Labor Law - Kingdom Polaris Group 5 - Conditions of Employment
Labor Law - Kingdom Polaris Group 5 - Conditions of Employment
Conditions of
Employment
Team 4
Summary
Hours of Work
The foundation of workers’ rights concerning working hours is laid out in this chapter. The law establishes the normal working hours as eight
(8) hours per day, a standard that applies to most workers in the private sector. This provision ensures that employees are not overworked,
promoting a balance between work and personal life. However, flexibility exists in the form of overtime work, which is allowed but must be
compensated fairly. Workers who exceed eight hours are entitled to at least 25% more than their regular hourly wage, reflecting the law's
intention to deter employers from excessively long workdays while rewarding employees for the extra effort.
The guidelines on hours worked include all the time an employee is required to be on duty or at a workplace. This includes situations where
employees are waiting or on standby for work, ensuring that their time is valued and properly compensated.
(a) In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or
calamity to prevent loss of life and property, or imminent danger to public safety;
(b) In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer would
otherwise suffer;
(c) In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to
other measures;
(d) To prevent loss or damage to perishable goods;
(e) Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the
employer; and
(f) Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor Pardello
Article 93. COMPENSATION Comments:
FOR REST DAY, SUNDAY OR 1. HOLIDAY, GENERALLY
Sianda
ARTICLE 95. RIGHT TO ARTICLE 96. SERVICE
SERVICE INCENTIVE LEAVE CHARGES
Did you know? Employees with at least one year of service are entitled
to 5 days of paid Service Incentive Leave (SIL) annually, which can be Did You Know?Service charges collected by hotels and restaurants are
converted to cash if unused. Sick leave and vacation leave are distributed 85% to employees and 15% to management. If service
voluntary benefits, not required by law. charges are abolished, employees’ average share from the last 12
months should be integrated into their wages.
Paternity Leave:
Duration: 7 days with full pay.
Who Qualifies: Married male employees in both private and public sectors.
Title II WAGES
ARTICLE 97. “WAGE” AND
Maternity Leave:
Applies to: Female employees, with benefits outlined in Article 131 of the Labor
“SALARY”
Code.
Parental (Solo Parent) Leave:
Law: Republic Act No. 8972 (Solo Parents’ Welfare Act of 2000).
Duration: 7 days of leave.
1. Wages - Remuneration for work done, paid daily, weekly, or monthly.
Who Qualifies: Solo parents as defined by law.
Salary - A fixed amount for higher-level employment, often paid monthly.
Non-Cumulative: Unused leave cannot be carried over to the next year.
Other Leaves for Female Employees:
2. Facilities - Basic needs provided by employers, deductible from wages (e.g.,
Battered Woman Leave: Special leave for women under certain circumstances.
uniform).
60-Day Special Leave: Available under the Magna Carta of Women for female
Supplements Additional benefits (e.g., bonuses), not deductible.
employees.
Sianda
Chapter II MINIMUM WAGE RATES
ART. 99. REGIONAL MINIMUM
WAGES
Did you know that Article 99 states that minimum wage rates for both · Household or Domestic Helpers: Includes family drivers and those in personal
agricultural and non-agricultural workers vary by region and are set by the service roles.
Regional Tripartite Wages and Productivity Boards? Employers cannot use · Homeworkers: Engaged in needlework.
financial difficulties as an excuse for not paying minimum wages. · Registered Cottage Industries: Workers in home-based cottage industries
registered with the National Cottage Industries and Development Authority.
Regional Minimum Wage Rates
· Registered Cooperatives: May be exempted if recommended by the Bureau of
Minimum wage rates vary by region to account for differing economic
Cooperative
conditions and cost of living across various areas. This regionalization allows for
Development and approved by the Secretary of Labor, subject to certain
more accurate and fair wage adjustments that reflect local economic realities,
conditions.
ensuring that wages are adequate for the specific conditions in each region.
Ability to Pay Immaterial Additional Exemptions
· Employers cannot use financial difficulties as an excuse for not paying · Retail and Service Establishments: Retail/service businesses regularly
minimum wages. The obligation to pay minimum wages is statutory and must employing not more than ten workers may apply for exemption from
be met regardless of the employer’s financial condition. minimum wage requirements.
Employees’ Right to Claim Wage Differences · Other Exemptions: May include distressed establishments, new businesses, and
· Employees who receive wages below the legal minimum are entitled to those affected by natural calamities, subject to guidelines from the National
claim the difference, even if they initially accepted the lower pay without Wage and Productivity Commission (NWPC).
objection. This right cannot be waived.
Exemptions from Minimum Wage Law
Sianda
ART. 100. PROHIBITION AGAINST ELIMINATION OR DIMINUTION OF
BENEFITS
Did you know that an employer is not allowed to reduce or stop offering non-basic
benefits to its workers through contract or company practice. Employee benefits
under
Article 100 of the Labor Code are considered company practice and cannot be
unilaterally withdrawn by the employer if supported by the following requisites:
1) the grant of the benefit is founded on a policy or has ripened into a practice over
a long period;
2) the practice is consistent and deliberate;
3) the practice is not due to error in the construction or application of a doubtful or
difficult question of law; and
4) the diminution or discontinuance is done unilaterally by the employer
PULALON
EXCEPTIONS TO THE NONDIMINUTION RULE
Jurisprudence recognizes exceptions to the application of
Article 100, as illustrated in Summation: Benefits Payable to Piece-Rate Workers
the following cases, indicating On the basis, therefore, of existing labor regulations and
1) correction of error; more recent jurisprudence,
2) negotiated benefits;
piece-rate workers are entitled to the benefits, as follows:
3) wage order compliance;
4) benefits on reimbursement basis; 1. the applicable statutory minimum daily rate
5) reclassification of position; 2. yearly service incentive leave of five (5) days with pay
6) contingent benefits or conditional bonus; and 3. night shift differential pay
7) productivity incentives. 4. holiday pay
ART. 101. PAYMENT BY RESULTS
5. meal and rest periods
Did you know that Article 101 categorizes workers paid by results,
6. overtime pay (conditional)
supervised or unsupervised. Piece-rate workers are supervised,
especially in company premises, while pakiaw and takay workers 7. premium pay (conditional)
are unsupervised. All three types have similar pay rates based on 8. 13 th -month pay
work quantity. In the absence of wage rates based on time and 9. Other benefits granted by law, by individual or collective
motion studies, piece-rate workers’ wages must be based on the agreement orcompany policy or practice.
daily minimum wage determined by the Regional Tripartite
Wages and Productivity Commission. Article 101 of the Labor
Code ensures fair and reasonable wage payments, and if
prescribed, ordinary minimum wage rates from the Regional
PULALON
Tripartite Wages and Productivity Boards should apply.
ART. 105. DIRECT PAYMENT OF WAGES
Did you know that wages should be paid directly to the workers,
except in cases of force majeure or special circumstances
ART. 102. FORMS OF PAYMENT determined by the Secretary of Labor. If a deceased worker dies,
Did you know that employers are prohibited from paying the employer may pay the wages to the heirs without intestate
employee wages using promissory notes, vouchers, coupons, proceedings. The claimants must execute an affidavit attesting to
tokens, tickets, or other non-legal tenders, except when their relationship with the deceased and their heir status. The
customary or necessary due to special circumstances, as
employer then makes payment through the Secretary of Labor or
specified in regulations or collective bargaining agreements.
their representatives.
ART. 103. TIME OF PAYMENT
Did you know that Article 103 of the Labor Code mandates
ART. 104. PLACE OF PAYMENT
employers to pay workers once every two weeks or twice a
Did you know that payment for wages should be made at or near
month. Employee paydays should fall after every 16 days. But if
the workplace, except in emergencies or when free transportation is
employers can’t release salaries due to issues beyond their
provided. Employees should not be paid in bars, clubs, or places
control, they must remit them afterward. More importantly,
where money is played, except for those employed in those places.
companies must follow the prescribed frequency for paying
Private establishments with 25 or more employees and within a
salaries.
kilometer radius of a bank can pay wages and benefits through
these banks, with certification from the bank upon request.
Automated teller machines (ATM) payment is allowed under a labor
advisory dated November 25, 1996.
PULALON
ART. 109. SOLIDARY LIABILITY ART. 109. SOLIDARY LIABILITY
The provisions of existing laws to the contrary (a) Safe and healthful working conditions;
notwithstanding, every. Employer or indirect employer (b) Labor standards such as but not limited to service incentive leave, rest days, overtime pay,
shall be held responsible with his contractor or holiday pay, 13th month pay and separation pay as may be provided in the Service
Agreement or under the Labor Code;
subcontractor for any violation of any provision of this
(c) Retirement benefits under the SSS or retirement plans of the contractor, if there is any;
Code. For purposes of determining the extent of their
(d) Social security and welfare benefits;
civil liability under this Chapter, they shall be considered (e) Self-organizations, collective bargaining and peaceful concerted activities; and
as direct employers. (f) Security of tenure
1. CONTRACTING AND SUBCONTRACTING IN GENERAL
2. FIRST SET OF PROHIBITION: LABOR-ONLY ART. 110. WORKER PREFERENCE IN CASE OF BANKRUPTCY
CONTRACTING (SECTION 6 OF D.O. NO. 18-A)
In the event of bankruptcy or liquidation of an employer’s business, his workers shall
3. SECOND SET OF PROHIBITIONS: ARRANGEMENTS
enjoy first preference as regards their wages and other monetary claims, any
THAT VIOLATE PUBLIC POLICY (SECTION 7 OF D.O. NO.
18-A) provisions of law to the contrary notwithstanding. Such unpaid wages and monetary
4. EXTENT OF EMPLOYER’S LIABILITY IN INVALID claims shall be paid in full before claims of the government and other creditors may
CONTRACTING AND VIOLATION OF OTHER be paid.
PROHIBITIONS
5. LEGITIMATE CONTRACTING: INDEPENDENT
CONTRACTOR/JOB CONTRACTING
1. PREFERENCE OF WORKERS’ MONEY CLAIM
6. A MANPOWER COMPANY MAY BE A LABOR-ONLY The Revised Rules and Regulations Implementing the Labor Code, as amended, provides:
CONTRACTOR IN ONE CASE BUT AN INDEPENDENT “Unpaid wages earned by the employees before the declaration of bankruptcy or judicial
CONTRACTOR IN ANOTHER liquidation of the employer’s business shall be given first preference and shall be paid in full
7. EXTENT OF PRINCIPAL’S LIABILITY IN LEGITIMATE before other creditors may establish any claim to a share in the assets of the employer.
CONTRACTING
8. RIGHTS OF CONTRACTOR’S EMPLOYEES
SANTILLAN
Prohibitions Regarding Wages
ART. 112. NON INTERFERENCE IN Article 113. Wage Deduction
DISPOSAL OF WAGES Did you know that Article 113 protects workers from
No employer shall limit otherwise interfere with the unfair deductions from their salaries.
freedom of any employee to dispose of his wages. Art. 114 Deposits of Loss or Damage and Art. 115
Did you know that in the Labor Code provisions on Limitations
prohibitions regarding wages, there are articles of the Did you know that Art. 114 and 115 allows employers to
require employees to make deposits for the loss or
Civil Code similarly protect earned wages. These are the
damage of company property.
following Articles that similarly protects earned wages: DEDUCTION FOR LOSS OR DAMAGE
Article 1705. The laborer's wages shall be paid in legal According to the implementing unless, payments for lost or damaged
currency. Article 1706. Withholding of the wages, except equipment is deductible from the employee's salary if four conditions
for a debt dur, shall not be made by the employer. are met, namely:
(1) the employee is clearly shown to be responsible for the loss or
Article 1707. The laborer's wages shall be a lien on the
damage:
goods manufactured or the work done.
Article 1708. The laborer's wages shall not he subject to (2) the employee is given ample opportunity to show cause why
execution or attachment, except for debts incurred for deduction should not be made;
food, shelter, clothing and medical attendance.
(3) the amount of the deduction is fair and reasonable and shall not
Article 1709. The employer shall neither seize nor retain
exceed the actual loss or damage, and
any tool or other articles belonging to the laborer. (4) the deduction from the employee's wage does not exceed 20
percent of the employee's wages in a week. QUESTO
ART. 119 FALSE REPORTING RECORDS AN EMPLOYER MUST KEEP
Every employer shall keep a payroll wherein the following information
Did you know that Article 119 of the Labor and data shall be individually shown:
Code prohibits employers from making false 1. Length of time to be paid:
reports or providing misleading information 2. Rate of pay per month, week, day or hours, piece, etc.;
3. Amount due for regular work;
about wages, working conditions, or employee 4. Amount due for overtime work:
benefits to government agencies. 5. Deductions made from the wages, and
6. Amount actually paid.
RECORDS AN EMPLOYER MUST KEEP CHAPTER V
Every employer shall keep a payroll WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION
ART. 120. CREATION OF NATIONAL WAGES AND PRODUCTIVITY
wherein the following information and
COMMISSION
data shall be individually shown: Did you know that Article 120 of the Labor Code establishes the National Wages and
Productivity Commission (NWPC). Its purpose is to set policies, guidelines, and wage
levels to
1. Length of time to be paid: ensure fair wages and improve productivity in the country.
2. Rate of pay per month, week, day or
ART. 125 FREEDOM TO BARGAIN
hours, piece, etc.; Did you know that Art. 125 gives employees the opportunity to make
3. Amount due for regular work; demands and negotiate things regarding to their work.
ART. 126 PROHIBITIONS AGAINST INJUNCTION
4. Amount due for overtime work:
Did you know that Article 126 can help those employees who wants to issue
5. Deductions made from the wages, things regarding to their jobs without legal interference.
and ART 127.NON-DIMINUTION OF BENEFITS
Did you know that Article 127 states that the benefits of an employee can be
6. Amount actually paid.
maintained even if new policies or changes occur.
QUESTO
TITLE III WORKING CONDITIONS FOR Did you know that ART.130 (132) FACILITIES FOR
SPECIAL GROUP OF EMPLOYEES WOMEN The secretary of labor shall establish standards
that
Did you know that Article 129 of the Labor Code of the
Philippines grants the Department of Labor and will insure the safety and health of women employees.
Employment (DOLE) and its authorized hearing officers the Did you know that in ART.131( 133) MATERNITY
authority to hear and decide cases involving the LEAVES BENEFITS Every employer shall grant to any
recovery of wages, simple money claims, and other benefits.
pregnant
This article is a crucial component of the Philippine
labor laws, ensuring that workers are protected and their rights woman employee, who has rendered an aggregate
are upheld. service of at least six (6) months for the last twelve (12)
months,
Chapter I EMPLOYMENT OF WOMEN maternity leave of at least (2) weeks prior to the expected
Did you know that in Article 130(132) of the Labor Code of the
Philippines, as amended, prohibits the employment of women,
date of delivery and another four (4) weeks after normal
regardless of age, during nightwork. This prohibition is enforced to delivery or abortion with fully pay based on her regular or
safeguard the health and well-being of women, particularly in light average weekly wages.
of the potential risks associated with night shift work. However, RA NO. 9710 this law, known as the “magna carta of
There are certain exceptions to this rule, which are outlined in Article women” provides that as a policy, the state ensures the
131(133) of the Labor Code. These exceptions typically involve substantive equality of men and women and that “the
industries or occupations where nightwork is essential, such as those state realizes that equality of men and women entails the
in the healthcare, telecommunications, and public service sectors.
abolition of the unequal structures and practice that
However, even in these cases, specific conditions and safeguards
perpetuate discrimination, and inequality”
must be met to protect the health and safety of female workers SORIANO
Did you know that in ART.132 (134) FAMILY PLANNING Did you know that ART. 137(139) MINIMUM EMPLOYABLE AGE
SERVICES, INCENTIVES FOR FAMILY PLANNING
a) Establishments which are required by law to maintain a a) No child between fifteen (15) years of age shall be employed, except when he works
clinic or infirmary shall provide free family planning directly under the sole
responsibility of his parents or guardian, and his employment does not in any way
services to their employees which shall include but not be
interfere with his schooling
limited to, the application or use of contraceptive
b) Any person between fifteen (15)and eighteen (18) years of age may be employed
pills and intrauterine devices
for such number of hours
b) In coordination with other agencies of the government
and such periods of the day as determined by the secretary of labor in appropriate
engaged in the promotion of family planning, the regulations
Department of Labor shall develop and prescribe incentive c) The foregoing provisions shall in no case allow the employment of a person below
bonus schemes to encourage family planning eighteen (18) years of age in an undertaking which is hazardous or deleterious in
among female workers in any establishment or enterprise. nature as determined by the Secretary of Labor
Did you know ART. 133(135) DISCRIMINATION PROHIBITED it
shall be unlawful for any employer to discriminate against any Did you know that ART.138( 140) PROHIBITION AGAINST
woman employee with respect to terms and conditions of CHILD DISCRIMINATION No employer shall discriminate
employment solely on account of her sex. against any person in respect to terms and conditions of
Did you know that ART. 134(136) STIPULATION AGAINST
employment on account of his age
MARRIAGE It shall be unlawful for an employer to require as a
condition of employment or continuation of employment that a HAZARDOUS WORK- The implementing rules explain that
woman employee shall not get married, or to stipulate expressly any person, regardless of sex, between ages 15 and 18 may be
or tacitly that upon getting married a woman employee shall be
employed in any nonhazardous work. It follows that in any
deemed resigned or separated, or to actually dismiss, discharge,
discriminate, or otherwise prejudice a woman employee merely by hazardous work, the employable age is 18 and up.
reason of her marriage
SORIANO
CHAPTER III EMPLOYMENT OF HOUSEHELPERS
Did you know that ART.139( 141) COVERAGE this chapter shall apply to all
persons rendering services in household for compensation. “domestic or Did you know ART. 144(146) OPPORTUNITY FOR EDUCATION If the
household service” shall mean services in the employer’s home which is usually househelpers is under the age eighteen (18) years, the employer shall
necessary or desirable for the maintenance and enjoyment thereof and give him or her an opportunity for at least elementary education. The
includes ministering to the personal comfort and convenience of the members
cost such
of the employer’s household, including services of family drivers
Did you know that ART. 140(142) CONTRACT OF DOMESTIC SERVICE the education shall be part of the househelper’s compensation, unless there
original contract of domestic service shall not last for more than two (2) years is a stipulation to the contrary
but it may b renewed for such periods as may be agreed upon by the parties. Did you know ART.145( 147 )TREATMENT OF HOUSEHELPERS the
Did you know that ART. 141(143) MINIMUM WAGE employer shall treat the househelper in just and human manner. In no
A) . House helpers shall be paid the following minimum wage rates: case shall physical violence be used upon the househelper.
1) Eight hundred pesos (P800.00) a month for house helpers in manila, Did you know that ART.146(148) BOARD, LODGING, AND MEDICAL
Quezon, and Caloocan cities and the municipalities of Makati, san Juan, ATTENDANCE the employer shall furnish the househelper free of
mandaluyong, muntinlupa, navotas, malabon, paranaque, las pinas, pasig, charge suitable and sanitary living quarters as well as adequate food
marikina, valenzuela, taguig, nd pateros in metro manila and in highly
and medical attendance
urbanized cities
Did you know that ART. 147(149( INDEMNITY FOR UNJUST
2) Six hundred fifty pesos (P650.00) a month for those in other chartered
cities and first class municipalities TERMINATION OF SERVICES if the period of household service fixed,
3) Five hundred fifty (P550.00) a month for those in other municipalities neither the employer nor the househelper may terminate the contract
4)Provided, That the employers shall review the employment contracts of before the expiration of the term, except for a just cause. If the
their househelpers every three (3) househelper is unjustly dismissed, he or she shall be paid the
years with the end in view of improving the terms and conditions thereof. compensation already earned plus that for fifteen(15) days by way of
5) Provided, further, That those house helpers who are receiving at least One
indemnity.if the househelper leaves without justifiable reason, he or she
thousand pesos (P1,000.00) shall be covered by the Social Security System
shall forfeit any unpaid salary due him or her exceeding fifteen (15) days
(SSS) and be entitled to all the benefits provided thereunder. (As amended
by Republic Act No. 7655, August 19, 1993)
SORIANO
Did you know that ART.148(150) SERVICE OF CHAPTER IV EMPLOYMENT OF HOMEWORKERS
TERMINATION NOTICE if the duration of the household
service is not determined either in stipulation or by the nature Did you know ART. 151 (153) REGULAION OF INDUSTRIAL
of the service, the employer or the househelper may give HOMEWORKERS the employment of industrial homeworkers
notice to put an end to the relationship five (5) days before and field personnel shall be regulated y the government
the intended termination of the service through appropriate regulations issued by the secretary of
Did you know ART. 149(151) EMPLOYMENT labor to ensure the general welfare and protection of
CERTIFICATION upon the severance of the household homeworkers and field personnel and the industries employing
service relation, the employer shall give the househelper a them.
written statement of the nature and duration of the service Did you know ART. 153 (155) DISTRIBUTION OF
and his or her efficiency and conduct as househelper
HOMEWORK for purposes of this chapter, the “employer “of
Did you know ART.150( 152) E MPLOYMENT RECORDS
homeworker includes any person, natural or artificial, who for
the employer may keep such records as he may deem
his account or benefit, or on behalf of any person residing
necessary to reflect the actual terms and conditions of
employment of his househelpers, which the latter shall outside the country, directly or indirectly or through any
authenticate by signature or thumbmark upon request of the employee, agent, contractor, subcontractoror any other person
employer INDUSTRIAL WORKER is a system of production under which
RA NO. 10361 (batas kasambahay) entitles a domestic work o an employer or contractor is carried out by a
worker to “an aggregate daily rest period of eight (8) hours homeworker at his home. Materials or may not be furnished by
per day.the kasambahay law grants a domestic worker “at the employer or contractor.
least twenty four (24) consecutive hours of rest in a week.
SORIANO
CHAPTER IV EMPLOYMENT OF HOMEWORKERS
Did you know ART. 154 COVERAGE this chapter shall apply to all persons, who shall be employed or permitted or
suffered to work at night, except those employed in agriculture, stock fishing, maritime transport and inland
navigation, during a period of not less than seven (7) consecutive hours, including the interval from midnight to
five o’clock in the morning, to be determined by the secretary of labor and employment, after consulting the
workers representatives/labor organizations and employers
Did you know ART. 155 HEALTH ASSESSMENT at their request, workers shall have the right to undergo a health
assessment without charge and to receive advice on how to reduce or avoid health problems associated with their
work.
Did you know ART.156 MANDATORY FACILITIES suitable first-aid facilities shall be made available for workers
performing night work, including arrangements where such workers, where necessary, can be taken immediately
to a place for appropriate treatment. The employers are likewise required to provide safe and healthful working
conditions and adequate or reasonable facilities such as sleeping or resting quarters in the establishment and
transportation from the work premises to the nearest point of their residence subject to exceptions and guidelines
to be provides by the DOLE
Did you know ART.157 TRANSFER night workers who are certified as unfit for night work, due to health reasons,
shall be transferred, whenever practicable, to a similar job for which they are fit to work. If such transfer to a
similar job is not practicable, these workers shall be granted the same benefits as other workers who are unable to
work, or to secure employment during such period. A night worker certified as temporarily unfit for night work
shall be given the same protection against dismissal or notice of dismissal as other workers who are prevented
from working for reasons of health. SORIANO
Did you know ART. 158 WOMEN NIGHT WORKERS measures shall be taken to ensure that an alternative to night
work is available to women workers who would otherwise be called upon to perform such work:
A) . before and after childbirth, for a period of at least sixteen (16) weeks, which shall be divided between the
time before and after childbirth
B) For additional periods, in respect of which a medical certificate is produced stating that said additional periods
are necessary for the health of the mother or child
1) . during pregnancy
2) During a specified time beyond the period, after childbirth is fixed pursuant to subparagraph above, the length
shall be determined by the DOLE after consulting the labor organizations and employers.
Did you know ART. 159 COMPENSATION the compensation for night workers in the form of working time, pay or
similar benefits shall recognize the exceptional nature of night work
Did you know ART. 160 SOCIAL SERVICES appropriate social services shall be provided for night workers and,
where necessary, for workers performing night work
Did you know ART. 161 NIGHT WORK SCHEDULE before introducing schedules requiring the services of night
workers, the employer shall consult the workers representatives/labor organizations concerned on the details of
such schedules and the forms of organizations of night work that are best adapted to the establishment and its
personnel, as well as on the occupational health measures and social services which are required. In
establishments employing night workers, consultation shall take place regularly
SORIANO
Case Study
CELIAR. ATIENZA, PETITIONER, VS. NOEL SACRAMENTO SALUTA, RESPONDENT.
The driver, Noel Sacramento Saluta, sued Celia R. Atienza and CRV Corporation for illegal dismissal, non-payment of wages, and
other benefits. The employer claimed that the driver abandoned his job, while the driver alleged that he was verbally terminated.The
case went through various legal proceedings, with the National Labor Relations Commission (NLRC) and the Court of Appeals (CA)
ruling in favor of the driver. The CA found that the employer failed to prove that the driver was not illegally terminated and that the
driver's reason for absence was justified.Ultimately, the CA affirmed the NLRC's decision, awarding the driver back wages, separation
pay, and other benefits.
The petitioner argues that the respondent was her personal driver, while the respondent claims he was a company driver for CRV
Corporation. The petitioner also contends that the respondent abandoned his job, while the respondent asserts he was illegally
terminated.The petitioner presented evidence to support her claims, such as the absence of an employment contract and the fact that
she paid the respondent's salary. The respondent, however, countered that he received his salary through the company's ATM and that
he was not given due process before his dismissal.
The CA ruled in favor of the respondent, finding that he was illegally terminated and entitled to various benefits. The petitioner is now
appealing the CA's decision, arguing that the respondent failed to prove his employment status and that his dismissal was justified.The
burden of proof lies with the employee in an illegal dismissal case. The respondent, claiming to be an employee, must provide
substantial evidence to prove the employer-employee relationship. However, the respondent failed to present sufficient evidence, such
as an employment contract or pay slips, to establish this relationship.
Case Study
While the NLRC and CA placed the burden of proof on the employer, the Court disagrees. The respondent, as the claimant, must prove his
employment status. The respondent's failure to do so leads the Court to conclude that he was the petitioner's personal driver, not a company
employee.The respondent claimed he was verbally terminated, but his claim was not supported by evidence. The petitioner denied the termination,
stating that the respondent simply stopped working.Without clear and convincing evidence of dismissal, the respondent's claim of illegal dismissal
cannot be upheld. His allegations are insufficient and do not constitute substantial evidence.
Abandonment requires a deliberate intention to quit. The employer must prove this intention, but the evidence here does not show it. The
respondent's actions, such as filing a complaint for illegal dismissal, indicate that he did not intend to quit his job. Therefore, the claim of
abandonment is not valid.
The Civil Code provisions apply to family drivers, and the respondent is not entitled to wage differentials, holiday pay, 13th month pay, or service
incentive leave. These benefits are not applicable to family drivers under the Labor Code. Additionally, since there was neither dismissal nor
abandonment, neither party owes the other any indemnity.The Court of Appeals found the petitioner liable for illegal dismissal and ordered her
to pay the respondent back wages, separation pay, and other benefits. CRV Corporation was also found liable, but it did not appeal the
decision.The Court emphasizes that a reversal of a judgment on appeal is binding only on the parties to the appeal. CRV Corporation, not being
a party to the appeal, is not affected by the reversal.The Court also discusses the separate legal personalities of corporations and their
shareholders. A corporation's debts are not the debts of its shareholders. In this case, CRV Corporation's liability is not the petitioner's liability.
The petitioner's appeal cannot benefit CRV Corporation because the petitioner did not represent the corporation in the lawsuit and there is no
evidence that she was authorized to do so.Therefore, the Court grants the petitioner's appeal and reverses the Court of Appeals' decision only
insofar as it relates to CRV Corporation. The petitioner remains liable for the respondent's unpaid wages.
Thank You