LABOR LAW REVIEWER (FINALS)
Chapter I
PRELIMINARY MATTERS
Art. 97. Definitions
1. “Person” means an individual, partnership, association, corporation, business trust, legal
representatives, or any organized group of persons.
2. “Employer” includes any person acting directly or indirectly in the interest of an employer
in relation to an employee and shall include the government and all its branches, subdivisions
and instrumentalities, all government-owned or controlled corporations and institutions, as well as
non-profit private institutions, or organizations.
3. “Employee” includes any individual employed by an employer.
4. “Agriculture” includes farming in all its branches and, among other things, includes cultivation
and tillage of soil, dairying, the production, cultivation, growing and harvesting of any agricultural
and horticultural commodities, the raising of livestock or poultry, and any practices performed by
a farmer on a farm as an incident to or in conjunction with such farming operations, but does not
include the manufacturing or processing of sugar, coconuts, abaca, tobacco, pineapples or other
farm products.
5. “Employ” includes to suffer or permit to work.
6. “Wage” paid to any employee shall mean the remuneration or earnings, however
designated, capable of being expressed in terms of money, whether fixed or ascertained on a
time, task, piece, or commission basis, or other method of calculating the same, which is payable
by an employer to an employee under a written or unwritten contract of employment for work
done or to be done, or for services rendered or to be rendered and includes the fair and
reasonable value, as determined by the Secretary of Labor and Employment, of board, lodging,
or other facilities customarily furnished by the employer to the employee. “Fair and reasonable
value” shall not include any profit to the employer, or to any person affiliated with the employer.
Art. 98. Application of Title. This Title shall not apply to farm tenancy or leasehold, domestic
service and persons working in their respective homes in needle work or in any cottage industry duly
registered in accordance with law.
Chapter II
MINIMUM WAGE RATES
Art. 99. Regional minimum wages. The minimum wage rates for agricultural and non-agricultural
employees and workers in each and every region of the country shall be those prescribed by the
Regional Tripartite Wages and Productivity Boards. (As amended by Section 3, Republic Act No.
6727, June 9, 1989).
Art. 100. Prohibition against elimination or diminution of benefits. Nothing in this Book shall be
construed to eliminate or in any way diminish supplements, or other employee benefits being
enjoyed at the time of promulgation of this Code.
Art. 101. Payment by results.
1. The Secretary of Labor and Employment shall regulate the payment of wages by results,
including pakyao, piecework, and other non-time work, in order to ensure the payment of fair
and reasonable wage rates, preferably through time and motion studies or in consultation with
representatives of workers’ and employers’ organizations.
Chapter III
PAYMENT OF WAGES
Art. 102. Forms of payment. No employer shall pay the wages of an employee by means of promissory
notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when
expressly requested by the employee.
Payment of wages by check or money order shall be allowed when such manner of payment is
customary on the date of effectivity of this Code, or is necessary because of special circumstances as
specified in appropriate regulations to be issued by the Secretary of Labor and Employment or as
stipulated in a collective bargaining agreement.
Art. 103. Time of payment. Wages shall be paid at least once every two (2) weeks or twice a month
at intervals not exceeding sixteen (16) days. If on account of force majeure or circumstances beyond
the employer’s control, payment of wages on or within the time herein provided cannot be made, the
employer shall pay the wages immediately after such force majeure or circumstances have ceased. No
employer shall make payment with less frequency than once a month.
The payment of wages of employees engaged to perform a task which cannot be completed in two (2)
weeks shall be subject to the following conditions, in the absence of a collective bargaining agreement or
arbitration award:
1. That payments are made at intervals not exceeding sixteen (16) days, in proportion to the
amount of work completed;
2. That final settlement is made upon completion of the work.
Art. 104. Place of payment. Payment of wages shall be made at or near the place of undertaking,
except as otherwise provided by such regulations as the Secretary of Labor and Employment may
prescribe under conditions to ensure greater protection of wages.
Art. 105. Direct payment of wages. Wages shall be paid directly to the workers to whom they are due,
except:
1. In cases of force majeure rendering such payment impossible or under other special
circumstances to be determined by the Secretary of Labor and Employment in appropriate
regulations, in which case, the worker may be paid through another person under written
authority given by the worker for the purpose; or
2. Where the worker has died, in which case, the employer may pay the wages of the deceased
worker to the heirs of the latter without the necessity of intestate proceedings. The claimants, if
they are all of age, shall execute an affidavit attesting to their relationship to the deceased and
the fact that they are his heirs, to the exclusion of all other persons. If any of the heirs is a minor,
the affidavit shall be executed on his behalf by his natural guardian or next-of-kin. The affidavit
shall be presented to the employer who shall make payment through the Secretary of Labor
and Employment or his representative. The representative of the Secretary of Labor and
Employment shall act as referee in dividing the amount paid among the heirs. The payment of
wages under this Article shall absolve the employer of any further liability with respect to the
amount paid.
Art. 106. Contractor or subcontractor. Whenever an employer enters into a contract with another
person for the performance of the former’s work, the employees of the contractor and of the latter’s
subcontractor, if any, shall be paid in accordance with the provisions of this Code.
Art. 107. Indirect employer. The provisions of the immediately preceding article shall likewise apply to
any person, partnership, association or corporation which, not being an employer, contracts with an
independent contractor for the performance of any work, task, job or project.
Art. 108. Posting of bond. An employer or indirect employer may require the contractor or
subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the bond
will answer for the wages due the employees should the contractor or subcontractor, as the case may be,
fail to pay the same.
Art. 109. Solidary liability. The provisions of existing laws to the contrary notwithstanding, every
employer or indirect employer shall be held responsible with his contractor or subcontractor for
any violation of any provision of this Code. For purposes of determining the extent of their civil liability
under this Chapter, they shall be considered as direct employers.
Art. 110. Worker preference in case of bankruptcy. In the event of bankruptcy or liquidation of an
employer’s business, his workers shall enjoy first preference as regards their wages and other
monetary claims, any provisions of law to the contrary notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before claims of the government and other creditors may be paid. (As
amended by Section 1, Republic Act No. 6715, March 21, 1989)
Art. 111. Attorney’s fees.
1. In cases of unlawful withholding of wages, the culpable party may be assessed attorney’s fees
equivalent to ten percent of the amount of wages recovered.
2. It shall be unlawful for any person to demand or accept, in any judicial or administrative
proceedings for the recovery of wages, attorney’s fees which exceed ten percent of the
amount of wages recovered.
Chapter IV
PROHIBITIONS REGARDING WAGES
Art. 112. Non-interference in disposal of wages. No employer shall limit or otherwise interfere with the
freedom of any employee to dispose of his wages. He shall not in any manner force, compel, or oblige
his employees to purchase merchandise, commodities or other property from any other person, or
otherwise make use of any store or services of such employer or any other person.
Art. 113. Wage deduction. No employer, in his own behalf or in behalf of any person, shall make any
deduction from the wages of his employees, except:
1. In cases where the worker is insured with his consent by the employer, and the deduction is to
recompense the employer for the amount paid by him as premium on the insurance;
2. For union dues, in cases where the right of the worker or his union to check-off has been
recognized by the employer or authorized in writing by the individual worker concerned; and
3. In cases where the employer is authorized by law or regulations issued by the Secretary of
Labor and Employment.
Art. 114. Deposits for loss or damage. No employer shall require his worker to make deposits from
which deductions shall be made for the reimbursement of loss of or damage to tools, materials, or
equipment supplied by the employer, except when the employer is engaged in such trades,
occupations or business where the practice of making deductions or requiring deposits is a recognized
one, or is necessary or desirable as determined by the Secretary of Labor and Employment in appropriate
rules and regulations.
Art. 115. Limitations. No deduction from the deposits of an employee for the actual amount of the
loss or damage shall be made unless the employee has been heard thereon, and his responsibility
has been clearly shown.
Art. 116. Withholding of wages and kickbacks prohibited. It shall be unlawful for any person, directly
or indirectly, to withhold any amount from the wages of a worker or induce him to give up any part
of his wages by force, stealth, intimidation, threat or by any other means whatsoever without the
worker’s consent.
Art. 117. Deduction to ensure employment. It shall be unlawful to make any deduction from the
wages of any employee for the benefit of the employer or his representative or intermediary as
consideration of a promise of employment or retention in employment.
Art. 118. Retaliatory measures. It shall be unlawful for an employer to refuse to pay or reduce the
wages and benefits, discharge or in any manner discriminate against any employee who has filed
any complaint or instituted any proceeding under this Title or has testified or is about to testify in such
proceedings.
Art. 119. False reporting. It shall be unlawful for any person to make any statement, report, or record
filed or kept pursuant to the provisions of this Code knowing such statement, report or record to be
false in any material respect.
Chapter V
WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION
Art. 120. Creation of National Wages and Productivity Commission. There is hereby created a
National Wages and Productivity Commission, hereinafter referred to as the Commission, which shall be
attached to the Department of Labor and Employment (DOLE) for policy and program coordination. (As
amended by Republic Act No. 6727, June 9, 1989).
Art. 121. Powers and functions of the Commission. The Commission shall have the following powers
and functions:
1. To act as the national consultative and advisory body to the President of the Philippines and
Congress on matters relating to wages, incomes and productivity;
2. To formulate policies and guidelines on wages, incomes and productivity improvement at the
enterprise, industry and national levels;
3. To prescribe rules and guidelines for the determination of appropriate minimum wage and
productivity measures at the regional, provincial, or industry levels;
4. To review regional wage levels set by the Regional Tripartite Wages and Productivity Boards to
determine if these are in accordance with prescribed guidelines and national development plans;
5. To undertake studies, researches and surveys necessary for the attainment of its functions
and objectives, and to collect and compile data and periodically disseminate information on
wages and productivity and other related information, including, but not limited to, employment,
cost-of-living, labor costs, investments and returns;
6. To review plans and programs of the Regional Tripartite Wages and Productivity Boards to
determine whether these are consistent with national development plans;
7. To exercise technical and administrative supervision over the Regional Tripartite Wages and
Productivity Boards;
8. To call, from time to time, a national tripartite conference of representatives of government,
workers and employers for the consideration of measures to promote wage rationalization and
productivity; and
9. To exercise such powers and functions as may be necessary to implement this Act.
Art. 122. Creation of Regional Tripartite Wages and Productivity Boards. There is hereby created
Regional Tripartite Wages and Productivity Boards, hereinafter referred to as Regional Boards, in all
regions, including autonomous regions as may be established by law. The Commission shall
determine the offices/headquarters of the respective Regional Boards.
The Regional Boards shall have the following powers and functions in their respective territorial
jurisdictions:
1. To develop plans, programs and projects relative to wages, incomes and productivity
improvement for their respective regions;
2. To determine and fix minimum wage rates applicable in their regions, provinces or industries
therein and to issue the corresponding wage orders, subject to guidelines issued by the
Commission;
3. To undertake studies, researches, and surveys necessary for the attainment of their functions,
objectives and programs, and to collect and compile data on wages, incomes, productivity and
other related information and periodically disseminate the same;
4. To coordinate with the other Regional Boards as may be necessary to attain the policy and
intention of this Code;
5. To receive, process and act on applications for exemption from prescribed wage rates as may
be provided by law or any Wage Order; and
6. To exercise such other powers and functions as may be necessary to carry out their mandate
under this Code.
Art. 123. Wage Order. Whenever conditions in the region so warrant, the Regional Board shall
investigate and study all pertinent facts; and based on the standards and criteria herein prescribed,
shall proceed to determine whether a Wage Order should be issued. Any such Wage Order shall take
effect after fifteen (15) days from its complete publication in at least one (1) newspaper of general
circulation in the region.
Art. 124. Standards/Criteria for minimum wage fixing. The regional minimum wages to be established
by the Regional Board shall be as nearly adequate as is economically feasible to maintain the
minimum standards of living necessary for the health, efficiency and general well-being of the
employees within the framework of the national economic and social development program. In the
determination of such regional minimum wages, the Regional Board shall, among other relevant factors,
consider the following:
1. The demand for living wages;
2. Wage adjustment vis-à-vis the consumer price index;
3. The cost of living and changes or increases therein;
4. The needs of workers and their families;
5. The need to induce industries to invest in the countryside;
6. Improvements in standards of living;
7. The prevailing wage levels;
8. Fair return of the capital invested and capacity to pay of employers;
9. Effects on employment generation and family income; and
10. The equitable distribution of income and wealth along the imperatives of economic and social
development.
Art. 125. Freedom to bargain. No wage order shall be construed to prevent workers in particular
firms or enterprises or industries from bargaining for higher wages with their respective
employers. (As amended by Republic Act No. 6727, June 9, 1989)
Art. 126. Prohibition against injunction. No preliminary or permanent injunction or temporary
restraining order may be issued by any court, tribunal or other entity against any proceedings before the
Commission or the Regional Boards. (As amended by Republic Act No. 6727, June 9, 1989)
Art. 127. Non-diminution of benefits. No wage order issued by any regional board shall provide for
wage rates lower than the statutory minimum wage rates prescribed by Congress. (As amended by
Republic Act No. 6727, June 9, 1989)
DTI and DOLE Interim Guidelines on Workplace Prevention and Control of COVID-19
On March 8, 2020, President Rodrigo R. Duterte, recognized that COVID-19 constitutes a threat to
national security and prompting a whole-of-government approach in addressing the outbreak, declared a
State of Public Health Emergency throughout the entire Philippines through Proclamation No. 922.
Republic Act No. 11058 OSHLAW
In view of the passage of Republic Act No. 11058 entitled "An Act Strengthening Compliance with
Occupational Safety and Health Standards and Providing Penalties for Violations thereof" was signed into
law by President Rodrigo Roa Duterte on 17 August 2018, while the IRR was approved and signed by
Secretary Silvestre H. Bello III on 06 December 2018.
DO No. 202-19 IRR of the Republic Act no. 11165 "Telecommuting Act"
IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 11165 OTHERWISE KNOWN
AS THE "TELECOMMUTING ACT"
Pursuant to Section 9 of Republic Act No.
11165 or the "Telecommuting Act", the
following implementing rules and regulations
are hereby issued:
Section 1. Declaration of Policy. — It is
hereby declared the policy of the State to
affirm labor as a primary social economic
force.
The State shall ensure a cohesive and
enabling policy that will foster participation
of employers and employees, through the
exercise of management prerogative or
collective bargaining, in the adoption and
implementation of telecommuting as a work
arrangement based on the voluntariness and
mutual consent of the employer and
employee, taking into account the nature of
the work to be done.
To this end, it shall protect the rights of
workers and promote their welfare, especially
in the light of technological development that
has opened up new and alternative avenues
for employees to carry out their work.
Section 2. Definition of Terms. — As used in
this Rules, the following terms shall mean:
1.Alternative workplace refers to a location
other than the regular workplace;
2.Telecommuting refers to a work
arrangement that allows an employee in
the private sector to work from an
alternative workplace with the use of
telecommunication and/or computer
technologies;
3.Telecommuting agreement refers to the
mutual consent of the employer and the
employee in the implementation of a
telecommuting work arrangement based
on the telecommuting program of the
company, Collective Bargaining
4.Agreement (CBA), if any, and other
company rules and regulations;
Telecommuting employee refers to a
person who is on a telecommuting work
arrangement; and
5.Telecommuting program refers to a set of
guidelines and rules governing the
implementation of a telecommuting work
arrangement.
Section 3. Telecommuting Program. — An
employer in the private sector may offer a
telecommuting program to its employees on
a voluntary basis or as a result of collective
bargaining, if any, and upon such terms and
conditions as they may mutually agree upon:
Provided, That such terms and conditions
shall not be less than the minimum labor
standards set by law, and shall include
compensable work hours, minimum number
of work hours, overtime, rest days,
entitlement to leave benefits, social welfare
benefits, and security of tenure. In all cases,
the employer shall provide the
telecommuting employee with relevant
written information in order to adequately
apprise the individual employee of the terms
and conditions of the telecommuting
program, including the duration of the
program, rights, duties, and responsibilities
of the employee.
To effectively implement the telecommuting
program, the employer and employees shall
adhere to and be guided by the mutually
agreed policy or telecommuting agreement
which stipulates for the following provisions,
including but not limited to:
1. Eligibility;
2. Applicable code of conduct and
3. performance evaluation and assessment;
4. Appropriate alternative workplace/s;
5. Use and cost of equipment;
Work days and/or hours;
Conditions of employment, compensation,
and benefits particularly those unique to
telecommuting employees;
1. Non-diminution of benefits;
2. Occupational safety and health;
Observance of data privacy policy;
1. Dispute settlement; and
2. Termination or change of work
3. arrangement.
The employer or employee may terminate or
change the telecommuting work
arrangement, in accordance with the
telecommuting policy or agreement, without
prejudice to employment relationship and
working conditions of the employee, at no cost to the latter.
The employer or employee may
terminate or change the
telecommuting work
arrangement, in accordance with
the telecommuting policy or
agreement, without prejudice to
employment relationship and
working conditions of the
employee, at no cost to the latter.
Section 4. Fair Treatment. The employer shall
ensure that telecommuting employees are
given the same treatment as that of
comparable employees working at the
employer's premises. All telecommuting
employees shall be covered by the same set
of applicable rules and existing CBA, if any.
They shall also:
1.Receive a rate of pay, including overtime
and night shift differential, and other
similar monetary benefits not lower than
those provided in applicable laws, and/or
CBA;
2.Have the right to rest days, regular
holidays, and special nonworking days;
3.Have the same or equivalent workload
and performance standards as those of
comparable workers at the employer's
premises; provided that the parties may
mutually agree to different performance
standards that may be more appropriate
given the location of the employee is not
at the premises of the employer;
4.Without additional cost, have the same
access to training and career
development opportunities as those of
comparable workers at the employer's
premises, and be subject to the same
appraisal policies covering these workers,
including the qualification provided on the
preceding item;
5.Without additional cost, receive
appropriate training on the technical
equipment at their disposal, and the
characteristics and conditions of
telecommuting; and
6.Have the same collective rights as the
workers at the employer's premises,
including access to safety and health
services when necessary as required by
Republic Act No. 11058 and Department
Order No. 198, Series of 2018, and shall
not be barred from communicating with
worker's representatives.
The employer shall also ensure that
measures are taken to prevent the
telecommuting employee from being isolated
from the rest of the working community in
the company by giving the telecommuting
employee the opportunity to meet with
colleagues on a regular basis and allowing
access to the regular workplace and
company information.
Section 5. Data Protection. — The employer
and the employee shall agree on minimum
standards that will protect personal
information and shall utilize available
technologies that promote security and
privacy.
The employer shall be responsible for strictly
taking the appropriate measures to ensure
the protection of data used and processed by
the telecommuting employee for professional
purposes. The employer shall inform the
telecommuting employee of all relevant laws
and company rules concerning data
protection. Measures such as, but not limited
to, disabling of hardware, Universal Serial
Bus (USB) access, and external cloud-based
storage can be taken by the employer.
The employee shall commit to the company's
data privacy policy and ensure that
confidential and proprietary information are
protected at all times and utilized only in
accordance with the requirements of the
employer.
For this purpose, the provisions of the Data
Privacy Act of 2012 shall have suppletory
effect.
Section 6. Administration. The parties to a
telecommuting work arrangement shall be
primarily responsible for its administration. In
case of differences in interpretation, the
following guidelines shall be observed:
Section 7. Notice and Monitoring. — The
employer shall notify the DOLE on the
adoption of a telecommuting work
arrangement, by accomplishing the DOLE
prescribed report form and submitting the
same in print or digital copy, to the nearest
DOLE Field or Provincial Office having
jurisdiction over the area where the principal
office is located.
If the employer has branches or operational
units outside the region of its principal office,
each branch or operational unit shall also
submit its respective report to the nearest
DOLE Field or Provincial Office having
jurisdiction over the branch or operational
unit.
All DOLE Regional Offices shall submit to the
Bureau of Working Conditions a quarterly
report using the DOLE prescribed report form
on the implementation of telecommuting
work arrangement of establishments, for
monitoring and evaluation.
Section 8. Telecommuting Pilot Program. —
The DOLE shall establish and maintain a
telecommuting pilot program in select
industries that shall vary from highly
technological sectors to sectors that are
unlikely to practice telecommuting. The
telecommuting pilot program shall last for a
period of not more than three (3) years. The
DOLE shall be responsible for baselining,
scoping and profiling research work prior to
implementation, regular quarterly monitoring,
and evaluation. At the end of the program,
the DOLE shall submit a report to Congress
on its findings and upload the same on the
DOLE website.
Section 9. Effect on Existing Agreements and
Company Practice or Policy. — The terms of
any similar voluntary agreement between an
employee and an employer, such as existing
company practice or policy allowing work
from home or similar arrangements providing
substantially similar or higher benefits,
entered before the effective date of Republic
Act No. 11165 and this Rules shall not be
impaired, provided that the employer shall
duly notify the DOLE of such agreement.
Section 10. Periodic Review. — There shall
be a mandatory review of this Rules after
three (3) years from its date of effectivity and
every three (3) years thereafter.
Section ll. Separability Clause. — If any
provision of this Rules is declared
unconstitutional, the remaining provisions
not affected shall remain in full force and
effect.
Section 12. Repealing Clause. — All orders,
rules and regulations, and other issuances or
parts thereof which are contrary to or
inconsistent with this Rules are hereby
repealed, amended, or modified accordingly.
Section 13. Effectivity. — This Rules shall
take effect fifteen (15) days after its
publication in a newspaper of general
circulation and posting on the DOLE website.
DO No. 212-20 "DOLE-AKAP for OFWWs"
DISPLACED LANDBASED AND SEABASED
FILIPINO WORKERS DUE TO THE
CORONA VIRUS DISEASE (COVID-2019)
"DOLE-AKAP for OFWs"
In the interest of the service, the Department
of Labor and Employment (the Department)
shall provide displaced OFWs on account of
COVID19 with a one-time financial
assistance (DOLE-AKAP) of USD200.00 or
PhpIO,OOO.00 or its equivalent to the local
currency of the host country.
In this regard, the Department hereby
promulgates the following Guidelines on the
availment of the DOLE-AKAP program by
OFWs to ensure its effective and streamlined
implementation.
COVERAGE
This Department Order generally covers the
following:
1.Regular I Documented OFW, as defined in
the 2016 Revised POEA Rules and
Regulations refers to those:
a.who possesses a valid passport and
appropriate visa or permit to stay and
work in the receiving country; and ii.
whose contract of employment has
been processed by the POEA or the
POLO.
2.Qualified Undocumented OFW:
a.who were originally regular or
documented workers but for some
reason or cause have thereafter lost
their regular or documented status:
b.who are not registered with the POEA
or whose contracts were not
processed by POEA or the POLO, but
have undertaken actions to regularize
their contracts or status; or iii. who are
not registered with the POEA or whose
contracts were not processed by POEA
or the POLO, but are active OVWVA
members at the time of availment.
3.Balik-Manggagawa who are unable to
return to host country in view of host
country lockdown due to COVID19.
ll. ELIGIBILITY
The following shall be eligible for the DOLEAKAP:
1.Those who have experienced job
displacement due to the receiving
country's imposition of lockdown or
community quarantine or having been
infected by the disease;
2.Must be still at overseas jobsites, or in
the Philippines as Batik-Manggagawa, or
already repatriated to the Philippines; and
3.Must not receive any financial support /
assistance from the receiving countries I
employers.
PRIORITY COUNTRIES
1 TERRITORIES FOR
ONSITE OFWs
The Department shall provide financial
assistance to qualified OFWs from the
following countries with Philippine Overseas
Labor Office (POLO) presence and/or are
heavily affected by coviD19:
Europe and Americas
1. Canada
2. Cyprus
1. Germany
2. Greece
3. Spain
4. Switzerland
5. United Kingdom of Great Britain
6. United States of America
APPLICATION PROCEDURE
A. FOR ON-SITE OFWS
1. OFWs shall submit the following to the
POLOs:
a. Accomplished Application Form for
Special Cash Assistance downloadable at the
POLOs' website/social media account;
b. Copy of Passport or Travel
Document;
c. Proof of overseas employment i.e.
valid verified overseas employment, OEC,
residence I.D.s, visa I re-entry visa, among
others or permit to stay in the receiving
country;
d. Proof of loss of employment on
account of COVID19; and
2
e. For OFWs who became
undocumented through no fault of their own,
proof that the OFW is currently involved in an
ongoing case (e.g. case reference number,
case endorsement stamped by POLO, among
others).
2. After submission of complete documents,
POLOs shall evaluate application within 5
working days and notify OFWs on the status
of his/her application within 5 working days.
3. If approved, the concerned POLO shall
release the USD200.00 through bank
transfer / money remittance.
B. FOR OFWS WHO
HAVE BEEN
REPATRIATED 1 BALIK
-MANGGAGAWA
I . OFWs who have been repatriated to the
Philippines and Balik-Manggagawa shall
submit the following to the OINWA Regional
Welfare Offices (RWOs):
1.Accomplished Application Form for
Special Cash Assistance downloadable at
the www.dole-akap.owwa.gov.ph:
2.Copy of Passport or Travel Document;
3.Proof of overseas employment i.e. valid
verified overseas employment, OEC,
residence I.D.s, visa / re-entry visa,
among others or permit to stay in the
receiving country; and
3.Proof of loss of employment on account
of COVID19.
1.After submission of complete documents,
RWOs shall evaluate the application
within 5 working days and notify OFWs on
the status of his/her application within 5
working days.
2.If approved, the concerned DOLE
Regional Office shall release the Phpl
0,000.00 through money remittance /
Peso Net.
V. FUND SOURCE
The funds for the DOLE-AKAP including
other administrative expenses of Central and
Regional operations to be incurred in the
implementation of this program shall be
sourced from DOLE COVID19 Adjustment
Measures Program (DOLE-CAMP) in the
amount of Phpl .5 Billion.
VI. EFFECTIVITY
This Department Order shall take effect
immediately.
8 April 2020.
Working Conditions of Special Group of Employees
Chapter I
Employment of Women
Article 130. Nightwork prohibition. No woman, regardless of age, shall be employed or permitted
or suffered to work, with or without compensation:
1.
In any industrial undertaking or branch thereof between ten o’clock at night and six o’clock
in the morning of the following day; or
2.
In any commercial or non-industrial undertaking or branch thereof, other than agricultural,
between midnight and six o’clock in the morning of the following day; or
3.
In any agricultural undertaking at nighttime unless she is given a period of rest of not less
than nine (9) consecutive hours.
Article 131. Exceptions. The prohibitions prescribed by the preceding Article shall not apply in any of
the following cases:
1.
In cases of actual or impending emergencies caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disasters or calamity, to prevent loss of life or property, or in
cases of force majeure or imminent danger to public safety;
2.
In case of urgent work to be performed on machineries, equipment or installation, to avoid
serious loss which the employer would otherwise suffer;
3.
Where the work is necessary to prevent serious loss of perishable goods;
4.
Where the woman employee holds a responsible position of managerial or technical nature,
or where the woman employee has been engaged to provide health and welfare services;
5.
Where the nature of the work requires the manual skill and dexterity of women workers
and the same cannot be performed with equal efficiency by male workers;
6.
Where the women employees are immediate members of the family operating the
establishment or undertaking; and
7.
Under other analogous cases exempted by the Secretary of Labor and Employment in
appropriate regulations.
Article 132. Facilities for women. The Secretary of Labor and Employment shall establish standards
that will ensure the safety and health of women employees. In appropriate cases, he shall, by
regulations, require any employer to:
1.
Provide seats proper for women and permit them to use such seats when they are free from
work and during working hours, provided they can perform their duties in this position without
detriment to efficiency;
2.
To establish separate toilet rooms and lavatories for men and women and provide at least a
dressing room for women;
3.
To establish a nursery in a workplace for the benefit of the women employees therein; and
4.
To determine appropriate minimum age and other standards for retirement or termination
in special occupations such as those of flight attendants and the like.
Article 133. Maternity leave benefits.
Every employer shall grant to any pregnant woman employee who has rendered an aggregate
service of at least six (6) months for the last twelve (12) months, maternity leave of at least two
(2) weeks prior to the expected date of delivery and another four (4) weeks after normal delivery
or abortion with full pay based on her regular or average weekly wages. The employer may require
from any woman employee applying for maternity leave the production of a medical certificate
stating that delivery will probably take place within two weeks.
Article 134. Family planning services; incentives for family planning.
Establishments which are required by law to maintain a clinic or infirmary shall provide free family
planning services to their employees which shall include, but not be limited to, the application or
use of contraceptive pills and intrauterine devices.
In coordination with other agencies of the government engaged in the promotion of family
planning, the Department of Labor and Employment shall develop and prescribe incentive bonus
schemes to encourage family planning among female workers in any establishment or enterprise.
Article 135. Discrimination prohibited. It shall be unlawful for any employer to discriminate against
any woman employee with respect to terms and conditions of employment solely on account of
her sex.
The following are acts of discrimination:
1.
Payment of a lesser compensation, including wage, salary or other form of remuneration and
fringe benefits, to a female employee as against a male employee, for work of equal value; and
2.
. Favoring a male employee over a female employee with respect to promotion, training
opportunities, study and scholarship grants solely on account of their sexes.
Article 136. Stipulation against marriage. It shall be unlawful for an employer to require as a
condition of employment or continuation of employment that a woman employee shall not get
married, or to stipulate expressly or tacitly that upon getting married, a woman employee shall be
deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice
a woman employee merely by reason of her marriage.
Article 137. Prohibited acts. It shall be unlawful for any employer:
1.
To deny any woman employee the benefits provided for in this Chapter or to discharge any
woman employed by him for the purpose of preventing her from enjoying any of the benefits
provided under this Code.
2.
To discharge such woman on account of her pregnancy, or while on leave or in confinement
due to her pregnancy;
3.
To discharge or refuse the admission of such woman upon returning to her work for fear
that she may again be pregnant.
Article 138. Classification of certain women workers. Any woman who is permitted or suffered to
work, with or without compensation, in any night club, cocktail lounge, massage clinic, bar or
similar establishments under the effective control or supervision of the employer for a substantial
period of time as determined by the Secretary of Labor and Employment, shall be considered as an
employee of such establishment for purposes of labor and social legislation.
Additional Notes:
Aside from the provisions on employment of women in the Labor Code, Republic Act 9710: Magna
Carta of Women (MCW) is a comprehensive women’s human rights law that seeks to eliminate
discrimination through the recognition, protection, fulfillment, and promotion of the rights of
Filipino women, especially those belonging in the marginalized sectors of the society. It conveys a
framework of rights for women based directly on international law.
The Magna Carta for Women also includes labor stipulations that protect women in the workplace.
The following salient features of the MCW below describes provisions focusing on women in the
workplace.
Salient features of the law include:

Increasing the number of women in third level positions in government to achieve a fifty-fifty
(50-50) gender balance within the next five years while the composition of women in all levels of
development planning and program implementation will be at least 40 percent;

Leave benefits of two (2) months with full pay based on gross monthly compensation for
women employees who undergo surgery caused by gynecological disorders, provided that they
have rendered continuous aggregate employment service of at least six (6) months for the last
twelve (12) months;

Non-discrimination in employment in the field of military, police and other similar services that
include according the same promotional privileges and opportunities as their men counterpart,
including pay increases, additional benefits, and awards, based on competency and quality of
performance.

Provision for equal access and elimination of discrimination in education, scholarships, and
training. Thus, “expulsion, non-readmission, prohibiting enrollment, and other related
discrimination of women students and faculty due to pregnancy out of marriage shall be
outlawed.

Non-discriminatory and non-derogatory portrayal of women in media and film to raise the
consciousness of the general public in recognizing the dignity of women and the role and
contribution of women in family, community, and the society through the strategic use of mass
media;

Equal status given to men and women on the titling of the land and issuance of stewardship
contracts and patents.
Employment of Minors
Article 139. Minimum employable age.
1.
No child below fifteen (15) years of age shall be employed, except when he works directly
under the sole responsibility of his parents or guardian, and his employment does not in any
way interfere with his schooling.
2.
Any person between fifteen (15) and eighteen (18) years of age may be employed for such
number of hours and such periods of the day as determined by the Secretary of Labor and
Employment in appropriate regulations.
3.
The foregoing provisions shall in no case allow the employment of a person below eighteen
(18) years of age in an undertaking which is hazardous or deleterious in nature as determined
by the Secretary of Labor and Employment.
Article 140. Prohibition against child discrimination. No employer shall discriminate against any
person in respect to terms and conditions of employment on account of his age.
Work considered hazardous are those who are exposed to:
a. chemical hazards involving exposure to chemical or ordinary dust, mist, fumes, vapor, and gas;
b. physical hazards involving exposure to noise, temperature or humidity, pressure, inadequate
illumination, slips, trips, falls, insufficient
exit for escape, ultraviolet, sexual acts, etc.;
and
c. biological hazards involving exposure to viruses, bacteria, and the likes.
Employment of Househelpers
Article 141. Coverage. This Chapter shall apply to all persons rendering services in households for
compensation.
“Domestic or household service” shall mean service in the employer’s home which is usually
necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the
personal comfort and convenience of the members of the employer’s household, including services
of family drivers.
Article 142. Contract of domestic service. The original contract of domestic service shall not last for
more than two (2) years but it may be renewed for such periods as may be agreed upon by the
parties.
Article 143. Minimum wage.
1.
Househelpers shall be paid the following minimum wage rates:
1.
Eight hundred pesos (P800.00) a month for househelpers in Manila, Quezon, Pasay, and
Caloocan cities and municipalities of Makati, San Juan, Mandaluyong, Muntinlupa, Navotas,
Malabon, Parañaque, Las Piñas, Pasig, Marikina, Valenzuela, Taguig and Pateros in Metro
Manila and in highly urbanized cities;
2.
Six hundred fifty pesos (P650.00) a month for those in other chartered cities and first-class
municipalities; and
3.
Five hundred fifty pesos (P550.00) a month for those in other municipalities.
Provided, That the employers shall review the employment contracts of their househelpers every
three (3) years with the end in view of improving the terms and conditions thereof.
Provided, further, That those househelpers who are receiving at least One thousand pesos
(P1,000.00) shall be covered by the Social Security System (SSS) and be entitled to all the benefits
provided thereunder. (As amended by Republic Act No. 7655, August 19, 1993) (see Batas
Kasambahay for revision on wages)
Article 144. Minimum cash wage. The minimum wage rates prescribed under this Chapter shall be
the basic cash wages which shall be paid to the househelpers in addition to lodging, food and
medical attendance.
Article 145. Assignment to non-household work. No househelper shall be assigned to work in a
commercial, industrial or agricultural enterprise at a wage or salary rate lower than that provided
for agricultural or non-agricultural workers as prescribed herein.
Article 146. Opportunity for education. If the househelper is under the age of eighteen (18)
years, the employer shall give him or her an opportunity for at least elementary education. The
cost of education shall be part of the househelper’s compensation, unless there is a stipulation to
the contrary.
Article 147. Treatment of househelpers. The employer shall treat the househelper in a just and
humane manner. In no case shall physical violence be used upon the househelper.
Article 148. Board, lodging, and medical attendance. The employer shall furnish the househelper,
free of charge, suitable and sanitary living quarters as well as adequate food and medical
attendance.
Article 149. Indemnity for unjust termination of services. If the period of household service is fixed,
neither the employer nor the househelper may terminate the contract before the expiration of the
term, except for a just cause. If the househelper is unjustly dismissed, he or she shall be paid the
compensation already earned plus that for fifteen (15) days by way of indemnity.
If the househelper leaves without justifiable reason, he or she shall forfeit any unpaid salary due
him or her not exceeding fifteen (15) days.
Article 150. Service of termination notice. If the duration of the household service is not determined
either in stipulation or by the nature of the service, the employer or the househelper may give
notice to put an end to the relationship five (5) days before the intended termination of the
service.
Article 151. Employment certification. Upon the severance of the household service relation, the
employer shall give the househelper a written statement of the nature and duration of the service
and his or her efficiency and conduct as househelper.
Article 152. Employment record. The employer may keep such records as he may deem necessary to
reflect the actual terms and conditions of employment of his househelper, which the latter shall
authenticate by signature or thumbmark upon request of the employer.
Batas Kasambahay
The Batas Kasambahay is an act instituting policy for the protection and welfare of domestic
workers of househelpers.
To supplement or amend Article 143 of the Labor Code, the Batas Kasambahay provides:
SEC 24. Minimum Wage. – The minimum wage of domestic workers shall not be less than the
following:
(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the National
Capital Region (NCR);
(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and first-class
municipalities; and
(c) One thousand five hundred pesos (P1,500.00) a month for those employed in other
municipalities.
Working Conditions of Special Group of Employees
Republic Act 8972: Solo Parents’ Welfare Act of 2000
AN ACT PROVIDING FOR BENEFITS AND PRIVILEGES TO SOLO PARENTS AND THEIR CHILDREN,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES.
Section 1. Title. – This Act shall be known as the “Solo Parents’ Welfare Act of 2000.“
Section 2. Declaration of Policy. – It is the policy of the State to promote the family as the
foundation of the nation, strengthen its solidarity and ensure its total development. Towards this
end, it shall develop a comprehensive program of services for solo parents and their children to be
carried out by the Department of Social Welfare and Development (DSWD), the Department of
Health (DOH), the Department of Education, Culture and Sports (DECS), the Department of the
Interior and Local Government (DILG), the Commission on Higher Education (CHED), the Technical
Education and Skills Development Authority (TESDA), the National Housing Authority (NHA), the
Department of Labor and Employment (DOLE) and other related government and nongovernment
agencies.
Section 3. Definition of Terms. – Whenever used in this Act, the following terms shall mean as
follows:
(a) “Solo parent” – any individual who falls under any of the following categories:
(1) A woman who gives birth as a result of rape and other crimes against chastity even without
a final conviction of the offender: Provided, That the mother keeps and raises the child;
(2) Parent left solo or alone with the responsibility of parenthood due to death of spouse;
(3) Parent left solo or alone with the responsibility of parenthood while the spouse is detained or is
serving sentence for a criminal conviction for at least one (1) year;
(4) Parent left solo or alone with the responsibility of parenthood due to physical and/or mental
incapacity of spouse as certified by a public medical practitioner;
(5) Parent left solo or alone with the responsibility of parenthood due to legal separation or de
facto separation from spouse for at least one (1) year, as long as he/she is entrusted with the
custody of the children;
(6) Parent left solo or alone with the responsibility of parenthood due to declaration of ‘ity or
annulment of marriage as decreed by a court or by a church as long as he/she is entrusted with the
custody of the children;
(7) Parent left solo or alone with the responsibility of parenthood due to abandonment of spouse
for at least one (1) year;
(8) Unmarried mother/father who has preferred to keep and rear her/his child/children instead of
having others care for them or give them up to a welfare institution;
(9) Any other person who solely provides parental care and support to a child or children;
(10) Any family member who assumes the responsibility of head of family as a result of the death,
abandonment, disappearance or prolonged absence of the parents or solo parent.
A change in the status or circumstance of the parent claiming benefits under this Act, such that
he/she is no longer left alone with the responsibility of parenthood, shall terminate his/her eligibility
for these benefits.
(b) “Children” – refer to those living with and dependent upon the solo parent for support who are
unmarried, unemployed and not more than eighteen (18) years of age, or even over eighteen (18)
years but are incapable of self-support because of mental and/or physical defect/disability.
(c) “Parental responsibility” – with respect to their minor children shall refer to the rights and
duties of the parents as defined in Article 220 of Executive Order No. 209, as amended, otherwise
known as the “Family Code of the Philippines.”
(d) “Parental leave” – shall mean leave benefits granted to a solo parent to enable him/her to
perform parental duties and responsibilities where physical presence is required.
(e) “Flexible work schedule” – is the right granted to a solo parent employee to vary his/her arrival
and departure time without affecting the core work hours as defined by the employer.
Section 4. Criteria for Support. – Any solo parent whose income in the place of domicile falls below
the poverty threshold as set by the National Economic and Development Authority (NEDA) and
subject to the assessment of the DSWD worker in the area shall be eligible for assistance: Provided,
however, That any solo parent whose income is above the poverty threshold shall enjoy the
benefits mentioned in Sections 6, 7 and 8 of this Act.
Section 5. Comprehensive Package of Social Development and Welfare Services. – A
comprehensive package of social development and welfare services for solo parents and their
families will be developed by the DSWD, DOH, DECS, CHED, TESDA, DOLE, NHA and DILG, in
coordination with local government units and a nongovernmental organization with proven track
record in providing services for solo parents.
The DSWD shall coordinate with concerned agencies the implementation of the comprehensive
package of social development and welfare services for solo parents and their families. The package
will initially include:
(a) Livelihood development services which include trainings on livelihood skills, basic business
management, value orientation and the provision of seed capital or job placement.
(b) Counseling services which include individual, peer group or family counseling. This will focus on
the resolution of personal relationship and role conflicts.
(c) Parent effectiveness services which include the provision and expansion of knowledge and skills
of the solo parent on early childhood development, behavior management, health care, rights and
duties of parents and children.
(d) Critical incidence stress debriefing which includes preventive stress management strategy
designed to assist solo parents in coping with crisis situations and cases of abuse.
(e) Special projects for individuals in need of protection which include temporary shelter,
counseling, legal assistance, medical care, self-concept or ego-building, crisis management and
spiritual enrichment.
Section 6. Flexible Work Schedule. – The employer shall provide for a flexible working schedule for
solo parents: Provided, That the same shall not affect individual and company productivity:
Provided, further, That any employer may request exemption from the above requirements from
the DOLE on certain meritorious grounds.
Section 7. Work Discrimination. – No employer shall discriminate against any solo parent
employee with respect to terms and conditions of employment on account of his/her status.
Section 8. Parental Leave. – In addition to leave privileges under existing laws, parental leave of not
more than seven (7) working days every year shall be granted to any solo parent employee who
has rendered service of at least one (1) year.
Section 9. Educational Benefits. – The DECS, CHED and TESDA shall provide the following benefits
and privileges:
(1) Scholarship programs for qualified solo parents and their children in institutions of basic,
tertiary and technical/skills education; and
(2) Nonformal education programs appropriate for solo parents and their children.
The DECS, CHED and TESDA shall promulgate rules and regulations for the proper implementation of
this program.
Section 10. Housing Benefits. – Solo parents shall be given allocation in housing projects and shall
be provided with liberal terms of payment on said government low-cost housing projects in
accordance with housing law provisions prioritizing applicants below the poverty line as declared by
the NEDA.
Section 11. Medical Assistance. – The DOH shall develop a comprehensive health care program for
solo parents and their children. The program shall be implemented by the DOH through their
retained hospitals and medical centers and the local government units (LGUs) through their
provincial/district/city/municipal hospitals and rural health units (RHUs).
Section 12. Additional Powers and Functions of the DSWD. — The DSWD shall perform the
following additional powers and functions relative to the welfare of solo parents and their families:
(a) Conduct research necessary to: (1) develop a new body of knowledge on solo parents; (2) define
executive and legislative measures needed to promote and protect the interest of solo parents and
their children; and (3) assess the effectiveness of programs designed for disadvantaged solo parents
and their children;
(b) Coordinate the activities of various governmental and nongovernmental organizations engaged
in promoting and protecting the interests of solo parents and their children; and
(c) Monitor the implementation of the provisions of this Act and suggest mechanisms by which such
provisions are effectively implemented.
Section 13. Implementing Rules and Regulations. – An interagency committee headed by the
DSWD, in coordination with the DOH, DECS, CHED, TESDA, DOLE, NHA, and DILG is hereby
established which shall formulate, within ninety (90) days upon the effectivity of this Act, the
implementing rules and regulations in consultation with the local government units, nongovernment
organizations and people’s organizations.
Section 14. Appropriations. – The amount necessary to carry out the provisions of this Act shall be
included in the budget of concerned government agencies in the General Appropriations Act of the
year following its enactment into law and thereafter.
Section 15. Repealing Clause. – All laws, decrees, executive orders, administrative orders or parts
thereof inconsistent with the provisions of this Act are hereby repealed, amended or modified
accordingly.
Section 16. Separability Clause. – If any provision of this Act is held invalid or unconstitutional, other
provisions not affected thereby shall continue to be in full force and effect.
Section 17. Effectivity Clause. – This Act shall take effect fifteen (15) days following its complete
publication in the Official Gazette or in at least two (2) newspaper of general circulation.
Maternity and Paternity Leave
REPUBLIC ACT No. 11210
An Act Increasing the Maternity Leave Period to One Hundred Five (105) Days for Female Workers
With an Option to Extend for an Additional Thirty (30) Days Without Pay, and Granting an
Additional Fifteen (15) Days for Solo Mothers, and for Other Purposes
Features of the 105-Day Expanded Maternity Leave Law include the following:

All working mothers — including those employed in the informal sector — can take up to 105
days of paid maternity leave (up from 60 days for normal childbirth or 78 days for a cesarean
delivery) for each pregnancy, provided they’ve made at least three monthly contributions to
the Social Security System (SSS) in the 12 months preceding the semester of the birth and have
notified their employer. Previously, women were entitled to leave for up to four pregnancies.
The maternity arrangements for workers who aren’t covered by the SSS will be governed by the
Philippine Health Insurance Corporation.

Paid maternity leave is available to all working mothers, regardless of their civil status and the
legitimacy of their child. Women who suffer a miscarriage or have an emergency termination
can take up to 60 days of maternity leave with full pay.

Private-sector employers must make full payment to employees within 30 days after receiving
a leave application. The SSS will reimburse the employers. With some exceptions, employers
will be responsible for the payment of the salary differential between the cash benefit received
from the SSS and the employee’s actual weekly or regular wage for the duration of the leave.
The Department of Labor and Employment (DOLE) will issue guidelines. Companies whose
maternity benefits meet or exceed the statutory minimum will be exempt from the law, subject
to annual ratification by the DOLE.

Leave must be taken as a single, uninterrupted period at the time of the child’s birth. The
leave can’t be deferred, but it can be taken as a combination of pre- and post-natal leave —
post-natal leave can’t be less than 60 days.

Employees can extend their leave by an additional 30 days without pay, subject to notifying
their employer 45 days before the end of the leave. Mothers who are single parents can
request an additional 15 days’ leave with full pay.

Women can transfer up to seven days of their maternity leave to the child’s father, subject to
fulfilling notification requirements for both employers.

Women whose employment is terminated will be entitled to paid maternity leave provided the
birth, miscarriage or emergency termination occurs within 15 days of the end of their
employment. Employers that dismiss pregnant employees without just cause will be liable for
payment of the employee’s salary and any maternity-related benefits for the full period of
maternity leave that the woman would have received or for 60 days in the case of a miscarriage
or emergency pregnancy termination.

Women on maternity leave will be protected from discrimination, including demotion and
layoff. In certain circumstances, employers may transfer women returning from maternity leave
to a comparable position or reassign them to another part of the business.

Penalties for violations of the law could be as high as PHP 200,000 (and not less than PHP
20,000) and include imprisonment from six to 12 years.
Learning Activity: From the SSS - Mga Dapat Malaman sa Bagong SSS Maternity Benefit under
Republic Act No. 11210.
Republic Act 8187: Paternity Leave Act of 1996
AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7) DAYS WITH FULL PAY TO ALL MARRIED
EMPLOYEES IN THE PRIVATE AND PUBLIC SECTORS FOR THE FIRST FOUR (4) DELIVERIES OF THE
LEGITIMATE SPOUSE WITH WHOM HE IS COHABITING AND FOR OTHER PURPOSES
SECTION 1. Short Title. – This Act shall be known as the “Paternity Leave Act of 1996“.
SECTION 2. Notwithstanding any law, rules and regulations to the contrary, every married male
employee in the private and public sectors shall be entitled to a paternity leave of seven (7) days
with full pay for the first four (4) deliveries of the legitimate spouse with whom he is cohabiting.
The male employee applying for paternity leave shall notify his employer of the pregnancy of his
legitimate spouse and the expected date of such delivery.
For purposes, of this Act, delivery shall include childbirth or any miscarriage.
SECTION 3. Definition of Term. – For purposes of this Act, Paternity Leave refers to the benefits
granted to a married male employee allowing him not to report for work for seven (7)
days but continues to earn the compensation therefor, on the condition that his spouse has
delivered a child or suffered a miscarriage for purposes of enabling him to effectively lend
support to his wife in her period of recovery and/or in the nursing of the newly-born child.
SECTION 4. The Secretary of Labor and Employment, the Chairman of the Civil Service Commission
and the Secretary of Health shall, within thirty (30) days from the effectivity of
this Act, issue such rules and regulations necessary for the proper implementation of the
provisions hereof.
SECTION 5. Any person, corporation, trust, firm, partnership, association or entity found violating
this Act or the rules and regulations promulgated thereunder shall be punished by a fine not
exceeding Twenty-five thousand pesos (P25,000) or imprisonment of not less than thirty (30)days
nor more than six (6) months.
If the violation is committed by a corporation, trust or firm, partnership, association or any other
entity, the penalty of imprisonment shall be imposed on the entity’s responsible officers, including,
but not limited to, the president, vice-president, chief executive officer, general manager, managing
director or partner directly responsible therefor.
SECTION 6. Non-diminution Clause. – Nothing in this Act shall be construed to reduce any existing
benefits of any form granted under existing laws, decrees, executive orders, or any
contract agreement or policy between employer and employee.
SECTION 7. Repealing Clause. – All laws, ordinances, rules, regulations, issuances, or parts thereof
which are inconsistent with this Act are hereby repealed or modified accordingly.
SECTION 8. Effectivity. – This Act shall take effect (15) days from its publication in the Official
Gazette or in at least two (2) newspapers of national circulation.
Social Security System, Government Service Insurance System, Home Development Mutual Fund
The Social Security System (SSS; Filipino: Paseguruhan ng Kapanatagang Panlipunan) is a staterun, social insurance program in the Philippines to workers in the private, professional and informal
sectors. SSS is established by virtue of Republic Act No. 1161, better known as the Social Security Act
of 1954. This law was later amended by Republic Act No. 8282 in 1997.
MISSION AND VISION
Statement of Mission
To manage a financially stable social security system which shall promote social justice through
savings, and provide meaningful protection and exemplary service to members and their families.
Statement of Vision
A viable social security institution providing universal and equitable social protection through
world-class service.
Statement of Corporate Values
The SSS aims to institutionalize a corporate culture that instills the core values of Trust,
Empowerment and Teamwork.
DECLARATION OF POLICY
"It is the policy of the State to establish, develop, promote and perfect a sound and viable taxexempt social security system suitable to the needs of the people throughout the Philippines which
shall promote social justice through savings, and ensure meaningful social security protection to
members and their beneficiaries against the hazards of disability, sickness, maternity, old age, death,
and other contingencies resulting in loss of income or financial burden. Towards this end, the State
shall endeavor to extend social security protection to Filipino workers, local or overseas, and their
beneficiaries. In the pursuit of this policy, a social security program shall be developed emphasizing
the value of 'work, save, invest and prosper'. The maximum profitability of investible funds and
resources of the program shall be ensured through a culture of excellence in management grounded
upon sound and efficient policies employing internationally recognized best practices." (Section 2, RA
11199)
COVERAGE
As an actively paying member of the SSS, either as a worker in the private sector or as an individual
member (self-employed, voluntary, OFW, non-working spouse), you and your beneficiaries are
assured of prompt, convenient, reliable, and meaningful social protection today and in the future.
The SSS commits to provide all members with adequate social security benefits on time, especially in
times of contingencies such as sickness, maternity, disability, old age, death, and even
unemployment.
There are two (2) types of coverage under the regular SSS Program: Compulsory and Voluntary.
Compulsory Coverage:
Employer (Business or Household Employer)
Employee
Self-Employed
Househelper or Kasambahay
Overseas Filipino Workers (OFW) (land-based and sea-based, except for Filipino permanent
migrants, including Filipino immigrants, permanent residents, and naturalized citizens of their host
countries, who may be covered on a voluntary basis)
Voluntary Coverage:
Non-Working Spouse (NWS)
Separated Members
SSS Sickness Benefit
An SSS member is qualified to avail the sickness benefit if:
1. He is unable to work due to sickness or injury and confined either in a hospital or at home for
at least four (4) days;
2. He has paid at least three (3) months of contributions within the 12-month period immediately
before the semester of sickness or injury;
3. He has used up all current company sick leaves with pay; and
4. He has notified the employer or the SSS, if unemployed, voluntary or self-employed member
regarding his sickness or injury.
SSS Maternity Benefit.
The maternity benefit is offered only to female SSS members. A member is qualified to avail of this
benefit if:
1. She has paid at least three monthly contributions within the 12-month period immediately
preceding the semester of her childbirth or miscarriage.
2. She has given the required notification of her pregnancy to SSS through her employer if
employed; or submitted the maternity notification directly to the SSS if separated from
employment, a voluntary or self-employed member.
3. The maternity benefit shall be paid only for the first four (4) deliveries or miscarriages starting
May 24, 1997 when the Social Security Act of 1997 (RA 8282) took effect.
SSS Disability Benefit
A member who suffers partial or total disability with at least one monthly contribution paid to the
SSS prior to the semester of contingency is qualified.
Partial Disability
A complete and permanent loss or use of any of the following body parts, but which does not
totally prevent a member from engaging in any gainful occupation.
one thumb
one index
finger
one middle
finger
one ring finger
one little
finger
hearing of one
ear
hearing of
both ears
sight of one
eye
one big toe
one hand
one arm
one foot
one leg
one ear
both ears
Permanent Total Disability
1. complete loss of sight of both eyes;
2. loss of two limbs at or above the ankle or wrists;
3. permanent complete paralysis of two limbs;
4. brain injury resulting to incurable imbecility or insanity; and
5. such cases as determined and approved by the SSS.
SSS Unemployment Benefit
Also called Unemployment Insurance or Involuntary Separation Benefit
It is a cash benefit granted to covered employees, including kasambahays and OFWs (sea-based
and land-based) who are involuntarily separated from employment (e.g. due to retrenchment or
downsizing, closure or cessation of operation, installation of labor-saving devices, redundancy, etc.)
Qualifying Conditions
Member should not be over 60 years old at the time of involuntary separation; not over 50 if an
underground or surface mineworker; and not over 55, if a racehorse jockey.
Member has paid at least 36 monthly contributions, 12 months of which should be in the 18-month
period immediately preceding the month of involuntary separation.
Note:
An employee shall not be qualified to receive the benefit if he/she has been involuntarily separated
from employment due to the following:

Serious misconduct;

Willful disobedience to lawful orders;

Gross and habitual neglect of duties;

Fraud or willful breach of trust/loss of confidence;

Commission of a crime or offense; or

Analogous cases like abandonment, gross inefficiency, disloyalty/ conflict of interest/
dishonesty.
Amount of Benefit
If qualified, the employee is granted an amount that is equivalent to twice the half of the member’s
average monthly salary credit (AMSC).
The benefit is granted thru a one-time payment, and the claim must be filed within a year from
the date of involuntary separation.
The GSIS
MANDATE
Created by Commonwealth Act No. 186 and Republic Act No. 8291 (GSIS Act of 1997), GSIS is a social
insurance institution that provides a defined benefit scheme under the law. It insures its members
against the occurrence of certain contingencies in exchange for their monthly premium
contributions.
GSIS members are entitled to an array of social security benefits, such as life insurance benefits,
separation or retirement benefits, and disability benefits.
GSIS is also the administrator of the General Insurance Fund by virtue of RA 656 (Property Insurance
Law). It provides insurance coverage to government assets and properties that have government
insurable interests.
COVERAGE
The GSIS covers all government workers except:
– Members of the Judiciary and Constitutional Commissions who are covered by separate
retirement laws;
– Contractual employees who have no employee-employer relationship with their agencies;
– Uniformed members of the Armed Forces of the Philippines and the Philippine National Police,
including the Bureau of Jail Management and Penology and the Bureau of Fire Protection.
Does not include: Barangay and Sanggunian officials who are not receiving fixed monthly
compensation (Source RIRR)
Does not include: Employees who do not have monthly regular hours of work and are not receiving
fixed monthly compensation (RIRR)
BENEFITS AND SERVICES
The principal benefit package of the GSIS consists of compulsory and optional life insurance,
retirement, separation, and employee’s compensation benefits.
SERVICE PRIVILEGES
GSIS offers the following loan products to assist you with your financial needs: Enhanced
Consolidated Salary Loan (ConsoLoan) Plus, Policy Loan, Enhanced Emergency Loan, Pension Loan,
and Pensioners Emergency Loan.
ORGANIZATION
The governing and policy-making body of the GSIS is the Board of Trustees, the members of which
are appointed by the President of the Philippines.
The GSIS workforce consists of 3,104 employees, 52% of whom are in the Head Office while the
remaining 48% are in the Branches. To date, the GSIS has 42 Branch Offices, 14 Extension Offices
nationwide and 58 service desks.
Home Development Mutual Fund (PAG IBIG FUND)
The Home Development Mutual Fund (abbreviated as HDMF), more popularly known as the PagIBIG Fund, is a Philippine government-owned and controlled corporation under the Department of
Human Settlements and Urban Development responsible for the administration of the national
savings program and affordable shelter financing for Filipinos employed by local and foreign-based
employers as well as voluntary and self-employed members. It offers its members short-term loans
and access to housing programs.
On December 14, 1980, Presidential Decree No. 1752 was passed that amended the act creating the
Home Development Mutual Fund. Specifically, the decree contained the following distinct features:

Establishing HDMF as a fund owned by members, with the government serving as its trustee and
guarantor

Setting the mandatory coverage at 1-3% of contribution of no more than P3,000 per month
salary base.
Membership
In 2009, the Republic Act of 9679, otherwise known as Home Development Mutual Fund Law of
2009, was passed into law. It expanded coverage requiring mandatory membership of all employees
regardless of status, which would include self-employed persons, regardless of trade, business or
occupation with an income salary of at least P1,000. It also included overseas Filipino workers and
voluntary membership available to all Filipino immigrants, Filipinos naturalized in other countries,
and permanent Filipino residents abroad.
Membership to the fund is exclusive to all Filipino citizens who are or ought to be covered by
the Social Security System (SSS), provided that actual membership in the SSS shall not be a
condition precedent to the mandatory coverage in the fund. It shall include, but are not limited to:

A private employee, whether permanent, temporary, or provisional who is not over sixty (60)
years old;

A household helper earning at least ₱1,000 a month. A household helper is any person who
renders domestic services exclusively to a household such as a driver, gardener, cook,
governess, and other similar occupations;

A Filipino seafarer upon the signing of the standard contract of employment between the
seafarer and the manning agency, which together with the foreign ship owner, acts as the
employer;

A self-employed person regardless of trade, business or occupation, with an income of at least
₱1,000.00 a month and not over sixty (60) years old;

An expatriate who is not more than sixty (60) years old and is compulsorily covered by the
Social Security System (SSS), regardless of citizenship, nature and duration of employment, and
the manner by which the compensation is paid. In the absence of an explicit exemption from SSS
coverage, the said expatriate, upon assumption of office, shall be covered by the Fund.

An expatriate shall refer to a citizen of another country who is living and working in the
Philippines.

All employees who are subject to mandatory coverage by the Government Service Insurance
System (GSIS), regardless of their status of appointment, including members of the judiciary and
constitutional commissions;

Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the
Bureau of Jail Management and Penology, and the Philippine National Police;

Filipinos employed by foreign-based employers, whether they are deployed locally or abroad or
a combination thereof.
Voluntary Membership
Membership is also extended to individuals of at least 18 years old but not more than 65 years old
under their voluntary membership program. However, the said individual shall be required to
comply with the set of rules and regulations for Pag-IBIG members including the amount of
contribution and schedule of payment. In addition, they shall be subject to the eligibility
requirements in the event of availment of loans and other programs/benefits offered by the Fund.
The following shall be allowed to apply for voluntary membership:

Non-working spouses who devote full-time to managing the household and family affairs, unless
they also engage in another vocation or employment which is subject to mandatory coverage,
provided the employed spouse is a registered Pag-IBIG member and consents to the Fund
membership of the non-working spouse;

Filipino employees of foreign government or international organization, or their wholly owned
instrumentality based in the Philippines, in the absence of an administrative agreement with the
Fund;

Employees of an employer who is granted a waiver or suspension of coverage by the Fund under
RA 9679;

Leaders and members of religious groups;

A member separated from employment, local or abroad, or ceased to be self-employed but
would like to continue paying his/her personal contribution. Such member may be a pensioner,
investor, or any other individual with passive income or allowances;

Public officials or employees who are not covered by the GSIS such as Barangay Officials,
including Barangay Chairmen, Barangay Council Members, Chairmen of the Barangay
Sangguniang Kabataan, and Barangay Secretaries and Treasurers;

Such other earning individuals/groups as may be determined by the Board by rules and
regulations.
Benefits of the fund
Housing Loan
The most popular program benefit of the Pag-IBIG Fund offers assistance to its members by
providing affordable financing for their housing needs. HDMF accomplishes this by working in
partnership with the local Real Estate Developers and arranging affordable loans to real estate
buyers (Pag-IBIG members).
The loan had a lower interest rate compared to the prevailing rate in the market and payable in
longer terms. Pag-IBIG Fund offers a home loan at a low interest rate of 4.5% (for ₱450,000 loan)
with a loan term of up to 30 years. A qualified member can get a maximum loan amount of up to ₱ 6
Million.
Short Term Loan
Similar to the Government Service Insurance System (GSIS) and Social Security System, the HDMF
also offers financial assistance to qualified member by granting short term loan. There are two types
of loans members are qualified to avail:
Multi-Purpose Loan (MPL)
This program aims to provide financial assistance to members for house repair, minor home
improvement, home enhancement, tuition or educational expenses, health and wellness, livelihood;
or other purposes. To avail the program, a member must made at least twenty-four (24) month
membership savings, or the total savings is equivalent to twenty-four (24) membership savings and
must have at least one (1) contribution within the last six (6) months as of month prior to date of
loan application.
For members who have withdrawn their contributions due to membership maturity, the reckoning
date of the updated 24 contributions shall be the first contribution following the month the member
qualified to withdraw his MS due to membership maturity. If a member has an existing Pag-IBIG
Housing Loan, the account must not be in default as of date of application. Should a member have
an existing multi-purpose and/or calamity loan, the account/s must not be in default as of date of
application.
Calamity Loan
For members affected by unforeseen calamity like flood, fire, tropical cyclones/ typhoons, volcanic
eruption and other similar cases. Members can borrow up to 80% of their Total Accumulated Value
(TAV) subject to the terms and conditions of the program. Calamity Loan Interest rate is 5.95% per
annum. The loan is amortized over 24 months, with a grace period of 3 months. Paying period
begins on the 4th month following their check date.
Provident Savings
Membership contributions to the Pag-IBIG fund is a member's individual savings, which a member
can withdraw at the maturity date. Pag-IBIG Fund makes clear that members' contributions, plus
that their employer will earn dividend. All that money, called Total Accumulated Value
(contributions plus dividend) can be withdrawn when it reaches maturity or 240 months of
contributions for at least 45 years old. Unlike the money in a bank regular savings where the interest
rate is given, member's earnings in the fund is not readily foreseen ahead of time. It essentially
participating in an investment and membership earnings will depend on the overall performance of
that investment.
Termination of Employment in the Philippines
Unlike the United States of America, which has an “at-will employment” doctrine, employers in the
Philippines can only terminate their relationship with an employee if a “just” or “authorized” cause,
as defined under the law, has been established, after undergoing due process. Thus, terminating an
employee in the country is taken VERY seriously and can be a complex process, especially since,
when in doubt, the Labor Code of the Philippines is construed in favor of employees.
Types of Employment Termination
There are two types of employment termination in the Philippines: termination by
employer and voluntary resignation or termination by employee. Employers can dismiss an
employee based on just and authorized causes. Just causes are based on acts attributable to an
employee’s own wrongful actions or negligence while authorized causes refer to lawful grounds for
termination which do not arise from fault or negligence of the employee.
Voluntary resignation is defined as a voluntary act committed by employees who knowingly
dissociate themselves from their employment for personal reasons. It does not cover instances
where employees are forced to resign with the use of threats, intimidation, coercion, manipulation,
or where dismissal is imposed as a penalty for an offense. Forced or coerced resignation is illegal
and considered “constructive” dismissal – a dismissal in disguise.
Termination by Employer
According to Article 282 of the Labor Code, an employer can terminate an employee for just causes,
which could be any of the following:

serious misconduct or willful disobedience by the employee of the lawful orders of his
employer or representative in connection with his work;

gross and habitual neglect by the employee of his duties;

fraud or willful breach by the employee of the trust reposed in him by his employer or duly
authorized representatives;

commission of a crime or offense by the employee against the person of his employer or any
immediate member of his family or his duly authorized representatives; and

other similar causes.
Employers can also terminate an employee based on authorized causes like business and health
reasons. Art. 283 of the Labor Code states that an employee can be terminated due to business
reasons such as:

installation of labor-saving devices;

redundancy;

retrenchment (reduction of costs) to prevent losses; or

the closing or cessation of operation.
For termination of employment based on health reasons, employers are allowed to terminate
employees found suffering from any disease and whose continued employment is prohibited by law
or is prejudicial to his health as well as to the health of his co-workers (Art. 284, Labor Code). The
employer must obtain from a competent public health authority a certification that the employee’s
disease is of such a nature and at such a stage that it can no longer be cured within a period of six
(6) months even with medical attention.
Voluntary Resignation
This type of termination is strengthened by the provisions of Art. 285 of the Labor Code which
recognizes two kinds of termination an employee can initiate – without just cause and with just
cause. If the resignation is without just cause, the employee must give a one (1) month advance
written notice for resignation (commonly referred to as a “resignation letter”) to the employer to
enable them to look for a replacement and prevent work disruption. If the employee fails to provide
a resignation letter, he or she runs the risk of incurring liability for damages.
If the resignation is with just cause, however, the employee need not serve a resignation notice. Art.
285 indicates the just causes for resignation as follows:

serious insult to the honor and person of the employee;

inhuman and unbearable treatment accorded the employee by the employer or his
representative;

crime committed against the person of the employee or any immediate members of the
employee’s family; and

other similar causes.
It should be noted that employees who voluntarily resign from work are not entitled to separation
pay. Philippine laws only grant separation pay to those who were dismissed from service not due to
their own fault or negligence but for reasons that are beyond their control, i.e. business closure,
cessation of operation, retrenchment (reduction of costs) to prevent losses, etc. However, there are
at least two cases where employees who resign voluntarily may be entitled to separation pay, and
they are as follows:

when payment of separation pay is provided in the employment contract or Collective
Bargaining Agreement (CBA, for companies with existing bargaining agent or labor union); and

when it is authorized by established company practice or policy.
Due Process in Termination of Employment
Due process in the context of employment termination is the right of an employee to be notified of
the reason for his or her dismissal and, in case of just causes, to be provided the opportunity to
defend himself or herself.
The due process is different for both authorized and just causes. Just cause involves a two-notice
rule while authorized cause requires a 30-day notice. If due process is not accorded to the employee
before termination of the employment or the termination itself is declared illegal, the employee is
entitled to receive reinstatement and full backwages (Art. 279, Labor Code). If reinstatement is no
longer possible where the dismissal was unjust, separation pay may be granted.
Dismissals based on just causes involve the two-notice rule:
1. A written notice, commonly referred to as a notice to explain specifying the grounds for
termination and giving the employee ample opportunity to explain their side;
2. A hearing or conference to allow the employee to respond to the charge/s, present evidence,
or rebut the evidence presented against them; and
3. A notice of decision indicating the justification for termination as well as the corresponding
sanctions (if any) after due consideration of all evidence.
Due Process for Authorized Causes
Dismissals based on authorized causes involve the following:
1. Submission of a written notice of dismissal to the employee specifying the grounds for dismissal
at least 30 days before the date of termination; and
2. A copy of the notice which shall be provided to the Regional Office of the Department of Labor
and Employment (DOLE) where the employer is located.
Termination of Employment FAQs
1. What is the right to security of tenure?
The right to security of tenure means that a regular employee shall remain employed unless his or
her services are terminated for just or authorized cause and after observance of procedural due
process.
2. May an employer dismiss an employee? What are the grounds?
Yes. An employer may dismiss an employee on the following just causes:
a) serious misconduct;
b) willful disobedience;
c) gross and habitual neglect of duty;
d) fraud or breach of trust;
e) commission of a crime or offense against the employer, his family or representative;
f) other similar causes.
3. Are there other grounds for terminating an employment? What are they?
Yes. The other grounds are authorized causes:
a) installation of labor-saving devices;
b) redundancy;
c) retrenchment to prevent losses;
d) closure and cessation of business; and
e) disease / illness.
4. Before terminating the services of an employee, what procedure should the employer observe?
An employer shall observe procedural due process before terminating one’s employment.
5. What are the components of procedural due process?
A. In a termination for just cause, due process involves the two-notice rule:
a) A notice of intent to dismiss specifying the ground for termination, and giving said employee
reasonable opportunity within which to explain his or her side;
b) A hearing or conference where the employee is given opportunity to respond to the charge,
present evidence or rebut the evidence presented against him or her;
c) A notice of dismissal indicating that upon due consideration of all the circumstances, grounds
have been established to justify termination.
B. In a termination for an authorized cause, due process means a written notice of dismissal to the
employee specifying the grounds at least 30 days before the date of termination. A copy of the
notice shall also be furnished the Regional Office of the Department of Labor and Employment
(DOLE) where the employer is located.
6. What is the sanction if the employer failed to observe procedural due process in cases of legal
and authorized termination?
In cases of termination for just causes, the employee is entitled to payment of indemnity or nominal
damages in a sum of not more than 30,000 pesos (Agabon vs. NLRC, 442 SCRA 573); in case of
termination for authorized causes, 50,000 pesos (Jaka Food Processing vs. Darwin Pacot, 454 SCRA
119).
7. May an employee question the legality of his or her dismissal?
Yes. The legality of a dismissal may be questioned before the Labor Arbiter of a Regional
Arbitration Branch of the National Labor Relations Commission (NLRC), through a complaint for
illegal dismissal. In establishments with a collective bargaining agreement (CBA), the dismissal may
be questioned through the grievance machinery established under the CBA. If the complaint is not
resolved at this level, it may be submitted to voluntary arbitration.
8. In cases of illegal dismissal, who has the duty of proving that the dismissal is valid? (burden of
proof)
The employer.
9. Suppose the employer denies dismissing the employee, who has the duty to prove that the
dismissal is without valid cause?
The employee must elaborate, support or substantiate his or her complaint that he or she was
dismissed without valid cause (Ledesma, Jr. vs. NLRC, 537 SCRA 358, October 19, 2007).
10. On what grounds may an employee question his or her dismissal?
An employee may question his or her dismissal based on substantive or procedural grounds.
The substantive aspect pertains to the absence of a just or authorized cause supporting the
dismissal.
The procedural aspect refers to the failure of the employer to give the employee the opportunity
to explain his or her side.
11. What are the rights afforded to an unjustly dismissed employee?
An employee who is dismissed without just cause is entitled to any or all of the following:
a) reinstatement without loss of seniority rights;
b) in lieu of reinstatement, an employee may be given separation pay of one month pay for every
year of service (Golden Ace Builders, et. al vs. Jose Talde, May 5, 2010, GR No. 187200);
c) full backwages, inclusive of allowances and other benefits or their monetary equivalent from the
time compensation was withheld up to the time of reinstatement;
d) damages if the dismissal was done in bad faith (Aurora Land Project Corp. vs NLRC, 266 SCRA
48).
12. What is reinstatement?
Reinstatement means restoration of the employee to the position from which he or she has been
unjustly removed.
Reinstatement without loss of seniority rights means that the employee, upon reinstatement,
should be treated in matter involving seniority and continuity of employment as though he or she
had not been dismissed from work.
When a Labor Arbiter rules for an illegal dismissal, reinstatement is immediately executory even
pending appeal by the employer (Article 223 of the Labor Code, as amended).
13. In what forms may reinstatement pending appeal be effected?
Reinstatement pending appeal may be actual or by payroll, at the option of the employer.
14. What is meant by full backwages?
Full backwages refer to all compensations, including allowances and other benefits with monetary
equivalent that should have been earned by the employee but was not collected by him or her
because of unjust dismissal. It includes all the amounts he or she could have earned starting from
the date of dismissal up to the time of reinstatement.
15. What is separation pay?
In termination for authorized causes, separation pay is the amount given to an employee terminated
due to installation of labor-saving devices, redundancy, retrenchment, closure or cessation of
business or incurable disease.
Separation pay may also be granted to an illegally dismissed employee in lieu of reinstatement.
16. How much is the separation pay?
In cases of installation of labor-saving devices or redundancy, the employee is entitled to receive the
equivalent of one month pay or one month for every year of service, whichever is higher.
In cases of retrenchment, closure or cessation of business or incurable disease, the employee is
entitled to receive the equivalent of one month pay or one-half month pay for every year of service,
whichever is higher.
In case of separation pay in lieu of reinstatement, the employee is entitled to receive the equivalent
of one month pay for every year of service.
17. Is proof of financial losses necessary to justify retrenchment?
Yes. Proof of actual or imminent financial losses that are substantive in character must be proven by
the employer to justify retrenchment (Lopez Sugar Central vs. NLRC, 189 SCRA 179).
18. Are there other conditions before an employee may be dismissed on the ground of
redundancy?
Yes. It must be shown that there is:
a) Good faith in abolishing redundant position; and
b) Fair and reasonable criteria in selecting employees to be dismissed, such as but not limited to less
preferred status (e.g. temporary employee), efficiency and seniority (Asian Alcohol Corp. vs. NLRC,
305 SCRA 416);
c) A one-month prior notice is given to the employee and DOLE Regional Office as prescribed by law.
19. May the services of an employee be terminated due to disease?
Yes. The employer may terminate employment on ground of disease only upon the issuance of a
certification by a competent public health authority that the disease is of such nature or at such
stage that it cannot be cured within a period of six months even with proper medical treatment.
20. What is constructive dismissal?
Constructive dismissal refers to an involuntary resignation resorted to when continued employment
becomes impossible, unreasonable or unlikely; when there is a demotion in rank or a diminution in
pay; or when a clear discrimination, insensibility or disdain by an employer becomes unbearable to
an employee or an unwarranted transfer or demotion of a employee, or other unjustified action
prejudicial to the employee. The employer has to prove that such managerial actions do not
constitute constructive dismissal (Blue Dairy Corp. vs. NLRC, 314 SCRA 401)
21. May an employee be placed on floating status?
Yes, provided it is permitted under circumstances for a period of not more than six (6) months.
Beyond this period, floating status becomes constructive dismissal which entitles the employee to
separation pay (Phil. Industrial Security Agency Corp. vs. Virgilio Dapiton and NLRC, 320 SCRA 124)
22. When an employee resigned voluntarily, is he or she entitled to separation pay?
No. An employee is not entitled to separation pay when he or she resigns voluntarily, unless it is a
company practice or provided in the CBA (Hanford Philippines Inc. vs. Shirley Joseph, 454 SCRA 786,
March 31, 2005).
23. Are quitclaims valid?
Yes, provided that these are voluntarily signed and the consideration is reasonable and is not
against the law or public policy. (More Maritime Agencies vs. NLRC, 307 SCRA 189)
Quitclaims entered into by union officers and some members do not bind those who did not sign it
(Liana’s Supermarket vs. NLRC, 257 SCRA 186).