I. Introduction
The Labor Code of the Philippines (Presidential Decree No. 442, as amended) is the principal statute governing employment relations in the private sector. Enacted on 1 May 1974 and effective six months thereafter, it has undergone numerous amendments through Republic Acts, Department Orders, and Supreme Court jurisprudence. Title II of Book Five comprehensively enumerates the minimum rights of employees (a term that excludes managerial employees in certain contexts and government personnel covered by separate laws). These rights are non-waivable, form part of the employment contract by operation of law, and bind all employers regardless of capitalization, industry, or the presence of a collective bargaining agreement (CBA) that cannot stipulate below the floor of statutory benefits.
This article exhaustively catalogues every basic right found in the Labor Code proper, its Implementing Rules and Regulations (IRR) issued by the Department of Labor and Employment (DOLE), and settled jurisprudence that has crystallized statutory intent. Rights arising from special laws (e.g., Solo Parents’ Welfare Act, Magna Carta of Women, Anti-VAWC Law) are noted only insofar as they intersect with the Code.
II. Security of Tenure (Arts. 294–295)
Permanent employment after probation
- Probationary period shall not exceed six (6) months unless a longer period is established by company policy or CBA and justified by the nature of the work (Art. 294).
- Upon satisfactory completion, the employee becomes regular and may be dismissed only for just causes (Art. 295) or authorized causes (Art. 298) with due process.
Just causes (Art. 295)
a. Serious misconduct or willful disobedience
b. Gross and habitual neglect of duties
c. Fraud or willful breach of trust
d. Commission of crime against employer or immediate family
e. Analogous causesAuthorized causes (Art. 298)
a. Installation of labor-saving devices
b. Redundancy
c. Retrenchment to prevent losses
d. Closures/cessation of operation
e. Disease (incurable, prejudicial to employee or co-workers)Due process requirements
- Twin-notice rule: written notice of charges + ample opportunity to be heard + written notice of decision.
- Separation pay for authorized causes:
- 1 month salary or ½ month per year of service, whichever is higher (except closure due to serious losses).
- Backwages from illegal dismissal until actual reinstatement or finality of judgment.
III. Minimum Wage and Wage-Related Protections
Regional Tripartite Wages and Productivity Boards (RTWPB) fix floor wages per region/industry (Art. 99, 124).
- No employer may pay less than the applicable rate.
- 13th-month pay (PD 851): 1/12 of total basic salary within a calendar year, payable not later than 24 December.
Wage distortion correction (Art. 124 IRR):
- When wage order implementation compresses differentials, employer and union must negotiate correction; absent agreement, compulsory arbitration via NLRC.
Non-diminution of benefits (Art. 100):
- Voluntary employer practice ripened into company policy cannot be unilaterally withdrawn.
Facilities vs. supplements (Art. 97 IRR):
- Facilities (e.g., housing, meals) deductible from wage only if customarily furnished and accepted in writing.
- Supplements (e.g., profit-sharing, COLA in EO 181) not deductible.
IV. Hours of Work and Overtime (Book Three, Title I)
Normal hours: 8 hours/day, exclusive of meal break of not less than 60 minutes (Art. 83).
- Compressed workweek permissible if mutually agreed and approved by DOLE (DOLE Explanatory Bulletin 2011).
Overtime pay:
- 25 % of hourly rate on ordinary days
- 30 % on rest days/special holidays
- 50 % on regular holidays
Night shift differential: ≥10 % of hourly rate for work between 10:00 p.m. and 6:00 a.m. (Art. 86).
Undertime not offset by overtime (Art. 88): employer cannot deduct undertime from overtime pay.
Emergency overtime (Art. 89): allowed when:
a. National emergency
b. Urgent work to prevent loss
c. Completion of work started before cutoff
d. Imminent danger to life/property
V. Weekly Rest Day and Holiday Pay (Book Three, Title II)
Rest day: ≥24 consecutive hours after every 6 consecutive workdays (Art. 91).
- Premium pay if work rendered: +30 % on ordinary rest day; +50 % if also a holiday.
Regular holidays (12 enumerated + local): 200 % of daily rate for work rendered.
- Special non-working days (variable): +30 % for work; +50 % if on employee’s rest day.
Service incentive leave (SIL): 5 days with pay per year after 12 months of service (Art. 95).
- Convertible to cash if unused; pro-rated for less than 12 months.
VI. Leave Benefits
Maternity leave: 105 days (RA 11210) for live birth; 60 days for miscarriage; +15 days for solo parents.
- Full pay from employer + SSS reimbursement.
Paternity leave: 7 days for first four deliveries (RA 8187).
VAWC leave: 10 days with pay for victims (RA 9262).
Solo parent leave: 7 days non-cumulative (RA 8972).
Special leave for women: 2 months with pay after surgery for gynecological disorders (RA 9710).
VII. Retirement and Separation Benefits
Optional retirement: age 60–65 as per CBA or policy (Art. 302).
- Mandatory retirement: 65 unless higher age stipulated.
Retirement pay:
- ½ month salary per year of service (minimum).
- ½ month = 15 days + 1/12 of 13th-month + cash equivalent of 5 days SIL.
Tax-free up to the amount under RA 4917; excess taxable.
VIII. Health, Safety, and Social Security
Occupational Safety and Health Standards (OSHS): DOLE Department Order No. 198-18.
- Free annual medical exam for employees exposed to hazards.
- Safety officer, first-aid medicines, emergency facilities.
SSS, PhilHealth, Pag-IBIG contributions: mandatory; employer absorbs employer share; non-remittance is criminal.
Employees’ Compensation Program (Title II, Book Four):
- Work-connected disability/death: income + medical + rehabilitation benefits; no fault required.
IX. Protection Against Discrimination and Harassment
Equal work, equal pay (Art. 135); no gender, age, religion, ethnicity discrimination (Art. 3).
- Sexual harassment punishable under RA 7877 and company policy; DOLE has jurisdiction over employer liability.
Anti-Age Discrimination in Employment (RA 10911).
- Prohibits age ceilings in job ads unless BFOQ.
X. Union Rights and Collective Bargaining
Self-organization (Art. 252): right to form, join, or assist labor organizations without employer interference.
- Concerted activities protected: strikes, picketing, lockouts (subject to procedural requirements).
Collective bargaining duty (Art. 261): negotiate in good faith; refusal is ULP.
Check-off and union security clauses (Art. 116–117) valid if not discriminatory.
XI. Termination Safeguards for Special Classes
- Security of tenure for pregnant employees (Art. 135 IRR): dismissal for pregnancy illegal.
- Night workers (RA 10151): transfer to day shift upon pregnancy certification.
- Apprentices/learners (TESDA regulations): dismissal only for cause or expiration of agreement.
XII. Enforcement Mechanisms
DOLE Regional Offices: inspection, mediation-conciliation (SEnA).
NLRC: original jurisdiction over money claims ≥PHP 5,000 + illegal dismissal.
Prescription:
- Money claims: 3 years from accrual.
- Illegal dismissal: 4 years from dismissal.
Solidary liability of corporate officers (Art. 109) for unpaid wages/benefits if acting with malice or bad faith.
XIII. Conclusion
The Philippine Labor Code establishes a floor of rights that is mandatory, non-waivable, and constitutionally protected (1987 Constitution, Art. XIII, Sec. 3). Any stipulation in an individual contract or CBA that diminishes these rights is void unless it grants more favorable terms. Employers who violate these provisions expose themselves to backwages, damages, reinstatement, 13th-month differentials, moral/exemplary damages, and criminal prosecution for certain offenses (e.g., non-remittance of SSS contributions). Employees, in turn, must assert these rights within the prescriptive periods through DOLE, NLRC, or regular courts. Knowledge of these basic entitlements remains the first line of defense in preserving dignity and fairness in the Philippine workplace.