labor code of the ph

Labor Law

body of regulations and statutes that govern the relationship between employers, employees, trade unions, and the government

Labor Standards

• laws that provide minimum requirements regarding work

• Include work conditions, work hours, wages, benefits, and other employment conditions

• Implemented by management

Labor Code

a set of laws that govern employment practices and labor relations

Legally Mandated Benefits

benefits that employers are required by law to provide

Conditions of Employment

establish the minimum requirements for the workplace, including working hours, pay rates, and leave entitlements

Employee Rights

protect employees through their working conditions, compensation, and well-being

Safety and Health

rules that prevent workplace accidents and ensure a healthy environment

Labor Relations

• overall relationship between employers, employees, and their respective organizations, as well as the government

• Goal is to strike the proper balance between protection of workers rights vs. the exercise of management prerogatives by the employer

• Industrial peace allows the company to be more productive and for workers to earn their living

Section 3

• afford full protection to labor, local and overseas

  • Organized and unorganized

  • Promote full employment and equality of employment opportunities for all

• Guarantee the rights of all workers

  • Self-organization, collective bargaining and negotiations, and peaceful concerted activities

  • Includes right to strike in accordance with law

Section 3

• Security of tenure

  • Humane conditions of work, and a living wage

  • Cannot be arbitrarily fired by managers or employers

  • Participation in policy and decision-making processes affecting their rights and benefits

• Promotion the principle of shared responsibility between workers and employers

  • Foster industrial peace

• Rights of labor (workers) to its just fruits of production and right of enterprises (employers) to reasonable returns on investments

Police Power

• the basis or foundation of the labor law

• The power of the government to regulate for the benefit the general welfare

• Labor contracts are subject to this power of the state

Secretary of Labor and Employment

• Must have access to employer’s records and premises at any time

• May question any employee and investigate any fact, condition or matter which may be necessary to determine violations

Social Justice

• the goal of the labor law

• Humanization of laws and the equalization of social and economic force by the State

• One manifestation is construction in favor of labor

• All doubts in the Code shall be resolved in favor of labor

Workers Not Covered by the Labor Code

• Government Employees

• Employees of International Organizations

• Employees of Local Water Districts

• Corporate Officers

Government Employees

• Must be covered by the Civil Service Law

• GOCC: Government-Owned and Controlled Corporation

• GOCC w/ original charter → Civil Service Law

• GOCC w/o original charter → Labor Code

Employees of International Organizations

• Might be immune from suit

• Only those granted immunity under the treaty

Employees of Local Water Districts

• Considered as quasi-GOCCs

• Created by P.D. 198

• Civil Service covered

Corporate Officers

• Include the President, Secretary, and Treasurer

• Still entitled to the benefits according to the Magna Carta for Women

• Vice President must have a designation in their corporation constitution and by-laws that they are considered corporate officers

Recruitment and Placement

• act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers

• Includes referrals, contract services, promising or advertising for employment

• Any person or entity that offers employment to 2 or more persons is considered engaged

Worker

any member of the labor force, whether employed or unemployed

License

document issued DOLE authorizing to operate a private employment agency

Private Recruitment Entity

those engaged in the recruitment and placement of workers without charging any fee

Authority

issued by DOLE authorizing a person or association to engage in recruitment and placement activities as a private recruitment entity

APPRENTICE

• Highly skilled, apprenticeable occupations

• Requires 3 to 6 months of training

• Requires a written agreement and a program approved by TESDA

• May include supplementary theoretical instruction

• worker undergoing training for a highly skilled or technical occupation that requires theoretical (classroom) and practical instruction.

• Electrician, Automotive Technician, Machinist, Welder

• Paid at least 75% of the minimum wage

LEARNER

• Semi-skilled and other non-apprenticeable occupations

• Training does not exceed 3 months

• Typically relies on practical training on the job

• If dismissed illegally → treated as regular employee

• person hired and trained for a semi-skilled job that can be learned in a relatively short period.

• Cashier, Sales Clerk, Service Crew, Stock Clerks

• Paid at least 75% of the minimum wage

Illegal Recruitment

initiation of recruitment and

placement activities without a license or authority

Committed by Syndicate

• carried out by a group of 3 or more persons conspiring or confederating with one another

• How many recruiters are involved?

• ex: Three individuals operate a fake recruitment agency and collect placement fees from applicants.

Committed in Large-Scale

• committed against 3 or more persons individually or as a group

• How many victims were recruited?

• ex: One fake recruiter deceives five job applicants and collects money from them.

Penalties of Illegal Recruitment

• Imprisonment: 6 years and 1 day to 12 years

• Fine: ₱200,000 to ₱500,000

Penalties of Illegal Recruitment with Economic Sabotage

• Imprisonment: life

• Fine: ₱500,000 to ₱1,000,000

Maximum penalty

imposed if the person illegally recruited is >18 years of age or committed by a non-licensee or non-holder of authority

Secretary of Labor

• Set up new employment offices as needed

• Create a national system to share job openings and information

• Develop programs to help workers move easily between jobs, industries, or locations

• Require businesses, organizations, and institutions to provide employment data

Bureau of Employment Services

• Lead the creation and monitoring of a nationwide employment program

• Create plans and programs to promote employment opportunities

• Design job programs to help disadvantaged groups and communities

• Set up and manage a system for worker registration and work permits

• Build a labor market information system to support workforce planning

• Develop a career guidance and testing system to match people with suitable jobs

• Keep a central record of workers’ skills (not including seafarers)

Minister of Labor

has the power to impose and collect fees based on rates recommended by the Bureau of Employment Services

Non-Resident Aliens

• foreign national who is not a legal resident of the country;

• Classification and obligations, particularly for tax purposes, primarily depend on the aggregate length of their stay during a calendar year

Alien Employment Permit (AEP)

required for foreigners working in the Philippines and is issued by DOLE

Exemptions of Non-Resident Aliens

• Members of the diplomatic service

• Accredited officials and staff of international organizations

• Certain corporate officers

• Foreign nationals who are visiting to teach or conduct research under formal agreements

Exclusions of Non-Resident Aliens

• Board members with voting rights only and no management role

• Corporate officers (e.g., President, Secretary, Treasurer)

• Consultants without Philippine employers

• Intra-corporate transferees (manager/executive/specialist) employed at least one year before deployment

Four-Fold Test

• determines if there is existence of an employer-employee relationship

• Selection and engagement of the employee

• Payment of wages

• Power of dismissal

• Employer’s power to control the employee on the means and methods by which the work is accomplished

Field Personnel

• non-agricultural employee who performs their task away from the employer’s premises; actual hours of work in the field cannot be determined with reasonable certainty

• They work outside the office, and the employer cannot easily monitor or accurately determine their working hours.

Managerial Employees

• those whose primary duty consists of the management of the establishment in which they are employed

• Formulate and execute management policies

• Hire, transfer, suspend, lay off, recall, discharge, assign, or discipline employees

Work Hours

• Should not exceed 8 hours a day

• Includes the time an employee is required to be on duty or at the workplace

• Any time an employee is allowed or permitted

  to work

8 hours a day, 5 days a week (meal time excluded)

Health personnel in large cities or hospitals/clinics with 100+ beds must work

30%

If required to work for 6 days / 48 hrs, healthcare workers must get how many additional pay for the 6th day

No Work, No Pay Policy

if there is no work performed by the employee, there can be no wage

Short rest periods

during working hours are counted as hours worked

Meal Periods

should not be < 60 minutes

24 consecutive hours of rest

After 6 consecutive days of work, an employee is entitled to

30%

Employees must be paid an additional compensation of at least how many of their regular wage for work performed on Rest Days and Special Non-Working Days

Night-Shift Differential

additional pay of 10% for every hour worked between 10:00 PM to 6:00 AM

Overtime Work

work performed beyond 8 hours; 25% additional pay

Undertime Not Offset by Overtime

overtime cannot be used to compensate for undertime hours

Holiday Pay

additional pay of twice the employee’s daily wage

Service Incentive Leaves

every employee who has rendered at least 1 year of service is entitled to a yearly service incentive leave of 5 days with pay

Service Charges

distributed completely and equally among the covered workers except managerial employees