Updates on Labor Law. A presentation delivered by Atty. Apollo X.C.S. Sangalang on February 26, 2014 at the AIM Conference Center, Makati City.

1. Resource Speaker:
Atty. Apollo X.C.S. Sangalang
Business Lawyer & Legal Coach

2. Why study Labor Law…?
• You want to know and understand better your
rights and obligations?
• You want to do business properly and employ
workers legally?
• You want to avoid labor problems and
disputes effectively?
• You want to deal with your workers and their
unions or representatives effectively.
• You want to get the best legal advice?

3. LABOR LAW MADE EASY
1. Learn something (new) about
Labor Law (almost) DAILY.
2. Links to useful (and new)
MATERIALS and EVENTS.
3. Answers to quick questions for
FREE (thru private message).

4. LABOR LAW MADE EASY
LIKE
COMMENT
SHARE
TAG

5. What is Labor Law?

6. What is Labor Law?
Government
Employee
Employer

7. Stages of Labor Law

8. Sources of Labor Law
Constitution
Labor Code (as amended)
Jurisprudence
Rules &
Regulations
Social
Legislations
Contracts &
Company
Policies

9. Other Sources of Labor Law
Civil Code
Other
Statutes
Beneficial
Company
Practices
Equitable
Principles
The Bible

10. The Bible as source of Labor Law?
“You have six days each week for your ordinary
work, but on the seventh day you must stop
working. This gives your ox and your donkey a
chance to rest. It also allows your slaves and the
foreigners living among you to be refreshed.”
(Exodus 23:12 NLT)
“Do not rob or defraud your neighbor. Do not
make your hired workers wait until the next day to
receive their pay.” (Leviticus 19:13 NLT)

11. Elements of Labor Law
Social Justice
Shared
Responsibility
Labor
Law
Rule of
Law

12. What is Social Justice?
Business
Labor
Law
Law
Law
Law
Law

13. Shared Responsibility Model
Business
Progress &
Development
Labor

14. Rule of Law

15. Branches of Labor Law

16. Monetary Benefits
Minimum Wage
Holiday Pay
Premium Pay
Overtime Pay
Night Shift Differential
Service Charges
Service Incentive Leave
Maternity Leave
Paternity Leave
Solo Parents Leave
VAWC Leave
Special Leave for Women
13th Month Pay
Separation Pay
Retirement Pay
Compensation Benefit* (ECC)
PhilHEALTH Benefit*
Social Security Benefit*
Pag-IBIG Benefit*

17. Retail & Service Establishment Exemption
Monetary Benefits
1 to 5
Workers
1 to 9
Workers
Holiday Pay
None
None
Night Shift Differential
None
Yes
Service Incentive Leave
None
None
Retirement Pay
None
None

18. 2014 Handbook

19. Q&A on Batas Kasambahay
Revised Version

20. Occupational Safety & Health Standards

21. Basic Labor Rights
1. “Living wage” thru monetary benefits
2. Humane conditions of work
3. Security of tenure
4. Collective bargaining:
1. Self-organization
2. Freedom of expression
3. Strike

22. Who’s covered by Labor Law?
• Labor Law applies only when an
employment relationship exist.
• It applies to employers and their
employees, as well as to certain
third parties.
• Not all workers are employees!

23. Non-employee Workers
Partners
Agents
Independent Contractors Job Contractors
Freelancers
Consultants
Corporate Officers
Cooperative Members
Volunteers
Interns

24. Test of Employment
Fire
Hire
4-Fold Test
Pay
Control

25. Control Test
• The power of one party to determine,
not only the end result of the work,
but also the means of doing the work,
is the POWER OF CONTROL.
• Only an employer has the power of
control over his employees.
• The power of control need not be
actually exercised.

26. Control Test
End
Control
Means

27. Kinds of Employees
Private Sector
Government
Regular (Nature)
Casual
Regular (Term)
Non-Regular
Rank-and-file
Non-rank-and-file
Based On Hours
Worked
Based On Results

28. What is Labor Standards?
• It’s the minimum requirements
prescribed by existing laws, rules
and regulations, and other
issuances relating to labor and
occupational safety and health
standards.

29. 3 Rules on Labor Standards
• Rule 1: You cannot give below
Labor Standards.
• Rule 2: You can give anything
above Labor Standards anytime.
• Rule 3: You cannot easily take
back what you’ve already given.

30. Non-Diminution of Benefits
No Ceiling!
No Going Back!
There’s a Floor!

31. 2014 Handbook

32. Labor Standards Updates
• Wage Order No. NCR-18
• Increased Basic Wage by P10.00 on
October 4, 2013.
• Integrated P15.00 of the P30.00
COLA into the Basic Wage on
January 1, 2014.
• Basic Wage + COLA = Minimum Wage

33. NCR (as of Jan. 1, 2014)
Establishment
Basic
Wage
+ COLA = Minimum
Wage
Non-Agricultural
451.00
15.00
466.00
Agricultural
414.00
15.00
429.00
Private Hospitals
(100 or less bed)
414.00
15.00
429.00
Retail/ Service
(15 or less workers)
414.00
15.00
429.00
Manufacturing
(9 or less workers)
414.00
15.00
429.00

34. Cost of Living Allowance
(COLA)
NOT included in the computation of:
1. Premium pay
2. Overtime pay
3. Night shift differential
4. 13th month pay
5. Retirement pay

35. Minimum Wage for
Other Regions
• Check: National Wages and Productivity
Commission (NWPC) website.
• nwpc.dole.gov.ph
• 17 Regions, including NCR, CAR, ARMM
and Region IV-A and Region IV-B.
• Each region have their own Wage Order.

36. Minimum Wage Law
(RA 6727 as amended by RA 8188)
• Penalties for violation:
– Imprisonment of 2 to 4 years
(without probation benefits); or
– Fine of P25,000 to P100,000; or
both.
– Plus DOUBLE INDEMNITY paid to
the workers.

37. Minimum Wage Coverage
All private sector employees, EXCEPT:
– Government Employees.
– Domestic Workers under RA 10361
(MW: P2,500/P2,000/P1,500/mo.).
– Personal Assistants (family drivers).
– Barangay Micro Business Enterprises
(BMBEs) under RA 9178.

38. WO No. NCR-18 Exemptions
Upon Application with the Wage Board:
• Distressed establishments;
• Retail or service establishments with 10 or
less workers;
• Establishments with Total Assets of not
more than P3 million (ETAs) which are not
yet BMBEs;
• Establishments adversely affected by
natural calamities.

39. Minimum Wage
WO No. NCR-18 Special Circumstances
• Contractors (Construction and Job)
• Private Educational Institutions
• Workers paid by results
• Apprentices and Learners
• Qualified Handicapped Workers
• Creditable Wage Increase

40. Minimum Wage
Special Circumstances
• Reduced working hours, i.e Underemployed
or those working less than 8-hours of work
per day.
• Reduced working days, i.e. Shortened
workweek.
• DA No. 2 (S.2009) Guidelines on the
Adoption of Flexible Work Arrangements

41. Flexible Work Arrangements
DA No. 2 (S.2009)
• Compressed Work Week (DA No. 2, S.2004)
• Reduction of Work Days
• Rotation of Workers
• Forced Leave
• Broken Time Schedule
• Flexi-Holidays Schedule

42. Single ENtry Approach
RA No. 10396/ DO No. 107 (S.2010)
• Conciliation-mediation of labor cases by
frontline DOLE offices regardless of
whether they have jurisdiction or not.
• Anonymous complaints and requests
allowed.
• Confidentiality of proceedings.
• SEnA Rules of Procedure.

43. Rules on Labor Laws
Compliance System (LLCS)
• Article 5, LC: Rule-making and
Regulatory functions of the SoLE.
• Article 128, LC: Visitorial and
Enforcement power of the SoLE.
• DO No. 131-13 (S.2013)

44. Labor Laws Compliance System (LLCS)
• Repealed: DO No. 57-04 “New Labor Standards
Enforcement Framework” of 2004.
• Coverage:
– All employers, including persons acting directly or
indirectly in the interest of an employer.
– It also include the government performing
proprietary functions, and all its units;
– All GOCCs and institutions;
– All non-profit private institutions and organizations.

45. Labor Laws Compliance System (LLCS)
• Objectives:
– Primary: Compliance with labor laws thru the
visitorial and enforcement power of the SoLE.
– Secondary: Promotion of voluntary
compliance thru the use of developmental
approaches:
1. Culture of compliance
2. Settlement (SEnA)
3. Tripartism

46. Labor Laws Compliance System (LLCS)
• 3 Modes of Implementation:
– Joint Assessment (or “Assessment”);
– Compliance Visit (or “Visit”); and
– Occupational Safety and Health Standards
Investigation (or “Investigation”)
• Implementing Officers:
– Labor Law Compliance Officer (LLCO)

47. Labor Laws Compliance System (LLCS)
• Joint Assessment:
– Covers private establishments only.
– But establishments with Tripartite Certificates of
Compliance with Labor Standards (TCCLS) are
not covered (under DO No. 115-A, 2012).
– At least once a year, motu proprio on the part of
RO or upon request by the establishments.
– Employment records keeping and maintenance
period: 3 years.

48. Labor Laws Compliance System (LLCS)
• Joint Assessment:
– PRIORITY LIST:
• Engaged in hazardous work
• Employing child employees
• Engaged in contracting and subcontracting
arrangements
• Philippine registered ship or vessel
engaged in domestic shipping
• Employing 10 or more employees

49. Labor Laws Compliance System (LLCS)
• Joint Assessment:
– PROCEDURE:
• Assignment of Establishment
• Letter and Authority to Assess
• Examination of Employment Records
– Employee’s Representative
• Issuance of Notice of Results and
Certificate of Compliance
– Assessment Checklist

50. Labor Laws Compliance System (LLCS)
• Joint Assessment:
– PROCEDURE (Non-Compliant Establishment):
• Assessment Checklist with deficiencies.
– 10 days to institute corrective measures for monetary
and social welfare benefits.
– In case of OSH deficiencies and there’s imminent
danger/or dangerous occurrence, immediate abatement.
» If not abated, WORK STOPPAGE ORDER (WSO)!
• Notice of Results with deficiencies.

51. Rules on Wages
• What is Wage Distortion?
– What is “Across-the-Board Wage Increase”?
• What is the Rule on Payment of Wages?
– Paid in legal currency at or near the workplace.
– Frequency: 2x/month not exceeding 16 days
interval.
• What is the Rule on Wage Deduction?
– Mandatory: Allowed by law.
– Non-mandatory: Written Authorization needed.

52. Rules on Wages:
Domestic Workers
• Payment of wages shall be made on time directly
to the domestic worker to whom they are due in
cash at least once a month.
• The employer, unless allowed by the domestic
worker through a written consent, shall make no
deductions from the wages other than that which
is mandated by law.
• No employer shall pay the wages of a domestic
worker by means of promissory notes, vouchers,
coupons, tokens, tickets, chits, or any object other
than the cash wage.

53. Rules on Wages:
Domestic Workers
• The employer shall at all times provide the
domestic worker with a copy of the pay slip
containing the amount paid in cash every pay day,
and indicating all deductions made, if any.
• The copies of the pay slip shall be kept by the
employer for a period of three (3) years.
• It shall be unlawful for the employer to interfere
with the freedom of any domestic worker to
dispose of the latter’s wages.

54. Rules on Wages:
Domestic Workers
• The employer shall not force, compel or oblige the
domestic worker to purchase merchandise,
commodities or other properties from the
employer or from any other person, or otherwise
make use of any store or services of such
employer or any other person.
• It shall be unlawful for an employer, directly or
indirectly, to withhold the wages of the domestic
worker. Likewise, the employer shall not induce
the domestic worker to give up any part of the
wages by force, stealth, intimidation, threat or by
any other means whatsoever.

55. Rules on Hours of Work:
Who are covered?
• All employees in all establishments,
for profit or not.
• Exceptions –
– Government employees under Civil Service Law;
– Managerial employees and managerial staff;
– Domestic workers under RA 10361;
– Persons in the personal service of another;
– Workers paid by results;
– Field personnel and those whose time and performance
are unsupervised; and
– Dependent family members of the Employer.

56. Who are the
Managerial Employees?
• Principal Duty – Management of the
establishment in which they are employed,
or a department or division thereof.
• They customarily direct the work of 2 or
more employees.
• They have authority to hire/fire, or their
suggestions on this matter are given
weight.
• They exercise Management Prerogative
on behalf of the Employer.

57. Who are the
Managerial Staff?
• Primary duty – Perform work directly
related to management policies.
• They customarily exercise discretion
and independent judgment.
• They regularly assist managerial
employees.
• They do not devote more than 20% of
their work time to activities not related
to all the above.

58. Who are the
Domestic Workers?
• Domestic Worker or “kasambahay” refers to any
person engaged in domestic work within an
employment relationship such as, but not limited
to, the following: general househelp, nursemaid or
“yaya”, cook, gardener, or laundry person.
• Excluded are any person who performs domestic
work only occasionally or sporadically and not on
an occupational basis.
• “Domestic work” refers to work performed in or for
a household or households.

59. Normal Hours of Work
•
•
•
•
Shall not exceed 8 hours/day.
Rationale.
Broken time or workday is lawful.
Shortening of work week is lawful.

60. What are Hours Worked?
• All time during which an employee is
required to be on duty or at a prescribed
work place.
• All the time during which an employee is
permitted or suffered to work.

61. Principles to Determine
Hours Worked
• All hours required, whether spent in
productive labor or involved physical or
mental exertion, are hours worked.
• Rule on rest period.
• Rule on work interruptions.

62. Other Rules on Work Hours
• “Waiting time” – compensable if integral part of
work.
• “On call” – compensable if time cannot be
used for personal purpose.
• “Travel time” – if part of work, yes. Home to
work, no. Travel away from home, yes only if it
cuts across employee’s workday.
• “Attendance to seminars” – No, if voluntary,
outside of work hours and/or no productive
work done.

63. Other Rules…
• “Power interruptions” – yes, if less than 20
minutes. No if more, and employee leave
premises.
• “Union matters” – no, unless CBA provides
otherwise.
• “Attendance at hearings” – not compensable.
• “Strike participation” – NO, definitely.

64. Meal Periods
• Required. – It should not be less than 60
minutes, but it is not compensable.
• Shortening of meal period to less than 60
minutes? – Yes, it is allowed but it must be
paid.

65. Overtime Pay
• Overtime Pay refers to the additional
compensation for work performed beyond 8 hours
per day.
• Rule: Overtime work is not permitted.
• Exceptions:
– When there is an emergency or urgent
situation.
– When completion or continuation after work
hours is necessary to prevent prejudice to
business or operations.
• Rate: 125% of regular hourly rate on ordinary
working days. 130% for overtime work on Rest
Days.
• COLA not included in computation.

66. Overtime Pay:
Who are Covered?
• All employees in all establishments,
for profit or not.
• Exceptions –
•
•
•
•
•
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Persons in the personal service of another;
Workers paid by results;
Field personnel and other employees whose time and
performance are unsupervised; and
• Dependent family members of the Employer.

67. Overtime Pay:
Domestic Workers?
• The domestic worker shall be entitled to an
aggregate daily rest period of eight (8) hours per
day.
• The domestic worker shall be entitled to all other
benefits under existing laws.
• Therefore, domestic workers are entitled to
overtime pay for work done within their daily rest
period.
• This concept of overtime pay is by way of analogy
since under RA 10361, a domestic worker can
waive a particular rest day in return for an
equivalent daily rate of pay.

68. When Is Overtime Work
Valid & Must Be Paid?
Even if without prior permission:
• The work performed was necessary.
• The work benefited the Employer.
• Employee could not abandon his work at the end of
normal working hours because there is no
replacement.

69. Undertime Not Offset
By Overtime
• Undertime work on any day shall not be offset
by overtime work on any other day.
• Permission granted by the Employer for the
Employee to go on leave on some other day
shall not exempt him from the payment of
additional compensation for overtime work
rendered.
• Valid overtime work is always subject to
Overtime Pay.

70. 15-Minute
Networking Break
• “Masters, treat your slaves the SAME
WAY. Don’t threaten them;
Remember, you both have the same
Master in Heaven, and He has no
favorites.”
– EPHESIANS 6:9 New Living Translation (NLT)

71. Holiday Pay
• Holiday Pay refers to the payment of regular
daily wage for any unworked Regular Holiday at
the rate of 100%.
• If the Employee is allowed or required to work on
a Regular Holiday, he is entitled to 200% of his
daily wage rate (Basic Wage + COLA).
• If 2 Regular Holidays fall on the same day and
the Employee is allowed or required to work on
such day, he is entitled to 300%.

72. Holiday Pay:
Who are Covered?
• All employees in all establishments, for profit or
not, including daily-paid workers.
• Exceptions –
• Government employees subject to Civil Service
Law;
• Managerial employees and managerial staff;
• Persons in the personal service of another;
• Workers paid by results;
• Field personnel and other employees whose time
and performance are unsupervised;
• Dependent family members of the Employer; and
• R e t a i l / S e r v i c e E s t a b l i s h m e n t r e g u l a r l y
employing less than 10 workers.

73. Rules on Holiday Payment
• Employees are entitled when they are present or
on leave with pay on the preceding workday.
• Employees are NOT entitled if absent or on leave
without pay on the preceding workday, unless they
work on such Regular Holiday, in which case they
are entitled to 200%.
• When preceding day is non-work day or rest day,
the Employee is entitled, if he worked on the day
before such non-work day or rest day.
• In case of successive Regular Holidays i.e. Holy
Week, the Employee shall NOT be entitled to the
successive Regular Holidays if he is absent or on
leave without pay on the preceding work day
(Wednesday), unless he worked on the first
Holiday.

74. Holiday Pay Rules continued…
• Seasonal workers may not be paid during off
season.
• Those without regular working days are entitled.
• When company is on temporary or periodic
shutdown not due to business reverses, the
employee is entitled.
• But when shutdown is due to business reverses,
the employee is not entitled.
• If a Regular Holiday falls on the same day, the
Employee shall still be paid 100% for each days or
a total of 200%.

75. What are the Regular
Holidays?
• EO 292, as amended by RA 9849.
• 12 Regular Holidays: New Year’s Day,
Maundy Thursday, Good Friday, Araw ng
Kagitingan, Labor Day, Independence Day,
National Heroes’ Day, Eidul Fitr (End of
Ramadhan), Eidul Adha (Feast of
Sacrifice), Bonifacio Day, Christmas Day,
Rizal Day.
• 4 Muslim Holidays observed in ARMM (for
both Muslims and Non-Muslims) and
applicable to all Muslims outside ARMM.

76. What are Special Days?
• EO 292, as amended by RA 9849.
• 3 Special Days: Ninoy Aquino Day, All
Saints Day, and Last Day of the Year.
• The President (or Congress) may proclaim
other days as Special Day i.e. November
2, 2014.
• Unworked Special Day is NOT paid.
• Work performed on a Special Day is paid
130%.
• Special Work Day (or Special Working
Day) is treated as an ordinary work day.

77. What are Weekly Rest Days?
• It is the duty of the Employer to
provide a Rest Day of not less than
24 hours after 6 consecutive working
days.
• Old law: Rest Day is Sunday.
• New law: Rest Day is any day.
• Employer determines the Rest Day of
the Employee, subject to agreement
and rules of DOLE.
• Employees are given preference
based on religion.

78. Premium Pay
(Rest Day/Special Day Pay)
• Rule: Work on Rest Day (and Special
Day) is not permitted.
• Exceptions (Rest Day):
– When there is an emergency or urgent
situation.
– When work is necessary to prevent prejudice to
business or operations.
• Rate: 130% of regular hourly rate on
ordinary working days. 150% if Rest
Day and Special Day fall on the same
day.
• COLA not included in the computation
(unlike in Holiday Pay).

79. Premium Pay:
Who are Covered?
• All employees in all establishments, for profit
or not.
• Exceptions –
• Government employees subject to Civil Service
Law;
• Managerial employees and managerial staff;
• Househelpers and persons in the personal
service of another;
• Workers paid by results;
• Field personnel and other employees whose
time and performance are unsupervised;
• Dependent family members of the Employer.

80. Night Shift Differential Pay
• NSD Pay refers to the the additional
compensation for each hour of work
performed between 10PM and 6AM.
• Rate: 110% of the regular hourly
wage rate.

81. Night Shift Differential Pay:
Who are Covered?
• All employees in all establishments, for profit or
not.
• Exceptions –
• Government employees subject to Civil Service
Law;
• Managerial employees and managerial staff;
• Househelpers and persons in the personal service
of another;
• Field personnel and other employees whose time
and performance are unsupervised;
• Workers paid by results;
• Dependent family members of the Employer; and
• Retail/ Service Establishment employing not
more than 5 workers.

82. Service Incentive Leave
• The Employee is entitled to 5 days of leave with
pay for every one year of service; provided that he
has served for 1 year already.
• If Employer grants vacation leave with pay of at
least 5 days every year, then this is already
compliance with SIL.
• Commutable to cash and becomes SIL Pay.
• Part-time employees are also entitled to full
service incentive leave.
• No Labor Code provisions on vacation leave or
sick leave.

83. Service Incentive Leave:
Who are Covered?
• All employees in all establishments, for profit or
not.
• Exceptions –
• Government employees subject to Civil Service
Law;
• Managerial employees and managerial staff;
• Persons in the personal service of another;
• Field personnel and other employees whose time
and performance are unsupervised;
• Workers paid by results;
• Dependent family members of the Employer; and
• Retail/ Service Establishment employing less
than 10 workers.

84. Service Incentive Leave:
Domestic Workers
• A domestic worker who has rendered
at least one (1) year of service shall
be entitled to an annual service
incentive leave of five (5) days with
pay.
• Any unused portion of said annual
leave shall not be cumulative or
carried over to the succeeding years.
• Unused leaves shall not be
convertible to cash.

85. Service Charges
• Employees are entitled to a share from the Service
Charge being collected by the Employer from his
customers.
• Rank-and-file employee’s share: 85%
• Management’s share: 15%.
• Rank-and-file employees shall receive equal share.
• If abolished, the share of the Rank-and-file
employees shall be considered integrated to their
wages.
• If the Employer doesn’t collect Service Charge, the
pooled tips shall be treated the same way as Service
Charge.

86. Retirement Pay
• Retirement age: 60 to 65 years old.
• Employee must also have worked for at least 5
years for the Employer.
• Rate: Equivalent to 22.5 days salary for every
year of service payable by Employer.
• Distinct from the Retirement Benefits from SSS.
• Excluded: Government employees; and Retail/
Service/ Agricultural Establishments employing
not more than 10 workers.

87. Separation Pay
• Employees terminated by the Employer on
the basis of Authorized Causes are entitled
to Separation Pay.
• Rate: 1 Month or ½ Month Salary for every
year of service: Retrenchment, Closure of
Business, Serious Disease.
• Rate: 1 Month or 1 Month Salary for every
year of service: Labor-saving device,
Redundancy, and Impossible Reinstatement.
• Regular Allowance in included in the
computation.

88. 13th Month Pay
• Rank-and-file employees are entitled to
13th month pay; provided they worked for
at least 1 month.
• Rate: 1/12 of the total basic salary earned
by an Employee in a year.
• Excluded: Government employees,
Employees paid based on results, and
Managerial employees.
• Domestic workers are now entitled to
13th Month Pay per RA 10361.

89. Maternity Leave
• All pregnant female workers are entitled
to Maternity Leave subject to SSS Law.
• 60 days of the average daily salary
credit for normal birth or miscarriage.
• 78 days of the average daily salary
credit for ceasarian section delivery.
• Requirements: Membership in the SSS
with at least 3 months contributions prior
to delivery or miscarriage.

90. Paternity Leave
• All married male workers are entitled
to Paternity Leave of 7 calendar days
with pay for the first 4 deliveries (or
miscarriage) of his lawful wife whom
he is cohabiting with.
• Paternity Leave is Not convertible to
cash.

91. Parental Leave for Solo
Parents
• Parental Leave shall mean leave benefits
granted to a solo parent to enable him or
her to perform parental duties and
responsibilities where physical presence is
required.
• The solo parent is entitled to 7 days leave
with pay.
• Parental Leave is Not convertible to cash.
• Requirements: At least 1 year of service
and DSWD Solo Parents ID.

92. Leave for Victims of VAWC
• Female employees who are certified as victims
under the “Anti-Violence Against Women and their
Children Act of 2004” are entitled to 10 days of
leave with pay to enable her to attend to medical
and legal concerns.
• VAWC Leave is Not convertible to cash.
• Requirements: Certification from the barangay,
prosecutor, or clerk of court that a VAWC case
involving the victim female employee is pending.

93. Special Leave for Women
• Female employees who has undergone surgery
due to gynecological disorders are entitled to 2
months leave with pay to enable her to attend to
medical and legal concerns.
• Special Leave is Not convertible to cash.
• Requirements: Certification from physician, and
employment service of at least 6 months within
the 12 month period prior to surgery.

94. Employees’ Compensation
Program
• The ECP is designed to provide a compensation
package to Employees and their dependents in
case of work-related sickness, injury, disability or
death.
• Benefits: Loss of income benefit; Medical benefit;
Rehabilitation services; Carer’s allowance; and
Death benefits.
• Workers in the formal sector are covered starting
on day 1 of their employment.

95. PhilHEALTH Benefits
• The National Health Insurance Program,
which is administered by PhilHEALTH,
provides financial assistance to memberEmployees when they get hospitalized.
• All employees are required to be members.
• Benefits: Inpatient hospital care; and
outpatient care based on a Schedule of
Benefits.

96. Social Security Benefits
• The Social Security Program provides a package
of benefits in the event of death, disability,
sickness, maternity, and old age. It provides
replacement for income lost during these
contingencies.
• All employees in the private sector are
mandatorily covered, including Domestic Workers.
• Benefits: Sickness, Maternity, Disability,
Retirement, Death & Funeral, based on a
Schedule of Benefits.

97. Loan and
Miscellaneous Benefits
• Socialized loans for emergency, housing and other
purposes are available to employees who are
qualified members of the SSS and PagIBIG Fund.
• The duty of the Employer is to deduct and remit
the Employees’ contributions as well as his
required contributions to SSS, PhilHEALTH, ECC,
and PagIBIG.
• Failure on the part of the Employer to remit the
mandatory contributions has serious
consequences.

98. Domestic Workers’
Social Benefits
• A domestic worker who has rendered at least 1
month of service shall be covered by the SSS,
EC, PhilHealth and Pag-IBIG, and shall be entitled
to all the benefits in accordance with the pertinent
provisions provided by law.
• Premium payments or contributions shall be
shouldered by the employer.
• But if wage is P5,000 and above, the Domestic
Worker shall pay his/her share in the premium or
contribution payments.

99. Domestic Workers’
Catch-All Benefit Clause
• “The domestic worker shall be
entitled to all other benefits
under existing laws.” (SEC. 30,
RA 10361)
• Fine of P10,000 to P40,000.00.
• Implementing Rule and Regulation
(IRR) within 90 days from effectivity
of law.

100. Occupational Safety and
Health Standards
• Every covered Employer is required to keep
and maintain his workplace free from work
hazards that are causing or likely to cause
physical harm to the workers or damage to
property.
• The Occupational Safety and Health
Standards, as amended, is the body of rules
and regulations that protect every worker
against the dangers of injury, sickness or
death through safe and healthful working
conditions.

101. Special Protection
• Children.
• Physically-impaired.
• Women.
• Domestic Workers.
• Homeworkers and the informal
sector.
• Filipino professionals and labor –
versus- aliens.

102. Company-initiated Benefits
• Employers are not prohibited from, and in fact
encouraged to, provide terms and conditions of
employment that are better or higher than Labor
Standards.
• Higher than Labor Standards Benefits are either
initiated by the Employer, on its own, by request of
the Employees, or by demand of their Union or
Association.

103. Non-diminution of Benefits
• The reduction or elimination of
benefits provided under the law,
agreement or voluntary practice is
prohibited.

104. When does an act
become a practice?
• If done for a long period of time (ex. Three
years).
• The act is done consistently and
intentionally.
• The act should NOT be a product of
erroneous interpretation of law.

105. Exceptions to Rule on
Non-diminution
• If circumstances no longer justify grant of
benefits (Dislocation pay, relocation allowance,
per diem, supplements, etc.)
• Rule on grant of bonus – management
prerogative, but not if given as a salary
supplement and without conditions.

106. Labor Relations
• Right to Security of Tenure.
• Right to Just Share in the Fruits of
Production.
• Right to Self-Organization.
• Right to Bargain Collectively.
• Right to Strike and Other Peaceful
Concerted Action.
• Right Against Unfair Labor Practices.

107. Labor Relations Updates
• 2011 NLRC Rules of Procedure. (Effective
August 2011)
• DOLE Department Order No. 18-A “Rules
Implementing Article 106 to 109 of the
Labor Code, As Amended”. (Effective
December 2011)
• “The Rules of Procedure of the Single
Entry Approach (SEnA)” (Effective March
2011)

108. Role of Government
• Policy-Maker
• Regulator
• Program Administrator
• Inspector
• Conciliator and Mediator
• Arbitrator or Arbiter or Adjudicator
• Enforcer

109. What is a Labor Organization?
• Definition – any union or association of
employees which exist in whole or in part
for the purpose of (a) collective bargaining
or (b) for dealing with employers
concerning terms and conditions of
employment.

110. What is a “legitimate” labor
organization?
• Definition – one which is duly registered
with the Department of Labor and
Employment.

111. What distinguishes a
legitimate labor organization?
• Right to represent its members for purposes of
collective bargaining.
• Right to be certified as exclusive representative
of all employees in bargaining unit for purposes
of collective bargaining
• To be furnished financial records
• To sue and be sued in its registered name
• To own property
• To undertake programs to benefit the org/
members

112. Requirements for Registration
• Registration fee
• Names of officers, their addresses, the
address of the org., minutes of org.
meeting and list of workers who
participated.
• Names of all members who comprise 20%
of all employees in the bargaining unit
where it seeks to operate.
• Annual financial records.
• Copies of constitution and by-laws

113. Purpose of registration
requirements
• To prevent fraud
• To protect members from unscrupulous or
fly by night unions.

114. Is the requirement for union
registration a violation of the
freedom to associate?
- Any group of employees may organize into
a union, even without registration.
- But registration is condition sine qua non
for the exercise of privileges.
- A group may not register but they cannot
avail of the rights of legitimate unions.
- Registration is an exercise of police powers
by the state because union is invested with
public interest.

115. Critical requirements to be able to
register
• Membership must be at least 20% of all
the employees in the bargaining unit.

116. What is a bargaining unit?
• It is a group or cluster of jobs or positions
that supports the labor organization which
is applying for registration.
• Test whether the bargaining unit is
appropriate-if it will best assure to all
employees the exercise of their collective
bargaining rights.

117. What is an employer unit?
• Refers to a case where there is only 1
bargaining unit for all the employees of the
company.
• Purpose why the employer unit is
encouraged by the state.

118. Another way of organizing as a
labor union
• Affiliation as a chapter of an existing labor
federation or a national union.
• What is a labor federation or national
union?

119. Duty of an employer when workers
organize
• Self-organization is a constitutional right.
Therefore, the company must respect the
right of employees to organize.

120. Penalty for infringing on the right to
unionize
• Unfair labor practice is a prohibited act.
• It is considered a criminal offense.
• Penalty includes imprisonment and
payment of fine.

121. What happens when a union is
organized/registered?
• It becomes entitled to the privileges of a
legitimate labor organization.
• But it is not automatically a bargaining
agent or majority representative.
• To be a bargaining agent, it needs to be
certified that it is the exclusive bargaining
agent.

122. What is needed to be Certified as a
Bargaining Agent?
• It must win a certification election; or,
• It is voluntarily recognized by the
employer; or,
• It is selected by the employees through a
consent election.

123. What is a Certification Election
(CE)?
• It is a process by which the members of a
bargaining unit chooses one among
contending unions to be its exclusive
bargaining agent.
• Non-adversarial
• Fact-Finding
• Administered by DOLE

124. Important things related to CE
Who can participate in Certification
Election?
Role of Employer in a Certification
Election: Neutral Observer.

125. When a union fights in a CE and
loses, does it mean that it does
not have any more duty to its
members?
• It continues to represent its members
but it does not have the right to engage
in collective bargaining.

126. What is the importance of being a
bargaining agent?
• A bargaining agent possesses the right, by
law, to demand from the employer that it
negotiates with it (union) terms and
conditions of employment, including
wages, hours of work, and rates of pay.

127. Product of Bargaining
• A collective bargaining agreement or CBA,
if the union is able to have an agreement
with the employer about its proposed
terms and conditions of employment.

128. Recourse of Union in the event of
failed negotiations
• It can engage in strike.
• It can engage in other concerted activities.
• All of which are protected by law if no
criminal act attends the holding of said
actions.

129. Thank You!
• “Do not twist JUSTICE in legal
matters by favoring the poor or
being partial to the rich and
powerful. Always judge people
fairly.”
– LEVITICUS 19:15 (Bible, New Living
Translation)