There is labor only contracting when a person who supplies workers to the ER does not have substantial

capital, investment in the form of tools, equipment, machineries, work premises among others and the
workers recruited and placed by such persons are performing act which are dir related to the princi
business of such er. The sc does not use that as a criteria. What does the sc use? The sc uses 294 – that
the workers are made to perform act that are usually necessary or desiurable to the usual business or
trade of the er. That’s the def of reg ee. Not 106.

Until july 4, 2008. There is now a case where the sc uses 106. Karon pa nigawas. First div. story of 2 pp
working in coca cola bottling corp of the phild. They manufacture coke, mao na ilang businesss than they
entered into a contract with a warehouse distributing company. They provide the warehouse and
distribution. They also hires a manpower agency. Forklift operator and softdrink determinator(?) sya
magbuot asa ipadala ang bottles, asa ipadaplin ang empties. Mao iyang work sa warehouse. So we have
coca cola and the warehousing agency. They have been transferred from one agency to another and
finally they are not renewed. They sue cc and the warehousing agency. Sc says “we do not accept cc
argument that they are hiring pp that do a job that is usual and necessary to cc. they are hiring pp that
do something directly related to cc. now they are using 106 “directly rel. because u make the bottling,
but what good are u bottling if u cannot sell it?

So these warehousing and selling of cc is directly related to bottling. Dira gigamit sa sc ang directly
related but normally when sc determines whether u are engaged in labor only contracting, sc uses 290.
Won that the workers are made to perform act that are usually necessary or desirable to the usual
business or trade of the er.\why does sc go all through the trouble? Bec directly related is a very
ambiguous test.

Eg banks. What is the function of banks. Is it not that they safeguard your money? The money that u
deposit to the bank. So sec guards cannot be contracted out bec they help in safeguarding, but all banks
enter into a contract with sec agency bec banks claim it is not usual or necessary to trade or business.
They are financial institutions. Ang safeguarding is tangential only. If u claim that the banks cannot
contract out the security bec it is usual and necessary, then u will make the banks hire pp who will train
them to use guns, trained with arms and ammunitions. The banks will say not related to their fxns as
financial insti. This measure 106 and 294 is still a big debate. What is sual and necessary, what is dir
related. Usual and necessary—wide. Directly related ---measure is narrower.

Tabas vs California case is an issue of dir related or usual and necessary. You can hardl sell anything
without selling promos. So usual and nce, therefor regular and cannot be contrnatced out. But fontera
comes alon and sc says merchandising is term worker, is shortlived, not sustained so therefore not usual
and necessary. Copy with pres.

We have been through the various people exempt even if they are in er-ee rel. wether govnmt,
managerial, field personnel. What now are the labor standards benefits?

We begin with hours of work. Su;pose u are asked in Bar, how many hrs of wqork must a worker perform
for a full days pay? Kung mutubag ka 8 hrs, pagkasayop. That is wrong. Not more than 8 hrs. why is that
the answer? Because u know very well one of the sources of rights of workers is company practice and
company policy. If they conflict which one prevails? The one that prevails is… It depends which is more
favorable to the worker. Karon,the law says 8 hrs maximum, u are lets say one of the staff of insurance
co, regular 8-5 job. 8am time in 12nn lunch, 1pm punch in, gawas ka 5pm. 4 in the am, 4 in the aft, that is
8. Suppose u are tolerated to extend your lunch. Mag power lunch ka. Suroy suroy kung nay nagsale,
balik ka ug 2 pm. How many hrs of work is that already> 7 na lang na. dili na 8 hrs because of ur 2 hrs
lunch break instead of 1. U do that for 2 yrs, it becomes a matter of right. If the company says, NOMORE,
wala na, it has already ripened into a right. For that workplace, full days pay is only 7 hrs work. Ikaw
company ka masayop ka ana, unsaon pagbalik sa 8 hrs, bayaran na sad nimo sila ug extra, increasan
nimo.

How many hrs must an ee work in order to gain full days pay? Not more than 8. It can be 7 or 6. Because
certain workplaces admit lesser than 8 hrs work. In Canada, aus, france is the worst—all these places its
not 8 hrs. but the regulate time is weeks. How many hrs a week do u work ilaha. Because they allow flexi
time. So for a workweek of 6 fdays, u work 48 hrs. there woirkweek is usally 5 days. Sat-sun no more. In
Canada is now down to 37. The worst is france is now down to 32. Ang germany, 40 gihapon p[ero
daghan sila extra holidays.US is flexi time. Naa naman silay work from home.

What is the reference on the phils? Its not the work week but the working day. What is a working day in
the LC? In the IRR defined as 24 consecutive hrs beginning each day at the same time at the first hr of
work.

Draws a clock on board.

If u work within 24 hrs for more than 8 hrs, the hrs of work above 8 hrs is overtime. So u have OT. During
working day 25% additional to your straight time pay.

One day u were not able to punch in at 8 kay nay car accident so naka in ka 10pm. Wala pa niini imo
lubot sa chair, lunch na ka at 12. Ingnan ka niya 5pm dili sa mag out so 7 na ka nakaout. Paggawas sa
swledo muingon ka wala to giOT imo extra 2 hrs. 125%. Who is corredct, the complainant worker or the
mgt who didt not give this particular time OT? It is the mgt who is correct.
Why? Bec u are pain a full days pay for full days labor unya 10am naman ka ni-in. so wala ka ni-OT.
Working day is the reference.

Let us say that this partciualr workplace is in a 3 shift business ----7-3, 3-11, 11-7. Conrinuous, nonstop
work is contemplated, walay meal period. Eg. Hospitals. Lets say the policy is change of shift in the next
month. SHIFT THE SHIFT joke. Permiro day shift ka 7-3 end of the month na change na, pagkagabie,
mureport na sad ka sa new shift nimo 11-7. What is your rate of pay for the first day of the shift? 7-3 reg
na rate nimo. Pagbalhin nimo sa 1—7, kanan tanan opvertime na because that is within your working
day. That is within your 24 hrs consecutive beginning each day at the same time for the first hr of work.
Plus NSD which is at least 10%. The ff day your regular working day begins at 11 na.

What is the consequence of that? Consequence is compressed work week program by DOLE. Illegal na.
eg mon-thurs but u work 10 hrs. 40 hr workweek gihapon. What is wrong about that? U are offsetting
undertime with ot. Di ka pakita sa Friday but OT ka all the other days. That is prohibited by law. Bec. You
trade OT poay for straight time pay. Your rate of pay for above 8 hrs is more than your straight time pay
for 8 hrs of work. Art 88 you cannot offset undertime with overtime unless the LC is amended. Maski
muinogn pa ka na the workers all agrred. Can you waive labor standard rights in the forward direction? U
cannot. That is contrary to public policy. That is why theres an 8hr labor law. Until u amend all these
provisions, compressed work week cannot be instituted. Any of these employers are really risking suits
from their ees. Labor standards cannot be waived, waivable only when it has been reduced to a money
claim before the LA.

When can u be made to do OT? Under the grounds provided for by law --natl emergency, calamity, work
necessary done to machines, work with perishable goods, other analogous cicrum. Then u can be made
to do OT and OT rates.

Stop 37:37