The Labor Code and The DynamicsThe Labor Code and The DynamicsBetween Employees and EmployersBetween Employees and Employers

ATTY. J. OSWALD B. LORENZOATTY. J. OSWALD B. LORENZOFormer Labor Arbiter, NCR-NLRC; Professor of Law and Pre-Bar Former Labor Arbiter, NCR-NLRC; Professor of Law and Pre-Bar

Reviewer; President, The Center for Law Advocacy and Specialized Studies Reviewer; President, The Center for Law Advocacy and Specialized Studies (CLASS); former Assistant Secretary, DENR and POEA Director for (CLASS); former Assistant Secretary, DENR and POEA Director for Licensing and Past President, National Association of Labor Arbiters Licensing and Past President, National Association of Labor Arbiters

(NALA), Inc.(NALA), Inc.

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SOCIAL SECURITY SYSTEM

(RA1161 as amended by RA 8282)

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COVERAGE:COVERAGE: Compulsory:Compulsory:

Compulsory upon all employees not over Compulsory upon all employees not over 60 years of age and their employers60 years of age and their employers

In case of domestic helpers, their monthly In case of domestic helpers, their monthly income should not be less than one income should not be less than one thousand pesosthousand pesos

Compulsory upon such self- employed Compulsory upon such self- employed persons as may be determined by the persons as may be determined by the Commission including but not limited to Commission including but not limited to the following (Sec 9-A): the following (Sec 9-A):

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All self employed professionalsAll self employed professionalsPartners and single proprietors Partners and single proprietors Actors and actresses directors, scriptwriters and Actors and actresses directors, scriptwriters and

news correspondents who do not fall within the news correspondents who do not fall within the definition of the term employee in Section 8 (d) definition of the term employee in Section 8 (d) of this Act of this Act

Professional athletes, coaches, trainers, and Professional athletes, coaches, trainers, and jockeysjockeys

Individual farmers and fishermen Individual farmers and fishermen

Limitation: Sec. 9 (a)Limitation: Sec. 9 (a) Any benefit already earned by the employees Any benefit already earned by the employees

under private benefit plans existing at the time under private benefit plans existing at the time of the approval of the Act shall not be of the approval of the Act shall not be discontinued, reduced or otherwise impaireddiscontinued, reduced or otherwise impaired

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Voluntary:Voluntary: Spouses who devote full time to managing the Spouses who devote full time to managing the

household and family affairs, household and family affairs, unless they are also unless they are also engaged in other vocation or employment which is engaged in other vocation or employment which is subject to mandatory coveragesubject to mandatory coverage, may be covered by , may be covered by the SSS on a voluntary basis.the SSS on a voluntary basis.

Filipinos recruited by foreign based employers for Filipinos recruited by foreign based employers for employment abroad may be covered by the SSS employment abroad may be covered by the SSS on a voluntary basison a voluntary basis

Employees separated from employment may Employees separated from employment may continue to pay contributions to maintain his right continue to pay contributions to maintain his right to full benefits (Sec. 11)to full benefits (Sec. 11)

Self-employed with no income (11-A) Self-employed with no income (11-A)

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BY AGREEMENT:BY AGREEMENT:

Any foreign government, international Any foreign government, international organization, or their wholly-owned organization, or their wholly-owned instrumentality employing workers in the instrumentality employing workers in the Philippines, may enter into an agreement with Philippines, may enter into an agreement with the Philippine government for the inclusion of the Philippine government for the inclusion of such employees in the SSS except those such employees in the SSS except those already covered by their respective civil already covered by their respective civil service retirement systems (Sec.8 (j (4). service retirement systems (Sec.8 (j (4).

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EXCLUDED EMPLOYMENT (SEC. 8 (J))EXCLUDED EMPLOYMENT (SEC. 8 (J))::

Employment purely casual and not for the purpose Employment purely casual and not for the purpose of occupation or business of the employerof occupation or business of the employer

Service performed on or in connection with an Service performed on or in connection with an alien vessel by an employee if he is employed alien vessel by an employee if he is employed when such vessel is outside the Philippines.when such vessel is outside the Philippines.

Service performed in the employ of the Philippine Service performed in the employ of the Philippine government or instrumentality or agency thereof.government or instrumentality or agency thereof.

Service performed in the employ of a foreign Service performed in the employ of a foreign government, international organization, or their government, international organization, or their wholly owned instrumentality;wholly owned instrumentality;

Services performed by temporary employees, Services performed by temporary employees, which may be excluded by regulation of the which may be excluded by regulation of the commission. commission.

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EFFECTIVE DATE OF COVERAGE:EFFECTIVE DATE OF COVERAGE:

EmployerEmployer: It shall take effect on the first : It shall take effect on the first day of his operationday of his operation

EmployeeEmployee: On the day of his employment: On the day of his employment

Self-employedSelf-employed: It shall take effect upon his : It shall take effect upon his registration with SSS registration with SSS

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Definition of TermsDefinition of Terms EMPLOYEREMPLOYER

Any person natural or juridical, domestic or Any person natural or juridical, domestic or foreign, who carries on in the Philippines, any trade foreign, who carries on in the Philippines, any trade business, industry undertaking or activity of any kind business, industry undertaking or activity of any kind and uses the services of another person who is under and uses the services of another person who is under his orders as regards the employment except the his orders as regards the employment except the Government and any of its political subdivisions, Government and any of its political subdivisions, branches or instrumentalities, including corporations branches or instrumentalities, including corporations owned or controlled by the Governmentowned or controlled by the Government Self- employed personSelf- employed person shall be both the employer shall be both the employer

and employee at the same time and employee at the same time

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EMPLOYEE EMPLOYEE

Any person who performs services for an Any person who performs services for an employer in which either or both mental and employer in which either or both mental and physical efforts are used and who receives physical efforts are used and who receives compensation for such services, where there is compensation for such services, where there is an employer- employee relationship.an employer- employee relationship.

Self- employed personSelf- employed person shall be both the shall be both the employer and employee at the same time employer and employee at the same time

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DEPENDENTS:DEPENDENTS:

The legal spouse entitled by law to The legal spouse entitled by law to receive support from the memberreceive support from the member

The legitimate, legitimated or legally The legitimate, legitimated or legally adopted and illegitimate child who is adopted and illegitimate child who is unmarried, not gainfully employed and has not unmarried, not gainfully employed and has not reached 21 years of age or if 21 years of age, reached 21 years of age or if 21 years of age, he is congenitally incapacitated or while still a he is congenitally incapacitated or while still a minor has been permanently incapacitated and minor has been permanently incapacitated and incapable of self- support, physically and incapable of self- support, physically and mentally andmentally and

The parent who is receiving regular The parent who is receiving regular support from the member support from the member

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BENEFICIARIESBENEFICIARIES The dependent spouse until he or she The dependent spouse until he or she

remarries, the dependent legitimate, remarries, the dependent legitimate, legitimated or legally adopted and legitimated or legally adopted and illegitimate children who shall be the illegitimate children who shall be the primary beneficiaries of the memberprimary beneficiaries of the member

PROVIDEDPROVIDED that the dependent illegitimate that the dependent illegitimate children shall be entitled to 50% of the children shall be entitled to 50% of the share of the legitimate, legitimated or share of the legitimate, legitimated or legally adopted children.legally adopted children.

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PROVIDED FURTHERPROVIDED FURTHER in the absence of in the absence of the legitimated, legally adopted or legitimate the legitimated, legally adopted or legitimate children, illegitimate children shall be children, illegitimate children shall be entitled to 100% of the benefits.entitled to 100% of the benefits.

IN THEIR ABSENCEIN THEIR ABSENCE, the dependent , the dependent parents who shall be the secondary parents who shall be the secondary beneficiaries.beneficiaries.

IN THE ABSENCE OF ALLIN THE ABSENCE OF ALL of the of the foregoing, any person designated by the foregoing, any person designated by the covered employee as secondary beneficiary.covered employee as secondary beneficiary.

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Benefits:Benefits: Monthly pensionMonthly pension Dependents pensionDependents pension

Retirement benefitsRetirement benefits

SUSPENSION OF MONTHLY SUSPENSION OF MONTHLY PENSION: Upon the re-employment or PENSION: Upon the re-employment or resumption of self-employment of a retired resumption of self-employment of a retired employee who is less than 65 years old.employee who is less than 65 years old.

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Death Benefits Death Benefits Permanent disability benefitsPermanent disability benefits Funeral BenefitFuneral Benefit

A funeral grant equivalent to Twelve A funeral grant equivalent to Twelve thousand pesos (P12, 000.00) shall be paid, thousand pesos (P12, 000.00) shall be paid, in cash or in kind, to help defray the cost of in cash or in kind, to help defray the cost of funeral expenses upon the death of a funeral expenses upon the death of a member, including permanently totally member, including permanently totally disabled member or retiree.disabled member or retiree.

Sickness benefitSickness benefit

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Maternity Leave BenefitMaternity Leave Benefit

It shall be paid to a female employee who It shall be paid to a female employee who has paid at least 3 monthly contributions in the has paid at least 3 monthly contributions in the twelve month period immediately preceding the twelve month period immediately preceding the semester of her childbirth or miscarriage semester of her childbirth or miscarriage PROVIDED:PROVIDED:

That the employee shall have notified her That the employee shall have notified her employer of her pregnancy and the probable date employer of her pregnancy and the probable date of her childbirth which notice shall be of her childbirth which notice shall be transmitted to the SSS.transmitted to the SSS.

The full payment shall be advanced by the The full payment shall be advanced by the employer within 30 days from the filing of the employer within 30 days from the filing of the maternity leave applicationmaternity leave application

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Payment of daily maternity benefits shall be a bar Payment of daily maternity benefits shall be a bar to the recovery of sickness benefitsto the recovery of sickness benefits

The maternity benefits provided under this section The maternity benefits provided under this section shall be paid only for the first 4 deliveries or shall be paid only for the first 4 deliveries or miscarriagesmiscarriages

The SSS shall immediately reimburse the The SSS shall immediately reimburse the employer 100% of the benefits advanced by the employer 100% of the benefits advanced by the latterlatter

If no contributions were remitted by the employer If no contributions were remitted by the employer or no notice was given to SS, the employer shall or no notice was given to SS, the employer shall be liable for damages equivalent to the benefits be liable for damages equivalent to the benefits which said employee member would otherwise which said employee member would otherwise have been entitled to.have been entitled to.

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Non-transferability of benefits (Sec. 15)Non-transferability of benefits (Sec. 15)

Such benefits are not transferable and Such benefits are not transferable and no power of attorney or other document no power of attorney or other document executed by those entitled thereto, in favor executed by those entitled thereto, in favor of any agent, attorney or any other person of any agent, attorney or any other person for the collection thereof on their behalf for the collection thereof on their behalf shall be recognized, except when they are shall be recognized, except when they are physically unable to collect personally such physically unable to collect personally such benefits. benefits.

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Remittance:Remittance: It shall be remitted within the first 10 days It shall be remitted within the first 10 days

of each calendar month following the of each calendar month following the month for which they are applicable or month for which they are applicable or within such time as the Commission may within such time as the Commission may prescribe.prescribe.

For self-employed they shall remit their For self-employed they shall remit their contributions quarterly on such dates and contributions quarterly on such dates and schedules as the Commission may require. schedules as the Commission may require.

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GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS)

RA 8291

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COMPULSORY MEMBERSHIP (Sec. 3)COMPULSORY MEMBERSHIP (Sec. 3)Compulsory for all employees (as Compulsory for all employees (as

defined in Section 2 (d) of GSIS Law) defined in Section 2 (d) of GSIS Law) receiving compensation who have not receiving compensation who have not reached the compulsory retirement age, reached the compulsory retirement age, irrespective of employment status, irrespective of employment status, EXCEPT EXCEPT MEMBERS OF THE ARMED FORCES MEMBERS OF THE ARMED FORCES AND THE PNPAND THE PNP, subject to the condition , subject to the condition that they must settle first their financial that they must settle first their financial obligations with the GSIS and contractuals obligations with the GSIS and contractuals who have no employer and employee who have no employer and employee relationship with the agencies they serve.relationship with the agencies they serve.

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EXCEPT FOR THE MEMBERS OF EXCEPT FOR THE MEMBERS OF THE JUDICIARY AND THE JUDICIARY AND CONSTITUTIONAL COMMISSIONS CONSTITUTIONAL COMMISSIONS WHO SHALL HAVE LIFE INSURANCE WHO SHALL HAVE LIFE INSURANCE ONLYONLY, all members of the GSIS shall have , all members of the GSIS shall have life insurance, retirement and all other life insurance, retirement and all other social security protection such as social security protection such as disability, survivorship, separation and disability, survivorship, separation and unemployment benefits.unemployment benefits.

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Definition of Terms:Definition of Terms: Employer:Employer:

The national government, its political The national government, its political subdivisions, branches, agencies or subdivisions, branches, agencies or instrumentalities including GOCC’s and instrumentalities including GOCC’s and financial institutions with original charters, the financial institutions with original charters, the constitutional commissions and the judiciaryconstitutional commissions and the judiciary

Employee or Member:Employee or Member:Any person receiving compensation while Any person receiving compensation while

in the service of an employer as defined herein, in the service of an employer as defined herein, whether by election or appointment, whether by election or appointment, irrespective of status appointment, irrespective of status appointment,

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Dependents:Dependents: The legitimate spouse dependent for support upon The legitimate spouse dependent for support upon

the member or pensionerthe member or pensioner The legitimate, legitimated legally adopted child, The legitimate, legitimated legally adopted child,

including the illegitimate child who is:including the illegitimate child who is:unmarried, unmarried, not gainfully employed, not gainfully employed, not over the age of majority,not over the age of majority,or is over the age of majority but incapacitated or is over the age of majority but incapacitated

and incapable of self-support due to a mental or and incapable of self-support due to a mental or physical defect acquired prior to age of majorityphysical defect acquired prior to age of majority

Parents dependent upon the member for support Parents dependent upon the member for support

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Primary Beneficiary:Primary Beneficiary:The legal dependent spouse until he/she remarriesThe legal dependent spouse until he/she remarries

Secondary Beneficiary:Secondary Beneficiary:The dependent parents and subject to the restrictions The dependent parents and subject to the restrictions on dependent children, the legitimate descendantson dependent children, the legitimate descendants

Disability:Disability:Any loss or impairment of the normal functions of the Any loss or impairment of the normal functions of the physical and/or mental faculty of a member which physical and/or mental faculty of a member which reduces or eliminates his/her capacity to continue reduces or eliminates his/her capacity to continue with his/her current gainful occupation or engage in with his/her current gainful occupation or engage in any other gainful occupation. any other gainful occupation.

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Total DisabilityTotal Disability

Permanent Total DisabilityPermanent Total Disability

Temporary Total DisabilityTemporary Total Disability

Permanent Partial DisabilityPermanent Partial Disability

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Benefits:Benefits: SEPARATION BENEFITS (SEC. 11):SEPARATION BENEFITS (SEC. 11):

Separation benefits are given to the:Separation benefits are given to the:The member resigns or separates from the The member resigns or separates from the

service after he has rendered at least three service after he has rendered at least three (3) years of service but less than fifteen (3) years of service but less than fifteen (15) years or(15) years or

The member resigns or separates from The member resigns or separates from office after he has rendered at least fifteen office after he has rendered at least fifteen (15) years of service and is below sixty (15) years of service and is below sixty (60) years of age at the time of resignation (60) years of age at the time of resignation or separation. or separation.

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Separation benefits likewise include:Separation benefits likewise include:UNEMPLOYMENT OR INVOLUNTARY UNEMPLOYMENT OR INVOLUNTARY

SEPARATION BENEFITS (Sec. 12): SEPARATION BENEFITS (Sec. 12): shall shall be paid to a permanent employee who is be paid to a permanent employee who is involuntarily separated from the service due to involuntarily separated from the service due to the abolition of his office or position usually the abolition of his office or position usually resulting from reorganization resulting from reorganization PROVIDEDPROVIDED that that he has been paying integrated contributions for he has been paying integrated contributions for at least one (1) year prior to separation. at least one (1) year prior to separation.

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RETIREMENT BENEFITSRETIREMENT BENEFITS PERMANENT DISABILITY BENEFITSPERMANENT DISABILITY BENEFITS

PERMANENT PARTIAL PERMANENT PARTIAL DISABILITY (Sec. 17)DISABILITY (Sec. 17)

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IN THE ABSENCE OF PRIMARY IN THE ABSENCE OF PRIMARY BENEFICIARIES, THE SECONDARY BENEFICIARIES, THE SECONDARY BENEFICIARIES SHALL BE ENTITLED TO:BENEFICIARIES SHALL BE ENTITLED TO:

Cash payment equivalent to 100% of his average Cash payment equivalent to 100% of his average monthly compensation for each year of service he monthly compensation for each year of service he paid contributions, but not less than P12,000 paid contributions, but not less than P12,000 PROVIDED that the member is in service at the PROVIDED that the member is in service at the time of his death and has at least 3 years of service.time of his death and has at least 3 years of service.

In the absence of secondary beneficiaries , the In the absence of secondary beneficiaries , the benefits under this paragraph shall be paid to the benefits under this paragraph shall be paid to the legal heirs legal heirs

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FUNERAL BENEFITSFUNERAL BENEFITS::It shall not be less than twelve thousand It shall not be less than twelve thousand

pesos (P12,000.00) PROVIDED that it shall pesos (P12,000.00) PROVIDED that it shall be increased to at least eighteen thousand be increased to at least eighteen thousand pesos (P18,000.00) after five years and shall pesos (P18,000.00) after five years and shall be paid upon death.be paid upon death.

LIFE INSURANCE BENEFITS:LIFE INSURANCE BENEFITS:All employees except members of the All employees except members of the

AFP and the PNP shall be compulsorily AFP and the PNP shall be compulsorily covered with life insurance. covered with life insurance.

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Adjudication of Claims and DisputesAdjudication of Claims and Disputes

PRESCRIPTION OF CLAIMSPRESCRIPTION OF CLAIMS Claims for benefits under the Act except for life and Claims for benefits under the Act except for life and retirement shall prescribe retirement shall prescribe AFTER 4 YEARS FROM THE AFTER 4 YEARS FROM THE DATE OF THE CONTINGENCY.DATE OF THE CONTINGENCY.

JJURISDICTIONURISDICTION GSIS shall have the exclusive and original jurisdiction GSIS shall have the exclusive and original jurisdiction to settle any dispute arising under the Act and any other to settle any dispute arising under the Act and any other laws administered by the GSIS.laws administered by the GSIS.

Appealable under Rule 43 and 45 Of the 1997 Appealable under Rule 43 and 45 Of the 1997 Rules of Civil Procedure. The appeal shall not stay the Rules of Civil Procedure. The appeal shall not stay the execution of the order or award unless ordered by the execution of the order or award unless ordered by the Boards, CA, or SC and the appeal shall be without prejudice Boards, CA, or SC and the appeal shall be without prejudice to the special civil action of certiorari when proper. to the special civil action of certiorari when proper.

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13TH MONTH PAY LAW(P.D. 851)

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SEC. 2.SEC. 2. DEFINITION OF CERTAIN TERMSDEFINITION OF CERTAIN TERMS ""THIRTEENTH-MOTH PAYTHIRTEENTH-MOTH PAY"" - shall mean one - shall mean one twelfth (1/12) of the basic salary of an employee twelfth (1/12) of the basic salary of an employee within a calendar year;within a calendar year;

""BASIC SALARYBASIC SALARY"" - include all remunerations or - include all remunerations or earnings paid by an employer to an employee for earnings paid by an employer to an employee for services rendered but may not include:services rendered but may not include:

Cost-of-living allowancesCost-of-living allowancesProfit-sharing payments, and Profit-sharing payments, and All allowances and monetary benefits which are All allowances and monetary benefits which are

not considered or integrated as part of the regular not considered or integrated as part of the regular or basic salary of the employee at the time of the or basic salary of the employee at the time of the promulgation of the Decree on December 16, promulgation of the Decree on December 16, 1975. 1975.

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WHAT CAN BE CONSIDERED WHAT CAN BE CONSIDERED AS 13TH MONTH PAY:AS 13TH MONTH PAY:

Christmas bonusChristmas bonus Midyear bonusesMidyear bonuses Cash bonuses Cash bonuses

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SEC. 3.SEC. 3. EMPLOYERS COVERED EMPLOYERS COVERED - The Decree shall apply - The Decree shall apply to all employersto all employers except to: except to:a. Distressed employers, - such as:a. Distressed employers, - such as:

those which are currently incurring substantial those which are currently incurring substantial losses; orlosses; or

in the case of non-profit institutions and in the case of non-profit institutions and organizations, where their income, whether from organizations, where their income, whether from donations, contributions, grants and other earnings donations, contributions, grants and other earnings from any source, has consistently declined by more from any source, has consistently declined by more than forty (40%) percent of their normal income for than forty (40%) percent of their normal income for the last two (2) years, subject to the provision of the last two (2) years, subject to the provision of Section 7 of this issuance; Section 7 of this issuance;

b. The Government and any of its political subdivisions, b. The Government and any of its political subdivisions, including GOCCs except those corporations operating including GOCCs except those corporations operating essentially as private subsidiaries of the Governmentessentially as private subsidiaries of the Government

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c. Employers already paying their employees 13-c. Employers already paying their employees 13-month pay or more in a calendar year of its month pay or more in a calendar year of its equivalent at the time of this issuance;equivalent at the time of this issuance;

d. Employers of household helpers and persons in d. Employers of household helpers and persons in the personal service of another in relation to the personal service of another in relation to such workers; andsuch workers; and

e. Employers of those who are paid on purely e. Employers of those who are paid on purely commission, boundary, or task basis, and those commission, boundary, or task basis, and those who are paid a fixed amount for performing a who are paid a fixed amount for performing a specific work, irrespective of the time consumed specific work, irrespective of the time consumed in the performance thereof, except where the in the performance thereof, except where the workers are paid on piece-rate basis in which workers are paid on piece-rate basis in which case the employer shall be covered by this case the employer shall be covered by this issuance insofar as such workers are concerned. issuance insofar as such workers are concerned.

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WORKERS PAID ON PIECE-RATE BASIS WORKERS PAID ON PIECE-RATE BASIS refer to those who are paid a standard amount for refer to those who are paid a standard amount for every piece or unit of work produced that is more or every piece or unit of work produced that is more or less regularly replicated, without regard to the time less regularly replicated, without regard to the time spent in producing the same.spent in producing the same.

"ITS EQUIVALENT""ITS EQUIVALENT" (as used in paragraph (as used in paragraph c) hereof)c) hereof) shall include: shall include: Christmas bonusChristmas bonus mid-year bonusmid-year bonus profit-sharing payments and profit-sharing payments and

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other cash bonuses amounting to not less other cash bonuses amounting to not less than 1/12th of the basic salary but than 1/12th of the basic salary but shall shall not includenot include cash and stock dividends, cost cash and stock dividends, cost of living allowances and all other of living allowances and all other allowances regularly enjoyed by the allowances regularly enjoyed by the employee, as well as non-monetary employee, as well as non-monetary benefits.benefits.

Where an employer pays less Where an employer pays less than 1/12th of the employees basic salary, than 1/12th of the employees basic salary, the employer shall pay the difference. the employer shall pay the difference.

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SEC. 4.SEC. 4. EMPLOYEES COVERED EMPLOYEES COVERED Except as provided in Section 3 of this Except as provided in Section 3 of this

issuance, all employees of covered employers shall be issuance, all employees of covered employers shall be entitled to benefit provided under the Decree who are entitled to benefit provided under the Decree who are receiving not more than P1,000 a month, regardless of receiving not more than P1,000 a month, regardless of their position, designation or employment status, and their position, designation or employment status, and irrespective of the method by which their wages are irrespective of the method by which their wages are paid, provided that they have worked for at least one paid, provided that they have worked for at least one month during the calendar year.month during the calendar year.

WHO ARE EXCLUDED FROM COVERAGE:WHO ARE EXCLUDED FROM COVERAGE: government employeesgovernment employees household helpershousehold helpers employees paid purely on commission basisemployees paid purely on commission basis employees already receiving 13th month pay employees already receiving 13th month pay

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SEC. 5.SEC. 5. OPTION OF COVERED OPTION OF COVERED EMPLOYERS EMPLOYERS

A covered employer may pay one-half of A covered employer may pay one-half of the 13th-month pay required by the Decree the 13th-month pay required by the Decree before the opening of the regular school year before the opening of the regular school year and the other half on or before the 24th day of and the other half on or before the 24th day of December of every year.December of every year.

In any establishment where a union has In any establishment where a union has been recognized or certified as the collective been recognized or certified as the collective bargaining agent of the employees therein, the bargaining agent of the employees therein, the periodicity or frequency of payment of the periodicity or frequency of payment of the 13th month pay may be the subject of 13th month pay may be the subject of agreement.agreement.

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SEC. 7.SEC. 7. EXEMPTION OF DISTRESSED EXEMPTION OF DISTRESSED EMPLOYERS EMPLOYERS

Distressed employers shall qualify for Distressed employers shall qualify for exemption from the requirement of the Decree exemption from the requirement of the Decree upon upon prior authorization by the Secretary of Labor.prior authorization by the Secretary of Labor.

SEC. 9.SEC. 9. ADJUDICATION OF CLAIMS ADJUDICATION OF CLAIMS Non-payment of the thirteenth-month pay Non-payment of the thirteenth-month pay

provided by the Decree and these rules shall be provided by the Decree and these rules shall be treated as money claims cases and shall be processed treated as money claims cases and shall be processed in accordance with the Rules Implementing the Labor in accordance with the Rules Implementing the Labor Code of the Philippines and the Rules of the National Code of the Philippines and the Rules of the National Labor Relations Commission. Labor Relations Commission.

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SEC. 10.SEC. 10. PROHIBITION AGAINST PROHIBITION AGAINST REDUCTION OR ELIMINATION REDUCTION OR ELIMINATION OF BENEFITSOF BENEFITS

Nothing herein shall be construed to Nothing herein shall be construed to authorize any employer to eliminate, or authorize any employer to eliminate, or diminish in any way, supplements, or diminish in any way, supplements, or other employee benefits or favorable other employee benefits or favorable practice being enjoyed by the employee practice being enjoyed by the employee at the time of promulgation of this at the time of promulgation of this issuance.issuance.

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PRIVATE SCHOOL TEACHERSPRIVATE SCHOOL TEACHERSPrivate school teachers, including Private school teachers, including

faculty members of colleges and faculty members of colleges and universities, are entitled to 1/12 of their universities, are entitled to 1/12 of their annual basic pay regardless of the number of annual basic pay regardless of the number of months they teach or are paid within a year.months they teach or are paid within a year.

OVERTIME PAYOVERTIME PAYOvertime pay, earnings and other Overtime pay, earnings and other

remunerations which are not part of the remunerations which are not part of the basic salary shall not be included in the basic salary shall not be included in the computation of the 13-month pay. computation of the 13-month pay.

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Is it necessary that a woman be impregnated by Is it necessary that a woman be impregnated by her legitimate spouse? her legitimate spouse?

No. it is immaterial who the father is.No. it is immaterial who the father is.

Every pregnant woman in the private Every pregnant woman in the private sector, whether married or unmarried, is sector, whether married or unmarried, is entitled to the maternity leave benefits.entitled to the maternity leave benefits.

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EXTENSION OF MATERNITY EXTENSION OF MATERNITY LEAVE [ALEAVE [ART 133 (b)RT 133 (b)]]

the maternity leave shall be extended the maternity leave shall be extended without pay on account of illness medically without pay on account of illness medically certified to arise out of the pregnancy, certified to arise out of the pregnancy, delivery, abortion, or miscarriage, which delivery, abortion, or miscarriage, which renders the woman unfit for work , unless she renders the woman unfit for work , unless she has earned unused leave credits from which has earned unused leave credits from which such extended leave may be charged. such extended leave may be charged.

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PATERNITY LEAVE (RA 8187 , July 5,1996)

Grants paternity leave of 7 days with full Grants paternity leave of 7 days with full pay, consisting of basic salary, to all married male pay, consisting of basic salary, to all married male employees in the public and private sector.employees in the public and private sector.

Available only for the first 4 deliveries of Available only for the first 4 deliveries of the legitimate spouse with whom the husband is the legitimate spouse with whom the husband is cohabiting; the term delivery includes childbirth, cohabiting; the term delivery includes childbirth, miscarriage or abortion.miscarriage or abortion.

In the event that such leave was not availed In the event that such leave was not availed of, said leave shall not be convertible to cash. of, said leave shall not be convertible to cash.

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PURPOSEPURPOSE:: to enable the husband to lend support to to enable the husband to lend support to his wife during the period of recovery and/ or in the his wife during the period of recovery and/ or in the nursing of the newly born child.nursing of the newly born child.

CONDITIONS FOR ENTITLEMENT:CONDITIONS FOR ENTITLEMENT: He is an employee at the time of the delivery of He is an employee at the time of the delivery of

his child;his child; He is cohabiting with his spouse at the time she He is cohabiting with his spouse at the time she

gives birth or suffers a miscarriage;gives birth or suffers a miscarriage; He has applied for paternity leave with his He has applied for paternity leave with his

employer; employer; His wife has given birth or suffered a miscarriage; His wife has given birth or suffered a miscarriage;

the term wife refers to the lawful wife which the term wife refers to the lawful wife which means the woman who is legally married to the means the woman who is legally married to the male employee concerned. male employee concerned.

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APPLICATION OF LEAVE:APPLICATION OF LEAVE:

Must be made:Must be made:within a reasonable time from the within a reasonable time from the

expected date of delivery by the pregnant expected date of delivery by the pregnant spouse.spouse.

within such period as may be provided within such period as may be provided by company rules & regulations or by company rules & regulations or CBA.CBA.

prior application for leave shall NOT be prior application for leave shall NOT be required in case of miscarriage. required in case of miscarriage.

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EMPLOYMENT OF MINORS

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ART. 139. MINIMUM EMPLOYABLE AGEART. 139. MINIMUM EMPLOYABLE AGE

GENERAL RULE: No child below 15 shall GENERAL RULE: No child below 15 shall be employed.be employed.

CONDITIONS ON THE EMPLOYMENT CONDITIONS ON THE EMPLOYMENT OF A CHILD BELOW 15:OF A CHILD BELOW 15:

When the child works directly under the When the child works directly under the sole responsibility of his/her parents or legal sole responsibility of his/her parents or legal guardian who employs members of his/her guardian who employs members of his/her family only under the following conditions:family only under the following conditions:

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employment does not endanger the employment does not endanger the child’s life, safety, health and morals;child’s life, safety, health and morals;

employment does not impair the employment does not impair the

child’s normal development; andchild’s normal development; and

the parent/legal guardian provides the the parent/legal guardian provides the child with the primary and/or child with the primary and/or secondary education prescribed by secondary education prescribed by DECS. DECS.

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Where the child’s employment or Where the child’s employment or participation in public entertainment or participation in public entertainment or information through cinema, theater, information through cinema, theater, radio, or television is essential, radio, or television is essential, provided that:provided that:employment does not involve employment does not involve

advertisements or commercials advertisements or commercials promoting alcoholic beverages, promoting alcoholic beverages, intoxicating drinks, tobacco and its intoxicating drinks, tobacco and its by-products or exhibiting violence;by-products or exhibiting violence;

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There is a written contract There is a written contract approved by the DOLE; andapproved by the DOLE; and

The conditions prescribed for the The conditions prescribed for the employment of minors {above employment of minors {above stated} are met.stated} are met.

Any person between the ages of Any person between the ages of 15 and 18 may be employed in any 15 and 18 may be employed in any non-hazardous work.non-hazardous work.

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NON-HAZARDOUS WORK OR NON-HAZARDOUS WORK OR UNDERTAKING UNDERTAKING

– – one where the employee is not one where the employee is not exposed to any risk which constitutes an exposed to any risk which constitutes an imminent danger to his safety and health.imminent danger to his safety and health.

HAZARDOUS WORKPLACES:HAZARDOUS WORKPLACES: where the nature of the work exposes the where the nature of the work exposes the

workers to dangerous environmental workers to dangerous environmental elements, contaminants or work conditions;elements, contaminants or work conditions;

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where the workers are engaged in construction where the workers are engaged in construction work, logging, fire-fighting, mining, quarrying, work, logging, fire-fighting, mining, quarrying, blasting, stevedoring, dock work, deep-sea blasting, stevedoring, dock work, deep-sea fishing, and mechanized farming;fishing, and mechanized farming;

where the workers are engaged in the where the workers are engaged in the manufacture or handling of explosives and manufacture or handling of explosives and other pyrotechnic products;other pyrotechnic products;

where the workers use or are exposed to heavy where the workers use or are exposed to heavy or power-driven machinery or equipment; andor power-driven machinery or equipment; and

where the workers use or are exposed to power-where the workers use or are exposed to power-driven toolsdriven tools

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ENDEND