E-E relationship-

We need to know this because remember that the implications is always if there is no e-e relationship,
majority, if not all of the provisions of the labor code will not apply to the parties involved. Labor law is
about the E-E relationship. The applicability of the labor code is dependent upon the existence of
employer-employee relationship. If the relationship is other than employer-employee then the principle
or ordinary civil code will be applicable.

So it is very important to establish e-e relationship in labor cases. This can be established usually by
presenting the most important proof of your employment with a company which is an employment
contract. But what if there is no employment contract? Does this mean that you cannot establish
anymore that you are an employee? No! You can present other type of evidence. Like pays slips, time
record, and testimonial evidence.

Before we understand this we need to discuss what an employer is and what an employee under the
labor code is

Employer- Art.218 (e) “includes any person acting in the interest of an employer directly or indirectly.

The law uses the word “includes” not “mean” reason is not to give a very limited definition to what an
employer is. There is very broad definition.

Employee- as to the employee, similar with the definition provided for the employer, the law didn’t
make any specific limitation. As defined under Art. 218 (f) it embraces not only those who have ceased
as employees

Statutory classification of employees

1.) According to rank

2.) According to nature of engagement

According to Rank

1.) Managerial- vested with powers to promulgate rules, execute management policies, hire transfer,
lay-off, recall discharge suspend an employee. In other words, HRBPS, in house counsel, managers. Sila
ung mga nagdidisplina ngtatanggal, issue NTE, Warning, policies.

2.) Supervisor- Those who act in the interest of the employer and effectively recommend managerial
actions that requires independent judgment. In a sense they are those who are one level below the
managers. Supervises employees.

3.) Rank-and-File employee- neither manager nor supervisors. Usually in the operations.

Elements of Employer-employee relationship

a.) Selection and engagement of the employee

b.) Payment of wages

c.) Power of dismissal/discipline

d.) Power of Control

The Control Test

The person to whom the services are being rendered have control not only to the result but also to the
way how to achieve this result. There should be control not only to the ends but also to the means.
Otherwise, if for example the personal only have control over the ends then it will be a form of
contractorship agreement. The man power is provided by a 3rd partyWhole subject that unfortunately
we would not be able to cover

When do we commence E-E? Upon hiring of a person, usually by sending the offer and the employee
accepting and signing it.

WORKING CONDITIONS

Normal Hours of Work

Overtime Pay

Night Shift differential

Weekly rest period

Premium Pay

Holiday Pay

SIL

Service Charges

Coverage

Al employees are covered except:

1.) Government employees- covered by Civil Service law, Administartive and if GOCC their special
charter

2.) Managerial Employees- Not feasible to provide them maximum hours of work per day they are
hired because of special training education that required independndent knowledge and discretion.
That’s why like me. I’m actually not entitled to OT pay even if I extended my regular working hours.

3.) Field Personnel- there is now accurate way to determine their hours of work unlike those who are
working within the establishment.

4.) Family members of the employer who are dependent on him for support- Husband, parents,
children

5.) Domestic helpers/Kasambahay (except SIL and weekly rest days)- nature of work plus they are not
employed in a buseiness undertaking

6.) Person in the personal service of another- Bodyguard, personal nurses, family drivers, personal
engagement and it necessitates that they be exempted from certain legal restrictions.
7.) Workers paid by result- unsupervised no way to track if they actually work, they are paid based on
result as long as you provided a result.

Normal hours of Work- normal hours of work should not exceed 8 hours a day. A day mean the 24
hours period when you begin and when you end the work. It can be on a staggered basis as long as
within the 24 hour period. Any excess should be paid overtime pay.

Fair Day’s wage for fair day’s work- we follow no work no pay policy.

Waiting time- If engaged to wait like security guard, company driver, fire men ( waiting time should be
paid); (if waiting to be engaged not yet paid) because unlike the first one, they can’t use the waiting time
effectively for their own. On the latter, the employer is still not in control of their work.

Travel time- not paid because going to and from work is a normal incident of employment. You are not
being paid to travel. However if it’s an official company work it should be considered as working hours
or if your employer asked you to deviate on your regular route going to and from work it should also be
paid.

Power outage- if minimal lets say not more than 20 minutes ng resume na. should be considered
working time. If more than 30 na. not paid rationale Is that they can now use the time effectively for
their own use.

Coffee break/ short break- 20 minutes should be paid. Example in BPO industry.

MEAL PERIOD

General rule: it shall be 60 continuous and uninterrupted minutes of meal break. Unpaid

Exception: Employer can reduce the 60 minutes to not less than 20 minutes. Provided that it should be
paid.

1.) The work is non manual doesn’t involve strenuous work

2.) The establishment operated not less than 16 hours/day.

3.) Actual of impending work needed to be done to avoid lost serious loss on the part of employer

4.) To prevent loss of perishable goods

Nigh shift differential- additional 10% of the regular wage for every hour of work performed between
10PM- 6AM.

Overtime pay- 25% of regular wage for normal days. 30% of your rate for holiday or rest day if work is
rendered on holiday and rest day.

Can it be waived? No because that’s against public policy. You can waive is the OT you paid.

Compressed work week-instance where even if you work more than 8 hours a day you will not be paid
OT. 6 days. Reduced to 5. More than 8 hours a day no OT. Voluntary should be approved by DOLE as not
all establishments are covered. Contsturtion. Medical heavy manual labor.
Can overtime work in one day be used to offset under time work in another day? No this is expressly
prohibited by the labor code.

Can you be compelled to render overtime work? Common misconception No. because we have a
provision on the constitution against forced labor. But the labor code actually allows the employer to
compel you to render OT in the following circumstances. Emergency/Calamity/Urgent
work/Preservation of goods/Completion of work/Taking advantage of good working conditions. If not
insubordination. So long of course your employer will be able to provide support that there is an actual
need to render OT.

Weekly rest days- 24 consecutive hours after 6 consecutive normal days. It should be the choice of
employer when except in case of religious ground. It should be respected notice at least 7 days before

PREMIUM PAY-

Additional 30% of your regular wage- if you work on a special holiday or rest day

Additional 50% of your regular wage- if you work on a special holiday that falls on your rest day

Example you Special Holiday- Ninoy Aquino day. All saints day, Last day of the year.

HOLIDAY PAY-

Holiday pay/regular holidays list it.

100% of your regular daily wage. If you don’t work on a holiday, it will be paid. If you work, additional
100% 200% of your regular wage.

Two holidays falling on same day- Good Friday and Araw ng Kagitingan. 300%

Successive holiday- to successive holidays holy Thursday good Friday. If you are not going to work on
both days, to be entitled you must be present on the day before Holy Thursday. Otherwise you will not
be entitled to it.

Services Charges- usually applicable from customers collected by hotels, restaurants and similar
establishments. Distribution (85% for covered employee/15% for the management (usually used to
answer for losse and breakages). This should be distributed equally think of it as a tip.

Wages
Similar with E-E, the remuneration should arise from a relationship of employer and employee. If the
remuneration is not the product of an employer-employee but some other realationship like principal
and contractor, attorney client, then it will not be considered as wages.

Bonus

Amount given out of the generosity of the employer. Don’t be mistaken 13th month pay is not a bonus in
a sense that this is mandatorily required to be given by law. Bonus per se is not mandatorily required. It
is not a demandable obligation.

It will become a demandable obligation in two instances:

1.) When it was made part of the employment contract

2.) When it became a company practice. Long period of time/voluntarily consistently given. In one SC
case 1 year was declared enough but in some other cases it should be 10 years. Share experience how to
remedy.

Principle of Non diminution of benefits

Payment in form of legal tender. It should be on PHP. If sako ng bigas? No even ng agree is employee
would not discgarge the responsibility. Is check considered valid? Yes provided that they be given
enough time to encash during work houors 1 KM. employee agreed to it.

When? Once every 2 week with an interval not exceeding 16 days. Can there be delay? Acts of man and
acts of god

Place of payment of wages at or near the place of undertaking. Exception provided that pamasahe force
amejur acts of god. You cannot do it on a recreational place except If you are working there.

To whom? Employee. If not should be paid to person with written authority. Employee authorizes
employer to pay to employee, if it was authorized by law (judgement award/ garishment). In case of
death of employee. No need to probate affdaivit only. Very rare. Usually kasi sa bangko na binabayad.
Nagkakaissue sa f&f pay pag kinuhkuha usually affidavit.

Prohibitions. Interfere with the freddom how to disposed, force them to buy commodities fomr the
employer or other person, obliging to patronize.

Deposit fee. Industry practice only most common in restarurant and taxi. Deposit can be taken back.
To answer lang ung damages cause by your but never can be used kung hindi ka naka quota

Withhold. Except kapag naka PSO. Ngresign not yet cleared

Unlawful dedcutions. Except SSS/Pag-Ibig/Phil Health

LEAVES

Service Incentive Leave- 5 days paid for those employees who have rendered at least 1 years of
service. If not used it is convertible to cash.

Maternity leave

60/78 days. Available on the first four delivery and miscarriage

NOW. EXPANDED MATERNITY LAW RA 11210

Now 105 days. Out of the 105 days 7 may be allocated to the child’s father whether or not married. In
case of father’s death it may be allocated to an alternate caregiver at the election of the mother.
Paternity leave is now 14 days

105 days is applicable only to delivery

Can be extended to additional 30 days without pay.

Solo parents get an addition 15 days =120 days

Miscarriage- 60 days only

THERE IS NO LIMIT

Paternity Leave RA 8187

7 days paid. Lawful husband.

+7 from the expanded doesn’t need to be the lawful husband.

14 in total.

Solo Parents leave RA 8972

7 days paid. SOLO parent ID. Notice and at least 1 year of service. Graduation mga anak. Recreational
activities.

Leaves for Victims of Violence against women and children

10 days. Usually legal medical concerns.

Magna carta leave RA 9710

60 days with pay for those who will undergo gynecological disorder

Leave: Maternity Leave/Paternity Leave/Magna Carta/ Solo Parent Leave/ Service Incentive Leave/Leave
for victim of violence against women and children

13th month pay

Remuneration given to an employee who have rendered at least 1 month of service equivalent to 1/12
of basic salary. As a rule only rank and file but company practice lahat binibgyan na. should be paid
before xmas not later than Dec 24. You can say it’s a bonus but actually this is mandated by law.

Separation pay- payment if an employee is terminated based on authorized cause.

1 month every year of service if: Installation of labor saving device, redundancy

½ month for every year of service if: Retrenchment, closure of business not due to serious losses. NO
separation pay if due to serious losses.

Every years of service 6 month is equivalent to 1 year.

Retirement Pay

General rule: Retirement depends on what retirement plan, CBA provide. If not retirement plan
contract is stated then what will apply is labor code.

Under labor code to qualify for retirement: at least 5 years of service

Optional

60 years for ordinary employees

50 for underground mining employees

Compulsory

65- for ordinary

60- for underground mining

Amount:

½ month for every years of service

SPECIAL WORKING CONDITION FOR SPECIAL TYPES OF EMPLOYEES

Apprentice

Undergoing training in a highly technical industry for an approved apprenticshable position an

apprecnticeship agreement. Determined by TESDA

Applicable on those that apply advanced technology.

At least 14, ability to comprehend and follow oral and written instructions

Vocational aptitude

Physical fitness

75% of statutory minimum wage. Rule

But can be without. If OJT/ if requirement for givt examination.

Working hours.

Apprentice Below 15 years Old 4 hours a day 20 hours a week

Above 15 8 hours a day 40 hours a week

Duration should be 6 months. But may be terminated within 6 months.

Learners

Semi-skilled industry/ can be learned easily through practical training/ in short period of time 3 months.

75% of minimum wage

PWD/Workers with Disability

Same compensation with abled employees. They can also be hired as apprentice and learners so long as
they would not impede operations.
Good thins is employer can claim tax decutions for hiring PWDs deduction from gross income 25% of the
total amount paid to PWDs.

Women workers

Non disciminration policy

No to get married

Resigned if married

Termination due to pregnancy

Employment of minors

Workers hired under 18 years of age

Minimum age of employment is 15 years old

Children below 15 can also be hired under two instances.

If the child was hired directly under his parent or guardian provided:

Only members of his family are working thereat

Doesn’t not endanger the child’s life

Work permit from DOLE

Provided primary and secondary education

When hired in public entertain and or information such as cinema/theater/radio/television/

Work permit and employment contract approved by DOLE

Not hazard in health and life and normal development

Education.

Not allowed liquor cigarettes.

Kasambahay Law

Household chores within and employment relationship

Specifically to perform household work

At least 15 years old.

Rights Minimum wage, 13th month pay, SIL, Free board and lodging, daily rest period, weekly rest period,
medical attendance, SSS, PAGIBIG, PHIL HEALTH.