Employment contract is not an ordinary contract, but a contract imbued with public interest. Unlike in ordinary contracts, parties to labor contracts do not have complete freedom to stipulate the terms and condition of their contractual relations.

Restraints on the parties right to freely enter into agreement pertaining to terms and condition of employment are deemed valid, and not considered violative of the freedom or liberty of contract clause of the Constitution.

In line with above, the Labor Code prohibits certains terms or conditions of employment to be stipulated on employment contracts. Any such stipulation, even if freely and voluntarily agreed upon by the parties, is void. For example, the prospective employer and employee may not validly agree that the latter shall be paid a salary below the minimum wage prescribed by law, or that the employee shall be required to work more than 8 hours per day without overtime pay. Such stipulation, even if mutually consented to by the parties is null and without force and effect.

The underlying rationale for this prohibition is the protection of labor against discrimination, inhumane condition of work, abuses, slavery, among others.

The following are some of the stipulations that are deemed void even if voluntarily agreed upon by the contracting parties in an employment contract.

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. (Article 136, Labor Code.)

Stipulation Prohibiting Employee to Join Union.

A yellow dog contract is an employment contract which prohibits an employee from joing a labor organization or which requires him to withdraw from one to which he belongs. Yellow dog contract is prohibited under Article 248(b) of the Labor Code.

Stipulation Discriminating Employee on Account of Age.

No employer shall discriminate against any person in respect to terms and conditions of employment on account of his age. (Article 140, Labor Code.)

Stipulation Discriminating Employee on Account of Gender.

It shall be unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of employment solely on account of her sex. (Article 135, Labor Code.)

Last Edited: Sunday, March 20, 2011

Caveat: Subsequent court and administrative rulings, or changes to, or repeal of, laws, rules and regulations may have rendered the whole or part of this article inaccurate or obsolete.
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99 comments

  1. Sir,

    From what I understand, the 8 hours of work already includes the lunchtime and other breaks. Is that correct?

    What about those companies which require their employees to have Saturday work but compresses it into a 5 day workweek? What should be the effective computation? Should they still include the lunchtime for Saturday and add it onto the computation of hours?

    [Reply]

    Ted Ferrolino Reply:

    Hi!
    Meal period of not less than 60 minutes is noncompensable and not included in the computation of hours worked. On the other hand, breaks such as coffee breaks or rest periods running from 5 to 20 minutes is compensable, hence included in the computation.

    [Reply]

    asgard Reply:

    Sir i have question. I have signed a contract on
    My last empliyer dated feb 10, 2012. Now the contract said
    Im bond to that company on min. Of 2 year and im resigned thiss
    Jan 5, 2015. That cobtract are void or not?

    [Reply]

  2. Sir, curious question. If you’re salary say 25000/mo on your previous job. Is it legal to be paid or to be offered lesser than that by your new job say 15000/mo?

    [Reply]

    joseph Reply:

    job offers resulting to a lesser salary from previous employment if not lower than the minimum wage is entirely legal and its up to your liking if you will accept or not. you can either try to renegotiate if they will be able to come up with a better offer.

    [Reply]

  3. sir! would like to ask if more than 60 minutes ang meals and lunch breaks for example more than 2 hours or more nawawala then habitual na at ang work lagi lang endorse would that be considered willful avoidance or job abandonment? sana makareply kau. thanks!

    [Reply]

    Ted Ferrolino Reply:

    It could fall under neglect of duty (or more accurately, under circumstances analogous to neglect of duty). It is a ground for disciplinary action, and even termination if found to be gross and habitual, but outright dismissal is usually hard to justify.
    It is best to inform first the employee of his violation (by giving him a show-cause memo), and require him to explain his side. If you are not satisfied with his explanation, you may censure him, or impose whatever penalty is justified under the company policy/practice for the same type of offenses, with a stern warning that repetition of the same offense would be dealt with more seriously in the future. If the violation is repeated despite several warnings, you may impose a more severe penalty – with the penalty of dismissal as your last resort.

    [Reply]

  4. thanks a lot sir! I got few questions again that if the resolution was for termination and all evidences directly points that the employee has been doing the more than 60 mins. meal breaks from the time that he was hired from the company, would there be a possibility that if the employee feels that he has been illegally dismissed he’ll have a chance to win the case? Kc pwede nyang sabihin na for years of rendering service sa company why now and pwede nyang sabihin na ung termination nya was in bad faith. tama po ba?

    [Reply]

    Ted Ferrolino Reply:

    That’s why you need to issue warning first, then light penalties for repetitions (like suspension), instead of outright dismissal.

    [Reply]

  5. Hi, would like to ask if this is valid: if there exists a 6-month employment contract (for example for salesladies), once it expires, the company seeks to renew their contract? Is that valid?

    [Reply]

  6. Hi! Sir, ask lang po is it legal na me pinirmahan akong contrata but wala naman akong copy? at illegal bang matatawag ang pilitin ako sa bagay na hindi naman namin napagkasunduan? halimbawa usapan namin nung employer ko na 5-days work lang ako dahil di nya kaya asking price ko, at ng makailang taun nako sa serbisyo e pinilit nako papirmahin sa contratang wala nmn ibinigay na copya sakin, nakasaad na pinapapasok nako ng 2-saturday w/n a month yun lang po maraming salamat po!

    [Reply]

  7. hi again Sir tama ba na ang 13th month pay ng mga empleyado sa pribadong kumpanya ay pwedeng bawas o hindi buo na binibigay sa mga empleyado? maraming salamat po muli at merry xmas!!!

    [Reply]

  8. sir, is it possible for a 6 year contract with just one year training be worth Php400,000 penalty if contract is breached? What if po i said yes to a training then after a year pa po kami pinapirma ng contract and that was the time i saw the amount. I wanted to bring my copy home to think about it, but my employer just said “tapos na ang training, ngayon pa kayo magdadalawang-isip pumirma?”, so we had to sign it kasi they wouldnt let us go without signing kasi nga daw we already had the training.

    [Reply]

  9. hi sir ted, is it allowed for a company to hold my last pay or salary as payment for the short days notice of my separation with the company as stipulated in my signed employment contract? since i was on AWOL for several days already?

    [Reply]

  10. sir ted, in case our company will hire an employee who was also employed with other company, but the said employee will work as an hourly rate in our company and we will agree not to have her contributions in gov’t mandated contributions in order not to have conflict with the othe employer? how does this go, specially in the case of our company in BIR relations?

    [Reply]

    Ted Ferrolino Reply:

    Hi! In case of employees having multiple employers, their contributions are consolidated, so I don’t see how conflict could arise.

    [Reply]

  11. Hello, I would like to ask if employees of seasonal jobs should also be given their SSS benefits…let’s say the job is unstable like they only have work for several weeks and at times there is no work for 3 days or 1 week then work starts again by the next week.
    I hope you could reply on this, thanks!

    [Reply]

  12. Hello, I would like to ask if employees of seasonal job are entitled to have SSS benefits too. Let’s say work is not really regular sometimes there is work sometimes for 3 to 1e\week there is no work… I look forward to you reply. Thanks!

    [Reply]

  13. Hi Sir,

    Is it legal to hold the last pay of the resigning employee if he has debt?(Corporate Credit card but its under the resigning employees name). Can the Employer deduct the payment from the last pay even if the employee is not willing?

    [Reply]

  14. Hi sir. Is requiring work hours and days of “12 hours a day, 4 days a week” allowed by our law?

    If yes, how is it computed?
    And secondly, since the law states that a worker should render 40 hours per week of work, then that means under the 12hrs / day, 4 days / week work schedule, the worker should be given 2 hours break?

    If yes, then the employer is in violation of the labor code if they are only given 1 hour break and 2 15-mins break?

    Thank you.

    [Reply]

    Ted Ferrolino Reply:

    1. “12 hours a day, 4 days a week” is allowed by our law for companies adopting a compressed workweek (CWW) scheme. For companies without a valid CWW scheme, it is also allowed provided the employee is paid overtime pay for the work rendered in excess of 8-hours in a day.
    2. No. The law does not require “40 hours per week of work”. The 40-hour workweek applies only to companies with “8 hours a day, 5 days a week” work schedule. For companies with “8 hours a day, 6 days a week” work schedule, 48 hours is used.

    [Reply]

  15. Hi sir. Is requiring work hours and days of “12 hours a day, 4 days a week” allowed by our law?
    If yes, how is it computed?
    And secondly, since the law states that a worker should render 40 hours per week of work, then that means under the 12hrs / day, 4 days / week work schedule, the worker should be given 2 hours break?
    If yes, then the employer is in violation of the labor code if they are only given 1 hour break and 2 15-mins break?
    Thank you.

    [Reply]

  16. hello sir. Good day!. I’d like to ask for some legal advice about my sister’s case. My sister is working at a resort hotel as the secretary of the executive chef for more than a year already and was still on probationary period. Last June 2011, she filed for a maternity notification and at the same time informed her immediate boss that she is pregnant. Her immediate boss, the executive chef, has no problem of her being pregnant since it doesn’t affect her work. Of course the HR manager become aware of her condition when she filed the MAT-1. Upon knowing of her situation, the HR manager called my sister and inform her that she needs to voluntary resign or they will terminate her. But since my sister doesn’t submit her resignation, they informed her that they will hold her probationary status. That was 2 months ago. But from time to time this July and August 2011, the HR manager keep on pestering my sister that she should file a leave and just return to work after she give birth. But since my sister is still 7 month pregnant (her due date is on the second week of November 2011), she still can do her work and will file for a maternity leave. LAst Aug 17, 2011, they give a memorandum to my sister asking her to explain her circumstances of being pregnant out of wedlock. The HR manager states in his memo that being pregnant out of wedlock is somewhat immoral and is a violation of their code of conduct. They insist that my sister got married but since our eldest sister has just gotten married last July 2011, it can’t be possible because of the expenses already incurred so they postponed the plan for next year. As of today, they are forcing my sister to file for a leave until she give birth which is still 3 months away or they will terminate her. Sir, do they have valid reason to terminate my sister on the above reason that she is pregnant? what case can we file if they really terminate her?..Hoping for your feedback. Thank you

    [Reply]

    Ted Ferrolino Reply:

    The acts of the HR Manager are illegal.

    Article 137 (now Art. 135) of the Labor Code, as amended, states:

    “(a) It shall be unlawful for any employer:

    “(1) To deny any woman employee [maternity benefits] or to discharge any woman employed by him for the purpose of preventing her from enjoying any of the benefits provided under [the Labor Code];

    “(2) To discharge such woman on account of her pregnancy, while on leave or in confinement due to her pregnancy; or

    “(3) To discharge or refuse the admission of such woman upon returning to her work for fear that she may again be pregnant.”

    The above provision is penal in nature, for which a penalty of fine (1000 to 10,000) or imprisonment (3 months to 3 years) may be imposed under Article 288 of the Labor Code.

    If your sister is terminated, she may file a case for illegal termination with the National Labor Relations Commission. In addition, she can also file a criminal case against the HR Manager for violation of the above provision (Article 137 in relation to Article 288).

    [Reply]

    mhai2 Reply:

    Hi Sir Ted. Thank you for the reply. Just a follow up question/situation sir. This last week of August 2011, the HR manager of the said hotel informed my sister that she should file a leave of absence until she give birth. But since her due date is still on the second week of November, it is still a long way to go. But the HR manager insist that she should file a leave starting this September 1, 2011. My sister was forced to file an emergency leave without pay starting last Sept 1, 2011 untilOcto 15, 2011 and the maternity leave from Oct 16-December 16, 2011. Also, they give my sister an option that she could get married so that she will not be forced to file a leave before her maternity leave.Furthermore, they’re hinting that she cant return to work after her maternity leave if she can’t show any documents proving that she is already married.. Can they really prevent my sister from going back to work for the reason that she doesn’t want to get married? What about the forced leave that they imposed to her?..is it valid? Thank you.

    [Reply]

    Aiden Reply:

    Hi,

    while on maternity leave, may ibang gumamit ng position title ko sa email signature. when i return sa office from leave, nakareceive ako ng email na binabago na ang position ko and it seems like demotion na (from manager to consultant).wala akong letter na nareceive for the changes in department structure before may gumamit ng title ko.wala ding performaance evaluation kung may demotion man. can i file a case against sa company? or ano ang pwede kong habulin sa company? please help.

    [Reply]

  17. I am a one of the QA officer in our company for 2 yrs and one of the Operations Manager runs or pilot a new campaign for our call center. I received a message from the HR asking me to come for a training. On the training I was not informed that I’ll be taking calls which is not part of my responsibilities as QA. Can I opt not to take calls and just wait for the company when they have the job for me? or if the company is not able to give me the job as QA can I ask just to pay me for the number of years I serve the company so I can look for better firm? Please advise. Thanks

    [Reply]

    Ted Ferrolino Reply:

    Yes, you may refuse to transfer to another position if it involves diminution in rank, or when such transfer requires you to perform task not related to your position. In either case, constructive dismissal may set in.
    When there is constructive dismissal, the employee is entitled to be reinstated to his former or equivalent position, or to payment of separation pay if reinstatement is no longer possible, and to payment of backwages.

    [Reply]

  18. Manuel Allan Comment:
    September 2nd, 2011 at 06:04 pm

    I am redundated from my job and paid me separation pay. I am 53 years old already but I dont like to be redundated from my work and they do not apply the first in first out criteria of redundancy. And being a union officers I am thinking the employer are bias for the selection process. Is it also legal to sign a Quitclaim because I cannot received my separation pay if I will not signed. This is they said a “dire necessity” on my part.

    [Reply]

    Ted Ferrolino Reply:

    1. Fair and reasonable criteria in ascertaining what positions are to be declared redundant are necessary for a valid implementation of a redundancy program. There are many criteria, aside from first in first out (seniority) that the employer may consider, like preferred status of employee. Efficiency is often a factor as well.

    At the end of the day, what is important is that the whole process has been guided by good faith (but not necessarily good judgment). When biases set in in the selection process, the termination becomes questionable.

    2. Requiring a separated employee to sign a quitclaim is a common practice. It is not per se illegal. You will see cases where quitclaim has been upheld as a valid waiver of right. However, in a large majority of cases, a quitclaim has been held to be generally ineffective; it is frowned upon as a matter of policy, even if the employee accepted benefits therefrom. If your problem is only the quitclaim, well, it is not something you need to really worry about.

    [Reply]

  19. I am working in a Call Center. Last March 25, 2011 me and 40 others were placed on an indefinite Floating Status W/O pay. On the other hand our company Filed an ESTABLISHMENT EMPLOYMENT REPORT with DOLE filing for Redundancy and permanently terminated our services. We filed a case with NLRC for illegal termination. During the couse of the hearings, They tried their best to remedy their fault by setting us up for interviews with other accounts which will remove our Tenure Allowance. We kept on telling them to reference on the case and consult their lawyers about their offers. They tried sending us recall letters for work. My only response was “telling them to reference on the case and consult their lawyers.” Last July 13, 2011 got a letter sayingn that they are terminating my services for reason of Neglect of Duty (C) Insubordination. Is this legal? What should we do?

    Right now our case with NLRC is still waiting for decision.

    Thanks in advance and more power…
    Mike

    [Reply]

    Ted Ferrolino Reply:

    I don’t want to second-guess your lawyer on what you should do. It is important that you consult your lawyer on this matter.

    With respect to your subsequent termination as contained in the July 13 letter, personally I don’t think it will hurt your case at all. It’s futile for the employer to make a claim of neglect of duty / insubordination at this point, after a case for illegal termination has already been filed. For one, how can the employee neglect or abandon the duty he no longer holds by reason of his termination? It’s a valid defense you can raise.

    However, it would be an entirely different case if the return to work directive comes from authorities, like the labor arbiter. You see, there may be some peripheral issues involved. Ask your lawyer.

    [Reply]

  20. Hi Sir,

    I have quetion regarding project base contract, i am connected in a service agency, 2008 i was assigned in a project after 2 years their contract has ended, so with our contract, Am I entiltled to claim benefits from the company? And what are they?

    Right now, still in the same agency, they assigned me in another project, Starting February 2010, there contract with our client will end this coming Sept. 15, they said we are going to sign another contract. My question is, are we entiltled for a claims?

    Also I want to inquire regarding my salary, my previous salary in my previous project is 392.00 per day, here in my new project, 310.00 per day, is it in the law, na pwedeng ibaba ang rate nang isang empleyado in which pareho yung position na hinahawakan?

    Also I want to ask, in behalf of my Team, regarding their claims, they started Sept. 15,2006 there was no contract signed by them. And now gusto nang agency na magpaperma nang contrata, Starting September 16, 2011. Ano pong mangyayari sa services rendered for the past years? Makakakuha pa rin ba sila nang benefits? If wala po silang contrata na napermahan since 2006, meaning regular employee na po sila sa agency? ano po bang dapat naming gawin?

    regards,

    Louela Gungob-Nadela

    [Reply]

  21. Sir Ted,
    good afternoon, i hope u can help me with this. i signed an employment contract with another company because the contract i have with my previous company already expires, but five days before the date of my 1st day of report to my new company, i was offered a compensation by the previous employer which is so hard to be refused, and i grab it. that means, i already turned down the employment with the new employer. can there be any legal problems with that? the contract i signed with, can they hold it against me? I really need your expertise. thank you so much and more power. GODBLESS to you and your family..

    Arthur

    [Reply]

  22. Hi Sir, its the law permitted to have an extension break of 1 hour without pay, just only to avoid the employees overtime, as based on the management decision, they are on the cost-cutting / budgeting that is why they are implemented such this act. Hope you send your humble reply to this matter. thank you.

    [Reply]

  23. Hello, I was terminated 2 months ago. I am part of a union. Union put together a stipulation contract to get my job back. I agreed and was told the employer agreed. The day i went back to work i was denied and told employer wanted to write up a new stipulation. I did not agree to the new stipulation. It seems the new stipulation strips me of protected rights to work should they look to terminate me once again. Does this make the first stipulation i signed null and void?

    [Reply]

  24. Question,

    I understand that Philippines is a right to work territory.

    is it legal to stipulate in an employment contract that the employee is prohibited from accepting any other employment at teh same time?

    is it legal also to have a lock out clause, meaning that the employee cannot join a competitor company doing the same work within a certain period fo time after leaving ie 2 years?

    Thank you

    [Reply]

  25. hello sir,

    Our employment contract says:

    “Your appointment to XXXXXXXX is also subject to: Satisfactory professional, educational and Database checks and standard background reference”

    Last Friday, several of us received a Notice to Explain asking us to provide explanations why we were terminated from our previous companies, yung iba sa amin terminated from first jobs, etc. We were all given 5 days to explain or we will be terminated.

    I just want to know if this is legal? We are on our 2nd year with the company and way past our regularization. All of us were asked if we were terminated from any of our previous employers and we all said yes during the interview so we did not, in anyway lie during the interview.

    [Reply]

  26. how about the six months contractual employees.. what are the pros and cons of having this employees and to the employees themselves. why this kind of system( 6 month contratual basis) is spreading throughout the Philippines?

    [Reply]

  27. Hi Sir Ted,

    Is my employment contract considered void since some of the provisions does not conform with Phil Labor Code?

    Here are some of the provisions:

    1. Salary is disbursed once a month.
    2. No overtime pay.
    3. Three month notice if filing for resignation.
    4. One year probationary period.

    Thanks

    [Reply]

  28. sir,

    if i already finished 6 months of contract and still continue that contract, is this meant that i am already a regular employee.

    my mother was already retired , the company gave her a separation pay only . how about the retirement pay,

    [Reply]

  29. sir what if i’m under contract and i want to leave my company because i’m not happy anymore and i feel so depress and over-stress. can my boss sue me for leaving the company?

    [Reply]

  30. Hi Sir, good evening!

    gusto ko lang po sanang itanong kung legal po na ilipat ang isang empleyado ng malayo sa kanyang tirahan na walang salary adjustment o kaya subsidy and allowance para sa additional cost gawa ng pagkakalipat nya?

    dito po ako nakatira sa sta rosa laguna at dating naka assign sa calamba laguna. inilipat po ako sa pasig kasi daw po isasara na ang calamba office pero wala daw po ibang pwedeng ibigay na dagdaga sweldo sa akin o pangmatagalang subsidy kundi 6 na buwan lang na 50% subsidy (2,000)para sa transportation expenses ko. 6 na buwan lng daw po ang pwede nilang ibigay kasi daw po ang nasa company regulations at kung hindi ko tatanggapin ay babayaran na lang nila ang length of service ko pero yong isa o pong kasama ay binigyan nila ng increase sa dahilang mababa daw po sa gma rate ang sweldo nya ang akin naman daw po ay hindi. 8 years na po ako sa company at may pamilya kaya napilitan akong tanggapin ang alok nila. Legal po ba talaga ang ganitong mga patakaran? Wala na po talaga akong pwedeng matanggap na subsidy sa kompanya maliban sa 6 na buwang 50% subsidy sa transpo expenses ko? sana po ay masagot nyo ako malaki po kasing kawalan ang ginagatos ko sa pamasahe pa lang…salamat po.

    [Reply]

  31. GOOD DAY SIR,
    SIR GUSTO KO LANG PO MALAMAN KUNG ASIDE PO SA 13TH MONTH AND LAST SALARY KO PO,MAY MAKUKUHA DIN PO BA AKONG SEPARATION PAY?NAGRESIGN NAPO KASI AKO SA DATI KONG PINAPASUKAN..NAGMERGE NA RAW PO UNG COMPANY NAMIN SAKA PO UNG BAGO..OBLIGADO PARIN PO BA NLA AKONG BIGYAN NG SEPARATION PAY LALO PO 2 YRS PO AKO NAGWORK PO SA COMPANY NA UN..NAGPASA PO AKO NG DEMAND LETTER NA NAKAINDICATE PO DOON ANG SEPARTION PAY,13TH MONTH AND 1 MONTH SALARY KO..NAPIRMAHAN PO NG 2 MANAGER PO UNG PAPERS KO NA PINASA KO..MAY HABOL PO BA AKO DON?NGAUN PO ANG SABI PO SKIN PAGUUSAPAN PARAW PO NG EMPLOYER KUNG IBIBIGAY PO SA AKIN UNG 1 MONTH PO NA SALARY KO..SALAMAT PO SIR SANA MALIWANAGAN PO NINYO MG AKO

    [Reply]

  32. Hello po,
    Question lang po, sana matulungan nyo ako…
    Fresh Graduate po ako apply2, tapos ung agency po, bigla akong pinagDUTY, tinawagan lng ako, start na agad…

    nag start po ako 8 hours work for 2 days without any contract or whatever, ung mga interview lng po..

    ngaun po, ayaw ko na po sa job, since wala pa nmn akong contract sign. legal po ba na pinagwowork parin po ako ng 15days bago po ako pwede umalis sa company?..

    [Reply]

  33. hello..

    bagu ko lng nalaman na meron ganitong law pa la.. as a friend tell na makaavail ako ng magnacarta for women..pasok po ako sa qualification.. natangal ang aking ovary. feb 12- feb 18 ako na admit.. so when halos 1 1/2 mo. ko nalaman.. i said to my company.. they did not know about this law. halos nagamit ko ang 7 days leave at 7 days sick leave halkos gamit ko lahat ng leave ko plus 4 days na hindi ko pagpasok deneclare nila absent..nag nalaman ko ang law na 2. nagfile na ako ng sss sick leave 15 days na declare yun so i decide na gamitin ang aking magna carta for women.. when the company know they set for thier own way.. kaso parang ngayari hinahanapan ako ng mali.. yung nadeclare na 4 days absent. pagpasok ko pa.. the owner said na kung hindi pa ako papasok tatanggalin na nila ako.. alam naman nila na ako ay inoperahan.. as i see sa magna carta 2months leave with pay ang dapat ko ma avail.. hindi nila sinabi sa akin.. hinahanapan nila ako ng butas.. the owner said na bakit ko ibibigay kung tangalin kita..that not right treating for thier employee alam nila ang aking sitwasyon.. so we talk with the company.. humingi na ako ng medical certificate sa hospital declare lang kung kaylan ako na admit.. pls help for what to do..

    [Reply]

  34. chito arceo Comment:
    May 30th, 2012 at 01:55 am

    hi. ask ko lng po, is it not a violation of a company to impose penalties against the employees for situations beyond their control? for example, in our sales dept., when customers return their ordered items or they cancel it they do not accept it, the company will charge P150 for every situations like this. or when an employee commits an honest mistake and that mistake can be corrected without any without any monetary damage to the company they will also charge penalties?

    [Reply]

  35. Hi gud am.. Mr ted! 6 and half po ako sa company regularcpo ako nagresign ako..kaya lang wala daw po ako makukuhang separation pay or kahit consideration man lang! ilang years of service po ba valid sa isang company para mabayaran?kasi sabi ng employer ko kaya daw sila di nagbibigay ng separation or consideration kasi daw po magsusunod sunuran na sa iba na gusto maagresign tama po ba yun? sana po ma2lungan nyo ako.. salamat

    [Reply]

  36. It’s funny how these simple legal laws are violated by a number of companies in the country yet no one has been charged. I hope companies will strictly follow the law.

    [Reply]

  37. Hi Sir,

    Ask ko lang po… 5 years na po ako contractual employee. Ang contract ko po ay renewed every year… except this year po, 11 months na po na pumapasok ako na walang contract? Ang question ko po ay, may right po ba ako na maging regular employee because of that? Is it legal na contractual employee po ang treatment sa employment ko kahit wala pong existing na contract? Sana po matulungan nyo ako sa aking katanungan. Pagpalain po kayo!

    [Reply]

  38. Good day sir,
    Ask ko lang, is there any legal problem if i sign to another private company with the same line of business after i finished my contract to the other private company and ung sa contract na napirmahan ko it stated na indi ako pwede magwork sa other company with the same line of business after 1 year, void pa ba ung ganun contract eventhough i finished the contract. Thanx sir i hope for your reply , god bless

    [Reply]

  39. Hi Sir,
    We are employing installers for our product. In as much as we would like to absorb project employees, we only rely sa productivity ng sales, meaning we might have over manpower pag walang benta mga taga sales. so our option is to, other that our regulars, we employ helpers with minimum pay P446.00 and meron ng matagal sa amin na minsan tuloy tuloy ang pasok.They dont have any contract and we dont also pay contributions for them. we issue them ID and pay them weekly. If we stop getting their services (ex if one is frequently absent), is it considered illegal? Can he/she file a case against our company.

    [Reply]

  40. Anne Tacbobo Comment:
    October 25th, 2012 at 05:46 pm

    my company hired me last May 23, 2012 for probationary period that is only for four months.I’m expecting to have my contract when the due of 4 months end, so that will be after Sept. 23, 2012. My employer told me that they will give me my contract this October with no fix date. Today, October 25, 2012, my employer suddenly told me that they will hold my contract for the reason that I have some complains with my student. So, right now, I am working with them without a contract. Is this valid? Please reply.. Thank you..

    [Reply]

  41. Subject: VALIDITY OF EMPLOYMENT CONTRACT

    Mr Ted:
    Our employer required us to sign a 5-YEAR EMPLOYMENT CONTRACT with a stipulation we’ll pay them should we leave within the prescribed period and they have the right to withhold our salaries and benefits should we resign. All applicants signed it as a condition of employment because they needed a job.

    Reality: Many employees were not able to finish the 5yr contract because of mismanagement. A few examples of mismanagement are
    1.) NO OT pay when trainings are required after 8yrs work,
    2.) NO LUNCH OUT,
    3.) TRAINING CONTRACT (that states we must extend 5yrs or we’ll pay 2x as much as training cost) are required to be signed if employees are recommended for trainings,
    4.) many more.

    As a common result: Employees resign within 1 year. They are demanded to pay a big amount which is higher than what they earned during their stay. Its like they’ve been working in the company for free plus they have debts.

    Question: Is the EMPLOYMENT CONTRACT valid?

    Please advise us.

    [Reply]

    joseph Reply:

    Art. 285. Termination by employee.

    An employee may terminate without just cause the employee-employer relationship by serving a written notice on the employer at least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages.

    An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes:
    Serious insult by the employer or his representative on the honor and person of the employee;

    Inhuman and unbearable treatment accorded the employee by the employer or his representative;

    Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family; and

    Other causes analogous to any of the foregoing.

    [Reply]

    Jessie Reply:

    Im in same situation right now, I have 2 previous trainings with bond number1 is 1.5 years for 15k training cost , then 1year for 9800 training cost, then now 3.5 years for 35k training cost total of training bond is 6years , I signed all those contract, but now i have problem with the management and want to resign, but it indicate in contract that I will pay 200% of training cost if i resign. Please help me. 1.5 year palang ako sa company

    [Reply]

  42. just wanted to ask for your labor experience in legal matters. i was previously reinstated by my company due to illegal dismissal but it was reversed at CA, we filed a motion already. my question is, is it executory to cut of the salary when it is still under pendency and the action/response by the arbiter was deferred because it is not yet final in the entry of judgement?

    what steps can you suggest in regards to this situation?

    [Reply]

  43. Good day! i was promoted as HR staff last year. as i checked the personnel 201 file, i found out that some of the employees, probationary and regular, don’t have employment contract record. according to them the previous HR staff failed to give them contract of employment. some of them are hired for more than 10 years. what am i gonna do with this? please help.. thank you…

    [Reply]

    The Great Itlog Reply:

    Quit your present job. Not worth the head ache.

    [Reply]

  44. Good day! i was promoted as HR staff last year. as i checked the personnel 201 file, i found out that some of the employees, probationary and regular, don’t have employment contract record. according to them the previous HR staff failed to give them contract of employment. some of them are hired for more than 10 years. what am i gonna do with this? please help.. thank you…

    [Reply]

    NDS Reply:

    I have the same problem now. Were you able to solve this issue? Any tips for me?

    [Reply]

  45. Hi sir. I’am currently working as a nurse trainee under DOH program RN heals. I need your advice regarding breach of contract. I signed the deployment contract stating that we will be trained for 1 year with stipend of 8,000 a month. I just wonder why DOH advised us that we will be ending this Feb. 28, 2013 that is equivalent to 10 months only. Is it possible for us to fight for our rights? thanks in advance :)

    [Reply]

  46. Hi Sir,

    I am currently working as regular employee in a firm. I filed a formal notice (30days) for the termination of my employment. Pumayag naman po ang boss ko pero nag-aask sya ng damages sakin since nakastipulate daw po sa contract na naka-bond ako sa kanila. But then I review yung contract at wala po akong nakitang bond. Verbal agreement lang po ang nangyari. Do i need to pay damages? Thanks in advance.

    [Reply]

    The Great Itlog Reply:

    Nope. San ka naman nakakita na binding ang verbal? If ever counter them na nag verbal protest ka noon. Seriously, if it is not written and signed by you then it is not real.

    [Reply]

  47. Hi Sir!

    If an employee is on probationary status then the 6 months was already served upon which he decided to leave, Does he need to give a resignation letter? and render 30 days? The employer is giving a hint that he wants the employee at work. The employee wanted to leave thus, threatened because of the employer’s statements “there’s a prob. with your communication with us” but there isn’t any real prob. The evaluation is delayed and today is the last day of the 6 months. Is there any liability on the part of the employee, where he just want to leave the company?

    Thanks!

    [Reply]

  48. Sir,

    Good day to you, I would like to ask with regards to the compensable breaktime. The company gives a mandatory 1 hr. lunch break, and 2 20-minute coffee breaks, is the 2 20-minute coffee break compensable or non-compensable? since its total is 40 minutes which is more than the compensable 20 minute break.

    Thanks!

    [Reply]

    admin Reply:

    Breaks of short period (running from 5 to 20 minutes) are compensable. Reason: Short period breaks benefit more the employer in terms of improved productivity, than the employee. Hence it is treated as compensable.

    [Reply]

  49. Thank you for the reply sir, so it would be best to make it a 2 30 min. breaks so that it would be non-compensable.

    [Reply]

    admin Reply:

    I think that might not be accurate, at least is some cases. If you look at the Labor Code, it states ‘rest periods of short duration’ is compensable. It does not define exactly how much is ‘short duration’ in minutes, though.

    I think other factors should be considered, other than just the number of minutes. E.g., you might want to ask whether the employee is allowed to go out of the work premises during the break period or not? If not, I would say the break should be considered compensable because the employee cannot make use of the time as he/she wishes.

    Well, the Omnibus rules provide that break of 5-20 minutes is compensable, suggesting the breaks beyond 20 mins is non-compensable. So, there’s your point. But, I think there is still a room for a different interpretation in this area of the law.

    [Reply]

  50. Good morning. I started here in the company last Sept 27 2012, with 2weeks training, but i signed the contract dated oct 26, 2012. My employer told me that he had to end my contract as a cashier and he will give me a certification (til March 1) . But he also offers me work that will last for 1 to 2 mos only, updating/writing their bir reports (columnar book). Or until i finish those. I also doing some clerical works aside from writing manually. Last week I ask him my status here, but he told me that he can’t offer me anything or even contractual only. Still do i have the right to ask for contract, since im still working here for almost 3mos now. PLEASE GIVE ME SOME ADVICE. THANKS

    [Reply]

  51. honeylike Comment:
    June 6th, 2013 at 07:21 am

    Good morning. I started here in the company last Sept 27 2012, with 2weeks training, but i signed the contract dated oct 26, 2012. My employer told me that he had to end my contract as a cashier and he will give me a certification (til March 1) . But he also offers me work that will last for 1 to 2 mos only, updating/writing their bir reports (columnar book). Or until i finish those. I also doing some clerical works aside from writing manually. Last week I ask him my status here, but he told me that he can’t offer me anything or even contractual only. Still do i have the right to ask for contract, since im still working here for almost 3mos now. PLEASE GIVE ME SOME ADVICE. THANKS

    [Reply]

  52. Renato Ablao Comment:
    June 26th, 2013 at 12:14 am

    Hi. Sir.
    Is it legal for a company , say a construction firm,to include in the contract that once you resign from your job in less than two years you will be charge PP 5,000.00 per month. This means that you have to finish your working with the company for two years before the
    PP 5,000.00 can be waived.
    Thank you
    Mr. renato Ablao

    [Reply]

    The Great Itlog Reply:

    In the first place, why did you signed such contract? Why work with such condition? Contract is illegal as hell.

    [Reply]

  53. Denzio Paredo Comment:
    August 2nd, 2013 at 03:13 pm

    Hi sir,
    Nagtrabaho po ako sa isang company ng limang taon mahigit.Pumirma po ako ng contract na 5 years ,dahil ito ay nakaayon sa kontrata nila…may 5 years na contract ba ang pilipinas ? natapos ko naman po ang 5 taon at may training din po sa ibang bansa yun..kaya ko po tinapos dahil baka pagbayarin ako ng ginastos…pumirma po uli ako ng panibago pero sobrang advance ang pagpapirma nila..e ayaw ko pa nga pumirma e..gusto nila agad-agad..legal po ba yan na ipipilit nila ang pagpapirma sa iyo ?na malayo pa ang due date ng 1st contract ? yun ay walang overtime pay kahit inabot ng hating gabi ang pagtatrabaho,walang insurance,walang binibigay na protective gear bilang isang mekaniko.walang medical taun-taon. so pumirma ako ng napipilitan lamang itong 2nd contract ko..di na po ako nakaalis ng ibang bansa at wala pa rin pong overtime pay kahit inabot ng hating gabi sa pagtatrabaho,insurance,medical taun-taon na binibigay..unsafe kasi sa trabaho ko. .isa pa di po binibigay ang increase ko na pinagkasunduan..kulangkulang isan taon na hanggang ngayon..kaya po ako umalis sa kanila.di ko na tinapos ang contract.legal po ba yan Sir.kahit di tinapos ang contract at di ibinigay increase halos 1 year na ? wala din namang insurance ,medical taun-taon..may sinasabi sa contract na magbayad ng malaki pag di tinapos.legal ba yan sir ?

    [Reply]

    HR Adviser Reply:

    yes it is legal.

    Base on the labor code Art 285 Sec B, you could immediately resign if there is an inhuman and unbearable treatment accorded the employee by the employer or his representative.

    The company couldn’t impose payment on you for breach of contract not unless they file for it. And if ever they filed a case to sue you for damages (breech of contract) you could refute it by charging them with breech of contract also (not giving you increase base on your agreement)

    [Reply]

    Denzio Paredo Reply:

    Hi Hr Adviser,
    Thank You very much sa reply na print ko na po kung sakali man mag-file sila at least alam namin ang
    gagawin.Maraming salamat po ulit.

    [Reply]

  54. Hi,

    My brother is working as a part o a rescue team of one of the biggest networks. He said that only way for them to be regularize is to pass the screening of the news team and be a news correspodent. Since it was not his forte, i don’t think he even tried, he just stayed as the normal rescue team member. His shift is 9pm to 6am. Lately, he’s been reporting around 2pm and until 6am. But according to him there was no OT pay.

    I would like to ask if this is even legal.

    Thanks!

    [Reply]

  55. I would like to know if it’s legal to sign a contract of 7years to work in the Philippines?coz I have a friend whose working as a Preschool teacher (but not a licensed Teacher)a fresh graduate who signed a contract to work for 7 years in a Private school. Now she wanted to resign after 2 years of service but she can’t due to the contract of 7 years, I would just like to know kung legal po ba itong 7years na contract? They are hesistant to resign even they wanted to but they are worried on the contract they signed.

    [Reply]

  56. Hi Sir,

    I ended my probationary last april 1. I only signed a Salaried contract terms and no job description stated. When they evaluate me for regularization, i demanded to increase my salary because they need my license to approved a plan in which my manager agree. Ang problema sa loob ng 3 buwan na paghihinatay, wala ngbago sa salary kow. Nong July inevaluate ulit ako and my manager talk na he will include and recommend na increase below the evaluation form but until now, wala pa rin pagbabago sa salary kow. wala din ako kopya ng regularization form and worst, i already approved those plans dahil kailangan na i-submit. Is that legal? Makukuha ko ba yong buwan na hindi nabayaran ang increase if ever ibigay nila ang salary increase? Please advise…

    [Reply]

  57. hi ang trainee po ba ay kilangan mag o,t ng more than 5 hrs?… at ang trainee rate po ba ay 250 compare the regular salary of 315 here in cavite area…? ple help hndi po kmi na babayaran ng maayos at nag force po cla ng o.t khit pagod na ang tao… plz invistigate solidbase ageny… in monterey cavie meat plant

    [Reply]

  58. Hello,

    I am currently working for 8 months and still without contract sa company namin dahil sabi nila inaayos pa yung pagpapalit nila ng company name. Nung natapos na yon, wala pa rin sila binigay na contract. Lagi nila sinasabi na processing pa rin. Since nawawalan na po kami ng gana dahil sa nasasayang na panahon na sana regular na kami sa ibang company, naghanap po kami ng bagong work. Since wala po contract, pwede ba kami mag file ng immediate resignation? At tsaka may makukuha ba kami backpay sa 8 mos na nag work kami sa company namin? Really need some advise po. Thank you.

    [Reply]

  59. Sir, I would like to ask, you see, I am a trainee in a call center, and 2 employees told me that they were working for like 3 months already, but they don’t have any contracts, the call center’s web or job description says that they are going to pay every 15 days, but the employees only receives their salary every end of the month. My friend, who’s been working there for 3 months, told me that she wanted to quit but the supervisor told her that she wouldn’t receive her pay if she doesn’t agree with the 1 month hold or something(like they want her to stay for 1 month pa ir wala siya pay). I am scared and confused, I don’t know if I should continue my training or just end it. their working hours is from 11:00 pm to 8 am.. and sometimes, their salary is given to then incomplete. please help me.

    [Reply]

  60. karpalkumar Comment:
    January 21st, 2014 at 09:46 pm

    Hi Sir, Legal ba magwork sa isang company without signing the contract? (San po ba makikita ito sa Labor Code

    [Reply]

  61. hi sir.,., i am about to pay 50k to my employer.,., because i was under of 3 years contract… and when I pass the board exam i decided to go i just spend 1 year in their ‘private school’… my employer were not able to give a copy of a contract intentionally… what should i do.. do i have to pay???

    [Reply]

  62. Good day itanung kolang po kung legal ba ang pag terminate sakin.

    Nagapply po ako sa present company na yun dahil ang habol ko ang regularity dahil sa previous company ko is under agency po ako for 2 years with out signing any contract basta tuloyx2 lang. ang sabi sa previous company ko they can give me what i want from the start regularity mean they pirate me. then nag start na nga ako mag work sakanila at 1st magulo para sakin dahil pinapirmahan nila ako ng 3 months contract the after daw nung for evaluation bago mag end yung three months ko nagkaron ako ng kaso sa company nayaya ako umawi ng maaga ng ka workmate ko which is tinanggap ko naman yung sunction kahit alam may foul sila sa pagbigay ng suspenssion coz its only 1st offense according to there rule book my case is verbal warning after 10 days suspension they renew my contract again another 3 months sabi ni HR another 3 months daw then for evaluation dun ko malaman kung may regularity or another 3 months contract. May 25,2014 is my last contract with them wala hindi sila nag serve ng notice regarding my work status kung renew ba or regular or end contract. May 23, 2014 Friday is SAHOD ko kung hindi pako may tanung kung bakit wala akong sahod hindi pa nila sasabihin last day kona. may habol po ba ako sa present company na yun at now nalaman ko po hindi nila binayaran ang SSS contribution ko from start up to now. Salamat po sana matulungan nyo po ako.

    [Reply]

  63. Hi!

    I just would like to ask if it is legal to make an employee sign a contract that ties him for a certain period, say one year. If he resigns within the duration of the contract, he will be penalized and/or subjected to court proceedings.

    Likewise, a contract that limits the employee to the companies he can work with after he resigns. That is, he cannot apply to a competitor company.

    Are these contracts valid and legal? Thanks in advance.

    [Reply]

  64. hello po..
    i need an advice regarding my situation. i just signed a contract as probationary employee in a company… few days later i got a better offer from another company..i want to get the better one. what is the best thing that i can do? hope to get a reply soon..will i be commiting a breach of contract?
    im still considered a trainee and i attended for 6 days already..

    [Reply]

  65. Hi, I would like to ask if its OK that I will have a part time job in a call center at night and be a public school teacher during the day. Is there any legal aspect to consider? How about my tax phlhealth and pgibig contributions?

    [Reply]

  66. Hello and good day. I signed a contract with a BPO company. The day we were supposed to start, we were told that the employment will not push through anymore. We were told to wait for 1 month while they try to look for another account for us.

    Are we covered in this case? Is there a way we will be compensated if they cannot endorse us to another account within 1 month?

    Thank you in advance.

    [Reply]

  67. hi sir ted, and any0ne wh0 surely kn0ws the answer to my questi0n. my c0ncern is ive been w0rking f0r a f0od service c0mpany f0r 2m0nths and decided t0 inf0rm my manager that i cant c0ntinue any l0nger. im n0t c0mf0rtable and happy w0rking with them anym0re. i d0nt usually d0 that,and besides i badly need j0b c0z im a bread winner, but i cant take it.the pr0b is the c0ntract i signed that says i need t0 finish a year or 6m0. with them or i will pay a fine. am i in big trouble? :(

    [Reply]

  68. Hello Attorney, is it unlawful to stipulate in the contract that you are not entitled to get a job the same line of products and services with the previous company for 2 years?

    I mean choices one could have, given the expertise developed with the same job?

    [Reply]

  69. As Noel’s Comment, may i ask for your reply on this:

    What if I already signed the contract from previous employer and I am eyeing the same job with my previous employer’s competitor?

    Hello Attorney, is it unlawful to stipulate in the contract that you are not entitled to get a job the same line of products and services with the previous company for 2 years?

    I mean choices one could have, given the expertise developed with the same job?

    [Reply]

  70. Sir, how come Article 136 (Stipulation against Marriage) only applies to women employees?

    [Reply]

  71. hello sir gud pm.. ask ko lng po kase 2yrs n ako s work ko as operations manager at 10hrs po lagi ang duty ko. sa contract ko may vacation leave ko n 5days pero wlang sick leave.. kpg holidays pumpsok prin ako pero wlang double pay kase yun ang nakasaad s contract ko.. mali spelling ng complete name ko notary. valid po ba yun? nagduduty ako ng 11hrs (9am – 8pm) walang breaktime kase ang sabi sakin anyyime n gusto kumain eh pede nmn daw kaso syempre kung gusto nmin maidlip sandli hindi pede kase baa ib isipin nila. naguguluhan na po ako. please help.

    [Reply]

  72. Hi sir, di ko po alam kung bukas po ang thread na to o active pa po.. Nasa bond po kasi ako for 3 years. Nong pumirma po ako ng contract pinakita po sa akin ang table ng magiging sahod for that 3 years at ok naman po. After a year, di po nasunod ang sahod na promise nila sa akin so nagreklamo ako. pero sabi po ng hr di naman po kasama sa pinirmahan ko ang salary table so ibig sabihin ang pinirmahan ko lang po ay ang 3 yrs bond. Wala po akong copy ng salary table at di ko sure kung napirmahan ko po yon.. (sabi nila di po talaga nila pinapirmahan yon. pinakita lang… kasi un ang pangmarket nila.) Kapag magreresign po ako under the contract pwede po ba nila ako habulin kasi dapat tapusin ko muna ang contract? salamat po in advance.

    [Reply]

  73. Hello sir good afternoon!

    Just want to ask po if it is legal na magstart ka sa isang company without any contract signed?

    I started July 2, 2015 and September 18,2015 na binigay ang contract. I already applied po kasi sa ibang company and waiting for the job offer. What should I do po? thank you.

    [Reply]

  74. Hi po! trainee palang po ako sa isang bpo company, gusto ko na po umalis sa company kc d ko po kaya and working hours doon… we are required po kasi to work in a 48 compressed hour period for 5 days… kaso lang kahit lumampas ka dun dahil sa mga long calls wala kang OT pay… napapansin ko po na d na kinakaya ng katawan ko.. i dont want to risk my health… my question is as a trainee required din pi ba na magrender ng 30 days upon notice of resignation?

    [Reply]

  75. Good day!

    I have been hired as an HR assistant of an academic institution, without an existence of an HR officer. So all the HR tasks are dumped on me. My concern is that the employee turn-over rate of the school both on the faculty and admin staff is relatively high. The management wants to lower the turn-over rate by specifying on the appointment that the employees should render a specific number of years and would have to face penalties if they breach the contract. My question is, are we allowed to impose penalties if the employee breaches the contract? If not, what are probable solutions to our problem. Thank you so much for your time and I hope that you answer this query.

    Best regards,
    Yen

    [Reply]

  76. gudpm, just want to ask..i signed a 2 year contract bond, and now im planning to go abroad for work. ano po possible solution para makaalis ako sa current job ko??ok po ba ng magresign with 30 days notice???tnx po

    [Reply]

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