Beruflich Dokumente
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LABOR STANDARDS
LABOR STANDARDS sets out the minimum terms, conditions, and
benefits of employment that employers must provide or comply with
and to which employees are entitled as a matter of legal right.
GENERAL PROVISIONS
Art. 3. Declaration of basic policy.
The State shall afford protection to labor, promote full employment,
ensure equal work opportunities regardless of sex, race or creed and
regulate the relations between workers and employers. (A-P-E-R)
1987 Constitution
Article II, Section 18. The State affirms labor as a primary social
economic force. It shall protect the rights of workers and promote their
welfare.
Article XIII, Section 3. The State shall afford full protection to labor,
local and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.
SEVEN BASIC RIGHTS OF WORKERS GUARANTEED BY THE
CONSTITUTION:
1)
2)
3)
4)
5)
6)
7)
Right to organize
To conduct collective bargaining or negotiation with
management
To engage in peaceful concerted activities, including strike
in accordance with law
To enjoy security of tenure
To work under humane conditions
To receive a living wage
To participate in policy and decision-making processes
affecting their rights and benefits as may be provided by
law.
Rights of Employer:
1)
2)
3)
4)
Right
Right
Right
Right
to
to
to
to
Return of Investments
prescribe rules
select employees
transfer or discharge employees
Law
Contract or Collective Bargaining Agreement
General principles of fair play and justice
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Labor code may apply even if the parties are not employers and
employees of each other, except for employment benefits.
Water districts are quasi-public corporations whose
employees belong to the civil service, hence, the dismissal of
those employees shall be governed by the civil service law, rules and
regulations (Tanjay Water District v Gabaton).
Having been created under the general corporation law instead of a
special charter, we hold that the respondent is a private and not a
governmental corporation. Petitioners are employees in the private
sector, hence entitled to the benefits of Rep. Act No. 7641 (Postigo v
Philippine TB Society).
Where the claim to the principal relief sought is to be resolved
not by reference to the Labor Code or other labor relations statute or a
collective bargaining agreement but by the general civil law, the
jurisdiction over the dispute belongs to the regular courts of
justice and not to the Labor Arbiter and the NLRC (San Miguel v
NLRC).
A corporate officers dismissal is always a corporate act, or an intracorporate controversy which arises between a stockholder and a
corporation. Given Locsins status as a corporate officer, the RTC, not
the Labor Arbiter or the NLRC, has jurisdiction to hear the legality of
the termination of his relationship with Nissan (Locsin v Nissan
Lease).
PRE-EMPLOYMENT
Art. 12. Statement of objectives. It is the policy of the State:
(P-P-F-R-S-I-)
To promote and maintain a state of full employment through improved
manpower training, allocation and utilization;
To protect every citizen desiring to work locally or overseas by
securing for him the best possible terms and conditions of
employment;
To facilitate a free choice of available employment by persons seeking
work in conformity with the national interest;
To facilitate and regulate the movement of workers in conformity with
the national interest;
To regulate the employment of aliens, including the establishment of a
registration and/or work permit system;
To strengthen the network of public employment offices and
rationalize the participation of the private sector in the recruitment and
placement of workers, locally and overseas, to serve national
development objectives;
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(b) disciplinary action cases and other special cases, which are
administrative in character, involving employers, principals, contracting
partners and Filipino migrant workers. (EPPW)
REPUBLIC ACT NO. 8042
Migrant Workers and Overseas Filipinos Act of 1995
SEC. 10. MONEY CLAIMS. - Notwithstanding any provision of law to
the contrary, the Labor Arbiters of the National Labor Relations
Commission (NLRC) shall have the original and exclusive jurisdiction
to hear and decide, within ninety (90) calendar days after filing
of the complaint, the claims arising out of an employer-employee
relationship or by virtue of any law or contract involving Filipino
workers for overseas deployment including claims for actual,
moral, exemplary and other forms of damages.
The
liability
of
the
principal/employer
and
the
recruitment/placement agency for any and all claims under
this section shall be joint and several. This provisions shall be
incorporated in the contract for overseas employment and shall be a
condition precedent for its approval. The performance bond to be filed
by the recruitment/placement agency, as provided by law, shall be
answerable for all money claims or damages that may be awarded to
the workers. If the recruitment/placement agency is a juridical
being, the corporate officers and directors and partners as the
case may be, shall themselves be jointly and solidarily liable
with the corporation or partnership for the aforesaid claims
and damages.
Such liabilities shall continue during the entire period or duration of the
employment contract and shall not be affected by any substitution,
amendment or modification made locally or in a foreign country of the
said contract.
RA 8042 not only transferred from POEA to NLRC the jurisdiction over
money claims of OFWs; it even expanded the scope of such money
claim. When the jurisdiction was still with POEA, the
jurisdiction covered only money claims involving Filipino
workers for overseas employment. Now, the NLRC jurisdiction
is over money claims involving Filipino workers for overseas
deployment.
Any compromise/amicable settlement or voluntary agreement
on money claims inclusive of damages under this section shall be
paid within four (4) months from the approval of the
settlement by the appropriate authority.
In case of termination of overseas employment without just,
valid or authorized cause as defined by law or contract, the
workers shall be entitled to the full reimbursement of his
placement fee with interest of twelve percent (12%) per
annum, plus his salaries for the unexpired portion of his
employment contract or for three (3) months for every year of
the unexpired term, whichever is less.
Verily, the burden is on the employer to prove that the
termination was for a valid or authorized cause. For an
employee's dismissal to be valid, (1) the dismissal must be for a
valid cause and (2) the employee must be afforded due process
(Vinta Maritime v NLRC).
Article 282 of the Labor Code lists the following causes for
termination of employment by the employer: (1) serious
misconduct or willful disobedience of lawful orders in connection
with his or her work, (2) gross and habitual neglect of duties, (3)
fraud or willful breach of trust, (4) commission of a crime or
an offense against the person of the employer or his immediate
family member or representative, and (5) analogous cases
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(a) The salary of any such official who fails to render his decision
or resolutions within the prescribed period shall be, or caused to be,
withheld until the said official complies therewith;
1) Employment contract
2) Valid passport
3) Employment visa or work permit, or equivalent document
4) Certificate of medical fitness
5) Certificate of attendance to the required employment orientation or
briefing
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Agencies with existing licenses shall, within four years from effectivity
hereof, increase their Escrow Deposit to One Million Pesos.
The bonds and escrow shall answer for all valid and legal claims arising
from violations of the conditions for the grant and use of the license,
and/or accreditation and contracts of employment. The bonds and
escrow shall likewise guarantee compliance with the provisions of the
Code and its implementing rules and regulations relating to
recruitment and placement, the Rules of the Administration and
relevant issuances of the Department and all liabilities which the
Administration may impose. The surety bonds shall include the
condition that notice to the principal is notice to the surety and
that any judgment against the principal in connection with
matters falling under POEAs/NLRCs jurisdiction shall be
binding and conclusive on the surety. The surety bonds shall
cover the validity period of the license.
To compel the POEA and private respondents the beneficiaries of
Finman's bond-to go to the Insurance Commissioner or to a regular
court of law to enforce that bond, would be to collide with the public
policy which requires prompt resolution of claims against
private recruitment and placement agencies. x x x
Cash and surety bonds are required by the POEA and its predecessor
agencies from recruitment and employment companies precisely as a
means of ensuring prompt and effective recourse against such
companies when held liable for applicants or workers' claims.
Clearly that public policy will be effectively negated if POEA and the
Department of Labor and Employment were held powerless to compel
a surety company to make good on its solidary undertaking in the
same quasi-judicial proceeding where the liability of the principal
obligor, the recruitment or employment agency, is determined and
fixed and where the surety is given reasonable opportunity to present
any defenses it or the principal obligor may be entitled to set up.
(Finman v Inocencio).
GARNISHMENT OF BONDS: It is intended answer only for
employment-related claims and for violations of labor laws. Therefore,
it cannot be garnished to satisfy a claim against a recruitment agency
such as payment for airline tickets used by the agencys recruits.
Art. 32. Fees to be paid by workers.
Any person applying with a private fee-charging employment agency
for employment assistance shall not be charged any fee until he
has obtained employment through its efforts or has actually
commenced employment. Such fee shall be always covered with
the appropriate receipt clearly showing the amount paid. The
Secretary of Labor shall promulgate a schedule of allowable fees.
Placement Fee for local employment:
SECTION 29. Placement Fee.
A licensed PRPA may charge workers a placement fee which shall not
exceed twenty percent (20%) of the workers first months
basic salary; in no case shall such fee be charged prior to the actual
commencement of employment.
PACBMTIM
a. Passport
b. NBI/Police/Barangay Clearance
c. Authentication
d. Birth Certificate
e. Medicare
f. Trade Test, if necessary
g. Inoculation, when required by host country
h. Medical Examination fees
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of workers; and (2) that the offender undertakes any activity within
the meaning of recruitment and placement under Article 13(b), or
any prohibited practices enumerated under Article 34 of the Labor
Code.
Under RA 8032, even a licensee or holder of authority may be held
guilty of illegal recruitment.
Illegal recruitment when committed by a syndicate or in large scale
shall be considered an offense involving economic sabotage and
shall be penalized in accordance with Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out
by a group of three (3) or more persons conspiring and/or
confederating with one another in carrying out any unlawful or illegal
transaction, enterprise or scheme defined under the first paragraph
hereof. Illegal recruitment is deemed committed in large scale if
committed against three (3) or more persons individually or as a
group.
When the Labor Code speaks of illegal recruitment 'committed
against three (3) or more persons individually or as a group,' it
must be understood as referring to the number of complainants in
each case who are complainants therein, otherwise, prosecutions for
single crimes of illegal recruitment can be cumulated to make out a
case of large scale illegal recruitment. In other words, a conviction
for large scale illegal recruitment must be based on a finding
in each case of illegal recruitment of three or more persons
whether individually or as a group (People v Hernandez).
The Secretary of Labor and Employment or his duly authorized
representatives shall have the power to cause the arrest and detention
of such non-licensee or non-holder of authority if after investigation it
is determined that his activities constitute a danger to national security
and public order or will lead to further exploitation of job-seekers. The
Secretary shall order the search of the office or premises and seizure
of documents, paraphernalia, properties and other implements used in
illegal recruitment activities and the closure of companies,
establishments and entities found to be engaged in the recruitment of
workers for overseas employment, without having been licensed or
authorized to do so.
Article 38, paragraph (c) of the Labor Code is declared unconstitutional
and null and void. Under the new Constitution, it is only a judge who
may issue warrants of search and arrest (Salazar v Achacoso).
It is submitted however, that the power of the Secretary or his duly
authorized representatives to order the closure of illegal recruitment
establishment still subsists, the same being essentially administrative
and regulatory in nature.
ILLEGAL RECRUITMENT
UNDER RA 8042 as amended by RA 10022
Sec. 6. DEFINITIONS. - For purposes of this Act, illegal recruitment
shall mean any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring, procuring workers and includes referring, contact
services, promising or advertising for employment abroad, whether for
profit or not, when undertaken by a non-license or non-holder of
authority contemplated under Article 13(f) of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the
Philippines. Provided, that such non-license or non-holder, who, in any
manner, offers or promises for a fee employment abroad to two or
more persons shall be deemed so engaged. It shall likewise include the
following acts, whether committed by any persons, whether a nonlicensee, non-holder, licensee or holder of authority.
(a) To charge or accept directly or indirectly any amount greater than
the specified in the schedule of allowable fees prescribed by the
Secretary of Labor and Employment, or to make a worker pay any
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"In the filing of cases for illegal recruitment or any of the prohibited
acts under this section, the Secretary of Labor and Employment, the
POEA Administrator or their duly authorized representatives, or any
aggrieved person may initiate the corresponding criminal action with
the appropriate office. For this purpose, the affidavits and testimonies
of operatives or personnel from the Department of Labor and
Employment, POEA and other law enforcement agencies who
witnessed the acts constituting the offense shall be sufficient to
prosecute the accused.
(b) The penalty of life imprisonment and a fine of not less than five
hundred thousand pesos (P500,000.00) nor more than one million
pesos (P1,000,000.00) shall be imposed if illegal recruitment
constitutes economic sabotage as defined herein.
"(b) The penalty of life imprisonment and a fine of not less than Two
million pesos (P2,000,000.00) nor more than Five million
pesos (P5,000,000.00) shall be imposed if illegal recruitment
constitutes economic sabotage as defined therein.
"(c) Any person found guilty of any of the prohibited acts shall suffer
the penalty of imprisonment of not less than six (6) years and one
(1) day but not more than twelve (12) years and a fine of not
less than Five hundred thousand pesos (P500,000.00) nor
more than One million pesos (P1,000,000.00).
"If the offender is an alien, he or she shall, in addition to the penalties
herein prescribed, be deported without further proceedings.
"In every case, conviction shall cause and carry the automatic
revocation
of
the
license
or
registration
of
the
recruitment/manning agency, lending institutions, training school or
medical clinic."
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AERC
2)
3)
4)
5)
Duration of Permit
Valid for 1 year from date of issuance, unless sooner
revoked by the Secretary of Labor
Renewable upon showing of good cause
Non-transferable
Foreigners may not be employed in certain nationalized
business.
Exceptions: (a) where the Secretary of Justice specifically
authorizes the employment of foreign technical personnel;
(b) where the aliens are elected members of the board of
directors or governing body of corporations or association in
proportion to their allowable participation in the capital of
such entities.
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C C (C2N) D
(1) That the non-resident alien worker shall comply with all
applicable laws and rules and regulations of the Philippines;
(2) That the non-resident alien worker and the employer shall bind
themselves to train at least two (2) Filipino understudies for a
period to be determined by the Secretary of Labor and Employment;
and
(3) That he shall not engage in any gainful employment other
than that for which he was issued a permit.
(c) A designation by the employer of at least two (2) understudies
for every alien worker. Such understudies must be the most
ranking regular employees in the section or department for which
the expatriates are being hired to ensure the actual transfer of
technology.
Resident aliens are not required to secure employment permit
(Almodiel v NLRC)
Under Article 40 of the Labor Code, an employer seeking employment
of an alien must first obtain an employment permit from the
Department of Labor. Petitioner GMC's right to choose whom to
employ is, of course, limited by the statutory requirement of
an alien employment permit. (General Milling v Torres)
An alien may question the constitutionality of a statute (or court order)
only when and so far as it is being, or is about to be, applied to his
disadvantage. The prospective employees whom the petitioner may
contemplate employing have not come forward to seek redress; their
identity has not even been revealed. Clearly the petitioner has no case
in so far as it strives to protect the rights of others, much less others
who are unknown and undetermined (Chuan & Sons v CIR).
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6-75-A
Page 13 of 26
of
violation
of
apprenticeship
RA 7796
Page 14 of 26
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HANDICAPPED WORKERS
Art. 78. Definition.
Handicapped workers are those whose earning capacity is impaired
by age or physical or mental deficiency or injury.
[
Page 16 of 26
SECTION 7. Apprenticeship
Subject to the provision of the Labor Code as amended, disabled
persons shall be eligible as apprentices or learners; Provided, That
their handicap is not much as to effectively impede the
performance of job operations in the particular occupation for
which they are hired; Provided, further, That after the lapse of
the period of apprenticeship if found satisfactory in the job
performance, they shall be eligible for employment.
SECTION 8. Incentives for Employer
(a) To encourage the active participation of the private sector in
promoting the welfare of disabled persons and to ensure gainful
employment for qualified disabled persons, adequate incentives shall
be provided to private entities which employ disabled persons.
(b). Private entities that employ disabled persons who meet the
required skills or qualifications, either as regular employee, apprentice
or learner, shall be entitled to an additional deduction, from their
gross income, equivalent to twenty-five percent (25%) of the
total amount paid as salaries and wages to disabled persons:
Provided, however, That such entities present proof as certified by the
Department of Labor and Employment that disabled person are under
their employ. Provided, further, That the disabled employee is
accredited with the Department of Labor and Employment and the
Department of Health as to his disability, skills and qualifications.
(c). Private entities that improved or modify their physical
facilities in order to provide reasonable accommodation for disabled
persons shall also be entitled to an additional deduction from their
net taxable income, equivalent to fifty percent (50%) of the
direct costs of the improvements or modifications. This section,
however, does not apply to improvements or modifications of facilities
required under Batas Pambansa Bilang 344.
REPUBLIC ACT 9442
AN ACT AMENDING REPUBLIC ACT NO. 7277, OTHERWISE
KNOWN AS THE MAGNA CARTA FOR DISABLED PERSONS,
AND FOR OTHER PURPOSES
SECTION 1. a new chapter, to be denominated as Chapter 8. Other
privileges and Incentives is hereby added to Title Two of Republic Act
No. 7277, otherwise known as the Magna Carta for Disabled Persons,
with new Sections 32 and 33, to read as follows:
CHAPTER 8. Other Privileges and Incentives
SEC. 32. Persons with disability shall be entitled to the following:
(a) At least twenty percent (20%) discount from all establishments
relative to the utilization of all services in hotels and similar lodging
establishments; restaurants and recreation centers for the exclusive
use or enjoyment of persons with disability;
(b) A minimum of twenty percent (20%) discount on admission fees
charged by theaters, cinema houses, concert halls, circuses, carnivals
and other similar places of culture, leisure and amusement for the
exclusive use of enjoyment of persons with disability;
(c) At least twenty percent (20%) discount for the purchase of
medicines in all drugstores for the exclusive use or enjoyment of
persons with disability;
(d) At least twenty percent (20%) discount on medical and dental
services including diagnostic and laboratory fees such as, but not
limited to, x-rays, computerized tomography scans and blood tests, in
all government facilities, subject to guidelines to be issued by the
Department of Health (DOH), in coordination with the Philippine Health
Insurance Corporation (PHILHEALTH);
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That the respondent had registered the petitioners with the Social
Security System is proof that they were indeed his employees. The
coverage of Social Security Law is predicated on the
existence of an employer-employee relationship (Flores v
Nuestro).
The power of control refers to the existence of the power and
not necessarily to the actual exercise thereof. It is not essential,
in other words, for the employer to actually supervise the performance
of duties of the employee; it is enough that the former has the right to
wield the power (Equitable Banking Corp v NLRC).
Where the employer-employee relationship was sufficiently proved by
testimonial evidence, the absence of time sheet, time record or
payroll has become inconsequential.
MODE OF COMPENSATION,
NOT A TEST OF EMPLOYMENT STATUS
The presence or absence of employer-employee relationship is not
determined by the basis of employees compensation. Employment
relationship is one thing, pay determination is another.
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2)
3)
PIECE-RATE WORKERS
They are not entitled to service incentive leave pay because as
piece-rate workers being paid at a fixed amount for performing work
irrespective of time consumed in the performance thereof they fall
under one of the exceptions stated in Section 1(d), Rule V,
Implementing Regulations, Book III, Labor Code (Makati
Haberdashery v NLRC).
LABOR UNION AND UNREGISTERED ASSOCIATION
AS EMPLOYER
The mere fact that the respondent is a labor union does not
mean that it cannot be considered an employer of the
persons who work for it. Much less should it be exempted from
the very labor laws which it espouses as labor organization (Bautista
v Inciong).
WHEN EMPLOYMENT RELATIONSHIP ABSENT; JOB
CONTRACTING OR INDEPENDENT CONTRACTORSHIP
Page 19 of 26
EXCLUDED EMPLOYEES
2)
3)
Mp Di A St Sat
1)
2)
3)
4)
exercise
discretion
and
Page 20 of 26
HOURS WORKED
Art. 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.
PURPOSE: Not only to safeguard the health and welfare of the
laborer or employee, but in a way to minimize unemployment
by forcing employers, in cases where more than 8 hour operation is
necessary, to utilize different shifts of laborers or employees working
for only 8 hours each
It is not prohibited to have normal hours of work less than 8 hours a
day.
Through a contract freely entered into, the work shift may exceed 8
hours, with corresponding overtime pay. Such arrangement is valid
and binding. (San Juan v NLRC)
Medical secretaries are also considered clinic personnel.
The 40 hour workweek of physicians would not be applicable if there
is a training agreement between the resident physician and the
hospital and the training program is duly accredited or approved by
the appropriate government agency.
The Manila Medical Society is not embraced in the definition and is
not limited to 40 hour workweek because it does not perform any
diagnosis, treatment and care of patients.
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.
Rest periods of short duration during working hours shall be counted
as hours worked.
IRR BOOK 3 RULE 1
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.
Preliminary activities and postliminary activities are deemed
performed during working hours, where such activities are controlled
or required by the employer and are pursued necessarily and
primarily for the employer's benefit.
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
word at his home or with company officials where he may be
reached is not working while on call.
The controlling factor is whether waiting time spent in
idleness is so spent predominantly for the employer's benefit
or for the employee's.
Sleeping time may be considered working time if it is subject
to serious interruption or takes place under conditions
substantially less desirable than would be likely to exist at employee's
home.
When the work is not continuous, the time when laborer can
leave his work and rest completely shall not be counted in
computation. However, although the laborers can rest completely
and may not be actually at work, if they are required to be in their
place of work before or after the regular working hours and within
the call of their employers, the time they stay in the place of work
should not be discounted from their working hours.
For public health workers, it shall not be considered as hours worked
but shall entitle them to an on call pay equivalent to 50% of his/her
regular wage.
If an employee is kept within reach through a mobile telephone or
other contact device, the employee is not at work beyond his regular
work hours.
The legal working day for any person employed by another shall be
of not more than eight hours daily. When the work is not
continuous, the time during which the laborer is not working
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and can leave his working place and can rest completely shall
not be counted (National Development v CIR).
TRAVEL TIME
1) Travel from home to work - Generally, it not work time but when
an employee receives an emergency call outside of his regular working
hours and is required to travel to his regular place of business or some
other work site, all of the time spent in such travel is working time.
2) Travel that is all in the day's work - It must be counted as
hours worked.
3) Travel away from home - It is work time when it cuts across the
employee's work day. The time is hours worked not only on regular
working days during normal working hours but also during the
corresponding hours on nonworking days.
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:
M 16 Eu Np
Page 22 of 26
ADS BOT
OVERTIME WORK
Art. 87. Overtime work.
Work may be performed beyond eight (8) hours a day provided that
the employee is paid for the overtime work, an additional
compensation equivalent to his regular wage plus at least
twenty-five percent (25%) thereof. Work performed beyond eight
hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight hours on
a holiday or rest day plus at least thirty percent (30%)
thereof.
Overtime compensation is additional pay for service or work
rendered or performed in excess of 8 hours a day by
employees or laborers in employment covered by 8 hour labor law
and not exempt from its requirements. It is computed by multiplying
the overtime hourly work rate by the number of hours worked in
excess of eight. (National Shipyards v CIR)
RATIONALE: Verily, there can be no other reason than that he is
made to work longer than what is commensurate with his agreed
compensation for the statutorily fixed or voluntarily agreed hours of
labor he is supposed to do (PNB v PEMA & CIR).
Since the overtime work is considered hourly, the pay rate is
computed also on per hour basis. The daily wage is divided by
8 to get the hourly base rate.
If employee is paid on a monthly salary basis, the daily rate is
obtained by the following formula:
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2)
3)
end of his eight hour work because there was no substitute ready to
take his place and he performed overtime services upon the order of
his immediate superior, notwithstanding the fact that there was a
standing circular to the effect that before overtime work may be
performed with pay, the approval of the corresponding department
head should be secured, such overtime services are
compensable inspite of the fact that said overtime services
were rendered without the prior approval of the Department
Head (Manila Railroad v CIR).
A verbal instruction to render overtime work prevails over a
memorandum prohibiting such work (AL Ammen v Borja).
A claim for overtime pay is not justified in the absence of a written
authority to render overtime after office hours during
Sundays and holidays (Global v Atienza).
Neither is overtime claim justified for days where no work was
required and no work could be done by the employees on account
of shutdown due to electrical power interruptions, machine repairs
and lack of raw materials (Durabuilt v NLRC).
ACTION TO RECOVER COMPENSATION
The principles of estoppel and laches cannot be invoked against
employees or laborers in an action for the recovery of compensation
for past overtime work.
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3)
2)
3)
RRFF
It shall be temporary.
Overtime rate = Hourly rate on rest day + 30% Hourly rate on rest
day
= P40.625 + (30% of P40.625)
= P40.625 x 1.30
= P52.81 per hour
How about if it the rest day falls on a special day?
Hourly rate = 150% of Regular hourly rate
= P31.25 x 1.50
= P46.875 per hour
Overtime rate = Hourly rate + 30% of Hourly rate
= P46.875 + (30% of P46.875)
= P46.875 x 1.30
= P60.94 per hour
How about if it falls on a regular holiday?
Hourly rate = 200% of Regular hourly rate
= P31.25 x 2
= P62.5 per hour
Overtime rate = Hourly rate + 30% of Hourly rate
= P62.50 + (30% of P62.50)
= P62.50 x 1.30
= P81.25 per hour
How about if it falls on a rest day on regular holiday?
Hourly rate = 260% of Regular hourly rate
= P31.25 x 2.60
= P81.25 per hour
Overtime rate = Hourly rate + 30% of Hourly rate
= P81.25 + (30% of P81.25)
= P81.25 x 1.30
= P105.625 per hour
UNDERTIME v OVERTIME
Art. 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.
Offsetting the undertime hours against the overtime hours would
result in the undue deprivation of the employee's overtime premium
(NWSA v NWSA Consolidated Union).
The situation is even more unacceptable where the undertime hours
are not only offset against the overtime hours but are also charged
against the accrued leave of the employee, for under this method the
employee is made to pay twice for his undertime hours because his
leave is reduced to that extent while he is made to pay for the
undertime hours with work beyond the regular working hours.
The proper method should be to deduct the undertime hours from
the accrued leave but to pay the employee the overtime
compensation to which he is entitled. Where the employee has
exhausted his leave credits, his undertime hours may simply be
deducted from his day's wage, but he should still be paid his overtime
compensation for work in excess of 8 hours a day.
EMERGENCY OVERTIME WORK
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WeLps UNC W
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