Labor Code of the Philippines PDF

LABOR CODE OF THE PHILIPPINES BOOK ONE: PRE-EMPLOYMENT ⮚ Recruitment and placement of workers - Recruitment and placement: an act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers. - This includes: referrals, contract services,...

LABOR CODE OF THE PHILIPPINES BOOK ONE: PRE-EMPLOYMENT ⮚ Recruitment and placement of workers - Recruitment and placement: an act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers. - This includes: referrals, contract services, promising or advertising for employment - Whether for profit or not: Provided that any person or entity in any manner (offers or for a fee) employment to two or more persons shall be deemed engaged. - Private fee-charging employment agency: person or entity engaged in recruitment and placement of workers for a fee which is charged, directly or indirectly, from the workers or employers or both. - License: document issued by Department of Labor authorizing to operate a private employment agency. - Private Recruitment Entity: engaged in the recruitment and placement of workers without charging any fee from the workers of employers. - Authority: issued by Department of Labor authorizing a person or association to engage in recruitment and placement activities as a private recruitment entity - Seaman: employed in a vessel engaged in maritime navigation - Overseas employment: employment outside of the Philippines - Emigrant: emigrates to a country by virtues of an immigrant visa or resident permit ⮚ Employment Promotion: RA 8759 or Public Employment Service Office; provides full employment and equality of employment opportunities for all ⮚ Bureau of Employment Services: Executive Order 797 ⮚ Employment of non-resident aliens - The employer who desires to engage an alien for employment in the Philippines shall obtain an employment permit from the department of labor - It shall be issued to a non-resident alien or to the applicant employer - Prohibition Against Transfer of Employment: after the issuance of an employment permit, the alien shall not transfer to another job or change his employer without prior approval of the Secretary of Labor - The violation shall be punished - Submission of List: the employer employing non-resident foreign nationals shall submit a list of such nationals to the secretary of labor within thirty (30) days after such date indicating their names, citizenship, foreign and local address, nature of employment and status of stay in the country. BOOK TWO: HUMAN RESOURCES DEVELOPMENT PROGRAM ⮚ National Manpower Development Program National Policies and Administrative Machinery for their implementation - To develop human resources  - Establish training institutions and formulate such plans - Programs as will ensure efficient allocation - Development and utilization of the nation’s manpower - Promote employment and accelerate economic and social growth. - Manpower: portion of the nation’s population which has actual or potential capability to contribute directly to the production of goods and services - Entrepreneurship: training for self-employment or assisting individual or small industries ⮚ Training and Employment for special workers - Apprenticeship: practical training on the job supplemented by related theoretical instruction - Apprentice: worker who is covered by a written apprenticeship agreement with an individual employer - Apprenticeable Occupation: any trade form of employment or occupation which required more than 3 months of practical training on the job supplemented by related theoretical instruction - Apprenticeship agreement: employment contract wherein the employer binds himself to train the apprentice and the apprentice in turn accepts the terms of training. ⮚ Qualifications of Apprentice - At least 14 years of age - Possess vocational aptitude and capacity for appropriate tests - Possess the ability to comprehend and follow oral and written instructions ⮚ Employment of Apprentices - Only employers in the highly technical industries may employ apprentices and only in apprenticeable occupations approved by the minister of labor ⮚ Learners: hired as trainees in semi-skilled and other industrial occupations which are non-apprenticeable and which may be learned through practical training in a relatively short period of time - Learners’ practical training shall not exceed three (3) months - Learners may be employed when no experienced workers are available - The employment of learners is necessary to prevent curtailment of employment opportunities - The employment does not create unfair competition in terms of labor costs or impair or lower working standards ⮚ Handicapped Workers - Earning capacity is impaired by age or physical or mental deficiency or injury - Handicapped workers may be employed when their employment is necessary to prevent curtailment of employment opportunities and does not create unfair competition - Handicapped workers may be hired as apprentices or learners if their handicap is not such as to effectively impede the performance of job operations in the particular occupations BOOK THREE: CONDITIONS OF EMPLOYMENT ⮚ Working Conditions and Rest Periods - Managerial Employees: Primary duty consists of the management of the establishment in which they are employed or of a department  - Field Personnel: refers to non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer ⮚ Work Hours - The normal hours of work of any employee shall not exceed eight (8) hours a day - Health Personnel: shall hold regular office hours (8hrs) for five (5) days a week, except where the exigencies of the service require that such personnel work for six (6) days or 48 hrs - The health personnel who worked for 6 days or 48 hours shall be entitled to an additional compensation of at least 30% of their regular wage (premium pay) for work on the 6th day - Hours worked shall include: a. All time during which an employee is required to be on duty or to be at a prescribed workplace b. All time during which an employee is suffered or permitted to work - Rest Periods: short duration of rest during working hours shall be counted as hours worked - Meal Periods: it shall be the duty of every employer to give his employees not less than sixty (60) minutes time off for their regular meals - Night-Shift Differential: every employee shall be paid a night shift differential of not less than 10% of his regular wage for each hour of work performed between 10:00 pm to 6:00 am - Overtime Work: work may be performed beyond 8 hours a day provided that the employee is paid for the overtime work - An additional compensation equivalent to his regular wage plus at least 25% - Work performed beyond 8 hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first 8 hours on a holiday or rest day plus at least 30%. - Undertime Not Offset by Overtime: undertime work on any particular day shall not be offset by overtime work on any other day. - Undertime Not Offset by Overtime: Permission given to the employee to on leave on some other day of the week shall not exempt the employer from paying the additional compensation required - Emergency Overtime Work: any employee may be required by the employer to perform overtime work in any following cases: a. When the country is at war b. When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality. c. Urgent work to be performed on machines, installations, or equipment d. When the work is necessary to prevent loss or damage to perishable goods e. Where the completion or continuation of the work started before the 8th hour to prevent serious obstruction or prejudice to the business or operations of the employer - Computation of Additional Compensation: computing overtime and other additional remuneration as required - Right to Weekly Rest Day: it shall be the duty of every employer whether operating for profit or not  - To provide each of his employees a rest period of not less than 24 consecutive hours after every 6 consecutive normal work days. - The employer shall determine and schedule the weekly rest day of his employees subject to collective bargaining agreement - The employer shall respect the preference of employees as their weekly rest day when such preference is based on religious grounds - When Employer May Require Work on Rest Day: the employer may require his employees to work on any day: a. In case of actual impending emergencies b. Urgent work to be performed on the machinery, equipment or installation to avoid serious loss c. In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures d. To prevent loss or damage to perishable goods e. The nature or work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer f. Under other circumstances analogous or similar to the foregoing - Compensation for Rest Day, Sunday or Holiday Work a. An employee is made or permitted to work on his scheduled rest day shall be paid an additional compensation of at least 30% of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day b. The nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays c. Work performed on any special holiday shall be paid an additional compensation of at least 30% of the regular wage, where such holiday work falls on the employee’s scheduled rest day shall be entitled to an additional compensation of at least 50% of regular wage d. Collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay than that prescribed, the employer shall pay such higher rate ⮚ Holidays, Service Incentive Leaves and Service Charges - Right to Holiday Pay a. Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than 10 workers b. The employer may require an employee to work on holiday, but the employee shall be paid a compensation equivalent to twice his regular rate c. Holiday includes: New Year’s Day, Maundy Thursday, Good Friday, April 9th, May 1st, June 12th, July 4th, November 30th, December 25th and 30th, and day designated by law for holding a general election. - Right to Service Incentive Leave a. Every employee who has rendered at least 1 year of service shall be entitled to a yearly service incentive leave of 5 days with pay.  b. This provision shall not apply to those who are already enjoying the benefit herein provided: 1. Enjoying vacation leave with pay of at least 5 days 2. Employed in establishments regularly employing less than 10 employees 3. Establishments exempted from granting this benefit by the Secretary of Labor 4. Employment after considering the viability or financial condition of such establishment c. The grant of benefit in excess of that provided herein shall not be made a subject of arbitration or any court or administrative action - Service Charges: all service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of 85% for all covered employees and 15% for management. ⮚ Wages - Regional Minimum Wages: Wages for agricultural and non-agricultural employees and workers in each and every region of the country - Payment by Results: shall regulate the payment of wages by results 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 - 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 - Payment of wages by check or money order shall be allowed when such manner of payment is customary - Time of Payment: Wages shall be paid at least once every 2 weeks or twice a month at intervals not exceeding 16 days - 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 2 weeks shall be subject to the following conditions, in the absence of a collective bargaining agreement or arbitration award: a. The payments are made at intervals not exceeding 16 days b. The final settlement is made upon completion of the work - Place of Payment: Payment of wages shall be made at or near the place of undertaking - Direct Payment of Wages: shall be paid directly to the workers to whom they are due, except: a. Force majeure rendering such payment impossible or under other special circumstances to be determined b. Where the worker has died, the employer may pay the wages to the heirs of the latter without necessity of intestate proceedings. The claimants, if they are all of age, shall execute an affidavit attesting to their relationship to the deceased. If the heir is minor, the affidavit shall execute on his behalf by his natural guardian or next-of-kin.  - Contractor or Subcontractor: whenever an employee 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 - If the contractor or subcontractor fails to pay the wages of his employees, the employer shall be jointly and severally work performed under the contract, in the same manner and extent that he is liable to employees directly employed by him. - Indirect Employer: 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 - 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 - Solidary Liability: every employer or indirect employer shall be held responsible with his contractor or subcontractor for any violation of any provision - 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. Unpaid wages and monetary claims shall be paid in full before claims of the government and other creditors may be paid - Attorney’s Fees: a. in case of unlawful withholding of wags, the culpable party may be assessed attorney’s fees equivalent to 10% of the number of wages recovered b. It shall be unlawful for any person to demand or accept in any judicial or administrative proceedings for the recovery of wages ⮚ Prohibitions regarding wages - Non-Interference in Disposal of Wages: No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages - Wage Deduction: No employer shall make any deduction of wages except: a. 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 b. For union dues, where the right of the worker and his union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned c. Where the employer is authorized by law or regulations - 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 of 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 necessary - 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, and his responsibility has been clearly shown - Withholding of Wages and Kickbacks Prohibited: it shall be unlawful for any person to withhold any amount from the wages of a worker or induce him to give up any part of his wages without the worker’s consent  - Deduction to Ensure Employment: it shall be unlawful to make any deduction from the wags of any employee for the benefit of the employer as consideration of a promise of employment or retention in employment - 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. - False Reporting: it shall be unlawful for any person to make any statement knowing to be false in any material respect ⮚ Wage Studies, Wage Agreements and Wage Determination - Standards/Criteria for Minimum Wage Fixing: a. The demand for living wages b. Wage adjustments vis-à-vis the consumer price index c. The cost of living and changes or increases d. The needs of workers and their families e. The need to induce industries to invest in the countryside f. Improvements in standards of living g. The prevailing wage levels h. Fair return of capital invested and capacity to pay of employers i. Effects on employment generation and family income j. The equitable distribution of income and wealth along the imperatives of economic and social development ⮚ Working Conditions for Special Groups of Employees ⮚ Employment of Women - Facilities for Women: shall establish standards that will ensure the safety and health of women employees a. Provide seats proper for women and permit them to use such seats when they are free from work and during work hours, provided they can perform their duties in this position without detriment to efficiency b. To establish separate toilet rooms and lavatories for men and women and provide at least a dressing room for women c. To establish nursery in a workplace for the benefit of the women employees d. To determine appropriate minimum age and other standards for retirement or termination in special occupations such as those of flight attendants and the like - Maternity Leave benefits: a. Every employer shall grant to any pregnant woman employee who has rendered aggregate service of at least 6 months for the last 12 months, maternity leave of at least 2 weeks prior to the expected date of delivery and another 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 maternity leave the production of a medical certificate stating that delivery will probably take place within 2 weeks. b. The maternity leave shall be extended without pay on account of illness medically certified to arise out of the pregnancy, delivery, abortion or miscarriage, which renders  the woman unfit for work unless she has earned unused leave credits which such extended leave may be charged c. The maternity leave provided shall be paid by the employer only for the first 4 delivers by a woman employee - Family Planning Services; Incentives for Family Planning a. 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 of contraceptive pills and intrauterine devices b. Shall develop and prescribe incentive bonus schemes to encourage family planning among female workers in any establishment or enterprise c. 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 acts of discrimination: 1. Payment of a lesser compensation to a female employee as against a male employee 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 - 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 a reason of her marriage - Prohibited acts: 1. To deny any woman employee the benefits or to discharge for the purpose of preventing her from enjoying any benefits 2. To discharge such woman on account of her pregnancy, or while on leave or in confinement due to pregnancy 3. To discharge or refuse the admission of such woman upon returning to her work for fear that she may again be pregnant ⮚ Employment of Minors - Minimum Employable Age a. No child below 15 years of age shall be employed, except when he works directly under the sole responsibility of his parents or guardians and does not interfere his schooling b. Any person between 15 and 18 years of age may be employed for such number of hours and such periods of the day c. Shall in no case allow the employment of a person below 18 years of age in undertaking which is hazardous or deleterious in nature - Prohibition against child discrimination: no employer shall discriminate against any person in respect to terms and conditions of employment on account of his age ⮚ Employment of Househelpers - Domestic or household service shall mean service in the employer’s home - Contract of Domestic Service: the original contract of domestic service shall not last for more than 2 years but it may be renewed for such periods as may be agreed upon by the parties  - Minimum Wage Rates of Househelpers (not updated) 1. 800 pesos a month for Metro Manila and highly urbanized cities 2. 650 pesos a month for those other chartered cities and first-class municipalities 3. 550 pesos a month for those in other municipalities - Provided that the employers shall review the employment contracts of their househelpers every 3 years - Househelpers who are receiving at least 1,000 pesos shall be covered by SSS and be entitled to all benefits - Minimum Cash Wage: the minimum wage shall be the basic cash wages which shall be paid to the househelpers in addition to lodging, food, and medical attendance - Assignment to Non-Household Work: No househelper shall be assigned to work in commercial, industrial or agricultural enterprise at a wage or salary rate lower than that provided for agricultural or non-agricultural workers as prescribed. - Opportunity for Education: If the househelper is under the age of 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. - Treatment of Househelpers: The employer shall treat their househelper in humane manner. - 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 - 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 the 15 days by way of indemnity - If the househelper leaves without justifiable reason, he or she shall forfeit the unpaid salary due not exceeding 15 days - 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 househelper may give notice to put an end to the relationship 5 days before the intended termination of the service - Employment Certification: 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 houshelper. - 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 ⮚ Employment Homeworkers - Distribution of Homework 1. Delivers, or causes to be delivered, any goods, articles or materials to be processed or fabricated in or about a home and thereafter to be returned or to be disposed of or distributed in accordance with his directions 2. Sells any goods, articles or materials to be processed or fabricated in or about a home and then rebuys them after such processing or fabrication ⮚ Employment of Night Workers - Coverage: Applies to all persons who shall be employed or permitted or suffered to work at night, except those employed in agriculture, stock raising, fishing, maritime transport and inland navigation during a period of not less than 7 consecutive hours, including the interval from 12MN to 5AM - Night Worker: any employed person whose work requires performance of a substantial number of hours of night work which exceeds a specified limit - Health Assessment: workers shall have the right to undergo a health assessment without charge and receive advice on how to reduce or avoid health problems associate with their work a. Before taking up an assignment as a night worker b. At regular intervals during such an assignment c. If they experience health problems during an assignment which are not caused by factor other than the performance of night work - The exception of a finding of unfitness for night work, it shall not be transmitted to others without worker’s consent and not be used to their detriment - Mandatory Facilities: suitable first-aid facilities shall be made available for workers performing night work, including arrangements where such workers, where necessary, can be taken immediately to a place for appropriate treatment - Transfer: those who are certified as unfit for night work, due to health reasons, shall be transferred to a similar job for which they are fit to work - If such transfer to a similar job is not practicable, these workers shall be granted the same benefits as other workers who are unable to work or to secure employment during such period - A night worker certified as temporarily unfit for night work shall be given the same protection against dismissal or notice of dismissal as other workers who are prevented from working for reasons of health - Women Night Workers: Measure shall be taken to ensure that an alternative to night work is available to women workers a. Before and after childbirth, for a period of at least 16 weeks which shall be divided between the time before and after childbirth b. For additional periods, in respect of which a medical certificate is produced stating that said additional periods are necessary for the health of the mother or child: 1. During pregnancy 2. After childbirth is fixed, the length of which shall be determined by DOLE after consulting the labor organizations and employers 3. During the periods: a. A woman worker shall not be dismissed or given notice of dismissal except for just or authorized cases that are not connected with pregnancy, childbirth, and childcare responsibilities b. A woman shall not lose the benefits regarding her status, seniority, and access to promotion which may attach to her regular night work position - Pregnant women and nursing mothers may be allowed to work at night only if a competent physician other than the company physician shall certify their fitness to render night work  - Compensation: the compensation for night workers in the form of working time, pay or similar benefits shall recognize the exceptional nature of night work - Social Services: appropriate social services shall be provided for night workers and where necessary for workers performing night work - Night Work Schedules: Before introducing work schedules requiring night workers, the employer shall consult the workers’ labor organizations concerned on the details of such schedules and the forms of organization of night work that are best adapted to the establishment and its personnel BOOK FOUR: HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS ⮚ Medical, Dental, and Occupational Safety - First Aid Treatment: Every employer shall keep in his establishment such first-aid medicines and equipment as the nature and conditions of work may require - Emergency Medical and Dental Services: It shall be the duty of every employer to furnish his employees in any locality with free medical and dental attendance and facilities consisting of: a. Services of full-time registered nurse when the number of employees exceeds 50 but not more than 200. Except when the employer does not maintain hazardous workplaces, the services of a graduate first-aider shall be provided for the protection of workers b. The services of a full-time registered nurse, a part-time physician and dentist, and an emergency clinic, when the number of employees exceeds 200 but not more than 300 c. The services of a full-time physician, dentist and a full-time registered nurse as well as a dental clinic and an infirmary or emergency hospital with one bed capacity for every 100 employees when the number of employees exceeds 300. - In cases of hazardous workplaces, no employer shall engage the services of a physician or dentist who cannot stay in the premises of the establishment for at least 2 hours for part time basis and not less than 8 hours in the case of those employed on full time basis - When Emergency Hospital Not Required: the requirement for an emergency hospital or dental clinic shall not be applicable in case there is a hospital or dental clinic which is accessible from the employer’s establishment and makes arrangement for the reservation therein of the necessary beds and dental facilities for the use of his employees - Health Program: the physician engaged by an employer shall develop and implement a comprehensive occupational health program for the benefit of the employees - Qualifications of Health Personnel: Physicians, dentists, and nurses employed by employers shall have the necessary training in industrial medicine and occupational safety and health - Assistance of Employer: it shall be the duty of any employer to provide all the necessary assistance to ensure the adequate and immediate medical and dental attendance and treatment to an injured or sick employee in case of emergency - Occupational Health and Safety - Training Programs: the DOLE shall develop and implement training programs to increase the number and competence of personnel in the field of occupational safety and industrial health. ⮚ Employees Compensation and State Insurance Fund - Policy: The state shall promote and develop tax-exempt employees’ compensation program whereby employees and their dependents may promptly secure adequate income benefit and medical related benefits - Definition of Terms: 1. Code: Labor Code of the Philippines (PD No. 442) 2. Commission: Employees’ Compensation Commission 3. SSS: Social Security System (RA 1161) 4. GSIS: Government Service Insurance System (Commonwealth Act 186) 5. System: SSS or GSIS, as the case may be 6. Employer: any person, natural or juridical, employing the services of the employee 7. Employee: person covered by GSIS; AFP, and any person employed as casual emergency, temporary, substitute or contractual. Any person compulsorily covered by SSS; employees from private sector 8. Person: any individual, partnership, firm, association, trust, corporation or legal representative 9. Dependents: legitimate or legally adopted or acknowledge natural child who is unmarried, not gainfully employed, and not over 21 years of age provided that he is incapable of self-support due to physical or mental defect who is congenital or acquired during minority; legitimate spouse living with the employee; and the parents of said employee wholly dependent upon him for regular support 10. Beneficiaries: dependent spouse until he/she remarries and dependent children who are the primary beneficiaries. 11. Injury: harmful change on the human organism from any accident arising out of and in the course of the employment 12. Sickness: illness definitely accepted as an occupational disease or any illness caused by employment subject to proof that the risk of contracting the same is increased by working conditions 13. Death: loss of life 14. Disability: loss or impairment of a physical or mental function 15. Compensation: all payments made for income benefits and medical or related benefits 16. Income Benefit: all payments to the employee or his dependents 17. Medical benefit: all payments to provide medical care, rehabilitation services and hospital care 18. Related benefit: all payments for appliances and supplies 19. Appliances: artificial aids 20. Supplies: medicine and other medical, dental, or surgical items 21. Hospital: medical facility, government or private; an active member in good standing of the Philippine Hospital Association 22. Physician: doctor of medicine duly licensed to practice in the Philippines 23. Wages or Salary: computation of benefits means the monthly remuneration 24. Monthly Salary Credit: salary base for contributions - Coverage and Liability - Compulsory Coverage: State Insurance Fund shall be compulsory upon all employers and their employees not over 60 years of age, provided that an employee who is over 60 years of age and paying contributions to qualify for the retirement or life insurance benefit - Foreign Employment: shall ensure adequate coverage of Filipino employees employed abroad, subject to regulations as it may prescribe - Disability Benefits - Temporary Total Disability: a. Who sustains an injury or contracts sickness resulting in temporary total disability, the daily income benefit shall not be less than 10 pesos nor more than 90 pesos, nor paid for a continuous period longer than 120 days. b. The payment of such income benefit shall in accordance with the regulations - Permanent Total Disability: a. Employee who contracts sickness or sustains an injury resulting in his permanent total disability for each month until his death b. The monthly income benefit shall be guaranteed for 5 years, and shall be suspended if the employees is gainfully employed or recovers from his permanent total disability or fails to present himself for examination at least once a year c. The following disabilities shall be deemed total and permanent: 1. Temporary total disability lasts for more than 120 days 2. Complete loss of sight of both eyes 3. Loss of two limbs at or above the ankle or wrist 4. Permanent complete paralysis of two limbs 5. Brain injury resulting in incurable or insanity 6. Such cases as determined by the Medical Doctor d. The number of months of paid coverage shall be defined - Permanent Partial Disability: a. Who contracts sickness or sustains an injury resulting to permanent partial injury b. The benefit shall be paid for not more than the period designated in the following schedules: (Complete and permanent loss of the use) 1. One thumb (10 months) 2. One index finger (8 months) 3. One middle finger (6 months) 4. One ring finger (5 months) 5. One little finger (3 months) 6. One big toe (6 months) 7. One Toe (3 months) 8. One arm (50 months) 9. One hand (39 months) 10. One leg (46 months) 11. One ear (10 months) 12. Both ears (20 months) 13. Hearing of one ear (10 months) 14. Hearing of both ears (50 months) 15. Sight of one eye (25 months)  c. A loss of wrist shall be considered as a loss of the hand, and a loss of an elbow shall be considered as a loss of the arm. A loss of an ankle shall be considered as a loss of a foot, a loss of knee shall be considered as a loss of leg. A loss of more than one joint shall be considered as a loss of one half of the whole finger or toe. That such loss shall be either the functional loss of the use d. In case of permanent partial disability less than the total loss of the member, the same monthly income benefit shall be paid for a portion of the period established for the total loss of the member e. In the cases of loss of more than one member, the same monthly income benefit shall be paid for a period equivalent to the sum of the periods established for the loss of the member f. In cases of illness resulting in a permanent partial disability not listed in the preceding schedule, the benefit shall be an income benefit equivalent to the percentage of the permanent loss of the capacity to work g. The income benefit payable in case of permanent partial disability may be paid in monthly pension or in lump sum if the period covered does not exceed 1 year ⮚ Death Benefits - Death: a. The System shall pay the primary beneficiaries upon the death of the covered employee. The amount is equivalent to his monthly income benefit plus 10% for each dependent child but not exceeding to 5, beginning with the youngest. The monthly income benefit shall be guaranteed for 5 years b. The System shall pay to the primary beneficiaries upon the death of a covered employee who is under permanent total disability, 80% of the monthly income benefit and his dependents to the dependent’s pension. c. The monthly benefit shall be the new amount of the monthly income benefit for the surviving beneficiaries d. Funeral Benefit: A funeral benefit of 3,000 pesos shall be paid upon the death of a covered employee or permanently totally disabled pensioner. - Provisions Common to Income Benefits - Relationship and Dependency: All questions of relationship and dependency shall be determined as of the time of death - Delinquent Contributions: a. An employer who is delinquent in his contributions shall be liable to the System for the benefits which may have been paid by the System to his employees or their dependents. b. Failure of refusal of the employer to pay or remit the contribution shall not prejudice the right of the employee or his dependents to the benefits - Second Injuries: If the employee under permanent partial disability suffers another injury which results in a compensable disability greater than the previous injury, the State Insurance Fund shall be liable for the income benefit of the new disability - Assignment of Benefits: No claim is transferable or liable to tax, attachment, garnishment, levy or seizure by or under legal process, either before or after receipt by the person, except to pay any debt of the employee to the System. - Earned Benefits: Income benefits shall be payable to an employee who is entitled to receive wages, salaries, or allowances for holidays, vacation or sick leaves and any other award of benefit under a collective bargaining or other agreement. - Safety Devices: In case of the employee’s injury or death due was due to the failure of the employer to comply with any law or to install and maintain safety devices, the employer shall pay the State Insurance Fund a penalty of 25% of the lump sum equivalent of the income benefit payable by the System to the employee - Prescriptive Period: No claim for compensation shall be given due course unless said claim is filed with the System within 3 Years from the time the cause of action accrued - Erroneous Payment: a. If the System in good faith pays income benefit to a dependent who is inferior in right to another dependent or with whom another dependent is entitled to share b. In case of doubt as to the respective rights of rival claimants, the System is hereby empowered to determine as to whom payments should be made. If the money is payable to a minor or incompetent, it may consider the best qualify person to taka care and dispose the proper - Prohibition: No agent, attorney or other person pursuing or in charge of preparation or filing of any claim for benefit shall demand or charge for his services any fee, and any stipulation to the contrary shall be null and void. The violation of any provision shall be punished by a fine of not less than 500 pesos nor more than 5,000 pesos or imprisonment for not less than 6 months nor more than 1 year or both at the discretion of the court - Exemption from Levy, Tax, etc.: All laws to the contrary notwithstanding, the State Insurance Fund an all its assets shall be exempt from any tax, fee, charge, levy, or customs or import duty and no law enacted shall apply unless it is provided that the same is applicable by expressly stating its name - Records, Reports, and Penal Provisions - Record of Death or Disability: a. All employers shall keep a logbook to record chronologically the sickness, injury or death of their employees b. All entries in the employer’s logbook shall be made by the employer or any of his authorized officials after verification of the contingencies of the employees’ absences for a period of a day or more c. Should any employer fail to record in the logbook an actual sickness injury or death of any of his employees within the period prescribed, give false information, he shall be held liable for 50% of the lump sum equivalent of the income benefit to which the employee may be found to be entitled, the payment of which shall accrue to the State Insurance Fund d. In case of payment of benefits for any claim which is later determined to be fraudulent and the employer is found to be a party to the fraud, the employer shall reimburse the System the full amount of the compensation paid - Notice of Sickness, Injury or Death: The said notice shall be given to the employer by the employee or by his dependents or anybody on his behalf within 5 days from the occurrence of the contingency. -  - Penal Provisions: a. When regards to the funds as are being paid to, collected or disbursed by the System, shall be applicable to the collection, administration and disbursement of the funds. b. Any person for the purpose of securing entitlement to any benefit or payment or the issuance of any certificate or document for any purpose whether for him or for some other person, commits fraud, collusion, falsification, misrepresentation of facts or any other kind of anomaly, shall be punished with a fine of not less than 500 pesos nor more than 5,000 pesos and imprisonment for not less than 6 months nor more than 1 year, at the discretion of the court c. If the act is committed by any person who has been employed by the Commission or System, or a recidivist, the imprisonment shall not be less than 1 year; if committed by a lawyer, physician, or other professional, in addition to the penalty prescribed, be disqualified from the practice of his profession; - Medical Care: The Philippine Medical Care Plan shall be implemented as provided under RA 6111 - Adult Education: Every employer shall render assistance in the establishment and operation of adult education programs for their workers and employees as prescribed by DOLE, DepEd, Culture and Sports. BOOK FIVE: LABOR RELATIONS ⮚ National Labor Relations Commission - This shall be attached to DOLE solely for program and policy coordination - Powers and Duties - Jurisdiction of the Labor Arbiters and the Commission: a. The Labor Arbiters shall have original and exclusive jurisdiction to hear and decide within 30 calendar days after the submission of the case by the parties for decision without extension. The following cases involving all workers: 1. Unfair Labor Practice cases 2. Termination disputes 3. Involving wages, rate of pay, hours of work, and other terms and conditions of employment 4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee relations 5. Case arising from any violation including questions involving the legality of strikes and lockouts 6. Except claims for Employees Compensation b. The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters c. Cases arising from the interpretation or implementation of collective bargaining agreements and those arising from the interpretation of enforcement of company personnel policies shall be disposed of by the Labor Arbiter - Powers of the Commission: They shall have the power and authority:  a. To promulgate rules and regulations governing the hearing and disposition of cases before it and its regional branches, as well as those pertaining to its internal functions and such rules and regulations as may be necessary to carry out b. To administer oaths, summon the parties to a controversy, issue subpoenas requiring the attendance and testimony of witnesses or the production of such books, papers, contracts, records, statement of accounts, agreements, and others c. To conduct investigation for the determination of a question, matter or controversy within its jurisdiction d. To hold any person in contempt directly or indirectly and impose appropriate penalties in accordance with law e. To enjoin or restrain any actual or threatened commission of any or all prohibited or unlawful acts or to require the performance of a particular act in any labor dispute 1. The prohibited or unlawful acts have been threatened and will be committed unless restrained 2. Substantial and irreparable injury to complainant’s property 3. Greater injury will be inflicted upon complainant by the denial of relief than will be inflicted upon defendants by the granting of relief 4. That complainant has no adequate remedy at law 5. The public officers charged with the duty to protect complainants’ property are unable or unwilling to furnish adequate protection ⮚ Appeal - Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the Commission by any or both parties within 10 calendar days from receipt of such decisions, awards, or orders. Such appeal may be entertained only on any of the following grounds: a. The prima facie evidence of abuse of discretion b. If the decision was secured through fraud or coercion, including graft and corruption c. If made purely on questions of law d. If serious errors in the findings of facts are raised which would cause grave or irreparable damage ⮚ Bureau of Labor Relations - Shall have an original and exclusive authority to act at their own initiative or upon request of either or both parties - The bureau shall have 15 working days to act on labor cases before it, subject to extension by agreement of the parties - Compromise Agreements: Any compromise settlements involving labor standard laws, voluntarily agreed upon by the parties with the assistance of the Bureau or the regional office of DOLE - Issuance of Subpoenas: they shall have the power to require appearance of any person or the production of any paper, document or matter relevant to a labor dispute - Appointment of Bureau Personnel: The Secretary of DOLE may appoint such number of examiners and other assistants  - Registry of Unions and File of Collective Bargaining Agreements: The Bureau shall keep a registry of legitimate labor organizations and the files of all collective bargaining agreements and other related agreements and record of settlement of labor disputes - Prohibition of Certification Election: The Bureau shall not entertain any petition for certification election or any other action which may disturb the administration - Privileged Communication: Information and statements made at conciliation proceedings shall be treated as privileged communication and shall not be used as evidence in the Commission. ⮚ Labor Organizations - Requirements of Registration: A federation, national union, or industry or trade union center or an independent union shall acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration based on the following requirements: a. 50 pesos – Registration Fee b. Names of the officers, their addresses, the principal address of the labor organization, the minutes of the meetings and the list of the workers who part c. Participated in such meetings d. In case the applicant is an independent union, the names of all its members comprising at least 20% of all employees in the bargaining unit where it seeks to operate e. If the applicant union has been in existence for one or more years, copies of its financial reports f. 4 copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification, and the list of the members who participated in it - Grounds of Cancellation of Registration a. Misrepresentation, false statement or fraud in connection with the adoption of ratification of the constitution b. Misrepresentation, false statement or fraud in connection with the election of officers, minutes of the election of officers, and the list of voters c. Voluntary dissolution by the members - Voluntary Cancellation of Registration: The registration of a legitimate labor organization may be cancelled by the organization itself: That the 2/3 of its general membership votes in a meeting duly called for a purpose to dissolve the organization - Equity of the Incumbent: All existing federations and national unions which meet the qualifications of a legitimate labor organization and none of the grounds for cancellation shall continue to maintain their existing affiliates regardless of the nature of the industry and location of the affiliates - Rights and Conditions of Membership in a Labor Organization - Rights of legitimate labor organizations - Reportorial Requirements ⮚ Unfair Labor Practices - Violates the constitutional right of workers and employees a. To interfere, restrain or coerce employees in the exercise of their right to self-organization  - Unfair Labor Practices of Labor Organizations - It shall be unfair labor practice for a labor organization, its officers, agents or representatives a. To cause or attempt to employer to discriminate against an employee ⮚ Collective Bargaining and Administration of Agreements - Procedure in Collective Bargaining a. Having a written notice when a party desires to negotiate an agreement, the other party shall make a reply not later than 10 calendar days from receipt of such notice b. Should differences arise on the basis of such notice and reply, either party may request for a conference which shall begin not later than 10 days from the date of request c. If the dispute is not settled, the Board shall intervene upon request either or both parties d. During the conciliation proceedings in the Board, the parties are prohibited from doing any act which may disrupt or impede the early settlement of the disputes e. The Board shall exert all efforts to settle disputes amicably and encourage the parties to submit their case to a voluntary arbitrator - Due to Bargain Collectively in the Absence of Collective Bargaining Agreements: In the absence of voluntary arrangement providing for a more expeditious manner, it shall be the duty of employer and the representatives of the employees to bargain collectively - Meaning of Duty to Bargain Collectively: The performance of a mutual obligation to meet and convene promptly and expeditiously in good faith for the purpose of negotiating an agreement - Duty to Bargain Collectively When There Exists a Collective Bargaining Agreement: the duty is to bargain collectively shall also mean that neither party shall terminate nor modify such agreement during its lifetime. However, either party can serve a written notice to terminate or modify the agreement at least 60 days prior to its expiration date - When an Employer May File Petition: All certification cases shall be decided within 20 working days - Grievance Machinery and Voluntary Arbitration: All grievances submitted to the grievance machinery which are not settled within 7 days from the date of its submission shall automatically be referred to voluntary arbitration - Strikes and Lockouts 1. The right of legitimate labor organizations to strike and picket and of employers to lockout 2. However, no labor union may strike and no employer may declare a lockout on grounds involving inter-union and intra-union disputes 3. In case of bargaining deadlocks, the duly certified or recognized bargaining agent may file a notice of strike or the employer may file a notice of lockout with the Ministry at least 30 days before the intended date 4. In cases of unfair labor practice, the period shall be 15 days 5. Prohibited: no labor organization or employer shall declare a strike or lockout without first having bargained collectively 6. When a worker has been terminated as a consequence of any unlawful lockout shall be entitled to reinstatement with full back wages  - Foreign Involvement - All aliens as well as foreign organizations are strictly prohibited from engaging directly or indirectly in all forms of trade union activities without prejudice to normal contacts between Philippine Labor unions BOOK SIX: POST EMPLOYMENT - No employer shall not terminate the services of a regular employee except for a just cause or authorized cause. - An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges with full backwages - Probationary Employment: shall not exceed 6 months from the date the employee started working, unless covered by apprenticeship agreement. - An employee with probationary basis may be terminated due to a just cause or fail to qualify as a regular employee - An employee who is allowed to work after a probationary period shall be considered a regular employee. - An Employer may terminate an employee for any of the following causes a. Serious misconduct; willful disobedience b. Gross and habitual neglect of duties c. Fraud or willful breach d. Crime e. Other causes analogous to the foregoing - Closure of Establishment and Reduction of Personnel - The employer may terminate the employee due to the following: a. Labor-saving devices b. Redundancy c. Retrenchment to prevent losses or closing or operation of the establishment - The worker affected thereby shall be entitled to a separation pay equivalent to atleast 1 month pay or to atleast 1 month pay for every year of service - In case of retrenchment due to serious business losses or financial reverses, the separation pay shall be equivalent to 1 month or atleast ½ month pay for every year of service - A fraction of atleast 6 months shall be considered 1 whole year - Disease as Ground of Termination: An employer may terminate the services of an employee who has been found to be suffering from any disease - The employee with disease shall be paid separation pay equivalent to atleast 1 month salary or to ½ month salary for every year of service. A fraction of 6 months being considered as 1 whole year - Termination by Employee a. An employee may terminate without just cause by serving a written notice on the employer atleast 1 month in advance. The employer upon whom no such notice was served may hold the employee liable for damages b. Due to the following just causes: 1. Serious insult by the employer  2. Inhuman and unbearable treatment 3. Commission of Crime - When Employment not Deemed Terminated - The bona fide suspension of the operation of a business or undertaking for a period not exceeding 6 months - In all such cases, the employer shall reinstate the employee to his former position without the loss of seniority rights if he indicates a desire to resume work not later than 1 month from the resumption of operations ⮚ Retirement - Retirement Age: 60 years old - Compulsory retirement age: 65 years old - Those who served atleast 5 years of service in the said establishment shall be entitled for retirement pay equivalent to atleast ½ month salary every year of service - Underground Mining Employee: 50 years old of retirement age and 60 years old on compulsory retirement age - PHILRACOM: 55 years old BOOK SEVEN: TRANSITORY AND FINAL PROVISIONS (Binasa ko nalang sa mismong pdf hehe)