LAW ON LABOR STANDARDS

AND SOCIAL LEGISLATION

ANNOTATED [Articles 1 to 210, Labor Code of the Philippines]

STATEMENT OF COVERAGE

PRELIMINARY TITLE

BOOK ONE PRE-EMPLOYMENT

BOOK TWO

HUMAN RESOURCES DEVELOPMENT PROGRAM

BOOK THREE CONDITIONS OF EMPLOYMENT

BOOK FOUR

HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS

TABLE OF CONTENTS

THE LABOR CODE OF THE PHILIPPINES

PRELIMINARY TITLE CHAPTER I GENERAL PROVISIONS ARTICLE 1 - Name of Decree NOTES AND COMMENTS:

1. Codification of labor laws 2. Labor laws prior to Labor Code

3. Amendments to Labor Code a. Presidential Decrees b. Batas Pambansa

c. Executive Orders d. Republic Acts 4. Other relevant laws and social legislation 5. Change in names and references ARTICLE 2 - Date of effectivity NOTES AND COMMENTS: 1. Date of effectivity of the Labor Code a. Date of promulgation of Labor Code b. Date of effectivity of Labor Code c. Purpose of the six (6) month period of transition ARTICLE 3 - Declaration of basic policy NOTES AND COMMENTS: 1. Constitutional basis

2. Legal mandate under Article 3 3. Police power of the State

4. Relation between capital and labor is impressed with public interest ARTICLE 4 - Construction in favor of labor NOTES AND COMMENTS: 1. Proper construction and interpretation 2. Doubt or ambiguity in labor contracts 3. When rule in Article 4 does not apply ARTICLE 5 - Rules and regulations NOTES AND COMMENTS: 1. Agencies empowered to promulgate rules 2. Rules to Implement the Labor Code 3. Date of effectivity of the Rules to Implement the Labor Code 4. Nature and limitation on rule-making power 5. Publication of rules 6. Consequence of nullity of implementing rules ARTICLE 6 - Applicability NOTES AND COMMENTS: 1. Applicability of Labor Code 2. Excepted workers

3. Applicability to government corporations CHAPTER II EMANCIPATION OF TENANTS ARTICLE 7 - Statement of objectives ARTICLE 8 - Transfer of lands to tenant-workers ARTICLE 9 - Determination of land value ARTICLE 10 - Conditions of ownership ARTICLE 11 - Implementing agency NOTES AND COMMENTS: 1. Historical perspective 2. The Comprehensive Agrarian Reform Law a. Controlling law b. Suppletory application of existing legislation c. Repealed laws

PRELIMINARY CHAPTER.

a. Declaration of principles and policies b. Definitions

COVERAGE.

a. Scope b. Schedule of implementation c. Retention limits d. Retained lands under P.D. No. 27; homestead grantees and e. direct compulsory heirs f. Effect of R. A. No 6657 on Proclamation No. 131 and E. O. No. 229 g. Right to choose the area to be retained h. Security of tenure of farmers and farmworkers i. Void transactions involving the land; exceptions j. Order of priorities in acquisition and distribution of land k. Land held by multinational corporations; how acquired and disposed l. Ancestral lands; effect of torrens system m. Suspension of R. A. No. 6657 involving ancestral lands; grounds n. Exemptions and exclusions from coverage of R. A. No. 6657 o. Acquisition and distribution of commercial farm; when compulsory p. Inclusion as commercial farm of private agricultural lands devoted to q. commercial livestock, poultry and swine raising, held invalid r. Residential lots in subdivisions; not covered

IMPROVEMENT OF TENURIAL AND LABOR RELATIONS.

a. Determination of lease rentals b. Policies c. Coverage d. Effectivity of leasehold e. Production-sharing plan

REGISTRATION.

a. Registration of landowners b. Registration of beneficiaries c. Registerable transactions without need of prior clearance

THE ACQUISITION.

a. Procedure for acquisition of private lands COMPENSATION.

a. Determination of just compensation b. Valuation and mode of compensation c. Incentives of voluntary offers for sale d. Voluntary land transfer e. Payment of compensation by beneficiaries under voluntary land transfer

GUIDELINES - ISSUANCE OF CONVERSION EXEMPTION CLEARANCE.

a. Legal basis b. Filing of the application for exemption clearance; documents required c. Processing of the application

LAND REDISTRIBUTION.

a. Qualified beneficiaries; order of priority b. Disqualified beneficiaries c. Distribution limit d. Award to beneficiaries; when rights and responsibility commence e. Ceilings of award for beneficiaries f. Landless beneficiary; meaning g. Payment by beneficiaries

h. Transferability of awarded lands; exception i. Standing crops at the time of acquisition

CORPORATE FARMS.

a. Farms owned or operated by corporations or other business associations b. Homelots and farmlots for members of cooperatives c. Corporate landowners d. Production-sharing e. Payment of shares of cooperative or association f. Valuation of lands

FINANCING.

a. Funding source b. Financial intermediary for the CARP

SUPPORT SERVICES.

a. Creation of Support Services Office b. Funding for support services c. Support services to the beneficiaries d. Support services to landowners e. Land consolidation

SPECIAL AREAS OF CONCERN.

a. Special areas of concern

PROGRAM IMPLEMENTATION.

a. The Presidential Agrarian Reform Council b. Executive Committee c. Secretariat d. Provincial Agrarian Reform Coordinating Committee (PARCCOM)

e. Province-by-province implementation f. Barangay Agrarian Reform Committee (BARC)

g. Functions of the BARC h. Legal assistance

GENERAL PROVISIONS.

a. Conversion of funds b. Exemptions from taxes and fees of land transfers c. Free registration of patents and titles d. Immunity of government agencies from undue interference e. Assistance of other government entities f. Disposition of private agricultural lands g. Bank mortgages h. Lease, management, grower or service contracts, mortgages and other claims i. Prohibited acts and omissions j. Penalties 3. Administrative adjudication; Jurisdiction a. Jurisdiction in general b. Nature of jurisdiction; issues covered c. Jurisdiction of the Regional and Provincial Adjudicator d. Functional relationships e. Role of the RARAB f. Appellate jurisdiction g. Quasi-judicial powers h. Technical rules not binding

i. Preferential attention in courts j. Rules and regulations

4. DARAB New Rules of Procedure GENERAL PRINCIPLES.

a. Legal basis b. Construction of the Rules c. Doubts to be resolved in favor of the beneficiary

PROCEEDINGS BEFORE THE BOARD OR ADJUDICATOR.

a. Nature of proceedings b. Role of Adjudicator in the proceedings c. Totality of case assigned d. Board regulations; assignment of cases e. En banc meeting f. Presiding officer g. Vote h. Hearing; amicable settlement

PROCEEDINGS BEFORE BARC.

a. Mediation and conciliation at barangay level; BARC certification b. Instances where BARC certification is not necessary c. Disputes involving land or parties in two or more barangays d. Issuance of BARC certification; period e. Importance of BARC certification f. Special rules on mediation and conciliation g. Conciliation of disputes

COMMENCEMENT OF ACTION.

a. Complaint or petition b. Venue c. Multiplicity of suit; splitting of cause of action d. Joining of causes of action e. Parties-in-interest f. Pauper litigant g. Associations or corporations as defendants

SERVICE OF PLEADINGS, NOTICES AND RESOLUTIONS.

a. Proof of service of pleadings, notices and resolutions b. Service upon associations c. Service upon private domestic corporation or partnership d. Service upon public corporations e. Return of service f. Proof and completeness of services g. Substituted service

SUMMONS, ANSWER, MOTIONS AND SUBMISSION OF EVIDENCE.

a. Issuance of summons, time to answer and submission of evidence b. Answer required c. Time to answer, non-extendible; exceptions d. No default upon failure to answer e. Motions; period to resolve f. Non-allowable motions g. Allowable motions h. Proof of service i. Intervention

APPEARANCES.

a. Representation and appearances b. Manner of appearance c. Assignment of DAR lawyer or Legal Officer d. Authority to bind party

INJUNCTION.

a. Preliminary injunction; when granted b. No restraining order or preliminary injunction c. No injunction to restrain tilling or harvesting

d. Temporary restraining order CONTEMPT.

a. Direct contempt; judgment immediately executory b. Indirect contempt c. Appeal from indirect contempt

RECORD AND DECISION.

a. Record of proceedings b. Memorandum/Draft decision c. Period to render decision d. Award of damages e. Summary procedure on preliminary determination of just compensation f. Finality of judgment g. Motion for reconsideration; grounds h. Petition for relief from judgment; grounds

APPEAL TO DARAB.

a. Appeal to the Board from decision of Adjudicator b. Appeal; grounds c. Appeal; where filed d. Caption e. Requisites for perfection of the appeal f. Appeal memorandum g. Records of the case h. Frivolous or dilatory appeal i. Withdrawal of appeal j. Period to decide case

APPEAL TO REGIONAL TRIAL COURT.

a. Appeal involving land valuation and preliminary determination and payment of just compensation

JUDICIAL REVIEW BY COURT OF APPEALS.

a. Appeal by certiorari; reglementary period; effect of appeal b. Findings of fact; final and conclusive c. Effect of appeal to Court of Appeals d. Revised Administrative Circular No. 1-95

THE SECRETARIAT.

a. Powers and duties of the Secretariat b. Access to the Board records c. Custody of the seal and books of the Board d. Calendar, General Docket and other books of the Board e. Issuance of certified true copies

FEES, CHARGES AND COST.

a. Fees, charges and cost; payment thereof b. Filing fees

c. Legal fees d. Where fees to be paid e. Sheriffs and other persons serving processes

f. Stenographers g. Witness’ fees

h. Costs i. Costs in actions or proceedings j. Dismissed action or appeal k. Attorney’s fees as costs l. Costs when witness fails to appear m. Government exempt from paying legal fees; exception n. Finality of decision; period to decide o. Frivolous appeals

EXECUTION OF DECISION.

a. Execution upon final order or decision b. Execution pending appeal c. Applicability of the Uniform Rules of Procedure of CAR

SPECIAL AGRARIAN COURT.

a. One court per province b. Special original and exclusive jurisdiction c. Application of the Rules of Court d. Period to decide e. Appointment of commissioners f. Orders of the Special Agrarian Court g. Appeal to the Court of Appeals h. Appeal from Court of Appeals to the Supreme Court i. Procedure on review; application of the Rules of Court j. Preferential attentions in courts

BOOK ONE

PRE-EMPLOYMENT ARTICLE 12 - Statement of objectives NOTES AND COMMENTS:

1. Manpower training, allocation and utilization 2. Local employment 3. Overseas employment 4. Representation in Congress 5. Migrant Workers Day

Title I RECRUITMENT AND PLACEMENT OF WORKERS CHAPTER I GENERAL PROVISIONS ARTICLE 13 - Definitions NOTES AND COMMENTS:

1. Additional terms defined in the implementing rules 2. Additional definitions in the POEA rules 3. Terms defined in the Migrant Workers and Overseas Filipinos Act of 1995 4. Additional terms defined in the Omnibus Rules and Regulations Implementing Republic Act No. 8042 ARTICLE 14 - Employment promotion NOTES AND COMMENTS: 1. Powers of the Secretary of Labor and Employment

2. Free placement services by public employment offices for domestic and overseas work 3. Placement of workers 4. Vocational guidance and testing 5. Occupational classification of registered applicants 6. Occupational-Industrial mobility of workers 7. Geographical movement of workers 8. Job clearance and information system 9. Submission of reports ARTICLE 15 - Bureau of Employment Services NOTES AND COMMENTS: 1. Bureau of Local Employment 2. Functions of the BLE 3. Decentralized functions ARTICLE 16 - Private recruitment NOTES AND COMMENTS: 1. Entities authorized to engage in recruitment and placement a. General rule; exceptions 2. Private recruitment under Article 18 3. Private recruitment under Article 25 4. Recruitment and placement for overseas employment by the POEA a. Hiring through the POEA b. Documentary requirements from employer c. Formalization of a recruitment agreement d. Recruitment and placement of workers e. Documentation of workers 5. Name hires a. Name hires ARTICLE 17 - Overseas Employment Development Board NOTES AND COMMENTS: 1. Repeal by Executive Order No. 797 2. Powers and functions of the POEA 3. Deregulation and phase-out a. Comprehensive deregulation plan on recruitment activities b. Gradual phase-out of regulatory functions of POEA c. Regulation of private sector participation; role of POEA 4. Decentralization of some POEA services 5. Validity of rules and regulations issued by POEA 6. Nationality of employer not material

ANTI-ILLEGAL RECRUITMENT PROGRAMS.

1. Anti-illegal recruitment policies

2. Legal assistance 3. Complaints for illegal dismissal; filing thereof 4. Action on complaint or report 5. Surveillance 6. Issuance of closure order 7. Implementation of closure order 8. Report on implementation 9. Institution of criminal action 10. Motion to lift a closure order a. When to entertain motion b. Who may file 11. Grounds for lifting or re-opening 12. Appeal 13. Re-closing or re-padlocking of office

RECRUITMENT VIOLATIONS AND RELATED CASES.

1. Jurisdiction and proceedings a. Jurisdiction of POEA b. Cases not falling within jurisdiction of POEA c. Nature of proceedings; administrative not criminal d. Venue e. Grounds for suspension, cancellation or revocation of license for overseas employment f. Filing of complaint; who may file g. Caption and title h. Contents of complaint or report i. Docket and assignment of cases j. Answer or Counter-Affidavit k. Failure to file Answer l. Service of subpoena duces tecum and subpoena ad testificandum m. Failure or refusal to obey subpoena duces tecum and subpoena ad testificandum n. Proof of completeness of service o. Motions for extension p. Authority to initiate clarifying questions q. Summary judgment r. Nature of proceedings

s. Effects of withdrawal or desistance t. Resolution of the case u. Who may issue orders or resolutions v. Contents of orders or resolutions w. Suspension of documentary processing x. Suspension of license pending investigation y. Suspension or cancellation of license z. Fines aa. Restraining orders bb. Effects of order of suspension or cancellation or revocation 2. Review of orders or decisions in recruitment violations and related cases a. Review; jurisdiction b. When to file c. Effects of filing a petition for review

d. Transmittal of the records of the case on petition for review 3. Execution of orders or decisions in recruitment violations and related cases a. Issuance of writ of execution for refund b. Issuance, form and contents of a writ of execution c. Lifetime of writ of execution d. Enforcement of writs e. Enforcement of bond f. Garnishment g. Return of writ of execution

EMPLOYER-EMPLOYEE RELATIONS CASES; MONEY CLAIMS; JURISDICTION.

1. Jurisdiction under the old rules 2. Jurisdiction under the new rules a. Jurisdiction under Republic Act No. 8042 b. Implementing Rules of R.A. No. 8042

EMPLOYER-EMPLOYEE RELATIONS CASES; MONEY CLAIMS; PROCEDURAL RULES UNDER THE NEW LAW.

1. The NLRC Interim Rules 2. Disposition of pending cases 3. Non-monetary claims cases 4. Venue 5. Turn-over of cases from POEA to NLRC 6. Raffle of cases; period to decide 7. Nature of proceeding before labor arbiter 8. Compromise settlement 9. New NLRC rules of procedure; application thereof 10. Appeal to the NLRC 11. Execution of decisions, orders, or awards 12. Non-compliance with mandatory periods to resolve cases; penalty

EMPLOYER-EMPLOYEE RELATIONS CASES; MONEY CLAIMS; PROCEDURAL RULES UNDER THE OLD LAW.

1. Necessity to discuss the old rules a. Venue b. Complaints; who may file c. Contents of complaint d. Docket and assignment of cases e. Service of summons f. Proof of completeness of service g. Pre-trial conference h. Waiver to file answer i. Notice of change of address j. Summary judgment k. Judgment based on position paper l. Clarifying questions m. Nature of proceedings n. Effects of settlement o. Resolution of the case p. Who may issue decisions, orders and resolutions

q. Contents of decisions, orders and resolutions r. Service and finality of orders/decisions 2. Appeals in employer-employee relations cases; money claims [under the old rules] a. Period of appeal b. Grounds of appeal c. Appeal; where filed d. Appeal fee e. Requisites for perfection of appeal f. Appeal bond g. No extension of period h. Appellee’s answer i. Immediate transmittal of records on appeal j. Records of cases 3. Execution of decisions in employer-employee relations cases [under the old rules] 4. Common provisions applicable to proceedings before POEA in employer-employee relations cases; money claims [under the old rules] a. Records of proceedings b. Appearances c. Action on motions d. Certification and fees e. Authority to administer oaths f. Consolidation of cases g. Prescription h. Liberal construction of rules i. Custody of seal and books j. Disqualification of erring bonding companies k. Applicability of the Revised Rules of Court

EMPLOYER-EMPLOYEE RELATIONS CASES WHERE VIOLATIONS OF RECRUITMENT REGULATIONS ARE ALLEGED AND/OR UNCOVERED.

a. Monetary or non-monetary claims; jurisdiction b. Effect of settlement of employer-employee relations aspect of the complaint on the uncovered or alleged recruitment violation/s c. Discovery of another offense

d. Discovery of another respondent

TERMINATION OF OVERSEAS EMPLOYMENT; EFFECT.

1. Present rule under Republic Act No. 8042 2. General legal precepts in termination cases 3. Indemnity for dismissal without due process 4. Award in foreign currency; proper currency to use 5. Doctrine of laches; application thereof 6. Quantum of evidence; burden of proof a. Substantial evidence b. Onus probandi c. Captain’s logbook; evidentiary value thereof

SOLIDARY LIABILITY OF LOCAL AGENCY WITH PRINCIPAL.

1. Legal bases a. Rule under Republic Act No. 8042 b. Rule under Rules to Implement the Labor Code c. Jurisprudential principles on solidary obligation 2. Severance of relations between local agent and foreign principal; effect on liability

CLAIMS FOR DEATH AND OTHER BENEFITS.

1. Jurisdiction under the old law 2. Jurisdiction under the new law 3. Distinction from death and compensation claims against State Insurance Fund under ECC jurisdiction 4. Death; basis of compensation 5. Work-connection required

DISCIPLINARY ACTION CASES.

1. POEA retains jurisdiction over disciplinary action cases 2. Grounds for disciplinary action 3. Handling of disciplinary action cases; procedure 4. Watchlist; who may be included 5. Penalties for breach of discipline 6. Penalty; effect on civil or criminal liability 7. Disqualification of contract workers 8. Delisting of name from POEA watchlist 9. Prescription of action

CODE OF DISCIPLINE FOR OVERSEAS CONTRACT WORKERS.

1. Obligations of overseas workers 2. Duty to Family 3. Duty to fellow contract worker 4. Duty to country 5. Duty to agency and/or employer 6. Duty to host country ARTICLE 18 - Ban on direct-hiring NOTES AND COMMENTS: 1. Ban on direct-hiring 2. Rationale for the ban 3. Suability of foreign corporation directly hiring Filipino workers ARTICLE 19 - Office of Emigrant Affairs NOTES AND COMMENTS: 1. Abolition of Office of Emigrant Affairs 2. Commission on Filipinos Overseas 3. Powers and functions of the Commission 4. Other relevant provisions of Batas Pambansa Bilang 79 a. Definition of “Filipinos Overseas” b. Secretariat ARTICLE 20 - National Seamen Board NOTES AND COMMENTS:

1. Repeal of paragraph [A] of Article 20 a. Repeal by Executive Order No. 797 b. Relevant cases 2. Repeal of paragraph [B] by Republic Act No. 8042 a. Labor Arbiters have original and exclusive jurisdiction over money claims; POEA has no more jurisdiction ARTICLE 21 - Foreign service role and participation NOTES AND COMMENTS:

1. Protection to migrant workers and overseas Filipinos a. Under Article 21

b. Under Republic Act No. 8042 2. Rights and enforcement mechanism under international and regional human rights systems 3. Country-team approach a. Priority concerns of Philippine foreign service posts b. Country-team approach; how carried out 4. Incentives to professionals and other highly-skilled Filipinos abroad 5. Travel advisory and information dissemination 6. Repatriation of workers and emergency repatriation fund a. Primary responsibility for repatriation b. Obligation to defray cost of repatriation c. Repatriation in case of fault of migrant worker d. Repatriation in case of war and other events e. Mandatory repatriation of underaged migrant workers f. Repatriation procedure g. Action on non-compliance h. Other cases of repatriation 7. Funds established for migrant workers and overseas Filipinos under Republic Act No. 8042 1. Migrant Workers Loan Guarantee Fund 2. Emergency Repatriation Fund 3. Legal Assistance Fund 4. Congressional Migrant Workers Scholarship Fund 8. Welfare Fund for Overseas Workers a. Rationale for its creation b. Welfare Fund for Overseas Workers c. Welfund source d. Administration of the Welfund e. Renaming of Administration to OWWA f. Responsibilities and powers g. Fund management 9. Performing Artists Provident Fund 10. Insurance coverage a. Mandatory life and personal accident insurance; funeral and medical benefits b. Self-insurance by OWWA c. Balik-Manggagawa d. Action on claim e. Mandatory war risk insurance f. Identification of war risk areas g. Duration of insurance coverage h. War risk premium pay for seafarers

i. Benefits and compensation awarded to beneficiary 11. Claims for death, disability and other benefits a. Payment of claims for death, disability and other benefits b. Administrative sanctions in case of failure or refusal to extend assistance 12. Welfare and employment services; assistance to workers a. Responsibility to assist workers b. Request for assistance c. Assistance in the enforcement of contractual obligations d. Assistance on matters not related to contractual obligations e. Welfare programs and activities 13. Conciliation of complaints a. Conciliation of complaints b. Complainant c. Conciliation proceeding d. Administrative sanction for failure to act on complaint 14. Workers’ orientation a. Pre-employment orientation b. Pre-departure orientation seminar c. Responsibility of providing a pre-departure orientation seminar d. Cost of PDOS e. Review and approval of PDOS programs and tie-ups; accreditation of PDOS trainors f. Requirement for accreditation of a non-governmental organization (NGO) g. Supervision and monitoring of PDOS activities h. Submission of PDOS reports i. Certificates of attendance j. PDOS for POEA-placed workers k. Other related programs and activities l. Sanctions 15. Manpower registry a. Manpower Registry or Skills Bank b. Membership in the Manpower Registry c. Agency manpower pool d. Disqualification from the Manpower Registry 16. Manpower research and development a. Research studies b. Manpower development program for overseas workers c. Development of training standard d. Implementation, supervision and regulation of training programs for overseas employment ARTICLE 22 - Mandatory remittance of foreign exchange earnings NOTES AND COMMENTS: 1. Mandatory obligation to remit foreign exchange earnings a. Reason why obligation is mandatory b. Coverage c. Mandatory obligation to remit d. Amount of foreign exchange remittances e. Form of remittance f. Procedure of remittance g. Failure or refusal to remit and trafficking in foreign currency h. Responsibility of employer or his representative

i. Obligation to report j. Proof of compliance k. Effect of non-compliance with the mandatory remittance requirement on issuance, renewal and extension of passport l. “Substantial compliance”, explained m. Effect of non-compliance with the mandatory remittance requirement on accreditation of employer, issuance of license or authority and approval/renewal of contracts of employment n. Conflict in mandatory remittance requirement and host country’s regulations on the matter o. Beneficiaries living with contract workers abroad p. Punitive provisions of Executive Order No. 857, repealed q. Role of embassy as channel for remittance r. Remittances of contract are not deemed personal deductions for income taxation purposes s. Filipino servicemen in U.S. defense installations t. Immigrants and Filipino employees of the United Nations u. Permanent Secretariat 2. Guidelines and mechanism to facilitate remittances I. Guidelines for group remittances [payroll system - 70%] II. Guidelines for individual remittance III. Implementation of guidelines IV. Sanctions 3. Overseas Workers Investment Fund a. Declaration of policy b. Scope c. Overseas Workers’ Investment Fund Board d. Powers and functions of the OWI Fund Board e. Debt purchase guidelines f. Investment instrument g. Additional incentives h. Coordinating agencies i. Contingency measures j. Initial funding k. Program period ARTICLE 23 - Composition of the Boards NOTES AND COMMENTS:

1. Amendment by Executive Order No. 247 2. Structural organization of POEA a. General organizational structure

b. Additional membership in the POEA Governing Board c. Regional extension units

ARTICLE 24 - Boards to issue rules and collect fees NOTES AND COMMENTS: 1. Rule-making power 2. Power to impose and collect fees CHAPTER II REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES ARTICLE 25 - Private sector participation in the recruitment and placement of workers ARTICLE 26 - Travel agencies prohibited to recruit

ARTICLE 27 - Citizenship requirement ARTICLE 28 - Capitalization ARTICLE 29 - Non-transferability of license or authority ARTICLE 30 - Registration fees ARTICLE 31 - Bonds NOTES AND COMMENTS: 1. Introduction 2. Who may participate in the private sector 3. Applicable rules a. Rules and regulations for Local Employment b. Rules and regulations for Overseas Employment 4. Local recruitment and placement a. Definition of important terms b. Licensing of local recruitment and placement agencies c. Authorizing establishment/renewal of branch offices d. Granting of authority/renewal to recruiters e. Placement fee, service fee and other charges f. Renewal of license of private recruitment and placement agency g. Cancellation or suspension of license h. Inspectorate and enforcement functions 5. Overseas recruitment and placement

GENERAL POLICY.

a. General statement of policy LICENSING AND REGULATION.

Participation of the Private Sector in the Overseas Employment Program a. Qualifications for participation in the Overseas Employment Program b. Disqualifications Issuance of License a. Requirements for issuance of license b. Action on the application c. Issuance of license d. Payment of fees and posting of bonds e. Validity of license f. Non-transferability of license g. Change of ownership or relationship of single proprietorship or partnership h. Upgrading of single proprietorship or partnership i. Change of directors of corporation j. Change of other officers and personnel k. Appointment of representatives l. Publication of change of directors/other officers and personnel; revocation of amendment of appointment of representatives m. Transfer of business address and studio n. Establishment of executive office o. Establishment of branch and extension offices p. Conduct of recruitment outside of registration office, branch or extension office q. Renewal of license

r. Non-expiration of license s. Action on renewal of license t. Failure to renew u. Denial of renewal of license v. When to consider cash bond or deposit in escrow garnished w. Replenishment of cash surety bond or deposit in escrow x. Refund of cash bond or release of deposit in escrow y. Evaluation of performance of agencies z. Classification and ranking Registration of Philippine-registered Vessels a. Registration of Philippine shipping companies b. Validity period of special registration c. Requisites for renewal Inspection of Agencies a. Inspection before licensing

b. Inspection of agencies c. Authority to inspect

d. Subject of inspection e. Inspection procedure f. Violation found in the course of inspection Placement Fees and Documentation Costs a. Fees chargeable against principals b. Fees or costs chargeable from workers c. Prohibition on charging of other fees d. Seafarer’s Welfare Fund contribution e. Charges deductible from fees by withdrawing workers Advertisement for Overseas Job Vacancies a. Advertisement for publication or broadcasts of job vacancies of accredited foreign principal or project in print, radio or television b. Advertisement for manpower pooling by agencies c. Press releases on recruitment d. Sanctions e. Foreign advertisers for overseas job vacancies f. Advertisement of multinationals and transnationals based in the Philippines Trade test and Medical Examination for Overseas Employment a. When to conduct trade tests b. Scope of trade tests c. When to conduct medical examination Departure of Contract Workers a. Labor Assistance Center (LAC) b. POEA clearance for special cases c. Coordination with government functionaries

PLACEMENT BY THE PRIVATE SECTOR.

Accreditation of Principals and Projects a. Application for accreditation of principals and projects b. Requirements for accreditation c. Verification or authentication of documents d. Parties to the agreement e. Accreditation of principals

f. Transfer of accreditation g. Actions on applications for accreditation of projects whose contracting partners/principals have outstanding obligations h. Approval and validity of accreditation i. Revocation of accreditation j. Blacklisting of persons, principals and contracting partners Documentary Processing a. Recruitment order or crew order b. Documentary processing c. Payment of processing fees d. Workers’ deployment e. One-Stop Processing Center f. Balik-Manggagawa processing g. Agency-endorsed returning workers; no-deployment fees

MARKET DEVELOPMENT AND FORMULATION OF EMPLOYMENT STANDARDS.

Market Development a. Market promotion and development b. Market research and planning c. Market promotions Formulation of Employment Standards a. Employment standards b. Minimum provisions for contract c. Standard employment contract d. Validity of standard form contracts e. Invalidity of contract diminishing salary and benefits; exception f. Interpretation of contract g. Governing law h. SSS coverage 6. Overseas construction industry a. Declaration of policy b. Definition of terms c. Incentives to Filipino overseas contractors d. Internationally-bid local projects e. Priority in hiring f. Registration g. Composition of Board h. Strategies and programs for developing the Philippine overseas construction industry i. Coordination of strategies and policies j. Powers and functions of the POCB k. Rules and regulations l. Meeting and quorum m. Remuneration of members of the Board n. Executive staff o. Special attaches p. Penal provisions 7. Guidelines governing the employment of construction workers overseas a. Statement of objectives b. Statement of policy c. Definition of terms

d. Accredited contractual arrangements e. Exempted workers f. Qualifications for registration g. Accreditation of principals or projects h. Training i. Monitoring and control of overseas projects j. Suspension or cancellation of registration k. Fees 8. Deployment of performing artists a. Circular No. 01-91 b. Comprehensive welfare program for performing artists overseas 9. Deployment of Filipinos in foreign households a. Policy b. Administration c. Coverage d. Authorized hirings e. Qualification requirements f. Processing g. Minimum contract terms/conditions h. Travel arrangements i. Service and other fees ARTICLE 32 - Fees to be paid by workers NOTES AND COMMENTS: 1. Placement and documentation fees 2. Refund of fees illegally collected 3. Government fees and administrative costs 4. Abolition of repatriation and performance bond 5. Exemption from travel tax and airport fee ARTICLE 33 - Reports on employment status NOTES AND COMMENTS: 1. Reports required 2. Qualifying standard of the exercise of power 3. Consequence of failure to comply with reportorial requirements ARTICLE 34 - Prohibited practices NOTES AND COMMENTS: 1. Acts or practices prohibited a. Coverage b. Paragraph [a] of Article 34 c. Paragraphs [b] and [c] of Article 34 d. Paragraph [d] of Article 34 e. Paragraph [e] of Article 34 f. Paragraph [f] of Article 34 g. Paragraphs [g] and [h] of Article 34 h. Paragraph [i] of Article 34 i. Paragraph [j] of Article 34 j. Paragraph [k] of Article 34 2. Application of law to both local and overseas employment 3. Local employment a. Prohibited practices b. Fines and schedule of penalties 4. Overseas employment

ARTICLE 35 - Suspension and/or cancellation of license or authority NOTES AND COMMENTS: 1. Suspension or cancellation of license for overseas employment a. Grounds for suspension/cancellation of license b. Grounds for revocation of license for overseas employment CHAPTER III MISCELLANEOUS PROVISIONS ARTICLE 36 - Regulatory Power NOTES AND COMMENTS: 1. Nature of power 2. Exercise of the power ARTICLE 37 - Visitorial power NOTES AND COMMENTS: 1. Visitorial power 2. Obstruction of exercise of visitorial power ARTICLE 38 - Illegal recruitment NOTES AND COMMENTS:

1. Application of Article 38 to both local and overseas employment 2. Concept of illegal recruitment

3. Illegal recruitment as defined in various laws and rules a. Illegal recruitment as defined in Republic Act No. 8042 and its Implementing Rules b. Illegal recruitment as defined in Article 38 c. Illegal recruitment as defined in the POEA rules 4. Elements of illegal recruitment a. First element: recruitment and placement activities b. Second element: Non-licensee or non-holder of authority 5. Illegal recruitment, when considered economic sabotage a. Crime involving economic sabotage b. By a syndicate c. In large scale 6. Elements of illegal recruitment by a syndicate 7. Elements of large scale illegal recruitment 8. Commission of other crimes in the process of illegal recruitment 9. Persons criminally liable for illegal recruitment 10. Independent administrative action 11. Prohibition on government officials and employees 12. Venue of criminal action for illegal recruitment 13. Mandatory periods for resolution of illegal recruitment cases 14. Prescriptive period of illegal recruitment cases a. Under Republic Act No. 8042 b. Under the Labor Code 15. Free legal assistance; witness protection program 16. Warrants of arrest, search and seizure a. Power of the Secretary; legislative history b. Power under paragraph [c], Article 38 c. Power under the Rules to Implement the Labor Code 17. Power to arrest and order search and seizure declared unconstitutional and null and void 18. Judicial recourse 19. Warrantless arrest and searches and seizures

20. Power to order closure ARTICLE 39 - Penalties NOTES AND COMMENTS: 1. Penalties in general a. Application to local employment b. Application to overseas employment c. Illegal recruitment constituting economic sabotage 2. Penalty for violations committed by licensees or holders of authority 3. Penalty for violations committed by non-licensees or non-holders of authority 4. Persons liable if committed by juridical persons 5. Effect of conviction 6. Application of Article 288 Title II EMPLOYMENT OF NON-RESIDENT ALIENS ARTICLE 40 - Employment permit of non-resident aliens NOTES AND COMMENTS: 1. Guidelines for the issuance of Alien Employment Registration Certificate (AERC) a. Definition of important terms b. Coverage c. Securing of AERC irrespective of source of compensation d. Documents required e. Place to apply for an AERC f. Validity of AERC g. Denied application; mode of appeal h. Registration fee i. Limitations imposed on hiring of alien workers 2. Revised Guidelines for the Issuance of Alien Employment Permit a. Definition of terms b. Coverage c. Employment permit required for entry d. Securing of employment permit irrespective of source of compensation e. Exemption from permit f. Documents required g. Place to apply for an employment permit h. Designation of understudies i. Exemption from the understudy requirement j. Submission of the understudy program k. Supervision over the understudy program l. Understudy program progress report m. Change of understudies n. Issuance of employment permit o. Period of validity of employment permit p. Permit fee q. Advice to CID r. Extension of employment permit ARTICLE 41 - Prohibition against transfer of employment NOTES AND COMMENTS: 1. Prohibition and grounds for cancellation of permit a. Prohibition under Article 41 b. Grounds for cancellation of AERC

c. Cancellation or revocation of employment permit 2. Penalty for violation of Title II, Book I ARTICLE 42 - Submission of list NOTES AND COMMENTS: 1. Required submission of list 2. Submission of list of aliens employed

BOOK TWO HUMAN RESOURCES DEVELOPMENT PROGRAM

Title I NATIONAL MANPOWER DEVELOPMENT PROGRAM CHAPTER I NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION ARTICLE 43 - Statement of objective NOTES AND COMMENTS: 1. TESDA Act of 1994 a. Republic Act No. 7796 b. Declaration of policy c. Statement of goals and objectives ARTICLE 44 - Definitions NOTES AND COMMENTS: 1. Terms defined under the Rules to Implement Book II of the Labor Code 2. Relevant terms defined under the TESDA Act of 1994 ARTICLE 45 - National Manpower and Youth Council; Composition NOTES AND COMMENTS: 1. TESDA replaced and absorbed NMYC 2. TESDA; creation 3. TESDA Board a. Composition b. Term of office c. Change of membership d. Meetings and emoluments e. Powers of the TESDA Board f. Functions of the TESDA Board 4. TESDA budget 5. Compliance with salary standardization law 6. Transfer of personnel of NMYC and BTVE ARTICLE 46 - National Manpower Plan NOTES AND COMMENTS: 1. National Manpower Plan formulated by NMYC 2. Programs and activities in technical education and skills development under the TESDA Act of 1994 3. Comprehensive Development Plan for Middle-Level Manpower a. The plan b. President’s approval c. Assistance of private sector and the academe d. Reformed industry-based training program e. Review and endorsement of agencies’ budgets f. TESDA’s evaluation of agencies’ programs g. Submission of reports to TESDA 4. Devolution of TESDA’S training functions to local government ARTICLE 47 - National Manpower Skills Center

NOTES AND COMMENTS: 1. Skills Development Centers 2. Technical Education and Skills Development Committees a. The Committees b. TESDA Committees’ relations to local development councils c. Composition of the TESDA Committees ARTICLE 48 - Establishment and formulation of skills standards NOTES AND COMMENTS: 1. National standards of trade skills under Article 48 and its implementing rules 2. Establishment and administration of national trade skills standards under the TESDA Act of 1994 3. Skills development opportunities 4. Skills olympics ARTICLE 49 - Administration of training programs NOTES AND COMMENTS: 1. Administration of training programs under Article 49 and its implementing rules 2. Administration of training programs under the TESDA Act of 1994 3. Assistance to employers and organizations 4. Coordination of all skills training schemes 5. Technical and vocational schools and training centers a. Public technical and vocational schools b. Private technical and vocational schools c. Training centers 6. User-led or market-driven strategy 7. Dual Training System Act of 1994 a. Republic Act No. 7686 b. Implementing Rules of Republic Act No. 7686 c. Declaration of policy d. Objectives e. Definition of terms f. Institutionalization of the dual training system g. Coverage h. Appropriate authority; organization and structure i. Appropriate authority - TESDA j. Powers and functions of the BTVE k. Accreditation; general provisions l. Accreditation of educational institutions m. Accreditation of establishments n. Curricular regulations o. Planning and coordination p. Incentives for participating establishments; tax deductibility q. Assistance r. Obligation of BTVE (now TESDA) to train instructors, etc s. Obligations of accredited agricultural, industrial and business establishments t. Obligations of the accredited educational institutions or training centers u. Obligations of the trainee v. Status of trainee w. Non-diminution of incentives x. Signing of Memorandum of Agreement y. Revolving fund

z. Other exemption from taxes and duties aa. Sanctions for offenses and violations 8. The TESDA Development Fund a. The Fund b. The Administrator and Fund Manager c. Expert group on funding scheme d. Levy and grant scheme e. Fees and charges f. Instructional improvement fund 9. Scholarship grants 10. Power of TESDA to review and recommend actions ARTICLE 50 - Industry boards NOTES AND COMMENTS: 1. Industry boards under Article 50 and its implementing rules 2. Industry boards under the TESDA Act of 1994 ARTICLE 51 - Employment service training functions NOTES AND COMMENTS: 1. Employment promotion scheme 2. Studies and research 3. Research and continuous assessment and studies 4. Evaluation ARTICLE 52 - Incentive Scheme NOTES AND COMMENTS: 1. Incentive scheme under Article 52 and its implementing rules 2. Incentive schemes under the TESDA Act of 1994 3. Labor training expenses as income tax deduction 4. Deductibility of labor training costs for apprentices ARTICLE 53 - Council secretariat NOTES AND COMMENTS: 1. TESDA Secretariat a. TESDA Secretariat; functions and responsibilities 2. The Director-General 3. The Deputy Directors-General 4. The Chief of Services for Administration 5. Structural organization and personnel a. Planning Office (PO b. Skills Standards and Certification Office (SSCO) c. National Institute for Technical Vocational and Education Training (NITVET) d. Office of Formal Technical Vocational Education and Training (OFTVET) e. Office of the Non-Formal Technical-Vocational Education and Training (ONFTVET) f. Office of Apprenticeship (OA) g. Creation of other offices by TESDA ARTICLE 54 - Regional manpower development offices NOTES AND COMMENTS: 1. Regional manpower development offices under Article 54 2. TESDA regional offices under the TESDA Act of 1994 3. TESDA provincial offices ARTICLE 55 - Consultants and technical assistance, publication and research

NOTES AND COMMENTS: 1. Consultants and technical assistance, publication and research ARTICLE 56 - Rules and regulations NOTES AND COMMENTS: 1. Rule-making power 2. Review of TESDA performance Title II TRAINING AND EMPLOYMENT OF SPECIAL WORKERS CHAPTER I APPRENTICES ARTICLE 57 - Statement of objectives NOTES AND COMMENTS: 1. Statement of objectives 2. Apprenticeship program to be implemented and administered by TESDA 3. Office of Apprenticeship (OA) created under the TESDA Act of 1994 ARTICLE 58 - Definition of terms NOTES AND COMMENTS: 1. Terms defined in the implementing rules 2. Relevant terms defined in the TESDA Act of 1994 and its implementing rules ARTICLE 59 - Qualifications of apprentice NOTES AND COMMENTS: 1. Qualifications of apprentices 2. Conflict in the age requirement 3. Imposition of additional requirement on physical fitness, valid a. Validity of physical fitness requirement b. Total physical fitness not an absolute requirement c. Free physical examination 4. Certificate of completion of apprenticeship 5. Certificate, evidence of skills ARTICLE 60 - Employment of apprentices NOTES AND COMMENTS: 1. Who may establish programs 2. Assistance by non-profit entities 3. Apprenticeable trades 4. Participation in standards setting ARTICLE 61 - Contents of apprenticeship agreements NOTES AND COMMENTS: 1. Contents of apprenticeship agreement 2. Apprenticeship period 3. Hours of work of apprentices 4. Previous training or experience 5. Wage rate of apprentices 6. Model apprenticeship standards 7. Recognition of apprenticeship programs 8. Without DOLE approval of agreement, apprentice becomes regular employee 9. Benefits accruing to recognition ARTICLE 62 - Signing of apprenticeship agreement NOTES AND COMMENTS: 1. Parties to agreement 2. Copies of agreement to be furnished government agency 3. Tripartite apprenticeship committees

4. Non-tripartite apprenticeship committees 5. Duties of apprenticeship committees 6. Creation of an ad hoc advisory committee 7. Certificate of meritorious service issued to apprenticeship committees ARTICLE 63 - Venue of apprenticeship programs NOTES AND COMMENTS: 1. Apprenticeship schemes 2. Use of training centers 3. Priority in use of training centers ARTICLE 64 - Sponsoring of apprenticeship program NOTES AND COMMENTS: 1. How apprenticeship program may be undertaken 2. Venues of on-the-job training 3. Explicit description of on-the-job training ARTICLE 65 - Investigation of violation of apprenticeship agreement NOTES AND COMMENTS: 1. Investigation of violation of apprenticeship agreement 2. Valid causes to terminate apprenticeship agreement a. Who may terminate b. Termination by employer c. Termination by apprentice 3. Procedure of termination of apprenticeship ARTICLE 66 - Appeal to the Secretary of Labor and Employment NOTES AND COMMENTS: 1. Remedy of appeal; reglementary period ARTICLE 67 - Exhaustion of administrative remedies NOTES AND COMMENTS: 1. Enforcement of agreement ARTICLE 68 - Aptitude testing of applicants NOTES AND COMMENTS: 1. Aptitude tests 2. Passing aptitude test is a minimum requirement ARTICLE 69 - Responsibility for theoretical instruction NOTES AND COMMENTS: 1. Theoretical instructions by employer 2. Ratio of theoretical instructions and on-the-job training ARTICLE 70 - Voluntary organization of apprenticeship programs; exemptions NOTES AND COMMENTS: 1. General rule 2. Exceptions ARTICLE 71 - Deductibility of training costs NOTES AND COMMENTS: 1. Deductibility of cost of training apprentices; requisites 2. Certification from DOLE ARTICLE 72 - Apprentices without compensation NOTES AND COMMENTS: 1. Apprentices without compensation CHAPTER II LEARNERS ARTICLE 73 - Learners defined

NOTES AND COMMENTS: 1. Definition of terms under the implementing rules 2. Definition of relevant terms under the TESDA Act of 1994 and its implementing rules

3. Learnership program to be implemented and administered by TESDA ARTICLE 74 - When learners may be hired NOTES AND COMMENTS: 1. Circumstances when learners may be hired 2. Approval of learnership program ARTICLE 75 - Learnership agreement NOTES AND COMMENTS: 1. Contents of learnership agreement 2. Parties to learnership agreement 3. Employment of minors as learners 4. Wage rate of learners 5. Cancellation of learnership programs ARTICLE 76 - Learners in piecework NOTES AND COMMENTS: 1. Special rule for learners in piecework ARTICLE 77 - Penalty clause NOTES AND COMMENTS: 1. General penalty clause 2. Penalties are penal in nature CHAPTER III HANDICAPPED WORKERS ARTICLE 78 - Definition NOTES AND COMMENTS: 1. Definition according to Article 78 and its implementing rules 2. Definition according to Republic Act No. 6640 ARTICLE 79 - When employable NOTES AND COMMENTS: 1. Justification for employment of handicapped workers ARTICLE 80 - Employment agreement NOTES AND COMMENTS: 1. Employment agreement 2. Contents of employment agreement

3. Wage rate of handicapped workers 4. Inspection of agreement by the Secretary of Labor and Employment

5. Copy of agreement to be furnished to DOLE ARTICLE 81 - Eligibility for apprenticeship NOTES AND COMMENTS: 1. Eligibility for apprenticeship and learnership 2. Wage rate of handicapped worker if hired as apprentice or learner

BOOK THREE

CONDITIONS OF EMPLOYMENT Title I WORKING CONDITIONS AND REST PERIODS CHAPTER I HOURS OF WORK ARTICLE 82 - Coverage

NOTES AND COMMENTS: 1. Employees covered 2. Employees not covered

a. Government employees b. Managerial employees

c. Other officers or members of a managerial staff d. Domestic servants and persons in the personnel service of another e. Workers paid by results f. Non-agricultural field personnel g. Members of the family of the employer 3. Provisions referred to under the exclusionary clause 4. Existence of employer-employee relations a. Necessity to establish employment relationship b. Employment relationship; contractual and voluntary in nature c. Existence of employment relationship; a question of fact and law 5. Employer and employee; distinction 6. Test of employment relationship a. Absence of uniform test prescribed by law or jurisprudence b. Four elements of employment relationship c. Selection and engagement of employee, payment of wages and power of dismissal d. Control test; the controlling test e. Article 280; not yardstick to determine employment relationship 7. Cases where employment relations exist 8. Cases where employment relations do not exist 9. Cases where the law itself does not create the employment relationship 10. Quantum of evidence required to prove employment relationship ARTICLE 83 - Normal hours of work NOTES AND COMMENTS: 1. Normal hours of work of employees a. Rationale for the law b. 8-hour normal working hours c. Broken hours d. Work in different shifts 2. Work day, how reckoned 3. Work week; how reckoned 4. Reduction of eight-hour working day 5. Shortening of work week 6. Hours of work of part-time workers 7. Hours of work of hospital and clinic personnel a. Coverage b. Definition of terms c. Determination of bed capacity and population d. Determination of size of population e. Regular working hours of hospital or clinic personnel f. Regular working days of hospital or clinic personnel g. Overtime work of hospital or clinic personnel h. Hours worked of hospital or clinic personnel i. Additional compensation for work on holidays and rest days 8. Policy Instructions No. 54 9. Hours of work of public health workers

a. Republic Act No. 7305 b. Public health workers; defined c. Public health workers; hours worked d. Overtime work of public health workers e. Work of public health workers during rest day f. Night-shift differential of public health workers ARTICLE 84 - Hours worked NOTES AND COMMENTS: 1. Compensable hours worked 2. Principles in determining hours worked 3. Coffee breaks and rest period of short duration 4. Waiting time 5. Sleeping, when considered compensable 6. Working while on call 7. Travel time a. Travel from home to work b. Travel that is all in the day’s work c. Travel away from home 8. Attendance in lectures, meetings and training programs 9. Effect of power interruptions or brown-outs 10. Work suspension due to peace and order disturbance 11. Attendance in CBA negotiations 12. Attendance in grievance meetings 13. Attendance in hearings or conferences in cases filed by employees against employer 14. Attendance or participation in strikes 15. Working time of seamen 16. Semestral break of teachers ARTICLE 85 - Meal periods NOTES AND COMMENTS: 1. General rule on meal period 2. Shortening of meal time to not less than 20 minutes; when compensable 3. Shortening of meal time to not less than 20 minutes, when no compensable 4. Shortening of meal time to less than 20 minutes; effect 5. Mealtime involving several shifts ARTICLE 86 - Night shift differential NOTES AND COMMENTS: 1. Rationale for additional compensation for night shift work 2. Employees not covered 3. Percentage of night shift differential pay 4. Additional compensation for work performed during night shift 5. Night shift differential and overtime pay; distinction 6. Additional compensation for work on scheduled rest day/special day 7. Additional compensation for work on regular holidays 8. Relation to existing individual or collective bargaining agreements or company practice or policy 9. Computation of night shift differential pay a. Where night shift (10 p.m. to 6 a.m.) work is regular work b. Where night shift (10 p.m. to 6 a.m.) work is overtime work c. For overtime work in the night shift 10. Illustrations

ARTICLE 87 - Overtime work NOTES AND COMMENTS: 1. Overtime work rendered after normal eight (8) hours of work a. Reason for payment of overtime pay

2. Additional compensation for overtime work on ordinary working days 3. Regular wage or basic salary; meaning for purposes of computing overtime pay 4. Premium pay; defined

5. Overtime pay; defined 6. Premium and overtime pay for holiday and rest day work a. Premium for work on special holidays (now special days) or designated rest days not falling on regular holidays b. Overtime pay for work performed on special holidays and rest days not falling on regular holidays c. Entitlement of employees in public utility enterprises and in non-profit institutions d. Premium pay for regular holiday work e. Overtime pay for work performed on regular holidays f. Overtime pay for work performed on regular holidays falling on the scheduled rest day 7. Illustrations 8. Stipulated overtime rates 9. Waiver of overtime pay; effect of laches or estoppel a. Waiver of overtime pay b. Laches or estoppel 10. Payment of overtime pay cannot cause distortion 11. Payment of overtime pay is not unjust enrichment 12. Built-in overtime pay 13. Basis of claim for overtime pay 14. Teaching overload and overtime in private schools ARTICLE 88 - Undertime not offset by overtime NOTES AND COMMENTS: 1. Situations contemplated under Article 88 2. Meaning of undertime work ARTICLE 89 - Emergency overtime work NOTES AND COMMENTS: 1. Compulsory overtime work 2. Provisions of the implementing rules 3. The general rule remains that no employee may be compelled to render overtime work against his will 4. Rule when employee refuses to render emergency overtime work ARTICLE 90 - Computation of additional compensation NOTES AND COMMENTS: 1. Meaning of “regular wage” as basis of computation 2. Non-diminution of benefits, supplements or payments CHAPTER II WEEKLY REST PERIODS ARTICLE 91 - Right to weekly rest day NOTES AND COMMENTS: 1. Rationale for the law 2. Coverage 3. Business on Sundays and holidays

4. Weekly rest day 5. Preference of employee 6. Schedule of rest day 7. Waiver of compensation for work on rest days and holidays; invalidity thereof ARTICLE 92 - When employer may require work on a rest day. NOTES AND COMMENTS:

1. When work on rest day compulsory and authorized 2. Observations on Article 92 vis-à-vis its implementing rule

3. Exclusive character of the enumeration in Article 92 and its implementing rules ARTICLE 93 - Compensation for rest day, Sunday or holiday work NOTES AND COMMENTS: 1. Employees not covered 2. Additional compensation for work on rest day or Sunday or holiday a. Premium pay for work on scheduled rest day b. Premium pay for work on Sunday when it is employee’s rest day c. Premium pay for work performed on Sundays and holidays when employee has no regular workdays and no scheduled regular rest days d. Premium pay for work performed on special holidays (now special days) which fall on employee’s scheduled rest day e. Additional compensation for work on regular holiday

e. Higher rate provided in agreements 2. Illustrations 4. Paid-off days 5. Relation to agreement

CHAPTER III HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES ARTICLE 94 - Right to holiday pay NOTES AND COMMENTS: 1. Holiday pay; meaning and purpose 2. Coverage, exceptions 3. Distinction between monthly-paid and daily-paid employees 4. Status of employees paid by the month a. Provisions declared null and void b. Proper divisor to obtain daily equivalent of monthly salary c. Reimbursement of overpayment in overtime pay due to use of 251 as divisor; effect of mistake d. Computation should be similarly handled e. When entitlement to holiday pay of monthly-paid employees should commence f. Withdrawal of holiday pay benefit

5. CBA stipulation on holiday pay; effect 6. Payment of regular daily wage for unworked regular holiday 7. Compensation for work on regular holiday a. 200% compensation for regular holiday work

b. Illustration 8. Compensation for work on regular holiday falling on scheduled rest day a. 260% compensation for regular holiday work on scheduled rest day

b. Illustration 9. Overtime pay for regular holiday work

10. Overtime pay for regular holiday work falling on the scheduled rest day 11. Rules involving special days

a. “Special holidays” now known as “special leaves” b. Principle of “no work, no pay“ applies to special days c. Exception to “no work, no pay” rule d. Premium pay for work performed during special days e. Premium pay for work performed during special days falling on scheduled rest day 11. Effect of absences on entitlement to holiday pay a. Employees on leave of absence with pay b. Employees on leave of absence without pay c. Employees on leave while on SSS or employee’s compensation benefits d. When day preceding regular holiday is a non-working day or scheduled rest day 12. Holiday pay during temporary or periodic shutdown and temporary cessation of work a. Temporary or periodic shutdown or cessation of work not due to business reverses b. Temporary cessation of operation due to business reverses 13. Holiday pay of certain employees a. Private school teachers b. Holiday pay of hourly-paid teachers c. Covered employees paid by results or output; distinction between supervised and unsupervised workers d. Seasonal workers e. Employees with no regular working days f. Holiday pay of field personnel

14. Regular holiday falling on rest days or Sundays a. Regular holiday falling on scheduled rest day b. Regular holiday falling on a Sunday c. Effect on monthly-paid employees of regular holidays falling on a

Sunday; employer has no obligation to pay extra 15. Successive regular holidays 16. Two regular holidays falling on the same day a. Payment of holiday pay b. Compensation for April 9, 1993, a unique day c. Effects on existing agreements and company policies/practices 17. Relation to agreements 18. List of regular holidays and special days under Executive Order No. 203 a. Executive Order No. 203 b. List of regular holidays and special days c. Observations on Executive Order No. 203 vis-à-vis Article 94 [c] d. Change in nomenclature e. Distinction between “regular holidays” and “special day” f. General election; effect 19. Repeal of Article 94 [c] by Executive Order No. 203 20. Muslim holidays 21. Effect of failure to show proof of payment of holiday pay

ARTICLE 95 - Right to service incentive leave NOTES AND COMMENTS: 1. Rationale for the law 2. Coverage; exceptions 3. Other exempted establishments 4. Right to service incentive leave. 5. Meaning of “one year of service” 6. Accrual of service incentive leave benefit 7. Commutation to cash; basis of computation a. Commutability to cash if unused b. Basis of computation c. Illustration d. Rationale for leave credit accumulation and cash conversion 8. Grant of service incentive leave benefit in excess of that provided by Article 95 9. Right of part-time or contractual workers to service incentive leave 10. No Labor Code provision on vacation leave or sick leave or other forms of leave 11. Effect of failure to show proof of payment of service incentive leave pay ARTICLE 96 - Service charges NOTES AND COMMENTS: 1. Coverage a. Establishments covered b. Employees covered. 2. Distribution of service charges a. Percentage of sharing. b. The P2,000.00 rule. 3. Frequency of distribution 4. Rule if collection of service charge is abolished 5. Tips Title II WAGES CHAPTER I PRELIMINARY MATTERS ARTICLE 97 - Definitions NOTES AND COMMENTS: 1. Person a. Person, in general b. Individual or single proprietorship; defined c. Partnership; meaning d. Corporation; defined. e. Business trust, legal representatives or any organized group of persons. 2. Employer and employee 3. Agriculture a. Agriculture; items included b. Agriculture; items not included c. Plantation and non-plantation agricultural enterprise; meaning d. Significance in the legal definition of “agriculture” 4. Wage a. Attributes of wage

b. Cash wage c. “Wage”, “salary” and “pay”; distinction d. Commission; nature and treatment as part of wage 5. Actual work; basis of claim for wages 6. Facilities a. Facilities, meaning b. Value of facilities c. Good accounting practices; meaning d. Depreciation; meaning e. Voluntary acceptance of facilities 7. Supplements a. Supplements; meaning 8. Facilities and supplements; distinction 9. Rule on deductibility of facilities and supplements 10. Gratuity and allowances a. Gratuity; meaning b. Allowances. ARTICLE 98 - Application of title NOTES AND COMMENTS: 1. Coverage 2. Exceptions under the implementing rules CHAPTER II MINIMUM WAGE RATES ARTICLE 99 - Regional minimum wages NOTES AND COMMENTS: 1. Minimum wage; concept and rationale a. Concept b. Rationale 2. Regional minimum wages 3. Regional minimum wage rates/statutory minimum wage 4. Basis of minimum wage 5. Choice of factors/divisors; management prerogative 6. Reckoning of unpaid wages or wage differentials in illegal dismissal cases. 7. Wage rules affecting private educational institutions a. Background b. Observations c. Wage increases mandated by law; how applied d. Chargeability to Wage Orders of wage increases from incremental proceeds in tuition fee increases 8. Conversion of employees from daily-paid to monthly-paid 9. Guidelines for computation of the equivalent monthly rate [EMR] of monthly-paid and daily-paid employees a. For monthly-paid employees b. For daily-paid employees c. For private school teachers; where the educational institution uses a definite factor A. Collegiate level B. Secondary level. C. Elementary level d. For private school teachers; where the instructor is paid on the basis of student contact hour or paid by the hour 10. Teaching loads prescribed by DECS for teachers 11. Salaries of public health workers

a. Salaries b. Additional compensation/allowance c. Hazard allowance d. Subsistence allowance e. Longevity pay f. Laundry allowance g. Remote assignment allowance h. Housing i. Medical examination . j. Compensation for injuries k. Leave benefits for public health workers l. Prohibition against double recovery of benefits m. Prohibition against elimination and/or diminution n. Penal provision 12. Laws granting minimum wages and living allowances a. Laws generally applicable to entire country b. Wage Orders passed by the Regional Tripartite Wages and Productivity Boards 13. Integration of monetary benefits into basic pay ARTICLE 100 - Prohibition against elimination or diminution of benefits NOTES AND COMMENTS: 1. Application of Article 100 2. The law mentions date of promulgation not effectivity date of the Labor Code 3. Rules providing for non-diminution or non-elimination clause 4. Company practice; factors indicative thereof 5. Bonus a. General rule; not demandable or enforceable b. Bonus; when demandable and enforceable c. Prescriptive period of claims for bonus d. Forfeiture of bonus. 6. Thirteenth-month pay a. Presidential Decree No. 851 and its implementing rules b. Policy instructions No. 5 [13th-month bonus for multiple employers] c. Memorandum Order No. 28 and its guidelines d. DOLE Bulletin on inclusion of teachers’ overload pay in 13th-month pay determination e. Republic Act No. 7833 [tax exemption of 13th-month pay] f. Revenue Memorandum Circular No. 36-94 [tax exemption of 13th-month pay and other benefits] 7. Productivity Incentives Act of 1990 a. Coverage b. Construction c. Definition of terms d. Labor-Management Committee; composition e. Productivity incentives program; objective and scope f. Productivity incentives program; components g. Productivity incentives program; contents h. Ratification i. Submission to RTWPB j. Notification k. Amendments to the productivity incentives program

l. Technical support in the development of productivity incentives program m. Effect on existing CBAs n. Integration in the CBAs o. Productivity bonuses. p. Frequency of granting productivity bonuses q. Special deduction from gross income for productivity bonuses r. Special deduction from gross income for grants and local trainings and special studies s. Special deduction from gross income for manpower training abroad t. Period considered for tax deduction u. Eligibility f tax incentives in training grants v. Requirements for granting tax incentives w. Effectivity of tax incentives x. Manpower training for skills and behavioral development and special studies; coverage y. Pre-training requirements z. Post-training requirements aa. Disputes and grievances bb. Suspension of benefits cc. Rule-making power. dd. Non-diminution of benefits ee. Penalty 8. Bonus and 13th-month pay; creditability issue a. Marcopper Mining Corp. vs. Ople, et al. case b. NFSW vs. Ovejera, et al. case c. DOLE Philippines vs. Leogardo, et al. case d. Brokenshire Memorial Hospital, Inc. vs. NLRC, et al. case e. United CMC Textile Workers Union vs. Valenzuela, et al. case. f. Universal Corn Products vs. NLRC, et al. case g. FEU Employees Labor Union vs. FEU case h. Framanlis Farms, Inc. vs. Minister of Labor, et al. case i. Kamaya Point Hotel vs. NLRC, et al. case j. UST Faculty Union vs. NLRC, et al. case 9. 14th-month pay 10. Compromise agreement or amicable settlement a. Compromise agreement in cases before the Bureau of Labor Relations and DOLE Regional Offices b. Compromise agreements in cases before Labor Arbiters and the NLRC 11. Quitclaim and release ARTICLE 101 - Payment by results NOTES AND COMMENTS: 1. Payment by results; nature 2. Payment by results according to the implementing rules a. Time and motion studies b. Basis in determining rates c. Allowed time; meaning d. Base rate; meaning. e. Output rates in work paid by results; effect if determined by employer or by DOLE

3. Categories of workers paid by results 4. Payment by results in government projects

5. Republic Act No. 6640 and its implementing rules 6. Republic Act No. 6727 and its implementing rules CHAPTER III PAYMENT OF WAGES ARTICLE 102 - Forms of payment NOTES AND COMMENTS: 1. Manner and form of payment a. General rule b. Exceptions; payment by check or money order c. Payment through automatic teller machines or other electronic devices 2. Payment of salaries of public health workers 3. Penalty under the Revised Penal Code ARTICLE 103 - Time of payment NOTES AND COMMENTS: 1. Time of payment; exception 2. Time of payment of wages paid by results 3. Relation to agreements or company policy or practice ARTICLE 104 - Place of payment NOTES AND COMMENTS: 1. Place of payment of wages; general rule 2. Exceptions 3. Prohibition on payment of wages in bars, massage clinics or night clubs; exception 4. Payment through banks a. Requisites for payment of wages through banks b. Duty of bank ARTICLE 105 - Direct payment of wages NOTES AND COMMENTS: 1. Direct payment of wages a. General rule b. Exceptions 2. Wages of deceased employee. ARTICLE 106 - Contractor or subcontractor NOTES AND COMMENTS: 1. Definition of terms 2. Permissible job contracting 3. Activities where labor contracting may be allowed 4. Test of independent contractorship 5. Company-wide ratio of regular employees to contractual employees [80:20 Rule] 6. Conditions for permissible labor contracting 7. Judicial notice of validity of job contracting 8. Prohibited activities 9. Power of Secretary to restrict or prohibit contracting-out of labor 10. Licensing of labor contractors; requirements a. Licensing authority b. Licensing requirements c. Lifetime of license d. Contracting out beyond jurisdiction of issuing Regional Office 11. Monitoring of labor contractor’s activities

12. Administrative sanctions 13. Joint and several civil liability of indirect employer and contractor/sub-contractor a. General rule b. Exception 14. Remedy of indirect employer against contractor or sub-contractor 15. Nature of liability of indirect employer for payment of legally-mandated wage increases a. Rule under Republic Act No. 6640; subsidiary liability b. Rule under Republic Act No. 6727; joint and several 16. Relevant Civil Code provision on nature of liability of indirect employer 17. Illustrative cases of valid job contracting 18. Labor-only contracting a. Express prohibition b. Elements of labor-only contracting c. Substantial capital without investment in tools, equipment, machineries, etc.; effect d. Stipulation in the contract; effect e. Nature of liability of employer and labor-only contractor 19. Illustrative cases of labor-only contracting 20. Principal distinctions between job contracting and labor-only contracting 21. Contracting activities in construction projects a. Department Order No. 19, Series of 1993 b. Statutory benefits c. Requirements of labor and social legislations d. Wage increases ARTICLE 107 - Indirect Employer NOTES AND COMMENTS: 1. Indirect employer 2. Joint and solidary liability of indirect employer ARTICLE 108 - Posting of bond NOTES AND COMMENTS: 1. Bond of contractor or subcontractor 2. Effect of failure to post a bond ARTICLE 109 - Solidary liability NOTES AND COMMENTS: 1. Articles 109 and 106; correlated. 2. Object of obligation in Articles 106 and 109 3. Meaning of opening phrase of Article 109 ARTICLE 110 - Worker preference in case of bankruptcy NOTES AND COMMENTS: 1. Worker preference in case of bankruptcy a. Development in the law b. Civil Code provisions correlated with Article 110 c. Prospectivity of amendment to Article 110 2. Mortgage credit 3. Preference of taxes 4. Meaning of “wages” under Article 110 ARTICLE 111 - Attorney’s fees NOTES AND COMMENTS: 1. Concept of attorney’s fees 2. 10% Attorney’s fee

3. Basis of 10% attorney’s fees 4. Non-lawyers are not entitled to attorney’s fees 5. Judicial control of attorney’s fees 6. Attorney’s fees in excess of 10% unlawful 7. Contingency fee arrangement 8. Article 111 and Article 222; correlated a. Distinction b. Appearances c. Substitution of counsel d. Authority to bind parties e. Complaint for unethical conduct f. Attorney’s fees for collective bargaining negotiations g. Charging lien; where filed 9. Penalty for violation of Article 111 CHAPTER IV PROHIBITIONS REGARDING WAGES ARTICLE 112 - Non-interference in disposal of wages NOTES AND COMMENTS: 1. Non-interference by employer in disposal of wages 2. Wages not subject to execution; exception 3. Penalty for violation of Article 112 4. Penalty under the Revised Penal Code ARTICLE 113 - Wage deduction NOTES AND COMMENTS: 1. General rule 2. Permissible deductions from wages 3. Deductions due to tardiness or absences 4. Deduction from salaries of public health workers 5. Set-off of debt due against employee’s monetary claims 6. Deductions due to losses on account of alleged negligence 7. Penalty for violation of Article 113 ARTICLE 114 - Deposits for loss or damage NOTES AND COMMENTS: 1. Prohibition against deposit requirement 2. Permissible deductions for loss or damages 3. Penalty for violation of Article 114 ARTICLE 115 - Limitations NOTES AND COMMENTS: 1. Due process required 2. Pre-requisites before deduction may be made ARTICLE 116 - Withholding of wages and kickbacks prohibited NOTES AND COMMENTS: 1. Prohibition on withholding of wages 2. Kickbacks 3. Penalty for violation of Article 116 ARTICLE 117 - Deduction to ensure employment NOTES AND COMMENTS: 1. Deduction to ensure employment 2. Penalty for violation of Article 117 ARTICLE 118 - Retaliatory measures NOTES AND COMMENTS:

1. Retaliatory actions 2. When considered unfair labor practice 3. Penalty for violation of Article 118 ARTICLE 119 - False reporting NOTES AND COMMENTS: 1. False statement; report or record 2. Penalty for violation of Article 119 CHAPTER V WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION700 ARTICLE 120 - Creation of National Wages and Productivity Commission NOTES AND COMMENTS: 1. Republic Act No. 6727 [Wage Rationalization Act] 2. Declared policy 3. Abolition of the National Wages Council and National Productivity Commission 4. Headquarters of the Commission; relation to DOLE ARTICLE 121 - Powers and functions of the Commission NOTES AND COMMENTS: 1. Powers and functions 2. Power of Commission Chairman to organize and appoint personnel 3. Composition of the Commission 4. Compensation and rank of sectoral representatives 5. Commission Secretariat ARTICLE 122 - Creation of Regional Tripartite Wages and Productivity Boards NOTES AND COMMENTS: 1. Regional Boards; rationale for their creation 2. Composition 3. Regional Board Secretariat 4. Powers and functions 5. Implementation of plans, programs and projects 6. The various regions of the country ARTICLE 123 - Wage Order NOTES AND COMMENTS: 1. Wage order; defined 2. Necessity for wage order 3. Effectivity of wage order 4. Appeal to the Commission 5. Effect of Appeal 6. Constitutionality of wage order 7. Exemption from wage order a. Legal basis b. Observations on the trends relative to grant of exemption 8. NWPC Guidelines No. 01, Series of 1996 a. Definition of terms b. Categories of exemptible establishments c. Criteria for exemption d. Documents required. e. Action on application for exemption f. Application for projects/branches/divisions

g. Distressed principal h. Extent and duration of exemption i. Procedures on exemption j. Quorum and votes required k. Effect of disapproved application for exemption l. Non-diminution of benefits m. Supplementary guidelines on exemption 9. Guidelines on Exemption for New Business Enterprises under Republic Act No. 6727 a. Definition of terms b. Coverage c. Classification of enterprises that may be exempted d. Procedure and documents required e. Workers’ opposition f. Action on application for exemption g. Request for reconsideration h. Effectivity/duration of exemption i. Effect of disapproved applications j. Effects of collective bargaining negotiations 10. Revised Guidelines on Exemption for Retail/Service Establishments under Republic Act No. 6727 a. Definition of terms b. Procedure and documents required c. Criteria for exemption d. Workers’ opposition e. Action on application for exemption f. Request for reconsideration g. Effectivity of approved applications h. Non-diminution of benefits i. Effect of disapproved application 11. Guidelines for Countryside and Barangay Business Enterprises [CBBEs] relative to labor laws and regulations a. Department Order No. 22; rationale b. Minimum wage for employees of existing CBBEs c. Exemption of new CBBEs from wage increase under Republic Act No. 6727 d. Benefits of the CBBEs’ employees e. Payment by results or output f. Facilities deductible from wages g. Filing of administrative forms/reports h. No DOLE clearance requirement 12. Execution of denied/disapproved/dismissed application for exemption [Policy Instructions No. 55] a. Enforcement of final orders or awards. b. Issuance of writ of execution c. Execution before perfection of appeal or pending appeal d. Enforcement of writ of execution e. Custody of records. ARTICLE 124 - Standards/Criteria for minimum wage fixing NOTES AND COMMENTS: 1. Methods of legislated minimum wage fixing

2. Revised rules of procedure on minimum wage fixing a. Construction of the rules; scope b. Definition of terms c. Minimum wage fixing d. Conduct of hearings. e. Wage Order f. Appeal g. Quorum 3. Wage distortion 745 a. Background b. Wage distortion; definition c. “Elimination” and “severe contraction”; distinction

d. Severe contraction; measure thereof e. Wage distortion; correction thereof f. Unilateral or negotiated correction of wage distortion g. Requirement to restore substantial differentiation among classes of employees h. Formula for resolving wage distortion i. Wage distortion is a question of fact 4. Exemptions from wage increases; application therefor 5. Enforcement of Wage Orders 6. Disposition of pending matters 7. Official records 8. Jurisdiction over wage distortion cases a. In organized establishments b. In unorganized establishments c. Wage distortion involving Section 4 of R.A. No. 6727 d. Disposition of wage distortion disputes subject of notice of strike or lockout

9. Wage distortion, not a ground for a strike or lockout 10. Statutory minimum wage; differentiation

11. Obligation of employers to comply with registration and reportorial requirements 12. Effect of statutory wage increases on workers paid by result 13. Effect of statutory wage increases on special groups of workers 14. Penal provisions ARTICLE 125 - Freedom to bargain NOTES AND COMMENTS: 1. Wage increases through collective bargaining 2. Wage increases and benefits from CBA and law; distinction a. Wage increases and benefits from CBA different from those granted by law b. Intention of the parties to CBA; materiality thereof c. Chargeability clause d. Validity of chargeability/creditability clause e. CBA percentage increase in wages; basis 3. Law is presumed part of CBA. a. Automatic incorporation clause b. Effect of CBA stipulation on mandated wage increases 4. CBA stipulations below minimum legal standards 5. Binding effect of CBA 6. Mandatory CBA registration requirement

a. Mandatory provisions of the CBA b. Registration requirements 7. Obligation of employer to respect CBA ARTICLE 126 - Prohibition against injunction NOTES AND COMMENTS: 1. Injunction against Commission and Board proceedings; prohibited 2. Judicial review ARTICLE 127 - Non-diminution of benefits NOTES AND COMMENTS: 1. Non-diminution of benefits provided under R.A. 6727 CHAPTER VI ADMINISTRATION AND ENFORCEMENT ARTICLE 128 - Visitorial and enforcement power NOTES AND COMMENTS: 1. General overview of Article 128 2. Visitorial power 3. Enforcement power 4. Appellate power or power of review 5. Interference and injunctions prohibited 6. Violation by government employee 7. Employment records required a. Payrolls b. Time records c. Entries in time records d. Time records of managers, executives and field personnel e. Records of workers paid by results f. Place of records g. Preservation of records; period h. False reporting 8. Inspection to determine compliance with statutory wage increases a. Inspection of unionized companies b. Inspection of non-unionized companies 9. Complaint for non-compliance with statutory wage increases 10. Rules on the disposition of labor standards cases in the regional offices a. Enforcement authority b. Authorized representatives of the Secretary of Labor and Employment c. Visitorial power d. Construction e. Suppletory application of Rules of Court f. Labor standards; definition g. Money claims arising from complaint/routine inspection h. Endorsement of cases to the NLRC i. Appeals j. Execution k. Health and safety cases l. General provisions ARTICLE 129 - Recovery of wages, simple money claims and other benefits NOTES AND COMMENTS: 1. Adjudicatory powers a. Adjudicatory powers exercised by Regional Director or Hearing Officers

b. Application of R.A. No. 6715; retroactivity c. Consolidation of cases d. When claims exceed P5,000.00 e. Complaint; form f. Period to resolve g. Disposition of sum recovered h. Role of Secretary or his representative in payment of unpaid wages i. Appeal; decision of Regional Director/Hearing Officer 2. Legal interest 3. Jurisdiction over enforcement of labor standards laws a. Servando’s, Inc. vs. Secretary of Labor case b. Other related cases c. Memorandum Circular No. 02-A d. Republic Act No. 7730 e. Notes on Article 128 [b] as amended by R.A. 7730

f. Article 129 as amended by R.A. 6715 g. Article 129 correlated with Article 217 of the Labor Code h. Articles 128 [b], 129 and 217, distinguished

4. Jurisdiction by estoppel Title III WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES CHAPTER I EMPLOYMENT OF WOMEN ARTICLE 130 - Nightwork prohibition NOTES AND COMMENTS: 1. Coverage 2. Prohibition against nightwork of women employees ARTICLE 131 - Exceptions NOTES AND COMMENTS: 1. Exceptions to the prohibition in Article 130 ARTICLE 132 - Facilities for women NOTES AND COMMENTS: 1. Facilities for women employees 2. Relation to agreements ARTICLE 133 - Maternity leave benefits NOTES AND COMMENTS: 1. Maternity leave 2. Paragraphs [A] and [C] of Article 133 no longer apply a. Development in the law b. Republic Act No. 7322 c. Section 14-A of the Social Security Law, as amended d. SSS Circular No. 15-V e. Qualifications for entitlement to maternity benefit f. Pregnant women, whether married or unmarried, are entitled to maternity leave benefits g. Maternity benefits, not part of 13th-month pay computation h. Voluntary or self-employed members not entitled to maternity benefit i. Computation of maternity benefit j. Entitlement to maternity benefit forecloses entitlement to sickness benefit k. Notification to SSS in case of pregnancy l. Payment of maternity benefit; how made

m. Forms needed in filing for maternity benefit; where filed 3. Paragraph [B] of Article 133 still applies 4. Payment of extended maternity leave 5. Limitation on leave benefits 6. Relation to agreements 7. Paternity Leave Act of 1996 a. Seven-day paternity leave b. Definition of “paternity leave”, “delivery” and other terms c. Penalty for violation d. Non-diminution clause ARTICLE 134 - Family planning services; incentives for family planning NOTES AND COMMENTS: 1. Requirement under paragraph [A] of Article 134 2. Incentive bonus scheme ARTICLE 135 - Discrimination prohibited NOTES AND COMMENTS: 1. Reference to Section 2 in the Article; Meaning 2. Integration of women as full and equal partners of men in development and nation-building a. Republic Act No. 7192 b. Implementing rules c. Declaration of policy d. Responsible agency; NEDA e. Mandate f. Equality in capacity to act g. Equal membership in clubs h. Admission to military schools i. Voluntary Pag-IBIG, GSIS and SSS coverage j. Compliance report ARTICLE 136 - Stipulation against marriage NOTES AND COMMENTS: 1. Invalidity of stipulation against marriage ARTICLE 137 - Prohibited acts NOTES AND COMMENTS: 1. Prohibited acts

2. Sexual harassment a. Declaration of policy

b. Specific acts penalized c. Persons who may be liable for sexual harassment d. Sexual harassment in a work-related or employment environment e. Sexual harassment in an education or training environment f. Duty of the employer or head of office g. Solidary liability for damages of employer or head of office h. Victim’s right to institute separate action for damages i. Penalties j. Prescription of Action ARTICLE 138 - Classification of certain women workers NOTES AND COMMENTS: 1. Classification of women workers in certain workplaces 2. Regularity of employment 3. When women workers not considered employees

CHAPTER II EMPLOYMENT OF MINORS ARTICLE 139 - Minimum employable age NOTES AND COMMENTS: 1. Article 139 [A] superseded by Section 12 of Republic Act No. 7610, as amended by Republic Act No. 7658 a. Section 12, Republic Act No. 7610, as amended b. Prohibition on the employment of children in certain advertisements c. Duty of employer 2. Department Order No. 18 [Implementing Rules of Republic Act No. 7658] a. General prohibition b. Definition of terms c. Exceptions and conditions d. Pre-employment requirements e. Hours of work of working children f. Effect on other issuances g. Penalties 3. Paragraphs [B] and [C] of Article 139 still effective a. Effect of Republic Act No. 7610, as amended, on Article 139 [b] and [c] b. Non-hazardous work; meaning c. Examples of hazardous work 4. Relevant provisions of Presidential Decree No. 603 a. Right to self-organization b. Conditions of employment c. Educational assistance program d. Welfare program e. Research projects 5. Employment of poor but deserving students during summer and/or Christmas vacation a. Employment of deserving students whose ages range from 15 to 25 years of age b. Poor but deserving students; defined c. Compensation d. Non-transferability of voucher for government subsidy; exceptions e. Rules and regulations f. Penalty for violation 6. Relevant provisions of the Revised Penal Code ARTICLE 140 - Prohibition against child discrimination NOTES AND COMMENTS: 1. Non-discrimination on account of age 2. Republic Act No. 7610 - The Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act a. Declaration of State policy and principle b. Definition of terms c. Program on child abuse, exploitation and discrimination; formulation thereof d. Child prostitution and other sexual abuse; penalty e. Attempt to commit child prostitution; penalty f. Child trafficking; penalty

g. Attempt to commit child trafficking; penalty h. Obscene publications and indecent shows; penalty i. Other acts of neglect, abuse, cruelty or exploitation and other conditions prejudicial to the child’s development; penalty j. Specific crimes of parent under Presidential Decree No. 603 k. Sanctions for establishments or enterprises which commit acts prohibited by Republic Act No. 7610 l. Non-formal education for working children m. Duty of employers n. Children of indigenous cultural communities o. Children in situations of armed conflict p. Remedial procedures q. Common penal provisions 3. Relevant provision of the Revised Penal Code CHAPTER III EMPLOYMENT OF HOUSEHELPERS ARTICLE 141 - Coverage NOTES AND COMMENTS: 1. Coverage 847 2. Househelper; meaning 3. Method of payment not determinant ARTICLE 142 - Contract of domestic service NOTES AND COMMENTS: 1. Employment contract of househelper 2. Relevant Civil Code provisions 3. Relevant provision of the Revised Penal Code ARTICLE 143 - Minimum wage NOTES AND COMMENTS: 1. Republic Act No. 7655 a. Minimum wage is on monthly basis b. Equivalent daily rate 2. DOLE Department Order No. 7 [1994] Implementing Republic Act No. 7655 a. Highly urbanized city; meaning b. Other chartered cities; meaning c. First-class municipality; meaning 3. Payment of househelper’s wage by results 4. Prohibited reduction of pay 5. Review of employment contract 6. SSS Coverage a. Under the Labor Code b. SSS Circular No. 21-V c. Compulsory coverage; effectivity date d. Registration by househelper e. Effect of separation f. Benefits, loans and other privileges g. Contributions and remittance; basis and payment thereof 7. Penalty for violation of Republic Act No. 7655 [or Article 143] 8. Jurisdiction over cases involving househelpers 9. Relation to other laws and agreement ARTICLE 144 - Minimum cash wage NOTES AND COMMENTS:

1. Minimum wage rate; cost of lodging, food and medical attendance excluded 854 2. Time and manner of payment ARTICLE 145 - Assignment to non-household work NOTES AND COMMENTS: 1. Compensation for non-household work 2. Househelpers working in staffhouses of employer ARTICLE 146 - Opportunity for education NOTES AND COMMENTS: 1. Education of househelper 2. Provision in the Child and Youth Welfare Code 3. Provision in the Civil Code ARTICLE 147 - Treatment of househelpers NOTES AND COMMENTS: 1. Proper treatment of househelper 2. Civil Code provision a. Just and humane treatment b. Hours of work c. Overtime work d. Monthly vacation 3. Funeral expenses in case of death of househelper 4. Disposition of househelper’s corpse other than burial ARTICLE 148 - Board, lodging and medical attendance NOTES AND COMMENTS: 1. Free board, lodging and medical attendance 2. Children of househelpers 3. Civil Code provision ARTICLE 149 - Indemnity for unjust termination of services NOTES AND COMMENTS: 1. Applicability of Article 149 2. Indemnity for unjust termination of service 3. Unjust termination by househelper ARTICLE 150 - Service of termination notice NOTES AND COMMENTS: 1. Applicability of Article 150 2. Notice requirement 3. Civil Code provision ARTICLE 151 - Employment certification NOTES AND COMMENTS: 1. Issuance of employment certificate ARTICLE 152 - Employment record. NOTES AND COMMENTS: 1. Record of employment 2. Civil Code provision CHAPTER IV EMPLOYMENT OF HOMEWORKERS ARTICLE 153 - Regulation of industrial homeworkers NOTES AND COMMENTS: 1. Two kinds of employees contemplated in Article 153 2. Department Order No. 5 3. Coverage

4. Field personnel a. Nature of employment b. Instances where field personnel are entitled to benefits ARTICLE 154 - Regulations of Secretary of Labor NOTES AND COMMENTS: 1. Objective of implementing regulations 2. Registration of employer, contractor and subcontractor 3. Duties of employer, contractor and subcontractor 4. Standard rates a. DOLE to establish standard rates b. Standard rates; how determined c. Complaint in case of non-compliance with standard rates 5. Payment for homework 6. Conditions for payment of work a. Re-doing of work b. Goods returned due to fault of homeworker 7. Deductions 8. Employment of minors as homeworkers 9. Prohibitions for homework 10. Self-organization a. Homeworkers’ right to self-organize b. Registration of homeworkers’ organizations c. Assistance to registered homeworkers’ organizations, employers, contractors and subcontractors 11. Enforcement power a. Jurisdiction of DOLE Regional Director b. Limitation on jurisdiction c. Jurisdiction of Labor Arbiters of NLRC d. Effect of non-compliance with order of Regional Director ARTICLE 155 - Distribution of homework NOTES AND COMMENTS: 1. Definition of terms 2. Regularity of employment of homeworkers

BOOK FOUR HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS

Title I MEDICAL, DENTAL AND OCCUPATIONAL SAFETY CHAPTER I MEDICAL AND DENTAL SERVICES ARTICLE 156 - First-aid treatment NOTES AND COMMENTS: 1. Definitions of significant terms 2. Medicines and facilities 3. Training and qualification of first-aider ARTICLE 157 - Emergency medical and dental services NOTES AND COMMENTS: 1. Emergency medical and dental services 2. Hazardous workplaces 3. Agency tasked to develop and enforce dental standards ARTICLE 158 - When emergency hospital not required

NOTES AND COMMENTS: 1. Emergency hospital or dental clinic; when not required ARTICLE 159 - Health program NOTES AND COMMENTS: 1. Comprehensive occupational health program ARTICLE 160 - Qualifications of health personnel NOTES AND COMMENTS: 1. Training and qualifications of medical and dental personnel 2. Opportunity for training at effectivity of Labor Code ARTICLE 161 - Assistance of employer NOTES AND COMMENTS: 1. Duty of employer to extend assistance 2. Medical and dental records CHAPTER II OCCUPATIONAL HEALTH AND SAFETY ARTICLE 162 - Safety and health standards NOTES AND COMMENTS: 1. Coverage of Chapter II, Book IV 2. General occupational health and safety standards 3. Occupational Health and Safety Code 4. Effectivity of existing standards 5. Work condition not covered by standards 6. Code on Occupational Safety and Health Standards 7. Institute of Occupational Health and Safety ARTICLE 163 - Research NOTES AND COMMENTS: 1. Research 2. Continuing studies and surveys ARTICLE 164 - Training programs NOTES AND COMMENTS: 1. Mandatory nature of health and safety requirements 2. Training programs 3. Duties of employers 4. Duties of workers a. General principles b. Specific duties of workers 5. Duties of the safety man 6. Duties of other persons 7. Training of personnel in safety and health a. In non-hazardous workplace having 50 to 400 workers per shift b. In non-hazardous workplace having over 400 workers per shift c. In hazardous workplace having 20 to 200 workers per shift d. In hazardous workplace having over 200 workers per shift e. Employment of full-time safety man; when not necessary 8. Safety Committees a. Safety Committee; legal requirement b. Duties of Safety Committee c. Types and composition of Safety Committees d. Other types of Safety Committees e. Term of office of Safety Committee members ARTICLE 165 - Administration of safety and health laws

NOTES AND COMMENTS: 1. Administration and enforcement 2. Administration of safety and health laws a. Responsibility of DOLE b. Delegation to local government 3. Inspection 4. Collection of regulatory fees 5. Registration of business Title II EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND CHAPTER I POLICY AND DEFINITIONS ARTICLE 166 - Policy NOTES AND COMMENTS: 1. Declaration of policy and purpose 2. Constitutionality of law on employees’ compensation 3. Historical background a. Act No. 3428; Workmen’s Compensation Act b. Act No. 3812 and Commonwealth Act No. 210 c. Republic Act. No. 772 d. Other amendatory and related laws e. Executive Order No. 218 f. Advent of the Labor Code g. Presidential Decree No. 626 h. Further amendments re: employee’s compensation i. Advantages of the employee’s compensation scheme under the Labor Code over those provided in previous laws j. Labor Code and Workmen’s Compensation Act; distinguished 4. Employee’s compensation benefits a. General classification b. Classification of benefits for sickness or physical injuries c. Income benefit d. Service benefit 5. Types of benefits in the form of income or services 6. Specific provisions of the Labor Code treating the various types of benefits 7. Attributes of employee’s compensation scheme ARTICLE 167 - Definition of terms NOTES AND COMMENTS: 1. Definition of significant terms under Article 167 2. Definition of “employer” and “employee” 3. Employer a. Employer; defined b. Classification of employer 4. Employee a. Employee; defined b. Classification of employee 5. Definitions related to credited earnings a. “Quarter” b. “Semester” c. “Monthly salary credit” d. “Wages or salary”

e. “Average monthly salary credit” f. “Average daily salary credit” g. “Replacement ratio” h. “Credited years of service” i. “Monthly income benefit” CHAPTER II COVERAGE AND LIABILITY ARTICLE 168 - Compulsory coverage NOTES AND COMMENTS: 1. Nature of coverage 2. Scope of coverage ARTICLE 169 - Foreign employment NOTES AND COMMENTS: 1. Coverage of Filipinos employed abroad 2. Medical services, appliances and supplies 3. Rule when employment contract stipulates application of foreign law ARTICLE 170 - Effective date of coverage NOTES AND COMMENTS: 1. Coverage of employers 2. Coverage of employees ARTICLE 171 - Registration NOTES AND COMMENTS: 1. Registration a. Registration requirement for employers b. Registration requirement for employees 2. Guidelines for public sector registration with GSIS 3. Guidelines for private sector registration with SSS 4. Guidelines in case employee has not yet been registered at time of employment 5. Penalty for violation of registration requirements ARTICLE 172 - Limitation of liability NOTES AND COMMENTS: 1. Existence of employment relationship, essential 2. Compensability of injury resulting in disability or death 3. Test of compensability 4. Theory of increased risk 5. Pre-existence of illness; effect 6. Occupational diseases a. Annex “A” to Amended Rules on Employees’ Compensation b. Requisites for compensability under Annex “A” c. List of occupational diseases 7. Authority to determine and approve additional occupational diseases 8. Work-related diseases a. ECC Resolution No. 432 [July 20, 1977] b. ECC Resolution No. 1676 [January 29, 1981] 9. Cancer ailments 10. Some diseases passed upon by the Supreme Court 11. Pre-employment and periodic medical examination 12. Accident 13. Meaning of “arising out of and in the course of employment” a. “Arising out of employment’; meaning

b. “In the course of employment”; meaning c. Whether arising out of or in the course of employment is a question of fact and law d. Incidental acts considered as arising out of and in the course of employment 14. Proximate or responsible cause 15. Consequential injuries rule 16. Doctrine of presumptive compensability and theory of aggravation; abandoned a. Doctrine of presumptive compensability; defined b. Theory of aggravation; defined c. Abandonment of doctrines d. ECC Resolution No. 3906 [July 5, 1988] 17. Liberality in interpretation 18. “Going to or coming from work” rule a. General rule b. Exceptions to the general rule c. Accident on the way to work d. Accident on the way home e. ECC Resolution No. 3914-A [July 5, 1988]

19. Direct premises rule 20. Ingress-Egress or proximity rule 21. Special errand rule 22. Shuttle bus or extra-premises rule

23. Picnics, field trips and other recreational activities 24. Injuries while living or lodging in employer’s premises 25. Injuries while working at home 26. Injuries during vacation 27. Force majeure or acts of God 28. Limitation on liability of the System for compensation 29. Intoxication 30. Willful intention to injure or kill himself or another a. Self-inflected injuries b. Suicide c. Assault 31. Notorious negligence a. Notorious negligence; meaning b. Applicable presumption in notorious negligence cases c. Cases of notorious negligence d. Cases where notorious negligence was not present 32. Injuries sustained as a result of horse-play 33. “Otherwise provided under this title”; example ARTICLE 173 - Extent of liability NOTES AND COMMENTS: 1. Principle of exclusivity of benefits 2. Present rule in case of similar benefits provided in several laws a. Option to choose b. Employee cannot avail of all benefits at the same time c. Nature of Article 173 3. Provision in the old Workmen’s Compensation Act 4. Right to claim for damages under the Civil Code; not barred

5. Double recovery of benefits of private sector workers under the Labor Code and SSS Law, allowed 6. Entitlement to benefits under GSIS Law and Labor Code a. Exclusiveness of benefits b. Entitlement to disability benefits and GSIS retirement 7. Limited Portability Scheme - Totalizing the workers’ creditable services or contributions to SSS and GSIS a. Republic Act No. 7699; declaration of policy b. Definition of terms c. Coverage d. Creditability and totalization of contributions and benefits in SSS and GSIS e. Limited portability of funds f. Totalization of contributions and benefits; how processed g. Totalization; application thereof h. Effect if worker is not qualified after totalization i. Effect if worker qualifies for benefits in both Systems j. Processes of totalization; joint responsibility of GSIS and SSS k. Effect of overlapping periods creditable services l. Responsibility for recording and documentation m. Accreditation of services and periods of contribution n. Complaints and questions; how processed o. Interpretation and construction p. Non-diminution of benefits q. Applicability of limited portability scheme ARTICLE 174 - Liability of third party/ies NOTES AND COMMENTS: 1. Third party; meaning 2. Rule on recovery in case of injury, disability or death caused by third party 3. Legal subrogation 4. Rule in case of excess recovery 5. Rule against double recovery by employee ARTICLE 175 - Deprivation of the benefits NOTES AND COMMENTS: 1. Deprivation of benefits of workers 2. Deprivation of benefits; effect CHAPTER III ADMINISTRATION ARTICLE 176 - Employees’ Compensation Commission NOTES AND COMMENTS: 1. Creation of the Employees’ Compensation Commission 2. Composition of ECC a. Ex-officio and appointive members b. Vice-chairmanship c. Vacancy d. Quorum e. Per diem 3. Operations and management functions 4. Status and category of ECC; relationship with DOLE ARTICLE 177 - Powers and duties NOTES AND COMMENTS:

1. Powers and duties of the Employees’ Compensation Commission [ECC] 2. Power to asses and fix contributions by employers 3. Rule-making power a. Original Rules on Employees’ Compensation b. Amended Rules on Employees’ Compensation 4. Power to determine and approve additional occupational diseases and work-related illnesses 5. Policy-making power 1. Workers Rehabilitation Center Complex 2. Occupational Safety and Health Center 6. Appointing power 7. Budgetary power 8. Power to administer oath and issue compulsory processes 9. Corporate power 10. Discretionary power ARTICLE 178 - Management of funds NOTES AND COMMENTS: 1. Management and disposition of revenues 2. Disbursement of funds; limitation a. 12% limitation in disbursement for operational expenses b. Rationale for the limitation ARTICLE 179 - Investment of funds NOTES AND COMMENTS: 1. State Insurance Fund [SIF] a. What consists the State Insurance Fund b. Where established 2. Nature of State Insurance Fund 3. Disposition of the Fund a. General rule b. Exception; when fund may be invested ARTICLE 180 - Settlement of claims NOTES AND COMMENTS: 1. Settlement of claims for medical and other services benefits a. Claims for medical benefits b. Claims for emergency services 2. Settlement of claims for income benefits 3. Adjudication of claims a. Original and exclusive jurisdiction of System b. Adjudication procedure 4. Appeal to ECC from the decisions or orders of the System a. Period of appeal; 30 days b. Rule when there is fraud, accident, mistake or excusable negligence c. Acceptance of award; effect on pending appeal 5. Review of decisions or orders of the System by the Employees’ Compensation Commission [ECC] 6. GSIS as proper party in employees’ compensation cases 7. Substantial evidence; degree of proof required 8. Burden of proof a. Rule under the Labor Code b. Rule under the old Workmen’s Compensation Act 9. X-Ray and laboratory examination; effect

10. Actual proof not necessary under old rule 11. Proof required under new rule 12. Quitclaim and releases; legal effect ARTICLE 181 - Review NOTES AND COMMENTS: 1. Review of decisions, orders or resolutions of ECC 2. Motion for reconsideration 3. Appeal from decisions, awards, orders or resolutions of the Employees’ Compensation Commission a. Revised Administrative Circular No. 1-95 b. Controversy on the appealability of judgments, final orders or resolutions of ECC to Court of Appeals 4. Reglementary period of appeal 5. How appeal taken 6. Contents of the petition for review 7. Effect of failure to comply with requirements 8. Action on the petition 9. Contents of comment 10. Effect when petition is given due course 11. Transmittal of records 12. Effect of appeal 13. Submission for decision ARTICLE 182 - Enforcement of decisions NOTES AND COMMENTS: 1. When decision, order or resolution of ECC becomes final and executory 2. Awards granted by ECC in appealed cases 3. Decision, order and resolution in other cases 4. Decision, order, or resolution of ECC en banc 5. Decision, order or resolution of ECC en banc in other cases 6. Failure to comply with writ of execution CHAPTER IV CONTRIBUTIONS ARTICLE 183 - Employers’ contributions NOTES AND COMMENTS: 1. Nature of contributions 2. Employer’s contribution to the System a. Employer pays entire amount; no deduction from worker’s wage or salary allowed b. When employer’s contributions become due c. Rate and amount of contribution for public sector employees d. Rate and amount of contribution for private sector employees e. Periodic review of rate of contribution f. Death or separation of employee; effect g. Disability of employee; effect h. Refund of contribution; prohibited 3. Remittance of contributions ARTICLE 184 - Government guarantee NOTES AND COMMENTS: 1. Guarantee of the government 2. Rationale for the provision 3. Prompt payment of claims

CHAPTER V MEDICAL BENEFITS ARTICLE 185 - Medical services NOTES AND COMMENTS: 1. Conditions to entitlement of medical services, appliances and supplies 2. Loss of wages or earning capacity, not required 3. Period of entitlement 4. Extent of services ARTICLE 186 - Liability NOTES AND COMMENTS: 1. Authority to change physician, hospital or rehabilitation facility 2. Unauthorized changes in medical services, appliances, supplies, hospitals, physician ARTICLE 187 - Attending physician NOTES AND COMMENTS: 1. Duties of attending physician 2. Medical reports a. Report in case of temporary total disability b. Report in case of permanent disability 3. Nature of medical information 4. Accreditation of physicians; minimum requirements 5. Conditions on accredited physicians 6. Medical certification; evidentiary and probative value ARTICLE 188 - Refusal of examination or treatment NOTES AND COMMENTS: 1. Unreasonable refusal by employee of medical examination or treatment 2. Effect of unreasonable refusal by employee ARTICLE 189 - Fees and other charges NOTES AND COMMENTS: 1. Medical benefits and fees and charges under Annex “C” of Amended Rules on Employees’ Compensation a. Medical services in case of injury or sickness; when ambulatory service is allowed b. Ward; meaning c. Ward services d. Hospital confinement e. Domiciliary care f. Ambulatory services g. Surgical expense benefit 2. Accreditation of hospitals 3. Utilization review 4. Coverage of services; payment thereof 5. Emergency services 6. Referral by employer of sick or injured employee 7. Violation of conditions and requirements; penalties ARTICLE 190 - Rehabilitation services NOTES AND COMMENTS: 1. Definition of relevant terms 2. Coverage, nature of effectivity 3. Conditions to entitlement to rehabilitation services 4. Period of entitlement

5. Extent of services 6. Rehabilitation Centers 7. Accreditation of rehabilitation facilities 8. Conditions on accredited hospitals or rehabilitation facilities and physicians or rehabilitation facilities 9. Liability limitations 10. Suspension, termination and appeal a. Grounds b. Appeal 11. Placement 12. Participation of the System 13. Reports CHAPTER VI DISABILITY BENEFITS ARTICLE 191 - Temporary total disability NOTES AND COMMENTS: 1. Common denominator involving disability or sickness benefits a. Disability; meaning b. Requisites for entitlement to disability or sickness benefits c. Compensation for disabilities not mutually exclusive 2. Total disability, when temporary 3. Income benefit 4. Conditions to entitlement 5. Period of entitlement a. When to commence payment of benefits b. Effect of relapse or recurrence after recovery from illness 6. Amount of benefit ARTICLE 192 - Permanent total disability NOTES AND COMMENTS: 1. Disability, when total and permanent a. Permanent total disability; definition and concept b. Distinction between permanent total disability and permanent partial disability c. Conversion of disability rating to permanent total d. Retirement due to injury or sickness 2. Income benefit 3. Conditions to entitlement 4. Total disabilities considered permanent 5. Period of entitlement a. Payment for all compensable months of disability b. Effect of cessation of grant of employees’ compensation benefits c. 5-year guaranteed monthly income benefits; grounds for suspension of grant of benefits 6. Amount of benefit 7. Amount of benefit for dependent children 8. Entitlement to the new income benefit under P.D. No. 1641 9. Aggregate monthly benefit payable ARTICLE 193- Permanent partial disability NOTES AND COMMENTS: 1. Disability, when partial and permanent 2. Income benefit.

3. Conditions to entitlement a. Requisites for entitlement b. Effect of gainful employment 4. Period of entitlement 5. Amount of benefit 6. Unlisted injuries and illnesses [Non-Scheduled Disabilities] CHAPTER VII DEATH BENEFITS ARTICLE 194 - Death. NOTES AND COMMENTS: 1. Death; meaning 2. Nature of death benefit 3. Income benefit. 4. Conditions to entitlement a. Requisites for entitlement to death benefit b. Additional requisites; proof of marriage c. Material date 5. Period of entitlement a. For primary beneficiaries b. For secondary beneficiaries 6. Amount of benefit a. In the case of primary beneficiaries b. In the case of secondary beneficiaries 7. Entitlement to the new income benefit under P. D. No. 1641 8. Distribution of benefits upon the death of a pensioner 9. Funeral benefit; amounts thereof. a. Entitlement to funeral benefit b. Increases in the amount of funeral benefit 10. Effect on funeral benefit of denial of death benefit CHAPTER VIII PROVISIONS COMMON TO INCOME BENEFITS ARTICLE 195 - Relationship and dependency NOTES AND COMMENTS: 1. Dependency; meaning 2. Test of dependency 3. Classification of dependency a. Partial dependency b. Total dependency c. Legal dependency d. Actual dependency 4. Specific dependents under the Labor Code a. Children as dependents b. Legitimate spouse as dependent c. Parents of deceased employee as dependents 5. Beneficiaries; defined 6. Beneficiaries; general classification a. Primary beneficiaries.

b. Secondary beneficiaries 7. Beneficiaries; when determined 8. Priority a. Priority of primary beneficiaries; secondary beneficiaries excluded b. Absence of primary beneficiaries; effect c. Absence of both primary and secondary beneficiaries; effect 9. Benefits payable 10. Monthly income benefit; how distributed 11. Evidence to prove relationship and dependency ARTICLE 196 - Delinquent contributions NOTES AND COMMENTS: 1. Liability of delinquent employer a. Liability for benefits; lien on employer’s assets b. Liability for lump sum benefits 2. Penalty for violation 3. Obligation of the System to pay employee or dependents all benefits ARTICLE 197 - Second injuries NOTES AND COMMENTS: 1. Application of Article 197 2. Liability of State Insurance Fund for second injury ARTICLE 198 - Assignment of benefits NOTES AND COMMENTS: 1. Principle of non-assignability of benefits; rationale 2. Exception ARTICLE 199 - Earned benefits NOTES AND COMMENTS: 1. Entitlement to income benefits during period of disability 2. Entitlement to wages and other benefits provided under CBA or voluntary employer policy or practice. ARTICLE 200 - Safety devices NOTES AND COMMENTS: 1. Penalty for failure to install and maintain safety devices. 2. Cause of sickness, injury or death; duty to ascertain ARTICLE 201 - Prescriptive period NOTES AND COMMENTS: 1. Prescriptive period for employees’ compensation claims 2. Prescriptive period in compensable contingency a. Mere notice suspends the running of prescriptive period b. Effect if employer failed to notify the System c. Rule on constructive filing; inapplicability d. Coverage of the new prescriptive period of 3 years 3. Prescriptive period of workmen’s compensation claims prior to effectivity of the Labor Code

4. Prescriptive period of claims by minors and non compos mentis; when reckoned

ARTICLE 202 - Erroneous payment. NOTES AND COMMENTS: 1. Effect of erroneous payment 2. How doubt is resolved in case of rival claimants ARTICLE 203 - Prohibition NOTES AND COMMENTS:

1. Categorical prohibition against charging for services 2. Prohibition against retention or reduction from benefits 3. 10% Attorney’s fees; when allowed 4. Penalty for violation of Article 203 ARTICLE 204 - Exemption from levy, tax, etc NOTES AND COMMENTS: 1. Exemption of State Insurance Fund from any government impositions or charges 2. Effect of future law on the exemption CHAPTER IX RECORDS, REPORTS AND PENAL PROVISIONS ARTICLE 205 - Record of death or disability NOTES AND COMMENTS: 1. Employers’ records of death or disability 2. Maintenance of the employer’s logbook 3. Duty to furnish certificate on information entered in the logbook 4. Effect of fraudulent claims involving the employer 5. Visitorial power of the System; inspection of the logbook 6. Notice by employer to the System 7. Penalty for violation of Article 205 a. Penalty under the Labor Code b. Penalty under the Amended Rules ARTICLE 206 - Notice of sickness, injury or death NOTES AND COMMENTS: 1. Required notice by employee of sickness, injury or death 2. When notice not necessary ARTICLE 207 - Penal provisions NOTES AND COMMENTS: 1. Laws referred to in Article 207 [a] 2. Applicability of Article 207 [a] in relation to R. A. No. 1161 and C. A. No. 186 3. Penal provisions in the SSS Law referred to in Article 207 [a] 4. Penal provisions in the GSIS Law referred to in Article 207 [a] 5. Penalty for fraud, collusion, falsification, misrepresentation or other anomalies 6. Penalty in case the offender is a recidivist or an employee of ECC, GSIS or SSS ARTICLE 208 - Applicability NOTES AND COMMENTS: 1. Application of employees’ compensation provisions of the Labor Code 2. Significance of January 1, 1975 3. Governing law. a. Date when sickness or injury was contracted or when death occurred; effect b. Date of filing of claims; effect c. Time when ailment manifested; effect d. Application of the Amended Rules on Employees’ Compensation. e. Absence of proof on date when disease was contracted; effect f. Accrual of right to employees’ compensation ARTICLE 208-A - Repeal NOTES AND COMMENTS: 1. Article 208-A inserted by Presidential Decree No. 1369

2. Repeal of inconsistent and contrary laws 3. Laws repealed under Article 208-A 4. Provisions of the GSIS Law referred to in Article 208-A. a. Contributions under the GSIS Act of 1997 b. Computation of basic monthly pension under the GSIS Act of 1997 c. Computation of service under the GSIS Act of 1997 d. Additional 20% Title III MEDICARE ARTICLE 209 - Medical care NOTES AND COMMENTS: 1. Repeal of Republic Act No. 6111 2. Repeal of Presidential Decree No. 1519, as amended 3. Continuation of Medicare Program under P. D. No. 1519 Title IV ADULT EDUCATION ARTICLE 210 - Adult education NOTES AND COMMENTS: 1. Adult education program 2. Who initiates establishment of program