Mnemonics in Labor Laws and Social Legislation

MNEMONICS IN LABOR LAWS AND SOCIAL LEGISLATION GENERAL CONSIDERATIONS Labor Law — body of statutes, rules and doctrines that: D G

1. defines State policies on labor and employment, and 2. governs the rights and duties of workers and employers respecting terms and conditions of employment by: a. prescribing certain standards therefor, or b. establishing a legal framework,

T

3. in order to obtain better terms and conditions of work through collective bargaining or other concerted activities. KEY: D G sf T

Labor Laws Consist of: 1. 2.

3.

Labor Policies — principles or guidelines that define State policies concerning labor and employment. Labor Standards Law — body of statutes, rules and doc trines that governs rights and duties of workers and employ ers respecting terms and conditions of employment by pre scribing certain standards therefor. Labor Relations Law — body of statutes, rules, principles and doctrines that governs rights and duties of workers and employers by establishing a legal framework within which better terms and conditions of work could be obtained through collective bargaining or other concerted activity (Manalac, Labor Laws — Comments and Jurisprudence, Vol. I, p. 1).

Constitutional Provisions Concerning Labor: Art II, Sec. 18 — State affirms labor as a primary social economic force. It shall protect the right of workers and promote their welfare. ■ Art. XII, Sec. 12 — State shall promote preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them more competitive. • Art. XIII, Sec. 3 — xxx, State shall promote the principle of shared responsibility between workers and employers, and the preferential use of voluntary modes in settling disputes,

including conciliation, and shall enforce their mutual com pliance therewith to foster industrial peace. • Art. XIII, Sec. 14 — The State shall protect the working women by providing safe and healthful working conditions, taking into account their maternal functions, and provide such facilities and opportunities that will enhance their wel fare and enable them to realize their full potential in the service of the nation. Three Aggregate Powers Against Which Labor Needs Protection: 1. 2. 3.

Collective Labor — directed by the union; Collective Capital — directed by management; Collective Bargaining Relationship (Benjamin Victoriano v. Elizalde Rope Workers Union, et al., Sept. 12, 1974).

Key: LCB Constructi on of Labor and Social Legislation Laws: 1. should be construed liberally in order to promote their purposes. 2. all doubts in the implementation and interpretation of the provisions of the Labor Code, including i t s implementing

rules and regulations, shall be resolved in favor of labor (Art 4, Labor Code). 3. in case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer (Art. 1702, New Civil Code). KEY: L L S

Tripartism — participation and cooperation among government, labor and management in the evolution and formulation of labor policies and standards.

PRE-EMPLOYMENT State Policy on Pre-employment (Art. 12, Labor Code): 1.

Promote and maintain a state of full employment through improved manpower training, allocation and utilization;

2.

Protect every citizen desiring to work locally or overseas by securing for him the best possible terms and conditions of employment;

3.

Facilitate a free choice of available employment by per sons seeking work in conformity with the national inter est;

4.

Facilitate and regulate the movement of workers in con formity with the national interest;

5.

Regulate the employment of Aliens, including the estab lishment of registration and/or work permit system;

6.

Strengthen the network of public employment offices and rationalize the participation of the private sector in the re cruitment and placement of workers, locally and overseas, to serve national development objectives; and Insure careful selection of Filipino workers for overseas em ployment in order to protect the good name of the Philip pines abroad.

7.

Worker — any member of the labor force, whether employed or unemployed. Recruitment and placement — any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers and includes referrals, contract services, promising or advertising for employment locally or abroad, whether for profit or not. Provided, That any person or entity which, in any manner, offers or promises for a fee employment to two or more persons shall be deemed engaged in recruitment and placement. private fee-charging employment agency — any person or entity engaged in the recruitment and placement of workers for a fee which is charged, directly or indirectly, from the workers or employers or both. License — a document issued by the DOLE authorizing a person or entity to operate a private employment agency. Private recruitment entity — any person or association engaged in the recruitment and placement of workers locally or overseas, without charging directly or indirectly, any fee from the workers or employers. Authority — a document issued by the DOLE authorizing a person or association to engage in recruitment and placement activities as a private recruitment entity. Seaman — any person employed in a vessel engage in maritime navigation. Overseas employment — employment of a worker outside the Phil-El ippines. Emigrant — any person, worker or otherwise, who emigrates to a foreign country by virtue of an immigrant visa or resident permit or its equivalent in the country of destination. Original and Exclusive Jurisdiction under RA No. 8042: 1- all cases which are administrative in character, involving or arising out of violations of rules and regulations relating to licensing and registration of recruitment and employment agencies or entities; and 2. disciplinary action cases and other special cases which arc administrative in character, involving employers, principals, contracting partners and Filipino migrant workers. Grounds for Disciplinary Actions : Commission by the worker of any of the offenses enumerated below or of similar offenses while working overseas, shall be subject to appropriate actions as the POEA may deem necessary:

1. Commission of a felony punishable by Philippine laws or by the laws of the host country; 2. Drug addiction or possession or trafficking of prohib ited drugs; 3. Desertion or abandonment; 4. Drunkenness, specially where the laws of the host country prohibit intoxicating drinks; 5. Gambling, specially where the laws of the host coun try prohibit the same; 6. Initiating or joining a strike or work stoppage where the laws of the host country prohibits strikes or simi lar actions; 7. Creating trouble at the work site or in the vessel; 8. Embezzlement of company funds or of monies and properties of a fellow worker entrusted for delivery to kins or relatives in the Philippines; 9. Theft or robbery; 10. Prostitution; 11. Vandalism or destroying company property; 12. Gunrunning or possession of deadly weapons; 13. Unjust refusal to depart for the work site after all employment and travel documents have been duly approved by the appropriate government agency/ies; and 14. Violation/s of the laws and sacred practices of the host country and unjustified breach of government-approved employment contract by a worker.

•

Ban on Direct-Hiring: No employer may hire a Filipino worker for overseas employment except through the boards and entities authorized by the DOLE. Direct-hiring by members of the diplomatic corps, international organizations and such other employers as may be allowed by the DOLE is exempted from this provision.

Jurisdiction o f the NLRC with respect to Migrant Workers and Overseas Filipinos (RA No. 8042): • Money Claims — Labor Arbiters of the NLRC shall have the original and exclusive jurisdiction to hear and de cide, within 90 calendar days after the filing of the com plaint, the claims arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino workers for overseas deployment including

claims for actual, moral, exemplary, and other forms of damages. • The liability of the principal/employer and the recruit ment/placement agency for any and all claims under this law shall be joint and several. This provision of law shall be incorporated in the contract for overseas employment and shall be a condition precedent for its approval. The performance bond to be filed by the recruitment/place ment agency, as provided by law, shall be answerable for all money claims or damages that may be awarded to the workers. If the recruitment/placement agency is a juridi cal being, the corporate officers and directors and part ners as the case may be, shall themselves be jointly and solidarity liable with the corporation or partnership for the said claims and damages. Such liability shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution, amendment, or modifica tion made locally or in a foreign country of the said con tract. Minimum Employment Conditions: The POEA minimum requirements of employment contracts1. Guaranteed wages for regular working hours and over time pay for services rendered beyond regular working hours in accordance with the standards established by the administration; 2. Free transportation from point of hire to site of employ ment and return; 3. Free emergency medical and dental treatment and fa cilities; 4. Just causes for the termination of the contract or of the services of the workers; 5. Workmen's compensation benefits and war hazard pro tection; 6. Repatriation of worker's remains and property in cases of death to the point of hire, or if this is not possible un der the circumstances, the proper disposition thereof, upon prior arrangement with the worker's next of kin and the nearest Philippine embassy or consulate through the office of the attaches; 7. Assistance on remittance of worker's salaries, allowances or allotments to his beneficiaries; and 8. Free and adequate board and lodging facilities or com pensatory food allowance at prevailing cost of living standards at the job site.

Invalid Side Agreement — agreement that diminishes the em ployees pay and benefits as contained in a POEA-approved contract is void, unless such subsequent agreement is approved by the POEA. Prohibited Practices: it shall be unlawful for any individual, entity, licensee, or holder of authority: fa) To charge or accept, directly or indirectly, any amount greater than that specified in the schedule of allowable

fees prescribed by the Secretary of Labor, 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 docu ment or commit any act of misrepresentation for the pur pose of securing a license or authority under this Code; (d) To induce or attempt to induce a worker already employed to quit his employment in order to offer him to another unless the transfer is designed to liberate the worker from oppressive terms and conditions of employment; (e) To influence or to attempt to influence any person or en tity not to employ any worker who has not applied for employment through his agency; (f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dig nity of the Republic of the Philippines; (g) To obstruct or attempt to obstruct inspection by the Sec retary of Labor or by his duly authorized representatives; (h) To fail to file reports on the status of employment, placement vacancies, remittance of foreign exchange earnings, separation from jobs, departures and such other matters or information as may be required by the Secretary of Labor; (i) To substitute or alter employment contracts approved and verified by the Department of Labor from the time of actual signing thereof by the parties up to and including the periods of expiration of the same without the approval of the Secretary of Labor; (j) To become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of a travel agency; and (k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations other than those authorized under this Code and its implementing rules and regulations. Illegal Recruitment — any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring contract services, promising or advertising for employment abroad, whether for profit or not when undertaken by a non-licensee or non-holder of author ity contemplated under the Labor Code. Provided, That any such non-licensee or non-holder who, in any manner, offers or promises for a fee employment abroad to two or more per sons shall be deemed so engaged. It shall likewise include the following acts, whether committed by any person, whether a non-licensee, non-holder, licensee or holder of authority: 1. Charge or accept directly or indirectly any amount greater than that specified in the schedule of allowable fees prescribed by the SOLE, or to make a worker pay any amount greater than that actually received by him as a loan or advance;

2. Furnish or publish any false notice or information or document in relation to recruitment or employment; 3. Give any false notice, testimony, information or docu ment or commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code; 4. 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; 5. Influence or attempt to influence any person or entity not to employ any worker who has not applied for em ployment through his agency; 6. Engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dig nity of the Republic of the Philippines; 7. Obstruct or attempt to obstruct inspection by the SOLE or by his duly authorized representative; 8. Fail to submit reports on the status of employment, placement vacancies, remittance of foreign exchange earning, separation from jobs, departures and such other matters or information as may be required by the SOLE; 9. Substitute or alter to the prejudice of the worker, em ployment contracts approved and verified by the DOLE 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 DOLE; 10. 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 en gaged directly or indirectly in the management of a travel agency; 11. Withhold or deny travel documents from applicant work ers before departure for monetary or financial consid erations other than those authorized under the Labor Code and its implementing rules and regulations; 12. Failure to actually deploy without valid reason as de termined by the DOLE; and 13. Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment, in cases where the deploy ment does not actually take place without the worker's fault. Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage.

Illegal recruitment is deemed commited by a syndicate if carried out by a group of three or more persons conspiring or confederating with one another. It is deemed committed in large scale if committed against three or more persons individually or as a group. The persons criminally liable for the above offenses are the principals, accomplices, accessories. In case of juridical persons, the officers having control, management or direction of their business shall be liable.

State Policy on Human Resource Development (Art. 43 Labor Code): • 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 and accelerate economic and social growth. 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. Entrepreneurship — shall mean training for self-employment or assisting individual or small industries within the purview of the Labor Code. State Policy on Apprenticeship (Art. 57, Labor Code): 1. Help meet the demand of the economy for trained manpower; 2. Establish a national apprenticeship program through the participation of employers, workers, and government and non-government agencies; 3. Establish apprenticeship standards for the protection of ap prentices. Apprenticeship — means practical training on the job supplemented by related theoretical instruction. 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. 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. 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. 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. learners — 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. 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. Handicapped Workers — those whose earning capacity is impaired by age or physical or mental deficiency or injury. 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. Employment agreement: Any employer who employs handicapped workers shall enter into an employment agreement with them, which agreement shall include: a. The names and addresses of the handicapped workers to be employed; b. The rate to be paid the handicapped workers which shall not be less than seventy-five (75%) percent of the appli cable legal minimum wage; c. The duration of employment period; and d. 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. LABOR STANDARDS Elements of Employer and Employee Relationship: S 1. selection and engagement of the employee; W 2. payment of wages; . D 3. power of dismissal; and C

4. power to control the employee with respect to the means and methods by which the work is to be accomplished. KEY: S W D C

•

refers to the minimum terms and conditions of employment which employees are legally entitled to and employers must comply with.

•

generally, employers and employees may provide for other terms and conditions either by:

(a) company policy; (b) contract; or (c) CBA, provided that such terms are above the minimum prescribed by law. •

guiding principle: whatever is beneficial to labor.

Conditions of Employment Hours of Work (Art. 83, Labor Code) Normal Hours of Work: not to exceed 8 hours = regular wage per day Health Personnel — in cities and municipalities with population of at least 1 million or in hospitals and clinics with a bed capacity of at least 100 shall hold regular office hours for eight hours a day for 5 days a week, or a total of 40 hours a week, exclusive of time for meals, except where the exigencies of the service require that such personnel work for 6 days or 48 hours, in which case they shall be entitled to an additional compensation of at least 30% of their regular wages for work on the 6th day. health Personnel — resident physicians, nurses, nutritionists, dietitians, pharmacist, social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and all other hospitals or clinic personnel. Excess considered overtime = overtime pay + overtime premium pay Application of the Rule: applies to employees in all establishments and undertaking, whether for profit or not.

Except: 1. Government employees of the national government or any of its political subdivisions; excluded because they are not covered by Labor Code but by the Civil Service Law; 2. Managerial employees; 3. Field personnel — non-agricultural workers who regularly perform their duties away from the office or place of business of the employer, and whose actual work hours in the field cannot be determined with reasonable certainty; 4.

Domestic servants and persons in the personal service of another; and

5.

Members of the family of the employer if they are dependent on employer for support. KEY: G M D F2

computation of Hours Worked

Hours of work shall include (Art. 84, Labor

Code) 1. all time during which an employee is required to be on duty or to be at a prescribed work place; and 2, all time during which an employee is suffered or permit ted to work. need to be doing actual work; only required to be on duty regardless of whether or not such hours are spent in productive labor or involve physical or mental exertion.

Waiting Time: compensable if waiting is an integral part of Work or required or engaged by employer to wait.

Subject to Call: compensable if required to remain on call in employer's premises or close thereto so that he cannot use the time effectively and gainfully for his own purpose. • But not compensable when employee is kept "within reach" through mobile telephone or other contact device such as pagers, notwithstanding that they must remain within a certain geographical area. •

Meal Periods: compensable if not more than 60 minutes and employee cannot leave work place (Art. 85, Labor Code).

•

Working while sleeping: sleeping time may be considered working time if it is subject to serious interruption or takes place under conditions substantially less desirable than would be likely to exist at the employee's home.

•

Training Programs, Lectures, Meetings: not compensable if attendance is outside of the employee's regular work ing hours; attendance is voluntary; and employee does not perform any productive work during attendance.

•

Brief Rest Period: compensable if intervals too brief to be used effectively and gainfully in the interest of the employee.

•

Necessary work: compensable if necessary; benefited the employer, or employee cannot abandon work because he had no replacement provided with knowledge of employer or su pervisor.

•

Travel Time: compensable if required by the employer or taken for the employer's benefit.

•

Brownout/Work Interruptions: compensable if not exceed ing 3 hours; employee cannot leave workplace and cannot make use of his time for own purpose.

•

Grievance meeting: time spent in adjusting grievance between employer and employees during the time the em ployees are required by the employer to be on the premises is hours worked.

•

Semestral Break: Regular full-time teachers are entitled to salary and emergency cost-of-living-allowance during semestral breaks. overtime Pay Consent of both employer or employee needed for rendition overtime work. Instances when employer may compel employee to render ove rtime work:

W 1. when country is at war or when any other national or local emergency has been declared by Congress or the President; E 2. 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 pending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity; U 3. 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; L 4. when the work is necessary to prevent loss or damage to perishable goods; P 5. when the completion or continuation of the work started before the 8 hrs. is necessary to prevent serious obstruction or prejudice to the business or operations of the employer; and W 6. where overtime work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon (Art. 89, Labor Code). KEY:LUPW 2 E Employees not entitled to overtime pay: G 1. Government employees in the civil service; F 2. members of the family of the employer if there are dependent on employer for support: D 3. domestic servants and persons in the personal service of another; M 4. and R 6.

managerial employees; F

5.

field personnel;

workers who are paid by results (Art. 82, Labor Code). KEY: G M D F2 R

Undertime not offset by overtime (Art. 88, Labor Code). Regular wage includes cash wage only as far as computa tion of overtime pay (Art. 90, Labor Code). Nightshirt Differential (NSD) • not less than 10% of regular wage for each hour worked be tween 10 o'clock P.M. and 6 o'clock A.M. the following day (Art. 86, Labor Code). •

Employees not entitled to NSD: G 1. Government employees in the civil service; N 2. those of retail and service establishments regularly employing not more than 5 workers; D 3. domestic servants and persons in the personal service of another;

M 4. managerial employees; F

5.

field personnel.

KEY: G M D Fn Retail Establishment — one open to the general consuming public for the sale of goods that are commonly bought by end-users for personal or household use. Service Establishment — one engaged predominantly in the sale of services to individuals for their own or household use (Alcantara, Reviewer in Labor and Social Legislation, 1995 ed., p. 128). Weekly Rest Periods it is the duty of every employer, whether operating for profit or not, to provide each of his employees a rest period of not less than 24 consecutive hours after every six consecutive normal work days. employer has discretion on what will be employee's rest day but must respect the latter's preference based on religious grounds (Art. 91, Labor Code). work on Employee's Rest day General Rule: employee cannot be compelled to render work on his rest day. Except: E 1. In case of actual or impending emergency caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity, to prevent loss of life or property, or in case of force majeure or imminent danger to public safety; U 2. When there is urgent work to be performed on machines, installations, or equipment, to avoid serious loss or damage to the employer; A 3. In the event of abnormal pressure of work due to special circumstances, where employer cannot ordinarily be expected to resort to other measures; L 4. To prevent loss or damage to perishable goods; C 5. Where the nature of the work is such that the employees have to work continuously for 7 days in a week or more, as in the case of the crew members of a vessel to complete a voyage and in other similar cases; W 6. Where work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon (Art. 92, Labor Code); and A 7. Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor. KEY: UCAELAW • Rest days are considered unpaid off-days. Additional Compensation for Work on Rest Day (Art. 93, Labor Code) 1. regular work on rest day = 30% of regular wage; 1. work on rest day falling on national special day = 50% of regular wage;

2. work on rest day falling on regular holiday = 30% of his regular holiday pay based on his regular wage rate. Holiday Pay Kinds of Holidays: A. Regular Holidays — 1. New Year's Day, 1/1 2. Maundy Thursday, movable date 3. Good Friday, movable date 4. Araw ng Kagitingan, 4/9 5. Labor Day, 5/1 6. Independence Day, 6/12 7. National Heroes' Day, last Sunday of August 8. Bonifacio Day, 11/30 9. Christmas Day, 12/25 10. Rizal Day, 12/30 (E.O. No. 203). B. Special National Days — 1. All Saint's Day, 11/1 2. Last Day of the Year, 12/31 (LOI 814 as amended by LOI 1087) • Regular Holidays are paid days, even if unworked. If worked, employee is entitled to regular wage plus 100% of regular wage.

If worked and it falls on employee's rest day, he is entitled to regu lar holiday pay (200%) plus 30% thereof. general Rule: monthly paid employees are paid holiday pay, even if unworked. Exception: when paid for all days of the month whether worked or unworked. effect of Absences on Holiday Pay: day before holiday employee is:

worked

unworked

on leave with pay

200%

100%

on leave without pay

200%

No pay

(FLAG Primer on Labor Standards, 1994 ed.) Pay in case of Two (2) Holidays in Same Day (Araw ng Kagitingan and Good Friday, April 9): 1. 200% even if unworked for daily paid. 1. 100% or none for monthly paid if worked or unworked, respectively. Service Incentive Leave employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay. *

Benefit applies to all except: G 1. government employees in the civil service; D 2. domestic servant or persons in the personal service of another; M 3. managerial employees; F 4. field personnel; E

5.

those already enjoying such benefit;

V

6.

those enjoying vacation leaves with pay of at least 5 days; and

L

7,

those employed in firms regularly employing less than 10 employees (Art. 95, Labor Code). KEY: G M D F V E L

Service incentive leave is commutable to its money equivalent if it is not used or exhausted at the end of the year. Paternity Leave Act of 1996 Republic Act No. 8187

•

Every married male employee in the private and public sec tors shall be entitled to a paternity leave of seven (7) days with full pay for the first four (4) deliveries of the legiti mate spouse with whom he is cohabiting. The male employee applying for paternity leave shall notify his employer of the pregnancy of his legitimate spouse and the expected date of such delivery.

•

Delivery shall include childbirth or any miscarriage.

Paternity Leave — refers to the benefits granted to a married male employee allowing him not to report for work for seven (7) days but continues to earn the compensation therefor, on the condition that his spouse has delivered a child or suffered a miscarriage for purposes of enabling him to effectively lend support to his wife in her period of recovery and/or in the nursing of the newly-born child. Service Charges •

all service charges collected by hotels, restaurants and similar establishments are to be distributed at the rate of 85% for the employees, and 15% for the management,

•

The employee's share shall be apportioned equally among all employees, regardless of position or employment status. The management share will answer for losses and break ages, or at his discretion, to distribute this to employees receiving more than P2,000 a month (Art. 96, Labor Code)

In case service charge is abolished, share of employees shall be considered integrated in their wages. This integration shall be based on the average monthly share of each employee for the past twelve months immediately preceding the abolition. To determine whether the compensation of employees in these establishment conform to increases in the statutory minimum wages, only 50% of the credited service charges shall be included. Where the credited amount is less than the increase prescribed by a minimum wage law, the employer shall pay the difference. Wages Wages — remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for the services rendered or to be rendered (Art. 97 [j], Labor Code). Basic Salary — rate of pay for a standard work period exclusive of such additional payments as bonuses and overtime (Boie-Takeda Chemicals, Inc. v. Dela Serna, 46 SCAD 690, Dec. 10, 1993). Bonus — amount granted and paid to an employee for his industry and loyalty which contributed to the success of the employer's business and made possible the realization of profits. Elements of Wages:

1- cash wage — monetary currency paid by an employer to an employee for work or services rendered. 2. facilities — vital necessities, articles or services customarily given for the benefit of the employee or his family, excluding tools of the trade or, articles or services primarily for the benefit of the employer or necessary to the conduct of the employers business. Reasonable value of the same may be deducted from the cash wage (Sec. 5, Rule VII. Book III, Implementing Rules and Regulations). Requisites before value of facilities can be deducted : 1. customarily given; 2. voluntarily accepted in writing by the employee; 3. they are charged at a fair and reasonable value; and 4. within limits set by the DOLE. Circumstances Regarding Payment of Wages Forms of wages: 1.

legal tender;

2.

check or money order, provided: a. customary; b. provided in collective bargaining agreement; or c. at the option of employer, provided, further, that: (i) there is a bank or other facilities for encashment within a radius of 1 kilometer from the workplace; (ii) the employer, or any of its agents or representatives, does not receive any pecuniary benefit directly or indirectly from the arrangement; (iii) the employees are given reasonable time during banking hours to withdraw their wages from the bank, which time shall be considered as compensable time if done during working hours; and (iv) the check payment is with written consent of the employees concerned if there is no collective agreement authorizing this manner of payment (Sec. 2. Rule VIII, Book III, Implementing Rules and Regulation).

Paym ent of Wages Thro ugh a Bank: (Conditions) • Upon written permission of the majority of the employees or workers concerned, all private establishments, companies, business, and other entities with 25 or more employees and located within 1 kilometer radius to a commercial, savings or rural bank shall pay the wages and other benefits of their employees through any of said

banks and within the period of payment of wages fixed by the Labor Code (Sec. 7, RA 6727).

The Labor Code prohibits payment of wages by means of: 1. promissory notes; 2. vouchers; 3. coupons;

4. tokens; 5. tickets; 6.. chits; or 7. any other objects other than legal tender, • even if expressly requested by the employee. Time of Payment at least once every two weeks at intervals not exceeding 16 days. In no case may employer pay wages with less frequency than once a month. Payment of wages of employees engaged to perform a task which cannot be completed in two weeks subject to the following conditions: 1. payments are made at intervals not exceeding 16 days, in proportion to the amount of work completed; 2. final settlement is made upon completion of the work (Art. 103, Labor Code). place of Payment General rule: at or near the place of undertaking. exceptions: E 1. when due to the deterioration of peace and order conditions, or by reason of actual or impending emergencies caused by a calamity, payment at or near the workplace is impossible; T

2.

when employer provides free transportation to the em ployees back and forth;

A

3. under any analogous circumstances, provided that time spent in collecting their wages shall be compensable. KEY: ETA Prohibited places of payment : 1. bars, or night or day clubs; 2. drinking establishment; 3. massage clinics; 4. dance halls or similar places; and in 5. places where games are played with stakes of money or things representing money;

Except: in the case of persons employed in said establishment (Sec. 4, Rule VIII, Book III, Implementing Rules and Regulation). Manner of Payment General rule: wages are to be paid to the employee entitled thereto. Exceptions:

W

1. where the employer is authorized in writing by the em ployee to pay his wages to a member of his family; 2. where payment to another person of any part of employee's wage is: p a. specifically provided by law, even without em ployee's consent, e.g., withholding tax, SSS and Medicare; c b. authorized by law, with the employee's consent. e.g., insurance premiums of the employee, union check offs, payments to a cooperative, deductions for facilities;

a

c.

authorized by law, even without the employee's consent, e.g., deposits for loss and breakages, court judgments for support.

D 3, in case of death of the employee, his wages may be paid to his heirs without the necessity of intestate proceedings. KEY: WD c a p Wage Distortion — a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions (Art. 124, Labor

Code).

Responsibility for Payment of Wages employer is the person responsible for the payment of wages of his employees. Employer — any person acting directly or indirectly in the interest of the employer in relation to an employee. Employee — any individual employed by an employer. Additional level of responsibility for payment of wages: contracting. Contracting — employer contracts with another person for former's work or who, not being an employer, contracts with an independent contractor for performance of any work, task, job or project, wherein principal is deemed an indirect employer. in both cases, principal concerned is liable jointly and severally with his contractor or sub-contractor to pay wages of latter's employees to the extent of work performed under the contract, in the event of failure of contractor or sub-contractor to do so. principal or indirect employer may require contractor or subcontractor to furnish bond that will answer for the wages due to the employees in case of failure of contractor or sub-IB? contractor to do so. • in addition to the liability for wages, direct and indirect employers are likewise jointly and severally liable for violations of the Labor Code and unfair labor practices. Types of Contracting: 1.

Job contracting — contractor carries on an independent business and undertakes the contract work on his own ac count under his own responsibility, according to his own manner and method, free from the control and direction of his employer or principal in all matters connected with the performance of the work except as to the result thereof, and the contractor has substantial capital or investment neces sary in the conduct of his business.

2.

Labor-only contracting — any person who undertakes to supply workers to an employer shall be deemed to be en gaged in labor-contracting where such person: (a) does not have substantial capital and investment; and (b) the work ers recruited and placed by such persons are performing ac tivities directly related to the principal business or opera tions of the employer in which employees are habitually employed.

Job contracting is permissible by law; labor-only contracting is prohibited as contrary to public policy to promote full employment. Finding that a contractor is a labor-only contractor is equivalent to a finding that there exists an employer-employee relationship between the owner of the project and the employees of the labor-only contractor since that relationship is defined and prescribed by the law itself. Legal Relationships Created : Type of Contracting

Contractor

Principal/ contractee

Job Contracting

direct employer

indirect employer Principal

Labor-only Contracting

agent of principal

direct employer

Pay liable

both J & S

Workers Preference in case of Bankruptcy "x x x, such unpaid wages and monetary claims shall be paid in full before the claims of the Government and other creditors may be paid (Art 110, Labor Code)." •

Hi

Workers preference is still subject to the Civil Code provi sion on concurrence and preference of credits such that Art. 110 does not create a lien, but only a preference which ap plies to claims that do not create a charge on particular property. Hence, a mortgage is superior to worker preference, for a preference applies only to claims which do not attach to specific property, whereas a mortgage creates a lien or charge on a particular property. Art. 110 cannot be invoked without a formal declaration of bankruptcy or a liquidation order.

prohibited Acts Regarding Wages : I

1. Interference in the disposal

of wages; • No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages. He shall not in any manner force, compel, or oblige his employees to purchase merchandise, commodities, or other property from the employer or from other persons, or otherwise make use of any store or service of such employer or any other person (Art. 112, Labor Code).

U

2. Unlawful deductions on wages, except: a. specifically provided by law, even without employee's consent, e.g., withholding tax, SSS and Medicare;

b. authorized by law, with the employee's consent, e.g., insurance premiums of the employee, union check offs, payments to a cooperative, deductions for facilities; c. authorized by law, even without the employee's consent, e.g., deposits for loss and breakages, court judg ments for support. d. when deductions are authorized by regulations issued by the Sec. of Labor; D

3. Deposits for loss or damage, except: • employer engaged in such trade, occupation or busi ness where making deductions or requiring deposits is a recognized practice, or is necessary or desirable, subject to following conditions: a. employee is clearly responsible for loss or dam age; b. reasonable opportunity is given to employee to explain why deductions should not be made; c. amount of deduction fair and reasonable, and shall not exceed value of loss or damage; d. deduction from wages does not exceed 20% of weekly wage (Art. 114, Labor Code; Sec. 11, Rule VIII, Book III, Implementing Rules and Regula tion);

W 4. Withholding of wages and kickbacks — It shall be un lawful for any person, directly or indirectly, to withhold any amount from the wages of a worker or induce him to give up any part of his wages by force, stealth, intimidation, threat or by any other means whatsoever without the worker's consent; E 5. Deduction to Ensure employment — It shall be unlawful to make any deduction from the wages of any employee for the benefit of the employer or his representative or intermediary as consideration of a promise of employ ment or retention in employment; R 6. Retaliatory measures — It shall be unlawful for an em ployer to refuse to pay or reduce the wages and benefits, discharge or in any manner discriminate against any employee who has filed any complaint or instituted any proceeding under this Title or has testified or is about to testify in such proceedings; F 7. False reporting — It shall be unlawful for any person to make any statement, report, or record filed or kept pur-

,

suant to the provisions of this Code knowing such statement, report or record to be false in any material respect; 8. Compelling patronage. administration and Enforcement Measures visitorial Power — Art. 37 — SOLE or his duly authorized representative may, at any time, inspect the premises, books of accounts and records of any person or entity engaged in recruitment and placement, require it to submit reports regularly on pre scribed forms, and act on violations of any provisions of the Code on recruitment and placement. Art. 128 — SOLE or his duly authorized representative shall have access to employer's records and premises to determine violations of or enforce the Code and any labor law, wage order or rules and regulations issued pursuant thereto. Art. 165 — DOLE is empowered to conduct industrial safety (inspections of establishments.

'Art. 274 — SOLE or his duly authorized representative is empowered to inquire into the financial activities of legitimate labor organizations and examine their books of accounts upon the filing of a complaint under oath and duly supported by the written consent of at least 20% of the total member ship of the labor organization. Enforcement Power — Art. 128 (b), as amended by RA 7730 (June 2, 1994) — notwithstanding the provisions of Art. 129 and Art. 217 of the Code to the contrary, and in case where the relationship of employer-employee still exists, the SOLE or his duly authorized representatives shall have the power to (Issue compliance orders to give effect to the labor standards provisions of the Code and other labor legislation based on the findings of labor employment and enforcement officers or industrial safety engineers made in the course of inspection. The SOLE or his duly authorized representatives shall issue writs of execution to the appropriate authority for the enforcement of their orders, except in cases where the employer contests the findings of the labor employment and

enforcement officer and raises issues supported by documentary proofs which were not considered in the course of inspection.

Any order issued by the duly authorized representaitve of the SOLE under this article may be appealed to the latter. In case said order involves a monetry award, an appeal by an employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the SOLE in the amount equivalent to the monetary award in the order appealed from. Recovery of Wages, Simple Money Claims (Recovery Power) — power of the Regional Director or any of the duly authorized hearing officers of the department, xxx, that upon complaint of any interested party, through summary proceedings and after due notice, to hear and decide any matter involving the recovery of wages and other monetary claims and benefits, including legal interests, owing to an employee or domestic servants, xxx, arising from employer/employee relations; Provided, That each complaint does not include a claim for reinstatement: Provided, further, That the aggregate money claim of each employee or house helper does not exceed P5,000. Requisites: P 1. claim is presented by an employee or person employed in domestic service;

A 2. claim arises from employer-employee relation ship; N 3. complaint does not include claim for reinstatement. If employer-employee relationship no longer exists, and the claimant does not seek reinstatement, it becomes a mere money claim cognizable by the Labor Arbiter, not by Regional Director; A 4. aggregate money claim including legal interest does not exceed P5,000.00. KEY. P A N A Pls note the procedure in NLRC: compromise Agreement — any compromise settlement, including those involving labor standards laws, voluntarily agreed upon by the parties with the assistance of the BLR or the Regional Office shall be final and binding upon the parties. The NLRC or any court shall not assume jurisdiction over issues involved therein except in case of noncompliance thereof or if there is prima facie evidence that the settlement was obtained through fraud, misrepresentation, or coercion. • Similarly, compromise agreements with respect to the visitorial power shall be reduced in writing and signed by the parties in the presence of the Regional Director or his duly authorized representative. Emergency Cost of Living Allowance (ECOLA) •

P.D. No. 1614 and E.O. No. 178 integrated the said allow ances granted into the basic wages of employees covered.

13th Month Pay (PD 851) • year-end pay = 1/12 of the basic salary within a calendar year. • demandable as a legal obligation. • 13th month pay in nature of wages not bonuses. • provided by law which cannot be denied to employees. • However, not included in computation of additional benefits. Employers Exempted from Giving 13th Month Pay: G 1. Government/political subdivisions/GOCC's, except corporations operating as private subsidiaries of government; D 2. Employers of domestic servants and persons in the personal service of another in relation to such workers; C 3. Employers of those paid on purely commission, boundary, or task basis, and those paid a fixed amount for specific work, irrespective of time spent in performance thereof, except where workers are paid on piece-rate basis in which case employer shall grant required 13th month pay to such workers; and

A 4. Employer already paying employees 13th month pay or more or equivalent. KEY: C A D G If no stipulation in CBA regarding treatment of bonuses which are equal to or more than 13th month pay, treat bonuses as 13th month pay. Minimum Wage Rates Provided in R.A. No. 6727 Changed scheme of prescribing minimum wages from national to regional basis. Created Regional Tripartite Wages and Productivity Boards and promoted collective bargaining and adjusting wage rates in fair and equitable manner under prevailing conditions. Minimum wage may be: 1. daily wage; or 2. monthly wage — paid for all days of month = daily wage basis in determining whether Minimum Wage is followed. Monthly-paid Employee — paid a fixed amount per month irrespective of the number or working days therein and is considered paid during rest days or holidays even if unworked. Daily-paid Employee — one who is paid only on the days he actually works, except unworked regular holidays where he is paid his basic wage if he is present or on leave of absence with pay on the working day immediately preceding the regular holiday. Floor Wage Method — determined amount to be paid on top of all prevailing amounts. Salary Ceiling Method — fixed amount to be paid on top of specified wage range (Alcantara, p. 160). Wage Distortion — shall mean a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation. Labor Code Provisions Regarding Working Women: 1.

Prohibition from

night work within certain hours; • industrial undertakings = 10:00 p.m. to 6:00 a.m. next day • commercial undertaking not agricultural: 12:00 m.n. to 6:00 a.m. the next day • agricultural undertaking: night time unless given rest period for not less than 9 hours • Exceptions: a. b. c. d.

actual emergencies to prevent loss of life or property; urgent work to be done on machines; to prevent serious loss to perishable goods; managerial or technical/health services;

e. nature of work requires manual dexterity; and f. immediate members of the family (Art. 130, Labor Code; Sec. 5, Rule XI, Book III, Implementing Rules and Regulations). 2. Requirement of special facilities for women (Art. 132, Labor Code); 3. Requirement of free family planning services for women (Art. 134, Labor Code); 4. Prohibition from sexual discrimination (Art. 135, Labor Code); • Acts of Discrimination: 1. payment of lesser compensation; 2. favoring a male employee over a female employee with respect to promotion, training opportunities, study and scholarship grants solely on account of their sexes. Outlawing stipulations against marriage (Art. 136, Labor Code); and

5. 6.

Specific prohibited acts of employer vis-a-vis women: a. to discharge her to prevent availment of benefits; b. to discharge on account of her pregnancy; c. to refuse to admit for fear of further pregnancy; and d. to discharge for having filed a complaint/testimony. 7.

Stipulation against marriage: • It shall be unlawful for an employer to require as a condition of employment or continuation of employment that a woman employee shall not get married, or to stipulate expressly or tacitly that upon getting married, a woman employee shall be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage. Maternity Benefits Act No. 7322 Republic Act No. 7322

AN ACT INCREASING MATERNITY BENEFITS IN FAVOR OF WOMEN WORKERS IN THE PRIVATE SECTOR, AMENDING FOR THE PURPOSE SECTION 14-A OF REPUBLIC ACT NO. 1161, AS AMENDED, AND FOR OTHER PURPOSES. ,, Maternity Leave Benefit. — A covered female employee who has paid at least three monthly maternity contributions in the twelve-month period preceding the semester of her childbirth, abortion or miscarriage and who is currently employed shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her present basic salary, allowances and other benefits or the cash equivalent of such benefits for sixty (60) days subject to the following conditions: 1. That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth which notice shall be transmitted to the SSS in accord ance with the rules and regulations it may provide;

2. That the payment shall be advanced by the employer in two equal installments within thirty (30) days from the filing of the maternity leave application: That in case of caesarian delivery, the employee shall be paid the daily maternity benefit for seventy-eight (78) days; 4. That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same compensable period of sixty (60) days for the same childbirth, abortion, or miscarriage; 5. That the maternity benefits provided under this Section shall be paid only for the first four deliveries after March 13, 1973; 6. That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of mater nity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof; and 7. That if an employee should give birth or suffer abortion or miscarriage without the required contributions hav ing been remitted for her by her employer to the SSS, or without the latter having been previously notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which said employee would otherwise have been entitled to, and the SSS shall in turn pay such amount to the employee concerned. Sexual Harassment Act of 1995 Republic Act No. 7877 Work, Education or Training-related Sexual Harassment — committed by an employer, employee, manager, supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or by any other person who, having authority, influence or moral ascendancy over another in a work or training or education environment, demands, requests or otherwise requires any sexual favor from the other, regardless of whether the demand, request or requirement for submission is accepted by the subject of said act (Sec. 3, RA 7877). Employment or Work-related Sexual Harassment (Sec. Sec. 3 [a]. RA 7877): 1.

Sexual favor is made a condition in the hiring or in the employment, re-employment or continued employment of said

individual, or in granting said individual favorable compensation, terms, conditions, promotions, or privileges, or the refusal to grant the sexual favor results in limiting, segregating or classifying the employee which in any way would discriminate, deprive, diminish employment opportunities or otherwise adversely affect said employee; 2. The above acts would impair the employee's rights and privi leges under existing labor laws; or 3. the above acts would result in an intimidating, hostile, or offensive environment for the employee. Duty of the Employer vis-a-vis the Prevention or Deterrence of the Commission of Acts of Sexual Harassment (Sec. 4, RA 7877): 1. prevent or deter the commission of acts of sexual harass ment and to provide the procedures for the resolution, set tlement or prosecution of acts of sexual harassment; 2. promulgate appropriate rules and regulations prescribing the procedure for the investigation of sexual harassment cases and the administrative sanctions therefor; and 3. create a committee on decorum and investigation of cases of sexual harassment. Liability of Employer (Sec. 5, RA 7877): Employer shall be solidarily liable for damages arising from the acts of sexual harassment committed in the employment if the employer of head or office is informed of such acts by the offended party and no immediate action is taken thereon. Penalties (Sec. 7, RA 7877): • Imprisonment of not less than 1 month nor more than 6 months, or a fine of not less than P10,000.00 nor more than P20,000, or both, at the discretion of the court. Prescriptive Period — 3 years Employment Of Minors Minimum employable age : •

No child below fifteen (15) years of age shall be employed, except when he works directly under the sole responsibility of his parents or guardian, and his employment does not in any way interfere with his schooling.

•

Any person between fifteen (15) and eighteen (18) years of age may be employed for such number of hours and such periods of the day as determined by the Secretary of Labor and Employment in appropriate regulations.

•

The foregoing provisions shall in no case allow the employ ment of a person below eighteen (18) years of age in an un

dertaking which is hazardous or deleterious in nature as de termined by the Secretary of Labor and Employment. The Following shall be Considered Hazardous Workplaces (Worker must be 18 and above) : 1. Where the nature of the work exposes the workers to dangerous environmental elements, contaminations or work conditions including ionizing radiations, chemicals, fire, flammable substances, noxious components, and the like; 2. Where the workers are engaged in construction work, log ging, fire-fighting, mining, quarrying, blasting, steve doring, dockwork, deep-sea fishing, and mechanized farming; 3. Where the workers are engaged in the manufacture or handling of explosives and other pyrotechnic products; 4. Where the workers use or are exposed to heavy or powerdriven machinery or equipment; and 5. Where workers use or are exposed to power-driven tools. R.A. No. 7658 — Prohibits the employment of children below 15 years of age. Exceptions and C onditions: 1.

When the child works directly under the sole responsi b i l i t y of his/her parents or legal guardian who employs members of his/her family only, under the following conditions: a. The employment does not endanger the child's life, safety, health and morals; b. The employment does not impair the child's normal development; and c. The employer parent or legal guardian provides the child with the primary and/or secondary education prescribed by the DECS.

2. Where the child's employment or participation in public entertainment or information through cinema, theater, radio or television is essential, provided that: a. The employment does not involve advertisements for commercials promoting alcoholic beverages, intoxi cating drinks, tobacco and its by-products or exhibit ing violence; b. There is a written contract approved by the DOLE; and c. The conditions prescribed in RA 7658 are met. • Prohibition against child discrimination: No employer shall discriminate against any person in respect to terms and conditions of employment on account of his age. Househelpers and Homeworkers

Domestic or Household Service — service in the employer's home which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employer's household, including services of family drivers (Art. 141, Labor Code). Minimum wage of house helpers_ (Art. 143, Labor Code): • In Metro Manila and other highly urbanized cities = P800.00 • Other chartered cities and 1st class municipalities = P650.00 For those in other municipalities = P550.00.

Househelpers receiving at least Pl,000.00 shall be covered by the SSS and entitled to all benefits therein. Minimum Cash Wage — basic cash wage which shall be paid to the househelpers in addition to lodging, food and medical attendance (Art. 144, Labor Code). If the househelper is under the age of 18 years, the employer shall give him/her an opportunity for at least elementary education which shall be part of the househelper's compensation, unless there is a stipulation to the contrary (Art. 146, Labor Code). The employer shall treat the househelper in a just and humane manner. In no case shall physical violence be used upon the househelper (Art. 147, Labor Code). The employer shall furnish the househelper free of charge suitable and sanitary living quarters as well as adequate food and medical attendance (Art. 148, Labor Code). If the period of household service is fixed, neither the employer nor the househelper may terminate the contract before the expiration of the term, except for a cause. If the househelper is unjustly dismissed, he or she shall be paid the compensation already earned plus that for 15 days by way of indemnity. If the househelper leaves without justifiable reason, he or she shall forfeit any unpaid salary due him or her not exceeding 15 days (Art. 149, Labor Code). Homeworker — person who performs in or about his home any processing or fabrication or of goods or materials, in whole or in part, which have been furnished directly or indirectly, by an employer and thereafter sold or returned (Alcantara, p. 208). Medical Benefits (Art. 165, Labor Code) Medical and Dental services that employer must extend: 1. first aid medicines and equipment as nature and condi tions of work require and to take steps for the training of a sufficient number of employees in first-aid treatment; 2. furnish free medical and dental attendance and equip ment; and

3. provide all necessary assistance to ensure adequate and immediate medical and dental assistance and treatment to an injured or sick employee in case of emergency. free Medical and Dental attendance and equipment com prised of (Sec. 4, Rule 1, Book IV, Implementing Rules and Regulation): 1. no. of employees: 10-50 a. graduate first-aider, may be one of employees; and b. first-aid materials. 2. more than 50 but less than 200: a. full time registered nurse but may be graduate firstaider in non-hazardous workplaces; and b. first-aid materials. 3. more than 200 but less than 300: a. full-time registered nurse; b. part-time physician (2 hours/day at least and always on call); c. part-time dentist (2 hours/day at least and always on call); d. emergency clinic. 4. more than 300 and hazardous workplaces: a. full-time registered nurse; b. full-time physician (8 hours/day at least and always on call); c. full-time dentist (8 hours/day at least and always on call); d. dental clinic; e. infirmary or emergency hospital (bed: 1/100 employ ees). 5. more than 300 and non-hazardous workplaces: a. full-time registered nurse; b. part-time physician (2 hours/day at least and always on call); c. part-time dentist (2 hours/day at least and always on call); d. dental clinic; e. infirmary or emergency hospital (bed: 1/100 employ ees). In workplaces having more than 1 working shift: graduate first aider per shift. LABOR RELATIONS

• refers to the interactions between employer and employees or their representatives and the mechanism by which employment standards are negotiated, adjusted and enforced. State Policy on Collective Bargaining. Trade Unionism, and Other Matters Concerning Labor Relations: 1. promote free collective bargaining, including voluntary arbitration, as a mode of settling labor or industrial disputes; 2. promote free trade unionism as an agent of democracy, so cial justice and development; 3. foster free and voluntary organization of a strong and united labor movement; 4. promote the enlightenment of workers concerning their rights and obligations as union members and as employees; 1. provide an adequate administrative machinery for the expeditious settlement of labor and industrial disputes; 6. ensure a stable but dynamic and just industrial peace; 6. encourage representation of workers and employers in policy-making bodies of the government (Tripartism). Definitions: Labor Organizations — any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment.

employer — includes any person acting in the interest of an employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents, except when acting as employer. employee —• any person in the employ of an employer. Term shall not be limited to employees of a particular employer, except when Labor Code explicitly states. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute, or because of any unfair labor if he has not obtained any other substantially equivalent and regular employment. Legitimate Labor Organization — any labor organization duly registered with the DOLE, and includes any branch or local thereof. Company Union — any labor organization whose formation, . function or administration has been assisted by any act defined as ULP by the Labor Code. Bargaining Representative — a legitimate labor organization or any officer or agent of such organization whether or not employed by the employer. , Labor Dispute — any controversy or matter concerning terms or conditions of employment or the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the terms and conditions of employment, regardless of whether the disputants stand in the proximate relation of employer or employee. Managerial Employee — one who is vested with powers or prerogatives to lay down and execute management policies and/ or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees. Characteristics of Managerial Employee: 1. he is not subject to the rigid observance of regular office 2. his work requires the consistent exercise of discretion and judgment in its performance; 3. the output produced or the result accomplished cannot be standardized in relation to a given period of time; 4. he manages a customarily recognized department or sub division of the establishment, customarily and regularly directing the work of other employees therein; 5. he either has the authority to hire or discharge other employees or his suggestions and other recommendations as to hiring and discharging, advancement and promo tion and other change of status of other employees are given particular weight; and 6. as a rule, he is not paid hourly wages nor subject to maxi mum hours of work. Supervisory Employee — one who, in the interest of the employer, effectively recommend such managerial actions if the . exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment. Rank-and-file Employees — all employees not falling within any of above definitions.

Voluntary Arbitration — any person accredited by the Board as such, any person named or designated in the CBA by the parties to act as their voluntary arbitrator, or one chosen, with or without the assistance of the NCMB, pursuant to a selection procedure agreed upon in the CBA, or any official that may be authorized by Secretary of DOLE to act as voluntary arbitrator upon written request and agreement of the parties to a labor dispute. Strike — any temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute. Picketing — stationing of persons before the premises of an establishment involved in labor dispute, generally accompanied by the carrying and display of signs, placards or banners stating the issues involved in the dispute. Lock-out — temporary refusal of an employer to furnish work as a result of an industrial or labor dispute. Internal Union Dispute — all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by-laws of the union, including any violation of the right and conditions of union membership provided for in the Labor Code. Strike-Breaker — any person who obstructs, impedes, or interferes with by force, violence, coercion, threats or intimidation any peaceful picketing by employees during any labor controversy affecting wages, hours or conditions of work or in the exercise of the right of self-organization or collective bargaining. Strike Area — establishment, warehouses, depots, plants or offices, including the sites or premises used as runaway shops of the employer struck against, as well as the immediate vicinity actually used by picketing strikers in moving to and fro before all points of entrance to and exit from said establishment. Bargaining Unit — legal collectivity for collective bargaining purposes whose members have substantially mutual bargaining interests in terms and conditions of employment as will assure to all employees the exercise of their collective bargaining rights. Elements: 1. the will of the employees (Globe doctrine): 2. affinity and unity of employees' interests, such as similarities of duties and working conditions; 3..

prior collective bargaining history; and

4..

employment status, positions and categories of work.

Collective Bargaining — bargaining by a labor organization, in behalf of its members, with the employer regarding terms and conditions of employment. Kinds of Labor Disputes: 1. Labor Standards Disputes: a. Compensation - e.g.; under payment of minimum wage, stringent output quota, illegal pay deductions; b. Benefits —e.g.: non-payment of holiday pay, overtime pay, or other benefits; c.

Working conditions — e.g., unrectified work hazards-2. Labor Relations

Disputes: a. Organizational right dispute/ULP

Example: coercion, restraint or interference in unionization efforts, reprisal or discrimination due to union activities, company unionism, ULP strike or lockout, union members' complaint against union officers. b. Representation disputes Example: uncertainty as to which is the majority union, determination of collective bargaining unit, contest for recognition by different sets of officers of same union, ULP strike. c.

Bargaining disputes Example: refusal to bargain (ULP), bargaining in bad faith, bargaining deadlock, economic strike or lockout.

d. Contract administration or personnel policy disputes Example: non-compliance with CBA provision (ULP if gross noncompliance with economic provisions), disregard of grievance machinery, nonobservance or unwarranted use of union security clause, illegal or unreasonable personnel management policies, violation of no-strike/nolockout agreement. e. Employment tenure disputes Example: non-regularization of employees, non-absorption of labor onlycontracting staff, illegal termination, non issuance of employment contract (Azucena, The Labor Code with comments and cases), Vol. II, 1999 ed., p. 20). Remedies in labor Disputes: 1. Grievance Procedure — in-house adjustment of complaint-problem or dispute following the steps prescribed in CBA or company policy; 2. Conciliation — a process where a disinterested third party meets with management and labor, at their request or otherwise, during a labor dispute or in collective bar gaining conferences, and by cooling tempers, aids in reaching an agreement. 3. Mediation — a third party studies each side of the dis pute then makes proposals for the disputants to consider, but a mediator cannot render an award. Conciliation and mediation are done primarily by "conciliators-mediators" of the National Conciliation and Mediation Board. 4. Enforcement or Compliance Order — an act of the SOLE in the exercise of his visitatorial or administrative author ity to enforce labor laws, policies, plan, or programs, or rules and regulations. 5. Certification of Bargaining Representatives —Determination of which contending unions shall represent em ployees in collective bargaining. This is handled by "medarbiters" of the DOLE. Adjudication by med-arbiters of inter-union or intra-union conflicts are appealable di rectly to the SOLE.

6. Arbitration — the submission of a dispute to an impar tial person for determination on the basis of evidence and arguments of the parties. a. Voluntary — if submission of the dispute is by agree ment of the parties and the arbitrators or panel of arbitrators is chosen by them. Voluntary arbitration is done by "voluntary arbitrator." b. Compulsory — if submission of the dispute is by di rective of law. Unlike a conciliator or a mediator, an arbitrator is a judge, he makes decisions and awards that the parties must accept. Compulsory arbitration is done primarily by "labor arbiters" of the NLRC. •

In VA, the award is final and unappealable, ex cept through certiorari. • In CA, the decision is appealable to the NLRC, then to the CA, through the special civil action of certiorari.

7. Assumption of Jurisdiction — an authority vested by law to the SOLE or the President to decide a dispute causing or likely to cause a strike or lockout in an industry indispensable to national interest. 8. Certification to NLRC — an action of the SOLE empow ering the NLRC to compulsorily arbitrate a dispute caus ing or likely to cause a strike or lockout in an industry indispensable to the national interest. • Either assumption or Certification automatically enjoins an on-going or impending strike/lockout. A return to work order is issued to strikers, at the same time the employer is ordered to immediately resume operations and readmit all workers under the same terms and conditions prevailing before the strike or lockout. 9. Injunction — is an ordinary remedy and is not favored in labor law. As a general rule, an injunction or restraining order to prevent or stop the doing of an act is avoided in resolving a labor dispute because the State policy and aim are to encourage the parties to use the non-judicial processes of negotiation and compromise, mediation and arbitration. • A writ of injunction is issued to stop or restrain an actual or threatened commission of prohibited or unlawful acts or to require the performance of an act, which if not restrained or performed forthwith, may cause grave or irreparable damage to any party or render ineffectual any decision in favor of such party. 10. Judicial action — complaint filed with the regular court in cases falling under its jurisdiction. 11. Appeal — the process by which an order, decision, or award is elevated to a higher authority, on specified grounds, so that the order, decision or award may be modified or set-aside and a new one issued. In instances where appeal is allowed, the administrative remedies

should be availed of, as a rule, before the aggrieved party may go to court. 12. Judicial Review — no law allows appeal from a decision of the SOLE, or of the NLRC, or of a voluntary arbitrator. In these cases the "special civil action of certiorari, prohibition or mandamus" may be lodged with the Court of Appeals. R 13. Compromise agreement — in any stage of any of these settlement processes, the labor dispute may be resolved by the parties through a compromise agreement, provided that the agreement is freely entered into and is not contrary to law, morals, or public policy. A compromise agreement is also subject to approval of the authority before whom the case is pending. Even a labor standards case can be settled through a compromise. But it has been held that ULP cases are not subject to compromise. Jurisdiction of the Labor Arbiters and the Commission: Labor Arbiters shall have original and exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the case by the parties for decision without extension, even in the absence of stenographic notes, the following cases involving all workers, whether agricultural or non-agricultural: 1. Unfair labor practice cases; 2. Termination disputes; 1. If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of pay, hours of work and other terms and conditions of employ ment; 4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee relations; 5. Cases arising from any violation of Article 264 of this Code, including questions involving the legality of strikes and lockouts; and Except claims for Employees Compensation, Social Se curity, Medicare and maternity benefits, all other claims arising from employer-employee relations, including those of persons in domestic or household service, involv ing an amount exceeding Five thousand pesos (P5.000.00) regardless of whether accompanied with a claim for reinstatement. • The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters. • Cases arising from the interpretation or implementation of collective bargaining agreements and those arising from the interpretation or enforcement of company personnel policies shall be disposed of by the Labor Arbiter by referring the

same to the grievance machinery and voluntary arbitration as may be provided in said agreements. (As amended by Sec tion 9, Republic Act No. 6715, March 21, 1989). Venue: • •

All cases which LA's have authority to hear and decide may be filed in the Regional Arbitration Branch having jurisdic tion over the work place of the complainant/petitioner. For purposes of venue, workplace shall be understood as the place or locality where the employee is regularly assigned when the cause of action arose. It shall include the place where the employee is supposed to report back after a tem porary detail, assignment or travel. In the case of field em ployees, as well as ambulant or itinerant workers, their workplace is where They are regularly assigned or where they are supposed to regularly receive their salaries/wages or work instructions from and report the results of their assignment to their employers.

•

Where two or more regional branches have jurisdiction over the work place of the complainant or petitioner the branch that shall first acquire jurisdiction over the case shall ex clude the others.

•

When improper venue is not objected to before or at the time of filing of position papers, such question shall be deemed waived.

•

The venue of an action may be changed or transferred to a different regional arbitration branch other than where the complaint was filed by written agreement of the parties or when the NLRC or LA before whom the case is pending so orders, upon motion by the proper party in meritorious cases. national Labor Relations Commission attached to DOLE only for purposes of programs and policy coordination. Composition: 1 Chairman and 14 members; 5 from labor; 5 from management and chairman and 4 from public sector. May sit en bane or in 5 divisions, each composed of 3 members. Shall sit en banc only for promulgating rules and regulations governing the hearing and disposition of cases before any of its divisions and regional branches and formulating policies affecting its administration and operations. Appointment and Qualifications 1. Chairman and members: a. members of the Bar; b. engaged in the practice of law for at least 15 years; c. with at least 5 years experience on labor-management relations;

d. preferably resident of the region where to hold office. 2. ;

Executive Labor arbiters and labor arbiters: a. members of the Bar; b. engaged in the practice of law for at least 7 years; c. with at least 3 years experience on labor-management relations; d. preferably resident of the region where to hold office.

'fingers of the NLRC: 1. Promulgate rules and regulations governing: a. the hearing and disposition of cases before it and its re gional branches; b. those pertaining to its internal functions; and ■ c. rules and regulations as may be necessary to carry out the purposes of the Labor Code. 2.

Administer oaths, summon the parties to a controversy issue subpoenas requiring the attendance and testimony of witnesses or the production of such books, papers, con tracts, records, statement of accounts, agreements, and oth ers as may be material to a just determination of the matter under investigation, and to testify in any investigation or hearing conducted in pursuance of this Code;

3.

Conduct investigation for the determination of a question matter or controversy within its jurisdiction, proceed to hear and determine the disputes in the absence of any party thereto who has been summoned or served with notice to appear, conduct its proceedings or any part thereof in public or in private, adjourn its hearings to any time and place, refer technical matters or accounts to an expert and to accept his report as evidence after hearing of the parties upon due notice, direct parties to be joined in or excluded from the proceedings, correct, amend, or waive any error, defect or irregularity whether in substance or in form, give all such directions as it may deem necessary or expedient in the de termination of the dispute before it, and dismiss any matter or refrain from further hearing or from determining the dis pute or part thereof, where it is trivial or where further pro ceedings by the Commission are not necessary or desirable; and

4.

Hold any person in contempt directly or indirectly and im pose appropriate penalties therefor in accordance with law.

5.

Enjoin or restrain any: a. actual or threatened commission of any or all prohibited or unlawful acts; or b. to require the performance of a particular action any labor dispute which,

• if not restrained or performed forthwith, may cause grave or irreparable damage to any party or render ineffectual any decision in favor of such party. *

Requisite for issuance: 1.

complaint made under oath;

2. hearing the testimony of witnesses in support of the allegations thereof; 3. with opportunity for cross-examination; 4. hearing the testimony in opposition thereto, if offered; and 5. only after a finding of fact by the Commis sion, to the effect: i. that prohibited or unlawful acts have been threatened and will be committed and will be continued unless restrained; •

Injunction Only Issued Against:

a. person or persons, association or organization making the threat or committing the prohibited or un lawful act; or b. person or persons, association or organization actually authorizing or ratifying the same after actual knowledge thereof; ii. that substantial and irreparable injury to complainant's property will follow; iii. that as to each item of relief to be granted, greater injury will be inflicted upon complainant by the denial of relief than will be inflicted upon defendants by the granting of relief; iv. that complainant has no adequate remedy at law; and v. that the public officers charged with the duty to protect complainant's property are unable or unwilling to furnish adequate protection. Issuance_of_.a_Tgmporary Restraining Order (Requisites): 1. allegation in the complaint that unless a temporary restraining order shall be issued without notice a substantial and irreparable injury to complainant's property will be unavoidable; 2. testimony under oath, sufficient, if sustained, to justify the Commission in issuing a temporary injunction upon hearing after notice; 2. file an undertaking with adequate security in an amount to be fixed by the Commission sufficient to recompense those enjoined for:

a. any loss, expense or damage caused by the improvident or erroneous issuance of such order or injunction, including; b. all reasonable costs, together with a reason able attorney's fee; and c. expense of defense against the order or against the granting of any injunctive relief sought in the same proceeding and subse quently denied by the Commission. • Such a temporary restraining order shall be effective for no longer than twenty (20) days and shall become void at the expiration of said twenty (20) days. • In any proceeding before the Commission or any of the Labor Arbiters, the rules of evidence prevailing in courts of law or equity shall not be controlling and it is the spirit and intention of this Code that the Com mission and its members and the Labor Arbiters shall use every and all reasonable means to ascertain the facts in each case speedily and objectively and without regard to technicalities of law or proce dure, all in the interest of due process (Quantum of Evidence required: Substantial Evidence). • In any proceeding before the Commission or any Labor Arbiter, the parties may be represented by legal counsel but it shall be the duty of the Chairman, any Presid ing Commissioner or Commissioner or any Labor Arbiter to exercise complete control of the proceedings at all stages.

• Labor Arbiter shall exert all efforts towards the amicable settlement of a labor dispute within his jurisdiction on or before the first hearing. The same rule shall apply to the Commission in the exercise of its original jurisdiction.

Period to appeal from decision, awards, or orders of the LA to the NLRC: ten (10) calendar days from receipt of such decisions, awards, or orders. grounds: a. If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter; b. If the decision, order or award was secured through fraud or coercion, including graft and corruption; c. If made purely on questions of law; and d. If serious errors in the findings of facts are raised which would cause grave or irreparable damage or injury to the appellant. In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission in the amount equivalent to the monetary award in the judgment appealed from. In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall immediately be executory, even pending appeal. The employee shall either be admitted back to work under the same terms and conditions prevailing prior to his dismissal or separation or, at the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay the execution for reinstatement provided herein. In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other party who shall file an answer not later than ten (10) calendar days from receipt thereof. • The Commission shall decide all cases within twenty (20) calendar days from receipt of the answer of the appellee. The decision of the Commission shall be final and executory after ten (10) calendar days from receipt thereof by the parties. Appeal from the NLRC: • None. But aggrieved party may avail of the special civil action of certiorari under Section 4, Rule 65 of the 1997 Rules of Civil Procedure to the Court of Appeals within 60 days from notice of judgment, order or resolution sought to be assailed. Bureau of Labor Relations • The BLR and the Labor Relations Divisions in the regional offices of the Department of Labor, shall have original and exclusive authority to act, at their own initiative or upon request of either or both parties, on: a. all inter-union and intra-union conflicts,

b. all disputes, grievances or problems arising from or af fecting labor-management relations in all workplaces, whether agricultural or non-agricultural, except those arising from the implementation or inter pretation of collective bargaining agreements which shall be the subject of grievance procedure and/or vol untary arbitration. • The BLR shall have fifteen (15) working days to act on labor cases before it, subject to extension by agreement of the parties. [ntra-Union Dispute — any conflict between and among union members, and includes all disputes or grievances arising from any violation of or disagreement over any provision of the constitution and by-laws of a union, including cases arising from chartering or affiliation of labor organizations or from

any violation of the rights and conditions of union member-inter-Union Dispute — any conflict between and among legitimate labor organizations involving questions of representation for purposes of collective bargaining. It also includes all other conflicts which legitimate labor organizations may have against each other based on any violations of their rights as labor organizations. • If the issue involves the entire membership of the union, the complaint shall be supported by at least 30% of the membership of the union. Labor Organizations Rjght of Self-Organization: 4 Constitutional provisions: The State shall guarantee the rights of all workers to self-organization. entitled to such right = all workers in: C 1. commercial; I 2. industrial; A 3. agricultural enterprises; R 4. religious; M 5. E 6.

medical; and educational institution; whether for profit or not.

• right to self-organize, form, assist or join labor union for purpose of collective bargaining; A I I S R W

7. 8. 9. 10. 11. 12.

ambulant; intermittent; itinerant workers; self-employed people; rural workers; and those without any definite employer.

KEY: MARI'CARSEW Kinds of Labor Organizations: 1.

Independent Labor Union — possesses a registration of its own;

2.

Local or Chapter — its legal personality is secured through a charter from a national union;

3.

Federation and National Unions — any labor organization with at least ten locals/chapters or affiliates each of which must be a duly certified or recognized collective bargaining agent;

4.

Legitimate Labor Organization — labor organization duly registered with the DOLE, and includes any branch or local thereof;

5.

Industry Union — any group of legitimate labor organiza tions operating within an identified industry, organized for collective bargaining or for dealing with employers concern ing terms and conditions of employment within an industry, or for participating in the formulation of social and employ ment policies, standards and programs in such industry, which is duly registered with the DOLE;

6.

Company Union — a labor organization which, in whole or in part, is employer-controlled or employer-dominated. Un ions of this type may be of any composition and the deter mining factor is the absence or presence of persuasive em ployer-influence or control. Prohibited by law; •

Manifestations of Company-Dominated Union: a. Initiation of company union idea; b. Financial support of the union; c. Employer encouragement and assistance; or

d. Supervisory assistance. 7. Trade Union Center or Associations — any group of registered national unions or federations organized for the mutual aid and protection of its members, for assisting such members in collective bargaining, or for participating in the formulation of social and employment policies, standards and programs, which is duly registered with the DOLE. a * Alliance — aggregation of unions existing in one line of industry, or in a conglomerate, a group of franchisees, a geographical area, or an industrial center; and Craft Organization — a labor union which is organized along trade or guild lines, having within its jurisdiction all persons plying a given trade or trades, without regard to the industry in which the particular artisan is employed. two Broad Purposes of Labor Organizations: Collective bargaining; and Dealing with the employer. Registration of Labor Organizations: 1. fifty pesos registration fee; 2. names of officers, their addresses, principal address of labor organization, minutes of organizational meeting, and the list of participants;

3. names of members — at least 20%; 4. annual financial reports; 5. constitution and by laws; minutes of adoption and ratification; ;6. sworn statement that there is no certified bargaining agent; in case there is an existing CBA, sworn statement that application is filed during last 60 days of agreement; and 7 . application and all accompanying documents shall verified under oath by Secretary or Treasurer as the case maybe and attested to by the President. If federation, plus: a. proof of affiliation — 10 locals in industry it operates in; and b. names and addresses of companies where they operate. significance of Registration as labor organization: acquisition of legal personality; represent its members for collective bargaining; 3.

to be certified as exclusive representative of all employees in appropriate bargaining unit for collective bargaining;

4.

to be furnished by employer with annual audited financial statements, and other similar records or documents;

5.

to own property, real or personal, for the use and benefit of the labor organization and its members;

3.

to sue and be sued in its registered name; and

6.

to undertake all other activities designed to benefit the or ganization and its members including cooperatives, housing, welfare and other projects not contrary to law.

Workers' Association : • Not necessarily a union. Defined as any association of work ers organized for the mutual aid and protection of its members or for any legitimate purpose other than collective bargaining. Rights and Conditions of Union Membership : 1. No arbitrary or excessive initiation fees or fines and forfeitures; 2. right to financial reports on transactions; 3. direct election of officers by secret ballot at intervals of 5 years; 4. right to participate through secret balloting in policy mak ing;

5. right against admission of subversives and engagement in subversive activity; 6. right against election of persons convicted of crime involv ing moral turpitude to elective and administrative posit ions: 7. right against collection and disbursement of money unless authorized by its constitution and by-laws; 8. right to be issued receipts for fees, dues or contributions paid: 9. right against application of funds except when expressly pro vided by constitution and by-laws or authorized by w r i t t e n resolution of majority of members;

10. in all income to be recorded and all expenditures properly receipted; 11. officers only entitled to salaries and expenses due their positions as provided by constitution and by-laws or authorized by written resolution of majority of members; 12. accounting of all organizational funds; 13. right to inspect books of accounts and other financial records; 14. right against special assessments and other fees unless au thorized by written resolution of majority of members; 15. right against check-offs other than for mandatory activities under the Labor Code; 16. right to be informed of the constitution and by-laws, CBA, prevailing labor relations systems and all rights and obligations under existing labor laws. Employees Entitled to Join Labor Unions: R 1. Rank-and-file employees; C 2. Government employees in Civil Service but not to members of AFP and PNP; .. C 3. Employees of government corporations established under Corporation Code; 4. Supervisory employees but not to rank-and-file unions; S 5. Security personnel; and A 6. Aliens with valid employment permits but subject to pres ence of reciprocity agreement between Philippines and : his country. KEY: C A R S2 employees NOT Entitled to Join Labor Unions: 1. Managerial employees; 2. Subversives or members of subversive organizations; 3. Employees of cooperatives who are at the same time members; and 4.

Employees who may be excluded by a CBA which classifies union and non-union members.

Grounds for Cancellation of Union Registration :

1. misrepresentation in adoption, ratification of constitution, false statement made in by-laws; 2. failure to submit documents of ratification of constitution; 3. misrepresentation } 4. false statement } in election of officers; 5. fraud ) 6. failure to submit financial reports; 7. acting as labor contractor; 8. entering into CBA with conditions below minimum; 9. asking, accepting attorney's fees; 10. checking off assessment without authorization; 11. failure to submit list of members; and 12. failure to comply with requirements. Rights of Legitimate Labor Organizations : •

A legitimate labor organization shall have the right:

(a) To act as the representative of its members for the pur pose of collective bargaining; (b) To be certified as the exclusive representative of all the employees in aa appropriate bargaining unit for purposes of collective bargaining; (c) To be furnished by the employer, upon written request, with its annual audited financial statements, including the balance sheet and the profit and loss statement, within thirty (30) calendar days from the date of receipt of the re quest, after the union has been duly recognized by the em ployer or certified as the sole and exclusive bargaining rep resentative of the employees in the bargaining unit, or within sixty (60) calendar days before the expiration of the existing collective bargaining agreement, or during the collective bar gaining negotiation;

MA) To own property, real or personal, for the use and benefit of the labor organization and its members; e) To sue and be sued in its registered name; and (f) To undertake all other activities designed to benefit the organization and its members, including cooperative, housing, welfare and other projects not contrary to law. Notwithstanding any provision of a general or special law to the contrary, the income and the properties of legitimate labor organizations, including grants, endowments, gifts, donations and contributions they may receive from fraternal and similar organizations, local or foreign, which are actually, directly and exclusively used for their lawful purposes, shall be free from taxes, duties and other assessments. The exemptions provided herein may be withdrawn only by a special law expressly repealing this provision. Unfair Labor Practice Unfair Labor Practice — violates the constitutional rights of workers and employees to self-organization, are inimical to the legitimate interests of both labor and management, including their rights to bargain collectively and otherwise deal with each other in an atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the promotion of healthy and stable labor-management relations. Unfair labor practices are not only violations of the civil rights of both labor and management, but are also criminal offenses against the state, which shall be subject to prosecution and punishment. Unfair Labor Practices Committed By Employer: 1. to interfere, restrain, coerce right to organize; 2. require person not to join union or to withdraw from union; 3. contract out services of unionists; 4. initiate, dominate, assist union; 6. 5. discriminate in terms of employment to encourage/discour-I discharge employee for having given testimony; 7. violate duty to bargain collectively; 8. pay negotiation or attorney's fees; as part of settlement; and 9. flagrant refusal to comply with economic terms of CBA. Unfair Labor Practices Committed By Employee Union: 1. to restrain or coerce right to organization; 2. to cause employer to discriminate; 3. violate duty to bargain collectively; 4. cause employer to pay services not performed; 5. ask for negotiation or attorney's fees as part of settlement; and 6. violate CBA.

age dismiss,

Featherbedding — when a union cause or attempt to cause employer to pay for services not performed. Yellow Dog Contract — it is a promise exacted from workers as a condition of employment that they are not to belong to, or attempt to foster, a union during their period of employment. Runaway Shop — ULP act whereby an industrial plant is moved by its owners from one location to another to escape union labor regulations or state laws, or where the plant was removed to a new location in order to discriminate against employees at the old plant because of their union activities. Blacklist — list of persons marked out for special avoidance, antagonism or enmity on the part of those who prepare the list, or those among whom it is intended to circulate, as where a trade union "blacklists" workmen who refuse to conform to its rules. Certification Election •

investigation of a non-adversary, fact-finding character to determine the exclusive representative of employees in a bar gaining unit for the purpose of collective bargaining.

•

labor organizations exist primarily for the purpose of collective bargaining or of dealing with the employer concerning terms and conditions of employment

consent election — agreed one, purpose being merely to determine the issue of majority representation of all workers in a bargaining unit. No more direct certification. Rules Preventing Holding of Certification Election: 1.Contract Bar Rule — that a valid and existing CBA is a bar to a petition for certification election. Exceptions: a. if petition is made within 60 days before expiration of the CBA, known as the Freedom period; b. if the CBA is defective or inadequate in substance, as where it does not fulfill the legal requirements of providing for grievance machinery or voluntary arbitration; and e. if it has not fulfilled the formal requirements of registration with the Bureau or the Regional Office of the DOLE which requirements are held to be mandatory. 2. Certification-Year Rule — within one year from date of ;• issuance of final certification result; 3. Deadlock Bar Rule — where a bargaining deadlock to which an incumbent or certified bargaining agent is a party has been submitted to conciliation or arbitration, or has become the subject of a valid notice of strike or lockout 4. Negotiation Bar — if the duly recognized or certified union has commenced negotiation with the employer within the one year period and the negotiation is ongoing; Charge of Company Unionism; and 6. Res Judicata.

Petitions For Certification Elections: instances: 1, in case representation issue exists in an organized establishment; . 2. in unorganized establishment, even without representation issue. In Organized Establishments, requisites of petition : a. verified petition questioning the majority status of in cumbent; b. filed within Freedom period; c. supported by written consent of at least 25% of all em ployees of bargaining unit. Where no petition for certification election is filed at the_ expiration of the freedom period, the employer shall continue to recognize the majority status of the incumbent bargaining agent. In Unorganized Establishments Where There Is No Certi fied Bargaining Agent: •

a certification election shall automatically be conducted by the Med-arbiter upon the filing of a petition by legiti mate labor organization or by the employer in case there was a demand for him to collectively bargain with his employees.

•

requisite of petition: only a verified petition will suf fice.

Participants in Certification Election : •

as a rule, all employees in bargaining unit regardless of the period or status of their employment.

•

exceptions: 1. Managerial employees; 2. Workers without employment relationship in establish ment concerned; and 3. Employees of a cooperative who are also members of the same.

Procedure in Certification Elections: 1.

Election by secret balloting:

2. 3.

Conducted by Labor Relations Division of Regional office: Representatives of contending unions have right to attend balloting as inspectors;

Notices to be posted in 2 conspicuous places of the establishment at least 5 working days before election containing: a.

date of election; b. names of contending parties; c.

description of bargaining unit; and

d. list of eligible voters; 5. Med-arbiter upon receipt of results and no protests filed, shall certify the winner; 6. For a valid election, at least majority of all eligible voters in the unit must have cast their votes; 7. Labor union receiving majority of the valid votes cast shall V. be certified as the exclusive bargaining agent of all the workers in the unit; 8. When an election which provides for 3 or more choices results in no choice receiving a majority of the valid votes cast, a run-off election shall be conducted between labor unions receiving the two highest number of votes, provided that the total number of votes for all contending unions is at least 50% of the number of votes cast; and 9. Any party to certification election may appeal from order on result of election as determined by the Med-arbiter directly, to the SOLE on ground that rules and regulations or parts thereof established by Secretary for the conduct of election have been violated. Such appeal shall be decided within 15 calendar days. requisites for Run-off Election: 1. A valid election took place because a majority of the CBU members voted; 2.-— Election presented at least three choices, including no-union; 3. Not one of the choices obtained the majority of the valid votes: 4. Total votes for the unions is at least 50% of the votes cast; and 5.

There is no unresolved challenge of voter or election protest Grounds for Dismissal

of Petition for Certification Election : 1.

Petitioner is not listed by the Regional Office or BLR in its registry of legitimate labor organizations, or that its legal personality has been revoked or cancelled with finality;

2.

Petition was filed before or after the freedom period of a duly registered collective bargaining agreement; provided, that the sixty-day freedom period based on the original collective bargaining agreement shall not be affected by any amend ment, extension or renewal of the collective bargaining agreement;

3.

The petition was filed within one (1) year from a valid certi fication, consent, or run-off election and no appeal on the

results is pending thereon, or from recording of the fact of voluntary recognition with the regional office; 4.

A duly recognized or certified union has commenced nego tiations with the employer in accordance with Art. 250 of the Labor Code within the one-year period or there exists a bargaining deadlock which had been submitted to concilia tion or arbitration or had become the subject of a valid no tice of strike or lockout to which an incumbent certified bar gaining agent is a party;

5.

In case of an organized establishment, failure to submit the 25% support requirement upon filing of the petition; or

6.

Lack of interest or withdrawal on the part of the petitioner; provided, that where a motion for intervention has been filed during the freedom period, said motion shall be deemed and disposed of as an independent petition for certification elec tion if it complies with all the requisites for the filing of a petition for certification election. Collective Bargaining

Collective Bargaining — right guaranteed by the Constitution to enable workers to negotiate with the employer on the same level, and with more persuasiveness than if they were to bargain individually and independently lor the improvement of their

respective conditions, duty to Bargain Collectively — the law imposes this duty on the parties and refusal to do so shall constitute ULP. Performance of a Mutual Obligation To: a. meet and convene: (i) promptly and expeditiously; (ii) in good faith for the purpose of —

b. negotiating an agreement with respect to: (i) wages, (ii) hours of work, (iii) all other terms and conditions of employment, (iv) including proposals for adjusting any grievances, or (v) questions arising under such agreement, and (vi) executing a contract incorporating such agreement if requested by either party, c. but such duty shall not compel any party to agree to a proposal or to make any concession. ULP's in Bargaining: 1- Failure or refusal to meet and convene; 2. Evading the mandatory subjects of bargaining; 3. Bad faith in bargaining, including failure or refusal to execute the collective agreement, if requested; and 4. Gross violation of the CBA. Surface Bargaining — sophisticated pretense in the form of apparent bargaining. Does not satisfy the statutory duty to bargain. matters considered Mandatory Subjects of Bargaining: w 1. Wages and other types of compensation;

H 2. Working hours and working days including work shiftV 3. Vacations and holidays; B 4. Bonuses; P S T

5. Pensions and retirement plans; 6. Seniority; 7. Transfer;

L

8. Lay-offs;

W 9. Employee workloads; R R

10. Work rules and regulations; 11. Rent of company houses; and

S

12. Union Security arrangements. KEY: S2 W R2 B L T P H V

Jurisdictional Preconditions of Collective Bargaining: 1. Possession of the status of majority representation of the employees' representative in accordance with any of the means of selection or designation provided for by the Labor Code; 2. 3.

Proof of majority representation; and A demand to bargain under Art. 250, par. (a) of the Labor Code.

Please note the procedure in collective bargaining: Union Security Arrangements • Kinds: 1. Agency Fee — statutory right of bargaining union whereby employees of a bargaining unit who are not members of the collective bargaining agent may be assessed reasonable fee equivalent to the dues and other fees paid by members of the bargaining agent, if such non-member accept the benefits under collective agreement. Requisites: a. he is a member of the bargaining unit as a rank-and-file employee;

2.

b. he avails of the benefits of existing CBA; and c. not a member of any union. Closed Shop — form of union security whereby only union members can be hired, and the workers must remain union members as a condition of continued employment. It does not apply to employees who are already members of another union at time of signing of CBA.

3.

4.

Union Shop — union security stipulation which is but one step less complete than a closed-shop. It does not require membership as a condition for hiring but requires that those already hired become union-members within a prescribed period of time after hiring, or after effective date of contract where the union shop agreement succeeds hiring in point of time. Modified Union Shop Agreement — agreement with a provision exempting certain groups of employees from its op eration, such as old employees already with the company at a designated date, key personnel, persons with religious scru ples in joining labor unions. Maintenance of Membership — requires as a condition of continued employment, membership in good standing in the contracting union. Exclusive Bargaining Shop — the union is recognized as the exclusive bargaining agent for all employees, whether union members or not. Bargaining for Members Only — the union is recognized as the bargaining agent only for its own members.

5. 6. 7. Points

Remember with Regard to Term of Collective Bargaining Agreement:

1. 5 years. 2. All other provisions of the CBA shall be renegotiated not later than 3 years after its execution. 3.Any agreement on such other provisions entered into within (6 months from date of expiry of term of such other provisions as fixed in the CBA, shall retroact to the day immediately following such date. 4. If any such agreement is entered into beyond 6 months, the parties shall agree on duration of retroactivity thereof. 5. In case of a deadlock in the renegotiation of the CBA, par ties may exercise their rights under the Labor Code. Substitutionary Doctrine — employees cannot revoke the validly executed collective bargaining contract with their employer by the simple expedient of changing their bargaining agent. Wiley Doctrine — the disappearance by merger of a corporate employer which has entered into a collective bargaining agreement with a union does not automatically terminate all rights of the employees covered by the agreement, even though the merger is for genuine business reasons. 'formal Requirements of Collective Bargaining Agreements : Within 30 days from execution of a CBA, parties shall submit copies of the same directly to the BLR or the regional office of the DOLE for registration accompanied with verified proofs of its posting in 2 conspicuous places in the place of work and ratification by the majority of all workers in the bargaining unit. • The BLR or the regional offices shall act upon the application for registration of such CBA within 5 calendar days from receipt.

Management Prerogative — right of employer to regulate according to his own discretion all aspects of employment including employment, hiring, time, tools, transfers of employees, lay-off and discipline, dismissal and recall of employee. Collective Bargaining Unit — group of employees sharing mutual interests within a given employer unit, comprised of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit. Test to Determine Appropriateness of Bargaining Unit: members' community of interest. Factors Manifesting Community of Interests : 1. Similarity in the scale and manner of determining earnings; 2. Similarity in employment benefits, hours work and other terms and conditions of employment; 3. Similarity in the kinds of work performed; 3. Similarity in the qualifications, skills and training of the employees; 4. Frequency of contact or interchange among employees; 5. Geographic proximity; 6. Continuity or integration of production processes; 4. Common supervision and determination of labor-relations policy; 7. History of collective bargaining; 10. Desires of the affected employees (Globe Doctrine); or 11. Extent of union organization. globe Doctrine — Desires of the employees with respect to their inclusion in the bargaining unit is not controlling, it is a factor which would be taken into consideration in reaching a decision. Strikes and Lockouts characteristics of a strike.: 1. there must be employer-employee relationship between strikers and person or persons against whom .strike is called;

existence of industrial or labor dispute between parties, motivating the use by labor of this economic weapon for persuasion and coercion; and Despite the work stoppage, the employment relationship continues. factors Affecting Legality of Strike: 1. when it is contrary to specific prohibition of law, illegal; 2. when it violates a specific requirement of law; 3. when it is declared for an unlawful purpose; 4. when it employs unlawful means in the pursuit of its objective; 5. when it is declared in violation of an existing injunction; or 6. when it is contrary to an existing agreement. Slowdown — strike on the installment plan. It is the willful reduction in the rate of work by concerted action of workers for the purpose of restricting the output of the employer in relation to a labor dispute. Important Factors In Strikes and Lockouts

1.

Cause — lawful

causes for strikes: -a. bargaining deadlocks; b. ULP; and c. Union-busting — dismissal from employment of unionofficers duly elected in accordance with union constitu tion and by-laws, where existence of the union is threat ened. No strike or lockout due to inter-union or intra-union dispute. 2.

c. 3.

Party — may be: a. certified bargaining agent due to ULP and bargaining deadlock; b. employer (lockout) on same grounds; legitimate labor organization due to ULP only Notice — in cases of: a. bargaining deadlocks; notice of strike or lockout filed with regional branch of NCMB at least 30 days before intended date; copy served to other party; b. ULP — period of notice shall be 15 days; and c. Union-busting — the 15 day cooling-off period shall not apply and the union may take action immediately after strike vote is conducted and the results thereof submit ted to the DOLE. During cooling-off period, DOLE shall exert effort at mediation and conciliation to effect a voluntary settlement. If dispute remains unsettled, union may declare a strike or the employer may declare lockout.

4.

Strike and Lockout Vote:

a. strike — approval by majority of the total membership in bargaining unit concerned by secret ballot in meeting called for that purpose. b. lockout — approval by majority of board of directors of employer, corporation or association, or the partners in a partnership by secret ballot in meeting called for that purpose. Conciliation Efforts 1.

Improved offer balloting — DOLE shall conduct a refer endum by secret balloting on the improved offer of the em ployer on or before the 30th day of the strike.

2.

Reduced offer balloting — DOLE shall likewise conduct a referendum by secret balloting on the reduced offer of un ion on or before the 30th day of the lockout.

•

Other Concerted Activities: 1. Collective letter to voice out grievances; 2. Publicity; 3. Placards and banners; 4.

Speeches, music and broadcast;

I 5. Boycott — a combination of many to cause a loss to one person by causing others, against their will, to withdraw from him their beneficial business intercourse through threats that unless others do so, the many will cause similar loss to him or them; 6 Slowdown — method by which, without seeking a complete stoppage of work, retard production and distribution in an effort to compel compliance by the employer with the labor demands made upon him. prohibited Activities in Strike and Lockouts : 1. no strike/lockout without bargaining collectively, filed no tice, or strike/lockout vote obtained and reported; 2. 3. 4.

obstruct, impede peaceful picketing; employer use strike-breaker or person act as strike-breaker; public official/employee or members of AFP/PNP or other in replacements; and

5. act of violence in picketing, obstruct ingress/egress. liabilities of Striking Workers in an Illegal Strike : 1 Union officers — who knowingly participates in illegal strike.

armed persons bring

2. Worker or union officer — who knowingly participates in the commission of illegal acts; maybe declared to have lost their employment status. Employer who dismissed an employee on account of illegal lockout, liable to reinstate and pay such employee back-

1

post-Employment security of Tenure Constitutional and statutory right of workers applies only to regular employees

Regular employees — engaged to perform activities which are usually necessary or desirable in the usual business or trade of employer (Art. 280, Labor Code). Except: 1. Project employees — employment fixed for specific project or undertaking, completion or termination of which has been determined at the time of engagement. Exception to the Exception: if project employee acquires regular status as when — a. There is a continuous rehiring of project employees even after cessation of a project; and b. The tasked performed by the alleged "project employee" are vital, necessary and indispensable to the usual busi ness or trade of the employer. 2. Seasonal employees — work or service performed is seasonal, employment deemed to last only for the duration of the season. Seasonal employees who are consistently rehired after every season are considered merely on leaves of absence with pay. Casual employees — those not falling under regular employees. •

however: considered regular to activity employed after 1 year of service, whether continuous or broken and em ployment shall continue while activity exists (Art. 280, Labor Code).

Probationary employees — subject to probation not exceeding 6 months •

services may be terminated with just cause or when failed to qualify as regular in accordance with reasonable stand ards previously set and made known to him beforehand.

Contractual employees — hired by agreement for definite term. •

deemed regular for the duration of the contract, provided: a. activity usually and necessary to employer; and b. on the job for more than 1 year.

just causes for Termination by Employer (Art. 282, Labor Code): serious misconduct, willful disobedience; gross/habitual neglect of duty; fraud or willful breach of trust; 4. commission of crime or offense; or 5- other analogous causes. KEY: M N F C O Authorised Causes for Termination: 1. Reduction of Personnel due to installation of labor-saving devices (Art. 283, Labor Code); R 2. Reduction of Personnel due to redundancy; L C

3. ..Retrenchment to prevent loss; 4. Closure of establishment or cessation of operations; and

D

5. Disease (Art. 284, Labor Code). KEY: S R L C D dismissal under authorized causes subject to :

1.Written notice to worker and DOLE at least 1 month before (Sec. 2, Rule XIV, Book V, Implementing Rules and Regulations); and 2. Separation pay. • equal to at least 1 month pay or at least 1 month pay for every year of service, whichever is higher. In case of retrenchment, closures not due to serious business losses or financial reverses: separation pay equal to at least 1 month pay or at least 1/2 month pay for every year of service, whichever is higher. fraction of at least 6 months considered 1 year. Termination due to disease, with separation pay but no prior notice. Distinctions Just Causes Authorized Causes a. With separation pay a. No separation pay b. Not subject to review but b. Subject to review before must comply with the relabor arbiter in arbitration quirements process c. Provide due process to worker

c. Just comply with the requirements

Due Process Requirement in Case of Dismissal Due to Just

1. Employer shall furnish worker at least two (2) written no tice containing statement of cause/s for dismissal; 2. Worker given ample opportunity to be heard and defend self with the assistance of representative, if he so desires; and 3.

Decision made by employer without prejudice to right to contest validity or legality of dismissal by filing complaint with the arbitration division of the regional office of the NLRC.

Reliefs in Illegal Dismissal Cases: •

•

Employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full back wages, inclusive of allowances and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of actual reinstatement Separation pay will be granted in lieu of reinstatement in case relations between employer and employee is strained. (Doctrine of Strained Relations) constructive Dismissals — an employee who quits his work because of the employer's unreasonable, humiliating or demeaning actuations which render continued work impossible is deemed to have been illegally dismissed. just cause for Termination by Employee: 1. serious insult; 2. inhuman and unbearable treatment; crime or offense; or

3. commission of a

4. other analogous causes.

KEY: I2 C O

totality of Conduct — doctrine whereby the culpability of an employer's remarks are to be evaluated not only on the basis of their implicit implication, but are to be appraised against the background of and in conjunction with collateral circumstances. employment Not Deemed Terminated when: 1. bona fide suspension of the operations of a business or undertaking for a period of not exceeding 6 months; and 2. fulfillment by employee of a military or civic duty. Retirement From Service primarily Controlling Provisions: Pertinent provisions of the CBA; or Other applicable employment contract. In both instances, retirement benefits shall not be less than or in the absence of the above: I. Retirable Age

c.

a. Optional: 60 years old or more but not beyond 65 and served for at least 5 years. b. Compulsory: 65 years old. For Underground Mine Workers. i. Optional: 50 years old or more but not beyond 60 and served for at least 5 years. ii. Compulsory: 60 years old II. Benefits: a. All retirement benefits as he may have earned under existing laws and any collective bargain ing agreement and other agreements; b. Retirement pay equivalent to at least one-half (1/2) month salary for every year of service with a fraction of at least six (6) months being consid ered one year. • Unless the parties provide for broader inclusions, term "one-half (1/2) month salary" shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more than five (5) days of service incentive leaves. • Retail, service and agricultural establishments or operations employing not more than ten (10) employees or workers are exempted from the coverage.

SOCIAL LEGISLATION Employees' Compensation and State Insurance Fund Workmen's Compensation — laws providing for compensation for loss resulting from the injury, disablement, or death of workmen through industrial accident, casualty or disease. Employe • — means any person compulsorily covered by the GSIS under Commonwealth Act Numbered One hundred eighty-six, as amended, including the members of the Armed Forces of the Philippines, and any person employed as casual, emergency, temporary, substitute or contractual, or any person compulsorily covered by the SSS under Republic Act Numbered Eleven hundred sixty-one, as amended. Dependent — means the legitimate, legitimated or legally adopted or acknowledged natural child who is unmarried, not gain-

fully employed, and not over twenty-one (21) years of age or over twenty-one (21) years of age provided he is incapacitated and incapable of self-support due to a physical or mental defect which is congenital or acquired during minority; the legitimate spouse living with the employee and the par ents of said employee wholly dependent upon him for regular support. beneficiaries — means the dependent spouse until he/she remarries and dependent children, who are the primary beneficiaries. In their absence, the dependent parents and subject III: to the restrictions imposed on dependent children, the ille gitimate children and legitimate descendants, who are the secondary beneficiaries: Provided, That the dependent acknowledged natural child shall be considered as a primary beneficiary when there are no other dependent children who are qualified and eligible for monthly income benefit. Injury — means any harmful change in the human organism from I any accident arising out of and in the course of the employment. Sickness — means any illness definitely accepted as an occupational disease listed by the ECC, or any illness caused by employment subject to proof that the risk of contracting the same is increased by working conditions. For this purpose, the ECC is empowered to determine and approve occupational diseases and work-related illnesses that may be considered compensable based on peculiar hazards of employ ment. death— means loss of life resulting from injury or sickness. Disability — means loss or impairment of a physical or mental function resulting from injury or sickness. Compensation — means all payments made under this Fund for income benefits and medical or related benefits. Extent, of liability: •

Unless otherwise provided, the liability of the Fund shall be exclusive and in place of all other liabilities of the employer to the employee, his dependents or anyone otherwise entitled to receive damages on behalf of the employee or his dependents. Liability of third party/ies : •

When the disability or death is caused by circumstances cre ating a legal liability against a third party, the disabled em ployee or the dependents, in case of his death, shall be paid by the Fund. In case benefit is paid, the Fund shall be sub rogate d to the rights of t he di sa ble d employee or the dependents, in case of his death, in accordance with the gen eral law.

•

Where the Fund recovers from such third party damages in excess of those paid or allowed, such excess shall be deliv ered to the disabled employee or other persons entitled thereto, after deducting the cost of proceedings and expenses of the Fund.

Deprivation of the benefits :

•

Except as otherwise provided, no contract, regulation or de vice whatsoever shall operate to deprive the employee or his dependents of any part of the income benefits and medical or related services granted. Existing medical services being provided by the employer shall be maintained and contin ued to be enjoyed by their employees.

Employers' contributions : •

Under such regulations as the Fund may prescribe, begin ning as of the last day of the month when an employee's com pulsory coverage takes effect and every month thereafter during his employment, his employer shall prepare to re mit to the Fund a contribution equivalent to one per cent of his monthly salary credit.

•

Contributions under this Title shall be paid in their entirety by the employer and any contract or device for the deduc tions of any portion thereof from the wages or salaries of the employees shall be null and void. When a covered employee dies, becomes disabled or is separated from employment, h i s employer's obligation to pay the' monthly contribution arising from that employment shall cease at the end of the month of contingency and during such months that he is not receiving wages or salary.

government guarantee : The Republic of the Philippines guarantees the benefits prescribed under this Title, and accepts general responsibility for the solvency of the State Insurance Fund. In case of any deficiency, the same shall be covered by supplemental appropriations from the national government. medical services : Immediately after an employee contracts sickness or sustains an injury, he shall be provided by the System during the subsequent period of his disability with such medical services and appliances as the nature of his sickness or injury and progress of his recovery may require, subject to the expense limitation prescribed by the Commission. Temporary total disability: Any employee who sustains an injury or contracts sickness resulting in temporary total disability shall, for each day ; of such a disability or fraction thereof, be paid by the System an income benefit equivalent to ninety percent of his average daily salary credit, subject to the following conditions: the daily income benefit shall not be less than Ten Pesos nor more than Ninety Pesos, nor paid for a continuous

period longer than one hundred twenty days, except as otherwise provided for in the Rules, and the System shall be notified of the injury or sickness. permanent total disability : Any employee who contracts sickness or sustains an in jury resulting in his permanent total disability shall, for each month until his death, be paid during such a dis ability, an amount equivalent to the monthly income benefit, plus ten percent thereof for each dependent child. but not exceeding five, beginning with the youngest and without substitution: Provided. That the monthly income benefit shall be the new amount of the monthly benefit for a l l covered pensioners. • The monthly income benefit shall be guaranteed for five years, and shall be suspended if the employee is gainfully employed, or recovers from his permanent total disability, or fails to present himself for examination at least once a year upon notice by the System. The following Disabilities shall be Deemed Total and Permanent' 1. Temporary total disability lasting continuously for more than one hundred twenty days, except as otherwise provided for in the Rules; 2. 3. 4. 5.

Complete loss of sight of both eyes; Loss of two limbs at or above the ankle or wrist; Permanent complete paralysis of two limbs; Brain injury resulting in incurable imbecility or insanity; and

6. Such cases as determined by the Medical Director of the Sys tem and approved by the Commission. Permanent partial disability : • Any employee who contracts sickness or sustains an injury resulting in permanent partial disability shall, for each month not exceeding the period designated herein, be paid by the System during such a disability an income benefit for permanent total disability. • The benefit shall be paid for not more than the period desig nated in the following schedules: Complete and permanent loss of the use of One thumb One index finger One middle finger One ring finger One little finger

No. of Months —

10 8 6 5 3

One big toe One toe One arm One hand One foot One leg One ear Both ears Hearing of one ear Hearing of both ears Sight of one eye

6 — — — — — — — — — —

3 50 39 31 46 10 20 10 50 25

A loss of a wrist shall be considered as a loss of the hand, and a loss of an elbow shall be considered as a loss of the arm. A loss of an ankle shall be considered as loss of a foot, and a loss of a knee shall be considered as a loss of the leg. A loss of more than one joint shall be considered as a loss of one-half of the whole finger or toe: Provided, That such a loss shall be either the functional loss of the use or physical loss of the member. In case of permanent partial disability less than the total loss of the member, the same monthly income benefit shall be paid for a portion of the period established for the total loss of the member in accordance with the proportion that the partial loss bears to the total loss. If the result is a decimal fraction, the same shall be rounded off to the next higher integer. In cases of simultaneous loss of more than one member or a part thereof, the same monthly income benefit shall be paid for a period equivalent to the sum of the periods established for the loss of the member or the part thereof. If the result is a decimal fraction, the same shall be rounded off to the next higher integer. In cases of injuries or illnesses resulting in a permanent partial disability not listed in the schedule, the benefit shall be an income benefit equivalent to the percentage of the permanent loss of the capacity to work. The income benefit payable in case of permanent partial disability may be paid in monthly pension or in lump sum if the period covered does not exceed one year. (As added by Section 7, Presidential, Decree No. 1368).

Death Benefits: • Pay to the primary beneficiaries upon the death of the covered employee an amount equivalent to his monthly income benefit, plus ten percent thereof for each dependent child but not exceeding five, beginning with the youngest and without substitution, provided, however, that the monthly income benefit shall be guaranteed for five years: provided, further, that if he has no primary beneficiary, the System shall pay to his secondary beneficiaries the monthly income benefit but not to exceed sixty months: Provided, finally, That the minimum death benefit shall not be less than Fifteen thousand pesos. • Pay to the primary beneficiaries upon the death of a covered employee who is under permanent total disability eighty percent of the monthly income benefit and his dependents to the dependents' pension: Provided, That the marriage must have been validly subsisting at the time of disability: Provided, further, That if he has no primary beneficiary, the System shall pay to his secondary beneficiaries the

monthly pension excluding the dependents' pension, of the remaining balance of the five-year guaranteed period: Provided, finally, That the minimum death benefit shall not be less than Fifteen thousand pesos. Funeral benefit: •

A funeral benefit of Three thousand pesos (P3,000.00) shall be paid upon the death of a covered employee or permanently totally disabled pensioner.

Relationship and dependency: • All questions of relationship and dependency shall be deter mined as of the time of death. Second injuries: If any employee under permanent partial disability suffers another injury which results in a compensable disability greater than the previous injury, the State Insurance Fund shall be liable for the income benefit of the new disability Provided, That if the new disability is related to the previous disability, the System shall be liable only for the difference in income benefits.

Assignment of benefits: No claim for compensation is transferable or liable to tax, attachment, garnishment, levy or seizure by or under any legal process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the employee to the System. Inscriptive period : No claim for compensation shall be given due course unless said claim is filed with the System within three (3) years from the time the cause of action accrued. Bunkhouse Rule — a rule in workmen's compensation which provides that, where the employee is required to stay in the premises or quarters furnished by the employer, injuries sustained therein are in the course of employment regardless of the time the same occurred. Going and Coming Rule (Street Peril Principle) — in the absence of special circumstances, an employee injured in going to and coming from his place of work is excluded from benefits of the workmen's compensation act, except: a. employee is proceeding to or from his work on the premises of his employer; b. employee is about to enter or about to leave the premises of his employer by way of the exclusive or customary means of ingress and egress; c. employee is charged with a special errand; and

d. employer, as an incident to the employment, provides means of transportation to and from the place of employ ment. increased Risk Theory — disease is deemed compensable when the risk of contracting the same is increased by the working. conditions which a laborer or employee is exposed, provided the disease is work connected. Personal Doctrine — injuries occurring on the premises during a regular lunch hour arise in the course of employment, even though the interval is technically outside the regular hours of employment in the sense that the worker receives no pay for the time and is no degree under the control of the employer, being free to go where he pleases is compensable. Work Connected Rule — injuries sustained by an employee while in the course of his employment as a result of an assault by another employee, or by a third person, no question of the injured employee's own culpability being involved, are compensable where a rational mind is able to trace the injury to a cause set in motion by the nature of the employment, or some other condition, obligation or incident therein, and not by some other agency. Social Security Act of 1997 Republic Act No. 8282 The Social Security System (SSS) •

a corporate body, with principal place of business in Metro Manila, Philippines.

•

directed and controlled by a Social Security Commission, hereinafter referred to as 'Commission,' composed of: 1. Secretary of Labor and Employment or his duly desig nated undersecretary; 2. SSS president; and

3. seven (7) appointive members, three (3) of whom shall represent the workers' group, at least one of whom shall be a woman; three (3), the employers' group, at least one (1) of whom shall be a woman; and one (1), the general public whose representative shall have adequate knowl edge and experience regarding social security, to be ap pointed by the President of the Philippines. • The six (6) members representing workers and employers shall be chosen from among the nominees of workers' and employers' organizations, respectively. • The Chairman of the Commission shall be designated by the President of the Philippines from among its members. • The term of the appointive members shall be three (3) years. The general conduct of the operations and management functions of the SSS shall be vested in the SSS President who shall serve as the chief executive officer

immediately responsible for carrying out the program of the SSS and the policies of the Commission • He shall be appointed by the President. Settlement of Disputes

|

Any dispute arising with respect to coverage, benefits, con tributions and penalties or any other matter related thereto, shall be cognizable by the Commission, and any case filed with respect thereto shall be heard by the Commission, or any of its members, or by hearing officers' duly authorized by the Commission and decided within twenty (20) days af ter the submission of the evidence. The filing, determina tion and settlement of disputes shall be governed by the rules and regulations promulgated by the Commission. Appeal to Courts • Any decision of the Commission, in the absence of an appeal therefrom as herein provided, shall become final and executory fifteen (15) days after the date of notification, and judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has exhausted his remedies before the Commission. The Commission shall be deemed to be a party to any judicial action involving any such decision, and may be represented by an attorney employed by the Commission, or when requested by the Commission, by the Solicitor General or any public prosecutors. • The decision of the Commission upon any disputed matter may be reviewed both upon the law and the facts by the Court of Appeals. For the purpose of such review, the procedure concerning appeals from the Regional Trial Court shall be followed as far as practicable and consistent with the purposes of this Act. Appeal from a decision of the Commission must be taken within fifteen (15) days from notification of such decision. If the decision of the Commission involves only questions of law, the same shall be reviewed by the Supreme Court.

• Execution of Decisions. The Commission may, motu prop-rio or on motion of any interested party, issue a writ of execution to enforce any of its decisions or awards, after it has become final and executory, in the same manner as the decision of the Regional Trial Court, by directing the city or provincial sheriff or the sheriff whom it may appoint to enforce such final decision or execute such writ; and any person who shall fail or refuse to comply with such decision, award or writ, after being required to do so shall, upon application by the Commission pursuant to Rule 71 of the Rules of Court, be punished for contempt. Employer under SSS Law — 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 the services of another person who is under his orders as regards the employment, except the Government and any of its political subdivisions, branches or instrumentalities, including corporations owned or controlled by the Government: Provided, That a self-employed person shall be both employee and employer at the same time. Employee under the SSS Law —Any person who performs services for an employer in which either or both mental or physical efforts are used and who receives compensation for such services, where there is an employer-employee relationship: provided, That a selfemployed person shall be both employee and employer at the same time.

Dependents: (1)

The legal spouse entitled by law to receive support from the member; (2) The legitimate, legitimated or legally adopted, and illegitimate child who is unmarried, not gainfully employed, and has not reached twenty-one (21) years of age, or if over twenty-one (21) years of age, he is congenitally or while still a minor has been permanently incapacitated and incapable of self-support, physically or mentally; and

';(3) The parent who is receiving regular support from the member. compensation — All actual remuneration for employment, including the mandated cost-ofliving allowance, as well as the cash value of any remuneration paid in any medium other than cash except that part of the remuneration in excess of the maximum salary credit. Monthly — The period from one end of the last payroll period of the preceding month to the end of the last payroll period of the current month if compensation is on hourly, daily or weekly basis; if on any other basis, 'monthly' shall mean a period of one (1) month. Employment — Any service performed by an employee for his employer except: (1)

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

(2) Service performed on or in connection with an alien ves sel by an employee if he is employed when such vessel is outside the Philippines; (3) Service performed in the employ of the Philippine Gov ernment or instrumentality or agency thereof; Service performed in the employ of a foreign government or international organization, or their wholly-owned in strumentality: Provided, however, That this exemption notwithstanding, any foreign government, international organization or their wholly-owned instrumentality em ploying workers in the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with the Philippine Government for the inclusion of such employees in the SSS except those already covered by their respective civil service retirement systems: Provided, further, That the terms of such agreement shall con form with the provisions

of this Act on coverage and amount of payment of contributions and benefits: Provided, finally, That the provisions of this Act shall be supplementary to any such agreement; and

(5) Such other services performed by temporary and other employees which may be excluded by regulation of the Commission. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the service of said contractors. Beneficiaries: 1. Dependent spouse until he or she remarries;

2. Dependent legitimate, legitimated or legally adopted, and illegitimate children, who shall be the primary benefici aries of the member: Provided, That the dependent ille gitimate children shall be entitled to fifty percent (50%) of the share of the legitimate, legitimated or legally adopted children: Provided, further, That in the absence of the dependent legitimate, legitimated children of the member, his/her dependent illegitimate children shall be entitled to one hundred percent (100%) of the benefits. 3. In their absence, the dependent parents who shall be the secondary beneficiaries of the member. 4. In the absence of all the foregoing, any other person des ignated by the member as his/her secondary beneficiary. Contingency — The retirement, death, disability, injury or sickness and maternity of the member. Self-employed — Any person whose income is not derived from employment. Net earnings — Net income before income taxes plus non-cash charges such as depreciation and depletion appearing in the regular financial statement of the issuing or assuming institution. Coverage: 1. Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of age and their employers.

In the case of domestic helpers, their monthly income shall not be less than One thousand pesos (P1,000.00) a month: Spouses who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or employment which is subject to mandatory coverage, may be covered by the SSS on a voluntary basis. 4. Filipinos recruited by foreign-based employers for employment abroad may be covered by the SSS on a voluntary bacompulsory Coverage of the self-employed: •

Hi

I

Coverage in the SSS shall also be compulsory upon such self-employed persons, including but not limited to the fol lowing: 1. All self-employed professionals; 2. Partners and single proprietors of businesses; 3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term "employee" in Section 8 (d) of this Act; 3. Professional athletes, coaches, trainers and jockeys; and 5. Individual farmers and fishermen.

Effective Date of Coverage: Compulsory coverage of the employer shall take effect on the first day of his operation and that of the employee on the day of his employment: Provided, That the compulsory coverage of the self-employed person shall take effect upon his registration with the SSS. Effect of Separation from Employment: • When an employee under compulsory coverage is separated from employment, his employer's contribution on his account and his obligation to pay contributions arising from that employment shall cease at the end of the month of separa tion, but said employee shall be credited with all contribu tions paid on his behalf and entitled to benefits according to the provisions of this Act. He may, however, continue to pay the total contributions to maintain his right to full benefit. Effect of Interruption of Business or Professional Income : •

If the self-employed realizes no income in any given month he shall not be required to pay contributions for that month.' He may, however, be allowed to continue paying contribu tions under the same rules and regulations applicable to a separated employee member: Provided, That no retroactive payment of contributions shall be allowed other than as pre scribed under Section Twenty-two-A hereof.

Monthly Pension : •

The monthly pension shall be the highest of the following amounts: (1) The sum of the following: (i)

Three hundred pesos (P300.00); plus

(ii) Twenty percent (20%) of the average monthly salary credit; plus (iii) Two percent (2%) of the average monthly salary credit for each credited year of service in excess of ten (10) years; or (2) Forty percent (40%) of the average monthly salary credit; or (3) One thousand pesos (P1,000.00): Provided, That the monthly pension shall in no case be paid for an aggre gate amount of less than sixty (60) months. •

Notwithstanding the above, the minimum pension shall be One thousand two hundred pesos (P1,200.00) for members with at least ten (10) credited years of service and Two thou sand four hundred pesos (P2,400.00) for those with twenty (20) credited years of service.

Dependents' Pension : •

Where monthly pension is payable on account of death, per manent total disability or retirement, dependents' pension equivalent to ten percent (10%) of the monthly pension or Two hundred fifty pesos (P250.00), whichever is higher, shall also be paid for each dependent child conceived on or before the date of the contingency but not exceeding five (5), beginning with the youngest and without substitution: Provided, That where there are legitimate or illegitimate children, the former shall be preferred. retirement Benefits: A member who has paid at least one hundred twenty (120) monthly contributions prior to the semester of retirement and who: 1. has reached the age of sixty (60) years and is already separated from employment or has ceased to be self-em ployed; or 2. has reached the age of sixty-five (65) years, shall be en titled for as long as he lives to the monthly pension: Pro vided, That he shall have the option to receive his first eighteen (18) monthly pensions in lump sum discounted at a preferential rate of interest, to be determined by the SSS. A covered member who is sixty (60) years old at retirement and who does not qualify for pension benefits under paragraph (a) above, shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf: Provided, That he is separated from employment and is not continuing payment of contributions to the SSS on his own.

The monthly pension shall be suspended upon the reemployment or resumption of self-employment of a retired member who is less than sixty-five (65) years old. Upon the death of the retired member, his primary benefici aries as of the date of his retirement shall be entitled to receive the monthly pension: Provided, That if he has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period, excluding the dependents' pension

The monthly pension of a member who retires after reach ing age sixty (60) shall be the higher of either: (1) the monthly pension computed at the earliest time he could have retired had he been separated from employment or ceased to be selfemployed plus all adjustments thereto; or (2) the monthly pension computed at the time when he actually retires. Death Benefits: •

Upon the death of a member who has paid at least thirty-six (36) monthly contributions prior to the semester of death, his primary beneficiaries shall be entitled to the monthly pension: Provided, That if he has no primary beneficiaries, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-six (36) times the monthly pen sion. If he has not paid the required thirty-six (36) monthly contributions, his primary or secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or twelve (12) times the monthly pension, which ever is higher.

Permanent Disability Benefits: • Upon the permanent total disability of a member who has paid at least thirty-six (36) monthly contributions prior to the semester of disability, he shall be entitled to the monthly pension: Provided, That if he has not paid the required thirty-six (36) monthly contributions, he shall be entitled to a lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or twelve (12) times the monthly pension, whichever is higher. A member who: (1) has received a lump sum benefit; and (2) is reemployed or has resumed self-employment not earlier than one (1) year from the date of his disability shall again be subject to compulsory coverage and shall be considered a new member. • The monthly pension and dependents' pension shall be suspended upon the reemployment or resumption of self-employment or the recovery of the disabled member from his permanent total disability or his failure to present himself for examination at least once a year upon notice by the SSS.

Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date of disability shall be entitled to receive the monthly pension: Provided, That if he has no primary beneficiaries and he dies within sixty (60) months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period excluding the dependents' pension. The Following Disabilities Shall Be Deemed Permanent Total: 1. Complete loss of sight of both eyes; 2. Loss of two limbs at or above the ankle or wrists; 3. Permanent complete paralysis of two limbs; 4. Brain injury resulting to incurable imbecility or insan ity; and 5. Such cases as determined and approved by the SSS. If the disability is permanent partial, and such disability occurs before thirty-six (36) monthly contributions have been paid prior to the semester of disability, the benefit shall be such percentage of the lump sum benefit described in the preceding paragraph with due regard to the degree of disability as the Commission may determine. If the disability is permanent total and such disability occurs after thirty-six (36) monthly contributions have been paid prior to the semester of disability, the benefit shall be the monthly pension for permanent total disability payable not longer than the period designated in the following schedule: COMPLETE AND PERMANENT LOSS OF USE OF One thumb One index finger One middle Finger One ring finger One little finger One big toe One hand One arm One foot One leg One ear Both ears Hearing of one ear Hearing of both ears Sight of one eye

NUMBER OF MONTHS 10 8 6 5 3 6 39 50 31 46 10 20 10 50 25

• The percentage degree of disability which is equivalent to the ratio that the designated number of months of compensability bears to seventy-five (75), rounded to the next higher integer, shall not be additive for distinct, separate and unrelated

permanent partial disabilities, but shall be additive for deteriorating and related permanent partial disabilities to a maximum of one hundred percent (100%), in which case, the member shall be deemed as permanently totally disabled. • •

•

In case of permanent partial disability, the monthly pension benefit shall be given in lump sum if it is payable for less than twelve (12) months. For the purpose of adjudicating retirement, death and per manent total disability pension benefits, contributions shall be deemed paid for the months during which the member received partial disability pension: Provided, That such con tributions shall be based on his last contribution prior to his disability. Should a member who is on partial disability pension retire or die, his disability pension shall cease upon his retirement or death.

Funeral Benefit: •

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

sickness Benefit: • A member who has paid at least three (3) monthly contribu tions in the twelve-month period immediately preceding the semester of sickness or injury and is confined therefor for more than three (3) days in a hospital or elsewhere with the approval of the SSS, shall, for each day of compensable con finement or a fraction thereof, be paid by his employer, or the SSS, if such person is unemployed or self-employed, a daily sickness benefit equivalent to ninety percent (90%) of his average daily salary credit, subject to the following conditions: (1) In no case shall the daily sickness benefit be paid longer than one hundred twenty (120) days in one (1) calendar year, nor shall any unused portion of the one hundred twenty (120) days of sickness benefit granted under this section be carried forward and added to the total number of compensable days allowable in the subsequent year; (2) The daily sickness benefit shall not be paid for more than two hundred forty (240) days on account of the same con finement; and (3) The employee member shall notify his employer of the fact of his sickness or injury within five (5) calendar days after the start of his confinement unless such confinement is in a hospital or the employee became sick or was injured while working or within the premises of the employer in which case, notification to the employer is necessary: Provided, That if the member is unemployed or self-employed, he shall directly notify the SSS of his confinement within five (5) calendar days after the start thereof unless such confinement is in a hospital in which case notification is also not necessary: Provided, further, That in cases where notification is

necessary, the confinement shall be deemed to have started not earlier than fifth day immediately preceding the date of notification. * The compensable confinement shall begin on the first day sickness, and the payment of such allowances shall promptly made by the employer every regular payday or the fifteenth and last day of each month, and similarly the case of direct payment by the SSS, for as long as such allowances are due

the of be on in

and payable: Provided, That such allowance shall begin only after all sick leaves of absence with full pay to the credit of the employee member shall have been exhausted. One hundred percent (100%) of the daily benefits provided in the preceding paragraph shall be reimbursed by the SSS to said employer upon receipt of satisfactory proof of such payment and legality thereof: Provided, That the employer has notified the SSS of the confinement within five (5) calendar days after receipt of the notification from the employee member: Provided, further, That if the notification to the SSS is made by the employer beyond five (5) calendar days after receipt of the notification from the employee member, said employer shall be reimbursed only for each day of confinement starting from the tenth calendar day immediately preceding the date of notification to the SSS: Provided, finally, That the SSS shall reimburse the employer or pay the unemployed member only for confinement within the one-year period immediately preceeding the date the claim for benefit or reimbursement is received by the SSS, except confinement in a hospital in which case the claim for benefit or reimbursement must be filed within one (1) year from the last day of confinement. Where the employee member has given the required notification but the employer fails to notify the SSS of the confinement or to file the claim for reimbursement within the period prescribed in this section resulting in the reduction of the benefit or denial of the claim, such employer shall have no right to recover the corresponding daily allowance he advanced to the employee member as required in this section. The claim of reimbursement shall be adjudicated by the SSS within a period of two (2) months from receipt thereof: Provided, That should no payment be received by the employer within one (1) month after the period prescribed herein for adjudication, the reimbursement shall thereafter earn simple interest of one percent (1%) per month until paid. The provisions regarding the notification required of the member and the employer as well as the period within which the claim for benefit or reimbursement may be filed shall apply to all claims filed with the SSS.

maternity Leave Benefit: A female member who has paid at least three (3) monthly contributions in the twelve-month period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her average daily salary credit for sixty (60) days or seventy-eight (78) days in case of caesarian delivery, subject to the following conditions: (a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide; (b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave application; (c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same period for which daily maternity benefits have been received; (d) That the maternity benefits provided under this section shall be paid only for the first four (4) deliveries or mis carriages; (e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of mater nity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof; and (f) That if an employee member should give birth or suffer miscarriage without the required contributions having been remitted for her by her employer to the SSS, or without the latter having been previously notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which said employee member would otherwise have been entitled to. non-Transferability of Benefits: • Such benefits are not transferable and no power of attorney or other document executed by those entitled thereto in favor of any agent, attorney or any other person for the collection thereof on their behalf shall be recognized, except when they are physically unable to collect personally such benefits-Provided, further, That in case of death benefits, if no beneficiary qualifies under this Act, said benefits shall be paid to the legal heirs in accordance with the law of succession. Exemption from Tax. Legal Process and Lien : •

All laws to the contrary notwithstanding, the SSS and all its assets and properties, all contributions collected and all accruals thereto and income or investment earnings therefrom as well as all supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee, charge, or customs or import duty; and all benefit payments made by the SSS shall likewise be exempt from all kinds of taxes, fees or charges, and shall not be liable to attachments, garnishments, levy or seizure by or under any legal or

equitable process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the member to the SSS. No tax measure of whatever nature enacted shall apply to the SSS, unless it expressly revokes the declared policy of the State in Section 2 hereof granting tax-exemption to the SSS. Any tax assessment imposed against the SSS shall be null and void. Government Service Insurance System Act of 1997 Republic Act No. 8291 Employer under GSIS — The national government, its political subdivisions, branches, agencies or instrumentalities, including government-owned or -controlled corporations, and financial institutions with original charters, the constitutional commissions and the judiciary. Employee or Member — Any person receiving compensation while in the service of an employer as defined herein, whether by election or appointment, irrespective of status of appoint ment, including barangay and Sanggunian officials. (a) the legitimate spouse dependent for support upon the member or pensioner; (b) the legitimate, legitimated, legally adopted child, includ ing the illegitimate child, who is unmarried, not gainfully employed, not over the age of majority, or is over the age of majority but incapacitated and incapable of self-support due to a mental or physical defect acquired prior to age of majority; and (c) the parents dependent upon the member for support. Primary beneficiaries — The legal dependent spouse until he/she remarries and the dependent children. {Secondary beneficiaries — The dependent parents and, subject to the restrictions on dependent children, the legitimate descendants. ^Compensation — The basic pay or salary received by an employee, pursuant to his election/appointment, excluding per diems, bonuses, overtime pay, honoraria, allowances and any other emoluments received in addition to the basic pay which are not integrated into the basic pay under existing laws. pensioner — Any person receiving old-age permanent total disability pension or any person who has received the lump sum excluding one receiving survivorship pension benefits. Disability — Any loss or impairment of the normal functions of the physical and/or mental faculty of a member which reduces or eliminates his/her capacity to continue with his/her current gainful occupation or engage in any other gainful occupation; total Disability — Complete incapacity to continue with his present employment or engage in any gainful occupation due to the loss or impairment of the normal functions of the physical and/or mental faculties of the member; Permanent Total Disability — Accrues or arises when recovery from the impairment is medically remote;

Temporary Total Disability —Accrues or arises when the impaired physical and/or mental faculties can be rehabilitated and/or restored to their normal functions;

Permanent Partial Disability — Accrues or arises upon the irrevocable loss or impairment of certain portion/s of the physical faculties, despite which the member is able to pursue a gainful occupation. Compulsory Membership: • Membership in the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory retirement age, irrespective of employment status, except members of the Armed Forces of the Philippines and the Philippine National Police, subject to the condition that they must settle first their financial obligation with the GSIS, and contractuals who have no employer and employee relationship with the agencies they serve. • Except for the members of the judiciary and constitutional commissions who shall have life insurance only, all members of the GSIS shall have life insurance, retirement, and all other social security protections such as disability, survivorship, separation, and unemployment benefits. Effect of Separation from the Service: • A member separated from the service shall continue to be a member, and shall be entitled to whatever benefits he has qualified to in the event of any contingency compensable under this Act. Computation of the Basic Monthly Pension: •

The basic monthly pension is equal to: 1) thirty-seven and one-half percent (37.5%) of the revalued average monthly compensation; plus 2) two and one-half percent (2.5%) of said revalued average monthly compensation for each year of service in excess of (15) years: Provided, That the basic monthly pension shall not exceed ninety percent (90%) of the average monthly compensation.

Computation of Service: •

The computation of service for the purpose of determining the amount of benefits payable under this Act shall be from

the date of original appointment/election, including periods of service at different times under one or more employers, those performed overseas under the authority of the Republic of the Philippines, and those that may be prescribed by the GSIS in coordination with the Civil Service Commission. All service credited for retirement, resignation or separa tion for which corresponding benefits have been awarded under this Act or other laws shall be excluded in the computation of service in case of reinstatement in the service of an employer and subsequent retirement or separation which is compensable under this Act. The term service shall include full-time service with compensation: Provided, That parttime and other services with compensation may be included under such rules and regulations as may be prescribed by the GSIS. Separation Benefits : •

The separation benefits shall consist of: 1. a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000) payable upon reaching sixty (60) years of age upon separation, whichever comes later: Provided, That the member resigns or separates from the service after he has rendered at least three (3) years of service but less than fifteen (15) years; or 2. a cash payment equivalent to eighteen (18) times his basic monthly pension at the time of resignation or separa tion, plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching the age of sixty (60): Provided, That the member resigns or separates from the service after he has rendered at least fifteen (15) years of service and is below sixty (60) years of age at the time of resignation or separation. Unemployment or Involuntary Separation Benefits : * Unemployment benefits in the form of monthly cash pay ments equivalent to fifty percent (50%) of the average monthly compensation shall be paid to a permanent employee who is involuntarily separated from the service due to the abolition of his office or position usually resulting from reor ganization: Provided, That he has been paying integrated contributions for at least one (1) year prior to separation.

Retirement Benefits : •

Retirement benefits shall be: (1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit equal to the basic monthly pension payable monthly for life, starting upon expiration of the five-year (5) guaran teed period covered by the lump sum; or

(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life pay able immediately with no five-year (5) guarantee. •

Conditions for Entitlement : — A member who retires from the service shall be entitled to the retirement benefits enumerated in paragraph (a) of Section 13 hereof: Provided, That: (1) he has rendered at least fifteen years of service; (2) he is at least sixty (60) years of age at the time of retirement; and (3) he is not receiving a monthly pension benefit from permanent total disability.

Permanent Disability Benefits : •

General Conditions for Entitlement : A member who suffers permanent disability for reasons not due to his grave mis conduct, notorious negligence, habitual intoxication, or willful intention to kill himself or another, shall be entitled to the benefits provided.

•

Permanent Total Disability Benefits. — (a) If the permanent disability is total, he shall receive a monthly income benefit for life equal to the basic monthly pension effective from the date of disability: Provided, That: (1) he is in the service at the time of disability; or (2) if separated from the service, he has paid at least thirtysix (36) monthly contributions within the five (5) year period immediately preceding disability, or has paid a total of at least one hundred eighty (180) monthly con tributions, prior to his disability: Provided, further, That if at the time of disability, he was in the service and has paid a total of at least one hundred eighty (180) monthly contributions, in addition to the monthly income benefit, he shall receive a cash payment equivalent to eighteen (18) times his basic monthly pension: Provided, finally, That a member cannot enjoy the monthly income benefit for permanent disability and the old-age retirement si multaneously. If a member who suffers permanent total disability does not satisfy conditions (1) and (2) in paragraph (a) of this section but has rendered at least three (3) years of service at the time of his disability, he shall be advanced the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00) which should have been his separation benefit. Unless the member has reached the minimum retirement age, disability benefit shall be suspended when: (1) he is reemployed; or (2) he recovers from his disability as determined by the GSIS, whose decision shall be final and binding; or

(3) he fails to present himself for medical examination when required by the GSIS. The following disabilit ies shall be deemed total and perma nent: ( 1)

complete loss of sight of both eyes:

(2i

loss of two (2) limbs at or above the ankle or wrist;

(3) permanent complete paralysis of two (2) limbs; brain injury resulting in incurable imbecility or insan ity: and

(5) such other cases as may be determined by the GSIS Permanent Partial Disability Benefits : • If the disability is partial, he shall receive a cash payment in accordance with a schedule of disabilities to be prescribed by the GSIS: Provided, That he satisfies either conditions (1) or (2) for permanent total disability. The following disabilities shall be deemed permanent p artial: (1) complete and permanent loss of the use of: (i) any finger; (ii) any toe; (iii) one arm; (iv) one hand; (v) one foot; (vi) one leg; (vii) one or both ears; (viii) hearing of one or both ears; and (ix) sight of both eyes. (2) such other cases as my be determined by the GSIS. Temporary Disability Benefits: • A member who suffers temporary total disability for reasons not due to any of the conditions enumerated in Section 15 hereof, shall be entitled to seventy-five percent (75%) of his current daily compensation for each day or fraction thereof of temporary disability benefit not exceeding one hundred twenty (120) days in one calendar year after exhausting all his sick leave credits and collective bargaining agreement sick leave benefits, if any, but not earlier than the fourth day of his temporary total disability: Provided, That: (1) he is in the service at the time of his disability: or (2) if separated, he has rendered at least three (3) years of service and has paid at least six (6) monthly contribu tions in the twelve-month period immediately preced ing his disability.

Provided, however, That a member cannot enjoy the temporary total disability benefit and sick leave pay simultaneously: Provided, further, That if the disability requires more extensive treatment that lasts beyond one hundred twenty (120) days, the payment of the temporary total disability benefit may be extended by the GSIS but not to exceed a total of two hundred forty (240) days. The temporary total disability benefit shall in no case be less than Seventy pesos (P70.00) a day. survivorship Benefits: When a member or pensioner dies, the beneficiaries shall be entitled to survivorship benefits provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. The survivorship pension shall consist of: (1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension; and (2) the dependent children's pension not exceeding fifty percent (50%) of the basic monthly pension. death a Member: Upon the death of a member, the primary beneficiaries shall be entitled to: (1) survivorship pension: Provided, That the deceased: (i) was in the service at the time of his death; or (ii) if separated from the service, has at least three (3) years of service at the time of his death and has paid thirty-six (36) monthly contributions within the five-year period immediately preceding his death; or has paid a total of at least one hundred eighty (180) monthly contributions prior to his death;or 2) the survivorship pension plus a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for every year of service: Provided, That the deceased was in the service at the time of his death with at least three (3) years of service; or (3) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00): Provided, That the deceased has rendered at least three (3) years of service prior to his death but does not qualify for the benefits under item (1) or (2) of this paragraph. •

The survivorship pension shall be paid as follows : 1.

when the dependent spouse is the only survivor, he/she shall receive the basic survivorship pension for life or until he/she remarries;

2.

when only dependent children are the survivors, they shall be entitled to the basic survivorship pension for as long as they are qualified, plus the dependent chil dren's pension equivalent to ten percent (10%) of the basic monthly pension for every dependent child not exceeding five (5), counted from the youngest and with out substitution;

3.

when the survivors are the dependent spouse and the dependent children, the dependent spouse shall receive

the basic survivorship pension for life or until he/she remarries, and the dependent children shall receive the dependent children's pension mentioned in the imme diately preceding paragraph (2) hereof. •

In the absence of primary beneficiaries, the secondary ben eficiaries shall be entitled to : (1) the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00): Provided, That the member is in the service at the time of his death and has at least three (3) years of service; or (2) in the absence of secondary beneficiaries, the benefits under this paragraph shall be paid to his legal heirs

Death of a Pensioner: •

Upon the death of an old-age pensioner or a member receiv ing the monthly income benefit for permanent disability, the qualified beneficiaries shall be entitled to the survivorship pension defined in Section 20 of this Act, subject to the provisions of paragraph (b) of Section 21 hereof. When the pensioner dies within the period covered by the lump sum, the ■ survivorship pension shall be paid only after the expiration of the said period.

Funeral Benefits: | The amount of the funeral benefits shall be determined and specified by the GSIS in the rules and regulations but shall not be less than Twelve thousand pesos (P12,000.00): Provided, That it shall be increased to at least Eighteen thou sand pesos (P18,000.00) after five (5) years and shall be paid upon the death of: (a) an active member as defined under Section 2 (e) of this Act; or (b) a member who has been separated from the service, but who may be entitled to future benefit pursuant to Section 4 of this Act; or (c) a pensioner, as defined in Section 2 (o) of this Act; or (d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to retire under Republic Act No. 1616. Compulsory Life Insurance: All employees except for Members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) shall, under such terms and conditions as may be promulgated by the GSIS, be compulsorily covered with life insurance, which shall automatically take effect as follows: (1) for those employed after the effectivity of this Act, their insurance shall take effect on the date of their employ ment; (2) for those whose insurance will mature after the effectivity of this Act, their insurance shall be deemed

renewed on the day following the maturity or expiry date of their insurance;

(3) for those without any life insurance as of the effectivity of this Act, their insurance shall take effect following said effectivity. Adjudication Of Claims And Disputes Prescription: •

Claims for benefits under this Act except for life and retire ment shall prescribe after four (4) years from the date of contingency.

Settlement of Disputes: • The GSIS shall have original and exclusive jurisdiction to settle any disputes arising under the GSIS Law and any other laws administered by the GSIS. Appeals: • Appeals from any decision or award of the Board shall be governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure. Provided that the appeal shall take precedence over all other cases except criminal cases when the penalty of life imprisonment or death or reclusion perpetua is imposable. Administration Implementing Body: • The Government Service Insurance System as created under Commonwealth Act No. 186 shall implement the provisions of the law. National Health Insurance Act of 1995 Republic Act No. 7875 Guiding Principles of the National Health Insurance Program 1. Allocation of National Resources for Health — The Program shall underscore the importance for government to give priority to health as a strategy for bringing about faster economic development and improving quality of life;

2. Universality — The Program shall provide all citizens with the mechanism to gain financial access to health services, in combination with other government health programs. The National Health Insurance Program shall give the highest priority to achieving coverage of the entire population with at least a basic minimum package of health insurance benefits; 3., Equity — The Program shall provide for uniform basic benefits. Access to care must be a function of a person's health ' needs rather than his ability to pay; 4. Responsiveness — The Program shall adequately meet the health services at various stages of a member's life;

needs for personal

5, Social Solidarity — The Program shall be guided by community spirit. It must enhance risk-sharing among income groups, age groups, and persons of differing health status, and residing in different geographic areas; 6. Effectiveness — The Program shall balance economical use of resources with quality of care; 7. Innovation — The Program shall adopt to changes in medical technology, health service organizations, health care provider payments systems, scopes of professional practice, and other trends in the health sector. It must be cognizant of the appropriate roles and respective strengths of the public and private sectors in health care, including people's organizations and community-based health care organizations; 8. Devolution — The Program shall be implemented in consul tation with the local government units (LGUs), subject to the over-all policy directions set by the National Government; 9. Fiduciary Responsibility — The Program shall provide ef fective stewardship, funds management, and maintenance of reserves; 10. Informed Choice — The Program shall encourage members to choose from among accredited health care providers. The Corporation's local offices shall objectively apprise its members of the full range of providers involved in the Program and of the services and privileges to which they are entitled as members. This explanation, which the member may use as a guide in selecting the appropriate and most suitable provider, shall be given in clear and simple Filipino and in the local language that is comprehensible to the members11.Maximum Community Participation — The Program shall build on existing community initiatives for its organization and human resource requirements; 12.Compulsory Coverage —All citizens of the Philippines shall be required to enroll in the National Health Insurance Pro gram in order to avoid adverse selection and social inequity 13.Cost Sharing — The Program shall continuously evaluate its cost-sharing schedule to ensure that the costs borne by the members are fair and equitable and that the charges by health care providers are reasonable;

14.Professional Responsibility of Health Care Providers — The Program shall assure that all participating health care pro viders are responsible and accountable in all their dealings with the Corporation and its members; 15. Public Health Services — The Government shall be respon sible for providing public health services for all groups such as women, children, indigenous people, displaced communi ties in environmentally endangered areas, while the Program shall focus on the provision of personal health services. Pre ventive and promotive public health services are essential for reducing the need and spending for personal health serv ices; 16. Quality of Services — The Program shall promote the im provement in the quality of health services provided through the institutionalization of programs of quality assurance at all levels of the health service delivery system. The satisfaction of the community, as well as individual beneficiaries, shall be a determinant of the quality of service delivery; 17. Cost Containment — The Program shall incorporate features of cost containment in its design and operations and provide a viable means of helping the people pay for health can' services; and 18. Care for the Indigent -- The government shall be responsible for providing a basic package of needed personal health services to indigents through premium subsidy, or through direct service provision until such time that the program is fully implemented. general Objectives: 1 . provide all citizens of the Philippines with the mechanism to gain financial access to health services; 2.. create the National Health Insurance Program, hereinafter referred to as the Program, to serve as the means to help the people pay for health care services; 3. prioritize and accelerate the provisions of health services to all Filipinos, especially that segment of the population who cannot afford such services; and ' 4. establish the Philippine Health Insurance Corporation, here inafter referred to as the Corporation, that will administer the Program at central and local levels. beneficiary — Any person entitled to health care benefits under this Act. Capitation —A payment mechanism where a fixed rate, whether per person, family, household, or group, is negotiated with the health care provider who shall be responsible for delivering or arranging for the delivery of health services required by the covered person under the conditions of a health provider contract. )dependent : The legal dependents of a member are: 1) the legitimate spouse who is not a member;

1) the unmarried and unemployed legitimate, legitimated, illegitimate, acknowledged children as appearing in the birth certificate; legally adopted or stepchildren below twenty-one (21) years of age; 3) children who are twenty-one (21) years old or above but suffering from congenital disability, either physical or mental, or any disability acquired that renders them to tally dependent on the member for support;

4) the parents who are sixty (60) years old or above whose monthly income is below an amount to be determined by the Corporation in accordance with the guiding principles set forth. Emergency —An unforeseen combination of circumstances which calls for immediate action to preserve the life of a person or to preserve the sight of one or both eyes; the hearing of one or both ears; or one or two limbs at or above the ankle or wrist. Employee under NHIA — 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. Employer under NHIA — A natural or juridical person who employs the services of an employee. Health Care Provider — Refers to: 1. a health care institution, which is duly licensed and accredited and devoted primarily to the maintenance and operation of facilities for health promotion, prevention, diagnosis, treatment, and care of individuals suffering from illness, disease, injury, disability or deformity, or in need of obstetrical or other medical and nursing care. It shall also be construed as any institution, building, or place where there are installed beds, cribs, or bassinets for twenty-four hour use or longer by patients in the treatment of diseases, injuries, deformities, or abnormal physical and mental states, maternity cases or sanitarial care; or infirmaries, nurseries, dispensaries, and such other similar names by which they may be designated; or 2. a health care professional, who is any doctor of medi cine, nurse, midwife, dentist, or other health care pro fessional or practitioner duly licensed to practice in the Philippines and accredited by the Corporation; or 3. a health maintenance organization, which is an entity that provides, offers, or arranges for coverage of desig nated health services needed by plan members for a fixed prepaid premium; or 4. a community-based health care organization, which is an association of indigenous members of the community organized for the purpose of improving the health status of that community through preventive, promotive and curative health services. indigent —A person who has no visible means of income, or whose income is insufficient for the subsistence of his family, as identified by the Local Health Insurance Office and based on specific criteria set by the Corporation in accordance with the guiding principles set forth in Article I of this Act. in patient Education Package — A set of informational services made available to an individual who is confined in a hospital to afford him with knowledge about his

illness and its treatment, and of the means available, particularly lifestyle changes, to prevent the recurrence or aggravation of such illness and to promote his health in general. Medicare — The health insurance program currently being implemented by the Philippine Medical Care Commission. It consists of: 1) Program I, which covers members of the SSS and GSIS, including their legal dependents; and 2) Program II, which is intended for those not covered un der Program I. National Health Insurance Program — The compulsory health insurance program of the government, which shall provide universal health insurance coverage and ensure affordable, acceptable, available and accessible health care services for all citizens of the Philippines. Coverage: • All citizens of the Philippines shall be covered by the Na tional Health Insurance Program. In accordance with the principles of universality and compulsory coverage, implementation of the Program shall, furthermore, be gradual and phased in over a period of not more than fifteen (15) years: Provided, That the Program shall not be made compulsory in certain provinces and cities until the Corporation shall be able to ensure that members in such localities shall have reasonable access to adequate and acceptable health care services.

Benefit Package : • The following categories of personal health services granted to the member or his dependents as medically necessary or appropriate, shall include: a) Inpatient hospital care: 1) room and board; 2) services of health care professionals; 3) diagnostic, laboratory, and other medical examina tion services; 4) use of surgical or medical equipment and facilities; 5) prescription drugs and biologicals; subject to the limi tations stated in Section 37 of this Act; 6) inpatient education packages; b) Outpatient care: 1) services of health care professionals; 2) diagnostic, laboratory, and other medical examina tion services; 3) personal preventive services; and 4) prescription drugs and biologicals, subject to the limi tations described in Section 37 of this Act; c) Emergency and transfer services; and

c) Such other health care services that the Corporation shall determine to be appropriate and cost-effective: Provided, That the Program, during its initial phase of implemen tation, which shall not be more than five (5) years, shall provide a basic minimum package of benefits which shall be defined according to the following guidelines: 1)

the cost of providing said packages is such that the available national and local government subsidies for premium payments of indigents are sufficient to ex tend coverage to the widest possible population. 2) the initial set of services shall not be less than half of those provided under the current Medicare Program I in terms of overall average cost of claims paid per beneficiary household per year.

3) the services included are prioritized, first, according to its cost-effectiveness and, second, according to its potential of providing maximum relief from the fi nancial burden on the beneficiary: Provided, That, in addition to the basic minimum package, the Pro gram shall provide supplemental health benefit cov erage to beneficiaries of contributory funds, taking into consideration the availability of funds for the purpose from said contributory funds: Provided, fur ther, That the Program progressively expand the ba sic minimum benefit package as the proportion of the population covered reaches targeted milestone so that the same benefits are extended to all members of the Program within five (5) years after the implementa tion of the NHIA. Such expansion will provide for the gradual incorporation of supplementary health ben efits previously extended only to some beneficiaries into the basic minimum package extended to all ben eficiaries: And Provided, finally, That in the phased implementation the NHIA, there should be no reduc tion or interruption in the benefits currently enjoyed by present members of Medicare. Excluded Personal Health Service : The benefits granted shall not cover expenses for the serv ices enumerated hereunder except when the Corporation, after actuarial studies, recommend their inclusion subject to the approval of the Board: a) non-prescription drugs and devices; b) out-patient psychotherapy and counseling for mental dis orders; c) drug and alcohol abuse or dependency treatment d) cosmetic surgery; e) home and rehabilitation services; f) optometric services;

g) normal obstetrical delivery; and h) cost ineffective procedures which shall be defined by the Corporation. Entitlement to Benefits : •

A member whose premium contributions for at least three (3) months have been paid within six (6) months prior to the first day of his or his availment, shall be entitled to the ben efits of the Program: Provided, That such member can show that he contributes thereto with sufficient regularity; The following need not pay the monthly contributions to be entitled to the Program's benefits : a) Retirees and pensioners of the SSS and GSIS prior to the effectivity of this Act; b) Members who reach the age of retirement as provided for by law and have paid at least one hundred twenty (120) contributions; and c) Enrolled indigents.

The Philippine Health Insurance Corporation : •

The NHIA created a Philippine Health Insurance Corpora tion, which shall have the status of a tax-exempt govern ment corporation attached to the Department of Health for policy coordination and guidance.

Quasi-Judicial Po wers: •

The Corporation, to carry out its tasks more effectively, shall be vested with the following powers, in addition to those enu merated in the law: a) to conduct investigations for the determination of a ques tion, controversy, complaint, or unresolved grievance brought to its attention, and render decisions, orders, or resolutions thereon. It shall proceed to hear and determine

the case even in the absence of any party who has been properly served with notice to appear. It shall conduct its proceedings or any part thereof in public or in executive session; adjourn its hearings to any time and place; refer technical matters or accounts to an expert and to accept his reports as evidence; direct parties to be joined in or excluded from the proceedings; and give all such directions as it may deem necessary or expedient in the determination of the dispute before it;

b) to summon the parties to a controversy, issue subpoenas requiring the attendance and testimony of witnesses or the production of documents and other materials neces sary to a just determination of the case under investiga tion; b) to suspend temporarily, revoke permanently, or restore the accreditation of a health care provider or the right to benefits of a member and/or impose fines after due notice and hearing. The decision shall immediately

be executory, even pending appeal, when the public interest so requires and as may be provided for in the implementing rules and regulations. Suspension of accreditation shall not exceed twenty-four (24) months. Suspension of the rights of the members shall not exceed six (6) months. The Corporation shall not be bound by the technical rules of | evidence. Health Care Providers free Choice of Health Facility. Medical or Dental Practitioner : Beneficiaries requiring treatment or confinement shall be free to choose from accredited health care providers. Such choice shall, however, be subject to limitations based on the area of jurisdiction of the concerned Office and on the appropriateness of treatment in the facility chosen or by the desired provider. Grounds for Grievances: The following acts shall constitute valid grounds for grievance action: 1. any violation of the rights of the patients; 1. a willful neglect of duties of Program implementors that results in the loss or non-enjoyment of benefits of mem bers or their dependents; 2. unjustifiable delay in actions on claims; 2. delay in processing of claims that extends beyond the period agreed upon; and 3. any other act or neglect that tends to undermine or de feat the purposes of this Act. Comprehensive Agrarian Reform Law of 1988 Republic Act No. 6657 Declaration of Principles and Policies : •

It is the policy of the State to pursue a Comprehensive Agrar ian Reform Program (CARP). The welfare of the landless farmers and farm workers will receive the highest consid eration to promote social justice and to move the nation to wards sound rural development and industrialization, and the establishment of owner cultivatorship of economic-sized farms as the basis of Philippine agriculture.

•

To this end, a more equitable distribution and ownership of land, with due regard to the rights of landowners to just com pensation and to the ecological needs of the nation, shall be undertaken to provide farmers and farm workers with the op portunity to enhance their dignity and improve the quality of their lives through greater productivity of agricultural lands.

•

The agrarian reform program is founded on the right of farm ers and regular farm workers, who are landless, to own di rectly or collectively the lands they till or, in the case of other farm workers, to receive a share of the fruits thereof. To this end, the State shall encourage the just distribution of all agricultural lands, subject to the priorities and retention limits set forth in this Act, having taken into account ecologi

cal, developmental, and equity considerations, and subject to the payment of just compensation. The State shall respect the right of small landowners and shall provide incentives for voluntary land-sharing. The State shall recognize the right of farmers, farm workers and landowners, as well as cooperatives and other independent farmers' organization, to participate in the planning, organization, and management of the program, and shall pro vide support to agriculture through appropriate technology and research, and adequate financial, production, marketing and other support services. The State shall apply the principles of agrarian reform or stewardship, whenever applicable, in accordance with law, in the disposition or utilization of other natural resources, including lands of the public domain, under lease or concession, suitable to agriculture, subject to prior rights, homestead rights of small settlers and the rights of indigenous communities to their ancestral lands. The State may resettle landless farmers and farm workers in its own agricultural estates, which shall be distributed to them in the manner provided by law. By means of appropriate incentives, the State shall encour age the formation and maintenance of economic-sized family farms to be constituted by individual beneficiaries and small landowners. The State shall protect the rights of subsistence fishermen, especially of local communities, to the preferential use of communal marine and fishing resources, both inland and offshore. It shall provide support to such fishermen through appropriate technology and research, adequate financial, production and marketing assistance and other services, The State shall also protect, develop and conserve such resources. The protection shall extend to offshore fishing grounds of subsistence fishermen against foreign intrusion. Fishworkers shall receive a just share from their labor in the utilization of marine and fishing resources. The State shall be guided by the principles that land has a social function and land ownership has a social responsibility. Owners of agricultural land have the obligation to cultivate directly or through labor administration the lands they own and thereby make the land productive. The State shall provide incentives to landowners to invest the proceeds of the agrarian reform program to promote in dustrialization, employment and privatization of public sector enterprises. Financial instruments used as payment for lands shall contain features that shall enhance negotiabil ity and acceptability in the marketplace. • The State may lease undeveloped lands of the public domain to qualified entities for the development of capital-intensive farms, traditional and pioneering crops especially those for exports subject to the prior rights of the beneficiaries under this Act. Agrarian Reform — means the redistribution of lands, regardless of crops or fruits produced, to farmers and regular farm workers who are landless, irrespective of tenurial arrangement, to include the totality of factors and support services designed to lift the economic status of the beneficiaries and all other arrangements alternative to the physical redistribution of lands, such as production or profit-sharing, labor administration, and the distribution of shares of stock which will allow beneficiaries to receive a just share of the fruits of the lands they work. Agriculture, Agricultural Enterprise or Agricultural Activity — means the cultivation of the soil, planting of crops, growing of fruit trees, including the harvesting of such

farm products, and other farm activities and practices performed by a farmer in conjunction with such farming operations done by persons whether natural of juridical. Agricultural Land — refers to land devoted to agricultural activity as defined in the law and not classified as mineral, forest, residential, commercial or industrial land. Agrarian Dispute — refers to any controversy relating to tenurial arrangements, whether leasehold, tenancy, stewardship or otherwise, over lands devoted to agriculture, including disputes concerning farm workers' associations or representa tion of persons in negotiating, fixing, maintaining, changing or seeking to arrange terms or conditions of such tenurial arrangements. • It includes any controversy relating to compensation of lands acquired under this Act and other terms and conditions of transfer of ownership from landowners to farm workers, tenants and other agrarian reform beneficiaries, whether the disputants stand in the proximate relation of farm operator and beneficiary, landowner and tenant, or lessor and lessee. ldle or Abandoned Land — refers to any agricultural land not cultivated, tilled or developed to produce any crop nor devoted to any specific economic purpose continuously for a period of three (3) years immediately prior to the receipt of notice of acquisition by the government as provided under this Act, but does not include land that has become permanently or regularly devoted to non-agricultural purposes. It does not include land which has become unproductive by reason of force majeure or any other fortuitous event: Provided, That prior to such event, such land was previously used for agricultural or other economic purposes. farmer — refers to a natural person whose primary livelihood is cultivation of land or the production of agricultural crops either by himself, or primarily with the assistance of his immediate farm household, whether the land is owned by him, or by another person under a leasehold or share ten ancy agreement or arrangement with the owner thereof. Farmworker — is a natural person who renders service for value as an employee or laborer in an agricultural enterprise or farm regardless of whether his compensation is paid on a daily, weekly, monthly or "pakyaw" basis. The term includes an individual whose work has ceased as a consequence of, or in connection with, a pending agrarian dispute who has not obtained a substantially equivalent and regular farm employment. tegular Farmworker — is a natural person who is employed on a permanent basis by an agricultural enterprise or farm. seasonal Farmworker — is a natural person who is employed on a recurrent, periodic or intermittent basis by an agricultural enterprise or farm, whether as a permanent or a non-permanent laborer, such as "dumaan," "sacada," and the like. Cooperatives — shall refer to organizations composed primarily of small agricultural producers, farmers, farm workers, or other agrarian reform beneficiaries who voluntarily organize themselves for the purpose of pooling land, human, technological, financial or other economic resources, and operated on the

principle of one member, one vote. A juridical person may be a member of a cooperative, with the same rights and duties as a natural person.

Coverage

Scope: The CARL shall cover, regardless of tenurial arrangement and commodity produced, all public and private agricultural lands as provided in Proclamation No. 131 and Executive Order No. 229, including other lands of the public domain suitable for agriculture. • More specifically, the following lands are covered by the CARP: (a) All alienable and disposable lands of the public do main devoted to or suitable for agriculture. No reclassification of forest or mineral lands to agricul tural lands shall be undertaken after the approval of the CARL until Congress, taking into account eco logical, developmental and equity considerations, shall have determined by law, the specific limits of the public domain; (b) All lands of the public domain in excess to the spe cific limits as determined by Congress in the pre ceding paragraph; (c) All other lands owned by the Government devoted to or suitable for agriculture; and (d) All private lands devoted to or suitable for agricul ture regardless of the agricultural products raised or that can be raised thereon. Retention Limits: • No person may own or retain, directly, any public or private agricultural land, the size of which shall vary according to factors governing a viable family-sized farm, such as com" modify produced, terrain, infrastructure, and soil fertility. but in no case shall the retention by the landowner exceed five (5) hectares. Three (3) hectares may be awarded to each child of the landowner, subject to the following qualifications: (1) that he is at least fifteen (15) years of age; and (2)

that he is actually tilling the land or directly managing the farm: Provided, That landowners whose lands have been covered by PD No. 27 shall be allowed to keep the area originally retained by them thereunder; Provided, further, That original homestead grantees or direct com pulsory heirs who still own the original homestead at the time of the approval of this Act shall retain the same areas as long as they continue to cultivate said home stead. The right to choose the area to be retained, which shall be compact or contiguous, shall pertain, to the landowner: Provided, however, That in case the area selected for retention by the landowner is tenanted, the tenant shall have the option to choose whether to remain therein or be a beneficiary in the same or another agricultural land with similar or comparable features. In case the tenant chooses to remain in the retained area, he shall be considered a leaseholder and shall lose his right to be a beneficiary under this Act. In case the tenant chooses to be a beneficiary in another agricultural land, he loses his right as a leaseholder to the land retained by the landowner. The tenant must

exercise this option within a period of one (1) year from the time the landowner manifests his choice of the area for retention. Ancestral Lands: Ancestral lands of each indigenous cultural community shall include, but not be limited to, lands in the actual, continuous and open possession and occupation of the community and its members: Provided, That the Torrens System shall be respected. The right of these communities to their ancestral lands shall be protected to ensure their economic, social and cultural well-being. In line with the other principles of self-determination and autonomy, the systems of land ownership, land use, and the modes of settling land disputes of all these communities must be recognized and respected. The PARC may suspend the implementation of this Act with respect to ancestral lands for the purpose of identifying and delineating such lands: Provided, That in the autonomous regions, the respective legislatures may enact their own laws on ancestral domain subject to the provisions of the Constitution and the principles enunciated in this Act and other national laws. Exemptions and Exclusions: (a) Lands actually, directly and exclusively used for parks, wild life, forest reserves, reforestation, fish sanctuaries and breed ing grounds, watersheds and mangroves shall be exempt from the coverage of this Act. (b) Private lands actually, directly and exclusively used for prawn farms and fishponds shall be exempt from the coverage of this Act: Provided, That said prawn farms and fishponds have not been distributed and Certificate of Land Ownership Award (CLOA) issued under the Agrarian Reform Program. • In cases where the fishponds or prawn farms have been subjected to the Comprehensive Agrarian Reform Law, by voluntary offer to sell, or commercial farms deferment or notices of compulsory acquisition, a simple and absolute majority of the actual regular workers or tenants must consent to the exemption within one (1) year from the effectivity of this Act. When the workers or tenants do not agree to this exemption, the fishponds or prawn farms shall be distributed collectively to the worker-beneficiaries or tenants who shall form cooperative or association to manage the same. (c) Lands actually, directly and exclusively used and found to be necessary for national defense, school sites and campuses, including experimental farm stations operated by public or private schools for educational purposes, seeds and seedlings research and pilot production center, church sites and convents appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds and cemeteries, penal colonies and penal farms actually worked by the inmates, government and private research and quarantine centers and all lands with eighteen percent (18%) slope and over, except those already developed, shall be exempt from the coverage of this Act.

commercial Farming : Commercial farms which are private agricultural lands de voted to salt beds, fruit farms, orchards, vegetable and cut-flower farms, and Cacao, coffee and rubber plantations, shall be subject to immediate compulsory acquisition and distri bution after ten (10) years from the effectivity of this Act. In the case of new farms, the tenyear period shall begin from the first year of commercial production and operation, as determined by the DAR. During the ten-year period, the Government shall initiate steps necessary to acquire these lands, upon payment of just compensation for the land and the improvements thereon, preferably in favor of organized cooperatives or associations, which shall thereafter manage the said lands for the workersbeneficiaries. Land Acquisition Procedure for Acquisition of Private Lands : a. After having identified the land, the landowners and the beneficiaries, the DAR shall send its notice to acquire the land to the owners thereof, by personal delivery or registered mail, and post the same in a conspicuous place in the municipal building and barangay hall of the place where the property is located. Said notice shall contain the offer of the DAR to pay a corresponding value in accordance with the valuation set forth in Sections 17, 18, and other pertinent provisions hereof. b. Within thirty (30) days from the date of receipt of writ ten notice by personal delivery or registered mail, the landowner, his administrator or representative shall in form the DAR of his acceptance or rejection of the offer. c. If the landowner accepts the offer of the DAR, the LBP shall pay the landowner the purchase price of the land within thirty (30) days after he executes and delivers a deed of transfer in favor of the Government and surren ders the Certificate of Title and other muniments of title. d. In case of rejection or failure to reply, the DAR shall con duct .summary administrative proceedings to determine the compensation of the

land by requiring the landowner the LBP and other interested parties to submit evidence as to the just compensation for the land, within fifteen (15) days from the receipt of the notice. After the expiration of the above period, the matter is deemed submitted for decision. The DAR shall decide the case within thirty (30) days after it is submitted for decision. e. Upon receipt by the landowner of the corresponding pay ment or in case of rejection or no response from the land owner, upon the deposit with an accessible bank desig nated by the DAR of the compensation in cash or LBP bonds in accordance with this Act, the DAR shall take immediate possession of the land and shall request the proper Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of the Republic of the Philip pines. The DAR shall thereafter proceed with the redis tribution of the land to the qualified beneficiaries.

f. Any party who disagrees with the decision may bring the matter to the court of proper jurisdiction for final deter mination of just compensation. Compensation: Determination of Just Compensation: •

In determining just compensation, the cost of acquisition of the land, the current value of like properties, its nature, actual use and income, the sworn valuation by the owner, the tax declarations, and the assessment made by govern ment assessors, shall be considered. The social and economic benefits contributed by the farmers and the farmworkers and by government to the property as well as the non-payment of taxes or loans secured from any government financing in stitution on the said land shall be considered as additional factors to determine its valuation.

Incentives for Voluntary Offers for Sale: • Landowners other than banks and other financial institu tions who voluntarily offer their lands for sale shall be entitled to an additional five percent (5%) cash payment.

land Redistribution qualified Beneficiaries: • The lands covered by the CARP shall be distributed as much as possible to landless residents of the same barangay, or in the absence thereof, landless residents of the same municipality in the following order of priority: (a) agricultural lessees and share tenants; (b) regular farm workers; (c) seasonal farm workers; (d) other farm workers; (e) actual tillers or occupants of public lands; (f) collective or cooperatives of the above beneficiaries; and (g) others directly working on the land. Provided, however, That the children of landowners who are qualified shall be given preference in the distribution of the land of their parents and: Provided, further, That actual tenant-tillers in the landholding shall not be ejected or removed therefrom. A basic qualification of a beneficiary shall be his willingness, aptitude and ability to cultivate and make land as productive as possible. If due to landowner's retention rights or to the number of tenants, lessees, or workers on the land, there is not enough land to accommodate any or some of them, they may be granted ownership of other lands available for distribution, at the option of the beneficiaries. Farmers already in place and those not accommodated in the distribution of privately-owned lands will be given preferential rights in the distribution of lands from the public domain. distribution Limit: No qualified beneficiary may own more than three (3) hec tares of agricultural land. Payment by Beneficiaries : •

Lands awarded pursuant to this Act shall be paid for by the beneficiaries to the LBP in thirty (30) annual amortiza tions at six percent (6%) interest per annum. The pay ments for the first three (3) years after the award may be at reduced amounts: Provided, That the first five (5) annual payments may not be more than five percent (5%) of the value of the annual gross production is paid. Should the scheduled annual payments after the fifth year exceed ten percent (10) of the annual gross production and the failure to produce accordingly is not due to the beneficiary's fault, the LBP may reduce the interest rate or reduce the principal obligation to make the payment affordable.

•

The LBP shall have a lien by way of mortgage on the land awarded to beneficiary and this mortgage may be foreclosed by the LBP for non-payment of an aggregate of three (3) an nual amortizations. The LBP shall advise the DAR of such proceedings and the latter shall subsequently award the for feited landholding to other qualified beneficiaries. A benefi ciary whose land as provided herein has been foreclosed shall thereafter be permanently disqualified from becoming a ben eficiary.

Transferabilitv of Awarded Lands : •

Lands acquired by beneficiaries under this Act may not be sold, transferred or conveyed except: a. through hereditary succession, b. to the government, c.

to the LBP, and

d. to other qualified beneficiaries. •

for a period often (10) years: Provided, however, That the children or the spouse of the transferor shall have a right to repurchase the land from the government or LBP within a period of two ( 2 ) years.

•

Due notice of the availability of the land shall be given by the LBP to the Barangay Agrarian Reform Committee (BARC) of the barangay where the land is situated. The

Provincial Agrarian Coordinating Committee (PARCCOM), as herein provided, shall, in turn, be given due notice thereof by the BARC. If the land has not yet been fully paid by the beneficiary, the right to the land may be transferred or conveyed, with prior approval of the DAR, to any heir of the beneficiary or to any other beneficiary who, as a condition for such transfer or conveyance, shall cultivate the land himself. Failing compliance herewith, the land shall be transferred to the LBP which shall give due notice of the availability of the land in the manner specified in the immediately preceding paragraph. In the event of such transfer to the LBP, the latter shall compensate the beneficiary in one lump sum for the amounts the latter has already paid, together with the value of improvements he has made on the land. Homelots and Farmlots for Members of Cooperatives : •

The individual members of the cooperatives or corporations shall be provided with homelots and small farmlots for their family use, to be taken from the land owned by the coopera tive or corporation.

Corporate Landowners : •

Corporate landowners may voluntarily transfer ownership over their agricultural landholdings to the Republic of the Philippines or to qualified beneficiaries, as they may agree upon, subject to confirmation by the DAR.

Upon certification by the DAR, corporations owning agricultural lands may give their qualified beneficiaries the right to purchase such proportion of the capital stock of the corporation that the agricultural land, actually devoted to agri cultural activities, bears in relation to the company's total assets, under such terms and conditions as may be agreed upon by them. In no case shall the compensation received by the workers at the time the shares of stocks are distributed be reduced. The same principle shall be applied to associations, with respect to their equity or participation.

• Corporations or associations which voluntarily divest a proportion of their capital stock, equity or participation in favor of their workers or other qualified beneficiaries under this section shall be deemed to have complied with the provisions of this Act: Provided, That the following conditions are complied with: a. In order to safeguard the right of beneficiaries who own shares of stocks to dividends and other financial benefits, the books of the corporation or association shall be sub ject to periodic audit by certified public accountants cho sen by the beneficiaries; b. Irrespective of the value of their equity in the corpora tion or association, the beneficiaries shall be assured of at least one (1) representative in the board of directors, or in a management or executive committee, if one ex ists, of the corporation or association;

c. Any shares acquired by such workers and beneficiaries shall have the same rights and features as all other shares; and d. Any transfer of shares of stocks by the original benefici aries shall be void ab initio unless said transaction is in favor of a qualified and registered beneficiary within the same corporation. Special Areas of Concern: (1) Subsistence Fishing. — Small fisher folk, including seaweed farmers, shall be assured of greater access to the utilization of water resources; (2) Logging and Mining concessions. — Subject to the require ment of a balanced ecology and conservation of water re sources, suitable areas, as determined by the Department of Environment and Natural Resources (DENR), in logging, mining and pasture areas, must be opened up for agrarian settlements whose beneficiaries will be required to under take reforestation and conservation of products methods. Subject to existing laws, rules and regulations, settlers and members of tribal communities must be allowed to enjoy and exploit the products of the forests other than timber within the logging concessions.

3) Sparsely Occupied Public Agricultural lands. — Sparsely occupied agricultural lands of the public domain will be surveyed, proclaimed and developed as farm settlements for qualified landless people based on an organized program to ensure their orderly and early development. Agricultural land allocations will be made for ideal family-sized farms. Pioneers and other settlers will be treated equally in every respect. Subject to the prior rights of qualified beneficiaries, uncultivated lands of the public domain shall be made available on a lease basis to interested and qualified parties. Parties who will engage in the development of capital-intensive, traditional or pioneering crops will be given priority. The lease period, which shall not be more than a total of fifty (50) years, shall be proportionate to the amount of investment and production goals of the lessee. A system of evaluation and audit will be instituted. (4) Idle, abandoned, foreclosed and sequestered lands. — Idle, abandoned, foreclosed and sequestered lands shall be planned for distribution as homelots and family-sized farm lots to actual occupants. If land area permits, other landless families will be accommodated in these lands. (5) Rural Women. — All qualified women members of the agri cultural labor force must be guaranteed and assured equal rights to ownership of the land, equal shares of the farm's produce, and representation in advisory or appropriate deci sion-making bodies. (6) Veterans and Retirees. — In accordance with Section 7 of Article XVI of the Constitution, landless war veterans and veterans of military campaigns, their surviving spouse and orphans, retirees of the Armed Forces of the Philippines (AFP) and the Integrated National Police (INP), returnees, surrenderees, and similar beneficiaries shall be given due consideration in the disposition of agricultural lands of the public domain. (7) Agriculture Graduates. — Graduates of agricultural schools who are landless shall be assisted by the government, through the DAR, in their desire to own and till agricultural lands. Administrative Adjudication Quasi-Judicial Powers of the PAR: • The DAR is hereby vested with primary jurisdiction to determine and adjudicate agrarian reform matters and shall have exclusive original jurisdiction over all matters involving the implementation of agrarian reform, except those falling under the exclusive jurisdiction of the Department of Agricultural (DA) and the Department of Environment and Natural Resources (DENR).

• It shall not be bound by technical rules of procedure and evidence but shall proceed to hear and decide all cases, disputes or controversies in a most expeditious manner, employing all reasonable means to ascertain the facts of every case in accordance with equity and the merits of the case. Toward this end, it shall adopt a uniform rule of procedure to achieve a just, expeditious and inexpensive determination of every action or proceeding before it. • It shall have the power to summon witnesses, administer oaths, take testimony, require submission of reports, compel the production of books and documents and answers to interrogatories and issue subpoena, and subpoena duces te-cum and to enforce its writs through sheriffs or other duly deputized officers. It shall likewise have the power to punish direct and indirect contempt in the same manner and subject to the same penalties as provided in the Rules of Court. • Representatives of farmer leaders shall be allowed to represent themselves, their fellow farmers or their organizations in any proceedings before the DAR: Provided, however, That when there are two or more representatives for any individual or group, the representatives should choose only one among themselves to represent such party or group before any DAR proceedings. • Notwithstanding an appeal to the Court of Appeals, the de cision of the DAR shall be immediately executory. • Finality of Determination. — Any case or controversy before it shall be decided within thirty (30) days after it is submit ted for resolution. Only one (1) motion for consideration shall

be allowed. Any order, ruling or decision shall be final after the lapse of fifteen (15) days from receipt of a copy thereof. Certiorari. —Any decision, order, award or ruling of the DAR on any agrarian dispute or on any matter pertaining to the application, implementation, enforcement, or interpretation of this Act and other pertinent laws on agrarian reform may be brought to the Court of Appeals by certiorari except as otherwise provided in this Act within fifteen (15) days from receipt of a copy thereof. The findings of fact of the DAR shall be final and conclusive, if based on substantial evidence. No Restraining Order or Preliminary Injunction. — No court in the Philippines shall have jurisdiction to issue any restraining order or writ of preliminary injunction against PARC or any of its duly authorized or designated agencies in any case, dispute or controversy arising from, necessary to, or in connection with the application, implementation, enforcement, or interpretation of this Act and other pertinent laws on agrarian reform. • Special Agrarian Court. — The Supreme Court shall des ignate at least one (1) branch of the Regional Trial Court (RTC) within each province to act as a Special Agrarian Court. • The Special Agrarian Courts shall have original and ex clusive jurisdiction over all petitions for the determi nation of just compensation to landowners, and the prosecution of all criminal offenses under this Act. The Rules of Court shall apply to all proceedings before the Special Agrarian Courts unless modified by this Act. • Appointment of Commissioners. — The Special Agrar ian Courts, upon their own initiative or at the instance of any of the parties, may appoint one or more commis sioners to examine, investigate and ascertain facts rel evant to the dispute, including the valuation of proper ties, and to file a written report thereof with the court. • Orders of the Special Agrarian Courts. — No order of the Special Agrarian Courts on any issue, question, matter or incident raised before them shall be elevated to the appellate courts until the hearing shall have been terminated and the case decided on the merits. • Appeals. —An appeal may be taken from the decision of the Special Agrarian Courts by filing a petition for review with the Court of Appeals fifteen (15) days from receipt of notice of the decision; otherwise, the decision shall become final. • An appeal from the decision of the Court of Appeals, or from any order, ruling or decision of DAR, as the case may be, shall be by a petition for review with the Su preme Court within a non-extendible period of fifteen (15) days from receipt of a copy of said decision. • Procedure on Review. — Review by the Court of Appeals or the Supreme Court, as the case may be, shall be gov erned by the Rules of Court. The Court of Appeals, how

ever, may require the parties to file simultaneous memo randa within a period of fifteen (15) days from notice, after which the case is deemed submitted for decision. • Preferential Attention in Courts. —All courts in the Philippines, both trial and appellate, are hereby enjoined to give preferential attention to all cases arising from or in connection with the implementation of the provisions of this Act.