Professional Documents
Culture Documents
remuneration or earnings:
Knowledge is Power
o however designated,
• Ignorance of the law does not excuse anyone o capable of being expressed in terms of
from complying with it. money,
• Knowing laws on labor and employment is vital o whether fixed or ascertained on a time,
because a minor violation could lead to big task, piece, commission basis, or
trouble. o other method of calculating the same,
• Companies have closed shop after employees • "Wage" paid to any employee shall mean the
sued which ended up with paying huge amounts remuneration or earnings:
of money representing damages. o which is payable by an employer to an
employee under a written or unwritten
REPUBLIC ACT No. 602
contract of employment for work done
• April 6, 1951 or to be done or for services rendered
• AN ACT TO ESTABLISH A MINIMUM WAGE LAW, or to be rendered, and
AND FOR OTHER PURPOSES o includes the fair and reasonable value,
• (REPEALED BY PRESIDENTIAL DECREE NO. 442) as determined by the Secretary of
Labor, of board, lodging, or other
BASIC TERMINOLOGIES
facilities customarily furnished by the
• "Person" means an individual, partnership, employer to the employee.
association, corporation, business trust, legal • "Facilities" shall include articles or services of
representative, or any organized group of benefit to the employee or his family but shall
persons. not include tools of the trade or articles or
• "Employer" includes any person acting directly services primarily for the benefit of the
or indirectly in the interest of an employer in employer or necessary to the conduct of the
relation to an employee and shall include the employer's business.
Government, and the government corporations. • "Hired farm labor" includes the labor of any
• "Employee" includes any individual employed person employed on a farm, except the labor of
by an employer. the operator and that of his parents, spouse
• "Agriculture" includes farming in all its and children.
branches and among other things includes the:
NOTE: Operator is the owner or lessee
o the cultivation and tillage of the soil,
o dairying, • "Farm enterprise" comprises all tracts of land,
o the production, whether contiguous or not, under one
o cultivation, management, located in a province and
o growing, and immediately adjacent provinces, on which any of
o harvesting of any agricultural or the operations enumerated in section two (d) are
o horticultural commodities, carried on.
o the raising of livestock or poultry, TYPES OF EMPLOYMENT
• "Agriculture" and any practices performed by a
farmer or on a farm as an incident to or in Article 280 of the Labor Code of the Philippines (LCP)
conjunction with such farming operations but describes different types of employment namely:
does not include the manufacturing or • regular
processing of sugar, coconuts, abaca, tobacco, • casual
pineapple or other farm products. • project
• "Industry" means a trade, business, industry or • seasonal
branch thereof, or group of industries, in which
individuals are gainfully employed.
• “Employ" " includes to suffer or permit to work.
These distinctions are important because some rights • A probationary employee may be dismissed for a
and benefits attach only to regular employees, just cause or when he fails to qualify as a regular
especially the right to security of tenure. employee in accordance with reasonable standards
made known to him at the time he is hired.
Regular and Casual Employment
• If he is not informed of these reasonable criteria,
“ARTICLE 280. Regular and casual employment. — he will be considered a regular employee.
• So, employers should watch out for this
The provisions of written agreement to the requirement.
contrary notwithstanding and regardless of the oral • a probationary employee may become regular if he
agreement of the parties, an employment shall be is allowed to work after the probationary period.
deemed to be regular where the employee has
been engaged to perform activities which are Project Employment
usually necessary or desirable in the usual
• Where the employment has been fixed for a
business or trade of the employer except where
specific project or undertaking, the completion or
the employment has been fixed for a specific
termination of which has been determined at the
project or undertaking the completion or
time of the engagement of the employee in the
termination of which has been determined at the
Philippines.
time of the engagement of the employee or where
the work or service to be performed is seasonal in Seasonal Employment
nature and the employment is for the duration of
• Where the work or services to be performed is
the season.
seasonal in nature and the employment is for the
• An employment shall be deemed to be casual if it is
duration of the season in the Philippines.
not covered by the preceding paragraph: Provided,
that any employee who has rendered at least one Casual Employment
year of service, whether such service is continuous
or broken, shall be considered a regular employee • There is Casual Employment when an employee
with respect to the activity in which he is employed, performs work that is not usually necessary or
and his employment shall continue while such primarily related to the employer’s business or
activity exists. trade.
• The definite period of employment should be made
Probationary Employment known to the employee at the time they started
rendering service.
ARTICLE 281. Probationary employment. –
• If the employee has rendered service for at least
• Probationary employment shall not exceed six (6) one (1) year in the same company, whether the
months from the date the employee started casual employment is continuous or not, they shall
working, unless it is covered by an apprenticeship be considered a regular employee with respect to
agreement stipulating a longer period. the activity they are employed and will continue
• The services of an employee who has been engaged rendering service while such activity exists.
on a probationary basis may be terminated for a
Contractual Employment
just cause or when he fails to qualify as a regular
employee in accordance with reasonable standards • Term or Fixed-Term Employment is when the
made known by the employer to the employee at employee renders service for a definite period of
the time of his engagement. An employee who is time and the employment contract must be
allowed to work after a probationary period shall terminated after such period expires.
be considered a regular employee. • This type of employment is determined not by the
• The period should not exceed six (6) months from activities that the employee is expected to perform
the date the employee started working, unless it is but by the commencement and termination of the
covered by an apprenticeship agreement stipulating employment relationship.
a longer period. (Article 281)
Fixed-term employment is highly regulated and is Minimum Wage
subject to the following criteria:
• Minimum wages have been defined as “the
• be voluntarily and knowingly agreed upon by the minimum amount of remuneration that an
parties without any force, duress or improper employer is required to pay wage earners for the
pressure being brought to bear upon the employee work performed during a given period, which
and absent any vices of consent; or cannot be reduced by collective agreement or an
• it satisfactorily appears that the employer and the individual contract”.
employee dealt with each other on more or less
ILO: General Survey concerning the Minimum Wage
equal terms with no dominance exercised by the
Fixing Convention, 1970 (No. 131), and the Minimum
former over the latter.
Wage Fixing Recommendation, 1970 (No. 135)
Employment
• The purpose of minimum wages is to protect
• So, if you do not intend to consider the person hired workers against unduly low pay.
as a regular employee, you must inform him on the • They help ensure a just and equitable share of the
day he starts to work – that is, whether he is a fruits of progress to all, and a minimum living wage
casual, seasonal, project or a fixed term employee. to all who are employed and in need of such
protection.
Employee Benefits
Minimum wages can also be one element of a policy
Wage and Compensations Benefits
to:
1. Employee Minimum Wage
• overcome poverty
2. Overtime Pay
• reduce inequality, including those between men
3. Premium Pay
and women
4. Night Shift Differential
• promote the right to equal remuneration for work
5. 13th Month Pay
of equal value.
6. Separation Pay
7. Retirement Pay Overtime Pay
1/2 Month Pay per Year of Service • Article 95 of the Labor Code says that an
employee who has worked for a year is entitled
• An employee is eligible for separation pay with
to five (5) Service Incentive Leaves with full pay.
the value of one-half (1/2) month pay for every
• These can be used for vacation leave or sick
year of service if the separation from the
leave.
service is because of retrenchment to save the
company from pitfalls, closure or termination of PARENTAL LEAVES
the operations due to bankruptcy and other bad
There are 3 types of parental leaves:
instances, and grave illness incurable within 6
months or harmful for co-workers. 1. Maternal
One-Month Pay per Year of Service • any pregnant woman employee who has
worked with the company for at least six
• An employee is eligible for a separation pay
months will be granted a maternity leave of at
worth of one month per year of service if the
least two weeks prior to her due date (expected
termination of the contract is because of:
date of delivery) and four weeks after normal
o installation of devices or machines that
delivery or miscarriage with full pay based on
reduce the number of labors,
her regular salary.
o redundancy, or
• As of February 21, 2019, the Expanded
o when there is excessive manpower,
Maternity Leave (EML) Bill has been signed into
impossible reinstatement to the former
law.
position because of significant reasons.
• This law grants 105 days of paid maternity leave
Retirement Pay credits. The law also allows new mothers to
extend this leave for an additional 30 days, but
• Upon the age of 60 years or more, an employee this will be unpaid.
who has served at the establishment for at least • The EML is applicable to all a woman’s
five years may be granted a retirement pay pregnancies.
equivalent to at least one-half month of salary
for every year of service. 2. Parental
• A fraction of at least six months is considered as
• The R.A No. 8187, or Paternity Leave Act of
one whole year.
1996, grants seven (7) days of fully paid leave to
• As stipulated by the DOLE National Wages and
married fathers.
Productivity Commission,
• This is effective up to the first four deliveries of
“The minimum retirement pay shall be equivalent to the legitimate spouse.
one-half (1/2) month salary for every year of service, a • Under the EML, seven days of a woman’s paid
fraction of at least six (6) months being considered as maternity leave credits can be transferred to
one (1) whole year.” fathers, extending the allowed seven-day
paternity to be extended to 14.
• Included in the one-half pay are 15 days salary
based on the latest salary rate, cash equivalent 3. Solo Parent
of 5 days of service incentive leave, one-twelfth
• Solo or single mothers and fathers have seven
(1/12) of the 13th month pay.
days leave with pay for every year of service, on
Leave Benefits top of other leave privileges, e.g. Maternity or
• Solo mothers are covered by the EML, so they
1. Service Incentive Leave also get 105 days of paid maternity leave
2. Parental leaves credits.
3. Special Leave Benefits for Women • However, solo mothers can extend their leave
4. Bereavement Leave for 15 days and these should be paid leaves.
5. De Minimis Benefits
Special Leave Benefits for Women • The counterpart for government employees is,
Government Service Insurance System (GSIS) in
There are two types:
the country.
a. Magna Carta for Women • Members are required to contribute a certain
amount depending on their salary bracket.
• This entitles women who underwent surgery
due to gynecological disorders to two months’ Coverage in the Philippines
leave with full pay, as stipulated in R.A. 9710 or
• All persons under the age of 60 who earn
the Magna Carta of Women.
income from employment is required to
• This applies to employees who have rendered
contribute to the SSS.
at least six months of service with the company.
• Government employees are required to
b. Leave for women and their children who are victims contribute to the equivalent GSIS.
of violence
PhilHealth
• Victims of violence against women, as
• This serves as a health insurance program for
stipulated in R.A. 9262 or the Anti-Violence
private employees providing financial aid and
Against Women and Their Children Act of 2004,
service privileges for health care.
are entitled to 10 days leave with full pay.
• PhilHealth has removed the previous salary
Bereavement Leave brackets, creating a new condensed
contribution table with P10,000 as the salary
• This is a 3-day additional time off from work to floor and P40,000 as the ceiling.
mourn for the death of immediate family • The computation starts at 2.75% of the basic
members such as mother, father, siblings, and salary per month, and the payment is shared by
children. employer and employee.
• It must be noted that this is not a paid leave.
The PhilHealth benefits include:
De Minimis Benefits
• Inpatient benefits (hospitalization, facility fees,
• These are either relatively small amounts of and physician/surgeon fees)
money or leave credits that are optional for • Outpatient benefits (day surgeries,
employers to grant. radiotherapy, hemodialysis, outpatient blood
• Examples are: transfusion, primary care benefits)
o calamity leave, • Z benefits (financial/medical aid for the patients
o rice subsidy, with cancer and in need of surgeries)
o transportation/clothing/laundry • SDG related (Malaria package, HIV-AIDS
allowance, package, antituberculosis treatment, voluntary
o daily meal allowance, surgical contraception procedures, and animal
o other goods that are not monetary. bites treatment)
Mandatory Government Contributions Coverage in the Philippines
1. Social Security System • Employees are also required to contribute to
2. PhilHealth the HDMF and PhilHealth.
3. Pag-IBIG • Membership is optional for self-employed
persons.
Social Security System
• Foreign personnel are also required to make
• The Social Security System (SSS) serves as an contributions.
insurance program set by the government for
Pag-IBIG
all wage earners from the private institutions
• Also known as the Home Development Mutual
Fund (HDMF), Pag-IBIG is another form of
national savings’ program and the financing o Last Monday of August > November 30
office for affordable shelter. o December 25, > December 30
• The total contribution is shared between you o the day designated by law for holding a
and the employer. general election.
• The highest compensation per month subjected
to Pag-IBIG contribution is P5,000 and it means Other Laws
that the employer and employee will pay P100 • Occupational Safety and Health Standards Law
each as the maximum contribution. (OSH)
• Pag-IBIG lets you have the following benefits: • Sexual Harassment Law
housing loan, multi-purpose loan, calamity loan, • Minimum Employable Age
secured savings.
OSH Law RA11058
WORK HOURS AND REST PERIOD
• The OSH law provides that each Filipino worker
Hours of Work in the Philippines is protected against
Normal hours of work in the Philippines o Injury
o sickness or death
• The normal hours of work of any employee shall
not exceed eight hours a day. through safe and healthful working conditions
• Hours worked shall include all time during • That employers must promote strict but:
which an employee is required to be on duty or
to be at a prescribed workplace and all time • dynamic
during which an employee is suffered or • Inclusive
permitted to work. • gender-sensitive
• Rest periods of short duration during working
measures in the formulation and implementation of
hours shall be counted as hours worked.
policies and programs related to occupational safety
Weekly Rest Periods and health.
Procedure for termination due to just causes: • Redundancy exists when the services of an
employee are in excess of what is reasonably
Twin Notice Rule demanded by the actual requirements of an
1. Serve the first written notice on the employees enterprise.
containing the specific ground/s for termination • This happens when the position is superfluous
and a directive that they are given the because of a number of factors such as over-
opportunity to submit their written explanation hiring of workers, decreased volume of
within a reasonable period. business, dropping of a particular product line
or service activity previously manufactured or
undertaken by the enterprise or phasing out of • by being a good employer – that is, giving your
service activity priorly undertaken by the employees at least the minimum benefits and
business. standard working conditions provided by law,
• by allowing them to reasonably exercise their
Retrenchment to prevent losses
rights as workers, especially the right to self-
• Retrenchment has been defined as “the organize and
termination of employment initiated by the • by always exercising good faith and fairness in
employer through no fault of the employees dealing with them.
and without prejudice to the latter, resorted to • As employer, you must not only think of the
by management during periods of business profit you can earn from your business, but also
recession, industrial depression, or seasonal the human factor in every employment
fluctuations. relationship.
• or during lulls occasioned by lack of work or
orders, shortage of materials, or considerable
reduction in the volume of employer’s business,
conversion of the plant for a new production
program or the introduction of new methods or
more efficient machinery, or of automation.
• Proof of losses or possible imminent losses is
the distinctive requisite of retrenchment.
Disease
Conclusion