Rivera, Charles Neil 2018120766

Labor Standards 2020

Saturday Class

Atty.Paciano F. FallarJr.
SSCR-CoL

Q1.Ms. F, a sales assistant, is one of the eight (8) workers regularly employed by ABC
Convenience Store. She was required to report on December 25 and 30.

Should ABC Convenience Store pay her holiday pay? Explain.

Yes. ABC Convenience Store should pay Ms. F her holiday pay.
Under Art 94 of the Labor Code, Every worker shall be paid his regular daily wage during regular
holiday, except in retail and service establishments regularly employing less than ten (10) workers and
the employer may require an employee to work on any holiday but such employee shall be paid a
compensation equivalent to twice his regular rate; and Under EO 292 amended by RA 9848, December
25th and 30th are included in the twelve (12) regular holidays in a year.
Here, F, a sales assistant, one of the eight (8) regular employees of ABC Convenience Store, who
was required to report on December 25 and 30.
Therefore, F shall be paid a compensation equivalent to twice her regular rate because her
employer, ABC Convenience Store required her to work on a regular holiday.

Q2.Ping Gabo is the Chief Engineer of the National Publishing Corp. with a monthly
salary of P30,000.00. He works over eight (8) hours daily from Monday to Saturday. In
May. June and July 1991, he rendered, each month, ten (10) hours beyond his regular
work schedule.

Is he entitled to overtime pay and holiday pay? Why

Yes, Ping is entitled to overtime pay and only entitled to any holiday pay if Ping Gabo worked on
a regular holiday between May, June and July 1991.
Under Art 87 of the Labor Code, Work may be performed beyond 8 hours a day provided that
the employee is paid for the overtime work, an additional compensation equivalent to his regular wage
plus at least 25%. Work performed beyond 8 hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first 8 hours on a holiday or rest day plus at least 30%, and
Under Art 94 of the Labor Code, Every worker shall be paid his regular daily wage during regular holidays
and if the employer requires work on any holiday, such employee is entitled to a compensation
equivalent to twice of his regular rate.
Here, Ping Gabo rendered 10 hours beyond his regular work schedule, and only entitled to any
holiday pay if he renders work during those holidays.
Therefore, Ping is entitled to overtime pay, and holiday pay which is subject to a condition.
Rivera, Charles Neil 2018120766

Q3:What would be your advice to your client, a manufacturing company, who asks for
your legal opinion on whether or not the 13th Month Pay Law (Presidential Decree No.
851) covers a casual employee who is paid a daily wage?

Yes, Casual Employees are covered by the 13 th Month Pay Law.

Under PD 851, as a general rule, All employees are entitled toa 13 th month pay, who are
receiving a basic salary of not more than P1,000 a month, regardless of the nature of their employment,
andthe exceptions are:
1) Distressed employers, such as those currently incurring substantial losses or in the case of non-profit
institutions and organizations
2) The Government and any of its political subdivisions, including government-owned and controlled
corporations, except those corporations operating essentially as private subsidiaries of the
Government;
3) Employers already paying their employees 13-month pay or more in a calendar year of its equivalent
at the time of this issuance;
4) Employers of household helpers and persons in the personal service of another in relation to such
workers; and
5) Employers of those who are paid on purely commission, boundary, or task basis, and those who are
paid a fixed amount for performing a specific work, irrespective of the time consumed in the
performance thereof, except where the workers are paid on piece-rate basis in which case the
employer shall be covered by this issuance insofar as such workers are concerned.
Here, Casual employers does not fall within the exceptions that are not covered by the 13 th
Month Pay law.
Therefore, Casual employers are entitled to 13 th Month Pay.

Q4.Mrs. B, the personal cook in the household of X, filed a monetary claim against her
employer, X, for denying her service incentive leave pay. X argued that Mrs. B did not
avail of any service incentive leave at the end of her one (1) year of service and hence,
not entitled to the said monetary claim.

Is the contention of X tenable? Explain.

No. X’s contention is not correct.

Under the law, The service incentive leave is commutable to its money equivalent if not used or
exhausted at the end of the year. The availment and commutation of service incentive leave benefit may
be on a pro-rata basis.
Here, Mrs. B did not avail of any incentive leave at the end of her 1 year service. Applying the
law, service incentive leave is commutable to its money equivalent if not used or exhausted at the end
of the year.
Therefore, Mrs. B is entitled to said monetary claim.
Rivera, Charles Neil 2018120766

Q5.Mr. A signed a one (1)-year contract with XYZ Recruitment Co. for deployment as
welding supervisor for DEF, Inc. located in Dubai. The employment contract, which the
Philippine Overseas Employment Administration (POEA) approved, stipulated a salary
of US$600.00 a month.

Mr. A had only been in his job in Dubai for six (6) months when DEF, Inc. announced
that it was suffering from severe financial losses and thus intended to retrench some of
its workers, among them Mr. A. DEF, Inc. hinted, however, that employees who would
accept a lower salary could be retained.

Together with some other Filipino workers, Mr. A agreed to a reduced salary of
US$400.00 a month and thus, continued with his employment.

(a) Was the reduction of Mr. A’s salary valid? Explain. (2.5%)

The reduction of A’s salary is not valid.

Under the Labor Code it prohibits the substitution or alteration to the prejudice of the worker,
employment contracts approved and verified by the Department of Labor and Employment from the
time of actual signing thereof by the parties up to and including the period of the expiration of the same
without the approval of the Department of Labor and Employment;
The fact that the salary of Mr. A was reduced from US$600.00 a month to US$400.00 a month
without the approval of the Department of Labor and Employment is a substitution or alteration of the
one (1)-year contract with XYZ Recruitment Co.
Therefore, the reduction of A’s salary is not valid.

(b) Assuming that the reduction was invalid, may Mr. A hold XYZ Recruitment Co, liable
for underpayment of wages? Explain. (2.5%)

Yes, Mr. A can hold XYZ Recruitment Co, liable for underpayment of wages on the basis of its
solidary liability under the Migrant Worker’s overseas Filipino Act of 1995.
Sec 10 of RA 8042 as amended is clear that the liability of the principal/employer and the
recruitment/placement agency for any and all money shall be joint and several. This provision shall be
incorporated in the contract for overseas employment and shall be a condition precedent for its
approval. In fact such liabilities shall continue during the entire period or duration of the employment
contract and shall not be affected by any substitution, amendment or modification made locally or in a
foreign country of the said contract.
XYZ Recruitment Co is therefore liable for underpayment of wages.