMF-MDT

1. Non-compliance with any of the requirements or conditions for which the AEP was issued;2. Misrepresentation of facts in the application;3. Submission of Falsified or tampered documents;4.Meritorious objection or information against the employment of the foreign national as determined by the Regional Director;5. Foreign national has a Derogatory record; and6. Employer Terminated the employment of the foreign nationalLabor CodeBook III: Conditions of EmploymentArt. 82. Coverage. The provisions of this Title shall apply to employees in all establishments and undertakings whether for profit or not, but not toGMFF-DPP

Government employees, Managerial employees, Field personnel, members of the Family of the employer who are dependent on him for support, Domestic helpers, Persons in the personal service of another,

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and workers who are Paid by results as determined by the Secretary of Labor in appropriate regulations.

IRR for BOOK III: Conditions of EmploymentRule 1: Hours of WorkSECTION 1. General statement on coverage. — The provisions of this Rule shall apply to all employees in all establishments and undertakings, whether operated for profit or not, except to those specifically exempted under Section 2 hereof.

SECTION 2. Exemption. — The provisions of this Rule shall not apply to the following persons if they qualify for exemption under the conditions set forth herein:

(a) Government employees whether employed by the National Government or any of its political subdivision, including those employed in government-owned and/or controlled corporations;

Note: If GOCC incorporated via the Corporation Code then Labor Code still applies

(b) Managerial employees, if they meet all of the following conditions:(1) Their primary duty consists of the management of the

establishment in which they are employed or of a department or sub-division thereof.

(2) They customarily and regularly direct the work of two or more employees therein.

(3) They have the authority to hire or fire employees of lower rank; or their suggestions and recommendations as to hiring and firing and as to the promotion or any other change of status of other employees, are given particular weight.

(c) Officers or members of a managerial staff if they perform the following duties and responsibilities:

(1) The primary duty consists of the performance of work directly related to management policies of their employer;

(2) Customarily and regularly exercise discretion and independent judgment; and

(3) (i) Regularly and directly assist a proprietor or a managerial employee whose primary duty consists of the management of the

establishment in which he is employed or subdivision thereof; or (ii) execute under general supervision work along specialized or technical lines requiring special training, experience, or knowledge; or (iii) execute, under general supervision, special assignments and tasks; and

(4) Who do not devote more than 20 percent of their hours worked in a work week to activities which are not directly and closely related to the performance of the work described in paragraphs (1), (2) and (3) above.

(d) Domestic servants and persons in the personal service of another if they perform such services in the employer's home which are usually necessary or desirable for the maintenance and enjoyment thereof, or minister to the personal comfort, convenience, or safety of the employer as well as the members of his employer's household.

(e) Workers who are paid by results, including those who are paid on piecework, "takay," "pakiao" or task basis, and other non-time work if their output rates are in accordance with the standards prescribed under Section 8, Rule VII, Book Three of these regulations, or where such rates have been fixed by the Secretary of Labor and Employment in accordance with the aforesaid Section.

(f) Non-agricultural field personnel if they regularly perform their duties away from the principal or branch office or place of business of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.

Additionally, the IRR for Rule IV, Book III states that Rule IV (Holidays with Pay) shall apply to all employees exceptxxx(e) Field personnel and other employees whose time and performance is unsupervised by the employer xxx

Note: A supervisor is deemed a “managerial employee” for Book III but not for Book V.

What are some of these Conditions of Employment?

NOMM-NCR-LSS

(a) Normal Work Hours

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Shall not exceed 8 hours a dayHours Worked shall include:

i) all time during which an employee is required to be on duty or to be at prescribed workplace

ii) all time when an employee is suffered or permitted to work

iii) rest period of short duration shall be counted

(b) Overtime PayWhen work goes beyond 8 hours a day:

If on a regular day then OTP = Regular Wage + 25% thereof

If on Holiday or RestDay then OTP =Premium Rate for Holiday or Rest Day + 30% thereof

Note that Undertime is not offset by one’s Overtime (Art. 88)

(c) Meal Periods Shall be granted not less tha 60 minutes time-off for their

regular meals

(d) Minimum WageIn Metro Manila, Php 481 for non-agricultural sector, Php

444 for agricultural sector

(e)Night Shift DifferentialFor work 10pm to 6am, NSD is not less that 10% of Regular

Wage for each hour of work

(f) Compensation for Rest Day, Sunday or Special Holiday For Holiday or Rest Day then an addition of at least 30% of

his regular wage is given Where Holiday is also a Rest Day then an addition of at

least 50% of his regular wage

(g) Right to Weekly Rest Day Rest period of not less than 24 consecutive hours after

every 6 consecutive normal work days

(h) Legal Holiday12 Regular Holidays

(i) Service Incentive Leave(k) Service Charge

12 Regular (Legal) Holidays NMGALINEEBCR

Date

New Year’s Day January 1Maundy Thursday MovableGood Friday MovableAraw ng Kagitingan Monday nearest April 9Labor Day Monday nearest May 1Independence Day Monday nearest June 12National Heroes Day Last Monday of AugustEid’l Fitr Movable DateEid’l Adha Movable DateBonifacio Day Monday nearest November 30Christmas Day December 25Rizal Day Monday nearest December 30

Special (Non-working) Day DateNinoy Aquino Day Monday nearest Auguest 21All Saints Day November 1Christmas Eve December 24Last Day of the Year December 31

Muslim Holidays DateAmun Jadid (New Year) 1stday of the lunar month of

MuharramMaulid-un-Nabi (Birthday of the Prophet Muhammad)

12th day of the third lunar month of Rabi-ul-Awwal

Lailatul Isra Wal Mi Rai (Nocturnal Journey & Ascension of the Prophet Muhammad)

27th day of the seventh lunar month of Rajab

Id-ul-Fitr (Hari Raja Pausa) 1st day of the tenth month of Shawwal

Id-ul-Adha (Hari Raha Haji) 10th of the twelfth lunar month of Dhu’l-Hijja

Note: For Special (Working) Days an employee is enetied only to his/her daily wage rate. One example is February 25 (EDSA Revolution) which is a working day, but no-class day in schools.

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Special note for Teachers: no pay for no work done on regular holidays; but with regular pay for days declared as special holidays or for some other reason classes are called off when they are supposed to have taught.

Situation Hours (NDR-Normal Daily Rate)Worked OT on a normal day NDR x 125% x OT hoursWorked OT on a scheduled rest day or a special day

NDR x 130% x OT hours

Worked OT on a regular holiday NDR x 200% x 130% x OT hours Worked OT on a regular holiday which falls on a scheduled rest day

NDR x 260% x 130% x OT hours

Example 1 :Employee earns 50,000 per month, worked 4 hrs OT on a normal day50,000/22 days = 2,217.73 per day2,217.73 per day/ 8 hour = 277.22 per hour277.22 x 125% x 4 hours OT = 3,603.82

Example 2:Employee earns 400 per day (worked from 9am to 11pm)400/8 hrs = 50is the regular pay rate per hour50 x 25% = 62.5OT is the pay rate for day62.5 x 10% = 68.77 is the OT pay rate for hours worked 10pm to 6am

Wage = (50 x 8hrs) + (62.5 x 4 hrs) + (68.77 x 1 hr)Wage = 718.77

Holiday Pay of a Part-timer, the basis is any of the following, whichever yields the highest amount:1. regular wage per day;2. the basic wage on the working day preceding the regular holiday if the employee is present or on leave with pay on the last working day immediately prior to the regular holiday;3. the average of his basic wages for the last 7 working days for employees who are paid by results;4. the basic wage on the particular holiday, if worked

Attendance at lectures, meetings, training programs, and similar activities need NOT be counted as working time if the following three criteria are met:

(1) Attendance is outside of the meployee’s regular working hours(2) Attendance is in fact voluntary(3) The employee does not perform any prodructive work during such attendance

40-hour workweek not applicable if resident-physicians in training, provided:-there is training agreement between the resident physician and the hospital-training program is duly accredited or approved by the appropriate government agency

Validity of Compressed Workweek, without OT pay:(a) the scheme is expressly and voluntarily supported by majority of the employees affected(b) in firms using substances, or operating in conditions that are hazardous to health, a certification is needed from an accredited safety organization or the firm’s safety committee that work beyond eight hours is within the limits or levels of exposure set by the DOLE’s occupational safety and health standards(c) the DOLE regional office is duly notified

Flexible Work Agreement

Description

Compressed Workweek

Refers to one where the normal workweek is reduced to less than 6 days but the total number of work-hours is 48 hours per week shall remain

Reduction of workdays

Where the normal workdays per week are reduced but should not last for more than 6 months

Rotation of workers

Where the employees are rotated or alternately provided work within the workweek

Forced leave Where the employees are required to go on leave for several days or weeks, utilizing their leave credits if there are any

Broken-time schedule

Where the work schedule is not continuous but the number of work hours within the day or week is not reduced

Flexi-holiday schedule

Where the employees agree to avail themselves of the holidays at some other days, provided that there is not diminution of existing benefits as a result of such arrangement

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Note: Prior to the FWA implementation, the DOLE Regional Office should be notified through a prescribed report form.

Instances when meal time may be shortened to less than 60, minutes, with full pay:NOTE: But still, meal period must not be less than 20 minutes

Emergency Overtime Work:

When employer may require work on a Rest Day:

(a) where the establishment regularly operates not less than 16 hours a day

(a) When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive; 

(c) In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures; 

(b) where the work is non-manual or does not involve the serious physical exertion

(b) When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or

(a) In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or

impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;

calamity to prevent loss of life and property, or imminent danger to public safety;

(c) where there is actual or impending emergencies or there is urgent work to be performed on machineries, equipment or installation to avoid serious loss which the employer would otherwise suffer; and

(c) When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage to the employer or some other cause of similar nature;

(b) In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer would otherwise suffer; 

(d) where the work is necessary to prevent serious loss of perishable goods

(d) When the work is necessary to prevent loss or damage to perishable goods; and

(c) To prevent loss or damage to perishable goods; 

(e) Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer.

(e) Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer; and 

Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.

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Shortened Meal Break upon Employees’ Request:(a) the employees voluntarily agree in writing to a shortened meal period of 30 minutes and are willing to waive the OT pay for such shortened meal period;

(b) there will be no diminution whatsoever in the salary and other fringe benefits of the employees existing before the effectivity of the shortened meal period;

(c) the work of the employees does not involve strenuous physical exertion and they are provided with adequate “coffee breaks” in the morning and afternoon;

(d) the value of the benefits derived by the employees from the proposed work arrangement is equal to or commensurate with the compensation due them for the shortened meal period as well as the OT pay for 30 minutes as determined by the employees concerned;

(e) the OT pay of the employees will become due and demandable if ever they are permitted or made to work beyond 4:30pm; and

(f) the effectively of the proposed working time arrangement shall be of temporary duration as determined by the Sec. of Labor & Employment

SSS Law -female member-at least 3 monthly contributions in the 12-month period immediately preceding semester of her childbirth or miscarriage

100% of her average daily salary credit for -60 days [for normal delivery]-OR 78 days in case of caesarian delivery

VAWC -A victim -paid leave of absence up to 10 days -extendible when the necessity arises as specified in the protection order.

Magna Carta -woman employee -for at least 6 months in the last 12 months-following surgery caused by gynecological disorders

2 months with full pay based on her gross monthly compensation

Solo Parents Act

-solo parent-service of at least 1 year

-not more than 7 working days every year

Paternity Leave Act

-married male employee whose spouse has delivered a child or suffered a  miscarriage -available only for the first 4 deliveries of  the legitimate spouse with whom he is cohabiting

-entitled to a paternity leave of 7 days with full pay

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Law Coverage Rights

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RA 1161, as amended by RA 8282 (SSS Law)

SEC. 14-A. Maternity Leave Benefit. - 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 100% of her average daily salary credit for -60 days [for normal delivery]-OR 78 days in case of caesarian delivery, subject to the following conditions:(a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide;(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave application;(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits Provided by this Act for the same period for which daily maternity benefits have been received;(d) That the maternity benefits Provided under this section shall be paid only for the first four (4) deliveries or miscarriages;(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof; and(f) That if an employee member should give birth or suffer miscarriage without the required contributions having been remitted for her by her employer to the SSS, or without the latter having been previously notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which said employee member would otherwise have been entitled to.

RA 9262 (VAWC)

VAWC refers to any act or a series of acts committed by any person against a woman who is his wife, former wife, or against a woman with whom the person has or had a sexual or dating relationship, or with whom he has a common child, or against her child whether legitimate or illegitimate, within or without the family abode, which result in or is likely to result in physical, sexual, psychological harm or suffering, or economic abuse including threats of such acts, battery, assault, coercion, harassment or arbitrary deprivation of liberty. It includes, but is not limited to, the following acts:A. "Physical Violence" xxx B. "Sexual violence" xxxC. "Psychological violence" xxxD. "Economic abuse" xxx

SECTION 43. Entitled to Leave. – Victims under this Act shall be entitled to take a -paid leave of absence up to 10 days in addition to other paid leaves under the Labor Code and Civil Service Rules and Regulations, -extendible when the necessity arises as specified in the protection order.

Any employer who shall prejudice the right of the person under this section shall be penalized in accordance with the provisions of the Labor Code and Civil Service Rules and Regulations. Likewise, an employer who shall prejudice any person for assisting a co-employee who is a victim under this Act shall likewise be liable for discrimination.

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RA 9710 (Magna Carta of Women)

Section 18. Special Leave Benefits for Women. - A woman employee having rendered continuous aggregate employment service of at least 6 months for the last 12 months…

…shall be entitled to a special leave benefit of -2 months with full pay based on her gross monthly compensation following surgery caused by gynecological disorders.

RA 8972 (Solo Parents' Welfare Act of 2000)

granted to any solo parent employee who has rendered service of at least 1 year.

Who are solo parents?(a) "Solo parent" - any individual who falls under any of the following categories:(1) A woman who gives birth as a result of rape and other crimes against chastity even without a final conviction of the offender: Provided, That the mother keeps and raises the child;(2) xxx death of spouse;(3) xxx spouse is detained or is serving sentence for a criminal conviction for at least one (1) year;(4) xxx physical and/or mental incapacity of spouse as certified by a public medical practitioner;(5) xxx due to legal separation or de facto separation from spouse for at least one (1) year, as long as he/she is entrusted with the custody of the children;(6) xxx due to declaration of nullity or annulment of marriage as decreed by a court or by a church as long as he/she is entrusted with the custody of the children;(7) xxx due to abandonment of spouse for at least one (1) year;(8) Unmarried mother/father who has preferred to keep and rear her/his child/children instead of having others care for them or give them up to a welfare institution;(9) Any other person who solely provides parental care and support to a child or

Section 8. Parental Leave. - In addition to leave privileges under existing laws, parental leave of -not more than seven (7) working days every year shall be granted to any solo parent employee who has rendered service of at least 1 year.

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children;(10) Any family member who assumes the responsibility of head of family as a result of the death, abandonment, disappearance or prolonged absence of the parents or solo parent.

A change in the status or circumstance of the parent claiming benefits under this Act, such that he/she is no longer left alone with the responsibility of parenthood, shall terminate his/her eligibility for these benefits.

RA 8187 (Paternity Leave Act)

Every married male employee in the  private and public sectors shall be entitled to a paternity leave  of 7 days with full pay for the first 4 deliveries of  the legitimate spouse with whom he is cohabiting.

The male employee applying for paternity leave shall notify his employer of the pregnancy of his legitimate spouse and the  expected date of such delivery. 

allowing him not to report for work for 7 days but continues to earn the compensation therefor, on the  condition that his spouse has delivered a child or suffered a  miscarriage for purposes of enabling him to effectively lend support to his wife in her period of recovery and/or in the  nursing of the newly-born child. 

1) must be an employee at the time of delivery of child2) he is cohabiting with his legitimate spouse at the time she gives birth or suffers a miscarriage3) he has applied for paternity leave in accordance with law4) his wife has given birth, or suffered a miscarriage.

Wages - paid to any employee shall mean the remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, 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 work 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 and Employment, of board, lodging, or other facilities customarily furnished by the employer to the employee. "Fair and reasonable value" shall not include any profit to the employer, or to any person affiliated with the employer.

Facilities SupplementsForm part of wage, thus Does not form part of wage

deductibleNecessary for the laborer’s and his family’s existence and subsistence

Constitute extra remuneration or special privilegages or benefits gven to or received by the laborer over and above their ordinary earnings or wages

For the employee’s benefit For the employer’s benefit

Requirements for Deducting Value of Facilities: CVV1. proof must be shown that such facilities are customarily furnished by the trade2. the provision of deductible facilities must be voluntarily accepted in writing by the employee3. facilities may be charged at fair and reasonable value

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For non-dimunition of benefits to apply:(1) the grant of the benefit is founded on a policy or has ripened into a practice over a long period(2) the practice is concsistent and deliberate(3) the practice is not due to error in the construction or application of a doubtful or difficult question of law; and(4) the diminution or discontinuance is done unilaterally by the employer

Exceptions to the Coverage of the Rule on Minimum Wages: HHCC - BRAND(1)Household or domestic helpers, including family drivers and persons in the personal service of another(2)Howeworkers engaged in needle-work(3) workers employed in any establishment duly registered with the National Cottage Industries and Development Authority in accordance with RA 3470 provided that such workers perform the work in their respective homes(4)workers in any duly registered Cooperative when so recommended by the Bureau of Cooperative Development and upon approvl of the Sec. of Labor & Employment xxx(5)Barangay Micro-Business Enterprises (BMBEs) – whose total assets including those arising from loans buts exclusive of the land on which the business entity’s office, plant and equiplent are situation shall not be more than 3,000,000; as per BMBE Act of 2002(6)Retail/service establishments regularly employment not more than 10 workers; as per RA 6727 (Wage Rationalization Act)

-Note: Those employed on a seasonal basis are not to be counted for the purpose of determining the number of workers. But those employed on probational or those employed as learners or apprentices (with compensation) shall be considered in determining the exemption of the enterpriseThe next three may be added by the regional wage boards but the addition is subject to review or approval by the NWPC.(7) establishments adversely Affected by natural calamities(8) New business enterprises(9) Distressed establishments

Exceptions to the Nondiminution Rule: C-NEW-BRP(1) Contingent benefits or conditional bonus(2) Negotiated benefits

(3) correction of Error(4) Wage order compliance(5) Benefits on reimbursement basis(6) Reclassification of position(7) Productivity incentives

Manner of PaymentGeneral Rule: Wages shall be paid in legal tender and the use of tokens, promissory notes, vouchers, coupons, or any other form alleged to represent legal tender is absolutely prohibited even when expressly requested by the employee.

Exceptions:

A. Payment of wages by bank checksPostal checks or money orders is allowed where such manner of wage payment is customary on the date of the effectivity of the Code, where it is so stipulated in a collective agreement, or where all of the following conditions are met:

B. Payment of wages through ATM

(a) There is a bank or other facility for encashment within a radius of one (1) kilometer from the workplace;

(d) There is a bank or ATM facility within a radius of one (1) kilometer to the place of work;

(b) The employer or any of his agents or representatives does not receive any pecuniary benefit directly or indirectly from the arrangement;

(c) The employees are given reasonable time during banking hours to withdraw their wages from the bank which time shall be considered as compensable hours worked if done during working hours; and

(b) the employees are given reasonable time to withdraw their wages from the bank facility which time, if done during working hours, shall be considered compensable hours worked;

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(d) The payment by check is with the written consent of the employees concerned if there is no collective agreement authorizing the payment of wages by bank checks.

(a) the ATM system of payment is with the written consent of the employees concerned;

(c) The system shall allow workers to receive their wages within the period or frequency and in the amount prescribed under the Labor Code, as amended; (e) Upon request of the concerned employee/s, the employer shall issue a record of payment of wages, benefits and deductions for a particular period; (f) There shall be no additional expenses and no diminution of benefits and privileges as a result of the ATM system of payment; (g)The employer shall assume responsibility in case the wage protection provisions of law and regulations are not complied with under the arrangement. (Explanatory Bulletin issued by DOLE Secretary Leonardo Quisumbing dated November 25, 1996).

Payment through Banks:-upon written permission of the majority of the employees or workers concerned, all private establishments, companies, business, and other entities with 25 or more employees and-located within 1 kilometer radius to a commercial, savings or rural bank shall pay the wages and other benefits of their employees through any of said banks and-within the period of payment of wages fixed by the Labor Code

Time of payment:

(a) Wages shall be paid not less than once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days, unless payment cannot be made with such regularity due to force majeure or circumstances beyond the employer's control in which case the employer shall pay the wages immediately after such force majeure or circumstances have ceased. (b) In case of payment of wages by results involving work which cannot be finished in two (2) weeks, payment shall be made at intervals not exceeding sixteen days in proportion to the amount of work completed. Final settlement shall be made immediately upon completion of the work.

Place of paymentGeneral Rule: The place of payment shall be at or near the place of undertaking. Exceptions:(a) When payment cannot be effected at or near the place of work by reason of the deterioration of peace and order conditions, or by reason of actual or impending emergencies caused by fire, flood, epidemic or other calamity rendering payment thereat impossible; (b) When the employer provides free transportation to the employees back and forth; and (c) Under any other analogous circumstances; Provided, That the time spent by the employees in collecting their wages shall be considered as compensable hours worked; (d) No employer shall pay his employees in any bar, night or day club, drinking establishment, massage clinic, dance hall, or other similar places or in places where games are played with stakes of money or things representing money except in the case of persons employed in said places.

Direct Payment of WagesGeneral Rule:Payment of wages shall be made direct to the employee entitled theretoExceptions:(a) Where the employer is authorized in writing by the employee to pay his wages to a member of his family; (b) Where payment to another person of any part of the employee's wages is authorized by existing law, including payments for the insurance premiums of the employee and union dues where the right to check-off has been recognized by the employer in accordance with

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a collective agreement or authorized in writing by the individual employees concerned; or (c) In case of death of the employee as provided in the succeeding Section.

Wages of deceased employee:-shall be made to his heirs without the necessity of intestate proceedings-when heirs are of age, they shall execute an affidavit attesting to their relationship to the deceased and the fact that they are his heirs to the exclusion of all other persons (In case any of the heirs is a minor, such affidavit shall be executed in his behalf by his natural guardian or next of kin)-Upon presentation of the affidavit to the employer, he shall make payment to the heirs as representative of the Secretary of Labor and Employment.

Deductions from the wages of the employees may be made by the employer in any of the following cases: (a) When the deductions are authorized by law, including deductions for the insurance premiums advanced by the employer in behalf of the employee as well as union dues where the right to check-off has been recognized by the employer or authorized in writing by the individual employee himself. (b) When the deductions are with the written authorization of the employees for payment to the third person and the employer agrees to do so; Provided, That the latter does not receive any pecuniary benefit, directly or indirectly, from the transaction.

Deductions Authorized by Law: FIUDAWSS(1) Deduction for value of meals and other Facilities (remember 70% rule)(2)where the E’E is Insured with his consent by the E’R, deduction for the amount paid by said E’R, as premium on the insurance(3) where the right of the employees or his Union to check-off has been recognized by the E’R or authorized in writing by the individual employee concerned

(4)Debts! where the E’E is indebted to the E’R, where such indebtedness has become due and demandable(5) In court Awards, wages may be the subject of execution or attachment, but only for debts incurred for food, shelter, clothing and medical attendance(6)Withholding tax(7) Salary deduction of a member of a legally established cooperative(8) SSS, medicare and Pag-Ibig contributions

Deduction for loss or damage:(a) That the employee concerned is clearly shown to be responsible for the loss or damage; (b) That the employee is given reasonable opportunity to show cause why deduction should not be made; (c) That the amount of such deduction is fair and reasonable and shall not exceed the actual loss or damage; and (d) That the deduction from the wages of the employee does not exceed 20 percent of the employee's wages in a week. -—Where the employer is engaged in a trade, occupation or business where the practice of making deductions or requiring deposits is recognized to answer for the reimbursement of loss or damage to tools, materials, or equipment supplied by the employer to the employeeNational Wages and Productivity Commission (NWPC):-Secretary of Labor (as Ex-officio Chair)-Director General of NEDA (Ex-officio Vice-Chair)-2 members representing workers-2 members representing employers-Executive Director of the Commission

Regional Tripartite Wages and Productivity Boards (RTWPB):-Regional Director of DOLE-Regional Director of NEDA-Regional Director of DTI-2 members representing workers-2 members representing employers

Wage Distortion-shall mean a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the

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distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation.

Crimes under the RPC regarding Labor: Committed by Employer

Title Nine: CRIMES AGAINST PERSONAL LIBERTY AND SECURITYUnder Chapter One: CRIMES AGAINST LIBERTYArt. 273. Exploitation of child labor. — The penalty of prision correccional in its minimum and medium periods and a fine not exceeding 500 pesos shall be imposed upon anyone who, under the pretext of reimbursing himself of a debt incurred by an ascendant, guardian or person entrusted with the custody of a minor, shall, against the latter's will, retain him in his service.

Art. 274. Services rendered under compulsion in payment of debt. — The penalty of arresto mayor in its maximum period to prision correccional in its minimum period shall be imposed upon any person who, in order to require or enforce the payment of a debt, shall compel the debtor to work for him, against his will, as household servant or farm laborer.

Under Chapter Two: CRIMES AGAINST SECURITYArt. 288. Other similar coercions; (Compulsory purchase of merchandise and payment of wages by means of tokens.) — The penalty of arresto mayor or a fine ranging from 200 to 500 pesos, or both, shall be imposed upon any person, agent or officer of any association or corporation who shall force or compel, directly or indirectly, or shall knowingly permit any laborer or employee employed by him or by such firm or corporation to be forced or compelled, to purchase merchandise or commodities of any kind. The same penalties shall be imposed upon any person who shall pay the wages due a laborer or employee employed by him, by means of tokens or objects other than the legal tender currency of the Philippine Islands, unless expressly requested by the laborer or employee.Art. 289. Formation, maintenance and prohibition of combination of capital or labor through violence or threats. — The penalty of arresto mayor and a fine not exceeding 300 pesos shall be imposed upon any person who, for the purpose of organizing, maintaining or preventing coalitions or capital or labor, strike of laborers or lock-out of employees, shall employ violence or threats in such a degree as to compel or force the laborers or employers in the free and legal

exercise of their industry or work, if the act shall not constitute a more serious offense in accordance with the provisions of this Code.

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