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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.
b. Work from
10:00 pm to
6:00 am
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
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
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
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]
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
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
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
SILP
Philippines vs NLRC,
1998)
j.
Service
Charges
employees.
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
l.
Retirement
Benefits
(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
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.
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.