Labor legislation - consists of statutes, regulations and Fundamental Principles and Policies

jurisprudence governing the relations between capital

and labor, by providing for certain employment CONSTITUTIONAL PROVISIONS
standards and a legal framework for negotiating, a) ARTICLE II, SECS. 9, 10, 11, 13, 14, 18, 20.
adjusting and administering those standards and other
incidents of employment. Welfare state - found in the constitutional clause on the
promotion of social justice to ensure the well-being and
Labor standards law - sets out the least or basic terms, economic security of all the people, and in the pledge of
conditions and benefits of employment that employers protection to labor with specific authority to regulate
must provide or comply with and to which employees the relations between landowners and tenants and
are entitle as a matter of legal right. between labor and capital.
- the minimum requirements prescribed by existing Limits of Social Justice
laws, rules and regulations relating to wages, hours of
work, cost-of-living allowance, and other monetary and Social justice should be used only to correct an
welfare benefits, including occupational, safety, and injustice. It must be founded on the recognition of the
health standards. necessity of interdependence among diverse units of a
society, and of the protection that should be equally
Labor relations law – defines the status, rights and and evenly extended to all groups as a combined force
duties, and the institutional mechanisms that govern in our social and economic life. As partners in nation-
the individual and collective interactions of employers, building, labor and management need each other to
employees or their representatives. foster productivity and economic growth; hence, the
need to weigh and balance the rights and welfare of
Note: Although the distinction between labor
standards and labor relations is useful for academic both the employee and employer. [Agabon vs. NLRC,
2004]
purposes, they in reality overlap. Figuratively, one may
think of labor standards as the material or the Prohibition to impair the obligation of contracts (Liberty
substance to be processed while labor relations is the of Contract/Laissez Faire)
mechanism that processes the substance.
- not absolute and unqualified.
Labor Code – principal labor law of the country. But - the fact that both parties are of full age and
even now, there are Labor Laws that are not found in competent to contract, it does not necessarily
the Labor Code. deprive the State of the power to interfere
Social Legislation – the promotion of the welfare of all where the parties do not stand upon an
equality, or where the public health demands
the people, the adoption by the government of
measures calculated to insure economic stability of all that one party to the contract shall be
protected against himself.
the component elements of society thru the
maintenance of proper economic and social equilibrium b) ARTICLE III, SECS. 1, 4, 8.
in the interrelations of the members of the community,
constitutionally, thru the adoption of measures legally Due process requirements are two-fold – substantive
justifiable, or extra-constitutionally, thru the exercise of [dismissal should be for a valid and authorized cause as
powers underlying the existence of all governments, on provided by law] and procedural (due notice and
the time honored principle of salus populi esta hearing).
suprema lex (Calalang v. Williams, 02 December 1940) Note: One’s employment is a property right, and the
Social Justice – humanization of laws and the wrongful interference therewith is an actionable wrong.
equalization of social and economic forces by the State c) ART. XIII, SECS. 1, 2, 3, 13, 14.
so that justice in its rational and objective secular
conception may at least be approximated. Participation in Decision-Making Process
- neither communism, nor despotism, nor Management Rights / Prerogative – except as limited
atomism, nor anarchy, but the humanization of by special laws (must be exercised without grave abuse
laws and the equalization of social and of discretion, bearing in mind the basic elements of
economic forces by the State so that justice in justice and fair play), an employer is free to regulate,
its rational and objectively secular conception according to his own discretion and judgment, all
may at least be approximated. aspects of employment, including hiring, work
assignments, working methods, time, place and manner Employee's compliance and obedience to employer's
of work, tools to be used, processes to be followed, orders - The measure of the responsibility of an
supervision of workers, working regulations, transfer of employee is that if he performed his assigned task
employees, work supervision, lay-off of workers and the efficiently and according to the usual standards, then he
discipline, dismissal and recall of workers. An employer may not be held personally liable for any damage
has a free reign and enjoys wide latitude of discretion to arising therefrom. Failing in this, the employee must
regulate all aspects of employment. suffer the consequences of his negligence if not lack of
due care in the performance of his duties.
Note: Management should see to it that its employees
are at least properly informed of its decisions or modes e) LABOR CODE
action. Indeed, industrial peace cannot be achieved if
the employees are denied their just participation in the Salient Features of the Labor Code
discussion of matters affecting their rights. a. It re-orients labor laws towards development
The law in protecting the rights of the employees and employment goals;
b. It institutionalizes the NLRC to facilitate the
authorizes neither oppression nor self-destruction of
the employer. It should be made clear that when the speedy settlement of labor disputes;
c. It establishes a new system of workmen’s
law tilts the scale of justice in favor of labor, it is but a
recognition of the inherent economic inequality compensation;
between labor and management. Never should the d. It establishes a system for employment of
scale be so tilted if the result is an injustice to the overseas workers and optimizes national
benefit therefrom in the form of dollar
employer.
remittances and improved skills and technology
d) CIVIL CODE - ARTICLE 19, 1700 – 1712 for our people; and
e. It institutionalizes voluntary arbitration as a
Contracts of labor - subject to the police power of the mode of settling labor disputes.
state because they are not ordinary contracts but are
impressed with public interest. Contract in question Labor - exertion by human beings of physical or mental
would have been deemed in violation of pertinent labor efforts, or both, towards the production of goods and
laws, the provisions of said laws would prevail over the services.
terms of the contract.
Note: The State affirms labor as a primary social
Collective Bargaining Agreement (CBA) - constitute the economic force. It shall protect the rights of workers
law between the parties. Not an ordinary contract to and promote their welfare.
which is applied the principles of law governing ordinary
contracts, but impressed with public interest, thus, it Labor Law - The law that governs the rights and duties
must yield to the common good. It must be construed of the employer (Er) and employees (Ee) with respect
liberally rather than narrowly and technically, and the to:
courts must place a practical and realistic construction
upon it, giving due consideration to the context in which 1. The terms and conditions of employment, and
it is negotiated and purpose which it is intended to 2. Labor disputes arising from collective bargaining or
serve. other concerted activity respecting such terms and
conditions.
Fair treatment - right of an employer to dismiss an
employee must not be oppressive and abusive since it Labor Legislation vs. Social Legislation
affects one's person and property.
Labor Legislation Social Legislation
Mutual obligation - employer's obligation to give his Directly affects Governs effects of
workers just compensation and treatment carries with it employment (e.g. employment (e.g.
the corollary right to expect from the workers adequate wages) compensation for
work, diligence and good conduct. injuries)
Compliance with law - the return-to-work order not so Refers to labor Refers to Social
much confers a right as it imposes a duty; and while as a statutes like Labor Security Laws
right it may be waived, it must be discharged as a duty Relations Law and
even against the worker's will. Labor Standards Law
Focuses on the rights Focuses on the
 of the worker in the particular part of the accordance with the statues and supplementary
workplace society or segment equitable principles.
thereof c. Protection to labor is not available where
both parties have violated the law because in such a
case, neither party is entitled to protection.
NOTE: Labor laws are social legislation, but not all social Construction in Favor of Labor
legislations are labor laws. In relation to each other,
social legislation as a concept is broader, labor laws Note: All doubts in the implementation and
narrower. interpretation of the provisions of this Code, including
SOURCES OF LABOR LAWS its implementing rules and regulations, shall be resolved
in favor of labor
1. Constitution;
2. Labor Code and other related special legislation Reason for the Law - Doubts are resolved in favor of
(including their respective IRR); labor in line with the principle that those who have less
3. Contracts; in life should have more in law.
4. CBA;
5. Company practices; and Applicability - Article 4 applies only when there is a
6. Company policies. doubt. When there is no doubt, there is no room for
construction. Where the evidence is clear that an
Declaration of basic policy employee is not an asset but a liability that delays
production and sets a bad example to his co-workers,
1. Reason for Affording Protection to Labor - Protection the courts should not hesitate to confirm or order his
to labor is intended to raise the worker to equal footing dismissal.
with the employer and shield him from abuses brought
about by the necessity for survival. Employer stands on Limitation - The fundamental principles of due process
higher footing than the employee. First, there is greater should sternly be applied on both the poor and the rich
supply than demand for labor. Second, the need for in order to attain proper justice. The benevolent policy
employment by labor comes from vital and even of the law towards the employee does not oblige courts
desperate necessity. to be unjust and unfair to employers.
2. Extent of the Protection - The protective mantle is
available not only against oppressive employees but 1. Recognition of management rights. The law also
also against unscrupulous union leaders. The union is an recognizes that management has rights which are also
agent of its members for the purpose of securing for entitled to respect and enforcement in the interest of
them fair and just wages and good working conditions fair play.
and is subject to the obligation of giving the members
as its principals all information relevant to union and 2. Principle of Non-Oppression. Neither capital nor
labor matters entrusted to it. labor shall act oppressively against the other, or impair
3. Limitations the interest or convenience of the public. The principle
mandates capital and labor not to act oppressively
a. Protection to labor cannot be used as a against each other or impair the interest and
pretext to defeat the rights and prerogatives of an convenience of the public. The protection to labor
employer. Thus, the validity of the dismissal of an clause in the Constitution is not designed to oppress or
employee found guilty of violating rules designed for destroy capital
the safety of the employees themselves, should be
upheld because it protects labor and at the same time Q: What is the quantum of evidence required in labor
gives the employer its due. case? (2012 Bar)
b. Protection to labor cannot be used as an A: In labor cases, as in other administrative and quasi-
excuse to distribute charities at the expense of an judicial proceedings, the quantum of proof necessary is
employer. Courts cannot render judgment on the basis substantial evidence, or such amount of relevant
of sympathies and inclinations, and consequently, evidence which a reasonable mind might accept as
distribute charities at the expense of the employer, adequate to justify a conclusion.
because our constitutional government assures the
latter against deprivation of property except in Limitations in Invoking the Principle of Social Justice
 1. Social justice does not champion division of The Department of Labor and other government
property or equality of economic status. It agencies charged with the administration and
should not tolerate usurpation of property, enforcement of this Code or any of its parts shall
public or private. promulgate the necessary IRRs. A grant of quasi-
2. May only protect the laborers who come to legislative power to the DOLE and other gov’t agencies
court with clean hands and their motives charged with the administration and enforcement of
blameless. the Labor Code or any part thereof.
3. Never result in an injustice or oppression of - POEA
the employer. - National Wages and Productivity Commission
4. If it is used to shield wrongdoings, it cannot - Employees’ Compensation Commission
be permitted to be the refuge of scoundrels. - NLRC

Q: May social justice as a guiding principle in labor law Limitation: cannot enlarge or amend the provisions of
be so used by the courts in sympathy with the working the Labor Code.
man if it collides with the Equal Protection clause of the
Constitution? (2003 Bar) Employer - Employee criteria: (Viana v. Al-LAgadan)

A: YES. The State is bound under the Constitution to 1. Selection and engagement of employee
afford full protection to Labor and when conflicting - Hiring
interests collide and they are to be weighed on the - Written contract, not necessary
scales of social justice, the law should accord more - An understanding that one is to render service
sympathy and compassion to the less privileged working to the other, and a recognition by them of the
man (Fuentes v. NLRC, G.R. No. 110017, January 2, right of one to order and control the other is
1997). sufficient

However, it should be borne in mind that social justice 2. Payment of wages

ceases to be an effective instrument for the - Wages – remuneration of earnings
“equalization of the social and economic forces” by the - Considered wages if paid in consideration of:
State when it is used to shield wrongdoing (Corazon a) The labor being performed
Jamer v. NLRC, G.R. No. 112630, September 5, 1997). b) The results or finished work

Basic Rights of Workers Guaranteed by the 3. Power of dismissal - Person hired is subjected to the
Constitution: rules of discipline of the employer
1. Security of tenure
2. Living wage 4. Power to control the employee’s conduct - Most
3. Share in the fruits of production important element.
4. Just and humane working conditions Control test: the person for whom the services are
5. Self-organization performed reserves the rights to control not only the
6. Collective bargaining end to be achieved but also the means to be used in
7. Collective negotiations reaching such end. The control should be on both the
8. Engage in peaceful concerted activities, means and the end.
including the right to strike
9. Participate in policy and decision making Any competent and relevant evidence may be admitted
processes as proof of E-E relationship.

Fundamental Management Rights The E-E relationship is deemed suspended in the ff

1. Right to return of investments cases:
2. Right to prescribe rules 1. When the employee is under suspension,
3. Right to select employees either as a disciplinary penalty or as a
4. Right to transfer or discharge employees preventive measure during the pendency of a
disciplinary proceedings against him
Rules and Regulations 2. During off season, in case of regular seasonal
employees
 3. When fishing vessels are drydocked or 4. Control, not only over the end product / RESULT of
undergoing repairs the work, but more importantly, control over the
4. When an employee is laid-off for a period not MEANS through which the work is accomplished. (most
exceeding 6mos due to suspension of business essential element; without it, there is no EER)
operations
5. When an employee fulfills a civic or military B. Economic Relations Test – a subordinate / alternative
duty test. Existing economic conditions between the parties
are used to determine whether EER exists.
Termination of E-E relationship:
1. Dismissal 1. payment of PAG-IBIG Fund contributions
2. Resignation or abandonment of employment 2. payment / remittance of contributions to the
3. Expiration of employment period State Insurance Fund
3. deduction of withholding tax
Factors that do not interrupt employment 4. deduction / remittance of SSS contributions
relationship:
1. Leave of absence with pay RECRUITMENT OF LOCAL AND MIGRANT WORKERS
2. Illegal dismissal
3. Strike License vs. Authority
A license is a document issued by the Department of
A. The employer has the ability (need not be actual) to Labor and Employment (DOLE) authorizing a person or
exercise control over the following: entity to operate a private employment agency, while
an authority is a document issued by the DOLE
1. Payment of Wages - payment of compensation by authorizing a person or association to engage in
way of commission does not militate against the recruitment and placement activities as a private
conclusion EER exists. Under Art. 97 of the Labor Code, recruitment agency.
"wage" shall mean "however designated, capable of
being expressed in terms of money, whether fixed or License Authority
ascertained on a time, task, price or commission Authorize an entity to Authorize an entity to
basis…" operate as a private operate as a private
employment agency recruitment entity
Wages are defined as remuneration or earnings, When a license is given, Does not entitle a private
however designated, capable of being expressed in one is also authorized to recruitment entity to
terms of money, whether fixed or ascertained on a collect fees collect fees.
time, task, piece or commission basis, or other method
of calculating the same, which is payable by an Entities disqualified from being issued a license
employer to an employee under a written or unwritten 1) Travel agencies and sales agencies of airline
contract of employment for work done or to be done, companies. [Art. 26];
or for services rendered or to be rendered, and included 2) Officers or members of the Board of any
the fair and reasonable value, as determined by the corporation or members in partnership engaged
Secretary of Labor, of board, lodging, or other facilities in the business of a travel agency;
customarily furnished by the employer to the employee. 3) Corporations and partnerships, when any of
its officers, members of the board or partners,
2. Hiring – employment relation arises from contract of is also an officer member of the board of
hire, express or implied. Selection and engagement of partner of a corporation or partnership engaged
the workers rests with the employers. Not a conclusive in the business of a travel agency;
test since it can be avoided by the use of subcontracting (4) Persons, partnerships or corporations which
agreements or other contracts other than employment have derogatory records; and
contracts. (5) Any official or employee of the DOLE, POEA,
OWWA, DFA and other government agencies
3. Firing – disciplinary power exercised by employer directly involved in the implementation of R.A.
over the worker and the corresponding sanction 8042 as amended and/or any of his/her
imposed in case of violation of any of its rules and relatives within the 4th civil degree of
regulations.
 consanguinity and affinity. [POEA Rules of process their papers and procure their passports.
2002]. Relying completely upon such representations,
complainants entrusted hard-earned money to accused-
Non-transferability of license or authority appellant in exchange for what they would later
(1) No license or authority shall be used directly or discover to be a vain hope of obtaining employment
indirectly by any person other than the one in whose abroad. It is not disputed that accused-appellant is not
favor it was issued or at any place other than that authorized nor licensed by the DOLE to engage in
stated in the license or authority, recruitment and placement activities. The absence of
(2) Nor may such license or authority be transferred, the necessary license or authority renders all of
conveyed, or assigned to any other person or entity. accused-appellant’s recruitment activities criminal.

Essential elements of illegal recruitment Illegal recruitment for local workers [governed by the
Definition of recruitment and placement labor code]
“Recruitment and placement" refers to any act of (C-E- Simple Illegal Recruitment
C-T-U-H) Elements:
(a) canvassing,
(b) enlisting, (1) The person charged with the crime must have
(c) contracting, undertaken recruitment activities defined under Art.
(d) transporting, 13(b) or prohibited activities defined under Art. 34; and
(e) utilizing, or (2) The said person does not have a license or authority
(f) hiring procuring workers, to do so. [Art. 38, LC]

And also includes - To prove illegal recruitment, it must be shown

(a) referrals, that the accused gave the distinct impression
(b) contract services, that he had the power or ability to send
(c) promising, or complainants abroad for work such that the
(d) advertising for employment, locally or abroad, latter were convinced to part with their money
whether for profit or not in order to be deployed.

Provided, That any person or entity which, in any - A person is guilty of illegal recruitment when he
manner, offers or promises for a fee employment to gives the impression that he has the power to
two or more persons shall be deemed engaged in send workers abroad.
recruitment and placement. [Labor Code, Art. 13 (b)]
(a) Any of the acts mentioned above constitutes Art. 38. Illegal recruitment
recruitment and placement. Any recruitment activities, including the prohibited
(b) The proviso provides for a presumption that a practices enumerated under Article 34 of this Code, to
person or entity so described engages in recruitment be undertaken by non-licensees or nonholders of
and placement. authority, shall be deemed illegal and punishable under
Article 39 of this Code. The Department of Labor and
The act of referral, which is included in recruitment, is Employment or any law enforcement officer may
"the act of passing along or forwarding of an applicant initiate complaints.
for employment after an initial interview of a selected
applicant for employment to a selected employer, To prove illegal recruitment, it must be shown that the
placement officer or bureau." Petitioner’s admission accused gave the distinct impression that he had the
that she brought private complainants to the agency power or ability to send complainants abroad for work
whose owner she knows and her acceptance of fees such that the latter were convinced to part with their
including those for processing betrays her guilt. money in order to be deployed.

Promising employment A person is guilty of illegal recruitment when he gives

The Court finds that accused-appellant was engaged in the impression that he has the power to send workers
unlawful recruitment and placement activities. The abroad.
prosecution established that accused-appellant
promised three complainants employment as factory
workers and he asked them for money in order to
Illegal Recruitment as Economic Sabotage - it is  Where offense committed; OR
economic sabotage when complex illegal recruitment is  Where offended party actually resides at the
committed. time of the commission of the offense

a. Syndicated – committed by a syndicate if carried out Two Kinds of Illegal Recruiter

by a group of three (3) or more persons in conspiracy or 1. Non-licensee or Non-holder of Authority – performs:
confederation with one another; a. Any of the acts defined under Article 13(b); or
b. Any of the prohibited practices enumerated under
b. Large Scale or qualified –committed against three (3) Section 5 of RA 10022.
or more persons individually or as a group despite the
lack of necessary license from POEA 2. Licensed or Holder of Authority – performs any of the
prohibited practices enumerated under Section 5 of RA
Prescription of action: 10022.
a. Art. 290 of the LC (local employment)- 3 yrs
b. Migrant – 5 yrs, except those involving economic Entities authorized to engage in recruitment and
sabotage which prescribe in 20 yrs placement
a. public employment offices
NOTE: “Illegal recruitment in large scale” pertains to the b. Philippine Overseas Employment Administration
number of victims while “syndicated illegal recruitment” c. private recruitment entities
pertains to the number of recruiters. d. private employment agencies
e. shipping or manning agents or representatives
The Secretary of Labor and Employment or his duly f. such other persons or entities as may be authorized
authorized representatives shall have the power to by the DOLE Secretary
cause the arrest and detention of such non-licensee or g. construction contractors
non-holder of authority if after investigation it is
determined that his activities constitute a danger to Is direct-hiring of OFWs allowed? Why?
national security and public order or will lead to further No. Employers cannot directly hire workers for overseas
exploitation of job-seekers. The Secretary shall order employment except through authorized entities see
the search of the office or premises and seizure of (enumeration above).The reason for the ban is to
documents, paraphernalia, properties and other ensure full regulation of employment in order to avoid
implements used in illegal recruitment activities and the exploitation.
closure of companies, establishments and entities found
to be engaged in the recruitment of workers for XPNs:
overseas employment, without having been licensed or 1. Public employment offices
authorized to do so. 2. Private employment offices
(Declared unconstitutional in Salazar v. Achacoso) 3. Private recruitment entities
4. Shipping or manning agents or representatives
Persons Criminally Liable 5. The POEA
The persons criminally liable for the above offenses are 6. Construction contractors if authorized by the DOLE
the principals, accomplices and accessories. In case of and Construction Industry Authority
juridical persons, the officers having control, 7. Members of the diplomatic corps (but hiring must be
management or direction of their business shall be processed through POEA)
liable. 8. Other persons or entities as may be authorized by the
SOLE
Where illegal recruitment is proved but the elements of 9. Name hires - Individual workers who are able to
“large scale” or “syndicate” are absent, the accused can secure contracts for overseas employment
be convicted only of “simple illegal recruitment”. opportunities with employers without the assistance or
participation of any agency.
Estafa – a person convicted for illegal recruitment under
Labor Code can be convicted for violation of the Revised NOTE: Name hires shall pass through the POEA for
Penal Code provisions on estafa provided the elements processing purposes and should be registered under
of the crime are present. POEA for protection.

Venue – filed with the RTC of the province or city, Registration of Name Hires
Name hires should register with the POEA by submitting b. Disciplinary action cases and other special cases
the following documents: which are administrative in character involving
a. Employment contract; employers, principals, contracting partners and Filipino
b. Valid passport; migrants.
c. Employment visa or work permit, or equivalent
document; Guarantees of the Receiving Country for the Protection
d. Certificate of medical fitness; of the Rights of OFWs
e. Certificate of attendance to the required employment 1. It has existing labor and social laws protecting the
orientation/ briefing. rights of workers, including migrant workers;
2. It is a signatory to and/or a ratifier of multilateral
Power to Terminate or Impose a Ban on Employment conventions, declarations or resolutions relating to the
of Migrant Workers protection of workers, including migrant workers; and
The POEA may at any time terminate or impose a ban 3. It has concluded a bilateral agreement or
on employment of migrant workers, to do so, in arrangement with the government on the protection of
consultation with the DFA based on the ff. grounds: the rights of OFWs (Sec. 3, R.A. 10022 amending R.A.
1. In pursuit of the national interest; or 8042).
2. When public welfare so requires.
NOTE: In the absence of a clear showing that any of the
Regulatory and Adjudicatory Functions of the POEA guarantees exists in the country of destination of the
migrant workers, no permit for deployment shall be
1. Regulatory issued by the POEA.
a. It regulates the private sector participation in the REMITTANCE OF FOREIGN EXCHANGE EARNING
recruitment and overseas placement of workers It shall be mandatory for all Filipino workers abroad to
through its licensing and registration system; remit a portion of their foreign earnings to their
b. Formulate and implement, in coordination with families, dependents, and/or beneficiaries in the
appropriate entities concerned, when necessary, a country [Art. 22, LC]
system for promoting and monitoring the overseas Under Executive Order No. 857, the amount of one’s
employment of Filipino workers taking into salary required to be remitted depends on the type or
consideration their welfare and the domestic nature of work performed by the employee. The
manpower requirements; following are the percentages of foreign exchange
c. Inform migrant workers not only of their rights as remittance required from various kinds of migrant
workers but also of their rights as human beings; workers:
d. Instruct and guide the workers how to assert their (1) Seaman or mariner – 80% of their basic salary
rights; (2) Workers for Filipino contractors and construction
e. Provide the available mechanism to redress violation companies – 70%
of their rights; and (3) Doctors, engineers, teachers, nurses and other
f. In the recruitment and placement of workers to professional workers whose contract provide for free
service the requirements for trained and competent board and lodging – 70%
Filipino workers of foreign governments and their (4) All other professional workers whose employment
instrumentalies, and such other employers as public contracts do not provide for free board and lodging
interests may require, the administration shall deploy facilities – 50%
only to countries: (5) Domestic and other service workers – 50%
1. Where the Philippines has concluded bilateral (6) All other workers not falling under the
labor agreements or arrangements; aforementioned categories – 50%
2. Guaranteeing to protect the rights of Filipino (7) Performing artists – 50%
migrant workers; and,
3. Observing and/or complying with the The following individuals, however, are exempted
international laws and standards for migrant workers. from the mandatory remittance requirement:
(1) The immediate family members, dependents or
2. Adjudicatory beneficiaries of migrant workers residing with the latter
a. Administrative cases involving violations of licensing abroad;
rules and regulations and registration of recruitment (2) Filipino servicemen working within US military
and employment agencies or entities. installations;
(3) Immigrants and Filipino professionals working with agencies,' but also to 'promulgate rules and regulations
the United Nations and its agencies or other specialized to carry out the objectives and implement the
bodies. provisions' governing said activities. Pursuant to this
rulemaking power thus granted, the Secretary of Labor
Fees to be Paid by Workers: gave the POEA on its own initiative or upon filing of a
 No worker shall be charged with any fee until complaint or report or upon request for investigation by
employee: (1) obtained work through recruiter’s any aggrieved person, (authority to) conduct the
efforts; and (2) worker has actually commenced necessary proceedings for the suspension or
working. cancellation of the license or authority of any agency or
 Placement fee in an amount equivalent to one entity' for certain enumerated offenses including:
month’s salary of the worker and documentation 1. the imposition or acceptance, directly or indirectly, of
costs are the ONLY AUTHORIZED PAYMENTS that any amount of money, goods or services, or any fee or
may be collected from a hired worker. bond in excess of what is prescribed by the
Administration; and
Fees Chargeable to the Worker 2. any other violation of pertinent provisions of the
Labor Code and other relevant laws, rules and
1. Placement fee in an amount equivalent to one month regulations.
basic salary of the worker (Revised POEA Rules, Rule 5,
Sec. 51);  The Administrator was also given the power to
2. Documentation costs; and 'order the dismissal of the case or the suspension of
3. Membership with Philhealth, Pag-IBIG and SSS the license or authority of the respondent agency or
(Revised POEA Rules, Rule 5, Sec. 50). contractor or recommend to the Minister (now
Nature of the liability of local recruitment agency and Secretary) the cancellation thereof.
foreign principal
1. Local Agency is solidarily liable with foreign principal. Capitalization. All applicants for authority to hire or
2. Severance of relations between local agent and renewal of license to recruit are required to have such
foreign principal does not affect liability of local substantial capitalization as determined by the
recruiter. Secretary of Labor.
• Recruitment agency for local employment:
Joint and solidary liability of recruiter with Foreign o 200k in the case of single proprietorship
Principal o 500k in the case of a corporation
 A recruitment agency is solidarily liable for the • Recruitment or manning agency for overseas
unpaid salaries of a worker it recruited for employment:
employment overseas. o 2M for single proprietorship
 Even if the recruiter and the principal had o 5M for corporations
already severed their agency agreement at the
time employee was injured, the recruiter may Three or more complainants must be in a single case
still be sued for a violation of the employment When the Labor Code speaks of illegal recruitment
contract because no notice of the agency "committed against three (3) or more persons
agreement's termination was given to the individually or as a group," it must be understood as
employee. referring to the number of complainants in each case
Power to suspend or cancel any license or authority to who are complainants therein, otherwise, prosecutions
recruit employees for overseas employment is for single crimes of illegal recruitment can be cumulated
concurrently vested with the POEA and the Secretary of to make out a case of large scale illegal recruitment.
Labor.
Illegal recruitment vs estafa
The penalties of suspension and cancellation of license Illegal recruitment and estafa are entirely different
or authority are prescribed for violations of the above offenses and neither one necessarily includes or is
quoted provisions, among others. And the Secretary of necessarily included in the other. A person who is
Labor has the power under Section 35 of the law to convicted of illegal recruitment may, in addition, be
apply these sanctions, as well as the authority, convicted of estafa by false pretenses or fraudulent acts
conferred by Section 36, not only to 'restrict and under Article 315, paragraph 2(a) of the Revised Penal
regulate the recruitment and placement activities of all Code. In the same manner, a person acquitted of illegal
recruitment may be held liable for estafa. Double (j) To become an officer or member of the Board of any
jeopardy will not set in because illegal recruitment is corporation engaged in travel agency or to be engaged
malum prohibitum, in which there is no necessity to directly or indirectly in the management of a travel
prove criminal intent, whereas estafa is malum in se, in agency; and
the prosecution of which, proof of criminal intent is
necessary. [Rosita Sy vs. People of the Philippines, 2010] (k) To withhold or deny travel documents from
applicant workers before departure for monetary or
Prohibited practices ( Local Employment) financial considerations other than those authorized
It shall be unlawful for any individual, entity, licensee, under this Code and its implementing rules and
or holder of authority: regulations. [Art. 34, LC]

(a) To charge or accept, directly or indirectly, any Other prohibited acts (Overseas Employment)
amount greater than that specified in the schedule of It shall likewise include the following acts, whether
allowable fees prescribed by the Secretary of Labor, or committed by any person, whether a non-licensee,
to make a worker pay any amount greater than that non-holder, licensee or holder of authority:
actually received by him as a loan or advance;
(a) To charge or accept directly or indirectly any amount
(b) To furnish or publish any false notice or information greater than that specified in the schedule of allowable
or document in relation to recruitment or employment; fees prescribed by the Secretary of Labor and
Employment, or to make a worker pay or acknowledge
(c) To give any false notice, testimony, information or any amount greater than that actually received by him
document or commit any act of misrepresentation for as a loan or advance;
the purpose of securing a license or authority under this
Code. (b) To furnish or publish any false notice or information
or document in relation to recruitment or employment;
(d) To induce or attempt to induce a worker already
employed to quit his employment in order to offer him (c) To give any false notice, testimony, information or
to another unless the transfer is designed to liberate document or commit any act of misrepresentation for
the worker from oppressive terms and conditions of the purpose of securing a license or authority under the
employment; Labor Code, or for the purpose of documenting hired
workers with the POEA, which include the act of
(e) To influence or to attempt to influence any person or reprocessing workers through a job order that pertains
entity not to employ any worker who has not applied to nonexistent work, work different from the actual
for employment through his agency; overseas work, or work with a different employer
whether registered or not with the POEA;
(f) To engage in the recruitment or placement of
workers in jobs harmful to public health or morality or (d) To include or attempt to induce a worker already
to the dignity of the Republic of the Philippines; employed to quit his employment in order to offer him
another unless the transfer is designed to liberate a
(g) To obstruct or attempt to obstruct inspection by the worker from oppressive terms and conditions of
Secretary of Labor or by his duly authorized employment;
representatives; (e) To influence or attempt to influence any person or
(h) To fail to file reports on the status of employment, entity not to employ any worker who has not applied
placement vacancies, remittance of foreign exchange for employment through his agency or who has formed,
earnings, separation from jobs, departures and such joined or supported, or has contacted or is supported
other matters or information as may be required by the by any union or workers' organization;
Secretary of Labor.
(f) To engage in the recruitment or placement of
(i) To substitute or alter employment contracts workers in jobs harmful to public health or morality or
approved and verified by the Department of Labor from to the dignity of the Republic of the Philippines;
the time of actual signing thereof by the parties up to
and including the periods of expiration of the same (g) To fail to submit reports on the status of
without the approval of the Secretary of Labor; employment, placement vacancies, remittance of
foreign exchange earnings, separation from jobs,
departures and such other matters or information as entities or persons (xpt in case of a seafarer whose
may be required by the Secretary of Labor and medical examination cost is shouldered by the principal
Employment; or shipowner);

(h) To substitute or alter to the prejudice of the worker, (3) Refuse to condone or renegotiate a loan incurred by
employment contracts approved and verified by the an overseas Filipino worker after the latter's
Department of Labor and Employment from the time of employment contract has been prematurely terminated
actual signing thereof by the parties up to and including through no fault of his or her own;
the period of the expiration of the same without the
approval of the Department of Labor and Employment; (4) Impose a compulsory and exclusive arrangement
whereby an overseas Filipino worker is required to
(i) For an officer or agent of a recruitment or placement undergo health examinations only from specifically
agency to become an officer or member of the Board of designated medical clinics, institutions, entities or
any corporation engaged in travel agency or to be persons, except in the case of a seafarer whose medical
engaged directly or indirectly in the management of examination cost is shouldered by the
travel agency; principal/shipowner;

(j) To withhold or deny travel documents from applicant (5) Impose a compulsory and exclusive arrangement
workers before departure for monetary or financial whereby an overseas Filipino worker is required to
considerations, or for any other reasons, other than undergo training, seminar, instruction or schooling of
those authorized under the Labor Code and its any kind only from specifically designated institutions,
implementing rules and regulations; entities or persons, except for recommendatory
trainings mandated by principals/shipowners where the
(k) Failure to actually deploy a contracted worker latter shoulder the cost of such trainings;
without valid reason as determined by the Department
of Labor and Employment; (6) For a suspended recruitment/manning agency to
engage in any kind of recruitment activity including the
(l) Failure to reimburse expenses incurred by the worker processing of pending workers' applications; and
in connection with his documentation and processing
for purposes of deployment, in cases where the (7) For a recruitment/manning agency or a foreign
deployment does not actually take place without the principal/employer to pass on the overseas Filipino
worker's fault. Illegal recruitment when committed by a worker or deduct from his or her salary the payment of
syndicate or in large scale shall be considered an the cost of insurance fees, premium or other insurance
offense involving economic sabotage; and related charges, as provided under the compulsory
worker's insurance coverage. [Sec. 6, RA 8042 as
(m) To allow a non-Filipino citizen to head or manage a amended]
licensed recruitment/manning agency.
Private Sector Participation in the Recruitment and
In addition to the acts enumerated above, it shall also Placement of Workers
be unlawful for any person or entity to commit the Private employment sector shall participate in the
following prohibited acts (not illegal recruitment recruitment and placement of workers, locally and
activities but prohibited acts in relation to overseas, under such guidelines, rules and regulations
recruitment): as may be issued by the SOLE (LC, Art. 25).
(1) Grant a loan to an overseas Filipino worker with
interest exceeding eight percent (8%) per annum, which Private Sectors that can participate
will be used for payment of legal and allowable 1. Shipping or manning agents or representatives
placement fees and make the migrant worker issue, 2. Private recruitment offices
either personally or through a guarantor or 3. Public employment offices
accommodation party, postdated checks in relation to 4. Construction contractors if authorized by the DOLE
the said loan; and Construction Industry Authority.
5. Persons that may be authorized by the SOLE
(2) Impose a compulsory and exclusive arrangement 6. Private employment agencies (Sec. 1, Rule VII,
whereby an overseas Filipino worker is required to avail Book I, IRR of the LC).
of a loan only from specifically designated institutions,
Qualifications for Participation officer, member of the board or partner of a
1. Citizenship Requirement corporation or partnership engaged in the business of a
a. Filipino citizens travel agency;
b. Partnerships or corporations with at least 4. Persons, partnerships or corporations which have
75% of the authorized capital stock is owned and derogatory records, such as but not limited to those:
controlled by Filipino citizens (LC, Art. 27); a. Certified to have derogatory record or
2. Capitalization (LC, Art. 28) information by the NBI or by the Anti- Illegal
a. Local employment Recruitment Branch of the POEA;
- A minimum networth/paid-up capital of P1 b. Against whom probable cause or prima facie
million for single proprietorship and finding of guilt for illegal recruitment or other
partnership/corporation; related cases exists (no convection yet);
b. Overseas employment c. Convicted for illegal recruitment or other
- A minimum capitalization/paid-up capital of P5 related cases and/or crimes involving moral
million for single proprietorship and turpitude; and
partnership/ corporation (Sec. 2, Rule 1, Part II, d. Agencies whose licenses have been
Revised POEA Rules of 2016). previously revoked or cancelled by the POEA for
3. Not otherwise disqualified by law or other violation of R.A. 8042, P.D. 442 as amended and
government regulations to engage in the recruitment their IRRs.
and placement of workers for overseas employment 5. Any official or employee of the DOLE, POEA, OWWA,
(Rule 1, Part II, Revised POEA Rules of 2016). DFA and other government agencies directly involved in
4. Payment of registration fees the implementation of R.A. 8042 and/or any of his/her
5. Posting of surety or cash bonds relatives within the 4th civil degree of consanguinity or
affinity; and
Note: Regulation of the private sector’s participation in 6. Persons or partners, officers and directors of
the recruitment and overseas placement of workers is corporations whose licenses have been previously
made by setting up a licensing and registration system cancelled or revoked for violation of recruitment laws
(Sec. 14, R.A. 10022). (Sec. 2, Rule I, 2002 Rules and Regulations on the
Recruitment and Employment of Land-Based Workers)
Validity of License to Recruit
1. Local Employment – license shall be valid for a period Prohibition on Travel Agencies and Sales Agencies of
of three (3) years from the date of issuance unless Airline Companies to Recruit
sooner revoked or cancelled(DO 141-4, Sec. 12).
2. Overseas Employment – regular license is valid up to They are prohibited from engaging in the business of
the full term of four (4) years from the date of issuance recruitment and placement of workers for overseas
of the provisional license. employment whether for profit or not due to conflict of
interest.
Provisional license is issued by the POEA which is valid
for two (2) years (POEA Revised Rules 2016).POEA may This is so, for travel agencies are under the supervisory
upgrade the provisional license during its validity to a powers of the Department of Tourism, not the
regular license after the recruiter has deployed at least Department of Labor and Employment. Otherwise,
one hundred workers to its new principal(s). A confusion may arise to the detriment and disadvantage
provisional license does not authorize recruitment for of an overseas applicant-worker or may lead to
domestic employment. exploitation of the applicant-worker who will be at the
economic mercy of the travel agency or sales agencies
Persons and Entities Disqualified to Engage in the of airline company from the time his papers are
Business of Recruitment and Placement of Workers processed to the time he departs.

1. Travel agencies and sales agencies of airline Relief of a Worker When Terminated Without
companies(LC, Art. 26); Valid Cause
2. Officers or members of the board of any corporation 1. Full reimbursement of his placement fee with 12%
or members in a partnership engaged in the business of interest per annum;
a travel agency; 2. Plus salaries for the unexpired portion of his
3. Corporations and partnerships, when any of its employment contract (R.A. 10022).
officers, members of the board or partners, is also an
NOTE: The three-month option is declared with the supervision of said registered enterprise (LC,
unconstitutional for violating the equal protection Art. 40).
clause and the substantive due process rule in the
Constitution. Requisites for Employment of Non-Resident Aliens
1. working permit from DOLE;
Criminal Actions 2. certification that there is no available Filipino willing
RTC of the province or city: and competent to do the job for the employer;
1. Where the offense was committed; or, 3. alien must train at least two Filipino understudies for
2. Where the offended party actually resides at the time such undertaking;
of the commission of the offense (RA 8042, Sec. 9). 4. FOR ENTERPRISES REGISTERED IN PREFERRED AREAS
OF INVESTMENT – employment permit issued upon
Money Claims recommendation of government agency charged with
NLRC has the original and exclusive jurisdiction to hear the supervision of said registered enterprise.
and decide claims arising out of an Er-Ee relationship or
by virtue of any law or contract involving Filipino Persons Required to Obtain Employment Permit
workers for overseas deployment including claims for GR: All non-resident foreign nationals who intend to
actual, moral, exemplary and other forms of damages. engage in gainful employment in the Philippines and
any domestic or foreign employer who desires to
Administrative Actions engage an alien for employment in the Philippines.
POEA has the original and exclusive jurisdiction to hear
and decide: XPNs:
1. All cases which are administrative in character, 1. Members of the diplomatic services and foreign
involving or arising out of violations of rules and government officials accredited by the Philippine
regulations relating to licensing and registration of government;
recruitment and employment agencies or entities; and, 2. Officers and staff of international organizations of
2. Disciplinary action cases and other special cases which the Philippine government is a cooperating
which are administrative in character, involving Ers, member, and their legitimate spouses desiring to work
principals, contracting partners and Filipino migrant in the Philippines;
workers. 3. Foreign nationals elected as members of the
a. It may be filed with the POEA Adjudication Governing Board who do not occupy any other position,
Office or the DOLE/POEA regional office of the but have only voting rights in the corporation;
place where the complaint applied or was 4. All foreign nationals granted exemption by special
recruited at the option of the complainant. The laws and all other laws that may be promulgated by the
office with which the complaint was first filed Congress;
shall take cognizance of the case. 5. Owners and representatives of foreign principals,
b. Disciplinary action cases and other special whose companies are accredited by the Philippine
cases, as mentioned in the preceding Section, Overseas Employment Administration (POEA), who
shall be filed with POEA Adjudication Office. come to the Philippines for a limited period solely for
the purpose of interviewing Filipino applicants for
Consequence Of Conviction For Illegal Recruitment – employment abroad;
see UST reviewer page 41 for table. 6. Foreign nationals who come to the Philippines to
teach, present and/or conduct research studies in
EMPLOYMENT PERMIT OF NON-RESIDENT ALIENS universities and colleges provided that the exemption is
An employment permit may be issued to: on a reciprocal basis; and
1. a non-resident alien; or 7. Resident foreign nationals and temporary or
2. the applicant employer after a determination of the probationary resident visa holders employed or seeking
non-availability of a person in the Philippines who is employment in the Philippines (DO 97-09, Series of
competent, able and willing at the time of application to 2009).
perform the services for which the alien is desired.
Other Persons Required to Obtain an Alien
NOTE: For an enterprise registered in preferred areas of Employment Permit
investments, said permit may be issued upon 1. Non-resident foreign nationals admitted to the
recommendation of the Government agency charged Philippines on non-working visas and who wish to seek
employment.
2. Missionaries or religious workers who intend to time of application to perform the services for which
engage in gainful employment. the alien is desired.

NOTE: No alien employees for nationalized industries GR: Philippine laws apply even to overseas employment
such as: contracts. This rule is rooted in the constitutional
a. Educational institutions; provision of Section 3, Article XIII that the State shall
b. Media; afford full protection to labor, whether local or
c. Public utilities overseas. Hence, even if the OFW has his employment
abroad, it does not strip him of his rights to security of
 After the issuance of an employment permit, the tenure, humane conditions of work and a living wage
alien shall not transfer to another job or change his under our Constitution.
Er without prior approval of the SLE [LC, Art. 41(a)].
 Any non-resident alien who shall take up XPN: Parties may agree that a foreign law shall govern
employment in violationof the provisions of the the employment contract subject to the following
Code shall be punished [LC, Art. 41(b)]. requisites:
 Alien worker shall be subject to deportation after 1. That it is expressly stipulated in the overseas
service of his sentence(LC, Art. 41). Duration of the employment contract that a specific foreign law shall
Employment Permit govern;
2. That the foreign law invoked must be proven before
GR: Minimum of 1 year the courts pursuant to the Philippine rules on evidence;
XPN: If the employment contract, consultancy services, 3. That the foreign law stipulated in the overseas
or other modes of engagement provides otherwise, employment contract must not be contrary to law,
which in no case shall exceed 5 years [DOLE D.O. 97-09, morals, good customs, public order, or public policy of
Revised Rules for the Issuance of Employment Permits the Philippines; and
to Foreign Nationals (2009)]. 4. That the overseas employment contract must be
processed through the POEA.
Employment of Aliens in Entities Engaged in
Nationalized Activities Labor Standards
COVERAGE
GR: Aliens may not be employed or engaged in General rule: Shall apply to employees in all
nationalized activities establishments and undertakings whether for profit or
XPNs: not. [Art. 82, LC]
1. Secretary of Justice specifically authorizes the Exceptions (NOT Covered) GMFF-DPR:
employment of technical personnel; (1) Government employees [Art. 82; Art. 76]
2. Aliens are elected members of the board of directors (2) Managerial Employees including members of the
or governing body of corporations or associations managerial staff [Art. 82]
engaging in partially nationalized activities shall be (3) Field Personnel [Art. 82]
allowed in proportion to their allowable participation or (4) Members of the family of the employer who are
share in the capital of such entities [Sec. 2(A), Anti- dependent on him for support [Art. 82];
Dummy Law, as amended by P.D. 715]; or (5) Domestic helpers and persons in personal service of
3. Enterprises registered under the Omnibus Investment another [Art. 141]
Code in case of technical, supervisory or advisory (6) Workers who paid by result as determined by DOLE
positions, but for a limited period. regulation [Art. 82].

Any alien seeking admission to the Philippines for GOVERNMENT EMPLOYEES

employment purposes and any domestic or foreign The terms and conditions of employment of all
employer who desires to engage an alien for government employees, including employees of GOCCs,
employment in the Philippines shall obtain an are governed by the Civil Service rules and regulations,
employment permit from the Department of Labor. not by the Labor Code. But this exclusion DOES NOT
The employment permit may be issued to a non- refer to employees of government agencies and
resident alien or to the applicant employer after a government corporations that are incorporated under
determination of the non-availability of a person in the the Corporation Code.
Philippines who is competent, able and willing at the
All rights and benefits granted to workers under
this Code shall, except as may otherwise be provided - along the routes that are plied by these bus
herein, apply alike to all workers, whether agricultural companies, there are its inspectors assigned at strategic
or non-agricultural. places who board the bus and inspect the passengers,
• The LC applies only to employees in the private sector, the punched tickets, and the conductors reports. There
whether agricultural or non-agricultural. is also the mandatory once-a-week car barn or shop
• Government employees: Civil Service Law day, where the bus is regularly checked as to its
• GOCCs created by special charter: Civil Service Law mechanical, electrical, and hydraulic aspects, whether
• GOCCs organized under the Corporation Law: LC or not there are problems thereon as reported by the
• To be covered by the LC, there must be employer- driver and/or conductor. They too, must be at specific
employee relationship. place as [sic] specified time, as they generally observe
prompt departure and arrival from their point of origin
Who are covered to their point of destination. In each and every depot,
All employees in all establishments there is always the dispatcher whose function is
Who are NOT covered precisely to see to it that the bus and its crew leave the
(1) Government employees premises at specific times and arrive at the estimated
See: Civil Service Law proper time.
Magna Carta of Public Health Workers (R.A.
7305) (4) Dependent Family Members - They are exempted
(2) Managerial employees from the coverage, for the support given by the
(a) managerial employees employer may exceed the benefit for which an
(b) officers of the managerial staff employee is entitled under appropriate labor
(c) members of the managerial staff provisions.
For purposes of the exemption, managerial employees
“are those whose primary duty consists of the (5) Domestic Workers and Persons in the Personal
management of the establishment in which they are Service of Another - employed in the employer's home
employed or of a department or subdivision.” A to minister exclusively to the personal comfort and
purported “manager” whose function is simply to carry enjoyment of the employer's family.
out the company’s orders, plans and policies is not a
managerial employee. If their functions, duties and Note: Househelp or laundrywomen working in
responsibilities do not bear relation with the staffhouses or a company, who attends to the needs of
management of the establishment, nor participate in company guests and other persons availing of said
the formulation of its policies, nor in the hiring and facilities should not be included in this definition. The
firing of its employees, then they are NOT managerial mere fact that the househelper or domestic servant is
employees. Managerial employee is not required to working within the premises of the employer and in
report at a fixed hour or to keep fixed hours of work. relation to or in connection with its business, as in its
staffhouses, warrants the conclusion that such
(3) Field Personnel - refers to non-agricultural househelper or domestic servant is and should be
employees who: considered as a regular employee. On the other hand, a
1. Regularly perform their duties away from the personal driver of the owner of the company cannot
principal place of business or branch office of claim regular employment with the company itself
the employer; and absent proof of his employment relations therewith.
2. Whose actual hours of work in the field
cannot be determined with reasonable (6) Piece Workers - workers paid by results.
certainty. Note: while the mode of compensation is on piece-rate
 exempted from the coverage due to the nature of basis, they are considered as regular employees for as
their functions which requires performance of long as the nature of the tasks they perform are
service away from the principal place of business. necessary and desirable in the usual business of the
 they are free from the personal supervision of the employer, and their employment is not dependent on
employer and the latter cannot determine with specific projects or season.
reasonable certainty the actual number of hours of
work expended for the employer's interest. APPRENTICESHIP – training within employment with
Xpn: compulsory related theoretical instructions involving a
Drivers/Bus Conductors contract between an apprentice and an employer on an
approved apprenticeable occupation.
APPRENTICE – a person undergoing training for an 5. The company must have an apprenticeship program
approved apprenticeable occupation during an duly approved by the SOLE.
established period assured by an apprenticeship
agreement. Trade and industry associations may recommend to the
APPRENTICESHIP AGREEMENT – a contract wherein a Secretary of Labor appropriate educational
prospective employer binds himself to train the requirements for different occupations.
apprentice who in turn accepts
Requisites for employment of apprentices
TRAINING AND EMPLOYMENT OF SPECIAL WORKERS 1. The employer should be engaged in a business that is
APPRENTICES considered a highly technical industry;
ART. 57 STATEMENT OF OBJECTIVES 2. The job which the apprentice will work on should be
1. To help meet the demand of the economy for trained an apprenticeable occupation.
manpower - It is no longer the SOLE, but the TESDA, who approves
2. To establish a national apprenticeship program apprenticeable occupations
through the participation of employers, workers and
government and non-government agencies GR: Apprenticeship programs shall be primarily
3. To establish apprenticeship standards for the voluntary.
protection of apprentices XPNs: Compulsory Apprenticeship:
1. National security or economic development so
SALIENT FEATURES OF THE APPRENTICESHIP LAW demand, the President may require compulsory
training;
1. It liberalizes the application of training principles to 2. Services of foreign technicians are utilized by private
facilitate the use of the training method for companies in apprenticeable trades (LC, Art. 70).
development of manpower in many other occupations
aside from the skilled trades. Apprenticeable occupation
2. It lowers the minimum qualifying age for Any trade, form of employment or occupation which
apprenticeship to 14 instead of 16 as prescribed in the requires more than three (3) months of practical
old law training with theoretical instruction officially endorsed
3. It eliminates the unrealistic requirement that a by the tripartite body and approved for apprenticeship
prospective apprentice should be a high school by the TESDA.
graduate
4. Unlike the old law which required that training should On the job training (OJT)
be undertaken in the premises of the employer alone, It is practical work experience through actual
the Labor Code gives an employer the option to conduct participation in productive activities given to or
the training in its premises, in a Department of Labor acquired by an apprentice.
and Employment training center or other public training
institution, or a combination of both When occupation deemed hazardous
5. Associations and civic groups are now allowed to 1. Nature of work exposes worker to dangerous
organize or sponsor apprenticeship programs environmental elemental contaminants or work
6. The limitation imposed by P.D. No. 173 on the conditions;
number of apprentices whose compulsory employment 2. Workers are engaged in construction work, logging,
and training may be required during the emergency fire fighting, mining, quarrying, blasting, stevedoring,
situations has been eliminated. deep-sea fishing, and mechanized farming;
3. Workers are engaged in the manufacture or handling
QUALIFICATIONS OF APPRENTICE of explosives and other pyrotechnic products;
a) Be at least (14) years of age. 4. Workers use, or are exposed to heavy or power-
NOTE: Those below 18 years of age may be eligible for driven machinery or equipment.
apprenticeship only in nonhazardous occupations;
2. Physically fit for the occupation; Employers of apprentices
3. Possess vocational aptitude and capacity; 1. Only employers in highly technical industries; and
4. Possess: 2. Only in apprenticeable occupations approved by SOLE
a. The ability to comprehend, and
b. Follow oral and written instructions; Conditions for employment of an apprentice
1. Should be an apprenticeable trade as determined by (b) those who undergo apprenticeship for the purposes
TESDA of complying with government requirements for board
2. Prior approval by the DOLE of the proposed examinations
apprenticeship program is a condition sine qua non
before an apprenticeship agreement can be validly Learners Defined—
entered into. -those who are hired as trainees in semi-skilled and
other industrial occupations which are non-
Period of apprenticeship apprenticeable and which may be learned through
Apprenticeship must not exceed 6 months. practical training on-the-job
NOTE: 1. 2 months/400 hours: Trades or occupations -must not exceed 3 months
which normally require 1 year or more for proficiency -employer must have Leadership Program duly
2. 1 month/200 hours: Occupations and jobs approved by TESDA
which require more than 3 months but less than 1 year -need not be supplemented by theoretical instructions
for proficiency.
When Learners May Be hired— Conditions:
Status of an apprentice after the lapse of the period of (a) the job is semi-skilled and non-apprenticeable and
apprenticeship can be learned in a practical way within a period of not
He is deemed a regular employee. He cannot be hired more than 3 months
as a probationary employee since the apprenticeship is (b) there are no available experienced workers
deemed the probationary period. (c) the employment of learners is necessary to prevent
curtailment of employment opportunities
Deductibility of training costs (d) their employment does not create unfair
An additional deduction from taxable income of competition in terms of labor costs or impair working
(1/2) of the value of labor training expenses incurred for standards
developing the productivity and efficiency of
apprentices shall be granted to the organizers. Age Requirement:
Conditions: - below 15 cannot be employed as a learner
1. The apprenticeship program is duly recognized by - below 18 can be employed only in non-hazardous, safe
TESDA; occupations
2. Deduction shall not exceed ten (10%) percent of
direct labor wage; and Contents of a learnership agreement
3. The person or enterprise who wishes to avail itself of Any employer desiring to employ learners shall enter
this incentive should pay his apprentices the minimum into a learnership agreement with them, which
wage. agreement shall include:
1. The names and addresses of the learners;
Compensation of an apprentice 2. The duration of the learnership period, which shall
GR: It starts at not less than 75% of the statutory not exceed 3 months;
minimum wage for the 1st 6 months (except OJT); 3. The wages or salary rates of the learners which shall
thereafter, shall be paid in full minimum wage, including begin at not less than 75% of the applicable minimum
the full COLA. wage; and
XPN: Art. 72 of the LC provides that the SLE may 4. A commitment to employ the learners if they so
authorize the hiring of apprentices without desire, as regular employees upon completion of the
compensation whose training on the job is required: learnership.
1. By the school or;
2. By a training program curriculum or; Persons who may employ learners
3. As requisite for graduation or Only employers in semi-skilled and other industrial
4. As requisite for board examination. occupations which are non-apprenticeable may employ
learners.
Apprenticeship Without compensation—
(a) those who undergo apprenticeship for the purposes Pre-termination of Learnership contract; regular
of complying with academic requirements for employment If training is terminated by the employer
graduation before the end of the stipulated period through no fault
of the Learners, they are deemed regular employees
(IRR, Book II, Rule VII, Sec. 4). Provided, they have The Magna Carta for Disabled Persons ensures equal
already been trained for 2 months. opportunities for disabled persons and prohibits
discrimination against them.
Basis Learnership Apprenticeship
Nature Training on the Training in Persons with disability (PWD)
job in semi-skilled trades which Those whose earning capacity is impaired by:
and other are 1. Physical deficiency
industrial apprenticeable, 2. Age
occupation or that is, 3. Injury
trades which are practical 4. Disease
nonapprenticeable training on the 5. Mental deficiency
and which may be job 6. Illness
learned thru supplemented
practical training by Qualified Disabled Employee
on the job in a related It provides for Equal Opportunity for Employment by
relatively short theoretical stating that no disabled person shall be denied access to
period of time. instruction for opportunities for suitable employment.
more than 3
months. A qualified disabled employee shall be subject to the
Duration of Max: 3 months Min: 3 months same terms and conditions of employment and the
Training Max: 6 months same compensation, privileges, benefits, fringe
Commitment With commitment No benefits, incentives or allowances as a qualified
to employ to employ the commitment ablebodied person.
learner as a to hire
regular employee A qualified individual with disabilityis anindividual with
if he desires upon disability who, with or without reasonable
completion of accommodation, can perform the essential functions of
learnership the employment position that such individual holds or
In case of Considered a Worker not desires.
Pre- regular employee considered as
termination if pre-termination regular NOTE: Consideration shall be given to the employer’s
of Contract occurs after 2 employee. judgment as to what functions of job are essential, and
months of if an employer has prepared a written description
training and the before advertising or interviewing applicants for the job
dismissal is (RA 7277, Sec. 4[1]).
without fault of
the Learner. Employment of PWD
Coverage Semi-skilled/ Highly technical 1. When their employment is necessary to prevent
Industrial industries and curtailment of employment opportunities; and
occupations only in 2. When it will not create unfair competition in labor
industrial costs or lower working standards (LC, Art. 79).
occupation
List There is a list of No list Employment period of PWD
learnable trades There is no minimum or maximum duration. It depends
by TESDA on the agreement but it is necessary that there is a
Written Requires Requires specific duration stated.
Agreement learnership apprenticeship
agreement agreement Persons with disability can be a regular employee
Persons with disability can be a regular employee if
PERSONS WITH DISABILITY (R.A. 7277 as amended by work is usually or necessarily desirable to the business
R.A. 9442) (Bernardo v. NLRC, G.R No. 122917, July 12, 1999).

Persons who may employ persons with

disability
Employers in all industries: Provided, the disability is not
such as to effectively impede the performance of job XPN: If the PWD, however is hired as a learner and
operations in the particular occupations for which they employed in piece or incentive-rate jobs during the
are hired. training period, he shall be paid one hundred percent
(100%) of the applicable minimum wage (Chan, 2014).
Not all workers with a disability are considered
disabled workers Incentives of employer who are employing disabled
The mere fact that a worker has a disability does not workers
make him a disabled worker because his disability may 1. Entitled to an additional deduction, from their gross
not impair his efficiency or the quality of his work. If income, equivalent to 25% of the total amount paid as
despite his disability he can still efficiently perform his salaries and wages to disabled persons.
work, he would be considered a qualified disabled Provided, however, that such entities present proof as
worker entitled to the same treatment as qualified able- certified by the DOLE that disabled persons are under
bodied workers (Bernardo v. NLRC, G.R. No. 122917, their employ. Provided further, that the disabled Ee is
July 12, 1999). accredited with the DOLE and the Department of Health
as to his disability, skills and qualifications.
Rights and privileges of PWD
1. Equal opportunity for employment - No PWD shall be 2. Private entities that improve or modify their physical
denied access to opportunities for suitable facilities in order to provide reasonable accommodation
employment. Five percent (5%) of all casual emergency for disabled persons shall also be entitled to an
and contractual positions in the DSWD, Health, additional deduction from their net taxable income,
Education and other government agencies, offices or equivalent to 50% of the direct costs of the
corporations engaged in social development shall be improvements or modifications (R.A. 7277, Sec. 8).
reserved for PWDs (Section 5, Chapter 1, Title II, RA
7277). The financial incentive, if any, granted by law to SPQ
XPN: Bona Fide Occupational Qualification Garments whose cutters and sewers in its garments-for-
export operations are 80% staffed by deaf and deaf-
2. Sheltered employment - The Government shall mute workers is additional deduction from its gross
endeavour to provide them work if suitable income equivalent to 25% of amount paid as salaries to
employment for disabled persons cannot be found persons with disability (2013 Bar). Basis: Magna Carta
through open employment for
3. Apprenticeship - PWD may be hired as apprentices or Disabled Persons.
learners if their disability is not such as to effectively
impede the performance of job operations in the
particular occupations for which they are hired (LC, Art.
81).
4. Vocational rehabilitation - To develop the skills and
potentials of disabled workers and enable them to Persons with Disability vs. Differently Abled
compete in the labor market Persons with Differently Abled
5. Vocational guidance and counselling Disability
Earning capacity is Refers to all suffering
Wage Rate (2013 Bar) impaired by age, or from restriction of
GR: Handicapped workers are entitled to not less than physical or mental different abilities as a
seventy-five percent (75%) of the applicable adjusted deficiency or injury. result of mental, physical
minimum wage (Article 80, LC). or sensory impairment to
perform an activity in the
XPN: All qualified handicapped workers shall receive the manner or within range
full amount of the minimum wage rate prescribed considered normal for a
herein pursuant to RA 7277 (Wage Order No. NCR-18, human being.
Effective October 4, 2013). Covers only workers. Covers all activities or
endeavours.
NOTE: Generally, if a PWD is hired as an apprentice or Basis: loss/impairment Basis: range of activity
learner, he shall be paid not less than seventy-five of which is normal for a
percent (75%) of the applicable minimum wage.
earning capacity. human being.
Loss due to injury or Restriction due to
physical or mental impairment of mental/
defect or age. physical/ sensory defect.
If hired, entitled to 75% If qualified, entitled to all
of minimum wage. terms and conditions as
Subject to definite qualified able-bodied
periods of employment. person.
Employable only when No restrictions on
necessary to prevent employment. Must get
curtailment of equal opportunity and no
employment unfair competition.
opportunity.