Philippine Labor Law Glossary

Find clear, source-backed explanations of Philippine employment, wages, working hours, resignation, dismissal, DOLE, SEnA and NLRC terms. Each entry explains the legal meaning, governing authority, evidence that may matter and the next guide or procedure to review.

Current coverage: The glossary now contains [lc_glossary_count] controlled Philippine labor-law terms, including the Employee Benefits and Leave, Payroll and Salary, Modern Work and Workplace Protection, and Collective Labor Relations expansions. Each entry connects its definition with the governing authority, evidence, related concepts and practical next steps.

How to use this glossary: Select any linked term below to open its complete explanation, including the legal basis, requirements, evidence, practical examples, related concepts and relevant LaborCode.ph guides.

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In English: Every term in this glossary carries a Filipino explanation, not just the English definition. Open any entry and look for the Ano ang …? section, which gives the plain-language version alongside the governing law and the related terms. For full-length guides written in Filipino, see Mga Gabay sa Labor Law sa Filipino.

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A

Abandonment

The deliberate and unjustified refusal of an employee to resume work, shown by absence without valid reason and clear overt acts indicating an intention to end the employment relationship.

Absenteeism

A pattern of unauthorized or unexcused absence from work that may support disciplinary action and, where deliberate and coupled with an intention not to return, may amount to abandonment.

Agricultural Minimum Wage

The minimum wage rate applicable to covered agricultural workers under the controlling regional wage order.

Allowance

A payment given on top of basic salary for a particular purpose such as transport, meals or cost of living, which may form part of the wage depending on how regularly and unconditionally it is given.

Analogous Causes

Other just causes for dismissal comparable to the grounds listed in Article 297 and involving a voluntary or willful act or omission.

Apprentice

A trainee under a registered enterprise-based training programme covering higher competencies. Since the Enterprise-Based Education and Training Framework Act took effect, apprenticeship is no longer governed by the Labor Code provisions that previously covered it.

Arbitration

Philippine labor law has two systems: compulsory arbitration before a Labor Arbiter of the NLRC, covering illegal dismissal, unfair labor practice and money claims; and voluntary arbitration before a Voluntary Arbitrator, covering unresolved grievances under a collective bargaining agreement.

Attendance

The record of an employee’s presence and hours at work. Keeping and preserving these records is the employer’s legal duty, and failure to produce them in a labour case carries an evidentiary cost.

Authorized Cause

A ground recognized by the Labor Code that may permit employer-initiated termination for business, operational or health reasons, subject to the specific legal requirements, notice and separation-pay rules.

AWOL

An unauthorized absence from work, treated as a disciplinary and company-policy matter that is not automatically the same as the legal doctrine of abandonment.

B

Backwages

Income and employment benefits awarded to compensate an employee for compensation lost because of illegal dismissal, generally computed under Article 294 and applicable Supreme Court rulings.

Bargaining Unit

The group of employees considered appropriate for collective bargaining because its members share a sufficient community or mutuality of interests.

Basic Salary

The regular compensation paid for services during normal working days and hours, excluding separate allowances and premium payments unless integrated into regular salary.

Bereavement Leave

Leave granted on the death of a family member. The Labor Code does not require it; it is normally a matter of company policy or a collective bargaining agreement, though specific statutes grant it to particular groups of workers.

Bona Fide

Good faith. In dismissal cases it is a separate requirement the employer must prove: the stated business reason must be genuine, and not a device for removing a particular employee.

Bonus

An amount given beyond what the law requires, which becomes demandable only when it is fixed by contract or a collective bargaining agreement, or has ripened into an established company practice.

Burden of Proof

The legal responsibility to establish a disputed fact with the required evidence, which may shift depending on whether the issue concerns employment status, the fact of dismissal or the validity of termination.

C

Casual Employment

Employment not covered by the regular, project or seasonal categories described in Article 295, subject to regularization with respect to the activity after at least one year of service.

Certificate of Employment

An employer-issued record stating an employee’s employment dates and type of work, which the employer must issue within three days after the employee requests it.

Certiorari

A special civil action under Rule 65 questioning grave abuse of discretion. It is the route from an NLRC decision to the Court of Appeals, and it is not an appeal.

Clearance

An employer’s exit process for checking property returns, accountabilities and turnover obligations before completing final separation records and payments.

Certification Election

A DOLE-supervised secret-ballot process used to determine the sole and exclusive bargaining agent of employees in an appropriate bargaining unit.

Closure or Cessation of Business

An authorized cause for termination when an employer genuinely ends all or part of its operations and satisfies the applicable notice, proof and separation-pay requirements.

Conciliation

A neutral, non-adjudicatory process in which a conciliator helps employees and employers explore a voluntary settlement without deciding the dispute for them.

Code of Conduct

The set of rules an employer adopts defining expected behaviour and the penalties for breach. No Labor Code article creates the power to issue one — it rests on management prerogative, and company rules bind both sides unless shown to be unreasonable.

Collective Bargaining Agreement

The negotiated contract between an employer and the employees’ legitimate bargaining representative concerning wages, hours and other employment terms in the bargaining unit.

Commission

Earnings computed as a percentage of sales or output, which form part of the wage for computing benefits where they are a regular and integral part of the employee’s pay rather than a purely contingent reward.

Compressed Workweek

A voluntary flexible schedule that distributes normal weekly hours over fewer workdays by extending daily hours, subject to labor standards and the no-diminution rule.

Constructive Dismissal

An involuntary separation caused by employer acts that make continued employment impossible, unreasonable or unlikely under the reasonable-person test applied in Philippine jurisprudence.

Contractualization

Popularly called endo, the practice of repeatedly hiring workers on short back-to-back contracts to keep them from reaching the length of service that would entitle them to regular employment.

Control Test

A legal test that focuses on whether the putative employer has the right to control not only the result of the work but also the means and methods used to perform it.

Cost-of-Living Allowance

A wage-related allowance intended to help employees meet increases in living costs, generally separate from basic wage unless legally or contractually integrated.

D

Daily Rate

The wage assigned to one normal workday, generally up to eight hours, fixed directly or derived from monthly salary using the proper divisor.

Data Privacy Act of 2012

The Philippine statute (RA 10173) that regulates how personal information is collected, processed and protected by government agencies and private organizations, enforced by the National Privacy Commission.

Data Protection Officer (DPO)

The individual an organization designates to monitor compliance with the Data Privacy Act of 2012, oversee personal-data processing, and serve as the accountable contact point for the National Privacy Commission and data subjects.

Day Off

In law the weekly rest day: the rest period of not less than twenty-four consecutive hours that every employer must provide after every six consecutive normal work days. The employer schedules it but must respect an employee’s preference based on religious grounds.

De Minimis Benefits

Minor fringe benefits of relatively small value that an employer may give free of tax, up to the peso ceilings set by the Bureau of Internal Revenue.

Department of Labor and Employment

The national executive department responsible for labor and employment policy, labor standards administration, workplace compliance and employment-related programs in the Philippines.

Diminution of Benefits

The prohibited unilateral reduction or withdrawal of an employee benefit that has become part of compensation through law, agreement or a deliberate and consistent company practice.

Double Pay

The common term for 200% of the employee’s basic wage for the first eight hours worked on a regular holiday.

Due Process

Due process in dismissal has two aspects. Substantive due process asks whether a valid cause existed; procedural due process asks whether the required notices and opportunity to be heard were observed. A dismissal can satisfy one and fail the other, and the consequence differs.

E

Economic Dependence Test

A jurisprudential test examining the economic realities of a work relationship and the worker’s dependence on the alleged employer.

Employment Contract

The express or implied, written or unwritten agreement under which an employee performs work for an employer in exchange for wages, subject to mandatory labor protections.

Employer-Employee Relationship

The legal relationship that brings a worker and an employer within Philippine labor protections, determined from the actual facts and applicable legal tests rather than contractual labels alone.

F

Final Pay

The total amount still due to an employee when employment ends, which may include unpaid salary, prorated benefits, convertible leave credits and other earned amounts less lawful deductions.

Fixed-Term Employment

Employment for a definite period that may be valid when the term was knowingly and voluntarily agreed upon and was not imposed to evade security-of-tenure protections.

Flexible Work Arrangement

An alternative work mode or schedule adopted by agreement while preserving minimum labor standards and existing benefits.

Floating Status

A temporary off-detail or layoff period during which an employee remains employed but is not assigned work because of a bona fide operational reason.

Four-Fold Test

A framework for determining an employer-employee relationship through selection and engagement, payment of wages, power of dismissal and the power of control.

Fourteenth Month Pay

An additional bonus-type payment on top of the mandatory thirteenth-month pay, not required by any general statute and owed only where company policy, a collective bargaining agreement or established practice grants it.

G

Graveyard Shift

The everyday Philippine term for an overnight work schedule, most often used of BPO and call centre work. It is not a term of art in the Labor Code or DOLE issuances; the pay rules come from the night shift differential and overtime provisions.

Grievance Machinery

The agreed workplace process for resolving disputes involving CBA interpretation or implementation and company personnel policies before voluntary arbitration.

Gross and Habitual Neglect

A just cause for dismissal requiring neglect that is both serious in degree and repeated over time, supported by substantial evidence and due process.

Gross Pay

The employee’s total earnings for a payroll period before deductions, including applicable regular pay and additional earnings.

H

Holiday Pay

The statutory payment generally due to covered employees for regular holidays, subject to Labor Code coverage, attendance and implementing-rule requirements.

Hourly Rate

The wage assigned to one hour of work and used to compute overtime, night shift differential and partial-day pay.

I

Illegal Dismissal

An employer-initiated termination that lacks a lawful just or authorized cause, or otherwise fails the substantive legal requirements governing dismissal.

Immediate Resignation

A resignation that takes effect without completing the usual one-month notice period because the employer waives notice or the employee relies on a just cause recognized by Article 300 of the Labor Code.

Independent Contractor

A person or business that undertakes work on its own account and controls the manner and means of performance, rather than working as an employee under the actual legal relationship.

Internship

A training arrangement in which a student undertakes practical work as an academic requirement. A genuine intern is not an employee, but that status is conditional: an arrangement that functions as production work or as a hiring trial can be treated as employment.

J

Job Order Employee

A worker engaged by a government agency for piece-work, intermittent or output-based services, without the employer-employee relationship, appointment status or security of tenure of a regular government employee.

Job Description

The written statement of the duties attached to a position, relied on in assessing regular status, the validity of a transfer or redundancy, and whether an instruction falls within the scope of the work.

Just Cause

A ground under Article 297 that may permit an employer to dismiss an employee for a serious culpable act or omission, subject to substantial evidence, proportionality and procedural due process.

K

Kasambahay

A domestic worker performing household tasks such as cooking, cleaning, laundry, childcare or eldercare, expressly covered by Republic Act No. 10361, the Domestic Workers Act.

L

Labor Arbiter

An NLRC adjudicator who hears and decides labor disputes within the original and exclusive jurisdiction assigned by the Labor Code and applicable procedural rules.

Labor as a Primary Social Economic Force

The constitutional declaration that labor is not merely a factor of production but a social and economic force the State must protect, guiding how courts apply labor legislation.

Labor-Only Contracting

A prohibited contracting arrangement in which the contractor fails the applicable capital, investment, business-independence or control tests, potentially making the principal the workers’ direct employer under the law.

Labor Union

An employee organization formed wholly or partly for collective bargaining or for dealing with employers about terms and conditions of employment.

Laches

Loss of a claim through unreasonable and unexplained delay. In labor cases it generally cannot defeat a complaint that was filed within the statutory prescriptive period.

Leave Without Pay

An approved unpaid absence whose legal basis usually comes from a statute, contract, company policy, collective agreement or the employer’s written approval.

Lockout

An employer’s temporary refusal to furnish work because of an industrial or labor dispute, subject to strict lawful grounds and procedures.

Loss of Trust and Confidence

A just cause for dismissal based on a willful breach of trust by an employee occupying a position of trust and confidence, supported by substantial evidence and connected to the employee’s duties.

M

Management Prerogative

The employer’s authority to direct and organize the business and workforce, subject to law, contracts, collective agreements, good faith and protection against unfair or discriminatory action.

Maternity Leave

The statutory leave benefit for qualified female workers covering childbirth, miscarriage or emergency termination of pregnancy under the Expanded Maternity Leave Law.

Lunch Break

The meal period of not less than sixty minutes required under Article 85 of the Labor Code, which is generally unpaid and not counted as hours worked.

Med-Arbiter

A DOLE officer authorized to hear and decide representation cases, inter- and intra-union disputes and related labor-relations matters.

Medical Certificate

A physician’s written statement of an employee’s condition or fitness to work, commonly required to support sick leave, an SSS sickness benefit claim, or termination on the ground of disease.

Minimum Wage

The lowest lawful basic wage set by the applicable regional wage order, with coverage determined by the employee’s location, industry, establishment classification and other legally relevant factors.

Money Claim

A demand arising from employment for unpaid wages, benefits, damages or other monetary entitlements, with jurisdiction depending on the claim’s nature, amount and accompanying relief.

Moral and Exemplary Damages

Separate monetary awards in an illegal dismissal case, recoverable only where the dismissal was attended by bad faith, fraud or malice, and not merely because it was found illegal.

N

National Labor Relations Commission

The quasi-judicial labor agency that resolves specified employment disputes through Labor Arbiters and the Commission’s appellate divisions.

Net Pay

The amount actually payable to an employee after lawful deductions are subtracted from gross pay.

Night Shift

Work performed between ten o’clock in the evening and six o’clock in the morning. Every covered employee must be paid a night shift differential of not less than ten percent of the regular wage for each hour worked within that window.

Night Shift Differential

Additional compensation for covered work performed between 10:00 p.m. and 6:00 a.m., generally equivalent to at least ten percent of the employee’s regular wage for each qualifying hour.

Normal Hours of Work

The ordinary working hours governed by the Labor Code’s general eight-hour workday rule.

Notice Period

The interval between written resignation notice and the effective separation date, generally one month unless the employer waives it or the employee has a lawful basis for immediate resignation.

Notice to Explain

The first written due-process notice identifying the specific charge and supporting facts and giving the employee a reasonable opportunity to respond before a disciplinary decision.

O

Occupational Safety and Health

The laws, standards, programs and workplace measures used to prevent work-related injury, illness, disability and death.

Overtime Pay

Additional compensation for covered work beyond eight hours in a workday, with the applicable premium depending on whether the work occurs on an ordinary day, rest day or holiday.

P

Pag-IBIG Contribution

The mandatory monthly payment to the Home Development Mutual Fund under Republic Act No. 9679, shared between employee and employer, computed on a salary base that is capped for the standard maximum contribution.

Paternity Leave

The seven-day paid leave for a qualified married male employee covering the first four deliveries of his legitimate spouse with whom he is cohabiting.

Payslip

An employer-issued payroll statement showing earnings, deductions and the amount paid for a specific payroll period.

Per Diem

A fixed daily amount, usually for expenses on assignment. Philippine labor law has no per diem rule; what matters is whether it reimburses a cost or pays for work.

Pre-Shift Overtime

Compensable work performed before a scheduled shift that may qualify for overtime when covered work exceeds normal statutory hours.

Premium Pay

Additional compensation for covered work performed on a rest day or special non-working day, distinct from regular holiday pay and overtime pay.

Prescription

The legal time limit for filing an employment-related claim or action, with the applicable period depending on the nature of the claim.

PhilHealth Contribution

The mandatory monthly premium for the National Health Insurance Program, shared between employer and employee, deducted from salary and remitted by the employer. Coverage is automatic and a member’s benefits are not forfeited by an employer’s failure to remit.

Preventive Suspension

A temporary protective measure that may remove an employee from the workplace when continued presence poses a serious and imminent threat, rather than a disciplinary penalty by itself.

Prima Facie

Evidence sufficient on its face to require an answer from the other side. It shifts the obligation to respond; it does not by itself decide the case.

Probationary Employment

Employment for a trial period, generally not exceeding six months, during which reasonable regularization standards must ordinarily be disclosed when the employee is engaged.

Project Employment

Employment for a specific project or undertaking whose scope and completion are determined and made known when the employee is hired.

Pro Rata

In proportion. The method behind thirteenth-month pay for a partial year, though it does not apply to service incentive leave, which requires a full year of service first.

Q

Quantum Meruit

Recovery of the reasonable value of services where no enforceable contract fixes the price. In Philippine practice it covers contractors and attorney’s fees, not employee wage claims.

Quasi-Judicial

Describing a body that receives evidence and decides disputes without being a court. Labor Arbiters and the NLRC are the principal Philippine labor examples.

Quitclaim

A release or waiver of employment claims that may be enforced when voluntarily executed, free from fraud or coercion and supported by reasonable consideration.

R

Rank-and-File Employee

An employee who is neither managerial nor supervisory, with no authority to lay down or execute management policies or to effectively recommend personnel actions.

Redundancy

An authorized cause for termination when a position has become superfluous, subject to good faith, fair selection criteria, proper notice and separation pay.

Regional Minimum Wage

The minimum wage rate prescribed for covered workers in a particular Philippine region under the regional wage-setting system.

Promotion

Advancement to a position of greater responsibility, usually with higher pay. An employee may decline a promotion, and a demotion presented as a transfer may amount to constructive dismissal.

Regular Employment

Employment involving work usually necessary or desirable in the employer’s business, or certain initially casual work performed for at least one year with respect to the activity.

Regular Holiday

A day on which the Labor Code entitles a worker to be paid the regular daily wage even without working; an employee who does work is paid twice the regular rate. The statutory exception is retail and service establishments regularly employing fewer than ten workers.

Reinstatement

The restoration of an illegally dismissed employee to the former or a substantially equivalent position without loss of seniority rights and other privileges.

Request for Assistance

The filing that starts the Single Entry Approach conciliation-mediation process for the possible settlement of a labor or employment issue.

Resignation

The voluntary act of an employee who clearly intends to relinquish employment, ordinarily subject to written notice unless a lawful exception or employer waiver applies.

Retirement Age

The age set by a valid retirement plan, agreement or law; under the private-sector statutory fallback, 60 is optional retirement and 65 is compulsory retirement.

Retirement Pay

The minimum benefit due to a qualified employee who retires under a valid plan or the statutory conditions established by Republic Act No. 7641.

Retrenchment

An authorized-cause termination used in good faith to prevent substantial actual or reasonably imminent business losses, subject to proof, notice, fair selection and separation-pay requirements.

S

Salary Differential

The employer-paid difference between a covered employee’s full salary and the SSS maternity cash benefit during statutory maternity leave.

Safe Spaces Act

Republic Act No. 11313, which prohibits gender-based sexual harassment in public spaces, online platforms, workplaces and educational or training institutions.

Seasonal Employment

Employment tied to work performed only during a recurring season, with repeated engagement potentially creating regular seasonal status.

Security of Tenure

The constitutional and statutory protection against termination except for a lawful cause and with the required procedural safeguards.

Separation Pay

A statutory or equitable payment due in specified termination situations, distinct from final pay, backwages and other earned compensation.

Serious Misconduct

Grave, work-related and wrongful conduct that may constitute just cause for dismissal when supported by substantial evidence and due process.

Service Charge

The mandatory percentage collected by hotels, restaurants and similar establishments, which Republic Act No. 11360 requires to be distributed completely and equally among covered employees — all employees except managerial ones, whatever their employment status.

Service Incentive Leave

The statutory five-day paid-leave benefit generally available to covered employees after at least one year of service, subject to coverage rules and cash conversion.

Sexual Harassment

Unlawful sexual conduct in employment, including authority-based demands for sexual favors and broader gender-based sexual harassment prohibited in the workplace.

Sick Leave

An employer-granted or collectively agreed leave benefit used during illness; private-sector law generally does not require a separate sick-leave bank beyond applicable service incentive leave.

Single Entry Approach

DOLE’s mandatory 30-day conciliation-mediation mechanism for attempting to resolve labor issues before formal adjudication.

Solo Parent Leave

Up to seven working days of paid parental leave each year for a qualified solo parent employee with at least six months of service and a valid Solo Parent Identification Card.

Solutio Indebiti

The duty to return what was paid by mistake. It gives an employer a claim to a salary overpayment, but not a right to deduct it from wages.

Special Leave for Women

Two months of leave with full pay for a qualified woman employee following surgery caused by a gynecological disorder, subject to the statutory service requirement.

Statutory Minimum Wage

The lowest wage floor fixed under Philippine wage law that an employer may lawfully pay a covered worker.

Strike

A temporary stoppage of work caused by concerted employee action because of an industrial or labor dispute, subject to lawful grounds and procedures.

Special Non-Working Holiday

A day declared by law or proclamation on which the “no work, no pay” principle applies. An employee who does not work is not entitled to pay unless a company policy, practice or collective bargaining agreement grants it.

SSS Maternity Benefit

The cash benefit paid by the Social Security System to a qualified female member for childbirth, miscarriage or emergency termination of pregnancy, administered under the SSS charter alongside the expanded maternity leave law.

SSS Sickness Benefit

The daily cash allowance paid by the Social Security System to a qualified member who cannot work because of sickness or injury, subject to notification and confinement requirements.

Substantial Evidence

The amount of relevant evidence that a reasonable mind might accept as adequate to support a conclusion in a labor case.

T

Telecommuting

A voluntary private-sector arrangement that allows an employee to work from an alternative workplace through telecommunications or computer technology.

Thirteenth-Month Pay

The statutory benefit generally equal to at least one-twelfth of a covered rank-and-file employee’s basic salary earned during the calendar year.

Turnover

The orderly handover of work, records, responsibilities and company property during separation, distinct from clearance and statutory final-pay or COE rights.

Suspension

The temporary removal of an employee from work, either as a disciplinary penalty imposed after due process or as a preventive measure where the employee’s continued presence poses a serious and imminent threat.

Tardiness

Lateness in reporting for work, which may be a ground for discipline and may be deducted from pay only using the correct hourly rate and accurate time records.

Twin-Notice Rule

The procedural requirement of a detailed first notice, a meaningful opportunity to answer and a written decision notice before just-cause termination.

U

Unfair Labor Practice

Prohibited employer or labor-organization conduct that violates self-organization or collective-bargaining rights and disrupts industrial peace.

Underpayment of Wages

Paying an employee less than the amount legally due under applicable wage, payroll or labor-standard rules.

Undertime

The period when an employee works fewer than the required hours in a workday; it cannot be offset against overtime performed on another day.

Union Security Clause

A CBA provision requiring covered employees to acquire or maintain union membership as a condition affecting continued employment, subject to legal safeguards.

V

Vacation Leave

A paid time-off benefit usually created by company policy, contract or collective agreement; private-sector law generally relies on service incentive leave rather than requiring a separate vacation bank.

VAWC Leave

Up to ten days of paid leave for an employed victim-survivor addressing medical or legal concerns connected with a case under Republic Act No. 9262.

Voluntary Arbitration

A labor-dispute process in which the parties select an impartial arbitrator or panel to decide submitted issues through a final and binding award.

W

Wage

Remuneration or earnings payable by an employer to an employee for work done or services rendered under Article 97 of the Labor Code.

Wage Deduction

An amount taken from employee earnings only under authority recognized by law, regulation or a valid allowed arrangement.

Wage Distortion

The elimination or severe contraction of intentional pay differences between employee groups after a prescribed wage increase.

Wage Order

A formal regional wage-board issuance prescribing minimum wage rates and related coverage rules.

Waiver

A written relinquishment of a claim. Waivers and quitclaims in labor cases are examined closely and may be set aside where the consideration is unconscionable or consent was not freely given.

Willful Disobedience

Intentional refusal of a reasonable, lawful and known work-related order with a wrongful and perverse attitude.

Work From Home

An arrangement where work is performed away from the employer’s premises, governed principally by Republic Act No. 11165, the Telecommuting Act, under which telecommuting employees are entitled to treatment no less favourable than comparable employees working on site.

Workplace Accident

An unexpected event arising out of and in the course of employment that causes or may cause injury, illness, disability, death or property damage.

Workplace Harassment

Repeated or serious conduct in the world of work that causes or is likely to cause physical, psychological, sexual or economic harm.

Glossary Methodology

LaborCode.ph uses one canonical page for each legal term. Acronyms, former terminology and common workplace expressions are stored as aliases instead of being published as competing pages. Definitions follow the source hierarchy of the Constitution, Labor Code and statutes, Supreme Court decisions, and official DOLE or agency issuances.

A glossary entry is not a substitute for a complete legal guide. It answers definition intent quickly, identifies the governing rule and evidence, and links readers to the fuller guide, procedure, calculation or document that may help with the next practical step.

Disclaimer

Sources rechecked as of: August 6, 2026

This glossary is for general educational and legal-information purposes and is not legal advice. LaborCode.ph is independent and is not a government website, tribunal or law firm.