GUIDE QUESTIONS IN BOOK III OF LABOR CODE

Atty. Larry Piedad

BOOK III- CONDITIONS OF WORK

1. What must be present before you can apply the provisions of Book III of
LC?

- There must be an employee-employer relationship.

2. What are the sources of CONDITIONS OF WORK to be followed in

employment relationship?

3. How do we determine existence of ER-EE Relationship?

- RIGHT OF CONTROL TEST
- FOUR FOLD TEST

4. What are the factors to be considered in Right of Control Tests?

FOUR-FOLD TEST
1. RIGHT TO CONTROL THE END RESULT AND LIKEWISE THE MEANS AND
METHODS AS TO THE ACCOMPLISHMENT OF SUCH END RESULT
2. SELECTION AND ENGAGEMENT OF EMPLOYEES
3. POWER OF DISMISSAL
4. PAYMENT OF WAGES

5. What is “Two tiered Test?

- RIGHT TO CONTROL TEST AND THE ECONOMIC DEPENDENCY TEST

6. What are the evidence of employment?

- ID, VOUCHERS, PAYROLL, SSS REGISTRATION, MEMORANDUM

- OTHER EVIDENCE INCLUDE PAYROLLS, ORG. CHART, TESTIMONY OF CO-
EMPLOYEES, APPOINTMENT LETTERS, EMPLOYMENT CONTRACT,
PERSONNEL LISTS

7. What are the Classifications of Employees?

- ON THE BASIS OF TENURE

- TEMPORARY – STAYS ON THE JOB FOR A DEFINITE OR PRE-
AGREED PERIOD
- PERMANENT – ONE APPOINTED FOR A JOB AN UNDEFINED OR
INDEFINITE PERIOD. ALSO CALLED REGULAR.

- ON THE BASIS OF ENTITLEMENT TO CODAL BASIC BENEFITS

 - ON THE BASIS OF WAGE DETERMINATION

- ON THE BASIS OF SALARY COMPONENT

- DAILY PAID – SALARY COVERS ONLY THE DAY OR THE DAYS

ACTUALLY WORKED

- MONTHLY PAID – SALARY COVERS ALL THE DAYS OF THE MONTHS

INCLUDING THE REST DAYS AND HOLIDAYS

- ON THE BASIS OF RANK AND UNION MEMBERSHIP

8. Do part time employees enjoy security of tenure?

- YES. PART TIME EMPLOYEES ENJOY SECURITY OF TENURE.

9. Who has the burden of proof on the existence or non-existence

employment relationship?

- it is the EMPLOYER who has the burden of proof regarding the existence
or non-existence of ER-EE Relationship. They are required by law to keep
Payroll.

10.Take note on the group or category of employees where the SC has

already decided on the existence or non-existence of Employer-employee
relationship.

FPJ-SIS

- FILM CREW
- PIECE RATE WORKERS
- JEEPNEY, TAXI, TRUCK DRIVERS, AND BARBER
- BOUNDARY HULOG
- STREET HIRED CARGADORS/ STREET WORKERS
- INSURANCE AGENT
- SCHOOL TEACHERS

11.Who are the employees not entitled of benefits under Title 1 of Book III of
LC?

- GOVERNMENT EMPLOYEES
- MANAGERIAL EMPLOYEES - - primary duty consists of the management of
the establishment in which they are employed
- FIELD PERSONNELS - non-agricultural employees who regularly perform
their duties away from the principal place of business or branch office of
 the employer and whose actual hours of work in the field cannot be
determined with reasonable certainty
- DOMESTIC HELPERS - Not excluded if assigned to other jobs or paid by
company rather than personally
- PERSONS IN THE PERSONAL SERVICE OF ANOTHER
- MEMBERS OF THE FAMILY OF THE EMPLOYER WHO ARE DEPENDENT ON
HIM FOR SUPPORT
- WORKERS WHO ARE PAID BY RESULT

12.What are the benefits under Title 1 Book III?

MEN IN HORSES
- MEAL BREAKS / MEAL PERIODS
- NORMAL WORKING HOURS
- NIGHT SHIFT DIFFERENTIAL
- HOLIDAY / HOLIDAY PAY
- REST DAY / REST PERIOD
- SERVICE INCENTIVE LEAVE
- SERVICE CHARGE

13.What are hours worked? (See IRR on hours Worked)

- HOURS WORK SHALL INCLUDE ALL THE TIME DURING WHICH AN

EMPLOYEE IS REQUIRED TO BE ON DUTY OR TO BE AT A PRESCRIBED
WORKPLACE
- ALL TIME DURING WHICH AN EMPLOYEE IS PERMITTED OR SUFFERED TO
WORK

PRINCIPLES IN DETERMINING HOURS WORKED AS PER IRR:

1. ALL HOURS ARE HOURS WORKED WHICH THE EMPLOYEE IS REQUIRED TO

GIVE TO HIS EMPLOYER, REGARDLESS OF WHETHER OR NOT SUCH HOURS
ARE SPENT IN PRODUCTIVE LABOR OR INVOLVE PHYSICAL OR MENTAL
EXERTION

2. AN EMPLOYEE NEED NOT LEAVE THE PREMISES OF THE WORKPLACE IN

ORDER THAT HIS REST PERIOD SHALL NOT BE COUNTED, IT BEING
ENOUGH THAT HE STOPS WORKING, MAY REST COMPLETELY AND MAY
LEAVE HIS WORKPLACE, TO GO ELSEWHERE, WHETHER WITHIN OR
OUTSIDE THE PREMISES OF HIS WORKPLACE

3. IF THE WORK PERFORMED WAS NECESSARY OR IT BENEFITED THE

EMPLOYER, OR THE EMPLOYEE COULD NOT ABANDON HIS WORK AT THE
END OF HIS NORMAL WORKING HOURS BECAUSE HE HAD NO
REPLACEMENT, ALL TIME SPENT FOR SUCH WORK SHALL BE CONSIDERED
 AS HOURS WORKED, IF THE WORK WAS WITHIN THE KNOWLEDGE OF HIS
EMPLOYER OR IMMEDIATE SUPERVISOR

4. THE TIME DURING WHICH AN EMPLOYEE IS INACTIVE BY REASON OF

INTERRUPTIONS IN HIS WORK BEYOND HIS CONTROL SHALL BE
CONSIDERED TIME EITHER IF THE IMMINENCE OF THE RESUMPTION OF
WORK REQUIRES THE EMPLOYEE’S PRESENCE AT THE PLACE OF WORK OR
IF THE INTERVAL IS TOO BRIEF TO BE UTILIZED EFFECTIVELY AND
GAINFULLY IN THE EMPLOYEE’S OWN INTEREST.

14.What is work day?

- A DAY WITHIN THE 24-HOUR PERIOD WHICH COMMENCES FROM THE

TIME THE EMPLOYEE REGULARLY STARTS TO WORK
- any work in excess of the 8hrs w/in the 24-hr pd is considered as OT
regardless of whether the work covers 2 calendar days
- any work in excess of 8 hrs not falling w/in the 24-hr pd is not considered
as OT work

15.What are the rates of overtime pay premium?

1. Ordinary Working Day

 Overtime Rate: 125% of the employee’s regular hourly rate.
 Computation: Regular hourly rate × 1.25 × number of overtime hours
worked.
 Applicability: This applies when an employee works beyond the regular 8
hours on a regular working day (Monday to Saturday in most cases).
2. Rest Day or Special Non-Working Day
 Overtime Rate: 130% of the employee’s hourly rate on that day.
 Computation: Regular hourly rate × 1.30 × number of overtime hours
worked.
 Applicability: When an employee works overtime on a designated rest
day or on a special non-working day, such as a local holiday.
3. Rest Day that Falls on a Special Non-Working Day
 Overtime Rate: 150% of the employee’s hourly rate.
 Computation: Regular hourly rate × 1.50 × number of overtime hours
worked.
 Applicability: This applies if an employee works overtime on a rest day
that is also a special non-working holiday.
4. Regular Holiday
 Overtime Rate: 200% of the employee’s regular hourly rate.
 Computation: Regular hourly rate × 2.00 × number of overtime hours
worked.
 Applicability: If an employee works overtime on a regular holiday.
5. Rest Day that Falls on a Regular Holiday
 Overtime Rate: 260% of the employee’s regular hourly rate.
  Computation: Regular hourly rate × 2.60 × number of overtime hours
worked.
 Applicability: If an employee works overtime on a rest day that coincides
with a regular holiday.

16.What is the rule of overtime of seaman?

- THE CRITERION IN DETERMINING WHETHER OR NOT SAILORS ARE

ENTITLED TO OVERTIME PAY, IS NOT, WHETHER THEY WERE ON BOARD
AND CANNOT LEAVE SHIP BEYOND THE REGULAR EIGHT WORKING
HOURS A DAY, BUT WHETHER THEY ACTUALLY RENDERED SERVICE IN
EXCESS OF SAID NUMBER OF HOURS.

17.Is composite pay allowed for rank and file?

- YES
18.What is Compressed Work Week?

- IT IS AN ALTERNATIVE ARRANGEMENT WHEREBY THE NORMAL

WORKWEEK IS REDUCED TO LESS THAN SIX DAYS BUT THE TOTAL
NUMBER OF NORMAL WORK HOURS PER WEEK SHALL REMAIN AT 48
HOURS. THE NORMAL WORKDAY IS INCREASED TO MORE THAN 8 HOURS
WITHOUT CORRESPONDING OVERTIME PREMIUM.

REQUISITES:
1. THE SCHEME IS EXPRESSLY AND VOLUNTARILY SUPPORTED BY MAJORITY
OF THE EMPLOYEES AFFECTED
2. IN FIRMS USING SUBSTANCES OR OPERATING IN CONDITIONS THAT ARE
HAZARDOUS TO HEALTH, A CERTIFICATION IS NEEDED FROM AN
ACCREDITED SAFETY ORG. THAT WORK BEYOND 8 HOURS IS WITHIN THE
LIMITS OR LEVELS OF EXPOSURE SET BY DOLE’S OCCUPATIONAL SAFETY
AND HEALTH STANDARDS
3. DOLE REGIONAL OFFICE IS DULY NOTIFED.

19.What is Flexible Work Arrangement?

- REFER TO ALTERNATIVE ARRANGEMENTS OR SCHEDULES OTHER THAN

THE TRADITIONAL OR STANDARD WORK HOURS, DAYS, OR WEEK.
- FWA INCLUDE:
- - REDUCTION OF WORKDAYS
- - ROTATION OF WORKERS
- -FORCED LEAVE
- -BROKEN TIME SCHEDULE
- -FLEXI-HOLIDAY SCHEDULE

20.How do you call an arrangement where the salary integrates OT?

 - COMPOSITE PAY OR PACKAGE PAY
- Valid Requisites:
- • clear written agreement knowingly and freely entered into by the
employee, and,
- • mathematical result shows that the agreed legal wage rate and the
overtime pay, computed separately, are equal to or higher than the
separate amounts legally due.

21.What is Rest Day? Who determines the schedule of rest day?

- REST DAY IS THE DAY GIVEN TO AN EMPLOYEE FOR THEM TO HAVE the
opportunity to rest and recharge, ensuring their well-being and
productivity.
- IT SHALL BE THE DUTY OF THE EMPLOYER TO GIVE AN EMPLOYEE A REST
PERIOD OF 24 CONSECUTIVE HOURS AFTER EVERY SIX CONSECUTIVE
NORMAL WORKING DAYS.

- THE EMPLOYER DETERMINES AND SCHEDULES THE REST DAY SUBJECT TO

COLLECTIVE BARGAINING AGREEMENT AND RULES AND REGULATIONS
PRESCRIBED BY THE SOLE
- IF THE EMPLOYEE HAS A PREFERRED SCHEDULE OF REST DAY AND SUCH
PREFERENCE IS BASED ON RELIGIOUS GROUNDS, SUCH PREFERENCE
MUST BE RESPECTED

22.What is the difference between Regular Holiday and Special Holiday?

23.What the rule if an employee is absent before a regular holiday?
- EMPLOYEE WILL NOT BE ENTITLED TO PAYMENT
24.What is Double Holiday?

- THERE IS DOUBLE HOLIDAY WHEN TWO REGULAR HOLIDAY FALLS ON THE

SAME DAY.
- If an employee is required to work on a Double Holiday, they are entitled
to 300% of their daily wage for the first 8 hours of work.
- When no work is performed on a Double HOLIDAY, employees are
entitled to receive 200% OF THEIR BASIC WAGE

25.What is SPECIAL WORKING DAY?

- WORK PERFORMED ON SPECIAL WORKING DAY IS CONSIDERED WORK ON
ORDINARY WORKING DAY HENCE NO PREMIUM PAY IS REQUIRED
- For work performed on a declared Special Work Day, an employee is
entitled only to his/her daily wage, In Short para lang syang ordinary work
day walang additional premium

TAKE NOTE: RATES OF PREMIUM PAY

LEARN HOW TO COMPUTE WAGE

26.What is meal period? How long? Is it compensable?

- The meal period refers to the designated break time given to employees
during their workday for the purpose of having a meal
- MUST NOT BE LESS THAN 60 MINUTES
- GR: NOT COMPENSABLE
- XPN: IN CASES WHERE THE MEAL PERIOD IS PREDOMINANTLY SPENT FOR
THE EMPLOYER’S BENEFIT OR WHEN IT IS LESS THAN 60 MINUTES

27.What is night shift differential? Who are entitled? When is it given?

- COMPENSATION GIVEN TO AN EMPLOYEE WHO RENDERS/PERFORMS

WORK AT NIGHT TIME PARTICULARLY BETWEEN 10PM TO 6 AM.

28.What are the establishments that exempted in giving Holiday Pay and
Service Incentive Leave?

- ESTABLISHMENT REGULARLY EMPLOYING LESS THAN 10 WORKERS (1-9

EMPLOYEES)

29.Are part time workers entitled of SIL?

- YES BECAUSE THE RULES SPEAK OF THE NUMBER OF MONTHS IN A YEAR
FOR ENTITLEMENT TO SAID BENEFITS (AND NOT HOURS)
- THEY ARE ENTITLED TO FULL BENEFIT (NOT PRO-RATA)
30.Is a Kasambahay entitled of SIL?
- YES THEY ARE ENTITLED BUT THEIR SIL CANNOT BE CONVERTED TO CASH
OR CARRIED OVER TO SUCCEEDING YEARS
31.What happens if you fail to avail of SIL at the end of the year?
- IT SHALL BE COMMUTABLE TO ITS MONEY EQUIVALENT
32.Is working while sleeping possible?
- YES IT IS POSSIBLE PROVIDED IT IS SUBJECT TO INTERRUPTIONS.

33.What is Service Charges? Is it the same as TIP?

- SERVICE CHARGE IS AN ADDITIONAL COMPENSATION ADDED TO THE

CUSTOMER’S BILL, USUALLY IN HOTELS, RESTAURANTS AND SIMILAR
ESTABLISHMENTS AND IS MEANT TO COMPENSATE THE STAFF FOR THEIR
SERVICE
- IT SHALL BE DISTRIBUTED AT THE RATE OF 85% FOR THE COVERED
EMPLOYEES AND 15% FOR THE MANAGEMENT
- SHARE OF THE EMPLOYEES SHALL BE DISTRIBUTED EQUALLY AMONG
THEM
- A tip (or gratuity) is an optional payment given directly by customers to
service staff as a reward for good service. It is not mandated and varies
based on the customer’s discretion.

34.What is WAGE?

- WAGE REFERS TO THE RENUMERATIONS OR EARNINGS, HOWEVER

DESIGNATED, CAPABLE OF BEING EXPRESSED IN TERMS OF MONEY,
WHETHER FIXED OR ASCERTAINED IN TIME, TASK, PIECE, OR ON
COMMISSION BASIS, OR OTHER METHOD OF COMPUTING THE SAME
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 A
FAIR AND RESONABLE VALUE OF BOARD, LODGING, OR OTHER FACILITIES
CUSTOMARILY FURNISHED BY THE EMPLOYER TO AN EMPLOYEE AND AS
DETERMINED BY THE SOLE.

35.What is the difference between wages and salary?

- WAGE PERTAINS TO THE COMPENSATION IN MANUAL LABOR WHILE
SALARY DENOTES A HIGHER KIND OF EMPLOYMENT OR SUPERIOR
DEGREE OF SERVICE
- WAGE IS NOT GARNISHABLE, WHILE SALARY MAY BE GARNISHED
36.Does salary include sales commission?
- YES.
37.What is FACILITY?
- THOSE ARTICLES OR SERVICES THAT WILL BENEFIT THE EMPLOYEE OR HIS
DEPENDENTS OR THOSE THAT ARE NECESSARY FOR LABOR SUBSISTENCE
BUT SHALL NOT INCLUDE THE TOOLS OF THE TRADE OR ARTICLES OR
SERVICE PRIMARILY FOR THE BENEFIT OF THE EMPLOYER
38.Is uniform a facility?
39.What is the difference of FACILITY and SUPPLEMENT?
- FACILITIES ARE WAGE DEDUCTIBLE WHILE SUPPLEMENTS ARE NOT
- SUPPLEMENTS ARE EXTRA RENUMERATION OR SPECIAL PRIVILEGES OR
BENEFITS GIVEN TO EMPLOYEES OVER AND ABOVE THEIR ORDINARY
EARNINGS OR WAGES
40.What are the requisites for deducting the value of Facility?

- THERE MUST BE A PROOF SHOWING THAT SUCH FACILITY WAS

CUSTOMARILY FURNISHED BY THE TRADE
- PROVISIONS ON DEDUCTIBLE FACILITY MUST BE VOLUNTARILY ACCEPTED
IN WRITING BY THE EMPLOYEE
- SUCH FACILITY MUST BE CHARGED AT A FAIR AND REASONABLE VALUE

41.What is the difference between Salary and Gratuity?

- SALARY IS THE COMPENSATION GIVEN TO AN EMPLOYEE FOR SERVICES
RENDERED OR FOR WORK PERFORMED BY HIM
- GRATUITY IS SOMETHING GIVEN FREELY OR SOMETHING VOLUNTARILY
GIVEN. IT’S PURPOSE IS NOT INTENDED TO PAY A WORKER FOR ACTUAL
SERVICES BUT TO REWARD THEM FOR SATISFACTORY AND EFFICIENT
SERVICE
- SALARY IS MANDATORY WHILE GRATUITY IS NOT

42.What is FAIR DAYS WAGE FOR FAIR DAYS LABOR?

- a principle that underscores the concept of fair compensation for work

performed. It suggests that employees should be paid fairly for the
amount and quality of work they deliver.
- If there is no work performed by the employee there can be no wage or
pay unless the laborer was able and willing and ready to work but was
prevented by the management / EMPLOYER
- NO WORK NO PAY

43.Who can establish minimum wage?

- CONGRESS
44.What is TRIPARTITE?
- LABOR BODIES COMPOSED OF THREE SECTORS: THE GOVERNMENT,
REPRESENTATIVE OF THE EMPLOYER, AND REP. OF THE EMPLOYEE

45.What are the establishments that are exempted from giving minimum
wage?

- RETAIL AND SERVICE ESTABLISHMENTS REGULARLY EMPLOYING NOT

MORE THAN 10 WORKERS (1-10 EMPLOYEES)
- RETAIL AND SERVICES ESTABLISHMENT SERVES THE DAILY NEEDS OF THE
COMMUNITY IN WHICH IT IS LOCATED

46.Is ability to pay a defense in not complying with minimum wage?

- NO. PAYMENT OF MINIMUM WAGE IS MANDATORY AND PRESCRIBED BY
LAW AND NOT BASED ON ONE’S ABILITY TO PAY.

47.What are the requisites of the application of Non-diminution Rule?

- THERE MUST BE A SHOWING THAT SUCH GRANT OF BENEFIT TO

EMPLOYEE IS FOUNDED ON POLICY AND HAS RIPENED INTO PRACTICE
FOR A PERIOD OF TIME
- SUCH PRACTICE IS CONSISTENT AND DELIBERATE ON THE PART OF THE
EMPLOYER
- SUCH PRACTICE IS NOT DUE TO ERROR IN THE APPLICATION AND
INTERPRETATION OF LAW
- DISCONTINUANCE OF BENEFIT IS DONE UNILATERALLY BY THE EMPLOYER
48.What are the exemptions in Non-diminution Rule?

- CORRECTION OF ERROR
- NEGOTIATED BENEFITS
- RECLASSIFICATION OF POSITION
- WAGE ORDER COMPLIANCE
- BENEFITS ON REIMBURSEMENT BASIS
- CONTINGENT BENEFITS/ CONDITIONAL BONUS
- PRODUCTIVITY INCENTIVES

49.What are the kinds of workers paid by result?

- SUPERVISED PIECERATE WORKERS
- UNSUPERVISED PIECERATE WORKERS

50.Are all workers who are being paid by result not entitled of benefits under
Title 1 Book III of LC?
- NO. If the workers paid by result are SUPERVISED regarding the manner,
method and the output, THE ARE ENTITLED TO BENEFITS under Title 1
Book 3.
51.What is the form of payment of wage?

- IT SHALL BE IN THE FORM OF LEGAL TENDER.

- 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.

52.To what extent are coins issued by BSP considered to be legal tender?

- 1-, 5-, 10-, and 20-Piso coins should be accepted as payment for amounts
not exceeding Two Thousand Pesos (PHP2,000.00);
- 1-, 5- , 10-, and 25-Sentimo coins for amounts not exceeding Two Hundred
Pesos (PHP200.00) per transaction.
- The coins may be used and accepted in amounts higher than the legal
tender limits stipulated by the circular, provided that both payer and
 payee mutually agree to transact using quantities of coins above said
limits.

VERY IMPORTANT: STUDY LABOR CONTRACTING ARTICLE 106-109

53.What is the difference between Labor –only contracting and Job
Contracting?

- JOB CONTRACTING PROVIDES FOR SERVICES WHILE LABOR-ONLY

CONTRACTING PROVIDES WORKERS OR MAN POWER.
- JON CONTRACTING - Refers to an arrangement where: The contractor
carries on an independent business, AND THE contractor has substantial
capital and agreement between principal and contractor assures the
rights of employees.
- LABOR ONLY CONTRACTING - Refers to arrangement where the
contractor or subcontractor merely recruits, supplies or places workers to
perform a job or work for a principal
- ELEMENTS OF LABOR ONLY CONTRACTING:
- 1. Does not have substantial capital
- 2. Does not have investments in the forms of tools, equipment,
machineries, supervision, work premises etc.
- 3. Employees recruited are performing activities directed related to the
main business operation of the principal
- 4. Contractor/subcontractor does not exercise the right of control over
the performance of the work of the employee.

54.What is the extent of liability of principal on Labor-only contracting?

55.What is the precondition before worker’s preference of credit will arise?
- THERE MUST BE A JUDICIAL DECLARATION OF BANKCRUPTCY OR
LIQUIDATION ORDER MUST BE PRESENT
56.Is worker’s preference of credit superior to the tax claims of the
government?

- YES. Article 110 LC, as amended by RA 6715 expands worker’s preference

to cover not only unpaid wages but also other monetary claims to which
even claims of the Government must be deemed subordinate

57.What is the maximum amount of attorneys fees that can be assessed

against a culpable party in recovery of wages?
- Article 111 of the Labor Code prescribes that attorney’s fees shall not
exceed ten percent (10%) of the amount of wages recovered
58.What is the concept of attorney’s fees in Article 111?
- EXTRAORDINARY CONCEPT
59.To whom is the attorney’s fee payable to?
- ORDINARY CONCEPT – TO THE LAWYER
- EXTRAORDINARY – TO THE CLIENT
60.What governs the payment of client to the lawyer for the legal services
rendered?
- QUANTUM MERUIT – REFERS TO THE REASONABLE COMPENSATION PAID
TO A LAWYER FOR THE LEGAL SERVICES RENDERED
61.Are non-lawyers handling recovery of wages case entitled of Attorney’s
Fees?
- NO. NON LAWYERS ARE NOT ENTITLED.
- Rationale: Entitlement presupposes the existence of attorney-client
relationship. This cannot exist with non-lawyers.

62.Are PAO lawyers entitled of Attorney’s fees?

- Yes, according to jurisprudence (Cabañas v. Luzano Law Office GR No.

225803 July 02, 2018) a PAO lawyer, is entitled to attorney’s fee. The fee
shall be awarded to the PAO as a token recompense to them foe their
provision of free legal services”.
- The court notes that RA 9406 allows the receipt by the PAO of attorney’s
fee and provides that such fees shall constitute a trust fund to be used for
the special allowances of their officials and lawyers.

YES.

The laborer’s availment of the free legal services offered by the Public
Attorney’s Office (PAO) does not prevent the award of attorney’s fees
upon the successful conclusion of the litigation. (Alva v. High Capacity
Security Force, Inc., G.R. No. 203328, 08 November 2017)

In addition to the fact that attorney’s fees partake of an indemnity for

damages awarded to the employee, there is nothing that prevents a
complainant-employee and the PAO from entering into an agreement
assigning attorney’s fees in favor of the latter. It must be noted that in
2007, Congress passed R.A. No. 9406 inserting new sections in Chapter 5,
Title III, Book IV of Executive Order No. 292 (E.O. 292), or the
Administrative Code of 1987. R.A. No. 9406 sanctions the receipt by the
PAO of attorney’s fees, and provides that such fees shall constitute a trust
fund to be used for the special allowances of their officials and lawyers

63.Is there a provision in revised penal code that also penalizes force or
compulsion to employees to purchase merchandise?

- Yes, under Article 288 of the RPC. Compulsory purchase of merchandise

and payment of wages by means of token imposes the penalty of arresto
mayor or a fine ranging from Php40,000 to Php100,000 or both.

64.What is the rule on wage deduction? What are the exceptions?

- NO EMPLOYER, IN HIS OWN BEHALF OR IN BEHALD 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
- 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 BY THE INDIVIDUAL WORKER CONCERNED
- IN CASES WHERE THE EMPLOYER WAS AUTHORIZED BY LAW OR RULES
ISSUED BY SOLE

Deductions authorized by law:

1. Value of meals and other facilities
2. Insurance premiums (when Ee is insured with consent)
3. Union service fees
4. Debt due and demandable (Ee is indebted to Er)
5. Court orders/award
6. Withholding Tax
7. Salary deductions for legally established cooperatives
8. SSS, PhilHealth [medicare], and Pag-IBIG

65.What is prohibited on the part of employer who agrees to deduct from

salary by virtue of written authority from employee?

- To exceed in the amount authorized by the employee

- The labor code, in requiring an individual written authorization as a
prerequisite to wage deductions, seeks to protect the employee against
unwarranted practices that would diminish his compensation without his
knowledge and consent.

66.Can the employer reduce the workdays of the employees?

- Yes, under the Rules provided for by DOLE, the employer can reduce
workdays in the following situations:
- a. To prevent serious losses due to causes beyond employer’s control
- b. There is substantial slump in the demand of employer’s goods or
services
- c. Lack of raw materials
- YES PROVIDED IT IS DONE IN GOOD FAITH. IF IT IS DONE IN BAD FAITH OR
IS DONE ONLY TO RESTRICT THE RIGHT TO ORGANIZATION, IT IS AN
UNFAIR LABOR PRACTICE.

67.What is the rule, exceptions and limitations on requiring employees to

make deposits for loss or damage?
 - GR: 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
- XPN: 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.
- 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.

DEDUCTION FOR LOSS OR DAMAGE REQUISITES:

1. EMPLOYEE IS CLEARLY SHOWN TO BE RESPONSIBLE FOR THE LOSS OR
DAMAGE
2. EMPLOYEE IS GIVEN AMPLE OPPORTUNITY TO SHOW CAUSE WHY
DEDUCTION SHOULD NOT BE MADE
3. AMOUNT OF DEDUCTION IS FAIR AND REASONABLE AND SHALL NOT
EXCEED ACTUALL LOSS OR DAMAGE
4. DEDUCTION FROM THE EMPLOYEE’S WAGE SHALL NOT EXCEED 20% of
the EMPLOYEE’S WAGE IN A WEEK

68.What is the mandate of NWPC? Is NWPC under DOLE?

- (REMEMBER POLICY-MAKING BODY SILA)
- Quickie: NWPC is a policy-making body mandated by law to formulate
policies and guidelines on wages, income and productivity and exercises
technical and administrative supervision over RTWPBs.
- • NWPC is a key policy-making body on wages, incomes, and productivity,
mandated under Republic Act No. 6727 or the Wage Rationalization Act
(1989) and Republic Act No. 6971 or the Productivity Incentives Act of
1990 to:
- [NWPC is mandated to:]
- 1. Determine minimum wages at the regional, provincial and/or industry
levels; and
- 2. Promote productivity improvement and gainsharing schemes,
particularly among micro, small and medium enterprises. •
- NWPC formulates policies and guidelines on wages, incomes, and
productivity and exercises technical and administrative supervision over
the RTWPBs.

NWPC is under the umbrella of DOLE, the secretary of labor employment

acts as ex-officio chairperson of the commission.
The Labor Code provides that 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.
69.Who can issue Wage Order? Who can review wage order?
- WAGE ORDER IS ISSUED BY THE REGIONAL TRIPARTITE WAGES AND
PRODUCTIVITY BOARD WHILE THE NATIONAL WAGES AND PRODUCTIVITY
COMMISSION MAY REVIEW WAGE ORDER.
70.Who can issue IRR of Wage Order?
- IRR IS ISSUED BY THE REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY
BOARD
71.What is Wage Order?
- REFERS TO THE ORDER PROMULGATED BY THE BOARD PURSUANT TO ITS
WAGE FIXING AUTHORITY
- sets the minimum wage for different sectors (regional, provincial and
industry) in the Philippines.

72. What are the two ways in fixing minimum wage?

1. the fixing of determinate amount that would be added to the

prevailing statutory minimum wage

2. "the salary-ceiling method" whereby the wage adjustment is applied

to employees receiving a certain denominated salary ceiling.

73.How does RTWPB determine wage rate?

- In the performance of its wage-determining functions, the Regional Board

shall conduct public hearings/consultations, giving notices to employees’
and employers’ groups, provincial, city and municipal officials and other
interested parties.
- 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

74.When does wage order take effect?

- A WAGE ORDER SHALL TAKE EFFECT 15 DAYS AFTER ITS PUBLICATION IN
AT LEAST 1 NEWS PAPER OF GENERAL CIRCULATION
75.Is wage order appealable?

- YES. IT IS APPEALABLE TO NWPC EITHER MOTO PROPRIO OR UPON

MOTION ON THE FF GROUNDS:
1. NONCONFORMITY WITH PRESCRIBED GUIDELINES OR PROCEDURE
2. WHEN THERE IS QUESTION OF LAW
3. WHEN THERE IS GRAVE ABUSE OF DISCRETION

- APPEAL WITHIN 10 DAYS FROM DATE OF PUBLICATION

- NWPC SHOULD DECIDE SUCH APPEAL WITHIN 60 DAYS

76.What is the effect of the appeal?

- IT WILL NOT STAY THE VALIDITY OF THE WAGE ORDER UNLESS SURETY IS
FILED
77.What are the pre-conditions to make Wage Order valid?

• Public hearing/consultations
• Publication Requirement
• Compliant to the rules and guidelines set by NWPC Note: Public hearing
and publication are mandatory

78.How frequent is the issuance of Wage Order?

- WAGE ORDER MAY NOT BE DISTURBED WITHIN 12 MONTHS FROM ITS

EFFECTIVITY
- XPN: UPON SUPERVENING CONDITION SUCH AS EXTRAORDINARY
INFLARION
- - WHEN CONGRESS ISSUES A LAW INCREASING WAGES

79.What is the penalty for non-compliance with Wage Order?

80.What is wage distortion? When is there a Wage Distortion?

- REFERS TO A SITUATION WHERE AN INCREASE IN THE PRESCRIBE WAGE

RATE RESULTS IN THE ELIMINATION AND SEVERE CONTRACTION ON THE
INTENTIONAL QUANTITATIVE DIFFERENCES IN WAGE OR SALARY RATES
BETWEEN AND AMONG EMPLOYEE GROUPS AS TO EFFECTIVELY
OBLITERATES THE DISTINCTIONS EMBODIED IN WAGE STRUCTURE BASED
ON SKILLS, LENGTH OF SERVICES, OR OTHER LOGICAL BASES OF
DIFFERENTIATION.

- Elements of Wage Distortion

- 1. Existing hierarchy of positions with corresponding salary rates

- 2. Significant change in the salary rate of a lower pay class Without a
concomitant increase in the salary rate of a higher one [change must be
caused by a wage order]
- 3. Distinction between hierarchy is eliminated
- 4. Existence of distortion in the same region

81.Does wage Order affect apprenticeship and learnership program?

- Yes, according to Article 124 LC, all recognized learnership and
apprenticeship agreements shall be considered automatically modified
insofar as their wage clauses are concerned to reflect the prescribed wage
rates.
82.What is the cause of Wage distortion?
- Wage distortion can only exist where the wage adjustment is brought
about by a wage order AND not by management prerogative.
83.How is Wage Distortion being resolved?

- THROUGH VOLUNTARY NEGOTIATION OR ARBRITATION

- -It depends, whether establishment is organized or unorganized.

- Organized - if there is an existing exclusive bargaining representative

union and an existing CBA
- No exclusive bargaining union and CBA-unorganized
- If organized, there is a CBA, one of the essential parts is inclusion of
grievance procedure.

- If there is wage distortion, it must be resolved by the grievance

procedure. And if remained unresolve, it will be referred to voluntary
arbitration.
- -If unorganized, no union, no cba, the wage distortion must be referred to
national conciliation and mediation board.
- If remains unresolved, referred to labor arbiter.
- -Employer is not duty bound to maintain gap to prevent wage distortion.
- -Management right of the er to have a salary restructuring. as long as
there is no wage distortion

84.Query: There is a Wage Order issued prescribing minimum wage from

P350/day to P450/day. Can the employees bargain for additional wage
increase?
- YES. ARTICLE 125 PROVIDES FOR FREEDOM TO BARGAIN.
- Article 125. Freedom to Bargain. No Wage Order shall be construed to
prevent workers in particular firms or enterprises of industries from
bargaining for higher wages with their respective employer.”

85.Can injunction be issued against RTWPB and NWPC?

- NO. ARTICLE 126.
- “Article 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”
86.Can the Wage Order prescribe wage rate that is different from statutory
minimum wage?
- YES PROVIDED THAT THE WAGE RATE IS NOT LOWER THAN THE
STATUTORY MINIMUN WAGE RATE PRESCRIBED BY CONGRESS
- “Article 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 the Congress.”
87.What is the difference between Article 128 and Article 129?

88.Wh
o
are
the

special group of employees with special working conditions under the

Labor Code?

1. Women
2. Minors
3. Househelpers
4. Homeworkers
5. Night workers

89.What are the special facilities prescribed for women?

“Article 130 (previously 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:
a. 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;
 b. To establish separate toilet rooms and lavatories for men and women
and provide at least a dressing room for women;
c. To establish a nursery in a workplace for the benefit of the women
employees therein; and
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.

90.What is the penalty for discriminating women in workplace?

Art. 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:

a. Payment of a lesser compensation, including wage, salary or other form
of remuneration and fringe benefits, to a female employees as against a
male employee, for work of equal value; and
b. Favoring a male employee over a female employee with respect to
promotion, training opportunities, study and scholarship grants solely on
account of their sexes.

Criminal liability for the willful commission of any unlawful act as

provided in this Article or any violation of the rules and regulations issued
pursuant to Section 2 hereof shall be penalized as provided in Articles 288
and 289 of this Code:
Provided, That the institution of any criminal action under this provision
shall not bar the aggrieved employee from filing an entirely separate and
distinct action for money claims, which may include claims for damages
and other affirmative reliefs. The actions hereby authorized shall proceed
independently of each other. (As amended by Republic Act No. 6725, May
12, 1989)

91.What is the minimum employable age?

- 15 YEARS OLD
92.Can child below 15 years of age be employed?

- GR: NO
- XPN: WHEN HE WORKS DIRECTLY UNDER THE SOLE RESPONSIBILITY OF
HIS PARENTS OR GUARDIAN AND HIS EMPLOYMENT DOES NOT
INTERFERE WITH HIS SCHOOLING
- PROVIDED THAT EMPLOYMENT IS NOT HAZARDOUS

93.What is domestic service?

 - SERVICES IN THE EMPLOYER’S HOME WHICH IS USUALLY NECESSARY OR
DESIRABLE FOR THE MAINTENANCE AND ENJOYMENT THEREOF
- INCLUDES MAINTENANCE OF THE PERSONAL COMFORT AND
CONVENIENCE OF THE MEMBERS OF THE EMPLOYER’S HOUSEHOLD
INCLUDING SERVICES OF FAMILY DRIVERS

94.What is the difference between homeworkers and house helpers?

- The term "house helper" as used herein is synonymous to the term

"domestic servant" and shall refer to any person, whether male or
female, who renders services in and about the employer's home and
which services are usually necessary or desirable for the maintenance and
enjoyment thereof, and ministers exclusively to the personal comfort and
enjoyment of the employer's family.
- While a homeworker is one who performs in or about his home any
processing of goods or materials, in whole or in part which have been
furnished directly or indirectly by an employer and thereafter to be
returned to the latter.

95.What is the difference between Parental Leave and Paternity Leave?

- PATERNITY LEAVE - refers to the legally mandated leave credits extended

to married male employees “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
- PATERNAL LEAVE –

Paternity leave benefits are leave credits extended to married male employees
“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” (Sec. 3, R.A.
8187). The benefit consists of seven (7) days of leave credits with full pay.

Parental Leave. (Solo Parent 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. [Solo Parent Welfare Act; Republic Act No. 8972]