Relevant Laws Affecting

Cooperatives
LABOR STANDARDS
LAW
(Rights of Workers)
LEGAL BASIS

 LABOR CODE OF THE PHILIPPINES ( as

amended)

Republic Act No. 6727 - Wage Rationalization Act

effective July 1, 1989
-mandate the fixing of the
minimum wage by Region
-created the Regional Tripartite Wages and Productivity Board
(RTWPB)
I. MINIMUM WAGE

 Wage Order No. 17 - effective July 19 & Dec. 1, 2015

 Applicable Wage effective effective New Minimum Wage

July 19, 2015 Dec. 1, 2015 Rates Upon effectivity

December 1, 2015

 Micro – P1.00 to P3M-P213.00 7.00 7.00 P227.00

 Small - above P3M to P15M -P233.00 233.00
 Medium –aboveP15M-P100M -P244.00- P244-253.00*
P253.00*
 Large-Above P100Million -P253.00 253.00

*Hospitals depending on asset size

WORKING HOURS: EIGHT (8) HRS. A DAY

2. HOLIDAY PAY

 Refers to the payment of

the regular daily wage for
any
un-worked regular
holiday.
2. HOLIDAY PAY

 If un-worked holiday:

 -if reported the day before the holiday

100%
 -if on leave with pay premium
pay

If worked:
200% of the basic pay
2. HOLIDAY PAY
Regular Holidays
New Years Day -January 1
Maundy Thursday - Movable Date
Good Friday -Movable Date
Araw ng Kagitingan - April 9
Labor Day - May 1
Independence Day - June 12
Nat’l Heroes Day - Last Monday of August
Eidl Fitr - Movable Date
Eidl Adha -Movable Date
Bonifacio Day -November 30
Christmas Day - December 25
Rizal Day -December 30
3. PREMIUM PAY (Arts. 91-
93)

-refers to the additional compensation for
work performed within an eight (8) hours
on non work days, such as rest days and
special days.
SPECIAL HOLIDAYS:

Ninoy Aquino Day - August 21

All Saints Day - November 1
Last Day of the Year- December 31
EDSA DAY - February 25
(for educational institutions only)
4. OVERTIME PAY

 Refers to the additional compensation for work performed

beyond eight (8) hours a day.
 Covers all employees
 Overtime pay rate:

Ordinary working days 25%

Regular holidays 30%

5. Night Shift Differential (Art. 86)

 Refers to additional compensation of ten percent (10%) of

an employee’s regular wage per hour for work performed
between 10:00 p.m. to 6:00 a.m.

 Exempted:
Retail and service establishments regularly employing not
more than five (5) employees.
6. Service Incentive Leave (Art.
95)
Coverage:

-Employee who has rendered at

least one (1) year of service
Number of Days:
= 5 days per year
7. Maternity Leave (RA 1161, as amended by
RA 8282

 Coverage: Applies to all female employees, whether

married or unmarried

 Normal delivery or miscarriage =60 days

 Caesarian section = 75 days

8. Paternity Leave (RA 8187)

 Coverage: all married male employees regardless of

employment status and employed at the time of
availment
 Purpose: lend support to wife in recovery and/or
nursing newborn child
 Applies to the first four (4) deliveries

 Seven (7) calendar days with pay

 NON-CONVERTIBLE TO CASH
9. Parental Leave for Solo Parents (RA 8972)
 Coverage:
-giving birth as a result of rape or crime against chastity
-death of spouse
-spouse serving a sentence for a criminal conviction for at least one (1) year
-physical and/or mental incapacity as certified by a public medical practitioner
-legal separation for at least one (1) year provided he/she is entrusted with the custody of the children
-nullity of marriage as declared by the church or court provided
he/she is entrusted custody of the children
-Abandonment of spouse for at least one (1) year
-unmarried father/mother who keep and rear his/her children
-licensed foster parent by DSWD
- any member of the family who assumes the responsibility of head of family as a result of death,
abandonment, disappearance or prolonged absence of parents
Parental leave. . . .
 What is parental leave? - leave benefits granted to solo parent to
enable him/her to perform parental duties and responsibilities
 What is a child - person living with and dependent on the solo
parent for support below 18 yrs old or even 18 yrs. old and above but is
mentally or physically incapable to self support

 Entitlement:
-rendered at least one (1) year of service, whether continuous or
broken
-notified employer within a reasonable time
-possess a Solo Parent ID
*NON-CONVERTIBLE TO CASH unless agreed
10. Leave for Victims of Violence Against Women and their Children (RA 9262)

 Refers to any act or series of act committed by any person against a

woman, a former wife or his wife or against a woman with whom the
person has or had a sexual dating relationship, or with whom he has a
common child or against her child whether legitimate or illegitimate within
or without the family abode which will likely result to physical, sexual,
psychological harm or economic abuse.

 Coverage - women employees. Leave of ten (10) days to be used for

medical and legal concerns. Said leave can be extended when the need
arise as specified in the protection order issued by the barangay of the
court.
11. SPECIAL LEAVE FOR
WOMEN
Coverage
-Women employees with
“gynaecological disorders” that
require surgical procedure and
certified by a competent physician.
Special Leave for Women……

 Conditions of Entitlement
 Rendered at least six (6) mos. Continuous aggregate employment
for the last 12 months prior to surgery
 Has filed an application prior to surgery

TWO (2) months with full pay

NOT CONVERTIBLE TO CASH

IF NOT USED.
12. THIRTEENTH-MONTH
PAY (PD 851)
 Coverage = all rank and file employees

 Amount = shall not be less than 1/12 of the total basic

salary earned by an employee in a calendar year

 Time of Payment = on or before every 24th day of

December in every year
13. Separation Pay (Arts. 283-84)

 Causes of termination:
 Authorized causes:
 Retrenchment to prevent further losses;
 Closure or cessation of operation not due to serious losses or
financial reverses
 Disease not curable within six (6) months and his/her
employment is prejudicial to his/her health or to the health of
his/her co-employees

Payment of ½ month salary in every

year of service or a fraction of at least
6 months is equivalent to one year
Causes of Termination:

 Just Causes:
 Serious misconduct or wilful disobedience by the
employee of the lawful orders of his employer in
connection with his work;
 Gross and habitual neglect by the employee of his duties;
 Fraud or wilful breach by the employee of the trust
reposed in him by his employer;
 Commission of a crime or offense by the employee
against the person of his employer or immediate member
of his family;
 Other causes analogous to the foregoing
14. Retirement Pay (Art. 287, as
amended by RA 7641)
 Retirement Age = 60 yrs. Old Optional
65 yrs. Old Mandatory
Exemptions: employees in retail, service and
agricultural establishment regularly
employing not more than ten (10) workers.

HOW MUCH? Daily Rate x 22.5 days x number of

years in service
THANK
YOU