Labor Code of the Philippines

• This is the body of laws which governs pre-employment, employment proper, and post employment (Kato).

• It is the body of regulatory laws governing the terms and conditions of employment, the organization and representation of workers, security of tenure, and social security (Kato)

• It comprehends the mass of statutes, rules, and jurisprudence which delineate State policies on labor and employment, and guarantees the rights and dictates the duties of workers and employers with respect to the terms and conditions of employment by enjoining compliance with certain standards, or by establishing a legal framework within which the terms and conditions of work and the employment relationship may be better negotiated, adjusted, and administered, either through collective bargaining or other concerted activity (Azucena).

Labor Law

3 Basic Divisions of Labor Laws

1. Labor Standards Law

2. Labor Relations Law

3. Social Welfare Legislations

_____________is that which sets out the minimum terms, conditions and benefits which the employer is legally bound to comply or provide his employees, and which the latter may demand as a matter of legal right.

a. Labor Standards Law

b. Labor Relations Law

c. Social Welfare Legislations

a. Labor Standards Law

___________is that which defines the status, rights and duties and the institutional mechanisms that govern the individual and the collective interactions of the employees, employer or their representatives.

a. Labor Standards Law

b. Labor Relations Law

c. Social Welfare Legislations

b. Labor Relations Law

__________are those that afford certain kinds of protection and guarantee the payment of particular benefits to the worker and his family in the event of interruption or cessation of work due to sickness, disability, old age, death and similar contingencies (e.g. SSS, GSIS, ECC).

a. Labor Standards Law

b. Labor Relations Law

c. Social Welfare Legislations

c. Social Welfare Legislations

The State affirms labor as a ________. It shall protect the rights of workers and promote their welfare.

primary social economic force

"The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all." True or False?

True

7 constitutional provisions relative to Labor

1. Self-organization

2. Collective bargaining and negotiations

3. Security of tenure

4. Humane conditions of work and a living wage

5. Participative Management

6. Peaceful concerted activities, including the right to strike

7. Just share and reasonable returns (Principle of Shared Responsibility)

Citation of Labor Code of the Philippines

PD 442

Date of the Labor Code signed into law?

May 1, 1974

Date of Effectivity of Labor Code?

November 1, 1974

Declaration of Basic Policy

The State shall afford protection to labor.

The employer has ______ this is also known as____

property rights; management prerogatives

Should all issues affecting labor be decide in favor of labor? Yes or No

No

It speaks of disregarding rules and giving due weight to all the equities of the case. For labor law determinations are not only secundum rationem but secundum caritatem (not only based on law, but also based on equity)

Doctrine of Compassionate Justice

Which law governs a government corporation incorporated under the Corporation Code?

A. Civil Service Law

B. Labor Code

C. Administrative Code

D. Public Service Act

B. Labor Code

A government corporation created under a special charter is covered by which law?

A. Labor Code

B. Tax Code

C. Civil Service Law

D. Revised Penal Code

C. Civil Service Law

4 test to determine employee/employer relationship

1. Selection and engagement of employee

2. Payment of wages

3. Power of dismissal

4. Employer's power to control the employee with respect to the means and methods by which the work is to be established (Control test)

Types of employees

1. Regular Employees

2. Casual Employees

3. Probationary Employees

4. Contractual Employees

5. Project

6. Seasonal

REGULAR EMPLOYED VS CASUAL EMPLOYED

An employee is considered ______ if they are hired to perform activities that are:

• Usually necessary or desirable in the employer's usual business or trade.

EXCEPT when the employment:

• Has been fixed for a specific project or undertaking with a predetermined completion or termination date.

• Is seasonal in nature and the employment is for the duration of the season.

Regular employed

Which of the following best describes regular employment?

A. Employment that is limited to a specific season or duration as determined at the time of hiring.
B. Employment for tasks that are not usually necessary or desirable to the usual business or trade of the employer.
C. Employment where the employee performs activities usually necessary or desirable in the usual business or trade of the employer, except when the work is project-based or seasonal and defined as such at the time of engagement.
D. Employment that is always fixed-term and project-based regardless of the nature of work.

C. Employment where the employee performs activities usually necessary or desirable in the usual business or trade of the employer, except when the work is project-based or seasonal and defined as such at the time of engagement.

Which of the following best describes casual employment?

A. Employment where the employee performs tasks usually necessary or desirable to the employer’s regular business.
B. Employment fixed for a specific project or undertaking with a defined end at the time of hiring.
C. Employment that automatically converts to permanent status after six months regardless of the work nature.
D. Employment not covered by the definition of regular employment, often involving work that is not usually necessary or desirable to the employer’s usual business.

D. Employment not covered by the definition of regular employment, often involving work that is not usually necessary or desirable to the employer’s usual business.

Term for Probationary Employment?

Should not exceed 6 months

An employee who is allowed to work after a probationary period shall be considered a ___.  

1. Regular Employee

2. Casual Employee

3. Probationary Employee

4. Contractual Employee

5. Project

6. Seasonal

1. Regular Employee

Enumerate the two (2) grounds for terminating the services of a probationary employee.

1. Just cause

2. fails to qualify as a regular employee

What are the two (2) grounds for the termination of a regular employee under the principle of security of tenure?

1. Just cause

2. When authorized under the law

An employee who is unjustly dismissed from work shall be entitled to

• Reinstatement without loss of seniority

• Reinstatement of privileges

• Full backwages with allowances

• Other benefits or their monetary equivalent

Two (2) grounds for termination of employment?

1. Just or authorized cause (substantive law)

2. after due process (procedural due process)

What are the five (5) grounds just causes for termination by the employer?

1. Serious misconduct or willful disobedience

2. Gross and habitual neglect of duties

3. Fraud or willful breach of trust

4. Commission of a crime or offense against the employer, their family, or authorized representative

5. Other causes analogous to the foregoing

True or False

The separation from work of an employee for a just cause does not entitle him to the termination pay.

True

Grounds for Termination of Employment

What are the two (2) requirements for an employee to terminate employment without just cause?

1. Serve a written notice to the employer

2. Give at least one month’s notice in advance

What are the just causes for an employee to terminate the relationship without notice?

1. Serious insult to honor and person

2. Inhuman and unbearable treatment

3. Crime or offense against employer or family

4. Other analogous causes

Regular Workday Duration?

shall not exceed 8 hours a day, excluding meal breaks

Two (2) Regular Workweek Duration?

1. 40-hour workweek if employee works 5 days

2. 48 hours if 6 days

An employee is entitled not less than ___ minutes of unpaid break for their regular meals.

60 minutes

Rest periods of short duration or coffee breaks

5 to 20 minutes, considered paid if provided

Minimum wage for Metro Manila in 2024?

Php 573 to Php 610

RTWPB stands for

Regional Tripartite Wages and Productivity Board

Is holiday pay given if not worked?
A. Only if they work on the holiday
B. Always, regardless of attendance
C. Yes, 1-day pay for regular holidays if present or on paid leave before the holiday.
D. Only after 1 year of service

C. Yes, 1-day pay for regular holidays if present or on paid leave before the holiday.

Not entitled for Holiday pay?

1. Workers for retail and service companies with less than 10 regular employees

2. Managerial employees

3. Managerial staff members and officers

4. Government Employees

5. Kasambahays

6. Employer’s family members who are dependent on the employer for support

7. Employees engage on task, contract, or purely commission basis

Five (5) Authorized Causes

1. Installation of labor-saving devices

2. Redundancy

3. Retrenchment or downsizing

4. Closure or cessation of operation

5. Disease

Separation pay for installation of labor-saving devices

1. at least 1 month salary, OR

2. 1 month salary for every year of service (whichever is higher)

3. If the employee worked at least 6 months in a year, it's counted as 1 whole year

Separation pay for employees who suffers from a disease.

1. at least to his 1-month salary, or

2. to ½ month pay for every year of service (whichever is higher)

3. a fraction of at least 6 months being considered as 1 whole year

2 notice rule

1. Notice of charge

2. Notice of dismissal

Period of Suspension

Shall last longer than 30 days

Set of procedures by which dissatisfaction and disagreements between management and employees can be examined; expressly designed for facilitating the handling of complaints and disputes between the employee and his employer, as well as between the union and the employer with respect to the interpretation, administration and enforcement of the labor agreement.

Grievance Machinery

This is a mandatory provision in the CBA, otherwise it is not registrable. Until the parties include a grievance procedure, the CBA registration is deferred.

grievance procedure

• This is a procedure where the dispute is submitted to an impartial 3rd party called in to hear the arguments such that each side receives a fair hearing where it may present all of the facts it considers pertinent to the case.

• it is defined as a contractual proceeding where the parties to a dispute select a judge of their own choice and by consent submit their controversy to him for determination.

Voluntary Arbitration

Two (2) Kinds of Arbitration

1. Voluntary arbitration

2. Compulsory arbitration

Voluntary arbitration is called

Arbitrator

Compulsory arbitration is called

Labor arbiter

Offices involved in Labor cases

1. Labor Arbiter

2. National Labor Relations Commission
   (NLRC)

3. National Conciliation and Mediation
   Board (NCMB)

4. Bureau of Labor Relations

5. DOLE

6. DOLE - Regional Offices

Premium pay for work within 8hrs if it falls within rest day or special day

Plus 30% of the daily basic rate or a total of 130%

Premium pay for work within 8hrs special day falling on the employee’s rest day.

Plus 50% of the daily basic rate or a total of 150%

Premium pay for work within 8hrs regular holiday falling on the employee’s rest day

Plus 50% of the daily basic rate or a total of 230%

According to labor guidelines, how should a day-off of 24 consecutive hours after 6 days of work be scheduled?

A. The employer can schedule it anytime without informing the workers.

B. The workers decide the schedule on their own.

C. It must be scheduled by the employer upon consultation with the workers.

D. It is only required if the employee requests it in writing.

C. It must be scheduled by the employer upon consultation with the workers.

Overtime pay for work in excess of 8 hours on

• Ordinary days: plus ____of the basic hourly rate

• Special days, rest days and holidays: plus ___ of the regular hourly rate on said days

25%; 30%

Nightshift differential (NSD) pay:

plus 10% of the basic/regular rate between 10 pm and 6 am

Service incentive leave pay

5 days with pay per year of service

What is the percent rule of the service charge which shall be distributed completely and equally to covered employees, except managers?

100% Rule

Separation Pay?

Minimum of ½ month pay for every year of service for authorized causes of separation

13th Month Pay?

1/12 of the total basic salary earned within the calendar year

Under RA 7641, how is the retirement pay calculated for optional retirement at 60 or compulsory retirement at 65?

A) 15 days salary for every year of service
B) 20 days salary for every year of service
C) 22.5 days salary for every year of service
D) 30 days salary for every year of service

C) 22.5 days salary for every year of service

Under RA 7641 as amended by RA 8558, what is the retirement policy for underground mine employees?

A) Optional retirement at age 45, compulsory at age 55
B) Optional retirement at age 50, compulsory at age 60
C) Optional retirement at age 55, compulsory at age 65
D) Optional retirement at age 60, compulsory at age 70

B) Optional retirement at age 50, compulsory at age 60

Under the new law, how many days of maternity leave are granted for a miscarriage or emergency termination?

A) 30 days
B) 60 days
C) 90 days
D) 105 days

B) 60 days

What is the new standard maternity leave duration for both normal and caesarean deliveries under the law?

A) 60 days
B) 78 days
C) 90 days
D) 105 days

D) 105 days

Under the law, how many days of paternity leave are granted to a father to attend to the needs of his legal wife before, during, or after delivery?

A) 3 days with full pay
B) 5 days with full pay
C) 7 days with full pay
D) 10 days with full pay

C) 7 days with full pay

According to Article 102, how should wages be paid to employees?

A) In kind, at or near the place of work
B) In cash, legal tender, at or near the place of work
C) Through a bank, regardless of location
D) Via checks, at the employee's residence

B) In cash, legal tender, at or near the place of work

Under the law, when is payment of wages allowed to be made through a bank?

A) Only in establishments with more than 50 employees
B) When the bank is within 5 kilometers of the workplace
C) Upon written petition of the majority of workers in establishments with 25 or more employees within a 1-kilometer radius of a bank
D) Only for employees with a bank account

C) Upon written petition of the majority of workers in establishments with 25 or more employees within a 1-kilometer radius of a bank

To whom should payment of wages be made directly?
A. To the employer
B. To any family member
C. To the employees, except in certain cases
D. To government agencies

C. To the employees, except in certain cases

What is the general rule on the frequency of wage payment?
A. Once a month only
B. Once every three weeks
C. Not less than once every two weeks or twice a month
D. Only at the end of the year

C. Not less than once every two weeks or twice a month

To whom should payment of wages be made directly?
A. To the employer
B. To any family member
C. To the employees, except in certain cases
D. To government agencies

C. To the employees, except in certain cases

What is the general rule on the frequency of wage payment?
A. Once a month only
B. Once every three weeks
C. Not less than once every two weeks or twice a month at intervals not exceeding 16 days
D. Only at the end of the year

C. Not less than once every two weeks or twice a month at intervals not exceeding 16 days

Under the rule of non-interference in the disposal of wages, can an employer make deductions from an employee’s wages?
A. Yes, freely at the employer’s discretion
B. No, never under any circumstance
C. Only if deductions are legally authorized, such as for insurance premiums or union dues
D. Only for company expenses

C. Only if deductions are legally authorized, such as for insurance premiums or union dues

Which of the following is an example of an authorized wage deduction?
A. Payment for employer's personal debts
B. Premium for insurance
C. Penalty for tardiness (without due process)
D. Donation to employer’s charity

B. Premium for insurance

Under Article 114, when are deposits for loss or damage allowed?
A. Always, if approved by the employer
B. Only with written consent of the employee
C. Whenever there is company property involved
D. Only as an exception provided by law

D. Only as an exception provided by law

Which of the following is prohibited under Article 116 of the Labor Code?
A. Advance payment of wages
B. Giving bonuses based on performance
C. Withholding of wages and taking kickbacks
D. Paying wages in kind

C. Withholding of wages and taking kickbacks

What does Article 118 of the Labor Code prohibit?
A. Payment of wages in installments
B. Requiring overtime without pay
C. Retaliatory actions against employees who file complaints
D. Mandatory deductions for health insurance

C. Retaliatory actions against employees who file complaints

In case of bankruptcy or liquidation of a business, whose money claims are given preference?
A. Government claims
B. Workers' money claims
C. Contractor’s claims
D. Bank creditors' claims

B. Workers' money claims

Which of the following is required to ensure safe and healthful conditions in the workplace?
A. Unlimited overtime work
B. Proper illumination and ventilation, fire exits and extinguishers, occupational health personnel services, family welfare/family planning services at the workplace, etc.
C. Private security services
D. Personal expenses for health services

B. Proper illumination and ventilation, fire exits and extinguishers, occupational health personnel services, family welfare/family planning services at the workplace, etc.

Citation of Night Work Law

RA 10151

Women are allowed to perform night work under what RA?

RA 10151

What is the minimum employable age?

15 yrs

Under what conditions can a worker below 15 years old be employed?
A. If they work full-time in any business
B. If they are under the sole responsibility of parents/guardians, in a family business, with no interference in schooling, and a work permit from DOLE
C. If they work in hazardous jobs
D. If they agree voluntarily without parental supervision

B. If they are under the sole responsibility of parents/guardians, in a family business, with no interference in schooling, and a work permit from DOLE

Who is prohibited from being employed in hazardous or deleterious undertakings?
A. Persons aged 18 and above
B. Persons below 21 years old
C. Persons below 18 years old
D. Persons below 15 years old

C. Persons below 18 years old

What are the working conditions for persons aged 15 to 18 under RA 9231?
A. Maximum of 6 hours daily and 30 hours weekly
B. Maximum of 8 hours daily and 40 hours weekly, with no work from 10pm to 6am
C. Unlimited working hours with nighttime work allowed
D. Part-time work only allowed

B. Maximum of 8 hours daily and 40 hours weekly, with no work from 10pm to 6am

What are employees allowed to form under the principle of self-organization?
A. Private businesses
B. Welfare committees and unions
C. Management committees
D. Government agencies

B. Welfare committees and unions

When can an employee join a union?
A. After six months of employment
B. Only after regularization
C. On the very first day of employment
D. Only after one year of service

C. On the very first day of employment

Citation of Freedom to Bargain

Art. 125

What is ECC stands for?

Employees’ Compensation Commission

Other rights

1. Solo Parent’s Leave

2. Battered Woman Leave

3. Expanded Maternity Leave Act

4. Work-From-Home Law

5. First-time Jobseekers Assistance Act

6. Discrimination

When can overtime work be required?

1. At war or a national or local emergency

2. To prevent loss of life or property or in case of imminent danger to public safety

3. Urgent work to be performed on machines

4. prevent loss or damage to perishable goods

5. prevent serious obstruction or prejudice to the business or operations of the employer

When employer may require work on a rest day

1. actual or impending emergencies

2. urgent work to be performed on the machinery

3. abnormal pressure of work due to special circumstances

4. prevent loss or damage to perishable goods

5. nature of work requires continuous operations

6. other circumstances

Who is not entitled to the Service Incentive Leave (SIL) under the law?
A. An employee who has worked for over one year in a company with 15 employees
B. An employee who already receives 10 days of paid vacation leave
C. An employee in a company with 20 workers and no paid leave policy
D. An employee who just completed their first month at work

B. An employee who already receives 10 days of paid vacation leave

How many days of Service Incentive Leave (SIL) with pay is an eligible employee entitled to yearly?
A. 3 days
B. 5 days
C. 7 days
D. 10 days

B. 5 days

1. How should service charges be distributed among covered employees?
A. Based on employee rank and performance
B. Equally among all managerial staff only
C. Completely and equally among all covered employees regardless of position
D. At the discretion of the employer

C. Completely and equally among all covered employees regardless of position

What happens if the collection of service charges is discontinued?
A. Employees will no longer receive any additional pay
B. The average share will be deducted from their salary
C. The average share must be integrated into each employee's basic salary
D. Only senior employees will receive compensation

C. The average share must be integrated into each employee's basic salary

This is a rule called if the collection of service charges is discontinued, the average share of each covered employee shall be integrated in his basic salary

Integration Rule

This is an act allowing the employer of night workers

RA 10151

____ is defined as one who renders work for not less than 7 consecutive hours between midnight and 5:00 am the following day.

Night worker