LABOR STANDARDS

Conditions of Employment
Hours of Work

Labor Law Review (2008)

Stellex Law Review Center
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Normal Hours of Work
 NORMAL HOURS: EIGHT (8) HOURS within workday  Hours of Work determine only the rates of pay, not the existence of an ER-EE relationship

 When payment of wages and benefits is not time-based, the labor standard does not apply.
 Workers/Employees Not Covered

1. 2. 3. 4. 5.

government employees managerial employees officers and members of the managerial staff field personnel members of the family of the employer who are dependent on him for support 6. domestic helpers 7. persons on the personal service of another 8. workers paid by result 2

 HOSPITAL PERSONNEL: EIGHT (8) HOURS for FIVE (5) DAYS for health personnel in cities and municipalities with a population of at least 1,000,000 or in hospitals or clinics with a bed capacity of at least 100 beds; the 40-hour workweek is designed to reduce health risks due to exposure to patients with contagious diseases. In exigencies, health personnel may be required to work for SIX (6) DAYS or FORTYBGHT (48 HOURS but they shall be paid an additional 30% of their regular wage on the sixth day.

 REDUCTION OF WORK HOURS: as a general rule a reduction which would involve the corresponding diminution of pay cannot be done unilaterally.
 COMPRESSED WORK WEEK: Reducing the workweek by prolonging the daily work hours without payment of overtime may be allowed provided the employees consent, there is no diminution of pay and such is approved by the POLE.

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An employee need not leave the premises of the workplace in order that his rest period shall not be counted. 4. may rest completely and may leave his workplace. all time spent for such work shall be considered as hours worked. if the work was with the knowledge of his employer or Immediate supervisor. 3. to go elsewhere whether within or outside the premises of his workplace. 2. All hours worked which the employee is required to be on duty or at the prescribed workplace and all the time.Hours Worked • Principles and Rules 1. which an employee is suffered or permitted to work. it being enough that he stops working. If the work performed was necessary or benefited the employer. or me employee could not abandon his work at the end of his normal working hours because he had no replacement. The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be considered time worked if the imminence of the resumption of work requires the employee's presence at the place of work or if the interval is too brief to be utilized effectively and gainfully in the 4 employee's own interest. .

however if the employee receives an emergency call outside his regular working hours and is required to travel to his regular place of work or to some other work site. • TRAVEL TIME: normal travel time from home to work is not compensable.• WAITING TIME: This is considered hours worked if waiting is an integral part of his work and the employee Is required or engaged by the employer to wait. all the time spent in such travel is worked time. 5 . or if the employee is required to remain on call in the employer's premises or close thereto that he cannot use the time effectively and gainfully for his own purpose.

voluntary. • ATTENDANCE AT MEETINGS: Attendance is not considered • POWER OUTAGE: Compensable if for short duration (20 minutes). hours worked when the attendance is outside of the employee's regular working hours. and the employee does not perform any productive work during such attendance.• ASSEMBLY TIME: where the assembly time is so structured. The employer may extend the work hours outside the regular schedules to compensate for the Interruptions without obligation for overtime pay. to give out work assignments and to brief the workers on their respective tasks. the same may be considered worked time. 6 . Into the workday. and. both as to duration and purpose. not compensable if the employees can leave their workplace or go elsewhere within or without the work premises. attendance is. since the time was used to check attendance. as to be an Integral part thereof. if more. in fact. the employees can use the time effectively for themselves.

The work of the employees does not involve strenuous physical exertion and they are provided with adequate coffee breaks. 7 . 5. 6.• MEAL/BREAK PERIODS: ONE (1) HOUR for regular meals. There will be no diminution whatsoever in the salary and other fringe benefits of the employees existing before the effectivity of the shortened meal period. 3. The employees voluntarily agree in writing to a shortened meal period and are willing to waive the overtime pay for such shortened meal period. 4.  Shortened Meal Break  Requisites: 1. 2. The value of benefits is equal to the compensation due them for the shortened meal period. Rest periods or coffee breaks running from 5-20 minutes shall be considered compensable time. The arrangement is of temporary duration. Overtime pay will become due and demandable if ever they are permitted or made to work beyond 4:30 pm.

or those who are paid a fixed amount for performance thereof. 8 . 2. Field personnel and other employees whose time and performance are unsupervised by the employer. Domestic helpers and persons in the personal service of another. Those of the government and any of its political subdivisions.• NIGHT SHIFT DIFFERENTIAL (ARTICLE 86): an additional TEN (10%) PERCENT of regular pay for work between 10:00 PM-6:00 AM  Employees not entitled to night shift differential: 1. purely commission basis. including those who are engaged on task or contract basis. Managerial employees as defined in Book III of the Labor Code. 4. 3. including government-owned and/or controlled corporations. 5. Those of retail and service establishments regularly employing not more than 5 workers.

members of the family of the employer who are dependent upon him for support.• OVERTIME WORK: Work beyond EIGHT (8) HOURS on ordinary working days shall be paid an additional TWENTY. non-agricultural field personnel. 6. THIRTY (30%) PERCENT of his holiday/rest day rate. domestic helpers and persons in the personal service of another. Proof of overtime work is required for the employee to be entitled to payment. government employees.FIVE (25%) PERCENT of the regular wage. workers who are paid by results (such as those paid on piece rate basis) 9 . managerial employees. Employees not entitled to overtime pay  1. 3. 4. on regular/special holidays and rest days. 2. 5.

Waiver of overtime pay is not allowed. Exceptions: • when the waiver is made in consideration of benefits and privileges which may be more than what will accrue to them in overtime pay • compressed workweek: 10   . No Off-setting of undertime with overtime (Art. 88)  Refusal to render overtime work agreed upon in the CBA may be deemed a “strike”.

Overtime Work • Work exceeding eight (8) hours of employee’s 24-hour workday • • • • Plus 25%/30% of basic/premium rate No off-setting of undertime/overtime Basis of computation is “cash” wage only Emergency Overtime Work may be required under the conditions set forth in Art. 11 . 89. except: • In consideration of better benefits • Compressed Workweek • Fixed Overtime • Refusal to render overtime work agreed upon in the CBA may be deemed a “strike”. • Waiver of Overtime Pay not allowed.

Rest Day • Rest period is 24 consecutive hours after every six (6) consecutive normal work days • Employee’s preference for religious reasons • Premium Pay 30% / 50% for special holiday work on employee’s rest day • CBA may stipulate for higher rates 12 .

Right to Weekly Rest Day • Employers are to provide every employee a rest period of not less than twenty four (24) consecutive hours after every six (6) consecutive normal work days • Emergency Rest Day work may be required under the conditions set forth in Art. 13 . 92.

Compensation for Rest Day. Sunday or Holiday Work • For work done on rest day. regular remuneration 2. agreed rest day {130%). work on Sunday. does not give any extra pay. 14 . unless the law on holiday pay is applicable Article 93 Article 94 REST DAY / SPECIAL HOLIDAY PAY: REGULAR HOLIDAY: additional ONE additional THIRTY (30%) PERCENT HUNDRED (100%) PERCENT of of regular pay for working on the regular wage (200%). the employer must pay the employee: 1. premium pay of 30% of the regular remuneration • An employee’s rest day can be any day of the week. and special holidays or special day. if it is not the employee’s rest day.

4. Field personnel and other employees whose time and performance are unsupervised by the employer. Those of the government and any of its political subdivisions. Those of retail and service establishments regularly employing less than 10 workers. purely commission basis. Domestic helpers and persons in the personal service of another. or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof. 2. 15 . 3.• Employees not entitled to Holiday Pay: 1. including those who are engaged on task or contract basis. including government-owned and/or controlled corporations. Managerial employees as defined in Book III of the Labor Code. 5.

• Rule on two successive Regular Holidays  Where there are 2 successive regular holidays. 16 . n which case he shall be entitled to the holiday pay if he worked on the day immediately preceding the rest day (Section 6. Implementing rules and Regulations)  Employees who are on leave with pay are entitled to holiday pay. Rule IV. he shall be deemed to be on leave of absence on that day. Implementing rules and Regulations) And where the day immediately preceding the holiday is the scheduled rest day of the employee. unless he works on the first holiday. Book III. Rule IV. Book III. an employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the first holiday. in which case he is entitled to his holiday pay on the second holiday (Section 10. like Holy Thursday and Good Friday.

Holiday Work • LEGAL HOLIDAY PAY (ARTICLE 94). for the unworked ELEVEN (11) HOLIDAYS under EO 203. • Premium pay is 200% of basic wage • Employee must be present on day immediately preceding regular holiday unless on leave of absence with pay • Excluded are retail/service establishments with less than ten (10) workers 17 . the employee is entitled to his regular pay.

Holiday Work Regular Holidays New Year’s Day Maundy Thursday Good Friday Araw ng Kagitingan Labor Day Independence Day National Heroes Day Bonifacio Day Eidul Ftr Christmas Day Rizal Day January1 Movable Movable April 9 May 1 June 12 Last Sunday (August) November 30 Movable December 25 December 30 18 .

Last Day of the Year Special Non-Working Holidays Special Public Holidays Special National Holidays Special Working Holiday • Workers are entitled only to their regular basic wage for work on this day • • • • • Day is actually considered a regular working day 19 .All Saints’ Day • December 31 .Holiday Work • • Special Days Nationwide Special Days • November 1 .

no pay" applies. On National Special Holidays (November I." December 31) and Local Special Holidays (Lopez Jaena. • Local Special Holidays. Evelio Javier) the principle of “no work. he shall be entitled to an additional FIFTY (50%) PERCENT of his regular pay (150%).Premium Pay for Rest Day/Holiday Work • REST DAY / SPECIAL HOLIDAY PAY: additional THIRTY (30%) PERCENT of regular pay for working on the rest day (130%). • SPECIAL HOLIDAY and REST DAY PAY: where the special holiday is also the employee's rest day. are generally regular working days and the employee is only entitled to his regular pay if he works. 20 . unless declared as “non-working".  There are two kinds of special holidays. national and local.

• REGULAR HOLIDAY: additional ONE HUNDRED (100%) PERCENT of regular wage (200%). • REGULAR HOLIDAY and REST DAY: additional ONE HUNDRED SIXTY (160%) PERCENT of regular wage (260%). • DOUBLE HOLIDAY: additional TWO HUNDRED (200%) PERCENT of regular pay(300%) 21 .

Service Incentive Leave • SERVICE INCENTIVE LEAVE (ARTICLE 95): FIVE (5) DAYS leave with pay. • The employee shall be entitled to SIL only after one (1) year of service. convertible to cash if unused. unlike the 13th Month Pay. Benefit no longer applies if the employee is already enjoying Vacation Leave with Pay for at least five (5) days. the computation of which should begin from the start of employment 22 .

Other Leave Benefits
• Maternity Leave (SSS) • Paternity Leave (RA No. 8187) • Married male employee • 7 days’, 1st 4 deliveries, lawful wife • Solo Parent’s (RA No. 8972) • Parental Leave, 7 days • Flexible Work Schedule
• Battered Woman Leave (RA No. 9262) • 10 days, extendible as necessary • Certification from prosecutor or Brgy officials that application for protection order has been filed

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Service Charges
(ARTICLE 96):
The Service Charges collected by, hotels, restaurants and similar establishments shall be distributed at the rate of EIGHTY-FIVE (85%) PERCENT to all covered employees and FIFTEEN (15%) PERCENT to Management. In case the Service Charge is abolished, the share of the employees based on the 12-month average preceding the abolition shall be integrated to their salary.

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13th-Month Pay
 ONE-TWELFTH

(1/12) total annual earnings on basic salary; "Commissions" are considered part of the basic salary if these are direct remuneration for services rendered. Right accrues from the fist day of employment

 Additional income based on wage but not part of the wage

 All rank-and-file employees regardless of their designation or

employment status and irrespective of the method by which their wages are paid, are entitled to this benefit, provided that they have worked for at least one month during the calendar year

 If the employee worked for only a portion of the year, the 13th month

pay is computed pro rata (in proportion to the length of time he 25 worked during the year)

Non-Diminution of Benefits Article 100 • Concept: • Benefits given to employees cannot be taken back or reduced unilaterally by the employer • Employer Practice / Policy • Grant of benefit over a long period of time • Practice is consistent and deliberate • Practice not due to error in construction or application of law 26 .

The employer erroneously computed the wage increases given to the employees.. the employer made salary deductions to recover the overpayment. and (4) the diminution or discontinuance is done unilaterally by the employer.R. (2) the practice is consistent and deliberate. (3) the practice is not due to error in the construction or application of a doubtful or difficult question of law. No. Feb. G. 13. •TSPIC CORPORATION VS. TSPIC EE’S UNION . Upon the discovery thereof. There is diminution of benefits when it is shown that: (1) the grant or benefit is founded on a policy or has ripened into a practice over a long period. 2008 27 . Diminution of benefits is the unilateral withdrawal by the employer of benefits already enjoyed by the employees. Does the employer’s act violate the principle of non-diminution of benefits? No. 163419.

102) Payment must be in legal tender only  Time of Payment (Art. except as otherwise provided by such regulations as the Secretary of Labor may prescribe under conditions to ensure greater protection of wages  Direct Payment of Wages to Worker(Art 105)  Force Majeure. 103) Wages shall be paid at least once every two(2) weeks or twice a month at intervals not exceeding sixteen (16) days  Place of Payment (Art. 104) Wages shall be made at or near the place of undertaking. to heirs without need of intestate proceedings 28 . to authorized representative  Death.Payment of Wages  Forms of Payment (Art.

106-109) Indirect Employer / Solidary Liability • Principal deemed “indirect employer” and solidarily liable with contractor for wages and other benefits of latter’s employees • Principal still liable even he paid proper wages/benefits to the contractor • Contractor may recover from Principal only if he has paid employees • Principal is not liable for illegal dismissal. unless there is conspiracy 29 . other violations.Job / Labor-Only Contracting (Arts.

The contractor must be duly licensed by DOLE. 30 . work premises and other materials. The contractor has substantial capital or investment in the form of tools/equipment. free from control and direction of his employer or principal in all matters connected with the performance of the work except as to the results thereof. 2. machineries. There should be a written contract between the contractor and the principal that will assure the employees at least the minimum labor standards and benefits provided by existing laws.Job/Labor Contracting • Permissible Job Contracting The contractor carries on an independent business and undertakes the contract work on his own account under his own responsibility according to his own manner and method. which are necessary in me conduct of business.  Conditions for Permissible Job Contracting 1.

2. Contracting out of positions vacated by regular employee. 3. 5. placement or any other agency which is not duly licensed as contractor. except when authorized by competent authority when justified by public Interest. 31 . Labor-only contracting. regardless of whether the dispute directly involves work stoppages. Contracting out of work or service performed by union members that interferes with. restrains or coerces employees in the exercise of their right to self-organization. and 6. Contracting out with recruitment.• Prohibited Activities 1. 4. Contracting out of work that will either displace employees of the principal employer or reduce their work hours and/or takehome pay. Contracting out of work or service that is directory related to the business and operation of the employer during the existence of a labor dispute involving his employees.

The contractor provides specific services or undertakes a specific job The principal is considered the direct employer under Article 106 in Labor-only Contracting The principal in Job Contracting is made jointly and severally liable for the payment of wages. and Other claims are included. What is provided is only manpower or personnel to work for the principal.JOB CONTRACTING There is no employer-employee relationship between the principal and the employees of the contractor LABOR-ONLY CONTRACTING Employer-employee relationship exists The principal Is considered only an "indirect'' employer under Article 107 of the Labor Code The principal in Job Contracting is made jointly and severally liable only. Other claims are not included. 32 . for the payment of wages.

for unpaid wages and other money claims in the event of bankruptcy • Not a lien on specific property/ies of the employer • Enforced during judicial proceedings for declaration of bankruptcy and liquidation of properties. 33 . 110) • Preferred Credit.Workers’ Preference (Art.

or is necessary or desirable as may be determined by the Secretary of Labor. • DEPOSIT FOR LOSS/DAMAGE (ARTICLES 114-115): no deposit from which to deduct loss or damage of tools. • WAGE DEDUCTION (ARTICLE 113): no deduction except for premium for insurance. or equipment supplied by employer except when such deposits are customary or authorized by business practice. union dues and authority to check-off with consent employee. Deductions can be made only after due process and the employee's responsibility therefore is established. 34 .Prohibition Regarding Wages • NON-INTERFERENCE IN DISPOSAL (ARTICLE 112): force or oblige employee to purchase merchandise or property from employer or make use of employer's service or store. when authorized by law or the Secretary of Labor. materials.

• FALSE REPORTING (ARTICLE 119): making false statements.• WITHHOLDING OF WAGES/KICKBACKS (ARTICLE 116): withholding of wages by force. • DEDUCTION TO ENSURE EMPLOYMENT (ARTICLE 117): deduction as consideration of a promise of employment or retention of employment • RETALIATORY MEASURES (ARTICLE 118): refusal to pay or reduction of pay as retaliation for the filing of complaint or giving of testimony by the employee against the employer. etc. 35 . intimidation. stealth. reports or records regarding wages. threats.

LABOR STANDARDS Conditions of Employment Wages Labor Law Review (2008) Stellex Law Review Center 36 .

BASIC LABOR STANDARDS • Minimum Wage • Overtime Pay • Rest Day Premium Pay • Premium Pay for Holiday Work • Holiday Pay • Night Shift Differential • Service Incentive Leave Pay • 13th Month Pay • Maternity / Paternity Leave • Solo Parent’s Leave • Battered Woman’s Leave • SSS Contributions • Retirement Pay 37 .

Basic Principles on Wages • No Work. No Pay (A fair day’s wage for a fair day’s labor) • Equal Pay for Equal Work • Ability to Pay Minimum Wage Immaterial • Non-diminution of benefits • Statutory benefits are apart from Contractual benefits 38 .

unless by Contract or Employer Policy Working Days * Rest Days ** Regular Holidays * Special Days ** 39 .The Calendar Year 301 (2) 51 (2) 11 2 365 (6) * Paid Days by Law ** Not Paid.

40 . Factor for wage conversion is 365 days • “Daily-Paid” – paid only for actual work days. Factor for wage conversion is 313. • The rule is that employees are “Daily-Paid”. 301. 262.Daily / Monthly Paid • “Monthly-Paid” – paid/deemed paid for all days. whether worked or unworked. 251 Difference is that unworked Rest Days are paid days for MonthlyPaid employees.

or commission basis. or other method of calculating the same. 41 . as determined by the Secretary of Labor and Employment. which is payable by an employer under a written or unwritten contract of employment for work done or to be done. task. or for services rendered or to be rendered and includes the fair and reasonable value.Wages • WAGE includes remuneration or earnings. of board. lodging and other facilities customarily furnished by the employer to the employee. whether fixed or ascertained on a time. however designated. capable of being expressed in terms of money. piece.

whether fixed or ascertained (time. piece or commission basis • Includes “facilities” and “Supplements” 42 .Wages • Article 97(f): Definition • Remuneration or earnings for work done or rendered services • Capable of being expressed in money. task.

Facilities / Supplements • Facilities • Items of expense necessary for worker’s and existence and subsistence. a supplement is addition to basic wage. special privileges/benefits over and above basic wages • Distinction: A facility is deductible from basic wage. The purpose. determines the nature of the item. 43 . family’s • Part of wage if supplied by employer • Supplements • Extra remuneration. not the kind.

• Facilities • Customarily furnished • Voluntarily accepted in writing by worker • Charged at fair / reasonable value • 70% of value of meals • Cost of operation / maintenance 44 .

• Supplements • Allowances • Commissions • Bonus • Part of basic wage by agreement / contract / employer policy 45 .

BONUS It is a supplement or employment benefit given under certain conditions. it cannot be considered part of the wage 46 . It is an amount granted voluntarily to an employee for his industry and loyalty which contributed to the success and realization of profits of the employer’s business. It is not demandable and enforceable obligation. an act of generosity. but it becomes so when it is made part of the wage or compensation It is part of the wage if it is an additional compensation which the employer promised to give without any conditions imposed for its payment but if it is paid only if profits are realized or a certain amount of productivity achieved.

contribution to success/profits • Generally. has become an employer policy (equity) or agreed upon in CBA or employment contract 47 . loyalty. not demandable (contingent) unless made part of wage (fixed amount).Bonus • An act of generosity • Reward for industry.

based on time and motion studies factoring minimum wage • Cash wage plus “facilities” • Compensation Package • Basic wage and “supplements”. set by law • Productivity: rate. based on contract or company policy 48 .Wages • Basic / Minimum Wage • Time-Based: factor is 8 hours.

• Minimum Wage Rates  Minimum Wage means the lowest wage rate fixed by the law that an employer can pay his employees  Paying less than the minimum wage is illegal and the complaint may be brought before the DOLE regional office or the Labor Arbiter 49 .

Those above the ceiling do not benefit from the wage increase.Methods of Wage Fixing 1. retail/service establishments employing not more than 10 employees. Those receiving wages above the floor minimum do not get an increase. new business enterprises. 3. EXEMPTION FROM WAGE INCREASES: An application may be filed with the Regional Tripartite Productivity Wage Board (RTPWB) by. SALARY CEILING: the wage increase is given to those who are receiving wages below the salary ceiling. distressed employers. FLOOR METHOD: an amount Is designated as the floor minimum below which the wage is illegal. 2. 50 . establishments adversely affected by natural calamities.

February 6. Instead. it granted an across-the-board wage increase of P15. Metrobank vs. 144322. The RTWPB did not set a wage level nor a range to which a wage adjustment or increase shall be added.May the RTWPB disregard the “Floor-Wage” or the “Salary-Ceiling” method to fix the minimum wage rates? No. In doing so. No. NWPC G.00 to all employees and workers of Region 2. the RTWPB exceeded its authority by extending the coverage of the Wage Order to wage earners receiving more than the prevailing minimum wage rate. 2007 51 . without a denominated salary ceiling.R. there are two ways of fixing the minimum wage: the "floorwage" method and the "salary-ceiling" method.

Planas Commercial vs. 121696. NLRC G. 1999 52 . it must be shown that the establishment is regularly employing not more than 10 workers and had applied for exemptions with and as determined by the appropriate Regional Board. 11.R. Feb. C. No.• Under what conditions may a retail/service establishment be exempted from the coverage of the minimum wage law? For a retail/service establishment to be exempted from the coverage of the minimum wage law.

provinces or industries therein and to issue the corresponding wage orders.Wage Studies. subject to guidelines issued by the Commission 53 . Wage Agreements and Wage Determination • National Wages and Productivity Commission -prescribes rules and guidelines for the determination of appropriate wages in the country • Regional Tripartite Wages and Productivity Boards -determines and fixes minimum wage rates applicable in their region.

the Regional Board proceeds to determine whether to issue the same or not.Only one Wage Increase every 12 months 54 .it shall take effect after 15 days from its complete publication in at least one newspaper of general circulation in the region . .an order issued by the Regional Board whenever the conditions in the region so warrant after investigating and studying all pertinent facts and based on the standards and criteria prescribed by the Labor Code.• Wage Order .

55 .• Standards/Criteria for Minimum Wage Fixing 1. 7. 2. Effects on employment generation and family income. Improvements in standards of living. The prevailing wage levels. 6. 4. Wage adjustment vis-à-vis the consumer price index. 9. The demand for living wages. 8. The need to induce industries to invest in the countryside. 5. 3. The cost of living and changes or increases therein. The needs of workers and their families. Fair return of the capital invested and capacity to pay of employers.The equitable distribution of income and wealth along the imperatives of economic and social development. and 10.

• Prohibition against Injunction - No preliminary or permanent injunction or temporary restraining order may be issued by any court. or other entity against any proceedings before the Commission or the Regional Boards. 56 . tribunal.

128) 1) Visitorial Power .Administration and Enforcement Visitorial / Enforcement Power (Art. to question any employee and investigate any fact. and the right to copy therefrom.Power of the Secretary of Labor or his duly authorized representatives to have access to employer’s records and premises at any time whenever work is being undertaken therein. wage order. condition or matter which may be necessary to determine violations or which may aid in the enforcement of the Labor Code and of any labor law. 57 . or rules and regulations.

58 . indorsement to the NLRC • order stoppage of work or suspension of operations for non-compliance of occupation and health standards when such poses grave and imminent danger to the health and safety of the workers in the workplace. • Issue writs of execution for underpayment of wages / benefits • Employer may contest inspection results within 7 days and if evidentiary issues are involved.2) Enforcement Power • Power to issue Compliance Orders for violation of labor standards and occupational health and safety standards. • Hearing shall be conducted to determine whether order will be lifted or not.

The aggregate money claim of each employee or househelper does not exceed P5. 129) 1. The claim is presented by an employee or a person employed in domestic or household service.000.  If there is question of reinstatement.000. or a househelper.00. 3. The claim arises from employer-employee relations. Philhealth and maternity benefits 59 . or if the claimant’s demand exceeds P5. social security. 4.00. the labor arbiter has jurisdiction over the case arising from employer-employee relations. Simple Money claims and Other Benefits (Art. 2. The claimant does not seek reinstatement. pursuant to Art. 217  EXCEPTION : Claims for employees’ compensation.Recovery of Wages.

000. 128 Who exercises power Matters Covered Amount of claim The Sec.00 Adjudicatory.ART. appealable to the NLRC within Five (5) Days Nature of decision/ Appeal Administrative. 129 Only the Regional Director or authorized hearing officers Money claims and benefits Aggregate claim of each complainant should not exceed P5. appealable to the Sec. of Labor 60 . of Labor or any “duly authorized representative” All matters affected by the Labor Code or any labor law No limit ART.

While the case was pending. The DOLE Director retains jurisdiction even the complaining employees had been already been dismissed. Jurisdiction is determined as f the date of the filing of the complaint. the employees were dismissed. Rizal Security & Protective Services Inc.vs. Feb. 2008 61 . Does the DOLE Director still have jurisdiction over the case since there is no more employer-employee relationship? •Yes.A complaint for routine inspection was filed by certain employees. 18. Maraan GR No. 124915.

Wage Distortion • Nature Mandated wage increase results in ELIMINATION of quantitative differences in the rates of pay. It is enough that a substantial difference is achieved. the distortion shall be the subject of mediation by the NCMB and compulsory arbitration by the NLRC. • Effect In organized establishments. the distortion shall be resolved through the grievance machinery and voluntary arbitration. in unorganized establishment. or SEVERE CONTRACTION of intentional quantitative difference in wage rates between and among employee groups in an establishment as to EFFECTIVELY OBLITERATE the wage distinctions in such wage structure based on SKILLS/ LENGTH OF SERVICE and OTHER LOGICAL BASES OF DIFFERENTIATION. The correction of the distortion does not require that the previous difference be restored in exactly the same amount. 62 .

Wage Distortion • Distortion issues are considered on regional basis. not wage distortion • Wage adjustments voluntarily initiated by employer not subject to wage distortion charge 63 . disparity of pay scales for the same or comparable jobs in different regions.

for Normal delivery. for pregnant women whether married or unmarried. for the first FOUR. SEVENTY-EIGHT (78) DAYS for Caesarian operation.  Paternity Leave (RA 8187) Leave with pay for SEVEN (7) DAYS for the first FOUR (4) deliveries of the legitimate spouse with whom he is cohabiting.Working Conditions for Special Groups of Employees • Employment of Women  Maternity Leave (RA 7322) Leave with pay for SIXTY (60) DAYS. 64 . (4) deliveries.

SPECIAL EMPLOYMENT (ARTICLE 138) -women working in nightclubs. Criminal action may be instituted under this provision. 2. DISCRIMINATION PROHIBITED (ARTICLE 135) -payment of lesser compensation. 3. 65 . Acts of Discrimination 1. massage parlors. study and scholarship grants. training. cocktail lounge and similar establishments under the effective control or supervision of the employee for a substantial period of time shall be consider an employee of said establishments. PREGNANCY (ARTICLE 137) -discharge or refuse admission back to work account of pregnancy. favoring male workers for promotion.

To discharge such woman on account of her pregnancy. To deny any woman employee the benefits provided for or to discharge any woman employed by him for the purpose of preventing her from enjoying any of the benefits provided under the LC. 66 . and 3. To discharge or refuse the admission of such woman upon returning to her work for fear that she may again be pregnant. -unlawful to require as condition for employment that a woman  Prohibited Acts 1. or separated. or to discharge. 2. Stipulation against Marriage (ARTICLE 136) shall not get married. discriminate or otherwise prejudice a woman on account of marriage. or to stipulate that upon getting married she shall be deemed resigned.

R. Apr 12/06 67 . (2) that there is a factual basis for believing that all or substantially all persons meeting the qualification would be unable to properly perform the duties of the job. Star Paper Corp. provided it is a Bona Fide Occupational Qualification. 164774. To justify a bona fide occupational qualification.Is a “No-Spouse / Anti-Nepotism” policy as a condition for hiring or continuous employment valid? What is the “reasonable business necessity rule”? Yes. v. the employer must prove two factors: (1) that the employment qualification is reasonably related to the essential operation of the job involved. and. No. Simbol G. There must be a compelling business necessity for which no alternative exists other than the discriminatory practice. The reasonableness of the policy (reasonable business necessity rule) is to be considered in this light.

Pedro was transferred to Butuan City. Sur. He fell in love and later married Betsy. Pedro was reminded of a possible conflict of interest that was proscribed by Glaxo’s policy which was stressed in Pedro’s employment contract. and that the policy restricts the employees right to marry.Is the policy of a pharmaceutical company prohibiting its employees from marrying employees of any competitor company valid? Pedro was a Med-Rep of Glaxo in Cam. Petitioner contends that the policy against employees marrying employees of competitor companies violates the equal protection clause of the Constitution because it creates invalid distinctions among employees on account only of marriage. he had to inform Glaxo which of them should resign from his or her job. Branch Coordinator of Astra. 68 . Even before their marriage. As he chose not tp comply. He defied the transfer and sued for constructive dismissal. He was then advised that should they marry. Glaxo’s competitor.

Glaxo also asserts that the policy does not prohibit marriage per se but only proscribes existing or future relationships with employees of competitor companies. relationship or interest in any competitor company that may conflict with their responsibilities to the company or which may influence their actions and decisions and consequently deprive Glaxo of legitimate profits. and is therefore not violative of the equal protection clause. The policy is also aimed at preventing a competitor company from gaining access to its secrets. It has a genuine interest to ensure that its employees avoid any activity.Glaxo argues that considering the nature of its business. the prohibition is based on valid grounds. procedures and policies. 69 .

Glaxo only aims to protect its interests against the possibility that a competitor company will gain access to its secrets and procedures. 162994. 2004 70 . manufacturing formulas. of Detailmen v.R. Glaxo’s right to protect its economic interests cannot be denied. September 17. In laying down the assailed company policy. Duncan Assn. The Constitution recognizes the right of enterprises to adopt and enforce such a policy to protect its right to reasonable returns on investments and to expansion and growth. G. Glaxo Wellcome Inc. No. The prohibition against personal or marital relationships with employees of competitor companies upon is reasonable under the circumstances because relationships of that nature might compromise the interests of the company.Held: Glaxo has a right to guard its trade secrets. marketing strategies and other confidential programs and information from competitors.

71 . regardless of whether the demand. Work. or otherwise requires any sexual favor from the other. or any other person who. or requirement for submission is accepted by the object of said Act. agent of the employer. demands. influence or moral ascendancy over another in a work or training or education environment. teacher. requests. coach. instructor. supervisor. Work.RA 7877 (Sexual Harassment Act of 1995) • Section 3. trainor. employee. Education or Training-related Sexual Harassment is committed by an employer. Education or Training-related Sexual Harassment Defined. having authority. request. professor. manager.

2. The above acts would result in an intimidating. or 3. or in granting said individual favorable compensation. sexual harassment is committed when: 1. The sexual favor is made as a condition in the hiring or in the employment. terms conditions. or the refusal to grant the sexual favor results in limiting. re-employment or continued employment of said individual. hostile. deprive or diminish employment opportunities or otherwise adversely affect said employee. or offensive environment for the employee. 72 . The above acts would impair the employee’s rights or privileges under existing labor laws.a) In a work-related or employment environment. segregating or classifying the employee which in any way would discriminate. promotions. or privileges.

training. 73 . or considerations. 2. allowance or other benefits. or who cooperates in the commission thereof by another without which it would not have been committed. or the payment of a stipend. or the granting of honors and scholarships. privileges. trainee or apprentice. 3. custody or supervision of the offender. Against one whose education. Against one who is under the care.  Any person who directs or induces another to commit any act of sexual harassment as herein defined. When the sexual favor is made a condition to the giving of a passing grade. hostile or offensive environment for the student. or 4. When the sexual advances result in an intimidating.b) In an education or training environment. shall also be held liable under this Act. sexual harassment is committed: 1. apprenticeship or tutorship is entrusted to the offender.

Employment of Minors • Minimum Employable Age (Art. only at such hours and days as determined by the Secretary of Labor  below 18 years. cannot be employed in hazardous or deleterious undertakings as determine by Secretary of Labor. 74 . or when child works directly for his parents or guardians and the employment does not interfere with his schooling  between 15-18 years. 139)  Below 15 years.

written contract approved by DOLE. • PUBLIC ENTERTAINMENT/CINEMA/TV:  employment does not involve ads or commercials promoting alcoholic beverages. employer. does not impair normal development.2 above are met.5. or exhibiting violence. cannot work in any public or private institutions. tobacco or its byproducts. health and morals. parent or guardian provides child with primary and secondary education prescribed by DECS.SPECIAL PROTECTION AGAINST CHILD ABUSE (RA 7658) • GENERAL PROHIBITION:  below 15 years. conditions in 6. Intoxicating drinks.2. and. • UNDER SUPERVISION OF PARENTS:  employment does not endanger child's life. 75 . safety.

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