Labor Law Cheat Sheet

Recruitment and Placement

Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers, including referrals, contract services, promising, or advertising employment (offering employment to two or more persons with or without pay).

License

A document issued by DOLE authorizing a person or entity to operate a private employment agency for recruitment and placement for a fee.

Authority

A document issued to authorize a person or entity recognized as a private recruitment agency to conduct recruitment and placement without a fee.

Employment Permit for Non-Resident Aliens

A requirement where employers must obtain an employment permit from DOLE and submit a list of employed non-resident aliens within 30 days (aliens cannot transfer jobs without DOLE approval).

National Manpower Development Program

National policies and administrative machinery ensuring efficient development and utilization of the nation's manpower through training and employment promotion.

Manpower

The portion of the population with actual or potential capability to contribute directly to the production of goods and services.

Entrepreneurship

Training for self-employment or assistance to individual or small industries.

Apprenticeship

Practical work on the job (OJT) combined with theoretical instruction for 3 to 6 months in an apprenticeable occupation for individuals at least 14 years old, receiving at least 75% of the minimum wage (no obligation to hire).

Learnership

Training for semi-skilled and non-apprenticeable industrial occupations not exceeding 3 months, where companies are obliged to hire learners after the program, paying at least 75% of the minimum wage.

Handicapped Workers

Workers whose earning capacity is limited by age or mental/physical deficiencies, employed to prevent reduced employment opportunities without causing unfair competition.

Managerial Employees

Employees whose primary duty is the management of the establishment or a department.

Field Personnel

Non-agricultural employees who perform their tasks outside principal work premises whose hours cannot be determined with reasonable certainty.

Normal Work Hours

Standard work duration of 8 hours a day. Rest Period / Coffee Breaks

Meal Period

Time-off of at least 1 hour for regular meals.

Night Shift Differential

Additional compensation for work performed between 10 PM and 6 AM.

Emergency Overtime Work

Overtime work permitted during national emergencies, war, actual/imminent emergencies, urgent repairs on machinery to prevent damage/loss of perishable goods, or to prevent serious business obstruction.

Right to Weekly Rest Day

Entitlement to 24 consecutive hours of rest after 6 consecutive days of work, respecting employee religious preferences where applicable.

Forms of Wage Payment

Wages must be paid in legal tender (never via promissory notes, vouchers, coupons, tickets, or chits), though checks or money orders are permitted if customary.

Time and Place of Payment

Wages must be paid at the workplace twice a month with intervals not exceeding 16 days.

Attorney's Fees (Unlawful Withholding)

Set at 10% of the wages recovered in cases of unlawful wage withholding.

Wage Deductions Prohibitions

Deductions are prohibited except for employer-recompense insurance, union dues, or deductions authorized by law (employers cannot deduct for loss or damage unless the employee is heard and shown responsible).

Employment of Minors

Children below 15 years cannot be employed unless directly under parent/guardian responsibility; 15-to-18-year-olds may work limited hours, and those under 18 are barred from hazardous work.

Employment of Househelpers

Governed by contracts of up to 2 years (renewable); employers must provide free lodging, food, medical attendance, and elementary education opportunities for househelpers under 18.

Employment of Night Workers

Workers operating from 12 MN to 5 AM who must undergo free health assessments before assignment, at regular intervals, or when experiencing health problems.

Emergency Medical and Dental Services Requirements

Vary by establishment size (e.g., 51–200 employees requires a full-time nurse for hazardous work or graduate first-aider for non-hazardous work; 201–300 requires a full-time nurse, part-time physician/dentist, and clinic; >300 requires full-time medical staff, clinic, and bed capacity scaling at 1 bed per 100 employees).

Temporary Total Disability (TTD) Benefits

Daily income benefit of 90 to 90 pesos for continuous periods up to 120 days.

Permanent Total Disability (TTD/PTD Benefits)

Monthly income benefit guaranteed for 5 years and payable until death for severe conditions like loss of sight in both eyes, loss/paralysis of two limbs, or brain injury resulting in insanity.

Permanent Partial Disability (PPD) Benefits

Monthly income benefit paid for scheduled periods based on specific body parts lost (e.g., little finger = 3 months, thumb = 10 months, arm = 50 months, leg = 46 months, sight of one eye = 25 months).

Death Benefits

Monthly income benefit plus 10% for each dependent child (up to 5 children, starting from the youngest), guaranteed for 5 years and tax-exempt.

National Labor Relations Commission (NLRC)

Body attached to DOLE for program and policy coordination; handles appeals of Labor Arbiter decisions within 10 calendar days based on abuse of discretion, fraud, pure questions of law, or factual errors.

Bureau of Labor Relations

Possesses exclusive authority to act upon its own initiative or upon request in labor cases, with 15 days to act before requiring extension agreements.

Unfair Labor Practices (ULP - Book Five)

Violations of constitutional rights where employers or labor organizations interfere with, restrain, or coerce employees in self-organization or attempt discriminatory actions.

Collective Bargaining Procedure

Initiated by a written notice, requiring a reply within 10 calendar days, conferences within 10 days of request if differences arise, and DOLE/Board intervention if deadlocked.

Just Causes of Termination

Insubordination, neglect of duties, fraud, and commission of a crime.

Authorized Causes of Termination

Labor-saving devices, redundancy, retrenchment, or business closure, carrying separation pay ranging from 1 month to 1/2 month per year of service.

Disease as Ground for Termination

Sickness incurable within 6 months where continued work is prejudicial, carrying separation pay equivalent to retrenchment rules.

Ineffectual Termination

Termination for valid causes executed without due process, requiring the employer to pay nominal damages.

Benefits

Indirect financial and nonfinancial payments employees receive for continued employment.

Supplemental Pay Benefits

Benefits for time not worked.

Severance Pay

Payments designed to reduce the chances of litigation from former employees.

Pension Plans

Income provided to individuals in their retirement.

Compressed Workweek

Working fewer but longer days per week.

Job Sharing

Two or more people sharing a single full-time job.

Work Sharing

Temporary reduction in work hours by a group of employees to prevent layoffs.

Direct Base Pay

Fixed salary or wage.

Pay Progression

Wage increases related to age, length of service, or performance criteria.

Performance Variable Pay

Pay directly linked to work-related behavior, split into payment by results (piecework, commission, output targets) and performance-related pay (based on firm profitability).

Indirect Pay or Benefits

Non-cash items or employee benefits.