Professional Documents
Culture Documents
Labor Code of The Philippines
Labor Code of The Philippines
Art. 6: Applicability
All rights and benefits granted to workers under this Code shall, except
as may otherwise be provided herein, apply alike to all workers,
whether agricultural or non-agricultural.
(b) human resources development, which includes the training and employment
of apprentices and learners;
(e) labor relations, which covers unions, strikes, unfair labor practices and
collective bargaining agreements;
2
Normal hours of work
The normal hours of work of any employee shall not exceed eight (8)
hours a day.
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.
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.
3
Right to weekly rest day
4
Forms of payment
No employer shall pay the wages of an employee by means of
promissory notes, vouchers, coupons, tokens, tickets, chits, or any object
other than legal tender, even when expressly requested by the employee.
Time of payment
Wages shall be paid at least once every two (2) weeks or twice a
month at intervals not exceeding sixteen (16) days.
If on account of force majeure or circumstances beyond the
employer’s control, payment of wages on or within the time herein provided
cannot be made, the employer shall pay the wages immediately after such
force majeure or circumstances have ceased.
No employer shall make payment with less frequency than
once a
month.
5
Standards/Criteria for minimum wage fixing
The regional minimum wages to be established by the Regional
Tripartite Wages and Productivity Board shall be as nearly adequate as is
economically feasible to maintain the minimum standards of living necessary
for the health, efficiency and general well-being of the employees within the
framework of the national economic and social development program.
6
A. Coverage
7
8
C. Basis
9
Computation of the Estimated Equivalent Monthly Rate (EEMR)
of Monthly-Paid and Daily-Paid Employees:
For daily-paid employees:
2. For those who do not work and are not considered paid on Sundays or
rest days
10
Computation of the Estimated Equivalent Monthly Rate (EEMR)
of Monthly-Paid and Daily-Paid Employees:
For daily-paid employees:
3. For those who do not work and are not considered paid on Saturdays
and Sundays or rest days
The minimum wage of Kasambahay shall not be less than the ff:
b) P2,000.00 a month for those employed in chartered cities and first class
municipalities; and
11
Rights and Benefits of Kasambahay:
1. Minimum wage;
2. Other mandatory benefits, such as the daily and weekly rest periods;
3. Service Incentive Leave;
4. 13th month pay;
5. Freedom from employers’ interference in the disposal of wages;
6. Coverage under the SSS, PhilHealth and Pag-IBIG laws;
7. Standard of treatment;
8. Board, lodging and medical attendance;
9. Right to privacy;
10. Access to outside communication;
11. Access to education and training;
12. Right to form, join, or assist labor organization;
13. Right to be provided a copy of the employment contract ;
14. Right to certificate of employment ;
15. Right to terminate the employment ; and
16. Right to exercise their own religious beliefs and cultural practices.
12
G. Penalty and Double Indemnity for Violation of the Prescribed
Increases or Adjustments in the Wage Rates (RA 8188)
The DTI, through the Negosyo Center in the city or municipality level,
shall have the sole power to issue the Certificate of Authority for BMBEs to avail
of the benefits provided by R.A. No. 9178, otherwise known as the “Barangay
Micro Business Enterprises (BMBEs) Act of 2012”. The BMBE workers and owners
shall agree on the acceptable wage rates based on the wage advisories issued by
the RTWPBs.
13
I. Minimum Wage of Workers Paid by Results
14
J. Minimum Wage of Apprentices, Learners, and Persons
with disability
15
K. Coverage from Income Tax of Minimum Wage Earners
The following income of MWEs shall also be exempt from income tax:
A. Definition
Holiday pay refers to the payment of the regular daily wage for any
unworked regular holiday.
16
B. Coverage
B. Coverage
17
B. Coverage
B. Coverage
18
C. Regular Holidays
Work performed on that day merits at least twice (200%) the wage
rate of the employee.
Illustration:
Using the NCR minimum wage rate (basic wage and COLA) of
P481.00 + P10.00 per day for the non-agricultural sector, effective June 2,
2016 under Wage Order No. NCR-20.
19
C. Regular Holidays
Where the holiday falls on the scheduled rest day of the employee,
work performed on said day merits at least an additi onal 30% of the
employee’s regular holiday rate of 200% or a total of at least 260%.
C. Regular Holidays
20
D. Muslim Holidays
Presidential Decree No. 1083 (Code of Muslim Personal Laws of the
Philippines), as amended, recognizes the 3 Muslim holidays, namely:
1. ‘Ămu n J a d id (New Year), which falls on the first day of the lunar month
of Muharram;
2. Maul id-un-Nabi (Birthday of the Prophet Muhammad), which falls on the
twelfth day of the third lunar month of Rabi -ul-Awwal ; and
3. L a ila t u l I s rā Wa l Mi ’rā j (Nocturnal Journey and Ascension of the
Prophet Muhammad), which falls on the twenty -seventh day of the
seventh lunar month of Rajab.
E. Absences
1. All covered employees shall be entitled to holiday pay when they are on leave of
absence with pay on the workday immediately preceding the regular holiday.
Employees who are on leave of absence without pay on the day immediately
preceding a regular holiday may not be paid the required holiday pay if they do
not work on such regular holiday.
2. Employers shall grant the same percentage of the holiday pay as the benefit
granted by competent authority in the form of employee’s compensation or
social security payment, whichever is higher, if the employees are not
reporting for work while on such leave benefits.
3. Where the day immediately preceding the holiday is a non-work day in the
establishment or the scheduled rest day of the employee, he/she shall not be
deemed to be on leave of absence on that day, in which case he/she shall be
entitled to the holiday pay if he/she worked on the day immediately preceding
the nonwork day or rest day.
21
F. Successive Regular Holidays
Where there are two (2) successive regular holidays, like Maundy
Thursday and Good Friday, an employee may not be paid for both holidays if
he/she absents himself/herself from work on the day immediately preceding
the first holiday, unless he/she works on the first holiday, in which case
he/she is entitled to his/her holiday pay on the second holiday.
22
H. Holiday Pay of Certain Employees
1. Where the covered employee is paid on piece-rate basis, his / her holiday
pay shall not be less than his/her average daily earnings for the last seven
(7) actual work days preceding the regular holiday; provided, however,
that in no case shall the holiday pay be less than the applicable statutory
minimum wage rate.
2. Seasonal workers may not be paid the required holiday pay during off -
season when they are not at work.
3. Workers who do not have regular working days, such as stevedores, shall
be entitled to this benefit.
A. Definition
23
B. Coverage
B. Coverage
3.3. They have the authority to hire or fire other employees of lower
rank; or their suggestions and recommendations as to hiring,
firing, and promotion, or any other change of status of other
employees are given particular weight.
4. Officers or members of a managerial staff, if they perform the following
duties and responsibilities:
1. Primarily perform work directly related to management policies
of their employer;
2. Customarily and regularly exercise discretion and independent
judgment;
24
B. Coverage
B. Coverage
5. Workers who are paid by results, including those who are paid on piece
rate, takay, pakyaw, or task basis, and other nontime work, if their output
rates are in accordance with the standards prescribed in the regulations,
or where such rates have been fixed by the Secretary of Labor and
Employment; and
25
C. Special Days
1. Special Days
The “no work, no pay” principle applies during special days and on
such other special days as may be proclaimed by the President or by
Congress.
26
D. Premium Pay Rates
3. For work performed on a regular holiday which is also the employee’s rest
day (not applicable to employees who are not covered by the holiday-pay
rule). Plus 30% of the regular holiday rate of 200% based on his/her daily
basic wage rate or a total of 260%.
27
A. Definition
B. Coverage
28
C. Overtime Pay Rates
3. For work in excess of eight (8) hours performed on a special day which falls
on a scheduled rest day: Plus 30% of the hourly rate on said days.
29
D. Stipulated Overtime Rates
A. Definition
30
B. Coverage
B. Coverage
31
B. Coverage
B. Coverage
32
C. Computation of Night Shift Differential
The COLA shall not be included in the computation of night shift pay.
The table below may be used to guide computations:
33
A. Sharing
B. Payments
34
C. Tips
A. Coverage
Every employee who has rendered at least one (1) year of service is
entitled to Service Incentive Leave (SIL) of five (5) days with pay.
This benefit applies to all employees except:
1. Government employees, whether employed by the National Government
or any of its political subdivisions, including those employed in government
-owned and/or controlled corporations with original charters or created
under special laws;
2. Persons in the personal service of another
3. Managerial employees, if they meet all of the following conditions:
1. Their primary duty is to manage the establishment in which
they are employed or of a department or subdivision thereof;
2. They customarily and regularly direct the work of two or more
employees therein; and
35
A. Coverage
A. Coverage
36
A. Coverage
37
C. Usage/Conversion to Cash
The service incentive leave may be used for sick and vacation leave
purposes. The unused service incentive leave is commutable to its money
equivalent at the end of the year. In computing, the basis shall be the salary
rate at the date of conversion.
Nightwork prohibition
38
Nightwork prohibition
Exceptions :
e. Where the nature of the work requires the manual skill and dexterity of
women workers and the same cannot be performed with equal efficiency
by male workers;
f. Where the women employees are immediate members of the family
operating the establishment or undertaking; and
g. Under other analogous cases exempted by the Secretary of Labor and
Employment in appropriate regulations.
Discrimination prohibited
39
Stipulation against marriage
Article 132 of the Labor Code of the Philippines requires employers to:
1. Provide seats proper for women and let them use these seats when they
are free from work or during work hours provided that they can perform
their duties in this position without sacrificing efficiency.
2. Establish separate toilet rooms for men and women and provide at least a
dressing room for women.
40
A. Coverage
B. Entitlement
B. Entitlement
41
Minimum employable age
.
a. No child below fifteen (15) years of age shall be employed, except when he
works directly under the sole responsibility of his parents or guardian, and
his employment does not in any way interfere with his schooling.
b. Any person between fifteen (15) and eighteen (18) years of age may be
employed for such number of hours and such periods of the day as
determined by the Secretary of Labor and Employment in appropriate
regulations.
42
Duties and Responsibilities of Employers
1. Require the presentation of the SS number of a prospective employee;
2. Report all employees for SS coverage within thirty (30) days from the date
of employment by submitting an accomplished Employment Report (SS
Form R-1A) at the SSS servicing branch;
3. Deduct from the employees the monthly SS contributions based on the
schedule of contributions; pay his share of contributions including
Employees' Compensation (EC) and remit these contributions to the SSS
with tellering facilities or accredited banks within the first ten (10) calendar
days following the month when said contributions are due and applicable;
4. Submit a summary of all employees' contributions thru Contribution
Collection List (SS Form R-3) together with a copy of the Special Bank
Receipt (SBR) and Contributions Payment Return (SS Form R-5) within 10
days after the applicable quarter;
43
Compulsory Coverage of Self-Employed Persons
A self-employed person, regardless of trade, business or occupation,with
an income of at least P1,000 a month and not over 60 years old, should
register with the SSS. Included, but not limited to the following are self-
employed persons:
1. self-employed professionals;
2. partners, single proprietors of businesses and board directors of
corporations duly registered with appropriate government agencies;
3. actors, actresses, directors, scriptwriters and news correspondents who do
not fall within the definition of the term "employee;"
4. professional athletes, coaches, trainers and jockeys;
5. farmers and fisherfolks; and
6. workers in the informal sector such as market and ambulant vendors,
public utility transport drivers, tourism industry-related workers, and
others similarly situated.
44
Due Dates of Contribution to SSS
45
A. The Social Security Program
B. Coverage
C. The Benefits
1. Sickness
The sickness benefit is a daily cash allowance paid for the number of
days a member is unable to work due to sickness or injury.
A member is qualified to avail himself/herself of this benefit
if:
1. he/she is unable to work due to sickness or injury and is thus confined
either in the hospital or at home for at least four days;
2. he/she has paid at least three monthly cont ribut ions within the 12 -
month period immediately before the semester of sickness;
3. he/she has used up all cur rent company sick leaves with pay for the
current year; and
4. he/she has notified his/her employer.
46
C. The Benefits
C.2. Maternity
C.3. Disability
C. The Benefits
C.3. Disability
47
C. The Benefits
3. Disability
The following fall
under permanent
total disability:
1. Complete loss
of sight of both
eyes;
2. Loss of two l
imbs at or
above the
ankle or wr
ists;
3. Permanent
complete
paralysis of
two limbs;
4. Brain injury
causing
insanity; and
5. Other cases as
determined
and approved
by the SSS.
Types of disability benefits:
1. The monthly pension which is paid to a disabled member who has paid at
C. The
least Benefits
36 monthly contribut ions to the SSS; and
2. C.4.
The Retirement
lump sum amount which is granted to those who have not paid the
required 36 monthly contributions.
It is a
cash
benefit
paid to a
member
who can
no longer
work due
to
old age.
A member is
qualified to avail
himself of this
benefit if:
a. he/she is 60 years old and unemployed and has paid at least 120 monthly
contributions pr ior to the semester of retirement .
C. The Benefits
C.5. Death & Funeral
The death benefit is a cash paid to the beneficiaries of a deceased
member.
49
C. The Benefits
5. Death & Funeral
The types of death benefits are:
1. the monthly pension
- The monthly pension is granted only to the primary beneficiaries
of a deceased member who had paid 36 monthly contributions
before the semester of death.
2. the lump sum amount .
-The lump sum is the amount granted to the primary beneficiaries
of a deceased member who had paid less than 36 monthly
contributions before the semester of death.
Unions
Unions in the Philippines are classified into two (2):
1) PUBLIC SECTOR UNION or PUBLIC EMPLOYEES ORGANIZATION
-refers to any organization, union or association of employees in the
agencies of government which exist in whole or in part for the purpose of
collective negotiations or mutual aid, interest, cooperation and protection.
2) PRIVATE SECTOR UNION or LABOR ORGANIZATION
- refers to any union or association of employees in the private
sector which exist in whole or in part for the purpose of collective bargaining
or mutual aid, interest, cooperation, protection or other lawful purposes.
50
Labor Organizations
Labor Organizations refer to any union or association of employees
in the private sector which exists in whole or in part for the purpose of
collective bargaining, mutual aid, interest, cooperation, protection, or other
lawful purposes.
Classifications
1. Formal Sector
-refers to an organization with employee-employer relationship,
also known as Enterprise-Based Unions it is composed of Chartered Local,
Affiliate and Independent Unions.
2. Informal Sector
-refers to an organization without a definite employer.
Labor Unions
Trade or Labor unions in the Philippines are organizati ons
sanctioned by Labor Code of the Philippines as an acknowledgment of
Filipino workers' freedom to self-organize.
51
Collective Bargaining
Collecti ve bargaining is the process of negoti ati ons between
employers and a group of employees aimed at reaching agreements that
regulate working conditions. The interests of the employees are commonly
presented by representatives of a trade union. The Collective Bargaining
Agreement (CBA) is the contract resulting from the negotiations.
c.To be furnished by the employer, upon written request, with its annual
audited financial statements, including the balance sheet and the profit and
loss statement, within thirty (30) calendar days from the date of receipt of
the request, after the union has been duly recognized by the employer or
certified as the sole and exclusive bargaining representative of the
employees in the bargaining unit, or within sixty (60) calendar days before
the expiration of the existing collective bargaining agreement, or during the
collective bargaining negotiation;to law.
52
Rights of legitimate labor organizations
d. To own property, real or personal, for the use and benefit of the labor
organization and its members;
f. To undertake all other activities designed to benefit the organization and its
members, including cooperative, housing, welfare and other projects not
contrary to law.
53
Unfair labor practices of employers
54
Unfair labor practices of labor organizations
55
Strikes and Lockouts
"Strike" means any temporary stoppage of work by the concerted
action of employees as a result of an industrial or labor dispute.
56
Termination by employer
An employer may terminate an employment for any of the ff causes:
a. Serious misconduct or willful disobedience by the employee of the lawful
orders of his employer or representative in connection with his work;
b. Gross and habitual neglect by the employee of his duties;
c. Fraud or willful breach by the employee of the trust reposed in him by his
employer or duly authorized representative;
d. Commission of a crime or offense by the employee against the person of
his employer or any immediate member of his family or his duly
authorized representatives; and
e. Other causes analogous to the foregoing.
f. Closure of establishment and reduction of personnel
g. Disease as ground for termination
Termination by employee
An employee may terminate without just cause the employee-
employer relationship by serving a written notice on the employer at least
one (1) month in advance. The employer upon whom no such notice was
served may hold the employee liable for damages.
57
Termination by employee
58
B. One-Month Pay per Year of Service
C. Notice of Termination
59
E. Inclusion of Regular Allowance in the Computation
A. Coverage
1. Employees shall be retired upon reaching the age of sixty (60) years or
more but not beyond sixty-five (65) years old [and have served the
establishment for at least five (5) years].
60
B. Amount of Retirement Pay
61
D. Retirement Benefits of Workers who are Paid by Results
For covered workers who are paid by results and do not have a fixed
monthly salary rate, the basis for the determination of the salary for fifteen
(15) days shall be their average daily salary (ADS). The ADS is
derived by dividing the total salary or earnings for the last twelve months
reckoned from the date of reti rement by the number of actual working
days in that particular period, provided that the determination of rates of
payment by results are in accordance with the established regulations.
62
G. Other Benefits upon Retirement
Under the law, upon opti onal or compulsory reti rement, the
employee is also entitled to the proportionate thirteenth-month pay for the
calendar year and to the cash equivalent of accrued leave benefits.
63