Labor Laws and Related Laws

Security of Tenure (Labor Code, Article 294)

In cases of regular employment, an employer shall not terminate an employee except for a just cause or when authorized by law.

Social Justice (1987 Constitution, Article XIII, Section 3)

The State shall afford full protection to labor, promote full employment, ensure equal work opportunities, and regulate relations between workers and employers

Labor Standards Law

Laws that establish the minimum terms, conditions, and benefits of employment that employers must provide and employees are entitled to receive

Labor Relations Law

Laws that define the status, rights, and duties of employers, employees, and their representatives. They also establish the mechanisms governing their individual and collective interactions

Labor

Physical toil that does not necessarily involve the application of skill

Work

Any form of physical or mental exertion, or both, performed to achieve an objective other than recreation or amusement

Social Legislation

Laws that provide specific protections or benefits to society or particular sectors in furtherance of social justice

Basic Rights of Workers

The right to a just wage, rest, a safe workplace, protection of personality, appropriate subsidies, pension and insurance, assembly and association, maternity-related social security, and strike

Labor Code of the Philippines

Presidential Decree No. 442, which governs employee-employer relations and their respective rights and obligations

Presidential Decree No. 442

other name for the Labor Code of the Philippines

Labor Law

Provides the general framework within which management and labor negotiate employment terms

Employer's Liability Act No. 1874

Philippine law under __ that establishes employer responsibility and legal remedies concerning employee injuries and workplace-related circumstances

Republic Act No. 1054

Requires owners, lessees, or operators of commercial, industrial, or agricultural establishments to provide free emergency medical and dental attendance to employees and laborers

Commonwealth Act No. 444

Also known as the Eight-Hour Labor Law, it establishes a maximum regular working day of eight hours for employees covered by the law

Commonwealth Act No. 103

Created the Court of Industrial Relations, which preceded the modern labor dispute-resolution system

Presidential Decree No. 21

Identified in the notes as having established the National Labor Relations Commission (NLRC)

Republic Act No. 875

Known as the Magna Carta of Labor, it aimed to promote industrial peace and protect the rights, privileges, duties, and obligations of laborers

Republic Act No. 9710

The Magna Carta of Women, a comprehensive law that promotes and protects Filipino women's human rights and seeks to eliminate discrimination, particularly against marginalized women

Republic Act No. 7877

The Anti-Sexual Harassment Act of 1995

The Civil Code

Republic Act No. 386, which establishes legal rules concerning persons, property, civil relations, marriage, family, business, and other private legal relationships

The Revised Penal Code

Contains provisions penalizing certain acts involving violence or threats in labor-related contexts, including Article 289 as cited in the notes

Special Laws

Laws covering specific areas such as SSS, GSIS, agrarian reform, and 13th-month pay

International Labor Organization (ILO)

An international organization that formulates labor standards through conventions and recommendations establishing minimum standards for basic labor rights

ILO Core Conventions

Eight fundamental conventions listed in the notes cover freedom of association (1948), collective bargaining (1949), forced labor (1930), abolition of forced labor (1957), minimum age (1973), worst forms of child labor (1999), equal remuneration (1951), and discrimination in employment (1958)

Right to ROI

An employer's right to recover investments and earn profits. Profits can support job creation and improve workers' welfare

Right to Prescribe Rules

An employer's right to establish reasonable workplace rules and regulations. These may become part of the employment contract when employees knowingly enter employment under those rules

Right to Select Employees

An employer's right to choose employees and determine when to hire them, subject to applicable laws and valid contracts

Right to Transfer or Discharge Employees

An employer's right to transfer, reduce, lay off, or dismiss personnel, or close a business, when done in good faith and in accordance with the law

Republic Act No. 4121

Identified in the notes as establishing the Department of Labor and Employment (DOLE)

Bureau of Employment Services

The agency identified in the notes as primarily responsible for developing and monitoring a comprehensive employment program

Public Employment Service Office (PESO)

A non-fee-charging, multi-employment service facility established under Republic Act No. 8759

Authorized Entities

Entities authorized to undertake recruitment or placement activities include public employment offices, private recruitment entities, private employment agencies, shipping or manning agents, POEA, authorized construction contractors, diplomatic corps representatives subject to applicable processing requirements, and other entities authorized by the DOLE Secretary

Republic Act No. 11227

A law mandating the Philippine Overseas Employment Administration (POEA) to develop, publish, disseminate, and update a handbook on the rights and responsibilities of migrant workers

Republic Act No. 8042

The Migrant Workers and Overseas Filipinos Act of 1995 establishes policies on overseas employment and promotes the protection and welfare of migrant workers, their families, and overseas Filipinos in distress

1987 Constitution

The fundamental law of the Philippines upon which other laws are based

Article III, Section 1 — Bill of Rights

No person shall be deprived of life, liberty, or property without due process of law, nor denied equal protection of the laws

Due Process

Legal safeguards ensuring fair proceedings, including the opportunity to be heard and defend oneself before a competent tribunal

Human Rights

The basic rights to which all people are entitled by virtue of being human

Labor as Property Right

Employment is considered a property right protected by constitutional due process guarantees. Wrongful interference with this right may constitute an actionable wrong

Basic Constitutional Rights of Workers (WHOSE-CD)

The rights to participate in policy and decision-making, receive a living wage, conduct collective bargaining, work under humane conditions, organize, enjoy security of tenure, and engage in peaceful concerted activities, including lawful strikes

Illegal Recruitment

Recruitment activities, including prohibited practices, undertaken by individuals or entities without the required license or authority (Labor Code, Article 38, as cited in the notes)

Elements of Illegal Recruitment

Simple illegal recruitment, illegal recruitment committed by a syndicate, and illegal recruitment committed in large scale

Illegal Recruitment

Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, procuring, referring, or promising or advertising employment, including overseas employment, when undertaken without the required license or authority

Illegal Recruitment Committed by a Syndicate

Illegal recruitment carried out by a group of three or more persons conspiring or confederating to conduct an unlawful recruitment scheme

Illegal Recruitment Committed in Large Scale

Illegal recruitment committed against three or more persons, individually or as a group

Estafa

Fraud committed through unfaithfulness, abuse of confidence, false pretenses, fraudulent acts, or other fraudulent means

Solidary Liability

Joint and several liability of the principal or employer and the recruitment or placement agency for covered claims under Republic Act No. 8042, as amended

Theory of Imputed Knowledge

A doctrine of agency law under which a principal is charged with knowledge or notice received by an agent while acting within the agency relationship

Employer

Any person acting directly or indirectly in the interest of an employer (Labor Code, Article 219[e], as cited in the notes)

Employee

Any person in the employ of an employer (Labor Code, Article 219[f], as cited in the notes)

Regular Employment

Employment in which an employee performs activities usually necessary or desirable in the employer's usual business or trade

Elements of Regular Employment

The nature of the work, length of service, work beyond probationary employment, and repeated hiring

Casual Employment

Employment for work incidental to the employer's business, often used to meet temporary staffing needs or replace absent employees

Probationary Employment

Employment in which an employee undergoes a trial period to determine fitness for regular employment based on reasonable standards communicated at the time of engagement (Labor Code, Article 296, as cited in the notes)

Period of Probationary Employment

Generally, a period that must not exceed six months from the date the employee begins working, subject to legal exceptions

Probationary Employee

An employee undergoing a trial period during which the employer determines whether the employee qualifies for regular employment

Project Employment

Employment for a specific project or undertaking whose completion has been determined at the time of engagement (Labor Code, Article 295, as cited in the notes)

Seasonal Employment

Employment for work or services that are seasonal in nature and lasts for the duration of the season (Labor Code, Article 295, as cited in the notes)

Fixed-Term Employment

An employment arrangement with a specified end date that may be full-time or part-time

Four-Fold Test

A test used to determine an employer-employee relationship by examining control, ownership of tools, chance of profit and risk of loss, and organizational integration

Control Test

Examines the employer's right to control not only the desired result but also the means and methods used to accomplish the work

Ownership of Tools

Examines who provides the tools, equipment, and resources needed to perform the work

Chance of Profit and Risk of Loss

Examines whether the worker independently bears business risks and has opportunities for profit

Organization Test

Examines whether the worker's services are integral to the employer's business or organization

Importance of Determining an Employer-Employee Relationship

Helps establish the parties' legal rights and obligations, including applicable labor standards, benefits, and protections

Job Contracting

An arrangement in which a principal outsources a job, work, or service to a contractor who performs it through deployed personnel

Labor-Only Contracting

An arrangement in which a contractor or subcontractor primarily recruits, supplies, or assigns workers to a principal rather than operating as a legitimate independent contractor

Contractor/Subcontractor

A person or entity, including a cooperative, engaged in a contracting or subcontracting arrangement

Contractor's Employee

A person employed by a contractor or subcontractor to perform a job, work, or service under an arrangement with a principal

Principal

An employer who outsources a job, service, or work to a contractor or subcontractor

Normal Hours of Work

The normal working hours of an employee must not exceed eight hours a day, subject to applicable legal provisions (Labor Code, Article 83)

Meal Periods

Meal periods are generally not compensable and must ordinarily last at least 60 minutes (Labor Code, Article 85)

Rest Periods or Coffee Breaks

Short breaks of 5 to 20 minutes are generally considered compensable working time

Night Worker

An employed person whose work requires a substantial number of night-work hours exceeding a specified limit established by the Secretary of Labor after consultation with workers' representatives and employers (Labor Code, Article 154, as amended by Republic Act No. 10151)

Night Shift Differential

Additional pay of at least 10% of an employee's regular wage for each hour worked between 10 p.m. and 6 a.m. (Labor Code, Article 86, as cited in the notes)

Night Shift Differential Formula

(10% × regular hourly wage) × number of hours worked between 10 p.m. and 6 a.m.

Overtime Pay (OT)

Pay for work exceeding eight hours within the employee's 24-hour workday, subject to applicable exceptions and legal requirements

Overtime on a Regular Day

Regular wage plus at least 25% of the regular hourly rate for each overtime hour

Overtime on a Holiday, Special Day, or Rest Day

The applicable holiday, special-day, or rest-day wage rate plus the legally required overtime premium

Overtime on a Holiday Falling on a Rest Day

The applicable combined holiday and rest-day wage rate plus the legally required overtime premium

Premium Pay

Additional compensation for work performed on rest days, special days, or regular holidays, as provided by applicable law (Labor Code, Articles 93–94)

Emergency Overtime Work

Overtime work that may be required under specific circumstances provided by law, although employees generally cannot be compelled to work overtime outside legally recognized exceptions

Undertime Not Offset by Overtime

Undertime hours cannot be offset against overtime hours on the same or another day (Labor Code, Article 88)

Rest Periods

Employers must generally provide at least 24 consecutive hours of rest for every six normal workdays, subject to applicable legal provisions (Labor Code, Article 91)

Right to Holiday Pay

The right of qualified employees to receive their regular daily wage for an unworked regular holiday (Labor Code, Article 94)

Successive Regular Holidays

When two regular holidays occur consecutively, holiday-pay entitlement for both depends on attendance or paid leave immediately before the first holiday and other applicable legal conditions

Double Holiday

For two regular holidays falling on the same date, the applicable pay depends on whether the employee works and satisfies legal eligibility requirements

Double Holiday — Unworked

An eligible employee who does not work may be entitled to 200% of the basic wage, subject to applicable conditions

Double Holiday — Worked

An employee who works on a double regular holiday may be entitled to 300% of the basic wage, subject to applicable rules

Service Charge

Charges collected by covered establishments, such as hotels and restaurants, that are subject to statutory rules on distribution to employees (Labor Code, Article 96)

Abolition of Service Charges

Upon abolition or withdrawal of covered service charges, the employees' share must be integrated into their wages, as provided by law

Integration of Service Charges

The amount integrated into wages is based on the employee's average monthly share for the 12 months immediately preceding the abolition or withdrawal, under the applicable implementing rules

13th Month Pay

Mandatory additional pay for covered rank-and-file employees who have worked for at least one month during the calendar year, payable no later than December 24 (Presidential Decree No. 851)

Wage

Monetary compensation paid to an employee for work, often calculated at a specific rate per hour worked

Salary

A fixed regular payment, commonly made monthly or biweekly and often expressed as an annual amount

Wage Order

An order issued by the Regional Tripartite Wages and Productivity Board that adjusts minimum wage rates based on regional conditions and statutory criteria

Facilities

Articles or services for the benefit of an employee or the employee's family that may be considered in wage calculations or deductions when legal requirements are satisfied

Supplements

Benefits or privileges provided to employees as additional remuneration over and above their basic or ordinary wages

Wage Rationalization Act (Republic Act No. 6727)

Republic Act No. __, which establishes the framework for setting minimum wage rates based on workers' needs and regional economic conditions

Wage Distortion (Labor Code, Article 124)

A situation in which a mandated wage increase eliminates or significantly reduces intentional wage differences among employee groups based on skills, length of service, or other logical factors