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Labstand Rev
Labstand Rev
LABOR STANDARDS
Refers to the minimum requirements prescribed by existing laws, rules and regulations and other issuances
relating wages, hours of work, cost of living allowances and other monetary and welfare benefits, including
those set by occupational safety and health standards.
Ø to be on duty
· Rest periods of short duration during working hours shall be counted as hours worked.
2. Meal Pay
3. Holiday Pay
Except: Retail and service establishments regularly employing less than 10 workers
Includes: Employee who is paid by results and she works in a service establishment employing more than
10 persons shall be paid holiday pay. (Sec. 8(b), Rule IV, Book III, IRR’s)
Regular Holidays
· To receive holiday pay, the EE should not have been absent without pay on the working day preceding
the regular holiday. (Azucena)
· A legal holiday falling on a Sunday creates no legal obligation for the ER to pay extra to the EE who does
not work on that day, aside from the usual holiday pay, to its monthly-paid employee. (Wellington vs.
Trajano)
4. Premium Pay
Is additional compensation for work rendered by the employee on days normally he should not be working.
· It shall be for the duty of every employer, whether operating for profit or not, to provide employee a rest
period of not less than 24 consecutive hours after every 6 consecutive normal working days.
· The employer shall determine and schedule the weekly rest day of his employees, however, the employer
shall respect the preference of employees as to their weekly rest day when such preference is based on
religion grounds.
Where however the choice of the employees as to their rest day based on religious grounds will inevitably
result in serious prejudice or obstruction to the operation of the undertaking, the employer may so
schedule the weekday rest day of their choice at least 2 days in a month. (Sec. 4, Rule III, Book III, IRR’s)
a. In case of actual or impending emergency caused by serious accident, fire, flood, typhoon, earthquake,
epidemic, or other Disaster or calamity to prevent loss of life, or imminent danger to public safety.
b. In case of Urgent work, to avoid serious loss which the ER would otherwise suffer;
c. In the event of Abnormal pressure of work due to special circumstances, where the ER cannot ordinarily
be expected to resort to other measures;
§ Scheduled rest day – additional compensation of at least 30% of his regular wage.
§ Scheduled rest day which is a non-working holiday – entitled to additional compensation of at least
50% of his regular wage.
§ Scheduled rest day which is a regular holiday – entitled to additional compensation of at least 30% of
his regular holiday rate of 200% based on his regular wage rate. (Sec. 4, Rule III, Book I, IRR’s)
Except :
c. Exempt establishments.
The term ‘at least 1 year of service’ shall mean service within 12 months, whether continuous or broken,
reckoned from the date the EE started working, including authorized absences and paid regular holidays
unless the working days in the establishment as a matter of practice or policy, or that provided in the
employment contract are less than 12 months, in which case said period shall be considered as 1 year. (Sec.
3, Rule V, Book III, IRR’s)
Every EE shall be paid night shift differential of not less than 10% of his regular wage for each hour of work
performed between 10:00 p.m. and 6:00 a.m. (Art. 86)
8. Overtime Pay
· Is additional compensation for work done beyond the normal work hours on ordinary working days.
· Special days, holiday or rest day – plus 30% of the regular hourly rate on said days.
Emergency Overtime Work - Any EE may be required by the ER to perform overtime work in any of the
following cases: [WED-UPS]
d. When it is necessary to prevent loss of life or property or in case of imminent Danger to the 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.
e. When there is Urgent work to be performed on machines and installations in order to avoid serious loss
or damage to the ER or some other cause of similar nature.
g. Where the completion or continuation of the work started before the 8th hour is necessary to
prevent Serious obstruction or prejudice to the business operations of the ER.
The EE’s refusal to obey the order of the EE constitutes insubordination for which he may be subjected to
disciplinary action. (Alcantara)
· Undertime work in any particular day shall not be offset by overtime work on another day BUT not on
someday.
§ Permission given to the EE to go on leave on some other day of the week shall not exempt the ER from
paying the additional compensation required. (Art. 88)
· For purposes of computing overtime and other additional remuneration as required by this Chapter the
“regular wage” of an EE shall include the cash wage only, without deduction on account of facilities
provided by the ER. (Art. 90)
Applies to ALL employees in all establishments and undertakings whether for profit or not.
M – Managerial Employees
a. Their primary duty consists of the management of the establishment in which they are employed or of
a department or sub-division thereof;
b. Customarily or regularly direct the work of 2 or more employees therein;
c. Has the authority to hire or fire other employees of lower rank; or their suggestions and
recommendations as to the hiring and firing and as to the promotion or any change of status of other
employees are given particular weight. [Sec 2(b), Rule I, Book III]
a. Primary duty consists of the performance of work directly related to management policies of the
employer;
c. Regularly directly assist a proprietor or managerial employee or execute under general supervision work
along specialized or technical lines requiring special training, experience or knowledge; or execute under
general supervision special assignment and tasks; and
d. Do not devote more than 20% of their hours worked to activities which are not directly and closely
related to the performance of the work described in the preceding paragraphs.
M – Members of the Family of the Employer who are dependent of him for support
It refers not only to the real “immediate” members of he family of the employer but also to those who are
considered as family members in its loose sense, that is, those who are living with the employer and
dependent on him for support
G – Government Employee
Whether employed by the National Government or any of its political subdivisions, including those
employed in GOCC’s with original charters. (Sec. 2, Rule I, Book III, IRR’s)
F – Field Employee
Non-agricultural EE’s who regularly perform their duties away from the principal place of business or
branch office of the ER whose actual hours of work in the field cannot be determined with reasonable
certainty (Art. 82)
Compensation computed on the basis of work accomplished and not on time spent in accomplishing the
work.
a. Paid by Task (wholesale) – those who are compensated on the basis of the completion or
accomplishment of a certain specified task.
b. Paid by Piece – those who are compensated on the basis of units or piece of work they produced and
accomplished. The work process involved is usually repetitive and the compensation is uniform per unit or
per piece.
Same as the Domestic Helper but includes not only domestic servants or house helpers but drivers, valets
and bodyguards as well.
D – Domestic Helpers
a. In the ER’s home which are usually necessary or desirable for the maintenance or enjoyment thereof;
b. Or minister to the personal comfort, convenience, or safety of the ER as well as the members of his ER’s
household (Sec. 2, Rule I, Book III, IRR’s)
However, house personnel hired by a ranking company official, 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 EE’s of the
company. (Cadiz vs. Philippine Sinter)
All land-based employers are required to pay all their rank-and- file employees a 13th month pay not later
than December 24 of every year.
o To be paid only to rank-and file employees regardless of the amount of their basic salary.
§ To be entitled to the 13th month pay benefit, it is imposed as a minimum service requirement that
employees, regardless of their designation or employment status and irrespective of the method by which
their wages are paid, should have worked r at for least one (1) month during the calendar year.
§ It is possible that ½ of the payment of 13th month pay be given to employees before the opening of
the regular school year and the other half on or before 24th day of December of every year. The frequency
of the payment of this monetary benefit may be subject of agreement between the employer and the
recognized CBA of the employees.
§ OFW is no entitled to 13th month pay in the absence of any provision in his employment contract
granting the payment thereof (Petroleum Shipping Limited v. NLRC, G.R. No. 148130, June 16, 2006)
§ An employee who has resigned or whose services were terminated at any time before the time for
payment of the 13th month pay is entitled to this monetary benefit proportion to the length of time he
worked during the year, reckoned from the time he started working during the calendar year up to the time
of his resignation or termination of service.
Ø but does not include allowances and monetary benefits which are not considered or integrated as part
of the regular or basic salary, such as the cash equivalent or unused vacation and sick leave credits,
overtime, premium, night-differential and holiday pay, and cost-of-living allowances.
· However, these salary-related benefits should be included as part of the basic salary in the computation
of the 13th month pay if the individual or collective agreement, company practice or policy, the same are
treated as part of the basic salary of the EE’s.
(WPD – G – MES)
D – Domestic Helpers
G – Government Employee
The government and any of its political subdivisions, including GOCC’s, except those corporations operating
essentially as private subsidiaries of the government.
M – Managerial Employees
ER’s already paying their EE’s a 13th month pay or more in a calendar year or its equivalent at the time of
this issuance.
The term “its equivalent” … shall include Christmas bonus, mid-year bonus, cash bonuses and other
payments but shall not include cash and stock dividends, cost of living allowances and other allowances
regularly enjoyed by the EE, as well as non-monetary benefits. Where an ER pays less than required
1/12th of the EE’s basic salary, the ER shall pay the differences.
S – Supervisory Employee
a. Assist the department superintendent in various aspects of management such as in the planning of
systems and procedures;
b. Recommends disciplinary action against erring subordinates or promotion of deserving personnel, train
and guide subordinates;
They discharge duties and responsibilities which qualify them as members of the managerial staff.
A distressed ER may qualify for exemption for the 13th month pay if there is prior authorization from the
DOLE. (Dentech vs. NLRC)