Labor Law, Commercial Law, and Special Legal Topics Flashcards

Vocabulary flashcards covering core topics in Labor Law, Social Security Law, Law on Sales, Credit Transactions, BP 22, Consumer Protection, Lemon Law, and Financial Rehabilitation and Insolvency.

Four-fold Test

A test used to determine the existence of an employer-employee relationship based on four elements: (1) selection and engagement of the employee, (2) payment of wages, (3) power of dismissal, and (4) power to control the employee's conduct.

Control Test

An element of the employer-employee relationship where the employer reserves the right to control not only the end achieved, but also the manner and means used in reaching that end.

NCR Daily Minimum Wage (Wage Order No. NCR-24)

Effective 16 July 2023, the new daily minimum wage rate for the Non-Agriculture sector in the National Capital Region is Php 610.00, reflecting a Php 40.00 basic wage increase.

Normal Hours of Work

Working hours required of an employee that must not exceed eight (8) hours a day and are exclusive of the daily one (1) hour lunch break.

Overtime Premium

Additional compensation equivalent to an employee's regular wage plus at least 25% thereof for work beyond eight hours on a regular day, or plus at least 30% for work beyond eight hours on a holiday or rest day.

Night Shift Differential

A premium of not less than 10% of the regular wage paid to an employee for each hour of work performed between 10:00 PM and 6:00 AM.

Holiday Premium

Payment of regular daily wage during regular holidays, or twice the regular rate if the employee is required to work on a regular holiday.

13th Month Pay

Mandatory compensation under Presidential Decree No. 851 equivalent to one twelfth (1/12) of an employee's basic salary within a calendar year, paid not later than December 24.

Weekly Rest Period

A mandatory rest period of not less than twenty-four (24) consecutive hours provided by an employer after every six (6) consecutive normal work days.

Service Incentive Leave

A yearly leave entitlement of five (5) days with pay granted to every employee who has rendered at least one year of service.

Expanded Maternity Leave (R.A. No. 11210)

Law granting one hundred five (105) days of paid maternity leave to female workers with an option to extend 30 days without pay, plus an additional 15 days with pay for solo mothers.

Paternity Leave Act of 1996 (R.A. No. 8187)

Law granting 7 days of paid paternity leave to married male employees for the birth of their child.

Parental Leave for Solo Parents (R.A. No. 8972)

Law granting seven (7) work days of parental leave with full pay every year to solo parents left alone with the responsibility of parenthood.

Dependents (Social Security Law)

Includes the legal spouse receiving support, unmarried child under 21 years of age (or incapacitated regardless of age), and parents receiving regular support from an SSS member.

Primary Beneficiaries (SSS)

The dependent spouse (until remarriage) and dependent legitimate, legitimated, legally adopted, and illegitimate children of an SSS member.

Secondary Beneficiaries (SSS)

Dependent parents of an SSS member, or in their absence, any other person designated by the member.

Dependents' Pension (SSS)

An additional benefit equivalent to 10% of the monthly pension or Php 250.00, whichever is higher, paid for each dependent child (up to 5) conceived on or before the date of contingency.

Funeral Grant (SSS)

A grant equivalent to Twelve thousand pesos (Php 12,000.00) paid in cash or in kind upon the death of an SSS member, permanently totally disabled member, or retiree.

SSS Delinquency Penalty

A penalty of two percent (2%) per month assessed on an employer for unpaid or unremitted SSS contributions from the due date until paid.

Contract of Sale

A contract where one party obligates himself to transfer ownership and deliver a determinate thing, and the other to pay therefor a price certain in money or its equivalent.

Consent (in Sale)

Essential element manifested by the concurrence of the offer and acceptance upon the thing and the cause constituting the contract.

Earnest Money

Something of value given by the buyer to the seller to show genuine intent and bind the bargain, which forms part of the purchase price and serves as proof of contract perfection.

Option Money

An accepted consideration distinct from the price that binds a promisor in a unilateral promise to buy or sell a determinate thing.

Eviction

Deprivation of the vendee of the whole or part of the thing purchased by final judgment based on a right prior to the sale or an act imputable to the vendor.

Recto Law

Law governing contracts of sale of personal property by installment, providing remedies such as specific performance, rescission, and chattel mortgage foreclosure.

Maceda Law

Law covering contracts involving the sale or financing of real estate on installment payments, granting grace periods and specific cancellation protections for buyers.

Conventional Redemption

A form of redemption taking place when the vendor reserves the right to repurchase the thing sold by returning the purchase price, contract expenses, and necessary/useful expenses.

Legal Redemption

The right to be subrogated upon the same terms and conditions in place of one who acquires a thing by purchase, dation in payment, or onerous title.

Pledge

An accessory contract securing a principal obligation where personal property is delivered to the creditor or a third person, requiring absolute ownership and free disposal by the pledgor.

Real Mortgage

An accessory contract where immovables or alienable real rights upon immovables are subjected as security for an obligation and recorded in the Registry of Property.

Chattel Mortgage

A security contract where personal property is recorded in the Chattel Mortgage Register as security for the performance of an obligation.

Pactum Commissorium

A void stipulation in a pledge or mortgage that allows the creditor to automatically compensate or appropriate the pledged or mortgaged properties upon default.

Batas Pambansa Bilang 22 (BP 22)

The law penalizing the making, drawing, or issuing of checks without sufficient funds or credit upon presentment.

Prima Facie Evidence of Knowledge (BP 22)

Refusal of payment of a check due to insufficient funds when presented within 90 days, unless the drawer pays or makes arrangements within 5 banking days after notice of dishonor.

Credit (under BP 22)

An arrangement or understanding with the drawee bank for the payment of a check.

Deceptive Sales Acts and Practices

Acts or practices by a producer, manufacturer, supplier, or seller involving concealment, false representation, or fraudulent manipulation that induce a consumer into a sales/lease transaction.

Price Tag Act

Law requiring all articles of commerce offered for retail sale to be publicly displayed with appropriate tags indicating their price, to be sold uniformly without discrimination.

Philippine Lemon Law

Law covering brand new motor vehicles reported to have nonconformities within twelve (12) months from delivery or up to twenty thousand (20,000) kilometers of operation.

Lemon Law Repair Attempts Requirement

Requires at least four (4) separate repair attempts by the same manufacturer/dealer for the same complaint before a consumer can invoke rights under the Lemon Law.

Rehabilitation (FRIA)

The restoration of a debtor to a condition of successful operation and solvency when continuous operation is economically feasible and creditors recover more than in immediate liquidation.

Suspension of Payments

A court proceeding initiated by an individual debtor who possesses sufficient property to cover debts but foresees the impossibility of meeting them when they fall due.

Commencement Order

Court order marking the start of rehabilitation proceedings, which includes a stay order, receiver appointment, and publication directives.

Stay or Suspension Order

An order issued under FRIA suspending all enforcement actions, court proceedings, judgments, and non-ordinary business property transfers against the debtor.

Cram Down Effect

The power of courts to approve a rehabilitation plan over the objection of creditors, even if contractual obligations are impaired.

Involuntary Liquidation Threshold (FRIA)

Liquidation initiated by 3 or more creditors with aggregate claims of at least Php 1,000,000.00 or 25% of subscribed capital stock/partner contributions, whichever is higher.