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June 1, 2022

Business Law and Labor Law Updates

The topics below may be relevant to your daily activities, especially those which involve business law, labor law, and other legal areas of your business.


Licensing Agreement versus Franchising Agreement in the Philippines


Franchising Agreement is a written contract or agreement between two or more parties by which a Franchisor grants the Franchisee, the right to engage in the business of offering, selling, or distributing goods or services under a marketing plan/system/concept, for a certain consideration. Unless otherwise provided, said right includes the use of a trademark, service mark, trade name/business name, know-how, logo-type advertising, or other commercial symbols associated with a particular business (Department of Trade and Industry (DTI) Bureau Order 10-24, Series of 2010).

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Who are Eligible for Retirement Pay?


The Philippine Constitution states that it is the obligation of the State to adopt an integrated and comprehensive approach to health development which shall endeavor to make essential goods, health and other social services available to all the people at affordable cost. There shall also be priority for the needs of the underprivileged, sick, elderly, disabled, women and children (Art. 13 Sec. 11 of the 1987 Constitution). Aside from this, Article 15 Section 4 of the Constitution further declares that it is the duty of the family to take care of its elderly members while the State may design programs of social security for them. These are some of the state principles anchored to Article 302 (287) of the Labor Code of the Philippines which provides for the grant and coverage of Retirement Pay.

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A Guide to Starting a Micro Business in the Philippines


Republic Act No. 9178, otherwise known as, Barangay Micro Business Enterprises (BMBEs) Act of 2002, gives small-scale entrepreneurs the opportunity to start their businesses even with little capital. The said law recognizes that these small-scale entrepreneurs can help with the problem regarding much-needed employment and somehow alleviate poverty because they are given the chance to do business on their own, without having to deal with higher costs. It encourages growth with the setting of a micro business which can later turn into big enterprise.

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Things to Know About Illegal Recruitment


Illegal Recruitment is one of the major problems the Philippines is facing today. As recently reported (Read here), one-hundred fifty-one (151) minor girls bound for Saudi Arabia were rescued in an attempt to involve them in illegal recruitment in June to October 2018. Also, last August 2018, four (4) Filipinos bound to Germany were also rescued and in November 2018, six (6) women bound to be recruited as entertainers in South Korea were prevented from leaving after they presented fraudulent documents. Because of these recent instances, the Department of Justice (DOJ) and the officials of the Bureau of Immigration (BI) concerned launched an intensive campaign against Illegal Recruitment through strict compliance with the guidelines set by DOJ for leaving or exiting the country in December 2018 (Read here).

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