NOTES – FINALS (LABOR LAWS AND LEGISLATIONS)

I. WORKING CONDITIONS (Conditions and Standards of Employment)

Includes hours of work, rest periods and holidays, and leaves.

A. EXCLUDED EMPLOYEES
1. Government employees
2. Management employees
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.
3. Officers or members of managerial staff
4. Domestic servants and persons in personal service of another
5. Workers paid by result
6. Non-agricultural field personnel
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 actual hours of work in the field cannot be determined
with reasonable certainty.

B. HOURS OF WORK

Work hours shall not exceed 8. Thus, part-time work, or a day’s work of less than 8 hours, not
prohibited.

Work Day – 24-hr period commencing from the time an employee regularly starts to work
regardless of whether the work is broken or continuous.

Calendar Day – 24-hr. period commencing at 12 midnight and ending at 11:59 p.m.

Hours of Work of Hospital and Clinic Personnel; Coverage

1. all hospitals and clinics situated in cities or municipalities with a population of 1 million or
more
2. all hospitals and clinics with a bed capacity of at least 100

Regular Working Hours and Days of Hospital and Clinic Personnel

 Not more than 8 hrs. in any one day and not more than 40 hrs. in any one week
 Not more than 5 days in a work week. The workweek may begin at any hour and on any day
 Overtime: additional compensation of regular wage + at least 30% thereof

Meal and Rest Periods

GR: 1 hour time-off for regular meals are not compensable

Rest periods or coffee breaks – running from 5 to 20 mins. considered as compensable working
time.

Overtime Pay (OT) – work exceeding eight hours within the worker’s 24-hour workday. Work
within the Employee’s shift is not overtime.
 OT on a Regular Day: regular wage + at least 25% thereof
 OT on a Holiday/E’ee’s Rest Day: rate of 1st 8 hrs. on holiday/rest day + at least 30%
thereof. Since the OT work is considered hourly, the pay rate is computed also on per hour
basis. The daily wage is divided by 8 to get the hourly base rate.

Night Shift Differential (NSD) – 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 ten o’clock in the evening
and six o’clock in the morning.

Employees NOT Covered by NSD

1. Those of the government and any of its political subdivisions, including government-owned
and/or
controlled corporations
2. Those of retail and service establishments regularly employing not more than 5 workers
3. Domestic helpers and persons in the personal service of another
4. Managerial employees
5. Field personnel and other employees whose time and performance are unsupervised by the
employer

C. REST PERIODS AND HOLIDAYS

Weekly Rest Periods – applies to all employers whether operating for profit or not, including public
utilities operated by private persons.

Business on Sundays/Holidays – All establishments and enterprises may operate or open for
business on Sundays and holidays provided that the employees are given the weekly rest day and
the benefits as provided.

Weekly Rest Day – Every employer shall give his employees a rest period of not less than 24
consecutive hrs. after every 6 consecutive normal work days.

Work on Rest Day Authorized (UAAP NAF)

1. In case of urgent work to be performed on machineries, equipment or installations to avoid
serious loss which the employer would otherwise suffer.
2. In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity, to prevent loss of life or property, or in cases of
force majeure or imminent danger to public safety.
3. In the event of abnormal pressure of work due to special circumstances, where the employer
cannot ordinarily be expected to resort to other measures.
4. To prevent serious loss of perishable goods.
5. Where the nature of the work is such that the employees have to work continuously for 7 days in
a week or more, as in the case of the crew members of a vessel to complete a voyage and in other
similar cases.
6. Under other analogous or similar circumstances.
7. When the work is necessary to avail of favorable weather or environmental conditions where
performance or quality of work is dependent thereon.

Holidays with Pay; Applies to ALL employees.

EXCEPT:
1. Those of the government and any of the political subdivision
2. Those of retail and service establishments regularly employing less than ten 10 workers
3. Domestic helpers and persons in the personal service of another
4. Managerial employees
5. Field personnel and other employees whose time and performance is unsupervised by the
employer

Absences
 Employee on Leave of absence with pay – entitled to the benefit provided herein.
 Employee on leave of absence without pay on the day immediately preceding a regular
holiday – may not be paid the required holiday pay if he has not worked on such regular
holiday.

Temporary or Periodic Shutdown and Temporary Cessation of Work (i.e. yearly inventory, repair or
cleaning of machineries or equipment, etc) – regular holidays falling within this period is
compensable.

Double Holiday – an employee who is entitled to holiday pay should receive at least 200% of his
basic wage even if he did not work on that day, provided, he was present or on leave with pay on
the preceding work day. If he worked, he is entitled to 300% of his basic wage.

Holidays
1. New Year’s Day - Jan. 1
2. Maundy Thursday - Movable Date
3. Good Friday - Movable Date
4. Araw ng Kagitingan - April 9
5. Labor Day - May 1
6. Independence Day - June 12
7. Nat’l Heroes Day - Last Sun. of Aug.
8. Bonifacio Day - Nov. 30
9. Eidul Fit’r - Movable Date
10. Christmas Day - Dec. 25
11. Rizal Day - Dec. 30

Special Days
1. Special Non-Working Days
2. Special Public Holidays
3. Special National Holiday
4. All Saints’ Day - Nov. 1
5. Last Day of the Yr - Dec. 31
6. Ninoy Aquino Day - August 21

D. LEAVE

Service Incentive Leave (SIL) – every employee who has rendered at least 1 year of service shall be
entitled to a yearly service incentive leave of 5 days with pay.
 Commutable to its money equivalent if not used or exhausted at the end of the year.

Vacation Leave (VL) / Sick Leave (SL) – not required by law and depends on voluntary employer
policy or collective bargaining.

Solo Parent Leave (RA 8972: Solo Parents’ Welfare Act of 2000) – a parental leave of not more than
7 working days every years shall be granted to any solo parent employee who has rendered service
of at least 1 year
 Solo Parent – woman who gives birth as a result of rape or crimes against chastity, a widow
or widower, a spouse separated legally or de facto for at least one year, and so forth. The
claimant parent has to show that he/she is left alone with the responsibility of parenthood.

Leave under RA 9262 (Anti-Violence Against Women and their Children Act of 2004) – allows the
victim of violence, which may be physical, sexual, or psychological, to apply for the issuance of a
protection order. If such victim is an employee, she is entitled to a paid leave of up to 10 days in
addition to other paid leaves under the Labor Code, other laws and company policies.
 The employee has to submit a certification from the Punong Barangay or Kagawad or
prosecutor or Clerk of Court that an action under RA 9262 has been filed and is pending.

II. SPECIAL GROUP OF EMPLOYEES

 Women
 Minors

Under R.A. No. 7610, as amended by R.A. No. 9231:

“Children below fifteen (15) years of age shall not be employed except:

1. When a child works directly under the sole responsibility of his/her parents or legal
guardian and where only members of his/her family are employed: Provided, however, That
his/her employment neither endangers his/her life, safety, health, and morals, nor impairs
his/her normal development: Provided, further, That the parent or legal guardian shall
provide the said child with the prescribed primary and/or secondary education;

2. Where a child's employment or participation in public entertainment or information

through cinema, theater, radio, television or other forms of media is essential: Provided,
That the employment contract is concluded by the child's parents or legal guardian, with the
 express agreement of the child concerned, if possible, and the approval of the Department of
Labor and Employment: Provided, further, That the following requirements in all instances
are strictly complied with:

"(a) The employer shall ensure the protection, health, safety, morals and normal
development of the child;

"(b) The employer shall institute measures to prevent the child's exploitation or
discrimination taking into account the system and level of remuneration, and the duration
and arrangement of working time; and

"(c) The employer shall formulate and implement, subject to the approval and supervision
of competent authorities, a continuing program for training and skills acquisition of the
child.

The employer shall first secure, before engaging such child, a work permit from the
Department of Labor and Employment which shall ensure observance of the above
requirements.

 Kasambahay/ Domestic Helpers

R.A. No. 10361 or the Kasambahay Law applies to all domestic workers employed and
working within the country.

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.

 Homeworkers
 Night Workers
 Persons With Disabilities

III. WAGES

A. DEFINITION

Wage – paid to any employee shall mean the remuneration or earnings, however designated,
capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece,
or commission basis, or other method of calculating the same, which is payable by an employer to
an employee under a written or unwritten contract of employment for work done or to be done, or
for services rendered or to be rendered.

No Work – No Pay Principle – if there is no work performed by the employee, there can be no wage
or pay unless the laborer was able, willing, and ready to work but was prevented by management
or was illegally locked out, suspended or dismissed.

Equal Pay for Equal Work – persons who work with substantially equal qualifications, skill, effort
and responsibility, under similar conditions, should be paid similar salaries.

B. WAGE-FIXING
Regional Minimum Wages – the minimum wage rates for agricultural and non-agricultural
employees and workers in each and every region of the country shall be those prescribed by the
Regional Tripartite Wages and Productivity Boards.
Minimum Wage – lowest wage rate fixed by law that an employer can pay his employee; payment of
minimum wages is not dependent on the employer’s ability to pay.

Daily-Paid Employee – paid only for days he actually worked.

Monthly-Paid Employee – employees paid by the month, irrespective of the number of working
days therein, with a salary of not less than the statutory or established minimum wage, shall be
presumed to be paid for all the days in the month whether worked or not.

Agricultural Rate – farm work from land preparation to harvesting.

Industrial Rate – manufacturing or processing of farm products.

Bonus – a benefit which is contingent or conditional; its demand ability depends on certain pre-
conditions.
 It is an amount granted voluntarily to an employee for his/her industry and loyalty which
contributed to the success and realization of profits of the employer’s business.
 It is not a demandable and enforceable obligation unless it was promised to be given
without any conditions imposed for its payment in which case it is deemed part of the wage.

Basic Wage – means all remuneration or earnings paid by an employer to a worker for services
rendered on normal working days and hours but does not include cost-of-living allowances, profit
sharing payments, premium payments, 13th month pay or other monetary benefits which are not
considered as part of or integrated into the regular salary of the workers.

Minimum Wage – lowest wage rate fixed by law than an employer can pay his employees

Who Sets Minimum Wage

1. Regional Tripartite Wages and Productivity Board
2. Congress

C. PAYMENT OF WAGES

Manner of wage payment – wages shall be paid in legal tender and the use of tokens, promissory
notes, vouchers, coupons, or any other form alleged to represent legal tender is absolutely
prohibited even when expressly requested by the employee.

Payment by check – Payment of wages by bank checks, postal checks or money orders is allowed
such manner of wage payment is customary on the date of the effectivity of the Labor Code or it is
so stipulated in a collective agreement.

Time of payment GR:

1. not less than once every 2 weeks; or
2. twice a month at intervals not exceeding 16 days

Place of payment GR – the place of payment shall be at or near the place of undertaking.

Direct Payment of Wages GR: paid directly to workers to whom they are due.

Non-interference in Disposal of Wages – No employer shall limit or otherwise interfere with the
freedom of any employee to dispose of his wages and no employer shall in any manner oblige any of
his employees to patronize any store or avail of the services offered by any person.