Art. 36. Regulatory power.

~ The Secretary of Labor shall have the power to restrict and regulate the recruitment and placement
activities of all agencies within the coverage of this Title and is hereby authorized to issue orders and
promulgate rules and regulations to carry out the objectives and implement the provisions of this Title.

Art. 37. Visitorial Power.

~ The Secretary of Labor or his duly authorized representatives may, at any time, inspect the premises,
books of accounts and records of any person or entity covered by this Title, require it to submit reports
regularly on prescribed forms, and act on violation of any provisions of this Title.

Art. 38. Illegal recruitment.

a. Any recruitment activities, including the prohibited practices enumerated under Article 34 of this
Code, to be undertaken by non-licensees or non-holders of authority, shall be deemed illegal and
punishable under Article 39 of this Code. The Department of Labor and Employment or any law
enforcement officer may initiate complaints under this Article.

b. Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense
involving economic sabotage and shall be penalized in accordance with Article 39 hereof.

Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or
more persons conspiring and/or confederating with one another in carrying out any unlawful or illegal
transaction, enterprise or scheme defined under the first paragraph hereof. Illegal recruitment is
deemed committed in large scale if committed against three (3) or more persons individually or as
a group.

c. The Secretary of Labor and Employment or his duly authorized representatives shall have the
power to cause the arrest and detention of such non-licensee or non-holder of authority if after
investigation it is determined that his activities constitute a danger to national security and public
order or will lead to further exploitation of job-seekers.

The Secretary shall order the search of the office or premises and seizure of documents, paraphernalia,
properties and other implements used in illegal recruitment activities and the closure of companies,
establishments and entities found to be engaged in the recruitment of workers for overseas
employment, without having been licensed or authorized to do so.

 Illegal Recruitment Defined - llegal recruitment shall mean any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring, procuring workers and includes referring, contact services,
promising or advertising for employment abroad, whether for profit or not, when undertaken by a
non-license or non-holder of authority contemplated under Article 13(f) of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the Philippines. Provided, that such non-
license or non-holder, who, in any manner, offers or promises for a fee employment abroad to two or
more persons shall be deemed so engaged. It shall likewise include the following acts, whether
committed by any persons, whether a non-licensee, non-holder, licensee or holder of authority.
 (a) To charge or accept directly or indirectly any amount greater than the specified in the
schedule of allowable fees prescribed by the Secretary of Labor and Employment, or to make a
worker pay any amount greater than that actually received by him as a loan or advance;

(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;

(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor Code;

(d) To induce or attempt to induce a worker already employed to quit his employment in order to offer
him another unless the transfer is designed to liberate a worker from oppressive terms and
conditions of employment;

(e) To influence or attempt to influence any persons or entity not to employ any worker who has not
applied for employment through his agency;

(f) To engage in the recruitment of placement of workers in jobs harmful to public health or morality
or to dignity of the Republic of the Philippines;

(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment or by his
duly authorized representative;

(h) To fail to submit reports on the status of employment, placement vacancies, remittances of
foreign exchange earnings, separations from jobs, departures and such other matters or information
as may be required by the Secretary of Labor and Employment;

(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified
by the Department of Labor and Employment from the time of actual signing thereof by the parties up
to and including the period of the expiration of the same without the approval of the Department of
Labor and Employment;

(j) For an officer or agent of a recruitment or placement agency to become an officer or member of
the Board of any corporation engaged in travel agency or to be engaged directly on indirectly in the
management of a travel agency;

(k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under the Labor Code and its implementing
rules and regulations;

(l) Failure to actually deploy without valid reasons as determined by the Department of Labor and
Employment; and

(m) Failure to reimburse expenses incurred by the workers in

connection with his documentation and processing for purposes of deployment, in cases where the
deployment does not actually take place without the worker's fault. Illegal recruitment when
committed by a syndicate or in large scale shall be considered as offense involving economic
sabotage.

 The persons criminally liable for the above offenses are the principals, accomplices and
accessories. In case of juridical persons, the officers having control, management or direction of their
business shall be liable.
  Lack of Receipts – The absence of receipts cannot defeat a criminal prosecution for illegal
recruitments. As long as witnesses can positively show through their respective testemonies that the
accused is the one involved in prohibited recruitment.

 ESTAFA – illegal recruitment can be convicted for violations of the RPC provisions on ESTAFA
provided the elements of the crime are present.

(elements)
◦ the accused defrauded another by abuse of confidence or by means of deceit.
◦ Damage or prejudice is capable of pecuniary estimation is caused to the offended party.

 Power to issue search or arrest warrants of Art38(c) – UNCONSTITUTIONAL

- Under the constitution only a Judge may issue a warrants of search and arrest.(Art3,sec.2)
(exception)
◦ In case of deportation or illegal and undesirable aliens, whom the President or the Commissioner
of Immegration may order arrest for the purpose of deportation.

 Closure; Other anti-illegal recruitment activities of POEA – The procedure to order the closure
recruitment establishment is provided for in the rules of RA 8042:

Art. 39. Penalties.

a. The penalty of life imprisonment and a fine of One Hundred Thousand Pesos (P1000,000.00) shall
be imposed if illegal recruitment constitutes economic sabotage as defined herein;

b. Any licensee or holder of authority found violating or causing another to violate any provision
of this Title or its implementing rules and regulations shall, upon conviction thereof, suffer the
penalty of imprisonment of not less than two years nor more than five years or a fine of not less than
P10,000 nor more than P50,000, or both such imprisonment and fine, at the discretion of the court;

c. Any person who is neither a licensee nor a holder of authority under this Title found violating
any provision thereof or its implementing rules and regulations shall, upon conviction thereof,
suffer the penalty of imprisonment of not less than four years nor more than eight years or a fine of
not less than P20,000 nor more than P100,000 or both such imprisonment and fine, at the discretion
of the court;

d. If the offender is a corporation, partnership, association or entity, the penalty shall be imposed
upon the officer or officers of the corporation, partnership, association or entity responsible for
violation; and if such officer is an alien, he shall, in addition to the penalties herein prescribed, be
deported without further proceedings;

e. In every case, conviction shall cause and carry the automatic revocation of the license or
authority and all the permits and privileges granted to such person or entity under this Title,
and the forfeiture of the cash and surety bonds in favor of the Overseas Employment
Development Board or the National Seamen Board, as the case may be, both of which are
authorized to use the same exclusively to promote their objectives.

 AMENDED BY 8042. (NOW)

(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not
less than six (6) years and one (1) day but not more than twelve (12) years and a fine not less than
two hundred thousand pesos (P200,000.00) nor more than five hundred thousand pesos
(P500,000.00).
(b) The penalty of life imprisonment and a fine of not less than five hundred thousand pesos
(P500,000.00) nor more than one million pesos (P1,000,000.00) shall be imposed if illegal
recruitment constitutes economic sabotage as defined herein.
Provided, however, that the maximum penalty shall be imposed if the person illegally recruited is less
than eighteen (18) years of age or committed by a non-licensee or non-holder of authority.
  Illegal Recruitment as Economic Sabotage (qualifying circumstances)
Illegal recruitment when committed by a syndicate or in large scale shall be considered as offense
involving economic sabotage.

 Venue

A criminal action arising from illegal recruitment shall be filed with the Regional Trial Court of the
province or city where the offense was committed or where the offended party resides at the time of
the commission of the offense.

The court where the criminal action is first filed shall acquire jurisdiction to the exclusion of other
courts.

 Mandatory Periods for Resolution of Illegal Recruitment cases.

Preliminary Investigation – terminated w/in 30days from the date of the filing.

- conducted by a prosecutor.

Information filed in Court – w/in 24hrs from the termination of the investigation.

 Prescriptive Periods

Illegal Recruitment shall prescribed in 5yrs, provided that Illegal Recruitment cases involving
economic sabotage shall prescribe in 20yrs.

Art. 40. Employment permit of non-resident aliens.

~ Any alien seeking admission to the Philippines for employment purposes and any domestic or foreign
employer who desires to engage an alien for employment in the Philippines shall obtain an employment
permit from the Department of Labor.
The employment permit may be issued to a non-resident alien or to the applicant employer after a
determination of the non-availability of a person in the Philippines who is competent, able and willing at the
time of application to perform the services for which the alien is desired.
For an enterprise registered in preferred areas of investments, said employment permit may be issued upon
recommendation of the government agency charged with the supervision of said registered enterprise.

Art. 41. Prohibition against transfer of employment.

a. After the issuance of an employment permit, the alien shall not transfer to another job or change his
employer without prior approval of the Secretary of Labor.

b. Any non-resident alien who shall take up employment in violation of the provision of this Title and its
implementing rules and regulations shall be punished in accordance with the provisions of Articles
289 and 290 of the Labor Code.

In addition, the alien worker shall be subject to deportation after service of his sentence.

Art. 42. Submission of list.

~ Any employer employing non-resident foreign nationals on the effective date of this Code shall submit a
list of such nationals to the Secretary of Labor within thirty (30) days after such date indicating their names,
citizenship, foreign and local addresses, nature of employment and status of stay in the country. The
Secretary of Labor shall then determine if they are entitled to an employment permit.
 Art. 43. Statement of objective.
~ It is the objective of this Title to develop human resources, establish training institutions, and formulate
such plans and programs as will ensure efficient allocation, development and utilization of the nation’s
manpower and thereby promote employment and accelerate economic and social growth.

Art. 44. Definitions.

~ As used in this Title:
a. "Manpower" shall mean that portion of the nation’s population which has actual or potential capability
to contribute directly to the production of goods and services.

b. "Entrepreneurship" shall mean training for self-employment or assisting individual or small industries
within the purview of this Title.

Art. 45. National Manpower and Youth Council; Composition.

~ To carry out the objectives of this Title, the National Manpower and Youth Council, which is attached to the
Department of Labor for policy and program coordination and hereinafter referred to as the Council, shall be
composed of the Secretary of Labor as ex-officio chairman, the Secretary of Education and Culture as ex-
officio vice-chairman, and as ex-officio members, the Secretary of Economic Planning, the Secretary of
Natural Resources, the Chairman of the Civil Service Commission, the Secretary of Social Welfare, the
Secretary of Local Government, the Secretary of Science and Technology, the Secretary of Trade and
Industry and the Director-General of the Council. The Director General shall have no vote.
In addition, the President shall appoint the following members from the private sector: two (2)
representatives of national organizations of employers; two (2) representatives of national workers’
organizations; and one representative of national family and youth organizations, each for a term of three (3)
years.

Art. 46. National Manpower Plan.

~ The Council shall formulate a long-term national manpower plan for the optimum allocation, development
and utilization of manpower for employment, entrepreneurship and economic and social growth. This
manpower plan shall, after adoption by the Council, be updated annually and submitted to the President for
his approval. Thereafter, it shall be the controlling plan for the development of manpower resources for the
entire country in accordance with the national development plan. The Council shall call upon any agency of
the Government or the private sector to assist in this effort.

Art. 47. National Manpower Skills Center.

~ The Council shall establish a National Manpower Skills Center and regional and local training centers for
the purpose of promoting the development of skills. The centers shall be administered and operated under
such rules and regulations as may be established by the Council.

Art. 48. Establishment and formulation of skills standards.

~ There shall be national skills standards for industry trades to be established by the Council in consultation
with employers’ and workers’ organizations and appropriate government authorities. The Council shall
thereafter administer the national skills standards.

Art. 49. Administration of training programs.

~ The Council shall provide, through the Secretariat, instructor training, entrepreneurship development,
training in vocations, trades and other fields of employment, and assist any employer or organization in
training schemes designed to attain its objectives under rules and regulations which the Council shall
establish for this purpose.
The Council shall exercise, through the Secretariat, authority and jurisdiction over, and administer, on-going
technical assistance programs and/or grants-in-aid for manpower and youth development including those
which may be entered into between the Government of the Philippines and international and foreign
organizations and nations, as well as persons and organizations in the Philippines.
In order to integrate the national manpower development efforts, all manpower training schemes as
provided for in this Code shall be coordinated with the Council, particularly those having to do with the
setting of skills standards. For this purpose, existing manpower training programs in the government and in
the private sector shall be reported to the Council which may regulate such programs to make them conform
with national development programs.
This Article shall not include apprentices, learners and handicapped workers as governed by appropriate
provisions of this Code.

Art. 50. Industry boards.

~The Council shall establish industry boards to assist in the establishment of manpower development
schemes, trades and skills standards and such other functions as will provide direct participation of
employers and workers in the fulfillment of the Council’s objectives, in accordance with guidelines to be
established by the Council and in consultation with the National Economic and Development Authority.
The maintenance and operations of the industry boards shall be financed through a funding scheme under
such rates of fees and manners of collection and disbursements as may be determined by the Council.

Art. 51. Employment service training functions.

~ The Council shall utilize the employment service of the Department of Labor for the placement of its
graduates. The Bureau of Employment Services shall render assistance to the Council in the measurement
of unemployment and underemployment, conduct of local manpower resource surveys and occupational
studies including an inventory of the labor force, establishment and maintenance without charge of a
national register of technicians who have successfully completed a training program under this Act, and
skilled manpower including its publication, maintenance of an adequate and up-to-date system of
employment information.

Art. 52. Incentive Scheme.

~ An additional deduction from taxable income of one-half (1/2) of the value of labor training expenses
incurred for development programs shall be granted to the person or enterprise concerned provided that
such development programs, other than apprenticeship, are approved by the Council and the deduction
does not exceed ten percent (10%) of the direct labor wage.
There shall be a review of the said scheme two years after its implementation.

Art. 53. Council Secretariat.

~ The Council shall have a Secretariat headed by a Director-General who shall be assisted by a Deputy
Director-General, both of whom shall be career administrators appointed by the President of the Philippines
on recommendation of the Secretary of Labor. The Secretariat shall be under the administrative supervision
of the Secretary of Labor and shall have an Office of Manpower Planning and Development, an Office of
Vocational Preparation, a National Manpower Skills Center, regional manpower development offices and
such other offices as may be necessary.
The Director-General shall have the rank and emoluments of an undersecretary and shall serve for a term of
ten (10) years. The Executive-Directors of the Office of Manpower Planning and Development, the Office of
Vocational Preparation and the National Manpower Skills Center shall have the rank and emoluments of a
bureau director and shall be subject to Civil Service Law, rules and regulations. The Director-General,
Deputy Director-General and Executive Directors shall be natural-born citizens, between thirty and fifty
years of age at the time of appointment, with a master’s degree or its equivalent, and experience in national
planning and development of human resources. The Executive Director of the National Manpower Skills
Center shall, in addition to the foregoing qualifications, have undergone training in center management.
Executive Directors shall be appointed by the President on the recommendations of the Secretary of Labor
and Employment.
The Director-General shall appoint such personnel necessary to carry out the objectives, policies and
functions of the Council subject to Civil Service rules. The regular professional and technical personnel shall
be exempt from WAPCO rules and regulations.
The Secretariat shall have the following functions and responsibilities:
a. To prepare and recommend the manpower plan for approval by the Council;

b. To recommend allocation of resources for the implementation of the manpower plan as approved by
the Council;
 c. To carry out the manpower plan as the implementing arm of the Council;

d. To effect the efficient performance of the functions of the Council and the achievement of the
objectives of this Title;

e. To determine specific allocation of resources for the projects to be undertaken pursuant to approved
manpower plans;

f. To submit to the Council periodic reports on progress and accomplishment of work programs;

g. To prepare for approval by the Council an annual report to the President on plans, programs and
projects on manpower and out-of-school youth development;

h. To enter into agreements to implement approved plans and programs and perform any and all such
acts as will fulfill the objectives of this Code as well as ensure the efficient performance of the
functions of the Council; and

i. To perform such other functions as may be authorized by the Council.

Art. 54. Regional manpower development offices.

~ The Council shall create regional manpower development offices which shall determine the manpower
needs of the industry, agriculture and other sectors of the economy within their respective jurisdictions;
provide the Council’s central planners with the data for updating the national manpower plan; recommend
programs for the regional level agencies engaged in manpower and youth development within the policies
formulated by the Council; and administer and supervise Secretariat training programs within the region and
perform such other functions as may be authorized by the Council.

Art. 55. Consultants and technical assistance, publication and research.

~ In pursuing its objectives, the Council is authorized to set aside a portion of its appropriation for the hiring
of the services of qualified consultants, and/or private organizations for research work and publication. It
shall avail itself of the services of the Government as may be required.

Art. 56. Rules and regulations.

~ The Council shall define its broad functions and issue appropriate rules and regulations necessary to
implement the provision of this Code.

APPRENTICES

Art. 57. Statement of objectives.

This Title aims:
1. To help meet the demand of the economy for trained manpower;

2. To establish a national apprenticeship program through the participation of employers, workers and
government and non-government agencies; and

3. To establish apprenticeship standards for the protection of apprentices.

Art. 58. Definition of Terms.

As used in this Title:
a. "Apprenticeship" means practical training on the job supplemented by related theoretical instruction.

b. An "apprentice" is a worker who is covered by a written apprenticeship agreement with an individual

employer or any of the entities recognized under this Chapter.
 c. An "apprenticeable occupation" means any trade, form of employment or occupation which requires
more than three (3) months of practical training on the job supplemented by related theoretical
instruction.

d. "Apprenticeship agreement" is an employment contract wherein the employer binds himself to train
the apprentice and the apprentice in turn accepts the terms of training.

Art. 59. Qualifications of apprentice.

To qualify as an apprentice, a person shall:
a. Be at least fourteen (14) years of age;

b. Possess vocational aptitude and capacity for appropriate tests; and

c. Possess the ability to comprehend and follow oral and written instructions.
Trade and industry associations may recommend to the Secretary of Labor appropriate educational
requirements for different occupations.

Art. 60. Employment of apprentices.

Only employers in the highly technical industries may employ apprentices and only in apprenticeable
occupations approved by the Secretary of Labor and Employment. (As amended by Section 1, Executive
Order No. 111, December 24, 1986)

 General Policy and guidelines in the Implementation of Apprenticeship Program

Apprenticeship (def.) - the arrangement and the period when an upcoming worker undergoes hand-on
training, more or less formal, to learn the ropes of a skilled job.

DO No.8, Series 1989 (Policy of DOLE)

(1) Obtain the voluntary adoption of appreticeship programs by employers and workers to help meet the
increasing demand for skilled manpower necessary for economic development.

(2) Increase worker productivity through a relevant and effective aprrenticeship program.

 Apprenticeable Age

14yrs old – under this article

15yrs old – under the Implementing rules.

Art. 61. Contents of apprenticeship agreements.

~ Apprenticeship agreements, including the wage rates of apprentices, shall conform to the rules issued by
the Secretary of Labor and Employment. The period of apprenticeship shall not exceed six months.
Apprenticeship agreements providing for wage rates below the legal minimum wage, which in no case shall
start below 75 percent of the applicable minimum wage, may be entered into only in accordance with
apprenticeship programs duly approved by the Secretary of Labor and Employment. The Department shall
develop standard model programs of apprenticeship. (As amended by Section 1, Executive Order No. 111,
December 24, 1986)
 Art. 62. Signing of apprenticeship agreement.
Every apprenticeship agreement shall be signed by the employer or his agent, or by an authorized
representative of any of the recognized organizations, associations or groups and by the apprentice.
An apprenticeship agreement with a minor shall be signed in his behalf by his parent or guardian, if the latter
is not available, by an authorized representative of the Department of Labor, and the same shall be binding
during its lifetime.
Every apprenticeship agreement entered into under this Title shall be ratified by the appropriate
apprenticeship committees, if any, and a copy thereof shall be furnished both the employer and the
apprentice.

Art. 63. Venue of apprenticeship programs.

Any firm, employer, group or association, industry organization or civic group wishing to organize an
apprenticeship program may choose from any of the following apprenticeship schemes as the training
venue for apprentice:
a. Apprenticeship conducted entirely by and within the sponsoring firm, establishment or entity;
b. Apprenticeship entirely within a Department of Labor and Employment training center or other public
training institution; or
c. Initial training in trade fundamentals in a training center or other institution with subsequent actual
work participation within the sponsoring firm or entity during the final stage of training.

Art. 64. Sponsoring of apprenticeship program.

Any of the apprenticeship schemes recognized herein may be undertaken or sponsored by a single
employer or firm or by a group or association thereof or by a civic organization. Actual training of
apprentices may be undertaken:
a. In the premises of the sponsoring employer in the case of individual apprenticeship programs;
b. In the premises of one or several designated firms in the case of programs sponsored by a group or
association of employers or by a civic organization; or
c. In a Department of Labor and Employment training center or other public training institution.

Art. 65. Investigation of violation of apprenticeship agreement.

Upon complaint of any interested person or upon its own initiative, the appropriate agency of the
Department of Labor and Employment or its authorized representative shall investigate any violation of an
apprenticeship agreement pursuant to such rules and regulations as may be prescribed by the Secretary of
Labor and Employment.

Art. 66. Appeal to the Secretary of Labor and Employment.

The decision of the authorized agency of the Department of Labor and Employment may be appealed by
any aggrieved person to the Secretary of Labor and Employment within five (5) days from receipt of the
decision. The decision of the Secretary of Labor and Employment shall be final and executory.

Art. 67. Exhaustion of administrative remedies.

No person shall institute any action for the enforcement of any apprenticeship agreement or damages for
breach of any such agreement, unless he has exhausted all available administrative remedies.

Art. 68. Aptitude testing of applicants.

Consonant with the minimum qualifications of apprentice-applicants required under this Chapter, employers
or entities with duly recognized apprenticeship programs shall have primary responsibility for providing
appropriate aptitude tests in the selection of apprentices. If they do not have adequate facilities for the
purpose, the Department of Labor and Employment shall perform the service free of charge.
 Art. 69. Responsibility for theoretical instruction.
Supplementary theoretical instruction to apprentices in cases where the program is undertaken in the plant
may be done by the employer. If the latter is not prepared to assume the responsibility, the same may be
delegated to an appropriate government agency.

Art. 70. Voluntary organization of apprenticeship programs; exemptions.

a. The organization of apprenticeship program shall be primarily a voluntary undertaking by employers;

b. When national security or particular requirements of economic development so demand, the

President of the Philippines may require compulsory training of apprentices in certain trades,
occupations, jobs or employment levels where shortage of trained manpower is deemed critical as
determined by the Secretary of Labor and Employment. Appropriate rules in this connection shall be
promulgated by the Secretary of Labor and Employment as the need arises; and

c. Where services of foreign technicians are utilized by private companies in apprenticeable trades,
said companies are required to set up appropriate apprenticeship programs.

Art. 71. Deductibility of training costs.

An additional deduction from taxable income of one-half (1/2) of the value of labor training expenses
incurred for developing the productivity and efficiency of apprentices shall be granted to the person or
enterprise organizing an apprenticeship program: Provided, That such program is duly recognized by the
Department of Labor and Employment: Provided, further, That such deduction shall not exceed ten (10%)
percent of direct labor wage: and Provided, finally, That the person or enterprise who wishes to avail himself
or itself of this incentive should pay his apprentices the minimum wage.

Art. 72. Apprentices without compensation.

The Secretary of Labor and Employment may authorize the hiring of apprentices without compensation
whose training on the job is required by the school or training program curriculum or as requisite for
graduation or board examination.

 Working Scholar; Liability of School

There is no employee-employer relationship betwee students on hand, and schools, colleges or universities,
on the other hand, where there is written agreement between them under which the former agree to work for
the latter in exchange for the privilege to study free of charge, provided that students are given real
opportunities, including such facilities as may be reasonable and necessary to finish their chosen courses
under such agreement. (Implementing Rules, Rule X, Sec.14)

Rule X – merely a guide to the enforcement of the substantive law on labor.

 not a decisive law in civil suit for damages instituted be the injured person during a
vehicular accident against a working student of a school or the school itself.

LEARNERS

Art. 73. Learners defined.

Learners are persons hired as trainees in semi-skilled and other industrial occupations which are non-
apprenticeable and which may be learned through practical training on the job in a relatively short period of
time which shall not exceed three (3) months.
 Art. 74. When learners may be hired.
Learners may be employed when no experienced workers are available, the employment of learners is
necessary to prevent curtailment of employment opportunities, and the employment does not create unfair
competition in terms of labor costs or impair or lower working standards.

Art. 75. Learnership agreement.

Any employer desiring to employ learners shall enter into a learnership agreement with them, which
agreement shall include:
a. The names and addresses of the learners;

b. The duration of the learnership period, which shall not exceed three (3) months;

c. The wages or salary rates of the learners which shall begin at not less than seventy-five percent
(75%) of the applicable minimum wage; and

d. A commitment to employ the learners if they so desire, as regular employees upon completion of the
learnership. All learners who have been allowed or suffered to work during the first two (2) months
shall be deemed regular employees if training is terminated by the employer before the end of the
stipulated period through no fault of the learners.
The learnership agreement shall be subject to inspection by the Secretary of Labor and Employment or his
duly authorized representative.
Art. 76. Learners in piecework.
Learners employed in piece or incentive-rate jobs during the training period shall be paid in full for the work
done.

Art. 77. Penalty clause.

Any violation of this Chapter or its implementing rules and regulations shall be subject to the general penalty
clause provided for in this Code.

 Learnership vs. Apprenticeship

- The similarity :

(1) they both mean training periods for jobs requiring skills that can be acquired through actual work
experience.

(2) both are not as fully productive workers.

(3) both may be paid wages 25% lower than tha applicable legal minimum wage.

- They differ in the focus and terms of training:

(1) A Learner trains in a semi-skilled jod.

An Apprentice trains in a highly technical industry or high-skilled jod.

(2) A Learner has a shorter training period (3mons.) because the job is more easily learned
than that in apprenticeship.

An Apprentice has a longer training period (6mons.) because it is a highly-skilled job.

 The Job, in other words, is “non-apprenticeable” because its practical skills can be learned in 3mons.

 A learner is not an apprentice but an apprentice is, conceptually, also a learner.

 HANDICAPPED WORKERS
Art. 78. Definition.
Def. - Handicapped workers are those whose earning capacity is impaired by age or physical or mental
deficiency or injury.

Art. 79. When employable.

Handicapped workers may be employed when their employment is necessary to prevent curtailment of
employment opportunities and when it does not create unfair competition in labor costs or impair or lower
working standards.

Art. 80. Employment agreement.

Any employer who employs handicapped workers shall enter into an employment agreement with them,
which agreement shall include:
1. The names and addresses of the handicapped workers to be employed;
2. The rate to be paid the handicapped workers which shall not be less than seventy five (75%)
percent of the applicable legal minimum wage;
3. The duration of employment period; and
4. The work to be performed by handicapped workers.

The employment agreement shall be subject to inspection by the Secretary of Labor or his duly authorized
representative.

Art. 81. Eligibility for apprenticeship.

Subject to the appropriate provisions of this Code, handicapped workers may be hired as apprentices or
learners if their handicap is not such as to effectively impede the performance of job operations in the
particular occupations for which they are hired

 Magna Carta for Disabled persons.

Section 5. Equal Opportunity for Employment.

No disabled person shall be denied access to opportunities for suitable employment. A qualified disabled
employee shall be subject to the same terms and conditions of employment and the same compensation,
privileges, benefits, fringe benefits, incentives or allowances as a qualified able bodied person.
Five percent (5%) of all casual, emergency and contractual positions in the Departments of Social Welfare
and Development; Health; Education, Culture and Sports; and other government agencies, offices or
corporations engaged in social development shall be reserved for disabled persons.
Section 6. Sheltered Employment.
If suitable employment for disabled persons cannot be found through open employment as provided in the
immediately preceding Section, the State shall endeavor to provide it by means of sheltered employment. In
the placement of disabled persons in sheltered employment, it shall accord due regard to the individual
qualities, vocational goals and inclinations to ensure a good working atmosphere and efficient production.
Section 7. Apprenticeship.
Subject to the provisions of the Labor Code as amended, disabled persons shall be eligible as apprentices
or learners: Provided, That their handicap is not much as to effectively impede the performance of job
operations in the particular occupation for which they are hired: Provided, further, That after the lapse of the
period of apprenticeship if found satisfactory in the job performance, they shall be eligible for employment.
Section 8. Incentives for Employers.
a. To encourage the active participation of the private sector in promoting the welfare of disabled
persons and to ensure gainful employment for qualified disabled persons, adequate incentives shall
be provided to private entities which employ disabled persons.
 b. Private entities that employ disabled persons who meet the required skills or qualifications, either as
regular employee, apprentice or learner, shall be entitled to an additional deduction, from their gross
income, equivalent to twenty-five percent (25%) of the total amount paid as salaries and wages to
disabled persons: Provided, however, that such entities present proof as certified by the Department
of Labor and Employment that disabled persons are under their employ. Provided, further, that the
disabled employee is accredited with the Department of Labor and Employment and the Department
of Health as to his disability, skills and qualifications.
c. Private entities that improve or modify their physical facilities in order to provide reasonable
accommodation for disabled persons shall also be entitled to an additional deduction from their net
taxable income, equivalent to fifty percent (50%) of the direct costs of the improvements or
modifications. This section, however, does not apply to improvements or modifications of facilities
required under Batas Pambansa Bilang 344.
 Discrimination on Employment

Section 32. Discrimination on Employment.

No entity, whether public or private, shall discriminate against a qualified disabled person by reason of
disability in regard to job application procedures, the hiring, promotion, or discharge of employees,
employee compensation, job training, and other terms, conditions, and privileges of employment. The
following constitute acts of discrimination:
a. Limiting, segregating or classifying a disabled job applicant in such a manner that adversely affects
his work opportunities;
b. Using qualification standards, employment tests or other selection criteria that screen out or tend to
screen out a disabled person unless such standards, tests or other selection criteria are shown to be
job-related for the position in question and are consistent with business necessity;
c. Utilizing standards, criteria, or methods of administration that:
1. have the effect of discrimination on the basis of disability, or
2. perpetuate the discrimination of others who are subject to common administrative control:
d. Providing less compensation, such as salary, wage or other forms of remuneration and fringe
benefits, to a qualified disabled employee, by reason of his disability, than the amount to which a
non-disabled person performing the same work is entitled;
e. Favoring a non-disabled employee over a qualified disabled employee with respect to promotion,
training opportunities, study and scholarship grants, solely on account of the latter's disability;
f. Re-assigning or transferring a disabled employee to a job or position he cannot perform by reason of
his disability;
g. Dismissing or terminating the services of a disabled employee by reason of his disability unless the
employer can prove that he impairs the satisfactory performance of the work involved to the
prejudice of the business entity: Provided, however, That the employer first sought to provide
reasonable accommodations for disabled persons;
h. Failing to select or administer in the most effective manner employment tests which accurately reflect
the skills, aptitude or other factor of the disabled applicant or employee that such test purports to
measure, rather than the impaired sensory, manual or speaking skills of such applicant or employee,
if any; and
i. Excluding disabled persons from membership in labor unions or similar organizations.
Section 33. Employment Entrance Examination.
Upon an offer of employment, a disabled applicant may be subjected to medical examination, on the
following occasions:
a. all entering employees are subjected to such an examination regardless of disability;
b. information obtained during the medical condition or history of the applicant is collected and
maintained on separate forms and in separate medical files and is treated as a confidential medical
record, Provided, however, That:
1. supervisors and managers may be informed regarding necessary restrictions on the work or
duties of the employees and necessary accommodations;
2. first aid and safety personnel may be informed, when appropriate, if the disability might
require emergency treatment;
3. government officials investigating compliance with this Act shall be provided relevant
information on request; and
4. the results of such examination are used only in accordance with this Act.
 Qualified Disabled Persons as Regular Employees

WORKING CONDITIONS AND REST PERIODS

HOURS OF WORK
 Art. 82. Coverage.
~ The provisions of this Title shall apply to employees in all establishments and undertakings whether for
profit or not, but not to government employees, managerial employees, field personnel, members of the
family of the employer who are dependent on him for support, domestic helpers, persons in the personal
service of another, and workers who are paid by results as determined by the Secretary of Labor in
appropriate regulations.
~ As used herein, "managerial employees" refer to those whose primary duty consists of the management of
the establishment in which they are employed or of a department or subdivision thereof, and to other officers
or members of the managerial staff.
~ "Field personnel" shall refer to non-agricultural employees who regularly perform their duties away from
the principal place of business or branch office of the employer and whose actual hours of work in the
field cannot be determined with reasonable certainty.

 Art. 1700, NCC : The relation between capital and labor are merely contractual. They are so
impressed with public interest that labor contracts must yield to common good. Therefore, such
contracts are subject to special laws on labor unions, collective bargaining, strikes, lockouts, closed
shops, wages, working conditions, hours of labor and similar subjects.

 Essentiality of Employment Relationship

1) The existence or absence of employer-employee relationshipis a question of Law and a

question of Fact.
-The character of the relationship between the parties is not whatever they call it in their
contract but what the law calls it after examination of the facts.
-If the fact shows a employer-employee relationship, this conclusion shall stand even if the
contract states otherwise.
2) Core or Non-core Jobs:
- Depending on the applicability of the test of employment, an employer-employee relationship may exist
regardless of the nature of the activities involved.
3) Futile Circumlocatory Definitions:
- The Labore Code neither explains nor illustrates who is an employer or an employee.
- Social Security Law – offers substantive meaningful definitions:
a.) Employer – any person, natural or juridical, domestic or foreign, who carries on in the Philippines any
trade, business, industry, undertaking or activity of any kind and uses services of another person who is
under his order as regards the employment.
b.) Employee – Any person who performs services for an employer in which either or both mental and
physical efforts are used and who receives compensation for such services, where there is an employer-
employee relationship.

 Elements or “Test” of Employment Relationship

- Control Test – where the person for whom the srevices are performed reserves a right to control not only
the end to be achieved but also the means to used in reaching such end.
Four Fold Test – in determining the existence of EE-ER relationship.
1.) the selection and engagement of the employee
2.) the payment of wages
3.) the power of dismissal
4.) the employers power to control the employees with respect to the means and methods by which the work
is to be accomplished. (control test)

 There is no EE-ER relationship in the absence of the power to control the employee with respect
to the means and methods by which his work was to be accomplished. (control test)
 It should be borne in mind that the control test calls merely for the existence of the right to control
the manner of doing the work, not the actual exercise of the right.
 “Independent Contractors” can employ others to work and accomplish contemplated result
without consent of contractee.
 “Employee” cannot substitute another in his place without consent of his employer.

 Two-tiered Approach (Economic Dependence Test)

- The economic dependence of the worker on his employer.

 The determination of the EE-ER Relationship depend upon the circumstances of the whole
Economic Activity:
(1) the extent to which the services performed are an integral part of the employer's business.
(2) the extent of the workers investment in equipment and facilities.
(3) the nature and degree of control exercised by the employer.
(4) the workers opportunity for profit or loss.
(5) the amount of initiative, skills, judgement or foresight required for the success of the claimed
independent exercise.
(6) the permanency and duration of the relationship between the worker and the employer.
(7) the degree of dependency of the worker upon the employer for his continued employment in that line of
business.

 Evidence of Employment: ID, Vouchers, SSS, Registration, Memorandum

- In administrative and Quasi-judicial proceedings – substantial evidence is sufficient as a basis for
judgement on the existence of EE-ER relationship.
 Absence of name in the payroll
- may be proved by testimonial evidence.
 Mode of Compensation, Not a test of Employment Status
- The presence or absence of EE-ER relationship is not determined by the basis of the employee's
compensation.
-The compensation may be computed on the basis of time spent on the jib or it may be based on the
equality/ quantity of the work done.
-”pakiao” workers are considered employees as long as the employer exercises control over the means by
which such workers are to perform their work.
-”The seasonal workers” does not detract from the conclusion that EE-ER relationship exists.
 Existence of employment determind by Law, Not by Contract.
- The law affords protection to an employee and it will not countenance any attempt to subvert its spirit and
intent. A stipulation in an agreement can be ignored if it is utelized to deprive the employee of his security of
tenure.

 When Employment Relationship Present

(1) On Salaried Insurance agents -

(2) On School Teacher – not independent contactors.

- Control Test, Work characterized by regularity and continuity for a fixed duration, they have been
compensated for their services by wages and salaries ….
(3) On Jeepney Drivers, Taxi Drivers – EE-ER relationship exists even when they work in
boundery system.
 Control Test

 Labor Union and Unregistered Association as employer.

- The Labor Code defines an employer as any person who acts in the interest of an employer directly or
indirectly.
- The Law does not require an employer to registered in order to be considered an employer.
 When Emoployment Relationship Absent; Job Contacting or Independent Contractorship.
- Employment Relationship and Job Contracting are inseparable issues. But they describe opposite or
incompatible relationship, producing dissimilar effects.
-”Contractor” is a self-employed or an employer to others. If a contractor hires other workers, the workers
are his employees and not contractee.
- Only if contractor is himself a bona fide employer-businessman or business firm. If he is not, the supposed
contractee may end up as Employers of the workers.
- What is a bona fide Contractors? - EE-ER relationship exists between a job contractor and the workers
that he hires, no such relationship exists between those workers and the job contactee, the contractors
client.
- Labor Only Contracting, Prohibited.

 General Right of Employer over conditions of employment

- An Employer is free to regulate, according to his own discretion and judgement, all aspects of employment,
including hiring, work assignments, working methods, time, place manner of work, tools to be used,
processes to be followed, supervision of workers, working regulations, transfer of employees, work
supervision, and recall of workers. EXCEPT as limited by special laws.
- even as the law protects the welfare of the emplyees , it must also protect the right of the employer to
exercise what is clearly management prerogatives.
- the free will of management to conduct its own business affairs to achieve its purpose cannot be denied.
 Limitations to Stipulations
- they should not be contrary to law, public policy, morals, good customs, and public order.
 Excluded Employees
1. Government Employees – governed by Civil Service Rules.
2. Managerial Employees -
3. Field Personnel – those that are not supervised by the employer & working hours cannot be
determined with reasonable certainty.
4. The employers family members who are dependent for his support
 5. Domestic Helpers and Persons in personal service
6. Workers who are paid by results as determined under DOLE regulations.

Art. 83. Normal hours of work.

~The normal hours of work of any employee shall not exceed eight (8) hours a day.
~Health personnel in cities and municipalities with a population of at least one million (1,000,000) or in
hospitals and clinics with a bed capacity of at least one hundred (100) shall hold regular office hours for
eight (8) hours a day, for five (5) days a week, exclusive of time for meals, except where the exigencies
of the service require that such personnel work for six (6) days or forty-eight (48) hours, in which case,
they shall be entitled to an additional compensation of at least thirty percent (30%) of their regular wage
for work on the sixth day. For purposes of this Article, "health personnel" shall include resident
physicians, nurses, nutritionists, dietitians, pharmacists, social workers, laboratory technicians,
paramedical technicians, psychologists, midwives, attendants and all other hospital or clinic personnel.

 Purpose of the 8-hour Labor Law

- To safeguard the health and welfare of the Laborer or Employee.
- To minimize unemployment by forcing employers, in cases where more than 8 hour operation is necessary
to utilize different shifts of laborers or employees working only 8-hours each.
 Part time Work – not prohibited
 Work hours of Health Personnel
- covered in the 40-hour workweek.
- the 40-hour workweek would not be applicable if there is a training agreement between resident physician
and the hospital and the training program is duly accredited by appropriate government agency.
 Twelve Hour workshift with overtime
- Workshift may exceed 8hrs. But with corresponding OVERTIME PAY.

Art. 84. Hours worked.

~ Hours worked shall include (a) all time during which an employee is required to be on duty or to be at a
prescribed workplace; and (b) all time during which an employee is suffered or permitted to work.
~Rest periods of short duration during working hours shall be counted as hours worked.

 Hours Worked
 IRR sec.4
 Preliminary and Postliminary Activities
- are deemed performed during working hours, where such activities are controlled or required by the
employer and are pursued necessarily and primarily for the employers benefit.
 Waiting time: Engaged to wait or waiting to be engaged?
- Whether waiting time constitutes working time depends upon the circumstances of each particular case
and is a question of fact to be resolved by appropriate finding in the trial court.
- The controlling factor is whether waiting time dpent in idleness is so spent predominantly for the employers
benefit or for the emplyees.
- Waiting time spent by an employee shall be considered as working time if waiting is condered an integral
part of his work or if the employee is required or engaged by an employer to wait.
 Working while eating
- The emplyee must be completely relieved from duty for the ourpose of eating regular meals.
- The meal time is NOT compensable if he is completely freed from duties during his meal period even
though he remains in the workplace.
-But if the employee is not relieved if he is required to perform his duties, whether active or inactive, while
eating .
 Working while Sleeping
- Working while sleeping may be working.
- Whether sleeping time is allowed an employee will be considered as part of his working time will depend
upon the express or implied agreement of the parties.
- RULE: sleeping time may be considered working time if it is subject to serious interruption or takes place
under conditions substantially lass desirable than would be likely to exist at the employers home.
 On Call
- An employee who is required to remain on call on the employers premises or so close thereto that he
cannot use the time effectively for his own purposes is working while “on call.”
- An employee who is NOT required to remain on the employers premises but is merely required to leave
word at his home or with company officials where he may be reached is not working while on call.
 With Cellular Phone or Other Contact Devices
- An employee who is kept “within reach” through his mobile telephone or other contact device is NOT at
work beyong his regular hours.
 Travel Time
- depends on the kind of travel involved.
 Department of Labor Manual
(1) Travel From Home to Work – An Emplyee who travels from his house before his regular workday
and returns home at the end of the workday is ordinary-travel-home-to-
work. NOT WORKTIME
- But while normal travel home, worker receives a call and is required to to his regular place of business or
some other work site, ALL OF THE TIME SPENT IN SUCH TRAVEL IS WORKINGTIME.

(2) Travel that is all in the Days Work – When travel is part of his principal activity, such travel from
jobsite to jobsite during work day is counted as hours worked.
 “PART OF DAYS WORK” must be counte as hours worked.

(3) Travel away from home – Travel that keeps an employee away from home overnight.
 Travel away from home is clearly worktime when it cuts across the employees
workday
 Any work which an employee is required to perform while traveling must, of course, be counted as
working hours.
 Lectures, meeting and training programs
- need not be counted as working time if the following criteria are met:
(1) Attendance is outside of the employees working hours.
(2) Attendance is voluntary.
(3) The employee does not perform any productive work during attendance.
 Greivance Meeting
- Time spent in adjusting grievance between employer and employees during the time the employess are
requires by the employers to be on the permises is HOURS WORKED.
- If Bona fide Union is ivolved,
 Semestral Break
- Regular full-time teachers are entitled to salary and emergency cost-of-living allowance.
 Work hours of seaman
A laborer need not leave the premises og the factory, shop or boat in order that his period period of rest shall
not be counted, it being enough that “he ceases to work”, the period of such shall not be counted.
 Hours worked: Evidence and doubt
- Relevant documents or records must be presented as evidence
- Employment contract, payroll, notice of assignment or posting, cash voucher, or any convincing evidence
which attests to the acttual hours of work.

Art. 85. Meal periods.

~ Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty of every employer
to give his employees not less than sixty (60) minutes time-off for their regular meals.

 Meal Time
- Meal time is not compensible except in cases where the lunch period or meal time is predominantly spent
for the employers benefit or where it is less than 60min.
 When Meal Time is Time Worked: Continuous Shifts
- Where work is continuous for several shifts, the meal time breaks should be counted as working time for
purposes of overtime compensation.
 Meal time of less than 60min
- IRR Sec7, Rule 1, book 3 – allows meal time to be less than 60min, under specified cases and no case
shorter than 20min.
- Meal time less than 20min is not allowed. Or it becomes only a rest period and under IRR Sec7, it is
considered working time.
- But such shortened meal time should be with full pay, and of course, the time when the employee cannot
eat, because he is still working should be paid.
 Situations where meal break may be shortened less than 60min, WITH FULL PAY, are:
(1) Where the work is non-manual or does not involve serious physical exertion
(2) Where the establishment regularly operates not less than 16 hours a day
(3) Where the work is necessary to prevent serious loss of perishable goods.
 Shortened meal break upon emplyees request
- not compensable
- DOLE, in allowing such arrangement, imposes, certain conditions:
(1) EE voulntarily agree in writing to a shortened meal period and are willing to waive the overtime pay for
shuch shorten meal period.
(2) There will be no dimunition whatsoever in the salary and other fringe benefits of the EE's existing before
the effectivity of the shortened meal period.
(3) The work of the EE does not involve strenuous physical exertion and the are provided with adequate
coffee breaks in the morning and in the afternoon.
 Changing Lunch Break from Paid to Unpaid
- Valid, constitutes a valid exercise of management prerogative.
-However, it should not diminish the benefits granted to workers as working time should not exceed 8hours.

Art. 86. Night shift differential.

~Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular
wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning.

 Rationale of Night shift Defferential

- Night work cannot be regarded as desirable, either from the point of the employer or the wage earner. It is
uneconomical unless overhead costs are unusually heavy. Frequently the scale wages are higher as an
inducement to employment on the night shift, and the rate of production is generally lower.
 Night shift Differential is NOT waivable
 Who has the burden of proof of Payment?
- The burden of proving that payment of such benefit has been rests upon the party who will suffer if no
evidence at all is presented by either party.

Art. 87. Overtime work.

~ Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime
work, an additional compensation equivalent to his regular wage plus at least twenty-five percent (25%)
thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty
percent (30%) thereof.

 OverTime Pay
- It is an additional pay for services or work rendered or performed in excess of eight hours a day by
employees or laborers in employment covered by the 8hour Labor Law and exempt from its requirements.
-Rationale : The additional work, labor or services employed and the adverse effects of his longer stay in his
place of work that justify and are the real reason for the extra compensation that is called overtime pay.
 Night Differential and Overtime Pay
- Night Differential – is payment for work done during night
- Overtime Pay – is payment for the excess of regular 8hour work.
 Overtime rate based on Regular wage
- Overtime pay is compensation added to the “regular wage”
- “REGULAR BASE PAY” means the regular basic pay and necessarily excludes money received in
defferent concepts such as Christmas bonus and other fringe benefits.
 Premium pay; when included or excluded in computing overtime pay
- The premium pay for work performed on the employees rest days or on special days or regular holidays is
included as part of the regular rate of the employer in the computation of of overtime pay for any overtime
work rendered on said days , espcially is the employer pays only the minimum overtime rates prescribed by
law.
- Unless there is an agreement more favorable to the worker, the overtime rate is 30% of the rate for the first
8hours on a holiday or rest day. Thus, the holiday or rest day premium should first be added to the regular
base pay before computing the overtimpay on such day.

 Paid unworked days of a monthly -paid employee

- A divisor lower than “365” does not necessarily mean that the employee is not monthly-paid.
- An employer may stipulate that the employee's monthly salary constitutes payment for all the days of the
month, including rest days and holidays. This situation is legally permissible because the unworked days,
included in the employee's monthly salary, are considered paid.
 How “work day” is counted
- “DAY” is understood to be the twenty-four -hour period which commences from the time the employee
regularly starts to work.
- “Any work in excess of 8 hours within the 24 hour period is considered as overtime work.
- any work in excess of 8hours NOT falling within the 24hour period in not considered as overtime work.
(a.) Broken hours of work – the minimum normal working hours fixed by the act need not be continuous to
constitute as the “legal working day” of 8hours as long as the 8hour is within a work day.
(b.) Work in different shifts in a Work day – Work in excess of 8hours within a workday is considered as
overtime regardless of whether this is performed in a work shift other than at which the employee regularly
work.
 Factual and Legal Basis of Claim
- it is sufficient that the employee is permitted or suffered to work.
 EXCEPTION to the rule that overtime compensation cannot be waived
- When the alleged waiver of overtime pay is in consideration of benefits and privileges which may be more
that what will accrue to them in overtime pay, the waiver may be permitted.
 Overtime pay Integrated in Basic Salary
All-inclusive salary - Employer and Employee stipulate that the latters regular or basic salary already
includes the overtime pay.
- Not per se illegal.
!!! - there should be an express agreement.
Requisites: (1) base pay with integrated overtime pay is a clear written agreement knowingly and
freely entered into by the employee.
(2) the agreed legal wage rate and the overtime pay, computed separately are equal to or higher than the
separate amounts legally due.
 Compressed work week; Dole advisory No. 02-04
- Another instance of waiver of overtime pay.
- under thid scheme the number of work days is reduced but the number of work hours in a day is increased
to more than 8, but no overtime pay may be claimed.
- CWW scheme is valid only if the conditions atated in the advisory are observed; otherwise over
time pay may still be claimed.
(the conditions are:)
(1) the scheme is expressly and voluntarily supported by majority of the employees affected.
(2) In firm operating in conditions hazardous to health needed a certification from an accredited safety
organization that worked beyond 8 hours is within limits of exposure of DOLE occupational safety and health
standards.
(3) The DOLE regional office is duty notified.

 Effects of CWW
- emplyees are entitle to meal periods of not less than 60 mins....
 Art. 88. Undertime not offset by overtime.
Undertime work on any particular day shall not be offset by overtime work on any other day. Permission
given to the employee to go on leave on some other day of the week shall not exempt the employer from
paying the additional compensation required in this Chapter.

 Undertime does not offset overtime

- because unfairness would be evident from the fact that the undertime hours represent only the employees
hourly rate while the overtime hours reflects both the employees hourly rate of pay and the appropriate
overtime premium such that not being of equal value, offsetting the undertime hours over the overtime hours
would result to undue deprivation of the employees overtime premium.

Art. 89. Emergency overtime work.

Any employee may be required by the employer to perform overtime work in any of the following cases:
a.) When the country is at war or when any other national or local emergency has been declared by the
National Assembly or the Chief Executive;

b.) When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due
to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon,
earthquake, epidemic, or other disaster or calamity;

c.) When there is urgent work to be performed on machines, installations, or equipment, in order to avoid
serious loss or damage to the employer or some other cause of similar nature;

d.) When the work is necessary to prevent loss or damage to perishable goods; and

e.) Where the completion or continuation of the work started before the eighth hour is necessary to prevent
serious obstruction or prejudice to the business or operations of the employer.

Any employee required to render overtime work under this Article shall be paid the additional compensation
required in this Chapter.

Art. 90. Computation of additional compensation.

For purposes of computing overtime and other additional remuneration as required by this Chapter, the
"regular wage" of an employee shall include the cash wage only, without deduction on account of facilities
provided by the employer.