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THE PHILIPPINES
Reporter:
Rodrigo G. Buenaventura
Ph.D. BA Student
The Labor Code
The Labor Code of the Philippines
(Presidential Decree No. 442, as amended) is
the legal code governing employment
practices and labor relations in the
Philippines. It was enacted on Labor
day, May 1, 1974 by Late President of
the Philippines Ferdinand Marcos in the
exercise of his then extant legislative
powers.
Parts of the Labor Code
Book 1: Pre-Employment (with the Preliminary
Title)
June 3, 2012:
Old COLA was Integrated to Basic Wage:
P22 + P404 = New Basic Wage: P426
New COLA: P20
New Minimum Wage: P426 + P20 = P446
November 1, 2012:
Add P10 to New COLA: P30 + P426 = P456
Minimum Wage (NCR)
Rule (June 3/November 1, 2012) :
BW: P426 + COLA: P20/P30 = MW: P446/P456
Exception:
BW: P389 + COLA: P20/P30 = MW: P409/P419
Agriculture;
Private Hospitals with bed capacity of 100 or less;
Retail and Service Establishments with 15
workers or less;
Manufacturing Establishments with 9 workers or
less.
Minimum Wage
Other Exceptions:
Government Employees under Civil Service Law.
Domestic Workers under RA 10361 (MW:
P2,500/P2,000/P1,500 per month).
Personal Assistants, including family drivers.
Barangay Micro Business Enterprises (BMBEs)
under DTI and LGU guidelines.
Distressed Establishments, but only for a period
not exceeding 1 year under NWPC guidelines.
Minimum Wage
Special Circumstances:
Reduced working hours, i.e Underemployed or
those working less than 8-hours of work per day.
Reduced working days, i.e. Shortened workweek.
Workers paid by results i.e. They should be paid
not less than the minimum wage rate
proportionate to the number of working hours
they actually rendered.
Apprentices, Learners, and (unqualified) Disabled
Workers: 75% of minimum wage.
Rules on Wages
What is Wage Distortion?
What is Across-the-Board Wage Increase?
Exceptions
Government employees subject to Civil Service
Law;
Managerial employees and managerial staff;
Persons in the personal service of another;
Workers paid by results;
Field personnel and other employees whose time
and performance are unsupervised; and
Dependent family members of the Employer.
When Is Overtime Work
Valid & Must Be Paid?
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Persons in the personal service of another;
Workers paid by results;
Field personnel and other employees whose time and
performance are unsupervised;
Dependent family members of the Employer; and
Retail/Service Establishment regularly employing less than
10 workers.
Rules on Holiday Payment
Employees are entitled when they are present or on
leave with pay on the preceding workday.
Employees are NOT entitled if absent or on leave
without pay on the preceding workday, unless they
work on such Regular Holiday, in which case they
are entitled to 200%.
When preceding day is non-work day or rest day, the
Employee is entitled, if he worked on the day before
such non-work day or rest day.
In case of successive Regular Holidays i.e. Holy
Week, the Employee shall NOT be entitled to the
successive Regular Holidays if he is absent or on
leave without pay on the preceding work day
(Wednesday), unless he worked on the first Holiday.
Holiday Pay Rules continued
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Househelpers and persons in the personal service of
another;
Workers paid by results;
Field personnel and other employees whose time and
performance are unsupervised;
Dependent family members of the Employer.
Night Shift Differential Pay
NSD Pay refers to the the additional compensation
for each hour of work performed between 10PM and
6AM.
Exceptions
Government employees subject to Civil Service Law;
Managerial employees and managerial staff;
Persons in the personal service of another;
Field personnel and other employees whose time and
performance are unsupervised;
Workers paid by results;
Dependent family members of the Employer; and
Retail/ Service Establishment employing less than 10
workers.
Service Charges
Employees are entitled to a share from the Service
Charge being collected by the Employer from his
customers.
Rank-and-file employees share: 85%
Managements share: 15%.
Rank-and-file employees shall receive equal share.
If abolished, the share of the Rank-and-file employees
shall be considered integrated to their wages.
If the Employer doesnt collect Service Charge, the
pooled tips shall be treated the same way as Service
Charge.
Art. 287. Retirement Pay
Retirement age: 60 to 65 years old.
Employee must also have worked for at least 5 years
for the Employer.
Rate: Equivalent to 22.5 days salary for every year
of service payable by Employer.
Distinct from the Retirement Benefits from SSS.
Excluded: Government employees; and Retail/
Service/ Agricultural Establishments employing not
more than 10 workers.
Separation Pay
Employees terminated by the Employer on the basis
of Authorized Causes are entitled to Separation Pay.
Exceptions:
Exceptions: