Common Labor Code Violations and Employee Rights in the Philippines

The relationship between an employer and an employee is not merely a private contract; it is a matter of public interest protected by the 1987 Philippine Constitution and governed primarily by Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines.

In the Philippine legal landscape, the "Protection to Labor" clause ensures that in cases of doubt, labor laws and rules are interpreted in favor of the working man. Despite these protections, violations remain prevalent. Understanding these rights is the first step toward ensuring fair treatment in the workplace.


I. Fundamental Employee Rights

Every Filipino worker, whether regular, probationary, or contractual, is entitled to a set of statutory benefits and rights:

  1. Security of Tenure: An employee cannot be dismissed except for a just or authorized cause and only after due process.
  2. Hours of Work: The normal hours of work shall not exceed eight (8) hours a day.
  3. Rest Periods: Employees are entitled to a cumulative 60-minute meal break (unpaid) and short rest periods or "coffee breaks" (paid).
  4. Weekly Rest Day: Every employee is entitled to a rest period of not less than 24 consecutive hours after every six consecutive normal workdays.
  5. Wage-Related Benefits: This includes the applicable Minimum Wage, 13th Month Pay, Holiday Pay, and Overtime Pay.

II. Common Labor Code Violations

1. Non-Payment or Underpayment of Wages

The Regional Tripartite Wages and Productivity Board (RTWPB) sets the minimum wage per region. Paying below this floor is a direct violation. Furthermore, the 13th Month Pay Law (P.D. 851) mandates that all rank-and-file employees must receive this bonus on or before December 24, provided they worked for at least one month during the calendar year.

2. Misclassification of Employment (The "Endo" Practice)

"Endo" or "End of Contract" is the illegal practice of repeatedly hiring employees on short-term contracts (usually five months) to avoid the obligation of regularizing them after the six-month probationary period. Under Article 296, an employee who is allowed to work after a probationary period shall be considered a regular employee.

3. Illegal Dismissal and Lack of Due Process

Dismissing an employee requires two elements: Substantive Due Process (a valid reason) and Procedural Due Process (the "Two-Notice Rule").

  • The First Notice: Specifies the grounds for termination and gives the employee an opportunity to explain.
  • The Hearing/Conference: Gives the employee a chance to defend themselves with counsel if desired.
  • The Second Notice: Indicates the decision to dismiss after considering all evidence.

4. Non-Remittance of Statutory Contributions

Employers are legally mandated to deduct and remit contributions to the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG). Failure to remit these, even if deducted from the salary, is a criminal offense (Estafa).

5. Overtime and Holiday Pay Violations

Work performed beyond eight hours must be compensated with an additional 25% of the hourly rate (30% if on a holiday or rest day). Similarly, employees are entitled to 100% of their daily wage on regular holidays even if they do not work, and 200% if they do.


III. Leave Entitlements

The Labor Code and special laws provide for several types of leaves:

  • Service Incentive Leave (SIL): Five days of paid leave for every employee who has rendered at least one year of service.
  • Maternity Leave (R.A. 11210): 105 days of paid leave for female workers, regardless of civil status or legitimacy of the child.
  • Paternity Leave (R.A. 8187): 7 days of paid leave for married male employees in the private and public sectors.
  • Solo Parent Leave (R.A. 8972): 7 days of parental leave for those left with the responsibility of parenthood.
  • VAWC Leave (R.A. 9262): Up to 10 days of paid leave for victims of violence against women and their children.

IV. Remedies for Violations

When rights are violated, employees have several avenues for redress:

  1. SENA (Single Entry Approach): Before filing a formal case, parties undergo a 30-day mandatory conciliation-mediation process facilitated by the Department of Labor and Employment (DOLE) to reach an amicable settlement.
  2. Labor Arbiter (NLRC): If SENA fails, a formal position paper is filed with the National Labor Relations Commission (NLRC). The Labor Arbiter adjudicates cases involving termination, backwages, and damages.
  3. Compliance Visits: DOLE conducts routine inspections to ensure establishments follow labor standards. Employees may also file a "Request for Assistance" for workplace-wide violations.

V. Conclusion

The Philippine Labor Code is designed to balance the inherent inequality between capital and labor. While employers have "Management Prerogative" to regulate their business, this is not absolute and is siempre limited by the law's requirement for fairness and human dignity. For the Filipino worker, vigilance and knowledge of these statutes are the primary shields against exploitation.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.