LABOR STANDARDS
Refers to
the minimum requirements prescribed by existing laws, rules and regulations and
other issuances relating wages, hours of work, cost of living allowances and
other monetary and welfare benefits, including those set by occupational safety
and health standards.
1.
8 Hour Work (shall not exceed)
Hours
worked shall include:
1. All time during which an employee is
required
Ø to be on duty
Ø to be at a prescribed workplace and
2. All time during which an employee is
suffered or permitted to work.
· Rest periods of short duration during
working hours shall be counted as hours worked.
2.
Meal Pay
3.
Holiday Pay
Except: Retail and service establishments regularly employing less than
10 workers
Includes: Employee who is paid by results and she works in a service establishment
employing more than 10 persons shall be paid holiday pay. (Sec. 8(b), Rule IV,
Book III, IRR’s)
Regular
Holidays
1. New
Years day - January 1
2. Maundy
Thursday - Movable Date
3. Good
Friday - Movable Date
4. Eidul
Fitr - Movable Date
5. Araw
ng Kagitingan - Movable Date nearest
April 9
6. Labor
day - Monday nearest
May 1
7. Independence
day - Monday nearest June 12
8. National
heroes day - Last Monday of August
9. Bonifacio
day - Monday nearest November
30
10. Christmas
day - December 25
11. Rizal
day - Monday nearest
December 30
Nationwide Special Holidays
1. All
Saints Day - November 1
2. Last
Day of the Year - December 31
3. Ninoy
Aquino Day - Monday nearest August
21
· If required to work on reg. holidays
= regular rate x
· To receive holiday pay, the EE
should not have been absent without pay on the working day preceding the
regular holiday. (Azucena)
· A legal holiday falling on a Sunday
creates no legal obligation for the ER to pay extra to the EE who does not work
on that day, aside from the usual holiday pay, to its monthly-paid employee.
(Wellington vs. Trajano)
4.
Premium Pay
Is additional compensation
for work rendered by the employee on days normally he should not be working.
5.
Weekly Rest Period
· It shall be for the duty of every
employer, whether operating for profit or not, to provide employee a rest
period of not less than 24 consecutive hours after every 6 consecutive normal
working days.
· The employer shall determine and
schedule the weekly rest day of his employees, however, the employer shall
respect the preference of employees as to their weekly rest day when such
preference is based on religion grounds.
Where however the choice of the employees
as to their rest day based on religious grounds will inevitably result in serious
prejudice or obstruction to the operation of the undertaking, the employer may
so schedule the weekday rest day of their choice at least 2 days in a month. (Sec. 4, Rule III, Book III, IRR’s)
When ER may require
Work on rest day [D U A - P N A] (Art. 92)
a. In case of actual or impending
emergency caused by serious accident, fire, flood, typhoon, earthquake,
epidemic, or other Disaster or
calamity to prevent loss of life, or imminent danger to public safety.
b. In case of Urgent work, to avoid serious loss which the ER would otherwise
suffer;
c. In the event of Abnormal pressure of work due to
special circumstances, where the ER cannot ordinarily be expected to resort to
other measures;
d. To prevent or damage to Perishable goods;
e. Where the Nature of work requires continuous operations and stoppage of the
work may result in irreparable injury or loss to the ER; and
f. Analogous
(avail of favorable weather) or similar circumstances
How much is a worker entitled if he works on a
rest day?
§ Scheduled rest day – additional
compensation of at least 30% of his regular wage.
§ Scheduled rest day which is a
non-working holiday – entitled to additional compensation of at least 50% of
his regular wage.
§ Scheduled rest day which is a
regular holiday – entitled to additional compensation of at least 30% of his
regular holiday rate of 200% based on his regular wage rate. (Sec. 4, Rule III,
Book I, IRR’s)
6.
Service Incentive Leave
Except
:
a. Those
enjoying vacation leave with pay of at least 5 days.
b. Those employed in establishments
regularly employing less than 10 workers
c. Exempt establishments.
·
can be
converted to cash
·
5 days
incentive leaves with pay for at least 1 year of service.
The term ‘at least 1 year of service’ shall mean service
within 12 months, whether continuous or broken, reckoned from the date the EE
started working, including authorized absences and paid regular holidays unless
the working days in the establishment as a matter of practice or policy, or
that provided in the employment contract are less than 12 months, in which case
said period shall be considered as 1 year. (Sec.
3, Rule V, Book III, IRR’s)
7.
Night Shift Deferential
Every EE shall be paid night shift differential
of not less than 10% of his regular wage for each hour of work performed
between 10:00 p.m. and 6:00 a.m. (Art. 86)
Except: Employer with not more than 5
employees
8.
Overtime Pay
·
Is additional compensation for
work done beyond the normal work hours on ordinary working days.
·
Regular work day – plus 25%
basic hourly rate
·
Special days, holiday or rest
day – plus 30% of the regular hourly rate on said days.
Emergency Overtime Work - Any EE may be required by the ER to perform
overtime work in any of the following cases: [WED-UPS]
a.
When the country is at War
b.
When any other national or
local Emergency has been declared
d.
When it is necessary to prevent
loss of life or property or in case of imminent Danger to the 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.
e.
When there is Urgent work to be performed on machines
and installations in order to avoid serious loss or damage to the ER or some
other cause of similar nature.
f.
When the work is necessary to
prevent loss or damage to Perishable
goods.
g.
Where the completion or
continuation of the work started before the 8th hour is necessary to prevent Serious obstruction or prejudice to the
business operations of the ER.
The EE’s refusal
to obey the order of the EE constitutes insubordination for which he may be
subjected to disciplinary action. (Alcantara)
·
Undertime work in any
particular day shall not be offset by overtime work on another day BUT not on
someday.
§ Permission given to the EE to go on leave on some other day of the
week shall not exempt the ER from paying the additional compensation required. (Art.
88)
·
For purposes of computing
overtime and other additional remuneration as required by this Chapter the
“regular wage” of an EE shall include the cash wage only, without deduction on
account of facilities provided by the ER. (Art. 90)
COVERAGE OF LABOR STANDARD
Applies to
ALL employees in all establishments and undertakings whether for profit or not.
Except the
following: (MOM –GF – WPD)
M – Managerial Employees
a. Their primary duty consists of the
management of the establishment in which they are employed or of a department
or sub-division thereof;
b. Customarily or regularly direct the
work of 2 or more employees therein;
c. Has 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 change of status of other
employees are given particular weight. [Sec 2(b), Rule I, Book III]
O – Other Offices or Members of a Managerial Staff
a. Primary duty consists of the
performance of work directly related to management policies of the employer;
b. Customarily and regularly, exercise
discretion and independent judgment;
c. Regularly directly assist a
proprietor or managerial employee or execute under general supervision work
along specialized or technical lines requiring special training, experience or
knowledge; or execute under general supervision special assignment and tasks;
and
d.
Do not devote more than 20% of their hours worked to activities which
are not directly and closely related to the performance of the work described
in the preceding paragraphs.
M – Members of the Family
of the Employer who are dependent of him for support
It refers not only to the real “immediate”
members of he family of the employer but also to those who are considered as
family members in its loose sense, that is, those who are living with the
employer and dependent on him for support
G – Government
Employee
Whether employed by the National Government or
any of its political subdivisions, including those employed in GOCC’s with
original charters. (Sec. 2, Rule I, Book III, IRR’s)
F – Field Employee
Non-agricultural EE’s who regularly perform
their duties away from the principal place of business or branch office of the ER whose actual hours
of work in the field cannot be determined with reasonable certainty (Art. 82)
W – Workers Paid by Result
Compensation computed on the basis of work
accomplished and not on time spent in accomplishing the work.
a. Paid by Task
(wholesale) – those who are compensated on the basis of the completion or
accomplishment of a certain specified task.
b. Paid by Piece – those who are compensated on the basis of units or piece of work they
produced and accomplished. The work process involved is usually repetitive and
the compensation is uniform per unit or per piece.
c. Paid Purely on Commission
P – Persons in the personal service
of another
Same as the Domestic Helper but includes not
only domestic servants or house helpers but drivers, valets and bodyguards as
well.
D – Domestic Helpers
Perform such services:
a. In the ER’s home which are usually
necessary or desirable for the maintenance or enjoyment thereof;
b. Or minister to the personal
comfort, convenience, or safety of the ER as well as the members of his ER’s
household (Sec. 2, Rule I, Book III, IRR’s)
However, house personnel hired by a ranking
company official, but paid for by the company itself, to maintain a staff house
provided for the official, are not the latter’s domestic helpers but regular
EE’s of the company. (Cadiz vs. Philippine Sinter)
13TH
MONTH PAY
All land-based employers are required to
pay all their rank-and- file employees a 13th month pay not later
than December 24 of every year.
o
1/12 of the total basic salary earned by an EE within a
calendar year.
o
To be paid only to rank-and file employees regardless of the amount
of their basic salary.
o
Paid not later than December 24.
§
To be entitled to the 13th
month pay benefit, it is imposed as a minimum service requirement that
employees, regardless of their designation or employment status and
irrespective of the method by which their wages are paid, should have worked r
at for least one (1) month during the calendar year.
§
It is possible that ½ of the
payment of 13th month pay be given to employees before the opening
of the regular school year and the other half on or before 24th day
of December of every year. The frequency of the payment of this monetary
benefit may be subject of agreement between the employer and the recognized CBA
of the employees.
§
OFW is no entitled to 13th
month pay in the absence of any provision in his employment contract granting the payment
thereof (Petroleum Shipping Limited v. NLRC, G.R. No. 148130, June 16, 2006)
§
An employee who has resigned or
whose services were terminated at any time before the time for payment of the
13th month pay is entitled to this monetary benefit proportion to
the length of time he worked during the year, reckoned from the time he started
working during the calendar year up to the time of his resignation or
termination of service.
(Monthly
Salary x # of months he worked during he year) / 12
Basic
Salary (For purposes of computing the 13th month pay)
Ø include remuneration or earnings paid by this ER for
services rendered
Ø but does not include allowances and monetary benefits which
are not considered or integrated as part of the regular or basic salary, such
as the cash equivalent or unused vacation and sick leave credits, overtime,
premium, night-differential and holiday pay, and cost-of-living allowances.
· However, these salary-related benefits should be included as
part of the basic salary in the computation of the 13th month pay if
the individual or collective agreement, company practice or policy, the same
are treated as part of the basic salary of the EE’s.
The
following are not entitled to 13th month pay:
(WPD –
G – MES)
W – Workers Paid by Result
Except:
Paid by Piece Employee
D – Domestic Helpers
P – Persons in the personal service
of another
G – Government Employee
The government and any of its political subdivisions,
including GOCC’s, except those corporations operating essentially as private
subsidiaries of the government.
M – Managerial Employees
E – Employee being paid equivalent of 13th month pay
ER’s already paying their EE’s a 13th month pay
or more in a calendar year or its equivalent at the time of this issuance.
The term “its
equivalent” … shall include Christmas bonus, mid-year bonus, cash bonuses
and other payments but shall not include cash and stock dividends, cost of
living allowances and other allowances regularly enjoyed by the EE, as well as
non-monetary benefits. Where an ER pays less than required 1/12th of
the EE’s basic salary, the ER shall pay the differences.
S – Supervisory Employee
Have the following
duties and functions:
a.
Assist the department
superintendent in various aspects of management such as in the planning of
systems and procedures;
b.
Recommends disciplinary action
against erring subordinates or promotion of deserving personnel, train and
guide subordinates;
c.
Communicate and coordinate with
other supervisors;
d.
Recommend measures to improve
work method; and
e.
Other related tasks as may be
assigned by his immediate superior.
They discharge duties and responsibilities which
qualify them as members of the managerial staff.
A distressed ER may qualify for
exemption for the 13th month pay if there is prior authorization
from the DOLE. (Dentech vs. NLRC)