Unlawful Employment Penalties for Pregnant Worker: Contractual Fines and Legal Protections in the Philippines

In the Philippines, the rights and welfare of pregnant employees are safeguarded by the Constitution and various statutes, regulations, and issuances from the Department of Labor and Employment (DOLE). Employers who attempt to penalize pregnant workers—through contractual fines, dismissals, or other punitive measures—may be held legally accountable. Below is a comprehensive discussion of the legal framework governing these protections, the illegality of imposing penalties on pregnant employees, and the remedies available to aggrieved workers.

1. Constitutional Basis

The 1987 Philippine Constitution explicitly states that the State shall “protect working women by providing safe and healthful working conditions, taking into account their maternal functions” (Article XIII, Section 14). This constitutional directive underpins all labor and social legislation aimed at safeguarding women, including pregnant employees.

2. Labor Code of the Philippines

2.1. Non-Discrimination and Protection Against Dismissal

Article 135 (now renumbered under the Labor Code): Prohibits discrimination against women employees in terms of compensation, terms, and conditions of employment on account of sex or maternity.
Article 137 (formerly Article 137): States that it is unlawful for an employer to discharge a woman employee on account of her pregnancy, or while on maternity leave, or to discharge or refuse her re-employment within a specific period after childbirth when she is medically certified to resume work.

These provisions collectively mean that an employer cannot cite pregnancy as a reason to terminate employment or impose penalties, such as contractual fines. If an employer does so, it constitutes a violation of the Labor Code.

2.2. Maternity Leave and Benefits

While older versions of the Labor Code provided 60 days of maternity leave for normal delivery, the law has since been updated by Republic Act No. 11210 (Expanded Maternity Leave Law). Employers must respect and comply with these standards; imposing any penalty (monetary or otherwise) on a pregnant employee for availing of her maternity leave rights is unlawful.

3. Republic Act No. 9710 (Magna Carta of Women)

The Magna Carta of Women is a comprehensive law that seeks to eliminate discrimination against women. Relevant provisions include:

Section 13: Affirms women’s rights to safe and healthful working conditions, taking into account their maternal functions.
Prohibition of Discrimination: Covers a broad range of workplace policies, including hiring, promotion, and the provision of benefits. Employers cannot impose sanctions or discriminate based on pregnancy.

Under this law, any form of penalty or contract stipulation that adversely affects a pregnant worker purely because of her pregnancy or maternity leave can be deemed discriminatory and illegal.

4. Expanded Maternity Leave Law (Republic Act No. 11210)

Enacted in 2019, RA 11210 grants pregnant workers the following rights:

105-Day Paid Maternity Leave: For every instance of pregnancy, including live childbirth, miscarriage, or emergency termination of pregnancy.
Additional 15 Days: For solo parents, pursuant to the Solo Parents’ Welfare Act.
Optional Extension of 30 Days Without Pay: The employee must notify the employer in writing at least 45 days ahead if she intends to extend.

Employers are strictly prohibited from discouraging or penalizing a pregnant worker from availing of these benefits. Any attempt to impose a fine, terminate employment, or reduce benefits due to pregnancy or maternity leave would violate RA 11210 and could subject the employer to administrative or even criminal liability.

5. Contractual Fines and Other Unlawful Penalties

5.1. Nature of Unlawful Penalties

A contractual fine or any penalty in an employment agreement that is triggered specifically by a worker’s pregnancy or maternity leave is unenforceable. These may come in forms such as:

Deductions from salary if a worker becomes pregnant.
Fines or penalties tied to the employee’s need to go on maternity leave.
Clause demanding resignation upon pregnancy.

All these are considered discriminatory and are null and void from the outset because they contravene public policy and protective labor laws.

5.2. Legal Consequences for Employers

Administrative Sanctions: DOLE may impose administrative fines or sanctions on the employer for violating labor laws.
Criminal Liability: Certain severe or repeated violations may lead to criminal proceedings under the Labor Code and related laws.
Civil Liability: An employee may claim damages (e.g., back wages, moral damages, exemplary damages) if she suffers discrimination or illegal dismissal due to pregnancy.

6. Enforcement and Remedies for Aggrieved Pregnant Workers

6.1. Filing a Complaint with DOLE

Regional Office: A complaint can be filed at the DOLE Regional Office having jurisdiction over the workplace.
Mediation and Conciliation: DOLE often facilitates an initial conference where issues may be resolved amicably.
Enforcement Order: If the employer is found to be at fault, DOLE can issue an order compelling the employer to cease and desist from the unlawful practice and to provide restitution or other remedies.

6.2. National Labor Relations Commission (NLRC)

If the dispute involves illegal dismissal, non-payment of benefits, or other labor standard violations, the pregnant worker (or former worker) may file a case before the NLRC. Possible outcomes include:

Reinstatement: If the employee was illegally dismissed because of pregnancy, the employer may be compelled to reinstate her to the same or equivalent position.
Back Wages: The employee is entitled to wages she would have earned had she not been illegally dismissed.
Damages and Attorney’s Fees: The NLRC or labor arbiter may award moral and exemplary damages, as well as attorney’s fees, depending on the circumstances.

6.3. Court Action

In cases where administrative remedies are insufficient or if the dispute escalates, the pregnant worker can elevate the case to the regular courts, particularly if there are claims of serious misconduct by the employer or if there is a need to enforce constitutional rights. However, as a rule, labor-related disputes first undergo administrative and quasi-judicial processes at DOLE and NLRC.

7. Best Practices for Employers

Review Employment Contracts and Policies: Employers should ensure there are no provisions imposing penalties due to pregnancy or childbirth.
Comply with Leave Entitlements: Grant the mandated 105-day (or more) maternity leave and corresponding benefits.
Implement Non-Discriminatory Policies: Align human resource policies with RA 9710 (Magna Carta of Women) and RA 11210 (Expanded Maternity Leave Law).
Provide a Safe Work Environment: Make reasonable accommodations for pregnant workers, such as adjustments to workload or protective gear, if necessary.
Regular Training: Conduct seminars to educate management and staff on women’s rights, anti-discrimination laws, and the specific provisions for pregnant workers.

8. Practical Tips for Pregnant Workers

Document Everything: Keep copies of employment contracts, employee handbook, memos, and any communications regarding alleged penalties.
Know Your Rights: Familiarize yourself with the Expanded Maternity Leave Law, the Labor Code, and the Magna Carta of Women.
Seek Assistance: Contact DOLE, women’s rights NGOs, or legal aid offices if you believe your employer is imposing unlawful penalties.
File a Complaint Promptly: Timely action is crucial; delays may affect the outcome of your claim or ability to secure immediate relief.

9. Conclusion

In the Philippines, any contractual provision or employer practice that penalizes a pregnant worker is unlawful. The country’s laws—rooted in the Constitution, the Labor Code, the Magna Carta of Women, and the Expanded Maternity Leave Law—expressly prohibit discrimination on the basis of pregnancy. Employers who impose contractual fines or punishments on pregnant workers expose themselves to administrative, civil, and potentially criminal liability.

Pregnant workers have robust legal recourses, including filing complaints with the DOLE or the NLRC, and seeking judicial intervention when necessary. Ultimately, fostering a fair and supportive environment for pregnant employees is not only a legal obligation but also an ethical and socially responsible practice that benefits both employers and workers in the long run.