labor law review - atty v duano

8/17/2019 Labor Law Review - Atty v Duano

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INTRODUCTION

• LABOR means physical toil

• SALARY came from the Greek word “Salarium” which means salt

•

LABOR STA!AR!S " minimum re#uirements prescri$ed $y e%istin& laws'rules and re&ulations relatin& to hours of work' cost of li(in& allowance andother monetary and welfare $ene)ts includin& occupational' safety andhealth standards

• LABOR R*LAT+OS

KINDS OF LABOR LAWS+, LABOR STA!AR!S LA-S

Laws' rules and re&ulations that set the minimum re#uirementsfor terms and conditions of employment such as wa&es' hours of

work' etc

++, LABOR LA-S . SO/+AL L*G+SLAT+OSLaws' rules and re&ulations that promote welfare of all sectors of society, This includes laws that pro(ide particular kinds ofprotection or $ene)ts to the society' in furtherance of social

0ustice,

ot all social le&islation are la$or laws,

SOURCES OF LABOR LAWSI. 1987 Constitution

• Art ++' Sec 12Section 10. The State shall promote social justice in all

phases of national development.

• Art ++' Sec 13Section 18. The State arms labor as a primary socialeconomic force. It shall protect the rights of worers and

promote their welfare.

• Art 4++' Sec 15Section 1!. The State shall promote the preferential useof "ilipino labor# domestic materials and locally produced

goods# and adopt measures that help mae themcompetitive.

• Art 4+++' Sec 1

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 1 Atty 8oltaire !uano


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Section 1. The $ongress shall give highest priority to the

enactment of measures that protect and enhance the

right of all the people to human dignity# reduce social#

economic# and political ine%ualities# and remove cultural

ine%uities by e%uitably di&using wealth and political

power for the common good.

To this end# the State shall regulate the ac%uisition#

ownership# use# and disposition of property and its

increments.

• Art 4+++' Sec 9:

Section '. The State shall aford ull protection to

labor, local and overseas, organized and

unorganized, and promote ull employment and

equality o employment opportunities or all.

It shall guarantee the rights of all worers to self(

organi)ation# collective bargaining and negotiations# and

peaceul concerted activities, including the right to

strike in accordance with law. They shall be entitled to

security of tenure# humane conditions of wor# and a

living wage. They shall also participate in policy and

decision(maing processes a&ecting their rights andbene*ts as may be provided by law.

The State shall promote the principle o shared

responsibility between workers and employers and

the preerential use o voluntary modes in settling

disputes, including conciliation# and shall enforce their

mutual compliance therewith to foster industrial peace.

The State shall regulate the relations between worers

and employers# recogni)ing the right of labor to its just

share in the fruits of production and the right of

enterprises to reasonable returns to investments# and to

e+pansion and growth.



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*200 !ar "#am $uestion

,olicies which were not covered in the -abor $ode

• principle of shared responsibility between worers and employers and the

• preferential use of voluntary modes in settling disputes

• regulation of relations bet worers and employees

• creation of economic opportunities

*200% !ar "#am $uestion

The purpose of labor legislation.

• Art 4+++' Sec 1;Section 1/. The State shall protect woring women by

providing safe and healthful woring conditions# tainginto account their maternal functions# and such facilitiesand opportunities that will enhance their welfare andenable them to reali)e their full potential in the service ofthe nation.

/onstitutional


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Serrano (s Gallant @aritime Ser(ices' +nc, Thus Sec 9' Art 4+++ cannot $e treated as a principalsource of direct enforcea$le ri&hts' for the (iolationof which the #uestioned case may $e declaredunconstitutional, +t may unwittin&ly risk openin&the ood&ates of liti&ation to e(ery worker or union

o(er e(ery concei(a$le (iolation of so $road aconcept as social 0ustice for la$or,

II. Ci$i% Co! rt. 100. The relations between capital and labor are not merely contractual. They are so impressed with public interest that labor contracts must yield to the common good. Therefore# such contracts aresubject to the special laws on labor unions# collective bargaining# striesand locouts# closed shop# wages# woring conditions# hours of labor andsimilar subjects.

rt. 101. 2either capital nor labor shall act oppressively against the

other# or impair the interest or convenience of the public.

rt. 10!. In case of doubt# all labor legislation and all labor contractsshall be construed in favor of the safety and decent living for the laborer.

rt. 10'. 2o contract which practically amounts to involuntary servitude#under any guise whatsoever# shall be valid.

rt. 10/. In collective bargaining# the labor union or members of theboard or committee signing the contract shall be liable for non(ful*llment thereof.

rt. 103. The laborer4s wages shall be paid in legal currency.

rt. 105. 6ithholding of the wages# e+cept for a debt due# shall not bemade by the employer.

rt. 10. The laborer4s wages shall be a lien on the goods manufacturedor the wor done.

rt. 108. The laborer4s wages shall not be subject to e+ecution or attachment# e+cept for debts incurred for food# shelter# clothing andmedical attendance.

rt. 107. The employer shall neither sei)e nor retain any tool or other articles belonging to the laborer.

rt. 110. ismissal of laborers shall be subject to the supervision of the9overnment# under special laws.

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ; Atty 8oltaire !uano


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III. R!$is! &!n'% Co! rt. !88. :ther similar coercions; The penalty of arrestomayor or a *ne ranging from !00 to 300 pesos# or both# shall be imposed

upon any person# agent or ocer# of any association or corporation whoshall force or compel# directly or indirectly# or shall nowingly permit any laborer or employee employed by him or by such *rm or corporation to beforced or compelled# to purchase merchandise or commodities of any ind.

The same penalties shall be imposed upon any person who shall pay thewages due a laborer or employee employed by him# by means of toensor objects other than the legal tender currency of the laborer or employee.

BASES OF LABOR LAWS+,


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constitutionality.?


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The policy of social justice is not intended to countenance wrongdoingsimply because it is committed by the underprivileged. t best it may mitigate the penalty but it certainly will not condone the o&ense.$ompassion for the poor is an imperative of every humane society but only when the recipient is not a rascal claiming an undeserved

privilege. Social justice cannot be permitted to be refuge of scoundrels

any more than can e%uity be an impediment to the punishment of theguilty. Those who invoe social justice may do so only if their handsare clean and their motives blameless and not simply because they happen to be poor. This great policy of our $onstitution is not meant for the protection of those who have proved they are not worthy of it#lie the worers who have tainted the cause of labor with theblemishes of their own character.

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- D Atty 8oltaire !uano


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TE LABOR CODE OF TE &ILI&&INES

LABOR STANDARDSBook +


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LABOR LAW RE0IEW

A. FUNDA(ENTAL &RINCI&LES &OLICIES1. Constitution'% &ro$isions

'. Arti"%! II

Section 7. The State shall promote a just and dynamic

social order that will ensure the prosperity and

independence of the nation and free the people from

poverty through policies that provide ade%uate social

services# promote full employment# a rising standard of

living# and an improved %uality of life for all.

Section 10. The State shall promote social justice in all

phases of national development.

Section 11. The State values the dignity of every human

person and guarantees full respect for human rights.

Section 1'. The State recogni)es the vital role of the

youth in nation(building and shall promote and protect

their physical# moral# spiritual# intellectual# and social

well(being. It shall inculcate in the youth patriotism and

nationalism# and encourage their involvement in public

and civic a&airs.

Section 1/. The State recogni)es the role of women in

nation(building# and shall ensure the fundamental

e%uality before the law of women and men.

Section 18. The State arms labor as a primary social

economic force. It shall protect the rights of worers and

promote their welfare.

Section !0. The State recogni)es the indispensable role of

the private sector# encourages private enterprise# and

provides incentives to needed investments.

2. Arti"%! III

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- E Atty 8oltaire !uano


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Section 1. 2o person shall be deprived of life# liberty# or

property without due process of law# nor shall any person

be denied the e%ual protection of the laws.

Section /. 2o law shall be passed abridging the freedom

of speech# of e+pression# or of the press# or the right ofthe people peaceably to assemble and petition the

government for redress of grievances.

Section 8. The right of the people# including those

employed in the public and private sectors# to form

unions# associations# or societies for purposes not

contrary to law shall not be abridged.

". Arti"%! 3III

Section 1. The $ongress shall give highest priority to the

enactment of measures that protect and enhance the

right of all the people to human dignity# reduce social#

economic# and political ine%ualities# and remove cultural

ine%uities by e%uitably di&using wealth and political

power for the common good.

To this end# the State shall regulate the ac%uisition#

ownership# use# and disposition of property and its

increments.

Section '. The State shall aford ull protection to

labor, local and overseas, organized and

unorganized, and promote ull employment and

equality o employment opportunities or all.

It shall guarantee the rights of all worers to self(

organi)ation# collective bargaining and negotiations# and peaceul concerted activities, including the right to

strike in accordance with law. They shall be entitled to

security of tenure# humane conditions of wor# and a

living wage. They shall also participate in policy and



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decision(maing processes a&ecting their rights and

bene*ts as may be provided by law.

The State shall promote the principle o shared

responsibility between workers and employers and

the preerential use o voluntary modes in settling

disputes, including conciliation# and shall enforce their

mutual compliance therewith to foster industrial peace.

The State shall regulate the relations between worers

and employers# recogni)ing the right of labor to its just

share in the fruits of production and the right of

enterprises to reasonable returns to investments# and to

e+pansion and growth.

4. N!5 Ci$i% Co!

'rt. ()00. The relations between capital and labor are not merely

contractual. They are so impressed with public interest that labor

contracts must yield to the common good. Therefore# such contracts

are subject to the special laws on labor unions# collective bargaining#

stries and locouts# closed shop# wages# woring conditions# hours of

labor and similar subjects.

'rt. ()0(. 2either capital nor labor shall act oppressively against the

other# or impair the interest or convenience of the public.

'rt. ()02. In case of doubt# all labor legislation and all labor contracts

shall be construed in favor of the safety and decent living for the

laborer.

'rt. ()0&. 2o contract which practically amounts to involuntary

servitude# under any guise whatsoever# shall be valid.



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'rt. ()0. In collective bargaining# the labor union or members of the

board or committee signing the contract shall be liable for non(

ful*llment thereof.

'rt. ()0+. The laborer4s wages shall be paid in legal currency.

'rt. ()0%. 6ithholding of the wages# e+cept for a debt due# shall not

be made by the employer.

'rt. ()0). The laborer4s wages shall be a lien on the goods

manufactured or the wor done.

rt. 108. The laborer4s wages shall not be subject to e+ecution or

attachment# e+cept for debts incurred for food# shelter# clothing and

medical attendance.

rt. 107. The employer shall neither sei)e nor retain any tool or other

articles belonging to the laborer.

rt. 110. ismissal of laborers shall be subject to the supervision of

the 9overnment# under special laws.

6. L'2or Co!a, Article 9

Article 3. Declaration of basic policy. The State shall afford protection to

labor, promote full employment, ensure equal work opportunities regardless

of sex, race or creed and regulate the relations between workers and

employers. The State shall assure the rights of workers to self-organization,

collectie bargaining, security of tenure, and !ust and humane conditions of

work.

$, Article 511

Article 211. Declaration of "olicy.



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#t is the policy of the State$

To promote and emphasize the primacy of free collectie bargaining and

negotiations, including oluntary arbitration, mediation and conciliation, as

modes of settling labor or industrial disputes%

To promote free trade unionism as an instrument for the enhancement of

democracy and the promotion of social !ustice and deelopment%

To foster the free and oluntary organization of a strong and united labor

moement%

To promote the enlightenment of workers concerning their rights and

obligations as union members and as employees%

To proide an adequate administratie machinery for the expeditious

settlement of labor or industrial disputes%

To ensure a stable but dynamic and !ust industrial peace% and

To ensure the participation of workers in decision and policy-making

processes affecting their rights, duties and welfare.

To encourage a truly democratic method of regulating the relations between

the employers and employees by means of agreements freely entered into

through collectie bargaining, no court or administratie agency or official

shall hae the power to set or fix wages, rates of pay, hours of work or other

terms and conditions of employment, except as otherwise proided underthis &ode. '(s amended by Section ), *epublic (ct +o. /, 0arch 1,

2324

c, Article 515

Article 212. Definitions.

5&ommission5 means the +ational 6abor *elations &ommission or any of its

diisions, as the case may be, as proided under this &ode.

57ureau5 means the 7ureau of 6abor *elations and8or the 6abor *elations

Diisions in the regional offices established under "residential Decree +o.

, in the Department of 6abor.



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57oard5 means the +ational &onciliation and 0ediation 7oard established

under 9xecutie :rder +o. 1.

5&ouncil5 means the Tripartite ;oluntary (rbitration (disory &ouncil

established under 9xecutie :rder +o. 1, as amended.

59mployer5 includes any person acting in the interest of an employer,

directly or indirectly. The term shall not include any labor organization or any

of its officers or agents except when acting as employer.

59mployee5 includes any person in the employ of an employer. The term

shall not be limited to the employees of a particular employer, unless the

&ode so explicitly states. #t shall include any indiidual whose work has

ceased as a result of or in connection with any current labor dispute or

because of any unfair labor practice if he has not obtained any other

substantially equialent and regular employment.

56abor organization5 means any union or association of employees which

exists in whole or in part for the purpose of collectie bargaining or of

dealing with employers concerning terms and conditions of employment.

56egitimate labor organization5 means any labor organization duly

registered with the Department of 6abor and 9mployment, and includes any

branch or local thereof.

5&ompany union5 means any labor organization whose formation, function

or administration has been assisted by any act defined as unfair labor

practice by this &ode.

57argaining representatie5 means a legitimate labor organization whether

or not employed by the employer.

5


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effectiely recommend such managerial actions if the exercise of such

authority is not merely routinary or clerical in nature but requires the use of

independent !udgment. (ll employees not falling within any of the aboe

definitions are considered rank-and-file employees for purposes of this

7ook.

5;oluntary (rbitrator5 means any person accredited by the 7oard as such or

any person named or designated in the &ollectie 7argaining (greement by

the parties to act as their ;oluntary (rbitrator, or one chosen with or without

the assistance of the +ational &onciliation and 0ediation 7oard, pursuant to

a selection procedure agreed upon in the &ollectie 7argaining (greement,

or any official that may be authorized by the Secretary of 6abor and

9mployment to act as ;oluntary (rbitrator upon the written request and

agreement of the parties to a labor dispute.

5Strike5 means any temporary stoppage of work by the concerted action of

employees as a result of an industrial or labor dispute.

56ockout5 means any temporary refusal of an employer to furnish work as a

result of an industrial or labor dispute.

5#nternal union dispute5 includes all disputes or grieances arising from any

iolation of or disagreement oer any proision of the constitution and by

laws of a union, including any iolation of the rights and conditions of union

membership proided for in this &ode.

5Strike-breaker5 means any person who obstructs, impedes, or interferes

with by force, iolence, coercion, threats, or intimidation any peaceful picketing affecting wages, hours or conditions of work or in the exercise of

the right of self-organization or collectie bargaining.

5Strike area5 means the establishment, warehouses, depots, plants or

offices, including the sites or premises used as runaway shops, of the

employer struck against, as well as the immediate icinity actually used by

picketing strikers in moing to and fro before all points of entrance to and

exit from said establishment. '(s amended by Section =, *epublic (ct +o.

/, 0arch 1, 2324

d, Article 5

Article 255. 9xclusie bargaining representation and workers> participation

in policy and decision-making. The labor organization designated or

selected by the ma!ority of the employees in an appropriate collectie



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bargaining unit shall be the exclusie representatie of the employees in

such unit for the purpose of collectie bargaining. ?oweer, an indiidual

employee or group of employees shall hae the right at any time to present

grieances to their employer.

(ny proision of law to the contrary notwithstanding, workers shall hae theright, sub!ect to such rules and regulations as the Secretary of 6abor and

9mployment may promulgate, to participate in policy and decision-making

processes of the establishment where they are employed insofar as said

processes will directly affect their rights, benefits and welfare. @or this

purpose, workers and employers may form labor-management councils$

"roided, That the representaties of the workers in such labor-

management councils shall be elected by at least the ma!ority of all

employees in said establishment. '(s amended by Section 11, *epublic (ct

+o. /, 0arch 1, 2324

B. RECRUIT(ENT &LACE(ENT1. R!"ruit,!nt o Lo"'% (i)r'nt Wor!rs

a, D!nition o R!"ruit,!nt 'n &%'"!,!nt

rt 1'b -abor $ode. Decruitment and placement

Decruitment and placement refers to any act of canvassing#

enlisting# contracting# transporting# utili)ing# hiring or procuring

worers# and includes referrals# contract services# promising or

advertising for employment# locally or abroad# whether for pro*t

or not ,rovided# That any person or entity which# in any

manner# o&ers or promises for a fee# employment to two or

more persons shall be deemed engaged in recruitment and

placement.

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 1C Atty 8oltaire !uano


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$SE SSI92FE2T

eople vs -on. omingo anis

/acts Serapio bug was charged with illegal recruitment in /

criminal information. bug *led a motion to %uash these

information# contending that rt1'b of the -abor codes provides

that there shall be illegal recruitment only if recruitment and

placement was committed against two or more persons.

The :ce of the Solicitor 9eneral argued that the

re%uirement that there should be two or more persons if the

recruitment consists of an o&er or promise of employment to such

persons and always for a fee.

1ssue 6hether or not the clause Gtwo or more personsH should

be construed as a re%uirement for the commission of illegalrecruitment

uling The S$ held

G++ The proviso merely lays down a rule of

evidence that where a fee is collected in

consideration of a promise or o&er of

employment to two or more prospective

worers# the individual or entity dealing with

a License (s Authority

3icense is a document issued $y the !OL* authori?in& a

person or entity to operate a pri(ate recruitment

employment a&ency, A licensee is authori?ed to collect

fees,

'uthority is a document issued $y the !OL* authori?in&

a person or association to en&a&e in recruitment and

placement acti(ities as a pri(ate recruitment a&ency,

$ *ssential *lements of +lle&al Recruitment

GIt is well settled that to prove illegal recruitment# it must

be shown that appellant gave complainants the distinct

impression that he had the power or ability to send

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- 1D Atty 8oltaire !uano


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complainants abroad for wor such that the latter were

convinced to part with their money in order to be

employed. ppellants act of promising the private

complainants that they will be deployed abroad within

three months after they have paid the cash bond clearly

shows that he is engaged in illegal recruitment.H J ,eoplevs 9asacao

45o prove illegal recruitment, only two elements

need to be shown 6(7 the person charged with the

crime must have undertaken recruitment activities

and 627 the said person does not have a license or

authority to do so.8 9 eople vs de 3eon, /eb ),

()

45here is illegal recruitment when one gives the

impression o aving the ability to send a worker abroad.8 9eople vs :oce, 'ug 2, (+

'rticle &;. Illegal recruitment.

ny recruitment activities# including the prohibited

practices enumerated under rticle '/ of this $ode# to be

undertaen by non(licensees or non(holders of authority#

shall be deemed illegal and punishable under rticle '7 of this $ode. The epartment of -abor and Employment or

any law enforcement ocer may initiate complaints

under this rticle.

Illegal recruitment when committed by a syndicate or in

large scale shall be considered an o&ense involving

economic sabotage and shall be penali)ed in accordance

with rticle '7 hereof.

Illegal recruitment is deemed committed by a syndicate if

carried out by a group of three


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committed against three


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matters or information as may be re%uired by the

Secretary of -abor.

To substitute or alter employment contracts approved and

veri*ed by the epartment of -abor from the time of

actual signing thereof by the parties up to and includingthe periods of e+piration of the same without the approval

of the Secretary of -abor;

To become an ocer 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

To withhold or deny travel documents from applicant

worers before departure for monetary or *nancial

considerations other than those authori)ed under this

$ode and its implementing rules and regulations.

R,A, 32;5' as amended $y RA 12255

Sec, 5. E"I2ITI:2S. "or purposes of this ct# illegalrecruitment shall mean any act of canvassing# enlisting#contracting# transporting# utili)ing# hiring# procuringworers and includes referring# contact services#

promising or advertising for employment abroad# whether for pro*t or not# when undertaen by a non(license or non(holder of authority contemplated under rticle 1'


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considerations other than those authori)ed under the-abor $ode and its implementing rules and regulations;


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carrying out any unlawful or illegal transaction#

enterprise or scheme de*ned under the *rst paragraph

hereof. Illegal recruitment is deemed committed in large

scale if committed against three


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against appellants acts of illegal recruitment# thereby

rendering his acts tantamount to economic sabotage.

Nnder Section


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elements of estafa were


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Award in case of premature termination> 7ull reim$ursement of the O7-s placement fee with

15M interest per annumH 'no I t:! "ontr'"t is 2!%o5 on! *!'r- t:!

s'%'ri!s or t:! !ntir! un!;pir! portiono t:! "ontr'"t s:'%% 2! p'i< ORo I t:! "ontr'"t 5's or on! *!'r 'n

,or!- t:! s'%'ri!s or t:! un!;pir!

portion o t:! "ontr'"t OR t:r!! =6>

,ont:s p'* or !$!r* *!'r o t:!

un!;pir! portion 5:i":!$!r is %!ss.

>A5" Accd& to our lecture' for this is to

apply' the contract was terminated after

ser(ice of more than a year,

The followin& case are of worth to determine

the applica$ility of the pro(isions of RA 32;5

in award of money claims of preterminated

O7-s>

@arsaman @aritime A&ency (s LR/'

Au& 1EEE Serrano (s Gallant @aritime Ser(ices'

@arch 522E Yap (s Thenamaris ShipFs @&t' 5211

SkipperFs (s Sereno' 7e$ruary 5215


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CASE

TITLE

CONTRAC

T DETAILS

DATE OF

TER(INAT

ION OF

E(&LO?EE

DATE OF

JUD/(EN

T

WAT WAS

A&&LIED

AND OW

W?

@arsaman

@aritime

A&ency (s

LR/

-ifredo /a0eras

/ontract

of 12 months

Terminated>

Less than 5months after

$ein& on $oard,

Sept 5' 1EE

Au&ust 1EEE RA 32;5,

Award for the

une%pired

portion of the

contract $ecause

the contract was

less than one

year,

Because RA 32;5 was

eNecti(e at that time/a0eras was dismissed,

“-e a&ree with

petitioners that Sec, 12'

RA 32;5' applies in the

case of pri(ate

respondent and to all

o(erseas contract

workers dismissed on or

after its eNecti(ity on 1

uly 1EE”

Serrano (s

Gallant

@aritime

Ser(ices

Antonio Serrano

/ontract period>1year

!> /hief Ocer

$ut was

down&raded to

second ocer

Terminated> 5

months and D

days after $ein&

on $oard

@ay 5C' 1EE3

@arch 5;'

522E

AWARDED his

salaries for the

entire une%pired

portion of his

employment

contract consistin&

of nine months and

59 days computed

The pro(ision was

declaredUNCONSTITUTIONAL

$ecause it creates

disparity amon& the O7-

with less than 1 year as

a&ainst those for more

than 1 year, The

pro(ision was stated to

$e a suspect

classi)cation (iolati(e of

the /onstitutional

mandate of e#ual

protection clause, Yap (s

Thenamar

is ShipFs@&t

/laudio Yap

/ontract

1 year from Au&

1;' 5221

!> *lectrician

Terminated>

o( 12' 5221

@ay 92' 5211 Serrano rulin&

was applied,

As a &eneral rule' an

unconstitutional act isnot a lawH it confers no

ri&htsH it imposes no

dutiesH it aNords no

protectionH it creates no

oceH it is inoperati(e as

if it has not $een passed

at all,

The doctrine of operati(e

fact ser(es as an

e%ception to the

aforementioned &eneral

rule, The doctrine is

applica$le when adeclaration of

unconstitutionality will

impose an undue $urden

on those who ha(e relied

on the in(alid law,7ollowin& Serrano' we

hold that this case

should not $e included in



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the aforementioned

e%ception, After all' it

was not the fault of

petitioner that he lost his

0o$ due to an act of

ille&al dismissal

committed $y

respondents, To ruleotherwise would $e

ini#uitous to petitioner

and other O7-s' and

would' in eNect' send a

wron& si&nal that

principalsJemployers and

recruitmentJmannin&

a&encies may (iolate an

O7-Fs security of tenure

which an employment

contract em$odies and

actually pro)t from such

(iolation $ased on an

unconstitutionalpro(ision of law,

SkipperFs

(s Sereno

ame>

apoleon O,

!e Gracia

/ontract

!uration> 12

months/ontract !ate>

1D uly 1EE3

9rd *n&ineer

ame> +sidro

L, Lata

!uration> 15

months

;th *n&ineer

/ontract/ontract !ate>

1D April 1EE3

ame> /harlie

A, Aprosta

/ontract

!uration> 15

months

Third

Ocer

/ontract !ate>

1D April 1EE3

anuary 53'

1EEE

7e$ 3' 5215 Serrano !octrine

as a&ainst RA

32;5' as

PA@*!*!

Since the termination

occurred on anuary

1EEE $efore the passa&e

of the amendatory RA

12255' we shall apply RA

32;5' as unamended'

without touchin& on the

constitutionality of

Section D of RA 12255,

The declaration in @arch522E of the

unconstitutionality of the

clause “or for three

months for e(ery year of

the une%pired term'

whiche(er is less” in RA

32;5 shall $e &i(en

retroacti(e eNect to the

termination that

occurred in anuary 1EEE

$ecause an

unconstitutional clause

in the law confers no

ri&hts' imposes no dutiesand aNords no

protection, The

unconstitutional

pro(ision is inoperati(e'

as if it was not passed

into law at all,


40/75

(s 8enly

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;2 Atty 8oltaire !uano


41/75

$, +lle&al Recruitment' Art 93' Sec C @i&rant -orkers Act

'rticle &;. Illegal recruitment.

ny recruitment activities# including the prohibited practices

enumerated under rticle '/ of this $ode# to be undertaen by

non(licensees or non(holders of authority# shall be deemed

illegal and punishable under rticle '7 of this $ode. The

epartment of -abor and Employment or any law enforcement

ocer may initiate complaints under this rticle.

Illegal recruitment when committed by a syndicate or in large

scale shall be considered an o&ense involving economic

sabotage and shall be penali)ed in accordance with rticle '7

hereof.

Illegal recruitment is deemed committed by a syndicate if

carried out by a group of three


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43/75


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4. R!)u%'tion 'n Enor"!,!nt

a, Remittance of 7orei&n *%chan&e earnin&s

'rticle 22. Fandatory remittance of foreign e+change

earnings. It shall be mandatory for all "ilipino worers abroad to

remit a portion of their foreign e+change earnings to their

families# dependents# andKor bene*ciaries in the country in

accordance with rules and regulations prescribed by the

Secretary of -abor.

".A. ;+)

1. To protect the welfare of the families# dependents and other

bene*ciaries of :"6;

!. To ensure that the remittances are channeled throughauthori)ed *nancial institutions; and

'. To help the government in their economic development

programs.

ate o emittances

Seafarers a d Fariners 80 of

Basic salary $onstruction companies and worers 0 of

Basic Salary ,rofessional 6orers 0 of

Basic Salary ,rofessional 6orers wKo Board U -odging 30 of

Basic Salary omestic U other service worers 30 of

Basic Salary ll other worers 30 of Basic

Salary

Demittance ,rocedure

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;; Atty 8oltaire !uano

Open Bank Acct prior to

departure,


45/75

roo o


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To inLuence or to attempt to inLuence any person or entity

not to employ any worer who has not applied for

employment through his agency;

To engage in the recruitment or placement of worers in

jobs harmful to public health or morality or to the dignity of the Depublic of the ,hilippines;

To obstruct or attempt to obstruct inspection by the

Secretary of -abor or by his duly authori)ed

representatives;

To fail to *le reports on the status of employment#

placement vacancies# remittance of foreign e+change

earnings# separation from jobs# departures and such other

matters or information as may be re%uired by the Secretary of -abor.

To substitute or alter employment contracts approved and

veri*ed by the epartment of -abor from the time of actual

signing thereof by the parties up to and including the

periods of e+piration of the same without the approval of

the Secretary of -abor;

To become an ocer 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

To withhold or deny travel documents from applicant

worers before departure for monetary or *nancial

considerations other than those authori)ed under this $ode

and its implementing rules and regulations.

c, Re&ulatory and 8isitorial


47/75

details of job re%uisitions# separation from jobs# wages# other

terms and conditions and other employment data.

'rticle &+. Suspension andKor cancellation of license or

authority. The Finister of -abor shall have the power to suspend

or cancel any license or authority to recruit employees for overseas employment for violation of rules and regulations

issued by the Finistry of -abor# the :verseas

Employment evelopment Board# or for violation of the

provisions of this and other applicable laws# 9eneral :rders and

-etters of Instructions.

'rticle &%. Degulatory power. The Secretary of -abor shall have

the power to restrict and regulate the recruitment and

placement activities of all agencies within the coverage of this

Title and is hereby authori)ed to issue orders and promulgate

rules and regulations to carry out the objectives and implement the provisions of this Title.

'rticle &). isitorial ,ower. The Secretary of -abor or his duly

authori)ed representatives may# at any time# inspect the

premises# boos of accounts and records of any person or entity

covered by this Title# re%uire it to submit reports regularly on

prescribed forms# and act on violation of any provisions of this

Title.

d,

+mprisonment of not less than 15 yrs and 1 day to

not more than 52 yrsH and7ine of not less than 1@ to not more than 5@,

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;D Atty 8oltaire !uano


48/75

e, &'*,!nt o C%'i,s o OFWs in "'s! o i%%!)'%

t!r,in'tion

RA 32;5 pro(ides that the in case of ille&al termination of

O7-' the award shall $e>

Republic of the PhilippinesDEPARTMENT OF LABOR AND EMPLOYMENT

Intramuros Manila

R!LE" AND RE#!LATION" #O$ERNIN# PRI$ATERE%R!ITMENT AND PLA%EMENT A#EN%Y

FOR LO%AL EMPLOYMENT

By virtue of the authority vested in the Secretary of Labor and Employment under Article 25 of the Labor Code of the Philippines, as amended, the followin revised rules and reulations are hereby promulatedto overn and reulate the activities of all individuals and entities enaed in the recruitment and

placement of persons for local employment!

Rule I

DEFINITION" OF TERM"

"E%TION &' Definition of Terms

a! Department " refers to the #epartment of Labor and Employment!

b! "ecretar( " refers to the Secretary of Labor and Employment!

c! Bureau " refers to the Bureau of Local Employment!

d! Re)ional Office " refers to the $eional %ffices of the #epartment!

e! District*Pro+incial Office " refers to the e&tension offices of the #epartment!

f! Re)ional Director " refers to the #irector of the $eional %ffice!

! Pri+ate Recruitment an, Placement A)enc( -PRPA. or A)enc( " refers to any

individual,' partnership, corporation or entity enaed in the recruitment and placement of

persons for local employment!

h! PRPA Branch " refers to any e&tension office of a licensed P$PA!

i! Representati+e " refers to a person actin as an aent of a licensed P$PA reistered with

the $eional %ffice and ranted Authority in the recruitment of persons for local

employment!

(! Recruitment an, Placement " refers to any act of canvassin, enlistin, contractin,

transportin, utili)in, hirin or procurin wor*ers, and includes referrals, contract

services, promisin or advertisin for local employment, whether for profit or not+

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;3 Atty 8oltaire !uano


49/75

provided, that any person or entity which in any manner, offers or promises employment

for a fee, to two or more persons shall be deemed enaed in recruitment and lacement!

*! Recruit " refers to any individual promised, contracted, or enlisted for employment for a

fee!

l! License " refers to the certificate issued by the #epartment authori)in an individual,

partnership, corporation, or entity to operate a private recruiment and placement aency!

m! Authorit( to Operate Branch Office " refers to the document ranted by the #epartment

authori)in the licensed P$PA to establish and operate a branch office!

n! Authorit( to Recruit " refers to the document ranted by the $eional %ffice authori)in a

person to conduct recruitment activities in the reion!

o! Licensee " refers to any person or entity duly licensed and authori)ed by the #epartment

to operate a private recruitment and placement aency!

p! Recruitment %ontract " refers to the areement entered into between a licensed P$PA or

its authori)ed representative and a recruit statin clearly the terms and conditions of therecruitment in a lanuae *nown and understood by the recruit!

! Emplo(ment %ontract " refers to the areement entered into between the employer and

a recruit statin clearly the terms and conditions of the employment in a lanuae *nown

and understood by the recruit!

r! Placement Fee " refers to the amount chared by a P$PA from a recruit as payment for

placement services!

s! "er+ice Fee " refers to the amount chared by a P$PA from an employer as payment for

employment services!

Rule II

APPLI%ATION * RENE/AL OF LI%EN"E OF PRI$ATE RE%R!ITMENT AND PLA%EMENT A#EN%Y

"ection 0' 1ualifications 2 An applicant for a license to operate a private recruitment and placement

aency must possess the followin-

a! .ust be a /ilipino citi)en, if sinle proprietorship! 0n case of partnership or a corporation, at

least seventy1five percent 354 of the authori)ed capital stoc* must be owned and

controlled by /ilipino citi)ens+

b! .ust have a minimum networth of P266,666!66 in the case of sinle proprietorship and

partnership or a minimum paid1up capital of P566,666!66 in the case of a corporation!

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- ;E Atty 8oltaire !uano


50/75

c! 7he owner, partners or the officers of the corporation must be of ood moral character and

not otherwise disualified by law+

d! .ust have an office space with a minimum floor area of fifty 56 suare meters!

"E%TION 3' Place to File application' Application for license shall be filed with the $eional %ffice

havin (urisdiction over the place where the applicant wishes to establish its main office!

"E%TION 4' Re5uirements for Application! 7he applicant for a license shall submit a duly

accomplished application form, and in support thereof, the followin reuirements-

a! A filin fee of %ne 7housand Pesos P8666!66+ if sinle proprietor+ and P9,666 if

corporation or partnership+

b! Certified copy of the Certificate of $eistration of firm or business name from the

#epartment of 7rade and 0ndustry #70, in the case of sinle proprietorship+ or a certified

copy of the Articles of Partnership or 0ncorporation duly reistered with the Securities andE&chane Commission SEC, in the case of a partnership or a corporation+

c! A sworn statement of assets and liabilities and:or a duly audited financial statement, as

the case may be+

d! %wner;s certificate:title of office location or contract of lease of office space for at least two

2 years+

e!


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52/75

convicted by the reular courts for violation of the Labor Code, as amended, and its implementin $ules,

or if its license has been previously revo*ed!

"E%TION &0' Re5uirements for Rene


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"E%TION &8' Action on the Application for the Issuance*Rene


54/75

above, to the $eional %ffice or the appropriate Provincial:#istrict %ffice where

recruitment was underta*en for appropriate authentication and alidation% copies of

these documents shall be furnished the *egional :ffice of destination of the recruit.

e! After the recruitment activity, the $eional %ffice of oriin shall issue a certification to

the Aency or its duly authori)ed representative that the recruitment activity has been in

accordance with this $ule, copy furnished the .arine Police:Coast uard:Philippine


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"E%TION 04' Establishment of Branch Office! 7he application to establish a branch office shall be filed

with the $eional %ffice havin (urisdiction over the place where the branch office is to be established!

"E%TION 06' Re5uirements! A licensee who desires to establish a branch office shall submit the

followin reuirements-

a! /ilin fee of %ne 7housand Pesos P8666!66+

b! Certified copy of the current license+

c! %rani)ational structure of the branch office, includin duly notari)ed appointments+

d! 66!66 as payment for the issuance of a

certified copy of the authority upon presentation of proof of loss!

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- Atty 8oltaire !uano


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"E%TION 09' $ali,it( of the Authorit(! 7he authority to operate branch office shall be coterminous with

the validity of the license of the Aency sub(ect for renewal upon submission of the oriinal authority and

reuirements provided for under Section 25 hereof as well as the oriinal authority!

R!LE $

PLA%EMENT FEE "ER$I%E FEE AND OT=ER %=AR#E"

"E%TION 0:' Placement Fee! A licensed P$PA may chare wor*ers a placement fee which shall not

e&ceed twenty percent 264 of the wor*er;s first month;s basic salary+ in no case shall such fee be

chared prior to the actual commencement of employment!

"E%TION 3;' "er+ice Fee! A licensed P$PA may chare employers a service fee which shall not

e&ceed twenty percent 264 of the annual basic salary of the wor*er! 0n no case shall the service fee be

deducted from the wor*er;s salary!

"E%TION 3&' Transportation! 7ransportation e&penses of the wor*er from the place of oriin to the

place of wor* shall be chared aainst the employer, and shall in no case be deducted from the wor*er;s

salary!

"E%TION 30' Issuance of Official Receipt! All payments made or fees collected by a licensed Aency

shall be covered by an official receipt indicatin the amount paid and the purpose of such payment!

R!LE $I

"!"PEN"ION RE$O%ATION*%AN%ELLATION OF LI%EN"E

"E%TION 33' #roun,s for "uspension of a License! Any of the followin shall constitute a round for

suspension of a license-

a! violation of any of the provisions of Sections 3,89, or 8 of these $ules+

b! violation of #epartment %rder 8 of these $ules+

e! charin or acceptin directly or indirectly, any amount in e&cess of what is prescribed

by these $ules+

f! disreard of lawful orders and notices issued by the Secretary or his duly authori)ed

representative+ or

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- C Atty 8oltaire !uano


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! non1observance of the procedures on recruitment as stated in Section 26 of these

$ules!

"E%TION 34' #roun,s for %ancellation*Re+ocation of a License! Any of the followin shall constitute

a round for the cancellation:revocation of license-

a! violation:s of the conditions of license+

b! enain an act or acts of misrepresentation for the purpose of securin a license or

renewal thereof+

c! continuous operation despite due notice that the license has e&pired+

d! incurrin two 2 suspensions by a P$PA based on final and e&ecutory orders+

e! enain in labor1only contractin as defined in Article 86> of the Labor Code, as

amended+

f! recruitment and placement of wor*ers in violation of $epublic Act 86 as amended

by $epublic Act 5=+! transferrin, conveyin or assinin of license:authority to any person or entity other

than the one in whose favor it was issued+

h! violation of any of the provisions, particularly, Article 9 of the Labor Code, as amended,

and its 0mplementin $ules and $eulations!

"E%TION 36' Table of Penalties an, Fines' 7he commission of any of the aforecited rounds for

suspension, cancellation:revocation shall merit imposition of fine and penalties provided in the herein

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- D Atty 8oltaire !uano


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$ules and $eulations -

7he Aency is (ointly and severally liable to any violation or illeal act committed by its

branch!

R!LE $II

=EARIN# AND DI"PO"ITION OF RE%R!ITMENT $IOLATION AND RELATED %A"E"

"E%TION 37' %omplaints A)ainst A)enc(! Complaints based on any of the rounds enumerated under

the previous Sections aainst a licensee:and or the authori)ed representative:s shall be filed in writin

and under oath with the $eional:#istrict:Provincial %ffice havin (urisdiction over the place where the

P$PA:Branch %ffice is located, or where the prohibited act was committed, or at complainant;s place of

residence, at the option of the complainant+ provided, that the $eional %ffice which first acuires

(urisdiction over the case shall do so to the e&clusion of the others!

"E%TION 38' %aption an, Title! 7he complaint shall be filed in accordance with the followin caption-

$epublic of the Philippines

#epartment of Labor and Employment

$eional %ffice


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$espondent:s!

G 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 &

11

"E%TION 39' %ontents of %omplaint! All complaints shall be under oath to be administered by any

officer authori)ed by law and must contain, amon others the followin-

a! 7he name:s and address:es of the complainant:s+

b! 7he name:s and address:es of the respondent:s+

c! 7he nature of the complaint+

d! 7he substance, cause:rounds of the complaint+

e! @hen and where the action complained of happened+

f! 7he amount of claim, if any+ and

! 7he relief:s souht!

All pertinent papers or documents in support of the complaint must be attached whenever possible!

"E%TION 3:' Doc>et an, Assi)nment of %ases! Complaints duly received shall be doc*eted and

numbered and shall be scheduled for hearin within ten 86 wor*in days!

"E%TION 4;' Ans


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submit his return within five 5 wor*in days from the date of his service thereof, statin leibly in his

return his name, the mode:s of service, the name:s of the other person:s served and the date:s of receipt!

0f no service was effected, the servin officer shall state the reason therefor! 7he return shall form part of

the records of the case!

"E%TION 44' Failure or Refusal to Obe( "ubpoena Duces Tecum an, "ubpoena A, Testifican,um !

7he license of an aency who fails or refuses to obey the subpoena duces tecum:subpoena ad

testificandum, shall be suspended until compliance of the directive of the $eional #irector! 7his is

without pre(udice to the outcome of the investiation wherein the proper penalty may be imposed!

"E%TION 46' Proof an, %ompleteness of "er+ice ! 7he return is prima facie proof of the facts stated

herein! Service by reistered mail is completed upon receipt of the addressee or aent+ but if the

addressee or aent fails to claim his mail from the post office within five 5 wor*in days from date of last

notice of the postmaster, service shall ta*e effect after such time!

"E%TION 47' Authorit( to Initiate %larif(in) 1uestions ! At any stae of the proceedins and prior to

the submission by the parties of the case for resolution, the $eional %ffice may initiate clarificatory

uestions to further elicit facts or information, includin but not limited to the subpoena of relevant

documentary evidence!

"E%TION 48' "ummar( @u,)ment! Should the $eional #irector find upon consideration of the

answers, counter1affidavits and evidence submitted, that r esolution:decision may be rendered thereon,

the case shall be deemed submitted for decision!

"E%TION 49' Nature of Procee,in)s! 7he proceedins before the $eional %ffice shall be non1litiious

in nature! Sub(ect to the reuirements of due process, the technicalities of and procedure and rules

obtainin in the courts of law shall not strictly apply thereto! 7he $eional #irector may avail himself of all

reasonable means to ascertain the facts of the case, includin ocular inspection, where appropriate, and

e&amination of informed persons!

"E%TION 4:' Effects of /ith,ra


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"E%TION 6;' Effects of "ettlement! At any stae of the proceedins, the parties may submit a

Compromise Areement sub(ect to the approval of the $eional %ffice!

"E%TION 6&' Resolution of the %ase! 7he conduct of hearins shall be terminated within fifteen 85

wor*in days from the first scheduled hearin! 7he $eional #irector shall resolve the case within ten

86 wor*in days from the time the case is deemed submitted for decision!

"E%TION 60' "uspension of License Pen,in) In+esti)ation ! Pendin investiation of a complaint

leadin to the cancellation:revocation of license, the $eional #irector, who is hearin the case, may

suspend the license of the P$PA concerned on any of the followin rounds-

a! 7here e&ist reasonable rounds to believe that the continued operation of the Aency

will lead to further violation or e&ploitation of the wor*ers bein recruited+

b! /ailure of the licensed P$PA to submit its Position Paper:Answer on the complaint

within the prescribed period+c! /ailure to attend the hearin despite due notice called by the $eional %ffice+

d! /ailure or refusal to obey subpoena duces tecum and subpoena ad testificandum

issued by the $eional #irector+ and

e! "rima facie evidence shows that the Aency has violated and continues to violate any

of the provisions of the Labor Code, as amended, its 0mplementin

$ules and $eulations on the recruitment and placement of wor*ers!

"E%TION 63' "uspension* %ancellation of License! 1 7he $eional #irector who issued the license

shall have the power to suspend: cancel the license of the Aency!

"E%TION 64' Effects of Or,ers of "uspension*%ancellation or Re+ocation' " An order of

suspension:cancellation or revocation shall have the effect of suspendin or terminatin all activities of

the Aency which fall under the definition of recruitment and placement! 7he $eional %ffice may see*

the assistance of other overnment institutions, aencies or offices to ensure that suspension or

cancellation orders are implemented!

"E%TION 66' "uppletor( Application of the Rules of %ourt! 0n the absence of any applicable

provisions of these $ules, the pertinent provisions of the $ules of Court may be applied in a suppletory

character!

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- C5 Atty 8oltaire !uano


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"E%TION 67' Appeal! #ecision of the $eional #irector is appealable to the Secretary within ten 86

wor*in days from receipt of a copy of the order, on any of the followin rounds-

a! 0f there is prima facie evidence of abuse of discretion on the part of the $eional

#irector+

b! 0f the decision and:or award was secured throuh fraud or coercion+

c! 0f made purely on uestions of law+ and:or

d! 0f serious errors in the findins of facts are raised which, if not corrected, would cause

rave or irreparable damae or in(ury to the appellant! 7he appeal shall be filed with the

%ffice of the Secretary, copy furnished the $eional %ffice, issuin the %rder of

suspension or cancellation:revocation!

7he Secretary shall have thirty 96 wor*in days from receipt of the records to resolve the appeal! 7he

decision of the Secretary shall be final and inappealable!

R!LE $III%E""ATION OF OPERATION OF T=E A#EN%Y*BRAN%=

"E%TION 68' Notice of %losure of the A)enc( or its Branch' 7he Aency or its branch office which

ceases to operate prior to the e&piration of its license or its authority to operate shall notify the $eional

%ffice concerned, statin the (ustification for such closure, accompanied by the oriinal receipt of cash

bond and the license, or the authority to operate, as the case may be!

"E%TION 69' Refun, of %ash Bon,! An Aency which voluntarily surrender its license shall be entitled

to the refund of its deposited cash bond only after postin a surety bond of similar amount from a bondin

company accredited by the 0nsurance Commission! 7he surety bond is valid for three 9 years from

e&piration of the license!

R!LE I

IN"PE%TORATE AND ENFOR%EMENT F!N%TION"

"E%TION 6:' Inspection Function' 7o ensure the effective supervision and reulation of the activities of

all licensees, the $eional #irector or his duly authori)ed representative shall have access to the

licensee;s records and premises at any time of the day or niht whenever wor* is bein underta*en

therein, to determine violation or may aid in the enforcement of these $ules!

"E%TION 7;' /rit of E?ecution! 7he $eional #irector shall issue writs of e&ecution to the appropriate

authority for the enforcement of his:her %rders!

"E%TION 7&' "ubmission of Monthl( Reports! All Aencies shall submit to the $eional %ffice, copy

furnished the Bureau, not later than the 5 th wor*in day of every month reports verified and confirmed by

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- C9 Atty 8oltaire !uano


64/75

the $eional #irector or his duly authori)ed representative of their recruitment and placement activities

durin the precedin month!

R!LE

REPEALIN# %LA!"E AND EFFE%TI$ITY DATE

"E%TION 70' Repealin) %lause' All rules and reulations, uidelines and issuances inconsistent

herewith are repealed or modified accordinly!

"E%TION 73' Effecti+it(! 7he provisions of these $ules and $eulations shall ta*e effect fifteen 85

days after its publication in two 2 newspapers of eneral circulation!

#one in the City of .anila this 5th day of Hune 8DD3!

-"),'. LEONARDO A' 1!I"!MBIN#Secretary

Refer to


65/75

C. LABOR STANDARDS

Art 84 o t:! L'2or Co! pro$i!s t:'t t:! pro$isions o Boo III

s:'%% 'pp%* to !,p%o*!!s on '%% !st'2%is:,!nts 'n un!rt'in)s

5:!t:!r or prot o not- 2ut not to#

1, Go(ernment employees of GO//s with ori&inal charterH 7or GO//s with ori&inal charter' the /i(il Ser(ice /ommission

has the 0urisdiction,

5, @ana&erial *mployees Iincludin& super(isory employeesH Those whose primary duty consists of the mana&ement of the

esta$lishment in which they are employed or of a department

or su$di(ision thereofH They customarily and re&ularly direct the works of two or more

employeesH They ha(e the authority to hire or )re employees of lower rankH

or their su&&estions and recommendations as to hirin& and

)rin& and as to the promotion or any other chan&e of status of

other employed' are &i(en particular wei&ht 6ule (, =ec 2b,

1mplementing ules and egulations o !ook 111, 3abor


66/75

-ho do not de(ote more than 52M of their hours worked in a

work week to acti(ities which are not directly and closely

related to the performance of the work descri$ed in para&raphs

I1' I5' and I9 a$o(e, 6ule (, =ec 2c, 1mplementing ules

and egulations o !ook 111, 3abor


67/75

D, *mployees of retail esta$lishments and ser(ice esta$lishments

employin& not more than 12 employees,

T:!s! !,p%o*!!s 'r! '%so not !ntit%! to#

• O(ertime payH

•


68/75

a All time durin& which an employee is re#uired to $e on

duty or to $e at the employerFs premises or to $e

prescri$ed to $e on dutyH$ All time durin& which an employee is suNered or

permitted to work 6=ec &, ule 1, 3


69/75

7acilities are items of necessary e%penses for the la$orerFs and

his familyFs e%istence and su$sistence so that $y e%press

pro(ision of law' they form part of the wa&e and when furnished

$y employer are deducti$le therefrom' since they are not so

furnished' the la$orer would spend and pay for them 0ust the

same,

ote> Be prepared to $e asked for (arious e%amples

diNerentiatin& facilities from supplements,

. W')!s $s S'%'ri!s

!. W')! Distortion-a&e distortion is a situation where an increase in the

prescri$ed wa&e rates results in the elimination or se(ere

contraction of intentional #uantitati(e diNerences in wa&e or

salary rates $etween and amon& employee &roups in an

esta$lishment as to eNecti(ely o$literate the distinctions

em$odied in such wa&e structure $ased on skills' len&th of

ser(ice or other lo&ical $ases of diNerentiation IRA CD5D'

Fetroban Employees Nnion vs 2-D$,

ote that wa&e distortion is a non=strikea$le issue, The

resolution for wa&e distortion issue shall $e sou&ht $y (oluntary

ne&otiation or ar$itration and not $y strikes' or lockoutsQ IRA

CD5D' Ilaw at Bulod ng Fanggagawa vs 2-D$

E%!,!nts o W')! Distortion I,rubaners ssoc vs ,ru Ban

U Trust $o>1, There is hierarchy of positions with correspondin& salary

ratesH5, Si&ni)cant chan&e in the salary rate of a lower pay class

without a concomitant increase in the hi&her oneH9, *limination of the distinction $etween the two le(elsH and;, The e%istence of the distortion $etween the two le(els in

the same re&ion of the country,

.CBA pro$isions $is++$is W')! Or!r- CBA "r!it'2i%it* The /redi$ility pro(ision in -a&e Order o, C is $ased on imptpu$lic policy' that is' the encoura&ement of employers to &rant

wa&e and allowance increases to their employees hi&her than

the minimum rates of increases prescri$ed $y the statute or

administrati(e re&ulation I,roducers ban vs 2-D$,

/6AR+A 7LOR A, /A/6O LABOR LA- R*8+*- CE Atty 8oltaire !uano


70/75

@y take on this> In other words# the employees have the right to

negotiate for a higher salary than what the Degional Tripartite

6age ,roductivity Board or similar agencies prescribe. 6age

:rder 2o 5 prevent the sanctioning of employers who increase

the wage of the employees without waiting for the statutory

prescribed increase in the latters salary. Dather# it encouragesthe same as bargaining with the employer is a constitutional

right and that wages is included in the negotiation. In addition#

$B is the contract between the parties.

). Non+i,unition o B!n!tsArt 122,


71/75

$, *%clusions for /o(era&e

. L!'$!sa, Ser(ice +ncenti(e Lea(e$, @aternity Lea(ec,


72/75

16. 'ni"'pp! Wor!rs ==RA 7477- 's ',!n! 2* RA

944>a, !e)nition of 6andicapped -orkeres$, Ri&hts of !isa$led -orkersc,


73/75

i(, Standards to $e followed

9, !isease or +llness

2. &ro"!ur'% Du! &ro"!ss1, Reinstatement Aspect

a +mmediately e%ecutori, Actual Reinstatementii,


74/75

9, Limited

@oney claims of O7-s are also included $y (irtue of RA 32;5H -a&e distortion in an unor&ani?ed esta$lishments $y (irtue of RA

CD5DH *nforcement of compromise a&reements IArt 55D of the La$or

/odeH and /ases arisin& out of the interpretation and implementation of the

/BA $y (irtue of Re(ised Rules of


75/75

++, !irect and +ndirect /ontempt /ases+++, /ases fallin& under the Ori&inal *%clusi(e urisdiction of the Re&ional

!irector+8, /ases fallin& under the Ori&inal *%clusi(e urisdiction of the Bureau of

La$or Relations8, /ases fallin& under the Ori&inal *%clusi(e urisdiction of the LR/

labor law review - atty v duano

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