SET 3

1. What are the remuneratory aspects of employment in the private sector?

Minimum wage in the region/sector

Holiday pay: One day pay for every regular holiday even if unworked subject to certain conditions
Premium pay for work within 8 hours on a
o Special or rest day: plus 30% of basic daily rate (bdr)
o Rest day falling on a special day: plus 50% of bdr
o Rest day falling on a regular holiday: plus 30% of 200% of bdr
Overtime pay for work in excess of 8 hours
Nightshift differential pay
Service Incentive Leave Pay
Service Charges
13th Month Pay
Paternity Leave
Separation Pay
Retirement Pay

What are the

benefits?
a. Hours of work
(8 hours)

How much and how is it computed?

Who are covered?

The normal hours of work of an employee

shall not exceed 8 hours a day.

It applies to all
employees in all
establishments and
undertakings, whether
operated for profit or
not, except to those
specifically exmpyed
under Art. 82 of the
Labor Code.

Ex. Daily Wage: P800

Work Schedue: 8:00 am 5:00 pm
(inclusive of 1 hour meal break)
Normal working hours of 8 hours a day:
The Eight-Hour Labor Law prescribes the
maximum but not the minimum.
Therefore, part-time work, or a days work
of less than 8 hours is not prohibited.
Meal and rest period:
meal break of less than one hour and

Obviously, the law on

conditions of
employment cannot
apply if employeeemployer relationship

Who are not covered?

1. Government employees
2. Managerial employees
including members of the
managerial staff
3. Field personnel
4. members of the family of
the employer who are
dependent upon him for
support
5. Domestic helpers or
persons in the personal
service of another
6. Workers paid by result
Government Employees

short rest periods shall be considered

compensable working time.

does not exist between

the parties.

a. refer only to employees

of government agencies,
instrumentalities, or
political subdivisions and
of government
corporations that are not
incorporated under the
Corporation Code, i.e.,
those which have original
charters
b. not covered under this
Title because of the terms
and conditions of
employment are governed
by the Civil Service Law,
rules and regulations
Managerial Employees:
a. Alter-egos of their
employers who meet the
following conditions:
1) Their primary duty
consists of the
management of the
establishment in
which they are
employed or of a
department or
subidivision thereof
2) They customarily
and regularly direct
the work of two or
more employees
therein

3) They have the

authority to hire or
fire other
employees of lower
rank; or their
suggestions and
recommendations
as to the hiring and
firing and as to the
promotion or any
other change of
status of other
employees are
given particular
weight (IRR Labor
Code, Rule I, Sec.
2[b])
b. Not covered because they
are employed by reason of
their special training,
experience, or knowledge;
value of their work cannot
be measured in terms of
hours.
Field Personnel
Non-agricultural employees
a. Who regularly perform
their duties away from the
principal place of business
or branch office of the
employer; and
b. Whose actual hours of
work in the field cannot be
determined with

reasonable certainty (IRR

LC, Book III, Rule II, Sec.
27)
Fishermen are not field
personnel, although they perform
non-agricultural work away from
the petitioners business offices,
the fact remains that throughout
the duration of their work they are
under the effective control and
supervision of employer. However,
under the Philippine Fisheries
Code of 1998, fishermen are
considered field personnel.
(Mercidar Fishing Corp. vs NLRC,
1998)
Drivers/Bus Conductors
It is of judicial notice that along
the routes that are plied by bus
companies, there are inspectors
assigned in strategic places,
mandatory once-a-week car barn
or shop day, dirvers/conductors
must be at specific place at
specified time, as they generally
observe prompt departure and
arrival from their point of origin to
their point of destination. They
are, therefore, under constant
supervision while in the
performance of this work and
hence cannot be considered field
personnel (Autobus Transport

Systems vs. Bautista, 2005).

Workers Paid by Result are those
whose work is not measured in
accordance with the time they
spent to complete the work. The
time element, in fact, is not a
material consideration. Such work
is measured either:
1. By piece or
2. By task
Not all workers paid by result
are excluded from the
coverage.

b. Work from
10:00 pm to
6:00 am

Night Shift Differential

Without Overtime
([10% x regular wage per hour] x no. of
hours of work performed between 10 pm
-6 am)
Step 1: Get hourly wage rate.
Daily wage divided by no. of hours
worked
Eg. P800 /8hrs = P100
Step 2: Compute wage between 10 pm
6 am.
Eg. 8 hrs x P100 = P800
Step 3: Compute NSD
(10% of regular wage per hour x no. of
hours work performed between 10 pm 6

General Rule: All

employees are entitled
to NSD (with
exceptions).

Exceptions:
1. Those provided in Art. 82
a. Government employees
b. Managerial employees
including members of the
managerial staff
c. Field personnel
d. Members of the family of
the employer who are
dependent upon him for
support
e. Domestic helpers or
persons in the personal
service of another
f. Workers paid by result
2. Employees of retail and
service establishments

am)
(10% x P100) x 8 hrs = P80

c. Meal periods

Computation:
10 pm 6 am (8 hrs) x P100 = 800
NSD (8 hrs) x P10 = P80
Total Wage earned: P800 + P80 = P880
1. Should not be less than 60
minutes. It is non-compnesable
except where during the so-called
meal period, the laborers are
required to standby for emergency
work, or said meal hour is not one
of complete rest, such period is
considered hours worked (Pan
American World Airways System
vs. Pan American Employees
Association, 1961).
2. May be less than 60 minutes, but
should not be less than 20
minutes and the shortened
mealtime must be with full pay,
under the following circumstances:
a. Work is non-manual work in
nature or does not involve
strenuous physical exertion;
b. The establishment regularly
operates operates not less
than 16 hours a day;
c. In cases of actual or impending
emergencies or there is urgent
work to be performed on
machineries, equipment or
installations to avoid serious
loss which the employer would

regularly employing not

more than 5 workers (IRR
LC, Book III, Rule II, Sec. 1
[b])

It applies to all
employees in all
establishments and
undertakings, whether
operated for profit or
not, except to those
specifically exmpyed
under Art. 82 of the
Labor Code.
Obviously, the law on
conditions of
employment cannot
apply if employeeemployer relationship
does not exist between
the parties.

1. Government employees
2. Managerial employees
including members of the
managerial staff
3. Field personnel
4. members of the family of
the employer who are
dependent upon him for
support
5. Domestic helpers or
persons in the personal
service of another
6. Workers paid by result

otherwise suffer;
d. Work is necessary to prevent
serious loss of perishable
goods (IRR LC, BOOK III, Rule I,
Sec. 7).
3. If less than 20 minutes, it comes
only a rest period and is thus
considered as work time.
Shortened Meal Break Upon Employees
Request
Employees may request that their meal
period be shortened so that they can
leave work earlier than the previously
established schedule. Such shortened
mealtime is not compensable.
Requisites
a. Employees voluntarily agree in
writing and waive the overtime
pay;
b. No diminution in the salary and
other fringe benefits of the
employees already existing;
c. Work is not physically strenuous
and they are provided with
adequate coffee breaks in the
morning and afternoon;
d. Value of benefits is equal to the
compensation due them;
e. Overtime pay will become due and
demandable if ever they are
permitted or made to work beyond
agreed hours of work; and
f. The arrangement is of temporary
duration.

d. Work beyond
8 hours

Overtime Pay is an additional

compensation for work performed beyond
8 hours within the 24-hour workday
regardless whether the work covers 2
calendar days.
Rates
1. Overtime work on Regular
Work Day
The employee is paid for the
overtime work on additional
compensation equivalent to his
regular wage plus at least 25%
thereof.
2. Overtime work on Holiday or
Rest Day
Overtime work performed on a
special holiday or rest day not
falling on a regular holiday shall
be paid an additional
compensation equivalent to the
rate of the first eight hours on that
day plus at least 30% thereof.
Conditions to be entitled to Overtime
Pay
1. Entitlement to overtime pay must
first be established by sufficient
proof
2. Said overtime work was actually
performed
(Cagampan vs. NLRC, 1991).
General Rule: Overtime pay cannot be
waived expressly or impliedly. Any

General Rule: An
express instruction
from the employer is
not required. It is
sufficient that the
employee is permitted
or suffered to work.
Exception: On rest
days and holidays,
written authority after
office hours is required
for entitlement to
compensation.
Note: A verbal
instruction to render
overtime work prevails
over a memorandum
prohibiting such work
(A.L. Ammen
Transportation Co. vs.
Borja, 1962).
It applies to all
employees in all
establishments and
undertakings, whether
operated for profit or
not, except to those
specifically exmpyed
under Art. 82 of the
Labor Code.

1. Government employees
2. Managerial employees
including members of the
managerial staff
3. Field personnel
4. members of the family of
the employer who are
dependent upon him for
support
5. Domestic helpers or
persons in the personal
service of another
6. Workers paid by result

contrary stipulation is null and void, as it

is intended to benefit laborers and
employees.
Exception:
1. when the waiver is made in
consideration of benefits and privileges
which may be more than what will accrue
to them in overtime pay
2. Compressed work week
Note: Employees whose positions are
reclassified from rank-and-file to
supervisory lose overtime pay and
other benefits under Arts. 82-96.
Promotion produces the same effect. But
the promotion and position
reclassification must be done in good
faith. The personnel movement should
not be intended to circumvent the law to
deprive employees of the benefits they
used to receive (Productivity Incentives
Act of 1990, R.A. No. 6971).
Compulsory/Emergency Overtime
Work
Any employee may be required by the
employer to perform overtime work in
any of the following cases:
1.

1. 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;
2. 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;
3. 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;
4. When the work is necessary to
prevent loss or damage to perishable
goods; and
5. 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.
2.
6. When overtime work is
necessary to avail of favorable
weather or environmental conditions
where performance or quality of work
is dependent thereon.
e. Rest day

Every employer shall give his

employees a rest period of not less
than 24 consecutive hours after
every 6 consecutive normal work
days.

All employers whether

operating for profit or
not, including public
utilities operated by
private persons.

1. Government employees
2. Managerial employees
including members of the
managerial staff
3. Field personnel
4. members of the family of
the employer who are
dependent upon him for
support
5. Domestic helpers or
persons in the personal

f.

Work on Rest
day

Additional compensation of at
least 30% of a workers regular
wage for work performed on his
rest day.
Eg. [Rest day wage rate (130%) + 30% of
rest day wage rate]

Rest Day Sunday

Daily Wage P800
Work Schedule 8:00 am 5:00 pm
(inclusive of 1 hour meal break)
OT 5:00 pm 10:00 pm
Step 1: Get hourly wage rate.
Daily Basic Wage divided by no. of hours
worked multiplied by special holiday
wage rate.
(P800/8 hrs) x 130% =P130
Step 2: Compute wage between 8:00 am
5:00 pm using rest day wage rate.
8 hrs x P130 = P1,040
Step 3: Compute OT Premium Pay
between 5:00 pm-10:00 pm.
[(30% H Wage per hour) + H Wage per
hour] x no. of OT hours
(30% x P130) + P130 = P169
X no. of OT hours (5 pm 10 pm)
5 hrs x P169 = P845
Computation:
8am-5pm 8 hrs x P130 = P1,040

Rule applies to all

employers whether
operating for profit or
not, including public
utilities operated by
private persons.
An employee who is
made or permitted to
work on his scheduled
rest day. An employee
shall be entitled to
such additional
compensation for work
performed on a Sunday
only when it is his
established rest day.

service of another
6. Workers paid by result
1. Government employees
2. Managerial employees
including members of the
managerial staff
3. Field personnel
4. members of the family of
the employer who are
dependent upon him for
support
5. Domestic helpers or
persons in the personal
service of another
6. Workers paid by result

5pm-10pm 5 hrs x P169 = P845

Total Wage Earned: P1,040 + P845 =
P1,885
An employer may require any of his
employees to work on his scheduled rest
day for the duration of the following
emergency and exceptional conditions:
(a) 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;
(b) In case of urgent work to be
performed on machineries, equipment
or installations to avoid serious loss
which the employer would otherwise
suffer;
(c) In the event of abnormal pressure
of work due to special circumstances,
where the employer cannot ordinarily
be expected to resort to other
measures;
(d) To prevent serious loss of
perishable goods;
(e) Where the nature of the work is
such that the employees have to work
continuously for seven (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;
and
(f) When the work is necessary to avail

of favorable weather or environmental

conditions where performance or
quality of work is dependent thereon.
g. Special
Holidays

Work performed on any special

holiday shall be paid with an
additional compensation of at least
30% of his regular wage for work
performed on a special holiday.
Where such holiday work falls on the
employees scheduled rest day, he
shall be entitled to additional
compensation of at least 50% of his
regular wage.
Work on Special Holiday with
Overtime
Eg. [Special Holiday wage rate (130%) +
30% of special holiday wage rate]

Special Holiday June 24 Manila Day

Daily Wage P800
Work Schedule 8:00 am 5:00 pm
(inclusive of 1 hour meal break)
OT 5:00 pm 10:00 pm
Step 1: Get hourly wage rate.
Daily Basic Wage divided by no. of hours
worked multiplied by special holiday
wage rate.
(P800/8 hrs) x 130% =P130
Step 2: Compute wage between 8:00 am

Rule applies to all

employers whether
operating for profit or
not, including public
utilities operated by
private persons.

1. Government employees
2. Managerial employees
including members of the
managerial staff
3. Field personnel
4. members of the family of
the employer who are
dependent upon him for
support
5. Domestic helpers or
persons in the personal
service of another
6. Workers paid by result

 5:00 pm using special holiday wage

rate.
8 hrs x P130 = P1,040
Step 3: Compute OT Premium Pay
between 5:00 pm-10:00 pm.
[(30% H Wage per hour) + H Wage per
hour] x no. of OT hours
(30% x P130) + P130 = P169
X no. of OT hours (5 pm 10 pm)
5 hrs x P169 = P845
Computation:
8am-5pm 8 hrs x P130 = P1,040
5pm-10pm 5 hrs x P169 = P845
Total Wage Earned: P1,040 + P845 =
P1,885
Work on Special Holiday which is also
a Rest Day with Overtime
[Rest day & special holiday wage rate
(150%) +30% of rest day & special
holiday wage rate]
Eg. Manila Day falling on a Sunday
Daily Wage: P800
Work Schedule: 8:00am-5:00pm
(inclusive of 1 hour meal break)
OT: 5:00pm-10:00 pm
Step 1: Get hourly wage rate.
Daily Basic Wage divided by no. of hours
worked multiplied by rest day & special
holiday wage rate.
(P800/8 hrs) x 150% = P150

Step 2: Compute wage between 8:00 am5:00 pm using special holiday wage rate.
8 hrs x P150 = P1,200
Step 3: Compute OT Premium Pay
between 5:00pm-10:00pm.
[(30% H Wage per hour) + H Wage per
hour] x no. of OT hours
(30% x P150) + P150 = P195
X no. of OT hours (5-10 pm)
P195x5hrs= P975
Computation:
8am-5pm 8 hrs xP150 = P1,200
5pm-10pm 5 hrs x P195 = P975
Total Wage Earned: P2,175

h. Regular/Legal
Holidays

Every employer shall pay his

employees their regular daily wage
for any unworked regular holiday.
Any employee who is permitted or
suffered to work on any regular
holiday, not exceeding 8 hours, shall
be paid at least 200% of his regular
daily wage.
If the legal holiday work falls on the
scheduled rest day of the employee,
he shall be entitled to an additional
premium pay of at least 30% of his
regular holiday rate of 200% based
on his regular wage rate.

All employees except

those not covered by
Rule IV of Book III, IRR
of LC.

(a) Those of the government and

any of the political subdivision,
including government-owned and
controlled corporation;
(b) Those of retail and service
establishments
regularly
employing less than ten (10)
workers;
(c) Domestic helpers
and
persons in the personal service
of another;
(d) Managerial employees as
defined in Book Three of the
Code;
(e) Field personnel and other
employees whose time and
performance is unsupervised by

Legal or Regular Holiday with

Overtime
[Holiday wage rate (200%)+30% of
holiday rate]
Eg.
June 12 Independence Day
Daily wage: 800
Work Schedule: 8:00 am-5:00 pm
(inclusive of 1 hour meal break)
OT: 5:00-10:00 pm
Step 1: Get hourly wage rate.
Daily basic wage divided by no. of hours
worked multiplied by regular holiday
wage rate
(P800/8 hrs)x 200% = P200
Step 2: Compute wage between 8am5pm using holiday wage rate
8 hrs x P200 = P1,600
Step 3: Compute OT Premium Pay
between 5:00 pm-10:00 pm.
[(30% x Wage per hour) + Wage per
hour] x no. of OT hours
(30% x P200) +P200 = P260
X no. of OT hours (5:00-10:00 pm)
P260 x 5 hrs = P1,300
Computation:
8am-5pm (8 hrs) x P200 = P1,600
5pm-10pm (5 hrs) x P260 = P1,300
Total Wage Earned: P1600 +P1,300 =
P2,900

the employer including those

who are engaged on task or
contract
basis,
purely
commission basis, or those who
are paid a fixed amount for
performing work irrespective of
the time consumed in the
performance thereof.

Scheduled Rest Day which is also a

Legal or Regular Holiday with
Overtime
[Rest day and legal holiday wage rate +
30% of rest day and legal holiday wage
rate (260%)]
Eg.
May 1 (Labor Day falling on a Sunday)
Daily Wage: P800
Work Schedule: 8:00 am-5:00 pm
(inclusive of 1 hour meal break)
OT: 5:00-10:00 pm
Step 1: Get hourly wage rate.
Daily Basic Wage divided by no. of hours
worked multiplied by rest day and legal
holiday wage rate.
(P800/8 hrs) x 260% = P260
Step 2: Compute wage between 8:00 am5:00pm using holiday wage rate.
8 hrs x P260 = P2,080
Step 3: Compute OT Premium Pay
between 5:00 pm-10:00 pm
[(30% x Wage per hour) + Wage per
hour] x no. of OT hours
(30% x P260) + P260 = P338
X no. of OT hrs (5-10pm)
P338 x 5 hrs = P1,690
Computation:
8am-5pm (8hrs) x 260 = P2,080

5pm-10pm (5 hrs) x 338 = P1,690

Total Wage Earned: P3,770
Double Holiday Pay with Overtime
[Double Holiday wage rate (300%) +30%
of Double Holiday Wage Rate]
Eg.
April 9 (Araw ng Kagitingan coinciding
with Good Friday)
Daily Wage: P800
Work Schedule: 8:00 am-5:00 pm
(inclusive of 1 hour meal break)
OT: 5:00-10:00 pm
Step 1: Get hourly wage rate.
Daily Basic Wage divided by no. of hours
worked multiplied by rest day and legal
holiday wage rate.
(P800/8hrs) x 300% = P300
Step 2: Compute wage between 8am5pm using special holiday wage rate.
8 hrs x P300 = P2,400
Step 3: Compute OT Premium Pay
between 5pm-10pm.
[(30%x Wage per hour) + Wage per hour]
x no. of OT hours
(30% x P300) + P300 = P390
X no. of OT hours (5pm-10pm)
P390 x 5 hrs = P 1,950
Computation:
8am-5pm (8 hrs) x P300 = P2,400

5pm-10pm (5 hrs) x P390 = P1,950

Total Wage Earned: P4,350
i.

SILP

Every employee who has rendered at

least one year of service shall be entitled
to a yearly service incentive leave of five
days with pay.
Service incentive leave shall be
commutable to its money equivalent if
not used or exhausted at the end of the
year.
Vacation and Sick Leave are not
statutorily required; matter of
management discretion or a product of
CBA.

All employees (with

exceptions)
Part-time workers
are entitled to the full
benefit of the yearly 5day SIL.
Piece-rate workers
working inside the
premises of the
employer and thus are
under the direct
supervision of the
employer are entitled
to SIL.
Piece-rate workers
working outside the
premises of the
employer whose hours
spent in the
performance of their
work cannot be
ascertained with
reasonable certainty
and thus are not under
the direct supervision
of the employer are
not entitled to SIL.
(Labor Congress of the

(a) Those of the government

and
any
of
its
political
subdivisions,
including
government-owned
and
controlled corporations;
(b) Domestic helpers and
persons in the personal service
of another;
(c) Managerial employees as
defined in Book Three of this
Code;
(d) Field personnel and other
employees whose performance
is
unsupervised
by
the
employer including those who
are engaged on task or contract
basis, purely commission basis,
or those who are paid a fixed
amount for performing work
irrespective
of
the
time
consumed in the performance
thereof;
(e) Those who are already
enjoying the benefit herein
provided;
(f) Those enjoying vacation
leave with pay of at least five
days; and
(g)
Those
employed
in
establishments
regularly
employing
less
than
ten

Philippines vs NLRC,
1998)
j.

Service
Charges

All service charges collected by covered

employers shall be distributed at the rate
of 85% for the employees and 15% for
the management. The 85% shall be
distributed equally among the covered
employees. The 15% shall be for the
disposition by management to answer for
losses and breakages and distribution to
managerial employees at the discretion
of the management in the latter case.
The shares referred to herein shall be
distributed and paid to the employees not
less than once every two (2) weeks or
twice a month at intervals not exceeding
sixteen (16) days.
Pooled Tips. Where an establishment
does not collect service charges but has a
practice or policy of pooling tips given
voluntarily by its customers, the pooled
tips should be monitored, accounted for
and distributed in the same manner as
the service charges (DOLE Handbook on
Workers Statutory Monetary Benefits).
Service Charge is not in the nature of a
profit share and, therefore, cannot be
deducted from wage.

This rule shall apply

only to establishments
collecting
service
charges such as hotels,
restaurants,
lodging
houses, night clubs,
cocktail
lounge,
massage clinics, bars,
casinos and gambling
houses, and similar
enterprises, including
those
entities
operating primarily as
private subsidiaries of
the Government.
This rule shall apply to
all
employees
of
covered
employers,
regardless
of
their
positions, designations
or employment status,
and irrespective of the
method by which their
wages are paid except
to
managerial
employees.
As used herein, a
"managerial employee"
shall mean one who is
vested with powers or
prerogatives
to
lay
down
and
execute

employees.

Employees of establishments not

falling under Sec. 1 of Rule VI, IRR
of LC.

management policies
and/or to hire, transfer,
suspend, lay-off, recall,
discharge, assign, or
discipline employees or
to
effectively
recommend
such
managerial actions. All
employees not falling
within this definition
shall be considered
rank-and-file
employees.

k. 13th Month
Pay

The 13th month pay required by law shall

not be less than one-twelfth of the total
basic salary earned by an employee
within a calendar year.

All rank and file

employees are now
entitled to a 13th
month pay regardless
of the amount of basic
salary that they receive
in a month if their
employers are not
otherwise exempted
from the application of
P.D. No. 851. Such
employees are entitled
to the benefit
regardless of their
designation or
employment status,
and irrespective of the
method by which their
wages are paid,
provided that they

a. The Government and any of its

political subdivisions, including
government-owned and controlled
corporations, excepts those
corporations operating essentially
as private subsidiaries of the
Government;
b. Employers already paying their
employees a 13th month pay or
more in a calendar year or its
equivalent at the time of this
issuance;
c. Employers of household
helpers and persons in the
personal service of another in
relation to such workers; and
d. Employers of those who are

l.

Retirement
Benefits

An employee may be retired upon

reaching the age of sixty (60) years.
(a) An employee who is retired
pursuant to a bona-fide retirement plan
or in accordance with the applicable
individual or collective agreement or
established employer policy shall be
entitled to all the retirement benefits
provided therein or to termination pay
equivalent to at least one-half month
salary for every year of service,
whichever is higher, a fraction of at
least six (6) months being considered
as one whole year.
(b) Where both the employer and the
employee contribute to the retirement
plan,
agreement
or
policy,
the
employer's total contribution thereto
shall not be less than the total
termination pay to which the employee

have worked for at

least one (1) month
during a calendar year.

paid on purely commission,

boundary, or task basis, and those
who are paid a fixed amount for
performing specific work,
irrespective of the time consumed
in the performance thereof,
except where the workers are paid
on piece-rate basis in which case
the employer shall grant the
required 13th month pay to such
workers.

This applies to all

establishments and
undertakings, whether
operated for profit or
not, including
educational, medical,
charitable and religious
institutions and
organizations, in cases
of regular employment.

Government and its political

subdivision including GOCCs.

would have been entitled had there

been no such retirement fund. In case
the employer's contribution is less than
the termination pay the employee is
entitled to receive, the employer shall
pay the deficiency upon the retirement
of the employee.
m. Paternity
Leave

Paternity Leave refers to the

benefits granted to a married male
employee allowing him not to report for
work for seven (7)
days but continues to earn the
compensation therefor, on the condition
that his spouse has
delivered a child or suffered a miscarriage
for purposes of enabling him to
effectively lend
support to his wife in her period of
recovery and/or in the nursing of the
newly-born child.

Every married male

employee in the
private and public
sectors shall be
entitled to a paternity
leave of seven (7)
days with full pay for
the first four (4)
deliveries of the
legitimate spouse with
whom he is
cohabiting. The male
employee applying for
paternity leave shall
notify his employer of
the
pregnancy of his
legitimate spouse and
the expected date of
such delivery.
Conditions:
a. He is an
employee at the
time of delivery
of his child
b. He is cohabiting

Not lawfully married males or

those who do not meet the
required conditions in the
preceding column.

with his spouse

at the time she
gives birth or
suffers a
miscarriage.
c. He has applied
for paternity
leave.
d. His wife has
given birth or
suffered a
miscarriage.
RA No. 8187 Paternity
Leave Act of 1996
2. Who has the burden of proof when a worker is claiming any of the foregoing benefits?
As a general rule, one who pleads payment has the burden of proving it. Even where the plaintiff must allege nonpayment, the general rule is that the burden rests on the defendant to prove payment, rather than on the plaintiff to
prove non-payment. The debtor has the burden of showing with legal certainty that the obligation has been discharged
by payment. When the existence of a debt is fully established by the evidence contained in the record, the burden of
proving that it has been extinguished by payment devolves upon the debtor who offers such a defense to the claim of
the creditor. Where the debtor introduces some evidence of payment, the burden of going forward with the evidence - as
distinct from the general burden of proof- shifts to the creditor, who is then under a duty of producing some evidence to
show non-payment.
3.

What are the principles in determining hours worked?

(a) All hours are hours worked which the employee is required to give his employer, regardless of whether or not such
hours are spent in productive labor or involve physical or mental exertion.cralaw
(b) An employee need not leave the premises of the work place in order that his rest period shall not be counted, it being
enough that he stops working, may rest completely and may leave his work place, to go elsewhere, whether within or
outside the premises of his work place.cralaw

(c) If the work performed was necessary, or it benefited the employer, or the employee could not abandon his work at
the end of his normal working hours because he had no replacement, all time spent for such work shall be considered as
hours worked, if the work was with the knowledge of his employer or immediate supervisor.cralaw
(d) The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be
considered working time either if the imminence of the resumption of work requires the employee's presence at the
place of work or if the interval is too brief to be utilized effectively and gainfully in the employee's own interest.cralaw
4. When is waiting time compensable? And when is it not?
Waiting time. (a) Waiting time spent by an employee shall be considered as working time if waiting is an integral part
of his work or the employee is required or engaged by the employer to wait.cra
(b) An employee who is required to remain on call in the employer's premises or so close thereto that he cannot use the
time effectively and gainfully for his own purpose shall be considered as working while on call. An employee who is not
required to leave word at his home or with company officials where he may be reached is not working while on
call.cralaw

5. What are the requirements before we give due course to an employers claim that his workers are paid by results?
The Department of Labor shall use all available devices, including the use of time and motion studies and
consultation with representatives of employers and workers organizations to determine whether the employees in any
industry or enterprise are being compensated in accordance with minimum wage requirements.
6. May an employer deduct from workers wages the value of the board, lodging and other facilities furnished by employer
to his employees?
In order that the cost of facilities furnished by the employer may be charged against an employee, his acceptance
of such facilities must be voluntary.
7. What are the prohibited acts against women workers?
SECTION 13. Prohibited acts. It shall be unlawful for any employer:
(a) To discharge any woman employed by him for the purpose of preventing such woman from enjoying the maternity leave,
facilities and other benefits provided under the Code;
(b) To discharge such woman employee on account of her pregnancy, or while on leave or in confinement due to her pregnancy;

(c) To discharge or refuse the admission of such woman upon returning to her work for fear that she may be pregnant;
(d) To discharge any woman or child or any other employee for having filed a complaint or having testified or being about to
testify under the Code; and
(e) To require as a condition for a continuation of employment that a woman employee shall not get married or to stipulate
expressly or tacitly that upon getting married, a woman employee shall be deemed resigned or separated, or to actually
dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage.cralaw

8. What are the consideration and prohibitions as regards payment of wages?

Manner of wage payment. As a general rule, 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.cralaw

Payment by check. Payment of wages by bank checks, postal checks or money orders is allowed where such manner of
wage payment is customary on the date of the effectivity of the Code, where it is so stipulated in a collective agreement, or
where all of the following conditions are met:

(a) There is a bank or other facility for encashment within a radius of one (1) kilometer from the workplace;
(b) The employer or any of his agents or representatives does not receive any pecuniary benefit directly or indirectly from the
arrangement;
(c) The employees are given reasonable time during banking hours to withdraw their wages from the bank which time shall be
considered as compensable hours worked if done during working hours; and
(d) The payment by check is with the written consent of the employees concerned if there is no collective agreement authorizing
the payment of wages by bank checks.cralaw

Time of payment. (a) Wages shall be paid not less than once every two (2) weeks or twice a month at intervals not exceeding
sixteen (16) days, unless payment cannot be made with such regularity due to force majeure or circumstances beyond the
employer's control in which case the employer shall pay the wages immediately after such force majeure or circumstances have
ceased.cralaw
(b) In case of payment of wages by results involving work which cannot be finished in two (2) weeks, payment shall be made at
intervals not exceeding sixteen days in proportion to the amount of work completed. Final settlement shall be made
immediately upon completion of the work.

Place of payment. As a general rule, the place of payment shall be at or near the place of undertaking. Payment in a place
other than the work place shall be permissible only under the following circumstances:
(a) When payment cannot be effected at or near the place of work by reason of the deterioration of peace and order conditions,
or by reason of actual or impending emergencies caused by fire, flood, epidemic or other calamity rendering payment thereat
impossible;
(b) When the employer provides free transportation to the employees back and forth; and
(c) Under any other analogous circumstances; Provided, That the time spent by the employees in collecting their wages shall be
considered as compensable hours worked;
(d) No employer shall pay his employees in any bar, night or day club, drinking establishment, massage clinic, dance hall, or
other similar places or in places where games are played with stakes of money or things representing money except in the case
of persons employed in said places.cralaw

Direct payment of wages. Payment of wages shall be made direct to the employee entitled thereto except in the following
cases:
(a) Where the employer is authorized in writing by the employee to pay his wages to a member of his family;

(b) Where payment to another person of any part of the employee's wages is authorized by existing law, including payments for
the insurance premiums of the employee and union dues where the right to check-off has been recognized by the employer in
accordance with a collective agreement or authorized in writing by the individual employees concerned; or
(c) In case of death of the employee as provided in the succeeding Section.cralaw

9. Differentiate job contracting from labor-only contracting? What are the effects of finding that there is labor-only
contracting?

SECTION 8. Job Contracting. There is job contracting permissible under the Code if the following conditions are met:
(a) The contractor carries on an independent business and undertakes the contract work on his own account under his own
responsibility according to his own manner and method, free from the control and direction of his employer or principal in all
matters connected with the performance of the work except as to the results thereof; and
(b) The contractor has substantial capital or investment in the form of tools, equipment, machineries, work premises, and other
materials which are necessary in the conduct of his business.cralaw
SECTION 9. Labor-only contracting. (a) Any person who undertakes to supply workers to an employer shall be deemed to be
engaged in labor-only contracting where such person:
(1) Does not have substantial capital or investment in the form of tools, equipment, machineries, work premises and other
materials; and
(2) The workers recruited and placed by such person are performing activities which are directly related to the principal business
or operations of the employer in which workers are habitually employed.cralaw
(b) Labor-only contracting as defined herein is hereby prohibited and the person acting as contractor shall be considered merely
as an agent or intermediary of the employer who shall be responsible to the workers in the same manner and extent as if the
latter were directly employed by him.cralaw
(c) For cases not falling under this Rule, the Secretary of Labor and Employment shall determine through appropriate orders
whether or not the contracting out of labor is permissible in the light of the circumstances of each case and after considering the

operating needs of the employer and the rights of the workers involved. In such case, he may prescribe conditions and
restrictions to insure the protection and welfare of the workers.
10. Explain workers preference in case of bankruptcy?
Payment of wages in case of bankruptcy. Unpaid wages earned by the employees before the declaration of bankruptcy or
judicial liquidation of the employer's business shall be given first preference and shall be paid in full before other creditors may
establish any claim to a share in the assets of the employer.crala

The preferential right of workers and employees under Article 110 of the Labor Code may be invoked only upon the institution
of insolvency or judicial liquidation proceeding. Indeed, it is well-settled that "a declaration of bankruptcy or a judicial liquidation
must be present before preferences over various money claims may be enforced." But debtors resort to preference of credit -giving preferred creditors the right to have their claims paid ahead of those of other claimants -- only when their assets are
insufficient to pay their debts fully. The purpose of rehabilitation proceedings is precisely to enable the company to gain a new
lease on life and thereby allow creditors to be paid their claims from its earnings. In insolvency proceedings, on the other hand,
the company stops operating, and the claims of creditors are satisfied from the assets of the insolvent corporation.

11. When may attorneys fees be granted?

Attorney's fees. Attorney's fees in any judicial or administrative proceedings for the recovery of wages shall not exceed 10
percent of the amount awarded. The fees may be deducted from the total amount due the winning party.cralaw

12. When does wage distortion occur?

The term "wage distortion", under the Rules Implementing Republic Act 6727, is defined, thus:
(p) Wage Distortion means a situation where an increase in prescribed wage rates results in the elimination or
severe contradiction of intentional quantitative differences in wage or salary rates between and among employee
groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on
skills, length of service, or other logical bases of differentiation.

A wage distortion can arise only in a situation where the salary structure is characterized by intentional quantitative
differences among employee groups determined or fixed on the basis of skills, length of service, or other logical basis of
differentiation and such differences or distinction are obliterated (In Re: Labor Dispute at the Bank of the Philippine Islands,
NCMB-RB-7-11-096-89, Secretary of Labor and Employment, February 18, 1991).
The definition of "wage distortion," 10 aforequoted, shows that such distortion can so exist when, as a result of an
increase in the prescribed wage rate, an "elimination or severe contraction of intentional quantitative differences in wage or
salary rates" would occur "between and among employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation." In
mandating an adjustment, the law did not require that there be an elimination or total abrogation of quantitative wage or
salary differences; a severe contraction thereof is enough.
13. What is the difference between Art. 128 and Art. 129 of the Labor Code?
Article 128 deals with visitorial and enforcement power by virtue of the police power of the State. Article 129 deals with
simple money claims not exceeding P5,000.
14. When do money claims proscribe?
Money claims prescribe three years from the time the case accrues.
15. Is a lady performing domestic chores in a company rest house considered a domestic help? Reason.
No, she is not considered a domestic help. The term `househelper is synonymous to the term `domestic servant and
shall refer to any person, whether male or female, who renders services in and about the employers home and which
services are usually necessary or desirable for the maintenance and enjoyment thereof, and ministers exclusively to the
personal comfort and enjoyment of the employers family.