LABOR 1

Page 1 of 13

4. Conditions of Employment
A. Hours of Work 1. Regulation; Rationale  Not only to safeguard the health and welfare of the laborer or employee BUT in a way, to
minimize unemployment by forcing employers, in cases where more than 8hour operation is necessary, to utilize different shifts of laborers or employees working only for 8 hours each (Manila Terminal Co, Inc v CIR) MANILA TERMINAL CO. INV v CIR (1952; Paras, C.J.) QUICK FACTS: ISSUE: HELD & RATIO:

2. Coverage
Art 82 Coverage. – The provisions of this Title shall apply to employees in all establishments and undertakings whether for profit or not, EXCEPT: 1. Government employees 2. Managerial employees 3. Field personnel 4. Members of the family of employer who are dependent on him for support 5. Domestic helpers 6. Persons in the personal service of another 7. Workers who are paid by results, as determined by the DOLE Sec in appropriate regulations Par 2: definition of “managerial employees” Par 3: definition of “field personnel”

Exemptions to application of hours of work
a. Government Employees Art 276 Terms and conditions of employment of all govt employees, including employees of GOCC, shall be governed by Civil Service Law, rules and regulations. Their salaries shall be standardized by the Congress as provided for in the Consti. However, there shall be no reduction of existing wages, benefits and other terms and conditions of employment being enjoyed by them at the time of the adoption of this Code. Sec 2 (1), Art IX-B Consti The civil service embraces all branches, subdivisions, instrumentalities, and agencies of the Government, including GOCC with original charters.  N.B. PNOC Energy Dev’t Corp v NLRC - the test whether a GOCC is subject to CSL is its manner of creation, i.e. if created by own special charter, CSL; if created by general incorporation law, Labor Code applies Sec 2(a), Rule 1, Book III, OR Government Employees whether employed by the Nat’l Gov’t or any of its political subdivision, including those employed in GOCC. a. Managerial Employees 2nd Par, Art 82 Refers to those: 1. whose primary duty consists of the management of the establishment in which they are employed or of a department or a subdivision thereof, and 2. other officers or members of the managerial staff Art 212 (m) “Managerial employee” is one who is vested with the powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline (HTSLRDAD) employees  in connection with Labor Relations (LR) issues “Supervisory employees” are those who, in the interest of the employer, effectively recommend such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment.

LABOR 1

Page 2 of 13
Azucena says: Supervisors are not managers (for LR purposes, can join/assist labor unions) but they are managerial staff (for purposes of employment benefits, not entitled to overtime pay or rest day or holiday pay)

Sec 2(b), Rule 1, Book III, OR Managerial employees, if they meet all the following conditions 1. Primary duty consists of the management of the establishment in which they are employed or of a department or a subdivision thereof 2. Customarily and regularly direct the work of two or more employees therein 3. Have authority to fire or hire employees of lower rank; their suggestions and recommendations as to hiring and firing and as to the promotion or any other change of status of other employees, are given particular weight Sec 2(c), Rule 1, Book III, OR Officers or members of a managerial staff, if they perform the ff duties and responsibilities 1. Primary duty consist of the performance of work directly related to management policies of their employers 2. Customarily and regularly exercise discretion and independent judgment 3. A. Regularly and directly assist a proprietor or a managerial employee whose primary duty consists of the management of the establishment in which he is employed or subdivision thereof B. Execute under general supervision work along specialized or technical lines requiring special training, experience, or knowledge C. Execute, under general supervision, special assignments and tasks 4. Do not devote more than 20% of their hours worked in a work week to activities which are not directly and closely related to the performance of the work described in Par 1, 2 and 3. INTERNATIONAL PHARMACEUTICALS INC v NLRC (1998;) QUICK FACTS: ISSUE: HELD: DOCTRINE: a. Field Personnel 3rd Par, Art 82 refer to non-agricultural employees who: • Regularly perform their duties away from the principal place of business or branch office of the employer and • Whose actual hours of work in the field cannot be determined with reasonable certainty Sec 2(f), Rule 1, Book III, OR Non-agricultural personnel: • Regularly perform their duties away from the principal or branch office or place of business of the employer • Whose actual hours of work in the field cannot be determined with reasonable certainty MERCIDAR FISHING CORP v NLRC (1998; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: DOCTRINE: Fishermen are not “field-personnel.” FAR EAST AGRICULTURAL SUPPLY INC v LEBATIQUE (2007; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: DOCTRINE: Drivers are not “field personnel.” a. b. Dependent Family Members – workers who are family members of the employer, and dependent on him for their support, outside the coverage of this Title on working conditions and rest periods. Domestic Helpers Art 141 “Domestic or household service” shall mean service in the employer’s home which is usually necessary or desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and convenience of the members of the employer’s household, including service of family drivers. Azucena says:

LABOR 1
– –

Page 3 of 13
If house personnel is hired by a ranking company official, a foreigner but paid for by the company itself, to maintain a staff house provided for the official, are not the latter’s domestic helpers but regular employees of the company. Waiters of a hotel are not domestic servants or persons in the personal service of another.

Art 145 Assignment to Non-Household Work. No household helper shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage salary rate lower than that provided for agricultural or nonagricultural workers as prescribed therein. – Azucena further discusses related and supplementary CC provisions (Art 1689 to Art 1699) which is more appropriately discussed under “Working Conditions for Special Group of Workers” Sec 2(d), Rule 1, Book III, OR “Domestic servants” and “persons in the personal service of another” if they perform such services • In the employer’s home • Which are usually necessary or desirable for the maintenance and enjoyment thereof • Minister to the personal comfort, convenience or safety of the employer as well as the members of his employer’s household a. Persons in the Personal Service of Another Sec 2(d), Rule 1, Book III, OR “Domestic servants” and “persons in the personal service of another” if they perform such services • In the employer’s home • Which are usually necessary or desirable for the maintenance and enjoyment thereof • Minister to the personal comfort, convenience or safety of the employer as well as the members of his employer’s household Piece Workers Sec 2(e), Rule 1, Book III, OR Workers who are paid by results, including those who are paid on piece-work, “takay,” “pakiao” or task basis, and other non-time work if their output rates: • Are in accordance with the standards prescribed under Sec 8, Rule 7, Book III (?) of these regulations • OR where such rates have been fixed by the DOLE Sec in accordance with aforesaid section – Azucena says: They are paid based on the completion of the work OR results, and NOT on the time spent in working.

a.

LABOR CONGRESS v NLRC (1998; Ponente) QUICK FACTS: ISSUE: HELD & RATIO:

3. Normal Hours of Work
Art 83 Shall not exceed eight (8) hours a day. HEALTH PERSONNEL – include resident physicians, nurses, nutritionists, dieticians, pharmacists, social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital or clinic personnel. • If : (1) with population of at least 1M OR (2) hospitals/clinics with a bed capacity of at least 100  hold regular office hours for 8 hours a day, 5 days a week, exclusive of time for meals • EXCEPT: Exigencies of the service require that such personnel work for 6 days or 48 hours  entitled to an additional compensation of at least 30% of their regular wage for work on sixth day – Azucena says: Health personnel in government service are excluded from coverage of Art 82 to Art 96. But their work hours, night shift differential pay and other employment benefits are specified in RA 7305.

4. Compensable Hours of Work – In General
a. On Duty Art 84 (a) All time during which an employee is: i. Required to be on duty Sec 3 (a), Rule 1, Book III, OR All time during which an employee is: i. Required to be on duty

LABOR 1
ii. To be at a prescribed work place

Page 4 of 13
ii. To be at the employer’s premises iii.To be at a prescribed work place

Sec 4 (a), Rule 1, Book III, OR To be considered hours worked; All hours are hours worked which the employee is required to give his employer, regardless of WON such hours are spent in productive labor or involve physical or mental exertion a. At work Art 84 (b) All time during which an employee is suffered or permitted to work Sec 3 (b), Rule 1, Book III, OR All time during which an employee is suffered or permitted to work

1. Specific Rules on Hours of Work
a. Rest Period i. Short duration or “coffee break” Art 84, Par 2 Rest periods of short duration during working hours shall be counted as hours worked.  compensable 2nd Par, Sec 7, Rule 1, Book III, OR Rest periods or coffee breaks running from 5 to 20 min shall be considered as compensable working time. ii. More than 20 min Sec 4 (b), Rule 1, Book III, OR To be considered hours worked; An employee need not leave the premises of the work place in order that his rest period shall not be counted, it being enough that: i. He stops working ii. May rest completely iii.May leave his work place, to go elsewhere, whether within or outside the premises of his work place a. Meal Period i. Regular meal period (one hour) Art 85 Subject to such regulations as the DOLE Sec may prescribe, it shall be the duty of every employer to give his employees not less than 60 minutes time-off for their regular meals. – Azucena says: Meal time is not compensable except in cases where lunch period/meal time is: ○ predominantly spent for the employer’s benefit ○ where it is less than 60 minutes (rest period) ○ work is continuous or not broken – 1st Par, Sec 7, Rule 1, Book III, OR Every employer shall give his employees, regardless of sex, not less than 1 hour time-off for regular meals… PAL v NLRC (1999; Ponente) QUICK FACTS: Dr. Fabros left his clinic ISSUE: HELD & RATIO: i. Shorter meal period (less than one hour but not less than 20 min)  If “meal time” is less than 20 min, it becomes only a “rest period” which under 3rd Par, Sec 7 should be considered working time 1st Par, Sec 7, Rule 1, Book III, OR (Exception to regular meals) … Meal period of not less than 20 minutes may be given by the employer provided that such shorter meal period is credited as compensable hours worked of the employee: a. Work is non-manual work in nature OR does not involve strenuous physical exertion b. Establishment regularly operates not less than 16 hrs/day c. (1) Actual or impending emergencies

LABOR 1

Page 5 of 13
(2) Urgent work to be performed on machineries, equipment or installations to avoid serious loss which the employer would otherwise suffer Work is necessary to prevent serious loss of perishable goods

d. a.

Waiting Time Sec 5 (a), Rule 1, Book III, OR Waiting time spent by an employee shall be considered as working time IF: • Waiting is an integral part of his work (e.g. driver who has to wait at or near jobsite for goods to be loaded) • Employee is required or engaged by the employer to wait

Azucena says: The controlling factor is whether waiting time spent in idleness is so spent predominantly for the employer’s benefit or for the employee’s

ARICA v NLRC (1989; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: a. On Call Sec 5 (b), Rule 1, Book III, OR • WORKING WHILE ON CALL: Employee required to remain on call in the employer’s premises or so close thereto that he cannot use the time effectively and gainfully for his own purpose • NOT WORKING WHILE ON CALL: Employee not required to leave word at his home or with company officials where he may be reached Inactive due to work interruption Sec 4 (d), Rule 1, Book III, OR The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be considered working time either if: • The imminence of the resumption of work requires the employee’s presence at the place of work • The interval is too brief to be utilized effectively and gainfully in the employee’s own interest

a.

UNIVERSITY OF PANGASINAN FACULTY UNION v UNIVERSITY OF PANGASINAN & NLRC (1984; Gutierrez, Jr) QUICK FACTS: ISSUE: HELD & RATIO: a. Work after normal hours Sec 4(c), Rule 1, Book III, OR If at the end of the normal working hours AND with knowledge of his employer or immediate supervisor, the following circumstances will be considered as hours worked • Work performed was necessary • OR benefited the employer • OR the employee could not abandon his work because he had no replacement a. Lectures, meeting, trainings Sec 6, Rule 1, Book III, OR Attendance at lectures, meetings and training programs and other similar activities shall not be counted as working time if all of the following conditions are met: (requisites for not disqualifying as hours worked) • Attendance is outside of the employee’s regular working hours • Attendance is in fact voluntary • Employee does not perform any productive work during such attendance Travel Time  Azucena: Department of Labor Manual states that principles which apply in determining WON time spent in travel is working time depend upon the kind of travel involved  Travel from home to work – GENERAL RULE: Ordinary home-to-work travel which is normal incident of employment. EXCEPTION: Receipt of an emergency call by an employee outside regular working hours and required to travel to regular place of business or other work site, time spent in such travel is working time.

a.

LABOR 1

Page 6 of 13

 Travel that is all in the day’s work – Time spent by an employee in travel as part of 
his principal activity (e.g. travel from jobsite to jobsite during workday) must be counted as hours worked. Travel away from home – Travel that keeps an employee away from home overnight is travel away from home. It is clearly worktime when it cuts across the employee’s workday.

RADA v NLRC (1992; Ponente) QUICK FACTS: ISSUE: HELD & RATIO:

6. Overtime Work/Pay
a. Overtime in ordinary working day  Definition: Additional pay for service/work rendered or performed in excess of 8 hrs/day by employees or laborers in employment covered by the Eight-hour Labor Law (C.A. No. 444, now Art 87) and not exempt from its requirements.  Computed by multiplying overtime hourly rate by the number of hours worked in excess of the eight.  Rationale: Multifaceted effect of spending additional time in his work: puts in more physical or mental effort, delayed in going home to his family to enjoy the comforts thereof, might have no time for relaxation, amusement or sports, miss important pre-arranged engagements.  Thus, it is the additional work, labor or service employed and the adverse effect of longer stay in his place of work that justify and are the real reason for the extra compensation. Art 87 Work may be performed beyond 8 hrs/day PROVIDED, employee is paid for the OT work, an additional compensation = regular wage + at least 25% of regular wage. If overtime is on a holiday/rest day, additional compensation = 1st 8 hours on holiday/rest day + at least 30% of the rate. Sec 8, Rule 1, Book III, OR Any employee covered by this Rule who is permitted or required to work beyond 8 hrs on ordinary working days shall be paid an additional compensation for the overtime work in the amount = regular wage + at least 25% of regular wage. a. Emergency or compulsory overtime work Art 89 Emergency OT Work - Any employee may be required by the employer to perform overtime work in any of the following cases:  exceptions to general rule that no employee may be compelled to render OT work against his will a. Country is at war OR any other national or local emergency has been declared by the Nat’l Assembly or the Chief Executive b. Necessary to prevent loss of life or property OR in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity c. Urgent work to be performed on the machines, installations or equipment in order to avoid serious loss or damage to the employer or some other cause of similar nature d. Work is necessary to prevent loss or damage to perishable goods e. Completion or continuation of work started before the 8th hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer Sec 10, Rule 1, Book III, OR Compulsory OT Work - In any of the ff cases, an employer may require any of his employees to work beyond the 8 hrs/day, provided that the employee required to render OT work is paid the additional compensation required by these regulations a. Country is at war OR any other national or local emergency has been declared by the Congress or the President b. Necessary to prevent loss of life or property OR in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamities c. Urgent work to be performed on the machines, installations or equipment in order to avoid serious loss or damage to the employer or some other cause of similar nature d. Work is necessary to prevent loss or damage to perishable goods e. Completion or continuation of work started before the 8th hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer f. Necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent there

LABOR 1
R. B. MICHAEL PRESS v GALIT (2008; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: a.

Page 7 of 13

Undertime work/leave Art 88 Undertime not offset by overtime – Undertime work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required in this Chapter.  Proper method is to deduct undertime hours from the accrued leave but to pay the employee the OT compensation to which he is entitled. But where the employee has exhausted his leave credits, his undertime hours may simply be deducted from his day’s wage, but he should still be paid his overtime compensation for work in excess of 8 hrs/day. Additional compensation Art 87 Work may be performed beyond 8 hrs/day PROVIDED, employee is paid for the overtime work, an additional compensation = regular wage + at least 25% of regular wage. If overtime is on a holiday/rest day, additional compensation = 1st 8 hours on holiday/rest day + at least 30% of the rate. Sec 9, Rule 1, Book III, OR Premium and OT Pay for Holiday and Rest Day Work (a) An employee permitted or suffered to work on special holidays or on his designated rest days not falling on regular holidays, shall be paid with an additional compensation as premium pay of not less than 30% of his regular wage. For work performed in excess of 8 hours on special holidays and rest days not falling on regular holidays (OT on special holidays/designated rest days not falling on regular holidays), an employee shall be paid an additional compensation for the OT work equivalent to his rate for the first eight hours on a special holiday or rest day plus at least30%. (b) Employees of public utility enterprises as well as those employed in nonprofit institutions and organizations shall be entitled to premium and OT pay provided herein, unless they are specifically excluded from the coverage of this Rule as provided in Sec 2. (c) The payment of additional compensation for work performed on regular holidays shall be governed by Rule IV, Book III (Holidays with Pay) Sec 11, Rule 1, Book III, OR Computation of additional compensation – For purposes of computing the additional compensation required by this Rule, the “regular wage” of an employee shall include the cash wage only, without deduction on account of facilities provided by employer. Art 90 For purposes of computing overtime and other additional remuneration as required by this Chapter, the “regular wage” of an employee shall include the cash wage only, without deduction on account of facilities provided by the employer.

a.

7. Night Work

 a.

Rationale: Working at night cannot be regarded as desirable, either from the POV of employer or the wage earner. Uneconomical unless overhead costs are unusually heavy. Scale of wages is usually higher and rate of production generally lower. Night shift differential is not waivable.

Coverage/Exclusion Sec 1, Rule 2, Book III, OR Rule applicable to all employees, except: a) Government and any of its political subdivisions, including GOCC b) Retail and service establishment regularly employing not more than 5 workers c) Domestic helpers and persons in the personal service of another d) Managerial employees as defined in Sec 2(b), Book III e) Field personnel and other employees whose time and performance is unsupervised by the employer, including those who are engaged on task or contract basis or those who are paid in a fixed amount for performing work irrespective of the time consumed in the performance thereof Additional Compensation

a.

LABOR 1

Page 8 of 13

Art 86 Every employee shall be paid a night shift differential of not less than 10% of his regular wage for each hour of work performed between 10:00 PM and 6:00 AM. Sec 2, Rule 2, Book III, OR An employee shall be paid NSD of no less than 10% of his regular wage for each hour of work performed between 10:00 PM and 6:00 AM. Sec 3, Rule 2, Book III, OR Where an employee is permitted or suffered to work on the period covered after his work schedule, he shall be entitled to his regular wage + at least 25% and an additional amount of no less than 10% of such OT rate for each hour of work performed between 10 PM to 6 AM. Sec 4, Rule 2, Book III, OR An employee who is required or permitted to work on the period covered during rest days and/or special holidays, shall be paid a compensation = regular wage + at least 30% and an additional amount of not less than 10% of such premium pay rate for each hour of work performed. Sec 5, Rule 2, Book III, OR For work on period covered during regular holidays, an employee shall be entitled to his regular wage during these days + additional compensation 10% of such premium rate for each hour of work performed. Sec 6, Rule 2, Book III, OR Nothing in this Rule shall justify an employer in withdrawing or reducing any benefits, supplements or payments as provided in existing individual or collective agreements or employer practice or policy.

B. Weekly Rest Periods 1. Coverage/Exclusions
Art 82 Coverage. – The provisions of this Title shall apply to employees in all establishments and undertakings whether for profit or not… EXCEPT: 1. Government employees 2. Managerial employees 3. Field personnel 4. Members of the family of employer who are dependent on him for support 5. Domestic helpers 6. Persons in the personal service of another 7. Workers who are paid by results, as determined by the DOLE Sec in appropriate regulations Par 2: definition of “managerial employees” Par 3: definition of “field personnel” Sec 1, Rule 3, Book III, OR This rule shall apply to all employers, whether operating for profit or not, including public utilities operated by private persons Sec 2, Rule 3, Book III, OR All establishments and enterprises may operate or open for business on Sundays and holidays provided that the employees are given the weekly rest day and the benefits provided in this Rule. CALTEX REGULAR EMPLOYEES v CALTEX (Phils) INC (1995; Ponente) QUICK FACTS: ISSUE: HELD & RATIO:

1. Right to Weekly Rest Period
Art 91 (a) It shall be the duty of every employer, whether operating for profit or not, to provide each of his employees a rest period of not less than 24 consecutive hours after every six consecutive normal work days. Sec 3, Rule 3, Book III, OR Every employer shall give his employees a rest period of not less than 24 consecutive hours after every six consecutive normal work days.

2. Determination/Preference of Employee

LABOR 1

Page 9 of 13

Art 91 (b) The employer shall determine and schedule the weekly rest day of his employees subject to CBA and to such rules and regulations as the Labor Sec may provide. However, the employer shall respect the preference of employees as to their weekly rest day when such preference is based on religious grounds. Sec 4, Rule 3, Book III, OR Preference of Employee – The preference of the employee as to his weekly day of rest shall be respected by the employer if the same is based on religious grounds. The employee shall make known his preference to the employer in writing at least 7 days before the desired effectivity of the initial rest day so preferred. 2nd Par Where, however, the choice of the employee as to his rest day based on religious grounds will inevitably result in serious prejudice or obstruction to the operations of the undertaking and the employer cannot normally be expected to resort to other remedial measures, the employer may so schedule the weekly rest day of his choices for at least 2 days in a month. Sec 5, Rule 3, Book III, OR Schedule of Rest Day – a. Where the weekly rest is given to all employees simultaneously, the employer shall make known such rest period by means of a written notice posted conspicuously in the workplace at least one week before it becomes effective. b. Where the rest period is not granted to all employees simultaneously and collectively, the employer shall make known to the employees their respective schedules of weekly rest through written notices posted conspicuously in the workplace at least one week before they become effective.

1. Compulsory Work
Art 92 When employer may require work on a Rest Day – a) In case of actual or impending emergencies caused by ○ serious accident, ○ fire, ○ flood, ○ typhoon, ○ earthquake, ○ epidemic or ○ other disaster or calamity to prevent loss of life and property or ○ imminent danger to public safety a) In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer would otherwise suffer b) In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures c) To prevent loss or damage to perishable goods d) Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer e) Under other circumstances analogous or similar to the foregoing as determined by the Labor Sec Sec 6, Rule 3, Book III, OR When work on rest day authorized – An employer may require any of his employees to work on his scheduled rest day for the duration of the following emergency and exceptional conditions: a) In case of actual or impending emergencies caused by ○ serious accident, ○ fire, ○ flood, ○ typhoon, ○ earthquake, ○ epidemic ○ or other disaster or calamity, to prevent loss of life and property or ○ in cases of force majeure, or ○ imminent danger to public safety a) In case of urgent work to be performed on machineries, equipment or installation, to avoid serious loss which the employer would otherwise suffer b) In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures c) To prevent serious loss of perishable goods

LABOR 1

Page 10 of 13

d) Where the nature of work is such that the employees have to work continuously for 7 days in a week or more, as in the case of the crew members of a vessel to complete a voyage and in other similar cases e) When the work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon 2nd Par No employee shall be required against his will to work on his scheduled rest day except under circumstances provided in this section, PROVIDED, HOWEVER, That where an employee volunteers to work on his rest day under other circumstances, he shall express such desire in writing, subject to the provision of Sec 7 hereof regarding additional compensation.

1. Premium Pay
Compensation for Rest day, Sunday or Holiday Work
Art 93 (a) Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least 30% of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day. Art 93 (b) When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays. Art 93 (c) Work performed on any special holiday shall be paid an additional compensation of at least 30% of the regular wage of the employee. Where such holiday work falls on the employee’s scheduled rest day, he shall be entitled to an additional compensation of at least 50% of his regular wage. Sec 7, Rule 3, Book III, OR Compensation on Rest Day/Sunday/holiday – (a) Except those employers referred to under Section 2, Rule 1, Book III, an employee who is made or permitted to work on his scheduled rest day shall be paid with an additional compensation of at least 30% of his regular wage. An employee shall be entitled to such an additional compensation on a Sunday only when it is his established rest day. (b) Where the nature of the work of the employee is such that he has no regular work days and no regular rest days can be scheduled, he shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays. (c) Work performed on any special holiday shall be paid with an additional compensation of at least 30% of the regular wage of the employees. Where such holiday work falls on the employee’s scheduled rest day, he shall be entitled to additional compensation of at least 50% of his regular wage. (d) The payment of additional compensation for work performed on regular holiday shall be governed by Rule 4, Book III of these regulations.

1. CBA on higher premium pay
Art 93 (d) Where the CBA or other applicable employment contract stipulates the payment of a higher premium pay than the prescribed under this Article, the employer shall pay such higher rate. Sec 7 (e), Rule 3, Book III, OR Where the CBA or other applicable employment contract stipulates the payment of a higher premium pay than that prescribed under this Section, the employer shall pay such higher rate. Sec 9, Rule 3, Book III, OR Relation to agreements – Nothing herein shall prevent the employer and his employees or their reps in entering into any agreement with termsmore favorable to the employees than those provided herein, OR be used to diminish any benefit granted to the employees under existing laws, agreements, and voluntary employer practices.

C. Holidays 1. Coverage/Exclusions
Art 94 (a) Every worker shall be paid his regular daily wage during regular holidays, except in retail and serice establishments regularly employing less than 10 workers Sec 1, Rule 4, Book III, OR Rule applicable to all employees except a) Government and any of its political subdivisions, including GOCC b) Retail and service establishment regularly employing not more than 10 workers

LABOR 1

Page 11 of 13
c) Domestic helpers and persons in the personal service of another d) Managerial employees as defined in Sec 2(b), Book III e) Field personnel and other employees whose time and performance is unsupervised by the employer, including those who are engaged on task or contract basis or those who are paid in a fixed amount for performing work irrespective of the time consumed in the performance thereof

Definition
a. Retail establishment Par f., Rules Impl. RA 6727 “Retail establishment” one principally engaged in the sale of goods to end-users for personal or household use b. Service establishment Par g., Rules Impl. RA 6727 “Service establishment” is one principally engaged in the sale of service to individuals for their own or household use and is generally recognized as such.

1. Regular Holidays/Special Holidays
RA 9492 (Amendment of Sec 26, Chap 7, Book I of E.O. 292 Admin Code of 1987) Sec. 26, Regular Holidays and Nationwide Special Days. – (1) Unless otherwise modified by law, and or proclamation, the following regular holidays and special days shall be observed in the country: a) Regular Holidays New Year’s Day January 1 Maundy Thursday Movable date Good Friday Movable date Eidul Fitr Movable date Araw ng Kagitingan (Bataaan and Corregidor Day) Monday nearest April 9 Labor Day Monday nearest May 1 Independence Day Monday nearest June 12 National Heroes Day Last Monday of August Bonifacio Day Monday nearest November 30 Christmas Day December 25 Rizal Day Monday nearest December 30 b) Nationwide Special Holidays: Ninoy Aquino Day All Saints Day Last Day of the Year c) Monday nearest August 21 November 1 December 31

In the event the holiday falls on a Wednesday, the holiday will be observed on the Monday of the week. If the holiday falls on a Sunday, the holiday will be observed on the Monday that follows:

Provided, That for movable holidays, the President shall issue a proclamation, at least six months prior to the holiday concerned, the specific date that shall be declared as a nonworking day

1. Holiday Pay
a. Faculty in Private School Sec 8 (a), Rule IV, Book III Private school teachers, including faculty members of UC, • May not be paid for the regular holidays during semestral vacations. • They shall, however, be paid for the regular holidays during Christmas vacation. JOSE RIZAL COLLEGE v NLRC (1987; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: a. Divisor as Factor

LABOR 1
TRANS-ASIA PHIL EMPLOYEES ASSOCIATION v NLRC (1999; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: b. Sunday

Page 12 of 13

Art 93 (a) Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least 30% of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day. Art 93 (b) When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays. Sec 2, Rule 3, Book III All establishments and enterprises may operate or open for business on Sundays and holidays provided that the employees are given the weekly rest day and the benefits as provided in this Rule. WELLINGTON INVESTMENT v TRAJANO (1995; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: c. Muslim holiday Art 169, PD 1083 Official Muslim holidays – The ff are hereby recognized as legal Muslim holidays: (a) Amun Jadid (New Year) – 1st day of the 1st lunar month of Muharram (b) Malid-um-Nabi (Birthday of the Prophet Muhammad) -12th day of the 3rd lunar month of Rabiul-Uwwal (c) Lailatul Ira Wal Mi’raj (Nocturnal Journey and Ascension of the Prophet Muhammad) – 27th day of the 7th lunar month of Rajab (d) Id-ul-Fitr (Hari Raya Puasa) – 1st day of the 10th lunar month of Shawwal, commemorating the end of the fasting season (e) Id-ul-Adha (Hari Raya Haji) – 10 day of the 12th lunar month of Dhul-Hijja Art 170, PD 1083 Provinces and cities where officially observed 1. Muslim holidays officially observed in the ff provinces and cities • • Basilan • Lanao del Norte • Lanao del Sur • Maguindanao • North Cotabato • Sultan Kudarat • Sulu • Tawi-tawi • Zamboanga del Norte • Zamboanga del Sur • Cotabato City • Iligan • Marawi • Pagadian • Zamboanga • Such other Muslim provinces and cities as may hereafter be created

LABOR 1
2.

Page 13 of 13
Upon proclamation by the Pres, Muslim holidays may also be officially observed in other provinces and cities

Art 171, PD 1083 Dates of Muslim holidays shall be determined by the Office of the Pres in accordance with the Muslin Lunar Calendar (Hijra) Art 172, PD 1083 Observance of Muslim employees 1. All Muslim gov’t officials and employees in places other than those enumerated under Art 170 shall also be excused from reporting to office in order that they may be able to observe Muslim holidays. 2. Pres may be proclamation, require private offices, agencies or establishments to excuse their Muslim employees from reporting for work during a Muslim holiday without reduction in their usual compensation. RA 8492 Provided, however, The Eidul Adha shall be celebrated as a regional holiday in the Autonomous Region in Muslim Mindanao. SMC v CA (2002; Ponente) QUICK FACTS: ISSUE: HELD & RATIO:

1. Absences
Sec 6 (a), Rule 4, Book III All covered employees shall be entitled to the benefit provided herein when they are on leave of absence with pay. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if he has not worked on such regular holiday. Sec 10, Rule 4, Book III Successive regular holidays – Where there are 2 successive regular holidays like Holy Thursday and Good Friday, an employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the first holiday, UNLESS he works on the first holiday, in which case he is entitled to his holiday pay on the second holiday.

2. Non-working day/scheduled rest Day
Sec 6 (c), Rule 4, Book III Where the day immediately preceding the holiday is a non-working holiday in the establishment OR the scheduled rest day of the employee, he shall not be deemed to be on LOA on that day, in which case he shall be entitled to the holiday pay if he worked on the day immediately preceding the nonworking day or rest day.