LABOR STANDARDS – 2C

POINTERS FOR MIDTERMS

1. Cases:
a. Serrano vs. Gallant
 About non-impairment of contract (pages 297-298)
b. Sameer vs. Joy Cabiles
 About an OFW who was illegally dismissed (page 293-294)

2. Problem about Articles 106 to 109

ART. 106. Contractor or Subcontractor. – Whenever an employer enters into a contract with another
person for the performance of the former’s work, the employees of the contractor and of the latter’s
subcontractor, if any, shall be paid in accordance with the provisions of this Code.

In the event that the contractor or subcontractor fails to pay the wages of his employees in accordance
with this Code, the employer shall be jointly and severally liable with his contractor or subcontractor to
such employees to the extent of the work performed under the contract, in the same manner and extent
that he is liable to employees directly employed by him.

The Secretary of Labor and Employment may, by appropriate regulations, restrict or prohibit the
contracting-out of labor to protect the rights of workers established under this Code. In so prohibiting or
restricting, he may make appropriate distinctions between labor- only contracting and job contracting as
well as differentiations within these types of contracting and determine who among the parties involved
shall be considered the employer for purposes of this Code, to prevent any violation or circumvention of
any provision of this Code.

There is "labor-only" contracting where the person supplying workers to an employer does not have
substantial capital or investment in the form of tools, equipment, machineries, work premises, among
others, and the workers recruited and placed by such person are performing activities which are directly
related to the principal business of such employer. In such cases, the person or intermediary shall be
considered merely as an agent of the employer who shall be responsible to the workers in the same
manner and extent as if the latter were directly employed by him.

ART. 107. Indirect Employer. – The provisions of the immediately preceding article shall likewise apply
to any person, partnership, association or corporation which, not being an employer, contracts with an
independent contractor for the performance of any work, task, job or project.

ART. 108. Posting of Bond. – An employer or indirect employer may require the contractor or
subcontractor to furnish a bond equal to the cost of labor under contract, on
condition that the bond will answer for the wages due the employees should the contractor or
subcontractor, as the case may be, fail to pay the same.

ART. 109. Solidary Liability. – The provisions of existing laws to the contrary notwithstanding, every
employer or indirect employer shall be held responsible with his contractor or subcontractor for any
violation of any provision of this Code. For purposes of determining the extent of their civil liability under
this Chapter, they shall be considered as direct employers.

3. Problem about Article 128

ART. 128. Visitorial and Enforcement Power. – (a) The Secretary of Labor and Employment or his duly
authorized representatives, including labor regulation officers, shall have access to employer’s records
and premises at any time of the day or night whenever work is being undertaken therein, and the right to
copy therefrom, to question any employee and investigate any fact, condition or matter which may be
necessary to determine violations or which may aid in the enforcement of this Code and of any labor law,
wage order or rules and regulations issued pursuant thereto.
(b) Notwithstanding the provisions of Articles 129 and 217 of this Code to the contrary, and in cases
where the relationship of employer-employee still exists, the Secretary of Labor and Employment or his
duly authorized representatives shall have the power to issue compliance orders to give effect to the labor
standards provisions of this Code and other labor legislation based on the findings of labor employment
and enforcement officers or industrial safety engineers made in the course of inspection. The Secretary or
his duly authorized representatives shall issue writs of execution to the appropriate authority for the
enforcement of their orders, except in cases where the employer contests the findings of the labor
employment and enforcement officer and raises issues supported by documentary proofs which were not
considered in the course of inspection.

An order issued by the duly authorized representative of the Secretary of Labor and Employment under
this Article may be appealed to the latter. In case said order involves a monetary award, an appeal by the
employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding
company duly accredited by the Secretary of Labor and Employment in the amount equivalent to the
monetary award in the order appealed from.

(c) The Secretary of Labor and Employment may likewise order stoppage of work or suspension of
operations of any unit or department of an establishment when non-compliance with the law or
implementing rules and regulations poses grave and imminent danger to the health and safety of workers
in the workplace. Within twenty-four hours, a hearing shall be conducted to determine whether an order
for the stoppage of work or suspension of operations shall be lifted or not. In case the violation is
attributable to the fault of the employer, he shall pay the employees concerned their salaries or wages
during the period of such stoppage of work or suspension of operation.

(d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render ineffective
the orders of the Secretary of Labor and Employment or his duly authorized representatives issued
pursuant to the authority granted under this Article, and no inferior court or entity shall issue temporary or
permanent injunction or restraining order or otherwise assume jurisdiction over any case involving the
enforcement orders issued in accordance with this Article.

(e) Any government employee found guilty of violation of, or abuse of authority, under this Article shall,
after appropriate administrative investigation, be subject to summary dismissal from the service.

(f) The Secretary of Labor and Employment may, by appropriate regulations, require employers to keep
and maintain such employment records as may be necessary in aid of his visitorial and enforcement
powers under this Code.

4. Problem about today’s lecture (March 24, 2023)

 Specific Benefits
1. Holiday pay – Article 94, pages 458 to 463
a. Exception: Article 82
b. List of 12 legal holidays – you will be paid 100%, with pneumonic on pages 437 to
438 = NA LIBRE C MEG
c. Holiday pay refers to the payment of the regular daily wage for any unworked regular
holiday
2. Premium pay
a. Article 93, par. c
b. See page 438
3. Overtime pay – Article 87
4. Night shift differential pay – Article 86
a. 10PM
5. Service charges – Article 96, as amended by RA 11360
a. Versus Tips – to ensure prompt service
 6. Service Incentive Leave – Article 95
7. Expanded Maternity Benefits Law
a. RA 8282, as amended by RA 11210
b. 105 days and additional 15 days with full pay in case the female employee qualifies
as solo parent under RA 8972
8. Paternity benefits
a. Four deliveries of the employee’s lawful wife
b. 7 calendar days
9. Parental leave for solo parents – RA 8972
a. 7 working days every year, with full pay
10. Leave for victims of VAWC – RA 9262
a. 10 days with full pay
b. Not convertible to cash and shall not be cumulative
c. Magna carta leave – 2 months with full pay
11. OB-GYNE Leave – RA 9710
a. 2 months with full pay based on gross monthly compensation
12. 13th month pay – PD 851
a. MIDTERM: Take Note – Article 100
b. ART. 100. Prohibition Against Elimination or Diminution of Benefits. – Nothing in this
Book shall be construed to eliminate or in any way diminish supplements, or other
employee benefits being enjoyed at the time of promulgation of this Code.
13. Separation Pay – Articles 298-299
14. Retirement Pay
15. Attorney’s Fees

5. Codal – Book 1

 Pre-employment
 Title I – Recruitment and Placement of Workers
o Chapter I – General Provisions
o Chapter II – Regulation of Recruitment and Placement Activities
o Chapter III – Miscellaneous Provisions
 Title II – Employment of Non-resident Aliens
 Articles 12 to 42

6. Textbook – Pages 253 to 298 on Recruitment

 The Law and Cases on Recruitment

 Definitions of (Art. 13)
o Worker
o Recruitment and placement
o License
o Authority
 Ban on Direct Hiring (Art. 18)
 Citizenship Requirement (Art. 27)
 Prohibited Practices (Art. 34)
 Regulatory Power (Art. 36)
 Visitorial Power (Art. 37)
 Illegal Recruitment (Art. 38)
 Prohibition Against Transfer of Employment (Art. 41)
 Submission of List (Art. 42)
 Migrant Workers Act of 1995 (RA No. 8042)
o Amended by RA No. 10022
 Regulation of Recruitment and Migration and Enforcement of Laws
 o Salient changes
 Illegal Recruitment – Any act of CHAPTER CUPS
o Labor Code: SOBIGAWIFEFa
o RA 8042: AFaFa
o RA 10022: AUSSEER
 Economic Sabotage
 Illegal dismissal of OFWs and Money Claims of OFWs (See case of Sameer and
Serrano)

7. Codal – Book 3

 Conditions of Employment
 Title I – Working Conditions and Rest Periods
o Chapter I – Hours of Work
o Chapter II – Weekly Rest periods
o Chapter III – Holidays, Service Incentive Leaves and Service Charges
 Title II – Wages
o Chapter I – Preliminary Matters
o Chapter II – Minimum Wage Rates
o Chapter III – Payment of Wages
o Chapter IV – Prohibition Regarding Wages
o Chapter V – Wage Studies, Wage Agreements, and Wage Determination
o Chapter VI – Administration and Enforcement
 Title III – Working Conditions for Special Groups of Employees
o Chapter I – Employment of Women
o Chapter II – Employment of Minors
o Chapter III – Employment of Househelpers
o Chapter IV – Emplpyment of Homeworkers
o Chapter V – Employment of Night Workers

8. Textbook – Pages 401 to 506

 Wages (401)
 The Law on Minimum Wage-Fixing (411)
 The Law on Distortions (412)
 Whether Sales Commission is part of Wage (414)
 The law of crediting CBA increases viz-a-vis Wage Orders/Law (417)
 Laws on Regulations and Prohibitions re: Wages (418)
 Law on Deductions (421)
 Law on Non-diminution of salaries and benefts (422)
 Law on Management Prerogatives (426)
 Hours of Work and Kinds of Managers (430-431)
 Rule on Flexi-time and Compressed Work Week (433)
 How to determine hours worked (434)
 Law on holidays and special days (437)
 Minimum Wage (446)
 Holiday Pay (458)
 Premium Pay (463)
 Overtime Pay (467)
 Night Shift Differential (470)
 Service Charges (474)
 Service Incentive Leave (475)
 Maternity Leave (478)
 Paternity Leave (486)
 Parental Leave for Solo Parents (488)
 Law for Victims of VAWC (491)
 Special Leave for Women (492)
 13th Month Pay (494)
 Separation Pay (499)
 Retirement Pay (501)
 ECC (506)