III.

Hours of Work (found in Title I, Book Three, Chapter I of the LC)

A. Coverage Art. 82 Coverage. The provisions of this Title shall apply to
employees in all establishments and undertakings whether for profit or
not, but not to government employees, managerial employees, field
personnel, members of the family of the employer who are dependent on
him for support, domestic helpers, persons in the personal service of
another, and workers who are paid by results as determined by the
Secretary of Labor in appropriate regulations.
As used herein, "managerial employees" refer to those whose
primary duty consists of the management of the establishment in which
they are employed or of a department or subdivision thereof, and to
other officers or members of the managerial staff.
"Field personnel" shall refer to non-agricultural employees who
regularly perform their duties away from the principal place of business
or branch office of the employer and whose actual hours of work in the
field cannot be determined with reasonable certainty.
Article 83. Normal hours of work. The normal hours of work of
any employee shall not exceed eight (8) hours a day.
Health personnel in cities and municipalities with a population of
at least one million (1,000,000) or in hospitals and clinics with a bed
capacity of at least one hundred (100) shall hold regular office hours
for eight (8) hours a day, for five (5) days a week, exclusive of time
for meals, except where the exigencies of the service require that such
personnel work for six (6) days or forty-eight (48) hours, in which case,
they shall be entitled to an additional compensation of at least thirty
percent (30%) of their regular wage for work on the sixth day. For
purposes of this Article, "health personnel" shall include resident
physicians, nurses, nutritionists, dietitians, pharmacists, social
workers, laboratory technicians, paramedical technicians,
psychologists, midwives, attendants and all other hospital or
clinic personnel.
Art. 84. HOURS WORKED Hours worked shall include (a) all time during
which an employee is required to be on duty or to be at a prescribed
workplace, and (b) all time during which an employee is suffered or
permitted to work.
Restperiodsofshortdurationsduringworking hoursshallbecountedashoursworked.

IMPLEMENTING

RULES

OF

BOOK

III:

Rule

Sec.5.Waitingtime (a)Waitingtimespentbyanemployeeshallbeconsideredasworkingtimeifwaiting
is an integral part of his work or the employee is required or engaged by the employer to wait.

(b)Anemployeewhoisrequiredtoremainoncallinthe

employer

spremisesorsoclosetheretothathe

cannotusethetimeeffectivelyandgainfullyforhisownpurposeshallbeconsideredasworkingwhileon
call.Anemployeewhoisnotrequiredtoleaveworkathishomeorwithcompanyofficialswherehemaybe
reachedisnotworkingwhileoncall.

The normal hours of work of any employee shall not exceed eight (8) hours
a day.
Whichincludes:
1.Alltimeduringwhichanemployeeisrequiredtobe ondutyortobeataprescribed
workplace.
2. All the time during which an employee is suffered or permitted to work.
3.
Rests periods of short duration during working hours.
4. Meal period of less than 20 minutes, since it becomes only a rest period and thus
considered

as

working

time.
5.Thereasonabletimetowithdrawtheirwagesfromthebankfacilityifdoneworkinghours,
ifpaymentofwagesisthroughbanks,ATMorbycheck.
AttendanceduringSeminars:
Notcompensableif:
1. Attendanceisoutsideemployeesregularworkinghours
2. Employeeisnotworkproductive
3. Attendance

is

voluntary

B. Excluded Employees
DO No. 65-04 series of 2004
Chapter

Hours

of

Work
SECTION15.HoursofWorkofaWorkingChild Thefollowinghoursofworkshallbe
observedforanychildallowedtoworkunderRepublicActNo.9231andtheseRules:
(a)Forachildbelow15yearsofage,thehoursofworkshallnotbemorethantwenty20
hoursaweek,providedthattheworkshallnotbemorethanfourhoursatanygivenday;
(b)Forachild15yearsofagebutbelow18,thehoursofworkshallnotbemorethaneight
hoursaday,andinnocasebeyond40hoursaweek;and
(c)Nochild

below15yearsofage

shallbeallowedtoworkbetweeneighto

clockinthe

eveningandsixoclockinthemorningofthefollowingdayandnochild15yearsofagebut
below18shallbeallowedtoworkbetweentenoclockintheeveningandsixoclockinthe

morningofthefollowingday. Sleepingtimeaswellastraveltimeofachildengagedin
publicentertainmentorinformationfromhis/herresidencetohis/herworkplaceshallnotbe
includedashoursworkedwithoutprejudicetotheapplicationofexistingrulesonemployees
compensation.

Manual of Regulations for Private Higher Education of 2008 (CHED

MemorandumCircularNo.40,seriesof2008)

Section120.NormalHoursofWork:AcademicTeachingPersonnelOverload. Inaccordancewith
Article83oftheLaborCodeofthePhilippines,asamended,thenormalhoursofworkofschool
personnelshallnotexceedeight(8)hoursaday.Anyworkdoneinadditiontotheeight(8)daily
workshallconstituteovertimework.
Thenormalhoursofworkofteachingoracademicpersonnelshallbebasedontheir normal
regularteachingloads.Suchnormalorregularteachingloadsshallbebasedinaccordancewiththe
policies, rules and standards prescribed by the Commission. Any teaching load in excess of the
normalorregularteachingloadshallbeconsideredasoverload.Overloadpartakesofthenatureof
temporaryextraassignmentandcompensationthereforeshallbeconsideredasanoverloadhonorarium
ifperformedwithinthe8hourworkperiodanddoesnotformpartoftheregularorbasicpay.Overload
performedbeyondtheeighthourdailyworkisovertimework.
Asusedherein,termregularorbasicpay meansallremunerationorearningspaidbytheinstitutionto
itspersonnelforservicesrenderedonnormalworkingdaysandhoursbutdoesnotincludecostofliving
th
allowances,profitsharingpayments,premiumpayments,honoraria,13 monthpayorothermonetary

benefits which are not considered as part of or integrated into the regular wage/salary of school
personnel.
Overloadisessentiallytemporaryarrangementresortedtowhenthereisnofacultyavailabletoteach
thesubject/courseaspartofhis/herregularteachingload.

2010RevisedManualofRegulationsforPrivateSchoolsinBasicEducation
(DepEdOrderNo.88,seriesof2010)
Section93.RegularHoursandTeachingHours. Theregularhoursofworkofschoolpersonnelinall
privateschoolsshallnotexceedeighthoursaday.
TheNormalteachinghoursinthedifferentlevelsofinstructionshallbeissuedthroughregulationby
theSecretaryonthebasisofcourserequirementsandthemaximumloadofteachingpersonnel.

RA10361(DomesticWorkersActorBatasKasambahay)
SEC.20.DailyRestPeriod. Thedomesticworkershallbeentitledtoanaggregatedaily
restperiodofeight(8)hoursperday.
SEC.21.WeeklyRestPeriod. Thedomesticworkershallbeentitledtoatleasttwenty
four(24)consecutivehoursofrestinaweek.Theemployerandthedomesticworkershall
agreeinwritingonthescheduleoftheweeklyrestdayofthedomesticworker:Provided,
Thattheemployershallrespectthepreferenceofthedomesticworkerastotheweeklyrestday
whensuchpreferenceisbasedonreligiousgrounds.Nothinginthisprovisionshalldeprivethe
domesticworkerandtheemployerfromagreeingtothefollowing:
(a) Offsetting a day of absence with a particular rest day;
(b) Waiving a particular rest day in return for an equivalent daily rate of pay;(c)
Accumulatingrestdaysnotexceedingfive(5)days;or(d)Othersimilararrangements.
DomesticWorkersorKasambahaysworkfor16hours/day,6days/week.

C. Normal Hours of Work ART. 83. Normal hours of work. - The normal hours
of work of any employee shall not exceed eight (8) hours a day.
D. Overtime Work and Overtime Pay
Labor

Code

Article87.OvertimeWork. Workmaybeperformedbeyondeight(8)hoursadayprovidedthatthe
EEispaidfortheovertimeworkanadditionalcompensationequivalenttohis regularwageplusat
least25%thereof.Workperformedbeyondeighthoursonaholidayorrestdayshallbepaidan
additionalcompensationequivalenttotherateofthefirsteighthoursonaholidayorrestday
plusatleast30%thereof.

Implementing

Rules

of

Book

III,

Rule

SECTION8.Overtimepay. AnyemployeecoveredbythisRulewhoispermittedorrequiredto
workbeyondeight(8)hoursonordinaryworkingdaysshallbepaidanadditionalcompensationforthe
overtimeworkintheamountequivalenttohisregularwageplusatleasttwentyfivepercent(25%)
thereof.
SECTION 9. Premium and overtime pay for holiday and rest day work. (a) Except employees
referredtounderSection2ofthisRule,anemployeewhoispermittedorsufferedtoworkonspecial
holidaysoronhisdesignatedrestdaysnotfallingonregularholidays,shallbepaidwithanadditional
compensationaspremiumpayofnotlessthanthirtypercent(30%)ofhisregularwage.Forwork
performedinexcessofeight(8)hoursonspecialholidaysandrestdaysnotfallingonregularholidays,
anemployeeshallbepaidanadditionalcompensationfortheovertimeworkequivalenttohisratefor
thefirsteighthoursonaspecialholidayorrestdayplusatleastthirtypercent(30%)thereof.
(b) Employeesof publicutilityenterprisesaswellasthoseemployedinnonprofitinstitutionsand
organizations shall be entitled to the premium and overtime pay provided herein, unless they are
specifically excluded from the coverage of this Rule as provided in Section 2 hereof.
(c) Thepaymentofadditionalcompensationforworkperformedonregularholidaysshallbegoverned
byRuleIV,BookThree,oftheseRules.

NationalShipyardandSteelCorporationvs.CIR3SCRA890[1961]
DEFINITION
Overtimecompensationisadditionalpayforserviceorworkrenderedorperformedinexcessof8
hoursadaybyemployeesorlaborersinemploymentcoveredbyeighthourlaborlaw(nowArt87)
andnotexemptfromitsrequirements.Itiscomputedbymultiplyingtheovertimehourlyratebythe
numberofhoursworkedinexcessofeight.
PNBvs.PEMAandCIR115SCRA507(1982)
RATIONALE
Verily, there can be no other reason than that he is made to work longer than what is
commensuratewithhisagreedcompensationforthestatutorilyfixedorvoluntarilyagreedhoursof
laborheissupposedtodo.Whenhedoesspendadditionaltimetohiswork,theeffectuponhimis
multifaceted,heputsinmoreeffort,physicaland/ormental;heisdelayedingoinghometohis
familytoenjoythecomfortsthereof;hemighthavenotimeforrelaxation,amusementorsports;he
mightmissimportantprearrangedengagements,etc.

Itisthustheadditionalwork,labororserviceemployedandtheadverseeffectsjustmentionedof
hislongerstayinhisplaceorworkthatjustifyandaretherealreasonsfortheextracompensation
thatiscalledovertimepay.
BisigngManggagawangPhilipineRefiningCo.vs.PhilippineRefiningCo.,Inc.GRL27761
09/30/81
OVERTIMERATEBASEDONREGULARWAGE
ThetermREGULARBASEPAYexcludesmoneyreceivedbyanemployeeindifferentconcepts,
suchasChristmasbonusandotherfringebenefits.ThephraseREGULARBASEPAYisclear,
unequivocalandrequiresnointerpretation.Itmeansregularbasicpayandnecessarilyexcludes
moneyreceivedindifferentconceptssuchasChristmasbonusandotherfringebenefits.
CaltexPhilippinesvs.CIRGR3523911/03/86
Inthecomputationofovertimepay,thepremiumpayforworkdoneonSundays,holidaysandat
night and other fringe benefits which are occasionally, not regularly, received and not by all
employees,SHOULDNOTBEADDEDTOTHEBASICPAY.Suchinclusionintotheregularor
basic pay militates against the basic rationale of overtime pay, which is simply the extra
compensationfortheadditionalworkdonebeyondthatcontemplatedintheemploymentcontract.
Hence,whenadditionalpayisgivenforanyotherpurpose,itisillogicaltoincludethesameasthe
basisforthecomputationofovertimepay.
ManilaRailroadCo.vs.CIRNo.L461407/31/42
Anexpressinstructionfromtheemployertotheemployeetorenderovertimeworkisnotrequired
fortheemployeetobeentitledtoovertimepay;itissufficientthattheemployeeispermittedor
sufferedtowork.
Neitherisanexpressapprovalbysuperioraprerequisitetomakeovertimeworkcompensable.If
theworkperformedwasnecessaryorthatitbenefitedthecompanyorthattheemployeecouldnot
abandonhisworkattheendofthiseighthourworkbecausetherewasnosubstitutereadytotake
his place and he performed overtime services upon the order of his immediate superior;
notwithstandingthefactthattherewasastandingcirculartotheeffectthatbeforeovertimework
maybeperformedwithpay,theapprovalofthecorrespondingdepartmentheadshouldbesecured,
such overtime services are compensable in spite of the fact that said overtime services were
renderedwithoutthepriorapprovalofthedepartmenthead

EXCEPTIONS:
Article 89. EmergencyOvertime Work. Anyemployee maybe required by the employer toperform
overtimeworkinanyofthefollowingcases:
(a)WhenthecountryisatwarorwhenanyothernationalorlocalemergencyhasbeendeclaredbyCongress
ortheChiefExecutive;
(b)Whenitisnecessarytopreventlossoflifeorpropertyorincaseofimminentdangertopublicsafetydue
to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon,
earthquake,epidemicorotherdisasterorcalamity;

(c)Whenthereisurgentworktobeperformedonmachines,installationorequipment,inordertoavoid
seriouslossordamagetotheemployerorsomeothercauseofsimilarnature;
(d)Whentheworkisnecessarytopreventlossordamagetoperishablegoods;
(e)Wherethecompletionorcontinuationoftheworkstartedbeforethe8thhourisnecessarytoprevent
seriousobstructionorprejudicetothebusinessoroperationsoftheemployer.
AnyemployeerequiredtorenderovertimeworkunderthisArticleshallbepaidadditionalcompensation
requiredinthisChapter.

COMPULSORYOVERTIMEWORK
Article89enunciatesthesituationswheretheemployercanlegallycompelhisworkerstorender
overtimework.Theemployershouldpayhisworkerswhorenderovertimeworktheappropriate
additionalovertimecompensationforsuchwork.
AsidefromtheinstancesmentionedinArt89,theIRRauthorizescompulsoryovertimeworkwhen
itisnecessary toavailoffavorableweatherorenvironmentalconditionswhereperformanceor
qualityorworkisdependentthereon(Sec10,RuleI,BookIII).
Incasesnotfallingwithinanyoftheenumeratedcasesorinstances,noemployeemaybemadeto
workbeyond8hoursadayagainsthiswill(Sec10,RuleI,BookIII).

DAY
Forpurposes ofArticle 87,a day (or daily)isunderstoodtobeTHE24HOURPERIOD,
WHICH COMMENCES FROM THE TIME THE EMPLOYEE REGULARLY STARTS TO
WORK.Itisnotnecessarilytheordinarycalendardayfrom12o clockmidnightto12oclock
midnightunlesstheemployeestartsworkingat12midnight,whichisunlikelyinwhichcasethe
startofthe24hourperiodincomputinghisworkdaycoincideswiththestartofthecalendarday
(likeMonday,Tuesday,etc.)from12oclockmidnightto12oclockmidnightunlesstheemployee
startsworkingat12midnight,inwhichcasethestartofthe24hourperiodincomputinghiswork
daycoincideswiththestartofthecalendarday.Thus,ifanemployeeregularlyworksfrom8:00am
to4:00pm,theworkdayofsuchemployeeisfrom8:00amto8:00amthefollowingday.Inother
words,theperiodfrom9:00amto4:00pmistheregularworkinghoursorshiftoftheemployee
whiletheperiodfrom8:00amto8:00amthefollowingdayishisworkday.Anyworkinexcessof
eight hours within the twentyfourhour period is considered as overtime work regardless of
whethertheworkcoverstwocalendardays.Conversely,anyworkinexcessofeighthoursnot
fallingwithinthetwentyfourhourperiodisnotconsideredasovertimework.
Anyworkinexcessof8hourswithinthe24hourperiodisconsideredasovertimeworkregardless
ofwhethertheworkcoverstwocalendardays.
Theminimumworkinghoursfixedbytheactneednotbecontinuoustoconstituteaslegalworking
day of8hoursaslongasthe8hoursiswithinaworkday.
Workinexcessof8hourswithinaworkdayisconsideredasovertimeregardlessofwhetherthisis
performedinaworkshiftotherthanatwhichtheemployeeregularlyworks.

BrokenHours ofWork. Theminimum normalworkinghoursfixedbytheActneednotbe

continuoustoconstituteasthe legalworkingday ofeighthoursaslongastheeighthoursis
withinaworkday.Forexample,anemployeemayberequiredtoworkfourhoursinthemorning
andanotherfourhoursintheeveningofthesameworkdaytocompleteaneighthourworking
period.ThefourhoursworkintheeveninginthiscaseisnotovertimeworkundertheAct.
WorkinDifferentShiftsinaWorkDay. Workinexcessofeighthourswithinaworkdayis
consideredasovertimeregardlessofwhetherthisisperformedinaworkshiftotherthanatwhich
theemployeeregularlyworks.Forexample,asituationmayhappeninanestablishmentwhich
operates24hoursadaywhenaworkertakesashiftofanotherwhoisabsent.Forinstance,aworker
whoseregulartourofdutyisfrom10:00pmto6:00amthefollowingdayisaskedtotaketheplace
ofanotherwhoseworkingshoursarefrom2:00pmto10:00pm,thesecondshiftisovertimework
ifthisisrenderedaftercompletinghisregulartourofdutysincethesecondshiftisstillwithinhis
workdayfrom10:00pmto10:00pm.
i. Undertime not offset by overtime Article 88. Undertime not offset by
overtime. Undertime work on any particular day shall not be offset by
overtime work on any other day. Permission given to the employee to go
on leave on some other day of the week shall not exempt the employer
from paying the additional compensation required in this Chapter.
Whereaworkerincursundertimehoursduringhisregulardailywork,saidundertimehours
shouldnotbeoffsetagainsttheovertimehours.Ifitwereotherwise,theunfairnesswouldbe
evidentfromthefactthattheundertimehoursrepresentonlytheemployeeshourlyrateof
payandtheappropriateovertimepremiumsuchthat,notbeingofequalvalue,offsettingthe
undertime hoursagainsttheovertimehourswouldresultintheunduedeprivationofthe
employees overtimepremium.Thesituationisevenmoreunacceptablewheretheundertime
hoursarenotonlyoffsetagainsttheovertimehoursbutarealsochargedagainsttheaccrued
leaveoftheemployee,forunderthismethodtheemployeeismadetopaytwiceforhis
undertimehoursbecausehisleaveisreducedtothatextentwhileheismadetopayforthe
undertimehourswithworkbeyondtheregularworkinghours.Thepropermethodshouldbe
todeducttheundertimehoursfromtheaccruedleavebuttopaytheemployeetheovertime
compensationtowhichheisentitled.Wheretheemployeehasexhaustedhisleavecredits,
hisundertimehoursmaysimplybedeductedfromhisdayswage,butheshouldstillbepaid
hisovertimecompensationforworkinexcessofeighthoursaday.
ThisrulinginNWSAforbidsoffsettingtheovertimeworkonthesameday,althoughwhat
Article88prohibitsisoffsettingonanotherday.Itmaybesaidthereforethattheoffsettingof
undertimeworkbyovertimework,whetheronthesameoronanotherday,isprohibitedby
jurisprudenceandbystatute.
ii. Waiver of overtime The right to overtime pay cannot be waived. The
right is intended for the benefit of the laborers and employees. Any
stipulation in the contract that the laborer shall work beyond the regular
eight hours without additional compensation for the extra hours is
contrary to law and null and void. Thus, in a case where the appellant
allegedly signed a quitclaim deed in favor of the appellee to the effect
that he was renouncing any and all kinds of claim against the appellee,

the Supreme Court held that said quitclaim deed cannot deprive the
appellant of his right to collect overtime and legal holiday wages under
the provisions of the Eight Hour Labor Law (Art 87).
In another case, the petitioner employer stressed that the employment contract of its
watchmenrequiredthemtowork12hoursaday,atcertainrateofpay,includingovertime
compensation.Rejectingthiscontention,theSupremeCourtruledthatwherethecontractof
employmentrequiresworkformorethaneighthoursatspecifiedwageperday,without
providingforafixedhourlyrateorthatthedailywagesincludeovertimepay,saidwages
cannotbeconsideredasincludingovertimecompensationrequiredundertheEighthour
LaborLaw.Therightofthelaborertoovertimecompensationcannotbewaivedexpressly
orimpliedly.

EXCEPTION
Whenthealleged waiverofovertime payis inconsideration ofbenefits andprivileges
whichmaybemorethanwhatwillaccruetotheminovertimepay,thewaivermaybe
permitted.
Inacase,itappearsthatsomelaborersofthepetitioningunionchosetoworkinthemotor
poolofthecompanyandtobepaidunderPlanAwhereintheywerebeingpaidamonthly
rateequivalentto30timestheirdailywage,inadditiontoregularsickleave,vacationleave,
andotherprivilegesofaregularemployee.Theyalsohadtheprivilegeoftaking4daysoff
withpayeverymonth,plustimeoffwithpayonsuchdayswhentheexecutiveorofficial
usingthecardoesnotneedtheirserviceofmorethan8hoursadayinlieuofovertime.The
Supreme Court held that the petitioner cannot just assume that the waiver of overtime
compensationbythedriverswhopreferredtoworkinthemotorpoolisagainstthelaw,it
appearingthatsuchwaiverwastobeinconsiderationforcertainvaluableprivilegesthey
weretoenjoy,amongthemthatofbeinggiventipswhendoingovertimework,andthere
beingnoproofthatthevalueofthoseprivilegesdidnotcompensateforsuchwork.

E. Compressed Workweek
SCHEMES (DOLE Dept.

.
NORMAL & COMPRESSED WORKWEEK
Advisory No. 2, Series of 2004)

I.PURPOSEANDCOVERAGE
ThisAdvisoryisbeingissuedtoguideemployersandworkerswhomayopttoadoptamutually
acceptablecompressedworkweek(CWW)schemesuitabletotherequirementsofthefirm.
This Advisory may be used in all establishments except those in the (1) Construction
industry; (2) health services; (3) occupations requiring heavy manual labor; or (4)
occupations or workplaces in which workers are exposed to airborne contaminants,
humancarcinogens,substances,chemicalsornoisethatexceedthresholdlimitvaluesor
tolerance levels for an eighthour workday as prescribed under existing Occupational
SafetyandHealthStandards(OSHS).
II.OBJECTIVE:

As a matter of policy, and taking into account the emergence of new technology and the
continuingrestructuringandmodernizationoftheworkprocess,theDepartmentofLaborand
Employment(DOLE)encouragesemployersandworkerstoenterintovoluntaryagreements
adoptingCWWschemesbasedonthefollowingobjectives:
1.
Topromotebusinesscompetitivenessandproductivity,improveefficiencybylower
operating costs, and reduce workrelated expenses of employees;

2.
Togiveemployersandworkersflexibilityinfixinghoursofworkcompatiblewith
business requirements and the employees need for a balanced work life; and
3.

To ensure the safety and health of employees at the workplace at all times.

Forpurposesofadministeringorenforcingexistinglawsandrulesonworkhours,overtime
compensation and other relevant labor standards, DOLE shall recognize only those CWW
schemesthathavebeenenteredintoconsistentwiththisAdvisory.
III.CONCEPTANDDEFINITION
TheLaborCodeprovidesthatthenormalworkhoursperdayshallbeeighthours.Workmay
beperformedbeyondeighthoursadayprovidedtheemployeeispaidfortheovertimework.
Ontheotherhand,thenormalnumberofworkdaysperweekshallbesixdays,oratotalof
fortyeight (48) hours based on the normal workday of eight hours. This is without
prejudicetofirmswhosenormalworkweekisfivedays,oratotalofforty(40)hours
basedonthenormalworkdayofeighthours.
ForpurposesofthisAdvisory,aCWWschemeisanalternativearrangementwherebythe
normalworkweekisreducedtolessthansixdaysbutthetotalnumberofnormalwork
hoursperweekshallremainat48hours.Thenormalworkdayisincreasedtomorethan
eight hours without corresponding overtime premium. This concept can be adjusted
accordinglyincaseswherethenormalworkweekofthefirmisfivedays.
IV.

SPECIFIC

GUIDELINES
Conditions.DOLEshallrecognizeCWWschemesadoptedinaccordancewiththefollowing:
1.
The CWW scheme is undertaken as a result of an express and voluntary
agreementofmajorityofthecoveredemployeesortheirdulyauthorizedrepresentatives.
Thisagreementmaybeexpressedthroughcollectivebargainingorotherlegitimateworkplace
mechanisms of participation such as labormanagement councils, employee assemblies or
referenda.

2.
Infirmsusingsubstances,chemicalsandprocessesoroperatingunderconditions
where there are airborne contaminants, human carcinogens or noise prolonged exposure to
whichmayposehazardstotheemployees healthandsafety, theremustbeacertification
fromanaccreditedhealthandsafetyorganizationorpractitionerorfromthefirmssafety
committeethatworkbeyondeighthoursiswithinthresholdlimitsortolerablelevelsof
exposure,

as

set

in

the

OSHS.

3.
TheemployershallnotifyDOLE,throughtheRegionalOfficehavingjurisdiction
overtheworkplace,oftheadoptionoftheCWWscheme.ThenoticeshallbeinDOLECWW
Report

Form

attached

to

this

Advisory.

Effects. A CWW scheme which complies with the foregoing conditions shall have the
followingeffects:
1.
Unlessthereisamorefavorablepracticeexistinginthefirm,workbeyondeight
hours will not be compensable by overtime premium provided the total number of hours
workedperdayshallnotexceedtwelve(12)hours.Inanycase,anyworkperformedbeyond
12 hours a day or 48 hours a week shall be subject to overtime premium.
2.
ConsistentwithArticles85oftheLaborCode,employeesunderaCWWscheme
areentitledtomealperiodsofnotlessthansixty(60)minutes.Nothinghereinshallimpairthe
rightofemployeestorestdaysaswellastoholidaypay,restdaypaysorleavesinaccordance
with law or applicable collective bargaining agreement or company practice.
3.
Adoption of the CWW scheme shall innocase result indiminutionof existing
benefits.Reversiontothenormaleighthourworkdayshallnotconstituteadiminutionof
benefits. The reversion shall be considered a legitimate exercise of management
prerogative, providedthat the employer shall give the employees prior notice of such
reversionwithinareasonableperiodoftime.

GUIDELINES ON THE ADOPTION OF FLEXIBLE WORK

ARRANGEMENTS (DOLE Dept. Advisory No. 2, Series of 2009)
I.PURPOSE
ThisAdvisoryisbeingissuedtoassistandguideemployersandemployeesintheimplementation
ofvariousflexibleworkarrangementsasoneofthecopingmechanismsandremedialmeasuresin
timesofeconomicdifficultiesandnationalemergencies.Adoptionofflexibleworkarrangements
isconsideredasabetteralternativethantheoutrightterminationoftheservicesoftheemployees
orthetotalclosureoftheestablishment.Anchoredonvoluntarybasisandconditionsmutually
acceptabletoboththeemployerandtheemployees,itisrecognizedasbeneficialintermsof
reduction of business costs and helps in saving jobs while maintaining competitiveness and
productivityinindustries.
II.CONCEPT
TheDepartmentrecognizesthedesirabilityandpracticalityofflexibleworkarrangementsthat
maybeconsideredbyemployersafterconsultationwiththeemployees,takingintoaccountthe
adverseconsequenceofthesituationontheperformanceandfinancialconditionofthecompany.
Flexible work arrangements refer to alternative arrangements or schedules other than the
traditionalorstandardworkhours,workdaysandworkweek.
Theeffectivityandimplementationofanyoftheflexibleworkarrangementsprovidedherein
shallbetemporaryinnature.

III.FLEXIBLEWORKARRANGEMENTS
Thefollowingaretheflexibleworkarrangementswhichmaybeconsidered,amongothers:
1.
CompressedWorkweekreferstoonewherethenormalworkweekisreducedtoless
thansix(6)daysbutthetotalnumberofworkhoursof48hoursperweekshallremain.The
normalworkdayisincreasedtomorethaneighthoursbutnottoexceedtwelvehours,without
correspondingovertimepremium.Theconceptcanbeadjustedaccordinglydependingonthe
normalworkweekofthecompanypursuanttotheprovisionsofDepartmentAdvisoryNo.02,
series

of

2004,

dated

December

2004.

2.
ReductionofWorkdaysrefertoonewherethenormalworkdaysperweekare
reduced but should not last more than six months.
3.
provided

RotationofWorkersrefertoonewheretheemployeesarerotatedoralternately

work

within

the

workweek.

4.
ForcedLeavereferstoonewheretheemployeesarerequiredtogoonleavefor
severaldaysorweeksutilizingtheirleavecreditsifthereareany.
5.
the

Brokentimeschedulereferstoonewheretheworkscheduleisnotcontinuousbut
workhours within the day or week remain.

6.
Flexiholidays schedule refers to one where the employees agree to avail the
holidaysatsomeotherdaysprovidedthereisnodiminutionofexistingbenefitsasaresultofsuch
arrangement.

7. Undertheseflexibleworkarrangements,theemployersandtheemployeesareencouragedto
explorealternativeschemesunderanyagreementandcompanypolicyorpracticeinordertocushion
andmitigatetheeffectofthelossofincomeoftheemployees.
IV.ADMINISTRATIONOFFLEXIBLEWORKARRANGEMENTS
Thepartiestotheflexibleworkschemesshallbeprimarilyresponsibleforitsadministration.Incase
ofdifferencesofinterpretation,thefollowingguidelinesshallbeobserved:
1.
the

Thedifferencesshallbetreatedasgrievancesundertheapplicablegrievancemechanismof

company.

2.
Ifthereisnogrievancemechanismorifthismechanismisinadequate,thegrievanceshallbe
referred

to

the

Regional

Office

which

has

jurisdiction over the workplace for appropriate conciliation.

3.
Tofacilitatetheresolutionofgrievances,employersarerequiredtokeepandmaintain,as
partoftheirrecords,thedocumentaryrequirementsprovingthattheflexibleworkarrangementwas

voluntarily

adopted.

V.NOTICEREQUIREMENT
Priortoitsimplementation,theemployershallnotifytheDepartmentthroughtheRegionalOffice
which has jurisdiction over the workplace, of the adoption of any of the above flexible work
arrangements.ThenoticeshallbeintheReportFormattachedtothisAdvisory.
TheRegionalOfficeshallconductanocularvisittovalidatewhethertheadoptionoftheflexible
workarrangementsisinaccordancewiththisissuance.

GUIDELINES IN THE IMPLEMENTATION OF FLEXIBLE WORK

ARRANGEMENTS AND THE EXEMPTION FROM THE
NIGHTWORK PROHIBITION FOR WOMEN EMPLOYEES IN THE
BUSINESSPROCESSOUTSOURCING(DOLEDept.AdvisoryNo.4,
seriesof2010)
I.PURPOSE
Inviewoftherapidtechnologicalinnovations,thecontinuingstreamliningandtransformationofthe
workprocessesbroughtaboutbytheglobalizationphenomena,thisAdvisoryisbeingissuedtoassist
andguideemployersandemployeesintheimplementationofvariousflexibleworkarrangementsand
theexemptionfromthenightworkprohibitionforwomenemployeesunderArticle130ofthe
LaborCodeofthePhilippines,asamended.The adoptionofflexibleworkarrangementsis
beingconsideredtoimprovebusinesscompetitivenessandproductivityandgiveemployersand
employeesflexibilityinfixinghoursofworkcompatiblewithbusinessrequirementsandthe
employees needforbalancedworklife.

Ontheotherhand,theexemptionfromthenightwork
prohibition is recognized under Article 131 of the Labor Code under analogous cases and
takingintoaccounttheconstitutionalmandateforequalemploymentopportunitiesandthe
rightagainstemploymentdiscrimination.
IMPLEMENTATIONOFFLEXIBLEWORKARRANGEMENTS
II.CONCEPT
Flexibleworkarrangementsrefertoalternativearrangementsorscheduleotherthanthetraditionalor
standardworkhours,workdaysandworkweek.
The effectivity and implementation of any of the flexible work arrangements shall be based on
voluntaryagreementsbetweentheemployerandtheemployees.
Theadoptionoftheflexibleworkarrangementsprovidedhereinshallinnocaseresultindiminution
ofexistingbenefitsoftheemployees.
III.FLEXIBLEWORKARRANGEMENTS
Thefollowingaretheflexibleworkarrangementswhichmaybeconsidered,amongothers:
1.
CompressedWorkweekreferstoonewherethenormalworkweekisreducedtolessthansix
(6)daysbutthetotalnumberofworkhoursof48hoursperweekshallremain.Thenormalworkday
isincreasedtomorethaneighthoursbutnottoexceedtwelvehours,withoutcorrespondingovertime

premium. The concept can be adjusted accordingly depending on the normal workweek of the
company pursuant to the provisions of Department Advisory No. 02, series of 2004, dated 2
December

2004.

2.
GlidingorFlexitimeschedulereferstoonewheretheemployeesarerequiredtocomplete
thecoreworkhoursintheestablishmentbutarefreetodeterminetheirarrivalanddeparturetime.
3.
Flexiholidaysschedulereferstoonewheretheemployeesagreetoavailtheholidaysat
someotherdaysprovidedthereisnodiminutionofexistingbenefitsasaresultofsucharrangement.
Theemployersandtheemployeesmaylikewiseexploreotheralternativeworkarrangementsunder
anyagreementandcompanypolicyorpracticeinaccordancewithexistinglawsandregulations.
IV.ADMINISTRATION
Thepartiestotheflexibleworkarrangementsshallbeprimarilyresponsibleforitsadministration.In
caseofdifferencesofinterpretation,thefollowingguidelinesshallbeobserved:
1.Thedifferencesshallbetreatedasgrievancesundertheapplicablegrievancemechanismofthe
company.

2.Ifthereisnogrievancemechanismorifthismechanismisinadequate,thegrievanceshallbe
referred

to

the

Regional

Office

which

has

jurisdiction over the workplace for appropriate conciliation.

3.Tofacilitatetheresolutionofgrievances,employersarerequiredtokeepandmaintain,aspart
of

their

records,

the

documentary

requirements

proving that the flexible work arrangement was voluntarily adopted.

EXEMPTIONFROMTHENIGHTWORKPROHIBITIONFORWOMENEMPLOYEESUNDER
ARTICLE130OFTHELABORCODE,ASAMENDED
WomenemployeesmaybeallowedtoworkduringnighttimeinaccordancewithArticle131of
the Labor Code, subject to the limitation that the female employees should not be below
eighteen(18)yearsofage.
Employersarelikewiserequired,amongothers, toprovidesafeandhealthfulworkingconditions,
andadequate/reasonablefacilitiessuchassleeping/restingquartersintheestablishment.
Pregnant women and nursing mothers may be allowed to work at night only if a competent
physician,otherthanthecompanyphysician,shallcertifytheirfitnesstorendernightwork,and
specify,inthecaseofpregnantemployees,theperiodofthepregnancythattheycansafelywork.
AnydeviationfromthelimitationsstatedaboveandthoseprovidedforundertheLaborCode,and
DepartmentCircularNo.1,Seriesof2008(PolicyGuidelinesGoverningtheOccupationalSafety
and Health of Workers in the Call Center Industry) shall be a ground for revocation of the
exemptiongrantedherein.

F. Meal Break Art. 85. MEAL PERIODS Subject to such regulations as the
Secretary of Labor may prescribe, it shall be the duty of every
employer to give his employees not less than sixty (60) minutes
time-off for their regular meals.
Underthisarticlethemealperiodshouldnotbelessthan60minutes,inwhichcaseitis
timeoffornoncompensabletime.TheImplementingRulesofBookIII,RuleI,Sec7,
allowsthemealtimetobelessthan60minutes,underspecifiedcases.Butsuchshortened
mealtime(say30minutes)shouldbewithfullpay,andofcourse,thetimewhenthe
employeecannoteat,becauseheisstillworking,shouldalsobepaid.
Theemployerisrequiredtogivehisemployeesnotlessthan60minutesor1hourfortheir
regularmealseveryday.TheLCdoesnotspecifyastowhatspecifichourofthedaythe
mealperiodaretobegiven.
The60minutemealperiodisnotcompensablebecauseduringthistime,theworkerdoes
notwork.
Toshortenmealtimetolessthan20minutesisnotallowed,ifthesocalledmealtimeis
less than 20 minutes, it becomes only a rest period, and under the same section 7, is
consideredworktime.
Q:Isitpossibletoreducethemealperiodtolessthan60minutes?Ifso,underwhat
instances?A:YES,underSection7,RuleI,BookIII.

ShortenedMealPeriod
IMPLEMENTINGRULESOFBOOKIII:RuleI
Sec.7.Everyemployershallgivehisemployees,regardlessofsex,notlessthatone(1)
hourtimeoffforregularmeals,exceptinthefollowingcaseswhenamealperiodofnot
lessthantwenty(20)minutesmaybegivenbytheemployerprovidedthatsuchshorter
mealperiodiscreditedascompensablehoursworkedoftheemployee:
(a) Wheretheworkisnonmanualworkinnatureordoesnotinvolvestrenuous
physicalexertion;
(b) Wheretheestablishmentregularlyoperatesnotlessthansixteenhoursaday;
(c) In cases of actual or impending emergencies or there is urgent work to be
performed on machineries, equipment or installation to avoid serious loss which the
employerwouldotherwisesuffer;and
(d) Where the work is necessary to prevent serious loss of perishable goods.

Coffee Break

IMPLEMENTINGRULESOFBOOKIII:RuleI
Sec.7....Restperiodsorcoffeebreaksrunningfromfive(5)totwenty(20)minutesshall
beconsideredascompensableworkingtime.Shortcoffeebreaksof520minutesare
compensable.Soiftheemployergivestheemployeesbreakinthemorningandinthe
afternoon,thistimeisconsideredcompensable.
Notethattheemployerisnotobligedbylawtogivethiscoffeebreak.
The employer can lessen the 60minute meal period into 30 minutes. And this is
compensable.NotethattheemployershallpaytheOvertimePaywheneverproper.Note
thatmealperiodscanbereducedtolessthan60minutesbutnotlessthan20minutes,andit
iscompensable.Forexample,ifthemealperiodisreducedto59minutes
Theemployercannotprohibitemployeesfromleavingthepremisesduringthemeal
periodofemployees.Thelawinfactdoesnotrequirethatthe60minutestobespentin
theemployerspremises.Thereisnolaborcodeprovisiontothiseffect.
Shortened Meal Break upon Employees Request (2004 BWC Manual on Labor
Standards)
However,theemployeesthemselvesmayrequestthattheirmealperiodbeshortenedsothat
theycanleaveworkearlierthanthepreviouslyestablishedschedule.Insuchasituation,the
shortenedmealperiodisnotcompensable.Forinstances,theestablishedworkhoursare
from 8:00 am to 5:00 pm, with 12:00 noon to 1:00 pm as meal period. So that the
employeescouldquitworkat4:30pm,theymayrequest,andmanagementmayagree,to
shortenthemealtimetothirtyminutes(12:00 12:30pm).This30minutemealtimeisnot
compensable. From 12:31 to 4:30 the employee resumes work and should be paid the
regularrate.Workafter4:30isovertime.Provided,thattheseconditionsconcur:
(a) Theemployeesvoluntarilyagreeinwritingtoashortenedmealperiodof30
minutesandarewillingtowaivetheovertimepayforsuchshortenedmealperiod;
(b) There will be no diminution whatsoever in the salary and other fringe
benefitsoftheemployeesexistingbeforetheeffectivityoftheshortenedmealperiod;
(c) Theworkoftheemployeesdoesnotinvolvestrenuousphysicalexertionand
theyareprovidedwithadequatecoffeebreaks inthemorningandafternoon;
(d) Thevalueofthebenefitsderivedbytheemployeesfromtheproposedwork
arrangementisequaltoorcommensuratewiththecompensationduethemforthe
shortenedmealperiodaswellastheovertimepayfor30minutesasdeterminedbythe
employeesconcerned;
(e) Theovertimepayoftheemployeeswillbecomedueanddemandableifever
theyarepermittedormadetoworkbeyond4:30pm;and

(f) The effectivity of the proposed working time arrangement shall be of

temporarydurationasdeterminedbytheSecretaryofLaborandEmployment.

G. Idle Time; Waiting Time; Commuting Time; Travel Time whether part of
hours of work
Meal and rest period: meal break of less than one hour
shall be considered
compensable working time
Rule 1, Book Three, Omnibus Rules Implementing the Labor Code:
SECTION 3. Hours worked. The following shall be considered as
compensable hours worked:
(a) All time during which an employee is required to be on duty or to be
at the employer's premises or to be at a prescribed work place; and
(b) All time during which an employee is suffered or permitted to work.
SECTION 4. Principles in determining hours worked. The following
general principles shall govern in determining whether the time spent
by an employee is considered hours worked for purposes of this Rule:
(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.
(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.
(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.
(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.
SECTION 5. 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.
(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 work at his home or with
company officials where he may be reached is not working while on
call.

SECTION 6. Lectures, meetings, training programs. Attendance at

lectures, meetings, training programs, and other similar activities shall
not be counted as working time if all of the following conditions are
met:
(a) Attendance is outside of the employee's regular working hours;
(b) Attendance is in fact voluntary; and
(c) The employee does not perform any productive work during such
attendance.
SECTION 7. Meal and Rest Periods. Every employer shall give his
employees, regardless of sex, not less than one (1) hour time-off for
regular meals, except in the following cases when a meal period of not
less than twenty (20) minutes may be given by the employer provided
that such shorter meal period is credited as compensable hours worked
of the employee:
(a) Where the work is non-manual work in nature or does not involve
strenuous physical exertion;
(b) Where the establishment regularly operates not less than sixteen (16)
hours a day;
(c) In case 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 otherwise suffer; and
(d) Where the work is necessary to prevent serious loss of perishable
goods.
Rest periods or coffee breaks running from five (5) to twenty (20)
minutes shall be considered as compensable working time.
H. Night Work REPUBLIC ACT NO. 1015 AN ACT ALLOWING THE
EMPLOYMENT OF NIGHT WORKERS, THEREBY REPEALING ARTICLES 130
AND 131 OF PRESIDENTIAL DECREE NUMBER FOUR HUNDRED FORTY-TWO,
AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES
i. Coverage Art. 154. Coverage. This chapter shall apply to all
persons, who shall be employed or permitted or suffered to work at night,
except those employed in agriculture, stock raising, fishing,
maritime transport and inland navigation, during a period of not
less than seven (7) consecutive hours, including the interval from
midnight to five oclock in the morning, to be determined by the
Secretary of Labor and Employment, after consulting the workers
representatives/labor organizations and employers.
ii. Meaning of Night Worker means any employed person whose work
requires performance of a substantial number of hours of night
work which exceeds a specified limit. This limit shall be fixed by the

Secretary of Labor after consulting the workers representatives/labor

organizations and employers
iii. Mandatory Facilities Art. 156. Mandatory Facilities. Suitable firstaid facilities shall be made available for workers performing night
work, including arrangements where such workers, where necessary, can
be taken immediately to a place for appropriate treatment. The employers
are likewise required to provide safe and healthful working conditions
and adequate or reasonable facilities such as sleeping or resting
quarters in the establishment and transportation from the work
premises to the nearest point of their residence subject to
exceptions and guidelines to be provided by the DOLE
iv. Women Night Worker Art. 158. Women Night Workers. Measures
shall be taken to ensure that an alternative to night work is available to
women workers who would otherwise be called upon to perform such work:
(a) Before and after childbirth, for a period of at least
sixteen (16) weeks, which shall be divided between the time
before and after childbirth;
(b) For additional periods, in respect of which a medical
certificate is produced stating that said additional periods are
necessary for the health of the mother or child:
(1) During pregnancy;
(2) During a specified time beyond the period, after childbirth is
fixed pursuant to subparagraph (a) above, the length of which shall be
determined by the DOLE after consulting the labor organizations and
employers.
During the periods referred to in this article:
(i) A woman worker shall not be dismissed or given notice of
dismissal, except for just or authorised causes provided for in this Code
that are not connected with pregnancy, childbirth and childcare
responsibilities.
(ii) A woman worker shall not lose the benefits regarding her
status, seniority, and access to promotion which may attach to her
regular night work position.
Pregnant women and nursing mothers may be allowed to
work at night only if a competent physician, other than the
company physician, shall certify their fitness to render night
work, and specify, in the ease of pregnant employees, the period
of the pregnancy that they can safely work.
The measures referred to in this article may include transfer to day
work where this is possible, the provision of social security benefits or an
extension of maternity leave.
The provisions of this article shall not have the effect of reducing
the protection and benefits connected with maternity leave under
existing laws.

v. Compensation Art. 159. Compensation. The compensation for night

workers in the form of working time, pay or similar benefits shall recognize
the exceptional nature of night work.
vi. Night Work Schedule Art. 161. Night Work Schedules. Before
introducing work schedules requiring the services of night workers, the
employer shall consult the workers representatives/labor
organizations concerned on the details of such schedules and the
forms of organization of night work that are best adapted to the
establishment and its personnel, as well as on the occupational
health measures and social services which are required. In
establishments employing night workers, consultation shall take
place regularly.
I. Night Shift Differential Art. 86. Night shift differential. Every employee
shall be paid a night shift differential of not less than ten percent
(10%) of his regular wage for each hour of work performed
between ten oclock in the evening and six oclock in the morning.
Rule II, Omnibus Rules Implementing the LC: SECTION 1. Coverage. This
Rule shall apply to all employees except:
(a) Those of the government and any of its political subdivisions,
including government-owned and/or controlled corporations;
(b) Those of retail and service establishments regularly
employing not more than five (5) workers;
(c) Domestic helpers and persons in the personal service of
another;
(d) Managerial employees as defined in Book Three of this
Code;
(e) Field personnel and other employees whose time and
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
SECTION 3. Additional compensation. Where an employee is
permitted or suffered to work on the period covered after his work
schedule, he shall be entitled to his regular wage plus at least twenty-five
per cent (25%) and an additional amount of no less than ten per cent
(10%) of such overtime rate for each hour or work performed between 10
p.m. to 6 a.m.
SECTION 4. Additional compensation on scheduled rest day/special
holiday. An employee who is required or permitted to work on the
period covered during rest days and/or special holidays not falling on
regular holidays, shall be paid a compensation equivalent to his regular
wage plus at least thirty (30%) per cent and an additional amount of not

less than ten (10%) per cent of such premium pay rate for each hour of
work performed.
SECTION 5. Additional compensation on regular holidays. For
work on the period covered during regular holidays, an employee shall be
entitled to his regular wage during these days plus an additional
compensation of no less than ten (10%) per cent of such premium rate
for each hour of work performed.
SECTION 6. Relation to agreements. Nothing in this Rule shall
justify an employer in withdrawing or reducing any benefits, supplements
or payments as provided in existing individual or collective agreements
or employer practice or policy.

J. Part Time Work The law sets a maximum number of hours but does not
prohibit work done less than eight hours. Thus, part-time work is
allowed and pay corresponding to the actual hours worked will be
paid.
How much should a part-time worker earn?
The wage and benefits of a part-time worker are in proportion to
the number of hours worked. Assuming that he should be earning
P400.00 for an eight-hour work, he shall then get P200.00 for work done
in four hours.
K. Contract for a Piece of Work ARTICLE 1713, NCC:
Bycontractforapieceofwork,the
contractorbindshimselftoexecuteapiece of
workfortheemployer,inconsideration
ofacertainpriceorconsideration.The
contractor
mayeitheremployonlyhislabor, skill,oralsofurnishesthematerials.

PRINCIPALINDIVIDUALINDEPENDENTCONTRACTOR(FREE
ARTISAN)RELATIONSHIP
Theprincipalselectsthecontractor.Thecontractoriscompensatedforservicesrendered.
Thecontractorisnotunderthedisciplineoftheprincipal.Thedistinctionsaysthataside
fromengaginginthebusinessseparatelydistinctfromtheprincipal,theperformedjob,
work,orservicesisaccordingtohisownmeansandmethodsfreefromthecontroland
directionoftheprincipalexceptastotheresultsthereof.
The definition says that aside from engaging in a business separately distinct from the
principal,toperformjob,workorservice,accordingtohisownmeansandmethods,free
fromcontrolanddirectionoftheprincipalexceptastotheresultsthereof.
ContractormaybeIndividual,CorporateJuridicalEntity noneedofprotectionfrom
laborcodebecausetheyearnbetter.