CLASSIFICATION OF LABOR LAW

1. Labor Standards
2. Labor Relations
3. Social Legislation
SOURCES OF LABOR LAWS
1. Labor Code and other related special legislation
2. Contract
3. Collective Bargaining Agreement
4. Past practices
5. Company policies

RIGHT OF AN EMPLOYER
1. CONDUCT BUSINES
2. PRESCRIBE RULES
3. SELECT AND HIRE EMPLOYEES
4. TRANSFER OR DISCHARGE EEs
5. RETURN OF INVESTMENT AND EXPANSION OF BUSINESS
LIMITATION OF MANAGEMENT PREROGATIVES
1. Law
2. Contract or CBA
3. General Principles of Fair Play and Justice
EXCEPTIONS TO THE APPLICABILITY OF THE LABOR CODE
1. Government EEs
2. EEs of govt corporations w/ original charter
3. Foreign Governments
4. International Agencies/ EEs of inter-governmental or international organizations
5. Corporate officers
6. EEs of local water districts

kinds of labor disputes
1. Labor standard disputes
a. Compensation
b. Benefits
c. Working Conditions

2. Labor relations disputes
a. Organizational right disputes/ULP
b. Representation disputes
c. Bargaining disputes
d. Contract administration or personnel policy disputes
e. Employment tenure disputes
3. Inter-union dispute
4. Intra-union dispute
5. Rights disputes
6. Interest disputes
7. Contractnegotiation disputes

grounds for revocation of license
1. Incurring an accumulated 3 counts of suspension by an agency based on final and executory orders within the period of validity of its license
2. Violations of the conditions of license
3. Engaging in acts of misrepresentation for the purpose of securing a license or renewal
4. Engaging in the recruitment or placement of workers to jobs harmful to the public health or morality or to the dignity of the country. (Sec. 3, Rule
I, Book VI, Rules and Regulations Governing Overseas Employment)

grounds for suspension or cancellation of license
1. Prohibited acts under Art. 34
2. Publishing job announcements w/o POEAs approval
3. Charging a fee which may be in excess of the authorized amount before a worker is employed
4. Deploying workers w/o processing through POEA
5. Recruitment in places outside its authorized area. (Sec. 4, Rule II, Book IV, POEA Rules)

persons prohibited from engaging the business of recruiting migrant workers
1. Unlawful for any official or Ee of the:
a. DOLE
b. POEA
c. Overseas Workers Welfare Administration (OWWA)
d. DFA
e. Other govt agencies involved in the implementation of this Act
2. Their relatives within the 4th civil degree of consanguinity or affinity, to engage, directly or indirectly in the business of recruiting migrant
workers. (Sec. 8, R.A. 8042)

ELEMENTS OF Illegal Recruitment
A: 1. Offender is a nonlicensee or nonholder of authority to lawfully engage in the recruitment/placement of workers
2. Offender undertakes:
a. Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contact services,
promising or advertising for employment, locally or abroad, whether for profit or not (Art. 13[b]); or
b. Any of prohibited practices under Art. 34

PROHIBITED PRACTICES IN recruitment/placement (Art. 34.)?
A: 1. Furnishing or publishing any false notice/information/document related to recruitment/employment
2. Failure to file reports required by SLE
3. Inducing or attempting to induce a worker already employed to quit his employment in order to offer him another unless the transfer is
designed to liberate a worker from oppressive terms and conditions
4. Recruitment/placement of workers in jobs harmful to public health or morality or to the dignity of the country
5. Engaging directly or indirectly in the management of a travel agency
6. Substituting or altering employment contracts without approval of DOLE
7. Charging or accepting any amount greater than that specified by DOLE or make a worker pay any amount greater than actually received by
him
8. Committing any act of misrepresentation to secure a license or authority
9. Influencing or attempting to influence any person/entity not to employ any worker who has not applied of employment through his agency
10. Obstructing or attempting to obstruct inspection by SLE or by his representatives
11. Withholding or denying travel documents from applicant workers before departure for monetary considerations other than authorized bylaw
12. Granting a loan to an OFW which will be used for payment of legal and allowable placement fees
13. Refusing to condone or renegotiate a loan incurred by an OFW after his employment contract has been prematurely terminated through no
fault of his or her own
14. For a suspended recruitment/manning agency to engage in any kind of recruitment activity including the processing of pending workers'
applications; and
15. For a recruitment/operating agency or a foreign principal/ Er to pass on the OFW or deduct from his or her salary the payment of the cost of
insurance fees, premium or other insurance related charges, as provided under the compulsory worker's insurance coverage
16. Imposing a compulsory and exclusive arrangement whereby an OFW is required to:
a. Avail a loan only from specifically designated institutions, entities or persons
b. To undergo health examinations only from specifically designated medical, entities or persons, except seafarers whose medical examination
cost is shouldered by the shipowner
c. To undergo training of any kind only from designated institutions, entities or persons, except for recommendatory trainings mandated by
principals/shipowners. (Sec. 6, R.A. 10022)

PRINCIPAL FUNCTIONS OF THE POEA
1. Protection of the right of Filipino workers to fair and equitable employment practices
2. Regulation of private sector participation in the recruitment and overseas placement of workers by setting up a licensing and registration
system
3. Deployment of Filipino workers through govt to govt hiring
4. Formulation, implementation, and monitoring of overseas employment of Filipino workers taking into consideration their welfare and
domestic manpower requirements
5. Shall inform migrant workers not only of their rights as workers but also of their rights as human beings, instruct and guide the workers how
to assert their rights and provide the available mechanism to redress violation of their rights. (Sec. 14, R.A. 10022)
6. Implementation, in partnership with other law enforcement agencies, of an intensified program against illegal recruitment activities. (Sec.14,
R.A. 10022)

MINIMUM CONDITIONS/ provisions of overseas employment contracts
1. Guaranteed wages for regular hours and overtime, not lower than the minimum wage prescribed in all of the ff:
a. The host country
b. Bilateral agreements or international conventions ratified by the host country and the Phils.
c. The Phils.
2. Free transportation to and from the worksite or offsetting benefit
3. Free food and accommodation or offsetting benefit
4. Just/authorized causes of termination of the contract or services of the worker
Note: An agreement that diminishes the Ees pay and benefits as contained in a POEA-approved contract is void, unless such subsequent agreement
is approved by the POEA.

Regulatory and adjudicatory functions of the POEA
1. Regulatory It regulates the private sector participation in the recruitment and overseas placement of workers through its licensing and
registration system.
2. Adjudicatory
a. Administrative cases involving violations of licensing rules and regulations and registration of recruitment and employment agencies or
entities
b. Disciplinary action cases and other special cases which are administrative in character involving employers, principals, contracting partners
and Filipino migrants

GROUNDS for disciplinary action of OFWs
A: Under R.A. 8042, these are:
1. Prostitution
2. Unjust refusal to depart for the worksite
3. Gunrunning or possession of deadly weapons
4. Vandalism or destroying company property
5. Violation of the laws and sacred practices of the host country and unjustified breach of employment contract
6. Embezzlement of funds of the company or fellow worker entrusted for delivery to relatives in the Phils.
7. Creating trouble at the worksite or in the vessel
8. Gambling
9. Initiating or joining a strike or work stoppage where the laws of the host country prohibits strikes or similar actions
10. Commission of felony punishable by Phils. laws or by the host country
11. Theft or robbery
12. Drunkenness
13. Drug addiction or possession or trafficking of prohibited drugs
14. Desertion or abandonment


matters outside the jurisdiction of the POEA
1. Foreign judgments such claim must be brought before regular courts. POEA is not a court; it is an administrative agency, exercising
adjudicatory or quasi-judicial functions.
2. Torts falls under the provisions of the Civil Code.

field personnel
A: They are:
1. Non-agricultural employees
2. Who regularly perform their duties
3. Away from the principal place of business or branch office of the employer; and
4. whose actual hours of work in the field cannot be determined with reasonable certainty.

3 groups of employees (Ees) under the LC
1. Managerial Ee One who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire, transfer,
suspend, layoff, recall, discharge, assign or discipline Ees.
2. Supervisory Ee those who in the interest of the Er, effectively recommend such managerial actions if the exercise of such authority is not
merely routinary or clerical in nature but requires the use of independent judgment.
3. RankandFile Ee all Ees not falling within any of the above definitions. (Art. 212[m])

standards /criteria for minimum wage setting

a) The demand for living wages
b) Wage adjustment vis-a-vis the consumer price index
c) The cost of living and changes or increases therein
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 the 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

conditions for entitlement to paternity leave?
The male Ee is;
1. Legally married to, and is cohabiting with the woman who delivers the baby
2. Ee of private or public sector;
3. Only for the first 4 deliveries of legitimate spouse with whom he is cohabiting; and
4. Notify his Er of the pregnancy of his legitimate spouse and the expected date of such delivery

conditions for entitlement of parental leave
1. He or she must fall among those referred to as solo parent
2. Must have the actual and physical custody of the child or children
3. Must have at least rendered service of one year to his or her employer
4. He or she must remain a solo parent
solo parent entitled to parental leave
- Any individual who falls under any of the ff. categories:
1. A woman who gives birth as a result of rape and other crimes against chastity even without a final conviction of the offender,
provided, That the mother keeps and raises the child;
2. Parent left solo or alone with the responsibility of parenthood due to:
a. Death of spouse;
b. Detention or service of sentence of spouse for a criminal conviction for at least 1 yr;
c. Physical and/or mental incapacity of spouse
d. Legal separation or de facto separation from spouse for at least 1 yr as long as he/she is entrusted with the custody of the
children;
e. Nullity or annulment of marriage as decreed by a court or by a church as long as he/she is entrusted with the custody of the
children;
f. Abandonment of spouse for at least 1 yr;
3. Unmarried mother/father has preferred to keep and rear his or her child/children instead of:
4. Any family member who assumes the responsibility of head of family as a result of the:
a. death,
b. abandonment,
c. disappearance or
d. prolonged absence of the parents or solo parent.

form of 13
th
month pay
- It is given in the form of:
1. Christmas Bonus
2. Midyear Bonus
3. Profit Sharing Scheme
4. Other Cas h bonuses amounting to not less than 1/12 of its basic salary
Note: It must always be in the form of a legal tender.


policy of the State in enacting the AntiSexual Harassment law?
The State shall:
1. Value the dignity of every individual
2. Enhance the development of it human resources
3. Guarantee full respect for human rights and
4. Uphold the dignity of workers, Ee, applicants for employment, students or those undergoing training, instruction or education.


Persons liable for sexual harassment?
A: In a work, education or trainingrelated environment sexual harassment may be committed by an:
1. Ee
2. Manager
3. Supervisor
4. Agent of the (Er)
5. Teacher, instructor, professor
6. Coach, trainer, or
7. Any other person who, having authority, influence or moral ascendancy over another in a work or training or education environment:
a. Demands
b. Requests or
c. Requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the
object of R.A. 7877. (Sec. 3)

KINDS OF SEXUAL HARASSMENT
1. In a workrelated or employment environment:
A. The sexual favor is made as a condition in the hiring or in the employment, reemployment or continued employment of said individual, or
in granting said individual favorable compensation, terms, conditions, promotions, or privileges; or the refusal to grant the sexual favor
results in limiting, segregating or classifying the Ee which in a way would discriminate, deprive or diminish employment opportunities or
otherwise adversely affect said Ee;
b. The above acts would impair the Ees rights or privileges under existing labor laws; or
c. The above acts would result in an intimidating, hostile, or offensive environment for the Ee.
2. In an education or training environment:
a. Against one who is under the care, custody or supervision of the offender;
b. Against one whose education, training, apprenticeship or tutorship is entrusted to the offender;
c. Sexual favor is made a condition to the giving of a passing grade, or the granting of honors and scholarships, or the payment of a stipend,
allowance or other benefits, privileges, or considerations; or
d. Sexual advances result in an intimidating, hostile or offensive environment for the student, trainee or apprentice.

WHO MAY COMMIT SEXUAL HARASSMENT (SAME2- TIP-C-TAIM D)
1. Supervisor
2. Agent of the ER
3. Manager
4. Employer
5. Employee
6. Teacher
7. Instructor
8. Professor
9. Coach
10. Trainor
11. Any other person having AIM over another
Authority
Influence
Moral Ascendancy
12. Any person who directs/induces another to commit any act of sexual harassment


WHEN SEXUAL HARASSMENT PUNISHABLE
1. Work related
2. Educated Related
3. Training related

REGULATORY POWERS OF SLE
1. Restrict and regulate the recruitment and placement activities of all agencies
2. Issue orders and promulgate rules and regulations

VISITORIAL POWER
- this includes:
1. Access to employers records and premises at any time of the day or night, whenever work is being undertaken
2. To copy from said records
3. 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 the Labor Code and of any labor law, wage order, or rules and regulation issued pursuant thereto.

WORKERS PAID BY RESULTS
- They are:
1. Paid based on the work completed; and
2. Not on the time spent in working
3. Including those who are paid on piecework, takay, pakiaw, or task basis if their output rates are in accordance with the standards
prescribed.

HAZARDOUS WORKPLACES

1. Nature of work exposes the workers to dangerous environmental elements, contaminants or work conditions
2. Workers are engaged in construction work, logging, fire-fighting, mining, quarrying, blasting, stevedoring, dock work, deep-sea fishing, and
mechanized farming
3. Workers are engaged in the manufacture or handling of explosives and other pyrotechnic products
4. Workers use or are exposed to heavy or power-driven tools

WORST FORMS OF CHILD LABOR
1. All forms of slavery (Anti-Trafficking of Persons Act of 2003)
2. Child Pornography
3. Drug trafficking
4. Child models in all commercials or advertisements promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts and
violence; and
5. Work which, by its nature is hazardous or likely to be harmful to the health, safety or morals of children.

PERSONS WHO CAN FILE A COMPLAINT FOR UNLAWFUL ACTS COMMITTED AGAINST CHILDREN
1. Offended party
2. Parents or guardians
3. Ascendants or collateral relatives within the 3rd degree of consanguinity
4. Officer, social worker or representative of a licensed child-caring institution
5. Officer or social worker of DSWD
6. Barangay chairman of the place where the violation occurred, where the child is residing or employed
7. At least 3 concerned, responsible citizens where the violation occurred

DOMESTIC/HOUSEHOLD SERVICE
1. Services in the Ers home
2. Usually necessary or desirable
3. For the maintenance and employment thereof
4. Includes ministering to the personal comfort and convenience of the members of the Ers household
5. Including services of family drivers
RIGHTS OF HOUSEHELPERS
- 1. Original contract of domestic service shall not last for more than 2 years but it may be renewed by the parties. (Art. 142)
2. Entitled to minimum wage in addition to lodging, food, and medical attendance. (Art. 144)
3. Employment contract should be reviewed every 3 years with the end view of improving the terms and conditions of employment. (Art. 143)
4. SSS benefits for those who are receiving at least P1,000 per month. (Art. 143)
5. Non-assignment to a work in a commercial, industrial or agricultural enterprise at a wage or salary rate lower than that provided for
agricultural or non agricultural workers. (Art. 145)
6. Ees under 18 years of age shall be given opportunity for at least elementary education. The cost of education shall be part of the HHs
compensation, unless otherwise stipulated. (Art 146)
7. Should be treated in a just and humane manner. (Art. 147)
8. Not to be treated with physical violence (Art. 147)
9. Suitable and sanitary living headquarters as well as adequate food and medical attendance. (Art. 148)
10. Termination of employment should be
a. upon expiration of term of employment, or
b. based on just cause (Art. 149)
11. Indemnity for unjust termination of service
12. Employment certification as to nature and duration of service and efficiency and conduct of househelper.

MINIMUM WAGE FOR HOUSEHELPERS
A: 1. Meto Manila - P 800 / month
2. Other Chartered Cities or First Class Municipalities - P 650 / month
3. In other Municipalities - P 550 / month
Note: The minimum cash wage rates shall be paid to the househelpers in addition to lodging, food and medical attendance.

PARTIES TO APPRENNTICESHIP AGREEMENT
1. The employer or his agent, or
2. An authorized representative of any of the recognized organizations, associations or groups, and
3. The apprentice.

PERSONS WHO MAY TERMINATE APPRENTICESHIP AGREEMENT
A: 1. Either party may terminate an agreement after the probationary period but only for a valid cause.
2. It may be initiated by either party upon filing a complaint or upon DOLEs own initiative.

PROCEDURE for the termination of apprenticeship
The party terminating shall:
1. Serve a written notice on the other at least 5 days before actual termination,
2. Stating the reason for such decision; and
3. A copy of said notice shall be furnished the Apprenticeship Division concerned.
LEARNERS
1. They are persons hired as trainees in semi-skilled and other industrial occupations
2. Which are nonapprenticeable and
3. Which may be learned through practical training on the job in a relatively short period of time
4. Which shall not exceed 3 months
5. Whether or not such practical training is supplemented by theoretical instructions. (Sec. 1a, Rule VII, Book II, IRR)





HANDICAPPED WORKERS (HW)
A: Those whose earning capacity is impaired by:
1. Physical deficiency
2. Age
3. Injury
4. Disease
5. Mental deficiency
6. Illness

RIGHTS AND PRIVILEGES OF DISABLED WORKERS
A: 1. Equal opportunity for employment
2. Sheltered employment (the govt shall endeavour to provide them work if suitable employment for disabled persons cannot be found through
open employment)
3. Apprenticeship
4. Vocational rehabilitation (means to develop the skills and potentials of disabled workers and enable them to compete in the labor market)
5. Vocational guidance and counseling

FACTORS TO determine the existence of an Er-Ee relationship/FOUR FOLD TEST/ER-EE RELATIONSHIP
The fourfold test:
1. Selection and engagement of the employee;
2. Payment of wages;
3. Power of dismissal; and
4. Power of control. (The Labor Co de with Comments and Cases
2007, Azucena, Vol I, p.158)




characteristics of probationary employment
A: 1. It is an employment for a trial period;
2. It is a temporary employment status prior to regular employment;
3. It arises through a contract with the following elements:
a. The employee (Ee) must learn and work at a particular type of work
b. Such work calls for certain qualifications
c. The probation is fixed
d. The Er reserves the power to terminate during or at the end of the trial period
e. And if the Ee has learned the job to the satisfaction of the Er, he becomes a regular Ee.

GROUNDS FOR TERMINATION OF PROBATIONARY EMPLOYMENT
1. Just/authorized causes
2. When he fails to qualify as a regular Ee in accordance with reasonable standards made known by the employer (Er) to the Ee at the time of
his engagement (ICMC v. NLRC, G.R. No. 72222, Jan. 30, 1989)

requisites in determining whether an employee (Ee) is a project Ee
1. The project Ee was assigned to carry out a specific project or undertaking, and
2. The duration and scope of which were specified at the time the Ee was engaged for that project. (Imbuido v. NLRC, G.R. No. 114734,
Mar. 31, 2000)
3. The Ee must have been dismissed every after completion of his project or phase
4. Report to the DOLE of Ees dismissal on account of completion of contract (Policy Inst. No. 20; D.O. 19 *1997+)

INDICIA OF JOB CONTRACTING
Specifically, there is job contracting where:
1. The contractor carries on an independent business and undertakes the contract work on his own account under his own responsibility
according to his own manner and method, free from the control and direction of his employer or principal in all matters connected with
the performance of the work except as to the results thereof; and
2. The contractor has substantial capital or investment in the form of tools, equipment, machineries, work premises, and other materials
which are necessary in the conduct of his business.

parties in contracting and subcontracting
1. Contractor/subcontractor Refers to any person engaged in a legitimate contracting or subcontracting arrangement.
2. Contractual Ee One who is employed by a contractor or subcontractor to perform or complete a job, work, or service pursuant
to an arrangement between the latter and a principal. (D.O. 1802)
3. Principal Any Er who puts out or farms out a job, service, or work to a contractor

rights of a contractual Ee (CEe)?
A: They shall be entitled to all the rights and privileges due to a regular Ee as provided in the LC, as amended to include the ff:
1. Safe and healthful working conditions
2. Service Incentive Leave, rest days, OT pay, holiday pay, 13
th
month pay and separation pay
3. Social security and welfare benefits;
4. Selforganization, CBA and peaceful concerted actions
5. Security of tenure (Sec. 8, DO 1802)

conditions before permitting job contracting?
1. The labor contractor must be duly licensed by the appropriate Regional Office of the DOLE
2. There should be a written contract between the labor contractor and his clientEr that will assure the Ees at least the minimum labor
standards and benefits provided by existing laws.
Note: The Ees of the contractor or subcontractor shall be paid in accordance with the provisions of the LC. (Art. 106)

grounds for delisting of contractors or subcontractors
1. Nonsubmission of contracts between the principal and the contractor or subcontractor when required to do so;
2. Nonsubmission of annual report;
3. Findings through arbitration that the contractor or subcontractor has engaged in laboronly contracting and other prohibited activities;
4. Noncompliance with labor standards and working conditions. (Sec. 16, D.O. 1802)

just causes for termination (Art. 282, LC)?
1. Serious misconduct or willful disobedience by the employee (Ee) of the lawful orders of his employer (Er) or representative in connection
with his work
2. Gross and habitual neglect by the Ee of his duties
3. Fraud or willful breach by the Ee of the trust reposed in him by his Er or duly organized representative
4. Commission of a crime or offense by the Ee against the person of his Er or any immediate member of his family or his duly authorized
representative.
5. Other causes analogous to the foregoing
Note: The burden of proving that the termination was for a valid or authorized cause shall rest on the Er. (Art.277[b])

examples of serious misconduct.
1. Sexual harassment
2. Fighting within the company premises
3. Uttering obscene, insulting or offensive words against a superior
4. Falsification of time records
5. Gross immorality

guidelines to determine the validity of termination
Gravity of the offense
1. Position occupied by the employee
2. Degree of damage to the employer
3. Previous infractions of the same offense
4. Length of Service
REQUIREMENTS for an act to be included in analogous cases of just causes of termination
Must be due to the voluntary and/or willful act or omission of the employee (Nadura v. Benguet Consolidated, G.R. No. L17780, Aug.
24, 1962), e.g.:
1. Violation of company rules and regulations
2. Drunkenness
3. Gross inefficiency
4. Illegally diverting employers products
5. Failure to heed an order not to join an illegal picket
6. Violation of safety rules and code of discipline

authorized causes of termination by the employer (Er)
1. Installation of laborsaving devices (automation/robotics)
2. Redundancy (superfluity in the performance of a particular work) exists where the services of an employee (Ee) are in excess of
what is reasonably demanded by the actual reqts of the enterprise. (Wiltshire File Co., Inc. v. NLRC, G.R. No. 82249, Feb. 7, 1991)
3. Reorganization
4. Retrenchment cutting of expenses and includes the reduction of personnel; It is a management prerogative, a means to protect and
preserve the Ers viability and ensure his survival. To be an authorized cause it must be affected in good faith (GF) and for
the retrenchment, which is after all a drastic recourse with serious consequences for the livelihood of the Ees or otherwise
laidoff.
5. Closing or cessation of operation of the establishment must be done in good faith and not for the purpose of circumventing pertinent labor
laws.
6. Disease must be incurable within 6 months and the continued employment is prohibited by law or prejudicial to his health as well as to the
health of his co Ees with a certification from the public health officer that the disease is incurable within 6 months despite due to
medication and treatment

circumstances that must be present for a valid retrenchment?
1. The losses expected should be substantial and not merely de minimis in extent If the loss purportedly sought to be forestalled by
retrenchment is clearly show to be insubstantial and inconsequential in character, the bona fide nature of the retrenchment would appear
to be seriously in question.
2. The substantial loss apprehended must be reasonably imminent as such imminence can be perceived objectively and in good faith by the
employer (Er). There should be a certain degree of urgency for the retrenchment.
1. It must be reasonably necessary and likely to prevent the expected losses The Er should have taken other measures prior or parallel to
retrenchment to forestall losses such as cutting other costs than labor costs.
2. The alleged losses if already realized, and the expected imminent losses sought to be forestalled, must be proved by sufficient and
convincing evidence The reason for requiring this quantum of proof is readily apparent: any less exacting standard of proof would
render too easy the abuse of this ground for termination of services of employees. (Lopez Sugar Corp. v. Federation of Free Workers, G.R.
No. 7570001, Aug. 30, 1990)

requisites of a valid retrenchment?
1.Written notice served on both the Ee and the DOLE at least 1 month prior to the intended date of retrenchment
2. Payment of separation pay equivalent to at least one month pay or at least 1/2 month pay for every year of service, whichever is higher
3. Good faith
4. Proof of expected or actual losses
5. The employer used fair and reasonable criteria in ascertaining who would be retained among the Ees, such as status, efficiency, seniority,
physical fitness, age, and financial hardship of certain workers (Asian Alcohol Corp. v. NLRC, G.R. No. 131108, Mar. 25, 1999).

requisites of a valid closure
1. Written notice served on both the employees (Ees) and the DOLE at least 1 month prior to the intended date of closure
2. Payment of separation pay equivalent to at least one- mo n t h pay or at least 1/2 month pay for every year of service, whichever is
higher, except when closure is due to serious business losses
3. Good faith
4. No circumvention of the law
5. No other option available to the Er

PROCESS TO BE OBSERVED BY ER FOR TERMINATION BASED ON ANY OF THE JUST CAUSES
1. A written notice should be served to the Ee specifying the ground/s for termination and giving the said Ee reasonable opportunity to explain.
Note: This first written notice must apprise the Ee that his termination is being considered due to the acts stated in the notice. (Phil. Pizza Inc. v.
Bungabong, G.R. No. 154315, May 9, 2005)
2. A hearing or conference should be held during which the Ee concerned, with the assistance of counsel, if the Ee so desires, is given the
opportunity to respond to the charge, present his evidence and present the evidence presented against him.
3. A written notice of termination If termination is the decision of the Er, it should be served on the Ee indicating that upon due
considerations of all the circumstance, grounds have been established to justify his termination, at least one month prior to his termination.
Note: Single notice of termination does not comply with the requirements of the law. (Aldeguer & Co., Inc. vs. Honeyline Tomboc, G.R. No. 147633,
July 28, 2008)

remedies available to an illegally dismissed employee (Ee)
An Ee who is unjustly dismissed from work shall by entitled to:
1 Reinstatement without loss of seniority rights and
2. Full backwages. (Sec. 3, Rule I, Book VI, IRR)
3. Separation pay in lieu of reinstatement, if the latter is no longer feasible

RULES ON REINSTATEMENT
Order of Reinstatement+ strained relations =separation pay
Order of Reinstatement+ delay/unjust refusal to reinstate = Backwages,13
th
month plus other benefits subsists until reinstatement or separation
pay is paid
Order of Reinstatement+ EE found a new job= Er cannot refuse to reinstate the illegally dismissed Ee
Order of Reinstatement+ position no longer available = substantially equivalent position
Order of Reinstatement+ position no longer available + no substantially equivalent position available= Separation pay 1 month/year of service
(Grolier Intl Inc. v. ELA, G.R. No. 83523, Aug. 31, 1989)

circumstances that prevent award of backwages?
1. Dismissal for cause
2. Death, physical or mental incapacity of the employee
3. Business reverses
4. Detention in prison
elements of a valid quitclaim?
1.Voluntarily entered into with full understanding of what the employee is doing
2. Represents a reasonable settlement

employee (Ee) terminate his service with his employer (Er)?
A: 1.Without just cause by serving written notice on the Er at least 1 month in advance. The Er upon whom no such notice was served may
hold the Ee liable for damages.
2. With just cause an Ee may put an end to employment without serving any notice on the Er for any of the following just causes:
a. Serious insult by the Er or his representative on the hour and person of the Ee
b. Inhuman and unbearable treatment accorded the Ee by the Er or his representative
c. Commission of a crime or offense by the Er or his representative against the person of the Ee or any of the immediate members of his family
d. Other causes analogous to any of the foregoing
Persons Who are covered by SSS?
1. Compulsory Coverage
a. All Ees not over 60 years of age and their Ers;
b. Domestic helpers whose income is not less than P 1000/month and not over 60 years of age and their Ers; Limitations:
a. Any benefit earned by the Ees under private benefit plans existing at the time of the approval of the Act shall not be
discontinued, reduced or otherwise impaired;
b. Existing private plans shall be integrated with the SSS but if the Er under such plan is contributing more than what is required by
this Act, he shall pay to the SSS the amount required to him, and he shall continue with his contributions less the amount paid to
SSS;
c. Any changes, adjustments, modifications, eliminations or improvements in the benefits of the remaining private plan after the
integration shall be subject to agreements between the Ers and the Ees concerned; and
d. The private benefit plan which the Er shall continue for his Ees shall remain under the Ers management and control unless there
is an existing agreement to the contrary
c. All selfemployed considered both an Er and Ee
d. Professionals;
e. Partners and single proprietors of business;
f. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term Ee;
g. Professional athletes, coaches, trainers and jockeys; AND
h. Individual farmers and fisherman. (Sec. 9)
2. Voluntary
a. Spouses who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or
employment which is subject to mandatory coverage ; (Sec. 9[b])
b. Filipinos recruited by foreignbased Ers for employment abroad may be covered by the SSS on a voluntary basis; (Sec. 9[c])
c. Ee separated from employment to maintain his right to full benefits
d. Selfemployed who realizes no income for a certain month

3. By Agreement
Any foreign government, international organization, or their whollyowned instrumentality employing workers in the Phils., may enter into
an agreement with the Phil. government for the inclusion of such Ees in the SSS except those already covered by their respective civil service
retirement systems.


effect of interruption of business or professional income
If the selfemployed member realizes no income in any given month:
1. He shall not be required to pay contributions for that month.
2. He may, however, be allowed to continue paying contributions under the same rules and regulations applicable to a separated Ee member:
3. Provided, that no retroactive payment of contributions shall be allowed other than as prescribed under Sec.22A. (Sec. 11A)

kinds of employment which are excepted from compulsory coverage under the SSS Law.
Under Section 8(j) of R.A. 1161, as amended, the following services or employments are excepted from coverage:
1. Employment purely casual and not for the purpose of occupation or business of the employer;
2. Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Phils.;
3. Service performed in the employ of the Phils. Government or instrumentality or agency thereof;
4. Service performed in the employ of a foreign government or international organization, or their whollyowned instrumentality:
Provided, however, That this exemption notwithstanding, any foreign government, international organization or their wholly owned
instrumentality employing workers in the Phils.s or employing Filipinos outside of the Phils., may enter into an agreement with the Phils.
Government for the inclusion of such employees in the SSS except those already covered by their respective civil service retirement
systems:Provided, further, That the terms of such agreement shall conform with the provisions of this Act on coverage and amount of
payment of contributions and benefits: Provided, finally, That the provisions of this Act shall be supplementary to any such agreement; and
5. Such other services performed by temporary and other employees which may be excluded by regulation of the Commission. Employees
of bona fide independent contractors shall not be deemed employees of the employer engaging the service of said contractors.
benefits under the SSS Act
1. Monthly Pension
2. Retirement Benefits
3. Death Benefits
4. Disability Benefits
5. Funeral Benefits
6. Sickness Benefits
7. Maternity Benefits