LABOR | ATTY.

GOLANGCO 2020-2021

1. Bernarte vs PBA - SC: there is an e-e relationship

- REFEREE - application of 4 fold test
- application of 4 fold test - field personnel: Art 82 of LC defines field personnel as
- no employer-employee relationship; only a contractual non-agricultural employees who regularly perform their duties
worker away from the principal place of business or branch office of the
employer and whose hours of work in the field cannot be
2. Coca Cola Bottlers vs Climaco determined with reasonable certainty
- medical doctor by virtue of a retainer agreement - not entitled to 13th month pay as per PD No. 851
(1988-1993)
- application of 4 fold test 5. Nestle vs. Pineda
- CA: there’s an e-e relationship and Art. 280 (one year - Benne Puedan was hired by Nestle and Ocho de
employment = regularisation) Setiembre to sell various products of Nestle in the assigned
- SC rulign: no e-e relationship because the Comprehensive covered area
Medical Plan does not instruct respondent how to conduct his - labor only contractor
duties and obligations - SC: No, the distributorship agreement between ODSI and
NPI are not that of a principal and a contractor, but that of a seller
3. Chevron vs Galit and a buyer/re-seller. Hence, NPI cannot be held jointly and
- “all around employee” in Chevron depot in Pandacan severally liable to ODS’s monetary obligation towards the
- SC: no e-e- relationship respondents
- control test: power to control merely calls for the
existence of the right to control, and not necessarily the exercise 6. Valenzuela v. Alexandra
thereof - company driver of Alexandra Mining Ventures and its
- independent contractor: carries on an independent owner and president, Detera
business and undertakes the contract work on his own account, - back wages
under his own responsibility according to his own manner and - Art. 180 : dismissal of household employees—notice shall
method, and free from the control and direction of his employe or be given 5 days before termination
principal in all matter connected with the performance of the work
except as to the results thereof 7. HSY v. Villastique
- field driver for Fabulous Jeans, tasked to deliver RTW items
4. David vs Macasio and/or general merchandise for a daily compensation
- Macasio worked as a butcher for Yiels Hog Dealer owned - there was no dismissal nor abandonment. The appropriate
by David since Jan 1995 course of action is to reinstate the employee without backwashes
- David alleged that he engaged the services of Macasio on
a pakyaw basis
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LABOR | ATTY. GOLANGCO
8. Provisions on the labor code on the working conditions
• ART 82 : apply to employees in all establishments and
undertakings whether for profit or not, but NOT to :
• government employees
• Managerial employees: those whose primary duty
consists of the management of the establishment in
which they are employed or of a department or
subdivision thereof, and to other officers or members
of the managerial staff
• Field personnel: non-agricultural employees who
regularly perform their duties away from the principal
place of business or branch office of the employer and
whose hours of work in the field cannot be determined
with reasonable certainty
• Members of the family of the employer who are
dependent on him for support
• Domestic helpers
• Persons in the personal service of another
• Workers who are paid by results as determined by the
Secretary of Labor in appropriate regulations
• ART 83 Normal Working hours: shall not exceed 8 hrs a day
• Health personnel: 8 hrs/5 days a week exclusive of
time for meals, except where the exigencies of the
service require for the personnel to work for 6 hrs/48
hrs in which case, they shall be entitled to 30%
compensation of their regular wage for work on the
6th day
• Health personnel: resident physicians, nurses,
nutritionists, dieticians, pharmacists, social workers,
laboratory technicians, paramedical technicians,
psychologists, midwives, attendants and all other
hospital or clinic personnel
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• ART 84 Hours worked: include
• All time during which an employee is required to be on
duty or to be at a prescribed workplace
• All time during which an employee is suffered or
permitted to work
• Rest periods for short duration during working hours
shall be counted as hours worked
• ART. 85 Meal Periods : subject to such regulations as the
Secretary of Labor 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
• ART. 86 Night Shift Differential: 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
10pm to 6am
• Art. 87 Overtime Work: 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% thereof. Worked
performed beyond 8 hours on a holiday or rest day shall
be paid in additional compensation equivalent to the rate
of the first 8 hours on a holiday or rest day plus 30%
thereof
• Art. 88 Undertime Not Offset by Overtime: undertake work
on any particular day shall bot 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
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LABOR | ATTY. GOLANGCO
• Art. 89 Emergency Overtime Work: Any employee may be
required by the employer to perform overtime work in any
of the following cases:
• When the country is at war
• When it is necessary to prevent loss of life or property
• When there is urgent work to be performed on
machines et al in order to avoid serious loss or
damage
• When the work is necessary to prevent loss or damage
of perishable goods
• Where the completion or continuation of the work
started before the 8th hour is necessary to prevent
serious obstruction or prejudice to the business or
operations of the employer
• Art. 91 Right to Weekly Rest Day:
• It shall be the duty of every employer to provide each
of his employees a rest period of not less than 24
hours consecutive hours every 6 consecutive normal
work days
• The employer shall determine and schedule the weekly
rest days of his employees subject to collective
bargaining agreement and to such rules and
regulations as the SOLE may provide. However, the
employer must respect the preference of employees
as to their weekly rest day when such preference is
based on religious grounds
• Art. 92 When an Employee May Require Work on a Rest
Day: the employer may require his employees to work on
any day:
• In case of actual or impending emergencies
• In cases of urgent work to be performed on
machineries et al to prevent damage
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• In the event of abnormal pressure of work due to
special circumstances, where the employer cannot
ordinarily be expected to resort to other measures
• To prevent loss or damage to perishable goods
• When the nature of the work requires continuous
operations and the stoppage of work may result in
irreparable injury or loss to the employer
• Under other circumstances analogous or
9. Who is a government employee?
- a person engaged in work by any government agency,
department, or GOCC
10. Who is a managerial employee
ART. 82: those whose primary duty consists of the
management of the establishment in which they are
employed or of a department or subdivision thereof, and to
other officers or members of the managerial staff
ART. 219: one who is vested with powers or prerogatives to
lay down and execute management policies and/or hire,
transfer, suspend, lay-off, recall, discharge, assign, or
discipline employees
supervisory employee: those who, in the interest of
the employer, effectively recommend such
managerial actions if the exercise of such authority
is not merely routinely or clerical in nature but
requires the use of independent judgment
11. X is the head of the accounting department of Company Y – he
has 3 subordinates which he supervises, he also corrects the
reports submitted, recommends their promotion. Is he a managerial
employee?
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LABOR | ATTY. GOLANGCO
Yes. Authority requires use of independent judgment.
12. Do we need to distinguish a managerial and supervision
position in applying Article 82?
The test of "managerial" or "supervisory" status depends on
whether a person possesses authority to act in the interest
of his employer and whether such authority is not routinary
or clerical in nature but requires the use of independent
judgment. The rank-and-file employee performs work that is
routinary and clerical in nature. The distinction between
these employees is significant because supervisory and
rank-and-file employees may form, join or assist labor
organisations. Managerial employees cannot.
13. What are the characteristics of a managerial employee
a. Primary duty consists of the management of the
establishment
b. Customarily and regularly direct the work of two
or more employees therein
c. Have 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 promotion are given particular weight
14. Who is a field personnel?
non-agricultural employees who regularly perform their
duties away from the principal place of business or branch
office of the employer and whose hours of work in the field
cannot be determined with reasonable certainty
15. Example of a field personnel?
Doctor/physician in the case of Coca-Cola vs Climaco
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16. Case of autobus vs. bautista
- Bautista was hired by Autobus Transport Systems as a driver-
conductor who was paid on a commission basis, 7% of the
total gross income per travel, on a twice a month basis
- SC: according to Art 95 of the LOC and the IRR, every
employee who has rendered at least 1 year service shall be
entitled to a yearly service incentive leave of 5 days with pay.
This shall not apply to field personnel and other employees
whose performance is unsupervised by the employer.
- Bus drivers are not field personnel because as further defined
by the Bureau of Working Conditions’ Advisory Opinion, if
required to be at specific places at specific times, employees
including drivers cannot be said to be field personnel despite
the fact that they are performing work away from the
principal office of the employee.
- Pursuant to Art. 92, in order to conclude whether an employee
is a field employee, it is also necessary to ascertain if actual
hours of work in the field can be determined with reasonable
certainty by the employer. In so doing, an inquiry must be
made as to whether or not the employee’s time and
performance are constantly supervised by the employer
17. Work day definition
Work day is a 24 hr period commencing from the time an
employee regularly starts to work regardless of whether the
work is broken or continuous. It may not conclude with a
calendar day (Calendar day starts from 12mn to 11:59pm)
18. Work day began at march 21 8:00 a.m. when will it end?
March 22 8am
19. Work week definition
A work week is a fixed and regularly recurring period of 168
hours or 7 consecutive 24-hour periods
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LABOR | ATTY. GOLANGCO
20. Work week began at March 22 8:00 a.m. when will it end?
March 29, 8am
21. What is a compressed work week?
An alternative arrangement whereby the normal work week
is reduced to less than 6 days but the total number of
normal hours per week remains at 48 hours
Requirements:
a. It is expressly and voluntarily supported by majority of
the employees affected
b. If work is hazardous, a certification is needed from an
accredited safety organisation or the firm’s safety
committee
c. DOLE is duly notified
22. Is a stevedoring company allowed to practice a compressed
work week?
Yes, if they follow the requirements
23. If the employer implements a compressed work week, is it a
waiver of the workers for their overtime pay?
No. A compressed work week is not compensable by
overtime premium, provided that the total number of hours
worked per day shall not exceed 12 hours or 48 hours per
week. Otherwise, the employee shall be subject to overtime
premium
24. The normal working hours is 8am-5pm mon-fri now the
employer wants to implement a compressed work week 8am-7pm
mon-thurs. is this a valid work week? When will they receive
overtime pay?
No, it is not a valid compressed work week because the
accumulated time of work will exceed the maximum
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allowed number of hours per week which is 48 hours.
Following the suggested compression, the total amount of
working hours will be equivalent to 55 hours. If management
chooses to push through with such plan, it needs to pay an
overtime premium for the additional 7 hours of work, which
is equivalent to plus 25% of the hourly rate
25. Are there any exceptions to this recognised by law?
26. What would be the effect if there was a reduction in the work
days of an employee? What about his benefits, will there be a
diminution? Does this violate article 100 of the labor code?
In situations where the employer has to reduce the number
of regular working days to prevent serious losses, such as
when there is a substantial slump in the demand for his/her
goods or services, or when there is lack of raw materials,
the employer may deduct the wages corresponding to the
days taken off from the workweek, consistent with the
principle of “no work, no pay.” This is without prejudice to
an agreement or company policy which provides otherwise
27. What do you mean by hours worked?
ART 84 Hours worked: include
• All time during which an employee is required to be on
duty or to be at a prescribed workplace
• All time during which an employee is suffered or
permitted to work
• Rest periods for short duration during working hours
shall be counted as hours worked
28. The employee is a driver of a company, he drives his employer
from the latter’s house to the office, upon arriving at the office he
spends his time playing mobile legends until the employer calls
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LABOR | ATTY. GOLANGCO
him. Is the time spent playing mobile legends part of the hours
worked?
Yes because as provided in Art. 84, hours worked include all
the time during which an employee is required to be on duty
or to be at a prescribed workplace
29. Would your answer to 26 be the same if the driver goes home
to his house until his employer calls for his service?
No. If a driver goes home to his house until his employer
calls for his service, it is considered as an interruption of his
working hours
30. The travel from home to work – is it considered as hours
worked?
No. It is not covered by Art. 84
31. Time spent going from his house to an office mandated
seminar – is it considered as hours worked?
No. It is not covered by Art. 84
32. Time spent attending a union meeting during office hours – is
it considered as hours worked?
Generally, CBA negotiations are not considered as hours
worked and not compensable except if:
a. There is an agreement
b. Established practice
c. Done during regular working hours
Grievance meeting: compensable if employees are required
by employer to be on the premises except when there is a
bona fide union and it is involved; and there is a CBA
Conciliation: not compensable if the conciliation is against
the employer
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Strike: not compensable except if there is an agreed strike
duration pay
33. Brownout for three hours the company told them that they
could do whatever they want but not leave the office is it
considered as hours worked?
Labor Code IRR: the time during which an employee is
inactive by reason of interruptions in his work beyond his
control shall be considered time worked either if the
imminence of the resumption of work requires the
employee’s presence at the work place or if the interval is
too brief to be utilised effectively and gainfully in the
employee’s own interest
DOLE Policy Instruction No.3: Brownouts running for more
than 20 mins may not be treated as hours worked provided
ANY of the following are present:
a. The employees can leave their workplace or go
elsewhere whether inside or outside the work
premises; OR
b. The employees can use the time effectively for their
own interest
34. Meal period definition
ART. 85 Meal Periods : subject to such regulations as the
Secretary of Labor 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
35. X is a messenger, however during the absence of Y – clerk, X
was asked to be on standby during his meal period, at 12:30pm he
was tasked to copy some documents? Is he entitled to receive
overtime pay? What if around 12:10 he was already ordered to
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LABOR | ATTY. GOLANGCO
photocopy documents which they will need by 1:30. Will he be
entitled to receive overtime pay?
General rule: meal periods are not compensable
ExceptionL where during the so-called meal period, the
labourers are required to standby for emergency work, or
said meal hour is not one of complete rest, such period is
considered overtime
36. X works from 8am-5pm from Mondays to Fridays his basic
salary is 600 per day if x was made to work on may 1 from 8 am-10
pm; how much is salary for the said date?
37. What is a night shift differential?
Additional compensation of not less than 10% of an
employee’s regular wage for every hour worked between
10pm-6am
38. Differentiate night shift vs overtime pay
Overtime pay
39. If the employee works from 10 pm to 12 midnight – on a regular
holiday will it still be 10 percent?
40. What is meant by undertime not offset by overtime?
41. Overtime pay vs premium pay
42. X wanted to join the company sports fest that is why he
brought home his work – he spent 6 hours at home working on it.
He now demands payment for the time he spent working at home;
should he be compensated?
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43. Special day how much additional compensation is he entitled
to receive?
44. Enumerate regular holidays.
45. Special Non- Working Days
46. Special Working Days.
47. Regular holiday vs Special Day
48. Are monthly paid employees entitled to receive holiday pay?
49. Aside from those enumerated in Article 82 – who else are not
entitled to receive holiday pay
50. X is an employee of Y company who worked during the
election – is it considered as a special non working holiday?
51. X wanted to work during the migrant worker’s day – what
compensation if any is he entitled to?
52. What is SILP?
53. Should the 1 year of service be rendered to a single employer?
54. What if the company provides their employee sick leave
benefits? Is the employer still mandated to provide employees
SILP?
55. Service charges – definition? Expound percentages?
56. What are wages
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LABOR | ATTY. GOLANGCO 2020-2021

57. Are commissions considered part of the employee’s wage?

58. X is a clerk of Hyundai motors – he was told that he would get

commissions for every sale he makes; is the commission part of the
employee’s wage?

59. What are allowances? Do they form part of the wage

60. Facilities vs supplements

61. Which one is deductible to an employee’s wage?

62. Cases 97-100

63. Bonus vs gratuity pay

64. X works for a company regularly gives 14th month pay when
the company exceeds the sales quota for the year – last year the
company failed to meet its sles quota due to the pandemic hence
the failure to give 14th month pay. X now wants to sue claiming
article 100 of the labor code and that the company has been
giving the employees this 14th month pay for 6 years will it prosper?
Would your answer be the same if there is a signed CBA
agreement? What if their reason was that they had to release
employees due to the pandemic?

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