THE NON-NEGOTIABLES

Module 4: Conditions of Employment

1. Coverage - Art. 82, LC

Art. 82. Coverage. The provisions of this Title shall apply to employees in all establishments and
undertakings whether for profit or not, but not to government employees, managerial employees, field
personnel, members of the family of the employer who are dependent on him for support, domestic
helpers, persons in the personal service of another, and workers who are paid by results as
determined by the Secretary of Labor in appropriate regulations.

As used herein, “managerial employees” refer to 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” shall refer to non-agricultural employees who regularly perform their duties away
from the principal place of business or branch office of the employer and whose actual hours of work
in the field cannot be determined with reasonable certainty.

a. Exclusions

2. Hours of Work - Arts. 83-85, LC

Art. 83. Normal hours of work. The normal hours of work of any employee shall not exceed eight (8)
hours a day.

Health personnel in cities and municipalities with a population of at least one million (1,000,000) or in
hospitals and clinics with a bed capacity of at least one hundred (100) shall hold regular office hours
for eight (8) hours a day, for five (5) days a week, exclusive of time for meals, except where the
exigencies of the service require that such personnel work for six (6) days or forty-eight (48) hours, in
which case, they shall be entitled to an additional compensation of at least thirty percent (30%) of
their regular wage for work on the sixth day. For purposes of this Article, “health personnel” shall
include resident physicians, nurses, nutritionists, dietitians, pharmacists, social workers, laboratory
technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital or
clinic personnel.

Art. 84. Hours worked. Hours worked shall include (a) all time during which an employee is required
to be on duty or to be at a prescribed workplace; and (b) all time during which an employee is
suffered or permitted to work.

Rest periods of 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 sixty (60) minutes time-off for their
regular meals.

a. Normal Hours of Work

i. Compensable Hours Worked
ii. “Fair day’s wage for a fair day’s labor.”
This is based on the age-old rule of “a fair day's wage for a fair day's work.” If the employee is ready, willing,
and able to do work, but is prevented form working, he is paid.
b. Flexible Work Arrangements
i. Guidelines on the Adoption of Flexible Work Arrangements - DOLE Department Advisory No. 2, series of 2009
ii. DOLE Labor Advisory No. 09 series of 2020
c. Compressed Work Week Schedule
i. Implementation of Compressed Workweek Schedule – DOLE Department Advisory
No. 02, series of 2004
d. Relevant Special Laws & Issuances:
i. Special Protection of Children Against Child Abuse, Exploitation and Discrimination
Act - R.A. No. 9231
ii. DOLE Department Order No. 65 series of 2004
iii. Domestic Workers Act or Batas Kasambahay - R.A. no. 10361

[REPUBLIC ACT NO. 10361]

AN ACT INSTITUTING POLICIES FOR THE PROTECTION

AND WELFARE OF DOMESTIC WORKERS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

ARTICLE I

GENERAL PROVISIONS

SECTION 1. Short Title.  – This Act shall be known as the “Domestic Workers Act” or “Batas
Kasambahay”.

SEC. 2. Declaration of Policies.  – It is hereby declared that:

(a) The State strongly affirms labor as a primary social force and is committed to respect, promote,
protect and realize the fundamental principles and rights at work including, but not limited to,
abolition of child labor, elimination of all forms of forced labor, discrimination in employment and
occupation, and trafficking in persons, especially women and children;

(b) The State adheres to internationally accepted working conditions for workers in general, and
establishes labor standards for domestic workers in particular, towards decent employment and
income, enhanced coverage of social protection, respect for human rights and strengthened social
dialogue;

(c) The State recognizes the need to protect the rights of domestic workers against abuse,
harassment, violence, economic exploitation and performance of work that is hazardous to their
physical and mental health; and

(d) The State, in protecting domestic workers and recognizing their special needs to ensure safe and
healthful working conditions, promotes gender-sensitive measures in the formulation and
implementation of policies and programs affecting the local domestic work.

SEC. 3. Coverage.  – This Act applies to all domestic workers employed and working within the
country.

SEC. 4. Definition of Terms.  – As used in this Act, the term:

(a)  Debt bondage  refers to the rendering of service by the domestic worker as security or payment for
a debt where the length and nature of service is not clearly defined or when the value of the service is
not reasonably applied in the payment of the debt.

(b) Deployment expenses  refers to expenses that are directly used for the transfer of the domestic
worker from place of origin to the place of work covering the cost of transportation. Advances or
loans by the domestic worker are not included in the definition of deployment expenses.

(c) Domestic work  refers to work performed in or for a household or households.

(d) Domestic worker  or “Kasambahay” refers to any person engaged in domestic work within an
employment relationship such as, but not limited to, the following: general househelp, nursemaid or
“yaya”, cook, gardener, or laundry person, but shall exclude any person who performs domestic work
only occasionally or sporadically and not on an occupational basis.
The term shall not include children who are under foster family arrangement, and are provided access
to education and given an allowance incidental to education, i.e. “baon”, transportation, school
projects and school activities.

(e) Employer  refers to any person who engages and controls the services of a domestic worker and is
party to the employment contract.

(f) Household  refers to the immediate members of the family or the occupants of the house that are
directly provided services by the domestic worker.

(g) Private Employment Agency (PEA)  refers to any individual, legitimate partnership, corporation or
entity licensed to engage in the recruitment and placement of domestic workers for local
employment.

(h) Working children,  as used under this Act, refers to domestic workers who are fifteen (15) years old
and above but below eighteen (18) years old.

iv. Keeping of Time Records: Entries, Executives & Workers Paid by Results - Rule X,
Sec. 7, 9 & 10 of the Omnibus Rules Implementing the Labor Code
v. Telecommuting Act - R.A. No. 11165

REPUBLIC ACT No. 11165

An Act Institutionalizing Telecommuting as An Alternative Work Arrangement for Employees in the Private
Sector

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Short Title. - This Act shall be known as the "Telecommuting Act".

Section 2. Declaration of Policy. - It is hereby declared the policy of the State to affirm labor as a primary social
economic force. To this end, it shall protect the rights of workers and promote their welfare, especially in the light of
technological development that has opened up new and alternative avenues for employees to carry out their work
such as telecommuting, and other flexible work arrangements.

Section 3. Telecommuting Defined. - As used in this Act the term "telecommuting" refers to a work from an
alternative workplace with the use of telecommunications and/or computer technologies.
Section 4. telecommuting Program. - An employer in private sector may offer a telecommuting program to its
employees on a voluntary bases, and upon such terms and conditions as they may mutually agree
upon: Provided, That such terms and conditions shall not be less than the minimum labor standards set by law, and
shall include compensable work hours, minimum number of work hours, overtime, rest days, and entitlement to
leave benefits. In all cases, the employer shall provide the telecommuting employee with relevant written information
in order to adequately apprise the individual of the terms and conditions of the telecommuting program, and the
responsibilities of employee.

Section 5. Fair Treatment. - The employer shall ensure that the telecommuting employee are given the same
treatment as that of comparable employees are given the same treatment as that of comparable employees working
at the time employer's premises. All telecommuting employee shall:

(a) Receive a rate of pay, including overtime and night shift differential, and other similar monetary benefits
not lower than those provided in applicable laws, and collective bargaining agreements.

(b) Have the right to rest periods, regular holidays, and special nonworking days.

(c) Have the same or equivalent workload and performance standards as those of comparable workerat the
employer's premises.

(d) Have the same access to training and career development opportunities as those of comparable workers
at the employer's premises, and be subject to the same appraisal policies covering these workers.

(e) Receive appropriate training on the technical equipment at their disposal, and the characteristics and
conditions of telecommuting.

(f) Have the same collectible rights as the workers at the employer's premises, and shall not be barred from
communicating with workers' representatives. 1âwphi1

The employer shall also ensure that measures are taken to prevent the telecommuting employee from being
isolated from the rest of the working community in the company by giving the telecommuting employee the
opportunity to meet with colleagues on a regular basis, and opportunity to meet with colleagues on a regular basis,
and allowing access to company information.

Section 6. Data Protection. - The employer shall be responsible for taking the appropriate measures to ensure the
protection of data used and processed by the telecommuting employee for professional purposes. The employer
shall inform the telecommuting employee of all relevant laws, and company rules concerning sata protection. The
telecommuting employee shall ensure that confidential and proprietary information are protected at all times.

For this purpose, the provision s of the Data Privacy Act of 2012 shall have suppletory effect.

3. Night work - Art. 86, LC

Art. 86. Night shift differential. Every employee shall be paid a night shift differential of not less than ten percent (10%) of his
regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning.

a. Employment of Night Workers - R.A. No. 10151

REPUBLIC ACT NO. 10151

AN ACT ALLOWING THE EMPLOYMENT OF NIGIIT WORKERS, THEREBY REPEALING ARTICLES 130 AND
131 OF PRESIDENTIAL DECREE NUMBER FOUR HUNDRED FORTY-TWO, AS AMENDED, OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Article 130 of the Labor Code is hereby repealed.

Section 2. Article 131 of the Labor Code is hereby repealed.

Section 3. The subsequent articles in Book Three, Title III, Chapter I to Chapter IV of Presidential Decree No. 442
are hereby renumbered accordingly.

Section 4. A new chapter is hereby inserted after Book Three, Title III of Presidential Decree No. 442, to read as
follows:

"Chapter V
"Employment of Night Workers

"Article 154. Coverage. - This chapter' shall apply to all persons, who shall be employed or permitted or suffered to
work at night, except those employed in agriculture, stock raising, fishing, maritime transport and inland navigation,
during a period of not less than seven (7) consecutive hours, including the interval from midnight to five o'clock in
the morning, to be determined by the Secretary of Labor and Employment, after consulting the workers'
representatives/labor organizations and employers.

"'Night worker' means any employed person whose work requires performance of a substantial number of hours of
night work which exceeds a specified limit. This limit shall be fixed by the Secretary of Labor after consulting the
workers' representatives/labor organizations and employers."

b. Computation of Night Shift Differential

Computing for Night Shift Differentials

An employee is entitled to extra pay for work rendered anytime between 10 p.m. and 6 a.m. Called the “night
shift differential,” this is equivalent to 10% of the employee’s hourly pay, and is given for every hour worked
between 10 p.m. and 6 a.m.

The employee is entitled to night shift differential whether or not the inclusive hours are part of their regular
shift.

All employees are entitled to night shift differential except for the following:

 government employees and employees of GOCCs (government owned and controlled corporations)
 employees of retail or service companies regularly employing no more than five persons
 domestic helpers and persons who are in another’s personal service
 managerial employees
 field employees or those unsupervised by the employer

If the work rendered by the employee during night shift hours is in excess of eight hours (overtime work),
overtime premium should first be applied before the night shift differential is computed.

Computing for Night Shift Differential

Here are some examples showing how night shift differential is computed. The following are the bases for all
scenarios:

Employee’s daily wage:  P500

Employee’s hourly wage: P500 / 8 hours = P62.50

1. Without overtime:

Employee’s work schedule: 8 p.m. to 4 a.m.

Number of hours worked between 10 p.m. and 6 a.m.: 6 hours

Night shift differential: Hourly wage x number of night shift hours worked x 10% = P62.50 x 6 hours x 0.10 =
P37.50

Total take home pay: Daily wage + night shift differential = P500 + P37.5 = P537.50

2. With overtime:

Employee’s work schedule: 6 p.m. to 1 a.m.

Overtime: 1 a.m. to 4 a.m.

Number of hours worked between 10 p.m. and 6 a.m. (non-OT):  3 hours

Number of hours worked between 10 p.m. and 6 a.m. (OT): 3 hours

Number of hours worked in excess of eight hours: 3 hours

Overtime premium: 25% of hourly wage

The following is a breakdown of the take-home pay’s components:

Wage for overtime work:

 Get the hourly overtime pay: Hourly wage x 25% = 62.5 x .25 = 78.125
 Multiply the hourly overtime pay by the number of OT hours rendered: 78.125 x 3 = 234.375

Night differential:

For regular, non-OT hours: Get 10% of the regular hourly pay multiplied by the number of non-OT night shift
hours worked: (62.5 x 3) x 0.10 = 18.75

For OT hours: Get 10% of the hourly overtime pay multiplied by the number of OT night shift hours worked:
(78.125 x 3) x 0.10 = 23.475

Total night differential: 42.225

Total take-home pay:

Get the sum of the regular wage, overtime pay and night differential:

Regular wage: 62.5 x 8 hours = P500

Overtime pay = P234.375

Night differential = P42.225

Total take-home pay: P776.60

3. For work rendered on a regular holiday (100% premium)

Employee’s work schedule: 8 p.m. to 4 a.m.

Total number of hours worked: 8

Number of night shift hours worked: 6

 Get the basic hourly wage including 100% regular holiday premium: hourly wage x 2 = 62.50 x 2 = 125
 Get the daily wage with 100% holiday premium: hourly wage with premium x hours worked = 125 x 8 =
1,000

 Get night differential: hourly wage with premium x number of night shift hours worked x 10% = 125 x 6
x .10 = 75

 To get the total take-home pay, get the sum of the daily wage with premium and the night shift
differential: 1,000 + 75 = P1,075

c. Night Shift Differential v. Overtime

https://www.alburolaw.com/what-is-the-rule-on-payment-of-night-shift-differential/#:~:text=An%20employee
%20shall%20be%20paid,not%20preclude%20night%20differential%20pay.
Night shift differential is paid for regularly scheduled work performed at night. This generally means work
scheduled before the beginning of the administrative workweek. Overtime hours do not count toward an
employee's entitlement to receive a night shift differential.

4. Overtime - Arts. 87, LC

Art. 87. Overtime work. Work may be performed beyond eight (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 twenty-five
percent (25%) thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent
(30%) thereof.
a. Emergency Overtime Work - Art. 89, LC

Art. 89. Emergency overtime work. Any employee may be required by the employer to perform overtime
work in any of the following cases:

a. When the country is at war or when any other national or local emergency has been declared by the
National Assembly or the Chief Executive;
 
b. When it is necessary to prevent loss of life or property or in case of imminent danger to public safety
due to an actual or impending emergency in the locality caused by serious accidents, fire, flood,
typhoon, earthquake, epidemic, or other disaster or calamity;
 
c. When there is urgent work to be performed on machines, installations, or equipment, in order to avoid
serious loss or damage to the employer or some other cause of similar nature;
 
d. When the work is necessary to prevent loss or damage to perishable goods; and
 
e. Where the completion or continuation of the work started before the eighth hour is necessary to prevent
serious obstruction or prejudice to the business or operations of the employer.
Any employee required to render overtime work under this Article shall be paid the additional compensation
required in this Chapter.

"Overtime pay" refers to the additional compensation for work performed beyond eight (8) hours a day.
Every employee who is entitled to premium pay is likewise entitled to the benefit of overtime pay.

The Labor Code's Article 87 on Overtime Work. Work may be performed beyond eight (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 twenty-five percent (25%) thereof. Work performed beyond eight hours on a holiday or rest
day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest
day plus at least thirty percent (30%) thereof.

b. Overtime Pay vs. Premium Pay

The Labor Code's Article 93 on Premium Compensation. Where an employee is made or permitted to
work on his scheduled rest day, he shall be paid an additional compensation of at least thirty percent (30%) of
his regular wage. An employee shall be entitled to such additional compensation for work performed on
Sunday only when it is his established rest day.

c. Computation of Overtime Pay

5. Meal Period - Art. 85, LC

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 sixty (60) minutes time-off for their regular meals.