MODULE 8-9: CONDITIONS OF EMPLOYMENT
See: IRR on guidelines in determining hours worked.
HOURS OF WORK (ART. 83 OF LABOR CODE)
Take Note: There is a definition as to the hours of worked.
This refers to all time that employee is required to be on
duty or in the prescribed workplace.
KW: DUTY + PRESCRIBED WORKPLACE
Example: Bank teller is required to be on duty from 8 am
to 3pm.
• Whole hours will be considered as hours of
worked.
• Significance: If there is any work beyond the
work hours, then the workers are entitled to
additional compensation in the form of an
overtime pay.
Take Note: Under the LC, the normal hours should not
exceed 8 hours. In our existing wage orders, when we
speak of normal hours of work, it has been fixed rate
hours. However, there are establishments that workers
less than 8 hours. If they consider that as normal hours
of work, then that is still consistent with the law because
the law says the normal hours of work should not exceed
8 hours.
• It’s not always fixed at 8 hours. But, generally, it
is 8 hours.
Several years ago, when I was still young, movie theaters
operate only 4 hours a day because that was during the
time of martial law and there has been strict regulations
of movie theaters and other establishments. So, it is not
uncommon that there are establishments that operates
less than 8 hours and consider it as their normal hours of
worked.
Another definition of hours worked:
All the time where the employee has been
permitted or suffered to work.
• IF it is outside your hours of duty or outside your
prescribed workplace, the employee has suffered
or permitted to work because the employer has
to pay certain transactions and ask the worker,
THEN that employer has been deemed permitted
or suffered to work.
• Emphasis: Important in determining whether
the work performed has exceeded the normal
hours of work, which entitle the work to overtime
pay.
KW: PERMITTED + SUFFERED
Take Note: In the IRR you will see there guidelines in
determining hours of worked, when there is a power
interruption for example, will you consider the period
where there was a power interruption hours worked?
Important!
How is it significant? To whom?
Workers paid based on time
• Very significant for workers who are paid base on
time. Because, if you are paid base on time, the
number of hours that you are required to be on
duty on the prescribed workplace or permitted to
suffer to work is relevant for purposes of
compliance with labor standards.
Workers paid based on result
• While it is true that with the performance of the
job, you get compensation regardless of the time
spent. If you look at our existing wage orders,
these workers paid by result must be entitled to
the minimum wage for 8 hours of work or if less
than 8 hours, at least in proportion thereof.
• There is also some relevance.
JMM: This is the reason why in the course syllabus, I have
placed keeping of time records and entries. And the
keeping of time-based entries is not only applicable to
time-based workers but also applies to managerial
employees, executives, and workers paid by results.
KEEPING OF TIME RECORDS AND ENTRIES
How is this relevant?
• For purposes of determining attendance. Kasi if
managerial employee ka, you are excluded from
entitlement to overtime pay and other similar
labor standards.
• IF you are a worker paid by results, as for
example, worker paid by a job on task or a piece
rate worker whose time is not supervised, then
you are likewise not entitled to overtime. BUT you
cannot stop the employer from requiring you to
keep a time record. NOT for the purpose of
compensating you from overtime, BUT to
determine your attendance in the office.
General rule: Normal hours of worked shall not exceed
8 hours.
Remember:
• There are types of employments where the hours
of worked is different.
Exception: DIFFERENT WORK HOURS
UNDER RA 7610 (CHILD EMPLOYMENT)
Make a distinction between the age of the child to
determine the hours of worked.
• If below 15 in those instances allowed by law –
hours of work shall not exceed 4 hours a day or
20 hours a week. (lower)
 • If 15-17 – hours of work shall not exceed 8 hours
a day.
RA 10361 (DOMESTIC WORKERS ACT)
When the law does not prescribe the specific hours of
work of the kasambahay, impliedly we can infer that
because the kasambahay is entitled to a daily rest period,
so we deduct 24 hours from the 8 hours = maximum work
of our kasambahay should not exceed 16 hours a day.
EMPLOYMENT OF HEALTH PERESONNEL
• Different types of employment – in the
employment of a health personnel – where there
is a special provision with regards to waiting time
WAITING TIME
If the employee is required or engage to wait, that waiting
time is considered as hours worked.
• Example: Endorsement period of a health
personnel, if the health personnel is required the
employer to wait.
WORKING WHILE ON CALL
See: DO 182, S 2017
Applies that personnel is required to leave a word at his
home or with the company official where he may be
reached, then he is deemed to be working while on call –
the whole time will be considered as hours worked.
• IF there is a proof that work was performed
beyond 8 hours – THEN they will be entitled to
overtime for the covered personnel.
(nagpakita siya picture ni eddie Garcia lol, pagkahibaw
niya nay accident, iya gi apil sa iya syllabus)
WORKERS IN THE MOVIE INDUSTRY
There is also a provision on waiting time. By the way,
regarding these workers in the movie and television
industry, it makes mention of the following workers:
cameramen, production assistant, teleprompter, VTR
Editor, newscaster/anchor, reporters/news
correspondents. These are considered workers and are
being governed by the Labor Code of the Philippines.
Don’t be confused with talents although they are covered
by the same regulation.
• Talents are considered as independent
individual contractors where no employer-
employee relationship exists, but they are
still within the ambit of protection of this
labor advisory No. 04 Series of 2016. The
workers I mentioned in the TV and movie
industry, there is a special provision on waiting
time.
WAITING TIME IN THE MOVIE INDUSTRY
Their waiting time is to be considered as hours work IF
they are required to wait.
• Example: There’s a shooting for example and I
am the cameraman. The actor/ actress comes in
late, so I have to wait until the shooting starts.
o The whole time will be considered as
hours work.
o IF it exceeds the normal hours of work -
THEN that will entitle the workers to
additional compensation in the form of
overtime pay.
MEAL PERIOD
We also make mention of a meal period under Art. 85
of the Labor Code.
Is it the duty of every employer to provide their
employees a time-off for regular meals?
• YES
How long?
• Not less than 60 min. Or 1 hour.
Is it compensable?
• No, it is not compensable hours work. This
meal period, the law does not fix what part of the
work schedule will the employee avail of this meal
period.
• It could be at the start of his work shift, middle,
or the last part of his work shift. Customarily, it’s
I the middle of the work shift.
Can it be shortened?
• The law allows certain instances when the meal
period may be shortened to less than 60
min. However, the law requires that in the case
it is shortened to less than 60 min., then the
shortened meal period will be considered as
hours work.
• In case of shortening the meal period, it shall in
no case be less than 20 min.
• The whole period shall be considered
compensable hours work BECAUSE the employer
has in effect deprived the employee of enjoying
at least 1-hour non-compensable meal period.
There are also type of jobs where the meal period has to
be shortened because there are things to be one in the
operation of the business.
INSTANCES WHEN THE MEAL PERIOD MAY BE
SHORTENED:
1. When the work is non-manual
- It is not physically strenuous. The employer
may shorten the meal period.
- IF work is physically strenuous, the employer
cannot shorten the meal period. Otherwise,
the worker will have no more time to rest,
and take his meals.
The labor code provides to have a meal period, but
does the labor code require the employer to
provide meals?
• NO, it’s just the period and not the actual meal.
You are lucky if you work for a company that
provides a meal free of charge.
2. To prevent loss or damage of perishable
goods
- We have discussed these instances where the
company operates not less than 16 hours a
day such as utility companies like VECO, hotel
establishments operate for 24 hours, so there
is a need for a meal period.
1998 CASE OF SIMEDARBY
The 1998 case of Simedarby will tell us that:
• EVEN IF the employer decides to shorten the
meal period, the employer is allowed to reinstate
the 1-hour meal period.
• IF he reinstates the 1-hour meal period. Effects:
o 1-hour period will be considered non-
compensable.
o There will be no diminution of benefits
that will be incurred by the employer.
• REASON: It is basically an exercise of
management prerogative.
o If you shorten it, then you have to
compensate. The shortened meal period
shall be considered hours work.
o If it turns out for that particular day, you
have rendered more than 8 hours, then
you will be entitled to overtime pay.
NORMAL WORK WEEK V. COMPRESSED WORK
WEEK
REST PERIOD
The labor code provides that a worker shall be entitled
to a rest period or rest day after 6 consecutive
normal work days.
• Since a week consists of 7 days, if the employees
are made to work 6 consecutive workdays, the 7th
day will be considered as the worker’s rest day.
• The rest day shall not be less than 24 consecutive
hours.
o A rest day which consists of not less than
24 consecutive hours is non-
compensable.
General rule:
If you’re work week is 6 days a week, then 6 multiplied
by 8 hours, you have a 48 hour work week.
Exception to 6-day workweek:
1. Health personnel in clinics or hospitals
situated in a city or municipality with a
population of at least 1M or a bed capacity
of at least 100.
• In that situation, the law provides health
personnel a five-day work week to enable
them to rest.
• You are quite aware of the strenuous
nature of the work of health personnel.
DO 182, S. 2017
Provides the guidelines governing employment and work
conditions of health personnel in private healthcare
industry. This D.O. supersedes the Omnibus Rules
implementing the Labor Code at least those
provisions which are inconsistent with the guidelines are
deemed impliedly repealed.
• Under these guidelines of employment of health
personnel, it has a broader definition compared
to the Omnibus Rules.
SAN JUAN DE DIOS HOSPITAL
Health personnel refer to employees engaged in health
and health-related work.
• They also include all other allied health personnel.
There was decision by the SC way back in 1997
involving San Juan de Dios Hospital that illustrates
the application of the Labor Code on employment of
health personnel. The issue was whether these health
personnel were entitled to full day’s wage on the sixth and
seventh day if they are required to work beyond 5 days a
week.
JMM: Check if the court ruled in favor of the hospital or in
favor of the health personnel. You will note there was a
policy instruction promulgated by the Sec. of Labor that
was declared not valid because it violated the Labor Code
on the compensability of health personnel who are
required to work beyond 5 days.
HERE: Favor San Juan. The SC said there is nothing in
the law which states that they shall be entitled to full
weekly wage for seven days after completion 40 hours
workweek. Policy Instruction No. 54 was declared void
for being in contravention with Art. 83 of the Labor
Code.
• IF the health personnel are employed in hospitals
or clinics without meeting the minimum
population or prescribed bed capacity – THEN
they will be governed by the Labor Code.
• They will have a normal 6-day work week.
COMPRESSED WORK WEEK
Compressed Work Week is not found in the Labor
Code. It was a creation of the Dept. of Labor in the olden
days when the country was facing an oil crisis because
there were wars in the Middle East. The prices of oil
spectacularly gone up. We cannot afford to buy oil if the
prices are too high. So, the country had to adopt a system
to conserve energy and power. The DOLE together with
the employer and employee sector came up with the idea
of adopting a Compressed Work Week.
COMPRESSED WORK WEEK DEFINITION
An alternative arrangement whereby the normal work
week is reduced to less than 6 days but the total number
of work hours per week shall remain at 48 hours.
What is a compressed workweek?
It is an alternative arrangement whereby the normal
workweek is reduced to less than 6 days but the total
number of normal work hours per week shall remain at
48 hours. In other words, the normal workday is
increased to more than 8 hours, without corresponding
overtime premium.
Is it valid?
Nobody has questioned the legality of the compressed
workweek arrangement. On the contrary, there are
decisions rendered by the SC where they have even cited
the Dept. regulations governing a compressed workweek.
Perhaps that is a recognition that a compressed
workweek is valid.
Why valid?
We are just reducing the normal work week to less than
6 days, take 5 days a week and simply compressed it.
When you compressed a 48-hour workweek, then your
normal workday will increase – 9.6 hours a day.
• The employer is able to save 1 day where it could
have spent money for the operation of his
business.
• On the other hand, the workers are able to enjoy
an additional day of rest on top of their rest da.
They will be able to save money for meals and
transportation. It works to the advantage in both
employer and employee.
What does the employer get from this
arrangement?
The employer is not required to pay the overtime
pay of the worker even if they work more than 8 hours a
day as long as they do not exceed more than 12 hours
a day or 48 hours a week.
Take Note: Please note that under our existing guidelines,
when you adapt a compressed workweek, it requires
the consent of at least the majority of the
employees in the establishment to agree to it.
• This arrangement is intended to be merely
temporary in nature.
• It is classified by the DOLE as a flexible work
arrangement.
DOLE OBJECTIVE OF CWW
CWW is intended to promote business competitiveness
and productivity. To lower operating cost and thereby
improve efficiency reducing work related expenses. And
also to achieve flexibility in fixing hours of work,
compatible with business requirements and employees
need for a balanced work-life.
On the 6th day, the employee will enjoy an additional day
of rest. This is different from a rest day.
• Since the rest day, IF you are made to work on
your rest day – THEN there is a payment of
premium pay.
LINTON COMMERCIAL AND 2009 CASE OF ROSA
Take note of the 2007 case of Linton Commercial and
2009 case of Rosa, where the SC declared the CWW
as illegal.
• Where the work days were reduced by the
employer from 6 to 3 days a week. Although there
is no proof that the company was suffering
economic losses. That will unduly deprive the
workers of their pay.
• When you got them their work, they are looking
at working 6 days a week and here you are
reducing the work days to less than 6 days and
no proof of losses on the part of the employer. So
the SC declared the work week arrangement as
illegal.
• After 6 consecutive normal work days, the
employer must provide a rest day. A right to a
weekly rest day.
• The rule is that the workers cannot be
required to work on a rest day against their
will
- you can volunteer to work but you cannot be
forced, required and be compelled to work on
your rest day.
- There are exceptions provided by the
Labor code in Art. 92 – one of the easiest
provision to remember is to prevent loss or
damage to perishable goods – you can
require your workers to work on their
scheduled rest day – they will be entitled to
additional compensation (premium pay).
ART 93 (B)
What caught my attention is Art 93 (b) – there are
establishments whose operation the employer cannot
schedule a rest day to their workers and the employer
cannot provide a regular work schedule for them.
In the past, the arrastre workers can only work if there is
a ship coming to the port to unload the cargoes. The
ship’s schedule was not regular/consistent.
• The Labor code provides for a situation that will
address where the workers’ work days/rest
day cannot be fixed.
o There is an additional compensation
given to this type of workers if they
perform work on Sundays and holidays.
OBSERVANCE OF THE EMPLOYER OF EXISTING
OCCUPATIONAL AND SAFETY REGULATIONS
Part of the condition of employment will be observance of
the employer of existing occupational and safety
regulations.
Notably in 2017 there are 2 D.O. issued by the DOLE:
(take note of these)
• DO 178 – Safety and Health measures for
workers who by nature of their work have to
stand.
• DO 184 – Safety and Health measures for
workers who by nature of their work have to
spend long hours sitting.
STANDING FOR LONG HOURS
DOLE came up with these DO to address the health and
safety of workers.
• This includes for example retail and service
establishments.
o Others: teachers, security personnel
• When you go to a grocery store, most of the retail
workers are standing because of the nature of
their work. Or the assembly line workers who
usually stand in performing their work.
One time, I visited a client in MEPZA – a Japanese
company and in their assembly line, I observed that their
workers are standing while working, that is the nature of
their work. Teachers are also standing. Security personnel
also stand while working.
DOLE RECOMMENDATIONS:
DOLE has recommended some measures like
implementing a rest period to break and cut the time
spent on standing or walking.
• To provide them tables or work surfaces with
adjustable heights to allow the workers to
alternately the sit and stand while performing
their tasks.
• To provide these workers with accessible seats to
be used during rest period and even during
working hours provided that they can perform
their duties in that position without detriment to
their efficiency.
• Like providing them with small foldable stools
which can be easily stalled away not to hamper
their work area. Or allowing them to use
footwear.
SITTING FOR LONG HOURS
DOLE also gave us examples of those employees whose
nature of work requires them to sit for long hours:
• (sedentary work) computer/clerical works,
working in the field of transportation, those
working in toll booths, IT and business processing
management.
DOLE RECOMMENDATIONS:
• to provide these workers with regular 5 –minute
break every 2 hours of sitting time.
• Ensure their work station is designed
appropriately for the type of work or perhaps
• change the work system by providing seat stand,
work station or properly designed work station to
facilitate in conducting standing meetings.
TOPIC 9: MINIMUM LABOR STANDARDS
Labor Code makes it applicable to all establishments when
we speak of minimum labor standards, whether operating
for profit or not.
General rule: The provisions of minimum labor
standards will apply to everyone.
Except the following employees:
1. Managerial employees
2. Government employees
3. Field personnel
4. Members of the family who are dependent of
support
5. Persons in personal service of another
6. Workers paid by results
The provisions of the title differs to hours of work,
overtime pay, premium pay, night-shift differential pay,
service charges, service incentive leave. These are
minimum labor standards.
What do we mean when we say minimum? The law
fixes the minimum rate for workers who are covered to
the provision would be entitled to.
ARTICLE 82
Art. 82 – speaks that among those who are excluded are
managerial employees.
• Managerial employees – includes managerial
staffs.
MANAGERIAL EMPLOYEES
Who are they managerial employees?
• There is a long provision under the IRR as to who
may qualify as members of the managerial staff.
• Notably, these officers are those who customarily
and regularly exercises discretion and
independent judgement in the exercise of their
job or performance of their job. Usually devoting
80% or more in the performance of work directly
to management policies.
• Commonly known as “front-level managers or
supervisors” in the hierarchy of managers but the
labor code describes them as part of the
managerial staff.
• TN: Do not confuse them as supervisors under
labor relations, who may or may not be officers
or members of the managerial staff for purposes
of labor relations. BECAUSE – there are different
 classifications of employees in Labor Standard Ex. Production assistance of actors and actresses who are
and Labor Relations. attending to the person with regards to their personal
matters.
LABOR STANDARDS LABOR
RELATIONS WORKERS PAID BY RESULTS
1. Managerial 1. Managerial Either:
- Includes 2. Supervisor 1. Workers who are paid in a job or task
supervisors 3. Rank and File 2. Workers who are paid on piece
or Provided: that there must be proof that their time and
managerial performance are not supervised.
staff if they
qualify as • IF there are time and performance IS NOT
one supervised – THEN they are excluded from the
2. Rank and File minimum labor standards.
• IF their time and performance is supervised –
• These employees are not entitled to: THEN they are entitled to minimum labor
1. Overtime pay standards provision.
2. Prescribed hours of work
3. Holiday pay Take Note:
- They are not entitled to some of the labor 2006 CASE OF FINIARANDA
standards because they are supposed to be This case involved a ship engineer. The issue is whether
paid more than the mere rank and file, and he is entitled to overtime pay or premium pay. The SC
better privileges of mere rank and files. But look into his duties and obligations, and said that although
this is only a presumption. he is not a managerial employee per se, he is part of the
- They are usually treated by the employers in managerial staff. Therefore, excluded from entitlement of
terms of benefits and privileges better than overtime pay and premium pay.
rank and file.
NATIONAL SUGAR REFINERIES
• IT IS NOT THE TITLE THAT CONTROLS, BUT The supreme court cited Art. 82 and the employees who
THE DUTIES AND RESPONSIBILITIES. are excluded from the minimum labor standards.
o Look at the job description for purposes
of labor standards. What are wage-related benefits? What are
benefits related to the workers wage?
GOVERNMENT EMPLOYEES
These are employees of the government, its subdivisions, DO NO. 10, S. 1998 – made mention of wage related
instrumentalities, corporations which have their own benefits. Example:
charter, they are excluded because they have their own 1. Overtime pay
laws. Particularly, under the civil service laws rules and 2. Bonus pay
regulations. 3. Night shift differential pay
4. Premium pay
FIELD PERSONNEL 5. Holiday pay
Such as non-agricultural employees or employees who 6. 13th month pay
performs their work, away from the principal place of
business or branch and its hours in work in the field, 2 CATEGORIES OF WORKERS PAID BY RESULTS:
cannot be determined with reasonable certainty because (found in the 1999 case of Lambo and 2002 case of Tan)
there is no way that an employer would be able to monitor 1. Those whose time and performance are
what they are doing, when they are working in the field. SUPERVISED
2. Those whose time and performance are
MEMBERS OF THE FAMILY WHO ARE DEPENDENT unsupervised
ON THE FAMILY FOR SUPPORT
You don’t give them holiday pay or overtime pay, because POINT: as regards to drivers’ conductors, are they
they rely on the head of the family for support because considered field personnel, since all their time are spent
they enjoy better benefits and privileges while working at outside the office of the employer?
home. - DEPENDS. IF the driver’s conductor is
required to be in a specific place in time, with
PERSONS IN THE PERSONAL SERVICE OF fixed hours of work, such that their hours of
ANOTHER work in the field can be reasonably
determined with certainty. THEN they would
not qualify as field personnel. This was held
 in the case of Duterte, the SC said there that
the time and performance of the workers
were supervised.
- Just because the worker is working outside
the office, it does not necessarily follow that
he is field personnel. LOOK CLOSELY IN THE
ELEMENTS TO QUALIFY AS ONE.
MINIMUM LABOR STANDARDS
OVERTIME PAY – employee is entitled if he have
performed or rendered service beyond the 8 hours.
• Rate of the worker will depend if the work is done
on the ordinary working day or during a holiday.
ENTITLEMENT OF OVERTIME
The Supreme Court said in the 1991 case of Tagampan,
as well as the case of Milsen. There must be an adequate
proof of actual work, so the claimant who is the employee
must prove that he has worked beyond 8 hours of work.
The burden of proof is with the employee that the
employee has rendered beyond 8 hours of work and
beyond the prescribed normal hours of work.
The SC has been consistent in denying a claim for
payment of overtime.
OVERTIME CANNOT BE WAIVED
Can overtime pay be waived?
• NO. You cannot waive overtime because it is
compensation for additional services rendered by
the employee. That is the general rule. It is
considered contrary to public policy.
• However, based on decided cases in the SC, it
seems that there are exceptions. One good
example is the waiver of overtime pay in CWW
arrangement.
EXCEPTIONS OF WAIVER OF OVERTIME PAY
• The SC has consistently recognize non-
entitlement of overtime pay if the employer
and employee are under a CWW.
• We have 2 decided SC cases. The 1993 case of
Lagati and the 2008 case of Bisig ng
Manggagawa sa Tryco.
UNDERTIME CANNOT BE OFFSET TO OVERTIME
The provision of the Labor Code that under time cannot
be offset by overtime performed on a particular
day. To do otherwise, that would unlawfully deprive the
employee of additional compensation in the form of
overtime.
- Undertime ka ngayon, the following day, the
employer cannot offset your undertime for
overtime. You still need to be paid. After all,
when you render overtime, there is an additional
compensation on top of your basic wage.
OVERTIME PAY V. PREMIUM PAY
Is overtime pay the same as premium pay?
• NO, it is not.
PREMIUM PAY
When you speak of premium pay, it is additional
compensation given to a worker for the first 8 hours when
it is performed on a rest day or holiday.
OVERTIME PAY PREMIUM PAY
Overtime is worked Premium pay is for
performed beyond the the first 8 hours
prescribed 8 hours. additional
compensation given
to the worker who
works on his rest day
or holiday.
HOLIDAY PAY
The law provides for the list of regular holidays,
nationwide special days, and there could also be a
separate list of local holidays.
• But, the law provides for the list of holidays.
• In one SC case, the court noted the holiday pay
law is intended to benefit the daily-paid workers
whose income is circumscribed by the no work,
no pay’ principle.
• IF there are many regular holidays, without the
holiday pay law, these workers would suffer and
won’t get paid at all.
• Our listing of regular holidays in the Philippines is
limited. We have 12 regular holidays 2 of which
are Muslim holidays.
RETAIL LESS THAN 10 WORKERS NOT OBLIGED
FOR HOLIDAY PAY
Under the labor code, aside from those employees under
Art. 82 who are not entitled to holiday pay, the labor code
also provides that retail and service establishments
employing less than 10 workers are not obliged to
pay holiday pay to their workers.
• If you see a kiosk or a store selling potato, if the
establishment is employing less than 10 workers
or in a spa with less than 10 workers, these
workers are not entitled to holiday pay, even if
they do not fall under the list in Art. 82.
POWER OF THE PRESIDENT TO FIX SPECIAL AND
REGULAR HOLIDAYS
In what law can find the power of the President to
fix special and regular days?
• We have Executive Order 292 as amended.
The law authorizes the President to change the
date of regular holidays, special days, unless
Congress has fixed the day on a particular date.
HOLIDAY PAY = 100% OF EMPLOYEE’S BASIC
WAGE
If you look at the Labor Code and your covered worker
works on a regular holiday.
• He gets twice his regular wage or the so-
called double pay.
• He gets compensated twice his regular rate-
double pay.
• If the employee doesn’t work on a regular
holiday, he still gets paid and it is called holiday
pay.
If he works, aside from the holiday pay, he also
gets premium pay equivalent to his 8 hours of
work.
The holiday pay has a component in case the employee is
made to work on a regular holiday.
There are 3 instances that are very common where you
need to know how much a covered employee is entitled
to, if this happens.
REGULAR HOLIDAY + FALLS ON REST DAY =
HOLIDAY PAY + PREMIUM PAY
• If our situation is regular holiday falling on the
employee’s scheduled rest day, he will be entitled
to holiday pay on top of the premium pay.
• If an employee doesn’t work on his rest day, he
does not get paid.
• If he works, aside from his basic pay, he gets
additional compensation in the form of premium
pay.
Two regular holidays falling on the employee’s
scheduled rest day.
• You pay the holiday pay for the two holidays on
top of the work performed on the employee’s rest
day.
Two regular holidays falling on the same day.
• This situation has happened in the past and may
happen in the future.
HOLIDAY FORFEITURES
Is there an instance when an employee is not
entitled to holiday pay at all?
The Labor Code is silent. However, the implementing
rules provide one situation.
• When an employee is on leave or absent without
pay, on the work day immediately preceding a
regular holiday unless the employee works on
such regular holiday.
o That is the only instance under the
implementing rules where the
employee does not get paid a
holiday pay.
o It would be unfair since he would be
enjoying a longer vacation than his fellow
workers. So, penalize him by not entitling
him with holiday pay.
2002 CASE OF SAN MIGUEL CORPORATION
The 2002 case of San Miguel Corporation where the
SC said that Muslim Holidays likewise apply to non-
Muslims in Muslim regions.
• In ARMM, the Muslims there have their own
Muslim Code of The Philippines and they have
provided there Muslim holidays.
• They are not the only ones enjoying Muslim
holidays in those regions.
2004 CASE OF ASIAN TRANSMISSION
CORPORATION
Another case is the 2004 case of Asian Transmission
Corporation. It may happen that there are two regular
holidays falling on the same day.
Should the employees be paid for those two
regular holidays or only for one holiday?
• The Department of Labor way back in 1993, came
up with an explanatory bulletin dated march
11, 1993, treating the situation where in two
regular holidays fall on the same day.
• The workers complained that since there are two
holidays on the same day they were in effect
deprived of one regular holiday.
• The SC said No, because in that situation
there is no reduction in the number of
regular holidays. That DOLE explanatory
bulletin was affirmed as valid by the SC.
FLEXI HOLIDAY SCHEDULE
What is a FLEXI-HOLIDAY SCHEDULE?
There is a regular holiday this week and the employer
would want that instead of the employees enjoying the
holiday, it should be enjoyed on some other day.
• Under the flexi-holiday rule, one where the
employees agree to avail the holiday at some
other days is valid provided that there is no
diminution of existing benefits as a result of such
arrangements.
SERVICE INCENTIVE LEAVE
Service Incentive Leave (SIL) is not the same as the
usual vacation leave with pay. SIL is a leave benefit but it
requires the employee to be entitled to render at least
1 year of service within the calendar year – whether
the service is continuous or broken.
How many days?
• At least 5 days with pay
Is it a paid leave?
• Yes.
If it is not availed by the employee, he may claim the
cash equivalent from the employer at the end of the
calendar year.
• It is not exactly the same as the usual vacation
leave with pay.
• The purpose is the same. To enable the workers
to rest.
 (those who are not workers except
VACATION LEAVE expressly excluded under managerial employees
Take Note: VL is not found in the Labor code, usually it is Art. 82 to entitlement to The law is clear that the
a company grant when they give workers a VL – usually service charge) and 15% service charges that are
given to workers who have acquired regular employment. for management – to be paid to the covered
• Ex. After the employee has satisfactorily sued by management to employees shall not be
completed the period of probation and becomes answer for losses and considered in determining
regular and permanent – that is when most breakage or for compliance if ever there is
establishments extend to these workers a VL with distribution among a wage order that
pay. managerial employees. increases the prevailing
• It is not provided in the law. It all depends upon minimum wage – this is
an employer to fix the terms and condition of VL also under the
with par – it can be forfeited, or converted to cash amendment.
if not used depending on the discretion of the
employer.
• Why? Because it is not regulated by law, what is The IRR is found in DO 206, series of 2019.
regulated by law is SIL.
What establishments are covered?
NIGHT SHIFT DIFERRENTIAL PAY • All establishment collecting service charges for
Who are covered? work or service rendered or offered.
• Employees who perform work between 10 PM PM
and 6Am. What is this service charge?
• Between those hours, they are entitled to the SERVICE CHARGE
additional compensation to atleast 10% of It refers to the amount added to the bill for work or
workers’ basic wage. service rendered.
• Working between those hours is working in grave • So if these establishments do not collect service
shift. charges, there is nothing to discuss about
entitlement to service charge. If they do, they are
Rule: It is better to work during day time compare to placed in the ambit of this amendment.
working during night time. Night time is intended for
workers to sleep, to rest and be with their family. Who are the covered employees?
• If you are deprived of that opportunity to sleep at • ALL employees except managerial employees
night, rest at night an be with their family at under direct employed.
night, the law entitles the worker to additional • As among the covered employees, those entitled
compensation for working between those hours will be regardless of their position, whether
of the night in the form of NSDP. casual, project, seasonal, probationary, regular;
regardless of designation; employment status or
Are there establishment excluded? NO. method of wages, whether they are paid made
SERVICE CHARGES on time, piece rate, on task, commission or the
Art. 96 as amended by RA 11360. Overview of the case may be, they are covered employees.
amendment particularly hotel and restaurant business.
DOLE, LABOR ADVISORY #10- SERIES OF 2020 Manner and frequency of distribution?
• Under DOLE, Labor Advisory #10- series of 2020 • Completely and equally distributed based on
– the Sec of DOLE clarified the effectivity of RA actual hours or days of work.
11360. • IRR also includes those already receiving the
• Effective on Sept 4, 2019 after its publication in benefit of sharing in the service charges.
the newspaper of general circulation on Aug. 19,
• The service charges shall be given not less than
2019. once every two weeks or twice a month at
• The IRR of these law was published on Nov 26, intervals not exceeding 16 days (parang wages
2019 and this is expressly confirmed by the Sec din siya in the frequency of payment)
of Labor in this aforementioned labor advisory.

OLD LAW NEW LAW Labor Advisory No. 14, series of 2019 –
these service charges all service charges Distribution of collected service charge in relation to non-
collected by hotels, collected by these diminution of benefits
restaurants and similar establishments shall • The law took effect on Sept 4, 2019. There may
establishments will have be distributed be instances that prior to the effectivity of the
to be distributed at the completely and equally law, the hotels and similar establishments have
rate of 85% for all among the covered been collecting service charges.
covered employees
Would the collected service charges still be
distributed to those employees including
managerial employees who in the past has been
entitled to service charges?
YES. Because at the time of the effectivity of the law, the
service charges are already collected. It would be unfair
for those employees including the managerial employees
who received service charges before to be deprived
because of the passing and effectivity of the law excluding
them form entitlement moving forward.

REASON: Because according to the secretary, it would

violate the principle on non-diminution of benefits. All
employees who are already receiving service charge prior
to or at the time of the effectivity of the law and its IRR
including contractor’s employees shall continue to be
entitled to the distribution of collected service charge. So
as not to be unfair to the contractor’s employees who
were getting a share on the service charge before the
effectivity of the law, this labor advisory has clarified that
for collected service charges they should continue to be
entitled. After the effectivity they will be excluded to the
entitlement of service charges.