EMPLOYEES
Rights of employees
The Bureau of Working Conditions, a staff department of the Department of Labor and
Employment, compiled a list of Basic Rights that every worker is entitled to. These rights ensure
the safety and health of all workers.
1. EQUAL WORK OPPORTUNITIES FOR ALL
The State shall protect labor, promote full employment, provide equal work opportunity
regardless of gender, race, or creed; and regulate relations between employees and
employers.
2. SECURITY OF TENURE
Every employee shall be assured security of tenure. No employee can be dismissed from
work except for a just or authorized cause, and only after due process.
Just cause refers to any wrongdoing committed by an employee; authorized cause refers
to economic circumstances that are not the employee’s fault.
3. WORK DAYS AND WORK HOURS
An employee must be paid their wages for all hours worked. If their work hours fall
between 10:00 p.m. and 6:00 a.m., they are entitled to night shift pay in addition to
their pay for regular work hours. If they work over eight hours a day, they are entitled to
overtime pay.
4. WEEKLY REST DAY
A day-off of 24 consecutive hours after six (6) days of work should be scheduled by the
employer upon consultation with the workers.
5. WAGE AND WAGE-RELATED BENEFITS
Wage is the amount paid to an employee in exchange for to the service that they
rendered to their employer. Wage may be fixed for a given period.
How is minimum wage determined?
In 2012, the Department of Labor and Employment (DOLE), through the National
Wages and Productivity Commission (NWPC), implemented the two-tiered wage
system (2TWS). The two-tiered wage, as a policy reform measure, is aimed at
minimizing the unintended outcomes of mandated minimum wage, improving the
coverage of the vulnerable sectors, and promoting productivity improvement and
gain-sharing.
HOW DOES THE 2TWS WORK?
The two-tiered wage system is a reform that maintains the mandatory minimum wage
(under R.A. 6727 or the Wage Rationalization Act) as the first tier; complemented by
a voluntary productivity-based pay scheme as the second tier.
TIER 1
Minimum wage rates are determined by factors such as poverty threshold, prevailing
wage rates as determined by the Labor Force Survey, and socio-economic indicators
(i.e. inflation, employment figures, Gross Regional Domestic Product, among others),
which insures better workers protection.
TIER 2
Over and above minimum wage is the voluntary productivity-based pay, which
encourages workers and enterprises to become more competitive and productive by
rewarding employees supplementary pay based on the quality of their performance.
HOW IS THE MANDATORY MINIMUM WAGE SET?
There are four factors that influence the fixing of minimum wage, namely:
1. Needs of workers and their families
o Demand for living wage
o Wage adjustment vis-à-vis Consumer Price Index (CPI)
o Cost of living and changes therein
o Needs of workers and their families
o Improvements in standards of living
2. Capacity to pay
o Fair return on capital invested and capacity to pay of employers
o Productivity
3. Comparable wages and incomes
o Prevailing wage levels
4. Requirements of economic and social development
o Need to induce industries to invest in the countryside
o Effects on employment generation and family income
o Equitable distribution of income and wealth along the imperatives of
economic social development
Based on these factors, the regional boards determine the minimum wage at least once
a year.
6. PAYMENT OF WAGES
Wages should be paid directly to the employee in cash, legal tender, or through a bank.
Wages shall be given not less than once every two weeks or twice within a month at
intervals not exceeding 16 days.
7. FEMALE EMPLOYEES
Women are prohibited from engaging in night work unless the work is allowed by the
following rules: industrial undertakings from 10 p.m. to 6 a.m., commercial/non-
industrial undertakings from 12 m.n. to 6 a.m., or agricultural takings at night provided
that she has had nine consecutive hours of rest.
Welfare facilities, such as separate dressing rooms and lavatories, must be installed at
the workplace.
8. EMPLOYMENT OF CHILDREN
The minimum employment age is 15 years of age. Any worker below 15 years of age
should be directly under the sole responsibility of parents or guardians provided that
work does not interfere with the child’s schooling or development.
The minimum age of employment is 18 years for hazardous jobs, and 15 years for non-
hazardous jobs. Hazardous jobs are
9. SAFE WORKING CONDITIONS
Employers must provide workers with every kind of on-the-job protection against injury,
sickness or death through safe and healthful working conditions.
10. RIGHTS TO SELF-ORGANIZATION AND COLLECTIVE BARGAINING
Every worker has the right to self-organization, i.e., to form or to join any legitimate
workers’ union, free from interference of their employer or the government. All workers
may join a union for the purpose of collective bargaining and is eligible for union
membership on the first day of their employment.
Collective bargaining is a process between two parties, namely the employer and the
union, where the terms and conditions of employment are fixed and agreed upon. In
collective bargaining, the two parties also decide upon a method for resolving
grievances. Collective bargaining results in a contract called a Collective Bargaining
Agreement (CBA).
THE WORKERS BASIC RIGHTS
o Equal Work Opportunities for All
The State shall protect labor, promote full employment, provide equal work
opportunity regardless of gender, race, or creed; and regulate employee-employer
relations.
Male and female employees are entitled to equal compensation for work of equal
value and to equal access to promotion and training opportunities. Discrimination
against female employees is unlawful. It is also unlawful for an employer to require a
condition of employment that a woman employee shall not get married, or to
stipulate expressly or tacitly that a woman employee shall be deemed dismissed
upon marriage.
The minimum age of employment is 18 years for hazardous jobs, and 15 years for
non-hazardous jobs. But a child below 15 maybe employed by parents or guardians
in a non-hazardous job if the employment does not interfere with the child's
schooling.
o Security of Tenure
Every employee shall be assured security of tenure. No employee can be dismissed
from work except for a just or authorized cause, and only after due process.
Just Cause refers to any wrongdoing committed by an employee including:
1. serious misconduct
2. willful disobedience of employers' lawful orders connected with work
3. gross and habitual neglect of duty
4. fraud or willful breach of trust
5. commission of crime or offense against the employer, employer's family
member/s or representative
6. other analogous cases
Authorized Cause refers to an economic circumstance not due to the employee's
fault, including:
1. the introduction of labor-saving devices
2. redundancy
3. retrenchment to prevent losses
4. closure or cessation of business
Due Process in cases of just cause involves:
1. notice to employee of intent to dismiss and grounds for dismissal
2. opportunity for employee to explain his or her side
3. notice of decision to dismiss
In authorized causes, due process means written notice of dismissal to the employee
specifying the grounds, at least 30 days before the date of termination.
The inability of a probationary employee to meet the employer's prescribed
standards of performance made known to him or her at the time of hiring is also a
just cause for dismissal.
o Work Days and Work Hours
Work Day refers to any day during which an employee is regularly required to work.
Hours of Work refer to all the time an employee renders actual work, or is required
to be on duty or to be at a prescribed workplace. The normal hours of work in a day
is 8 hours. This includes breaks or rest period of less than one hour, but excludes
meal periods, which shall not be less than one hour.
An employee must be paid his or her wages for all hours worked. If all or any part of
his or her regular work hours falls between 10:00 p.m. to 6:00 a.m., a covered
employee shall be entitled to a night shift pay in addition to his or her pay for
regular work hours. If he or she works for more than 8 hours in one day, he or she
shall be entitled to overtime pay.
o Weekly Rest Day
A day-off of 24 consecutive hours after 6 days of work should be scheduled by the
employer upon consultation with the workers.
o Wage and Wage-Related Benefits
Wage is the amount paid to an employee in exchange for a task, piece of work, or
service rendered to an employer. This includes overtime, night differential, rest day,
holiday and 13th month pay. It also includes the fair and reasonable value of board,
lodging and other facilities customarily furnished by the employer.
Wage may be fixed for a given period, as when it is computed hourly, daily or
monthly. It may also be fixed for a specified task or result. If wage is for a fixed
period, the minimum wage for a regular 8-hour workday shall not be lower than the
minimum daily wage applicable to the place of work as determined by the Regional
Tripartite Wage and Productivity Board having jurisdiction over workplace.
If wage is paid by result, the worker shall receive at least the prescribed minimum
wage for 8 hours of work. The amount may be increased or reduced proportionately
if work is rendered for more or less than 8 hours a day.
An employer cannot make any deduction from an employee's wage except for
insurance premiums with the consent of the employee, for union dues, or for
withholding taxes, SSS premiums and other deductions expressly authorized by law.
o Payment of Wages
Wages shall be paid in cash, legal tender at or near the place of work. Payment may
be made through a bank upon written petition of majority of the workers in
establishments with 25 or more employees and within one (1) kilometer radius to a
bank. Payment shall be made directly to the employees.
Wages shall be given not less than once every two (2) weeks or twice within a month
at intervals not exceeding 16 days.
o Employment of Women
Nightwork prohibition unless allowed by the Rules:
o in industrial undertakings from 10PM to 6AM
o in commercial/non-industrial undertakings from 12MN to 6AM
o in agricultural undertakings, at night time unless given not less than 9
consecutive hours of rest
Welfare facilities must be installed at the workplace such as seats, separate toilet
rooms, lavatories, and dressing rooms.
Prohibition against discrimination with respect to pay (i.e. equal pay for work of
equal value), promotion, training opportunities, study and scholarship grants.
o Employment of Children
Minimum employable age is 15 years. A worker below 15 years of age should be
directly under the sole responsibility of parents or guardians; work does not
interfere with child's schooling/normal development.
No person below 18 years of age can be employed in a hazardous or deleterious
undertaking.
o Safe Working Conditions
Employers must provide workers with every kind of on-the-job protection against
injury, sickness or death through safe and healthful working conditions.
Jobs may be hazardous or highly hazardous. Hazardous jobs are those which expose
the employee to dangerous environment elements, including contaminants,
radiation, fire, poisonous substances, biological agents and explosives, or dangerous
processes or equipment including construction, mining, quarrying, blasting,
stevedoring, mechanized farming and operating heavy equipment. If you need
further information on the provisions of the OSH Standards, please click here (OSH
Standards) and LCP, Book IV
o Right to Self-Organization and Collective Bargaining
The right to self-organization is the right of every worker, free of any interference
from the employer or from government, to form or join any legitimate worker's
organization, association or union of his or her own choice. Except those classified as
managerial or confidential employees, all employees may form or join unions for
purposes of collective bargaining and other legitimate concerted activities. An
employee is eligible for membership in an appropriate union on the first day of his
or her employment.
Collective Bargaining involves two parties:
1. the representative of the employer
2. a union duly authorized by the majority of the employees within a
bargaining unit called exclusive bargaining agent.
It is a process where the parties agree:
1. to fix and administer terms and conditions of employment which must not
be below the minimum standards fixed by law
2. to set a mechanism for resolving their grievances
The result of collective bargaining is a contract called collective bargaining
agreement (CBA). A CBA generally has a term of five years. The provisions of a CBA
may be classified as political or economic. Political provisions refer to those which
define the coverage of the CBA and recognize the collective bargaining agent as the
exclusive representative of the employees for the term of the CBA. Economic
provisions refer to all terms and conditions of employment with a monetary value.
Economic provisions have a term of five years but may be renegotiated before the
end of the third year of effectivity for the CBA.
o EC Benefits for Work-Related Contingencies
The Employees' Compensation Program is the tax-exempt compensation program
for employees and their dependents created under Presidential Decree No. 626
which was implemented in March 1975. The benefits include:
o Medical benefits for sickness/injuries
o Disability benefits
o Rehabilitation benefits
o Death and funeral benefits
o Pension benefits
References:
https://www.officialgazette.gov.ph/featured/rights-of-employees/
https://www.officialgazette.gov.ph/featured/how-is-minimum-wage-determined/
https://bwc.dole.gov.ph/the-workers-basic-rights#:~:text=The%20State%20shall%20protect
%20labor,to%20promotion%20and%20training%20opportunities.
