11/27/2020

Labor standards refer to the minimum requirements prescribed by existing laws, rules, and regulations
relating to wages, hours of work, cost of living allowance and other monetary and welfare benefits,
including occupational, safety, and health standards.

The worker need not litigate to get what legally belongs to him under labor Standards.

One who pleads payment has the burden of proving it, and even where the employees must allege non-
payment, the general rule is that the burden rests on the employer to prove payment, rather than on
the employees to prove non-payment. However --

The burden of proving entitlement to overtime pay and premium pay for holidays and rest days rests on
the employee because these are not incurred in the normal course of business.

Entries in the payroll, being entries in the course of business, enjoy the presumption of regularity.

The failure to present the payroll raises speculations that its presentation would be adverse to the case.
However --

It is understandable that no payslip or payroll could be presented by the recruitment agency for
domestic house helpers. Nonetheless --

Handwritten Listings and Unsigned and Unauthenticated Computer Printouts are unreliable and self-
serving.

A. Conditions of Employment

Coverage/Exclusions
1. Government employees, whether employed by the National Government or any of its political
subdivisions, including those employed in government-owned and/or controlled corporations with
original charters or created under special laws;
2. Those of retail and service establishments regularly employing less than ten (10) workers;
3. Kasambahay and persons in the personal service of another;
4. Managerial employees, if they meet all of the following conditions:
4.1. Their primary duty is to manage the establishment in which they are employed or of a department
or subdivision thereof;
4.2. They customarily and regularly direct the work of two or more employees therein; and
4.3. They have the authority to hire or fire other employees of lower rank; or their suggestions and
recommendations as to hiring, firing, and promotion, or any other change of status of other employees
are given particular weight.
5. Officers or members of a managerial staff, if they perform the following duties and responsibilities:
5.1. Primarily perform work directly related to management policies of their employer;
5.2. Customarily and regularly exercise discretion and independent judgment;
5.3. (a) Regularly and directly assist a proprietor or managerial employee in the management of the
establishment or subdivision thereof in which he or she is employed; or (b) execute, under general
supervision, work along specialized or technical lines requiring special training, experience, or
knowledge; or (c) execute, under general supervision, special assignments and tasks; and
5.4. Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities
which are not directly and closely related to the performance of the work described in paragraphs 5.1,
5.2, and 5.3 above.
6. 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.

You need to MEMORIZE the Coverage and Exclusions so you know when not to apply Labor Standards.
Is this Clear?

The List contains the Exclusions to Labor Standards, anyone outside the list is covered. Statutory
Construction.

a) Principles in Determining Hours Worked

Omnibus Rules Implementing The Labor Code

Book III
Conditions of Employment
Rule I
Hours of 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.
Normal Hours of Work

Labor Code

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 per cent (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.

Article 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 period of short duration during working hours shall be counted as hours worked.

8 Hours.

It is noteworthy that –
A person who does not observe normal hours of work is not indicative of the existence of an employer-
employee relationship

Meaning, your hours of work it will not determine or indicate employer-employee relationship. A person
can work for less than 8 Hours and can still be considered as an employee, as long as the four-fold test is
complied with. The 8 Hours is not the main reason to declare you as an employee.

Lazaro vs. Social Security Commission, G.R. No. 138254, July 30, 2004, citing Cosmopolitan Funeral
Homes, Inc. vs. Maalat, G.R. No. 86693, July 2, 1990.

Night Shift Differential

Labor Code

Article 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 o'clock in the
evening and six o'clock in the morning.

Chapter V
Employment of Night Workers

Article 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 o'clock in the morning, to be determined by the Secretary of Labor and
Employment, after consulting the workers' representatives/labor organizations and employers.
"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.

Article 155. Health Assessment. — At their request, workers shall have the right to undergo a health
assessment without charge and to receive advice on how to reduce or avoid health problems associated
with their work:
(a) Before taking up an assignment as a night worker;
(b) At regular intervals during such an assignment; and
(c) If they experience health problems during such an assignment which are not caused by factors other
than the performance of night work.
With the exception of a finding of unfitness for night work, the findings of such assessments shall not be
transmitted to others without the workers' consent and shall not be used to their detriment.

Article 156. Mandatory Facilities. — Suitable first-aid 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.

Article 157. Transfer. — Night workers who are certified as unfit for night work, due to health reasons,
shall be transferred, whenever practicable, to a similar job for which they are fit to work.
If such transfer to a similar job is not practicable, these workers shall be granted the same benefits as
other workers who are unable to work, or to secure employment during such period. "A night worker
certified as temporarily unfit for night work shall be given the same protection against dismissal or
notice of dismissal as other workers who are prevented from working for reasons of health.

Article 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 authorized
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 case 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.

Article 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.

Article 160. Social Services. — Appropriate social services shall be provided for night workers and,
where necessary, for workers performing night work.

Article 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.

Night Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an
employee's regular wage for each hour of work performed between 10 p.m. and 6 a.m

The EMPLOYEE! Has burden of proof as NSD is a labor standard done in the extra-ordinary course of
business.

iii) Overtime Work

Labor Code

Article 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 (25%) per cent 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 thereof.

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.

Article 89. Emergency Overtime Work. — Any employee may be required by the employer to perform
overtime work in any of the following cases:
(a) When the country is at war or when any other national or local emergency has been declared by
Congress or the Chief Executive;
(b) When it is necessary to prevent loss of life or property or in case of imminent danger to public safety
due to an actual or impending emergency in the locality caused by serious accidents, fire, flood,
typhoon, earthquake, epidemic, or other disaster or calamity;
(c) When there is urgent work to be performed on machines, installations or equipment, in order to
avoid serious loss or damage to the employer or some other cause of similar nature;
(d) When the work is necessary to prevent loss or damage to perishable goods; and
(e) Where the completion or continuation of the work started before the eight hour is necessary to
prevent serious obstruction or prejudice to the business or operations of the employer.
Any employee required to render overtime work under this Article shall be paid the additional
compensation required in this Chapter.

Article 90. Computation of Additional Compensation. — For purposes of computing overtime and other
additional remuneration as required by this Chapter the regular wage of an employee shall include the
cash wage only, without deduction on account of facilities provided by the employer.

The Prohibition against Involuntary Servitude. Employees are not precluded from severing their
employment through resignation or retirement. An employee has the RIGHT to refuse OT work
HOWEVER he may be charged for willful disobedience. That is why if he does not want to work, he can
resign or retire.

The Labor Code uses "MAY" on Emergency OT. not 'SHALL".

Rationale for Overtime Pay

Philippine National Bank vs. Philippine National Bank Employees Association,

G.R. No. L-30279, July 30, 1982.
J. Barredo

Why is a laborer or employee who works beyond the regular hours of work entitled to extra
compensation called in this enlightened time, overtime pay? 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. When he thus spends
additional time to his work, the effect upon him is multi-faceted: he puts in more effort, physical and/or
mental; he is delayed in going home to his family to enjoy the comforts thereof; he might have no time
for relaxation, amusement or sports; he might miss important pre-arranged engagements; etc., etc. It is
thus the additional work, labor or service employed and the adverse effects just mentioned of his longer
stay in his place of work that justify and is the real reason for the extra compensation that he called
overtime pay.

Overtime work is actually the lengthening of hours developed to the interests of the employer and the
requirements of his enterprise. It follows that the wage or salary to be received must likewise be
increased, and more than that, a special additional amount must be added to serve either as
encouragement or inducement or to make up for the things he loses which We have a ready referred to.
And on this score, it must always be borne in mind that wage is indisputably intended as payment for
work done or services rendered.
The rendition of overtime work and the submission of sufficient proof that said work was actually
performed are conditions to be satisfied before an employee could be entitled to overtime pay.
For the employer to give him overtime pay for the extra hours when he might be sleeping or attending
to his personal chores or even just lulling away his time would be extremely unfair and unreasonable.

Legahi vs. NLRC, G.R. No. 122240, November 18, 1999. J. Kapunan

THERE IS NO SUCH THING AS GUARANTEED OT OR BUILT-IN OT... However

BUILT-IN OT can be included in the CBA.
This is the guaranteed extra time, whether worked or unworked, in order to increase the basic monthly
pay of an employee. See Engineering Equipment, Inc. vs. Minister of Labor, G.R. No. L-64967, September
23, 1985.

i) Meal Break

Labor Code

Article 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.

Manual on Labor Standards

Meal Period

1. Every employer shall give his employees regardless of sex not less than one (1) hour time-off for
regular meals.
2. The one (1) hour time-off is not compensable.
3. 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 of work of the employee in the following cases:
a. Where work is non-manual 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 break
breaks running from five (5) to twenty (20) minutes shall be considered as compensable working time.

60 Minutes, 1 Hour Not Compensable

Less than 20 Minutes, Coffee Breaks, Compensable

ii) Power Interruptions or Brownouts

Policy Instructions No. 36-78

Effects of Power Interruptions or Brownouts on Productive Man-Hours

In order to provide guidelines in the treatment of cases brought about by brownouts or power
interruptions as a consequence of the energy reservation program of the government, the following
rules are hereby issued for the guidance of all concerned:
1. Brownouts of short duration but not exceeding twenty (20) minutes shall be treated as worked or
compensable hours whether used productively by the employees or not.
2. Brownouts running for more than twenty (20) minutes may not be treated as hours worked provided
any of the following conditions are present:
a) The employees can leave their workplace or go elsewhere whether within or without the work
premises; or
b) The employees can use the time effectively for their own interest.
In each case, the employer may extend the working hours of his employees outside the working hours of
his employees outside the regular schedules to compensate for the loss of productive man-hours
without being liable for overtime pay.
Industrial enterprises with one or two workshifts may adopt any of the workshifts prescribed for
enterprises with three (3) workshifts to prevent serious loss or damage to materials, machineries, or
equipment that may result in case of power interruptions.

Less than 20 Minutes Compensable, Hours Worked, More than 20 Minutes NOT. So the KEY WORDS is
20 MINUTES. The 20 Minutes Rule, Clear?

ii) Idle Time

National Development Co. vs. Court of Industrial Relations,

G.R. No. L-15422, November 30, 1962.
J. Regala

The idle time that an employee may spend for resting and during which he may leave the spot or place
of work though not the premises of his employer, is not counted as working time only where the work is
broken or is not continuous.

Travel Time and Commuting Time

DOLE Department Order No. 126-13

Revised Guidelines on the Conduct of Facility Evaluation

(e) "Facilities" refer to articles or services provided by the employer for the benefit of the employee or
his/her family but shall not include tools of the trade of articles or services primarily for the benefit of
the employer or necessary to the conduct of the employer's business. (Section 5, Rule VII, Implementing
Rules of Book III, Labor code).
The term shall include:
xxx xxx xxx
4. transportation furnished to the employee between his home and work where the travel time does
not constitute hours worked compensable under the Labor Code and other laws; xxx xxx xxx

Base on this premise ...

Home and Work. The travel time or commuting time of an employee between his home and work does
not constitute hours worked that is compensable.

During Work. The travel time or commuting time of an employee during regular working hours
constitute hours of worked that is compensable.

Away from Home and Work. The travel time or commuting time of an employee away from home and
work during regular working hours constitute hours of worked that is compensable. However, idle time
or sleeping time, and meal periods, during this time, do not constitute hours of worked that is
compensable.

In fact --

Sleeping during Travel. Sleeping time as well as travel time from residence to the workplace shall not be
included as hours worked that is compensable
See DOLE Department Circular No. 002-17, Guidelines on the Issuance of Work Permit for Children
Below 15 Years of Age Engaged in Public Entertainment or Information

vi) Waiting Time

Omnibus Rules Implementing The Labor Code

Book III
Conditions of Employment
Rule I
Hours of Work

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.

However --

DOLE Department Order No. 182-17

Guidelines Governing the Employment and Working Conditions of Health Personnel in the Private
Healthcare Industry

Section 7. Waiting Time. — Waiting time such as endorsement period, spent by health personnel shall
be considered as working time if he or she is required or engaged by the employer to wait.
A health personnel 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.

DOLE Department Order No. 129-13

Rules and Regulations Governing the Employment and Working Conditions of Seafarers Onboard Ships
Engaged in Domestic Shipping

Section 5. Waiting Time. — Waiting time shall not be considered as compensable working time if the
seafarer is completely relieved from his/her duty and can use the time effectively for his/her own
purpose.

DOLE-FDCP Joint Memorandum Circular No. 001-20

SUBJECT : Guidelines Governing the Working Conditions and Occupational Safety and Health of
Workers in the Audio-Visual Production

Waiting Time refers to time spent by a worker which shall be considered as actual working time if
he/she is required or engaged to wait;
All workers required to standby and are restricted to the confines of the workplace premises shall be
compensated;
All on-call workers engaged for their services who are outside the premises of the set or location shall
likewise be compensated in the event of cancellation not less than twenty-four (24) hours immediately
preceding the scheduled shoot

vii) Lectures, Meetings, Training Programs.

Omnibus Rules Implementing The Labor Code

Book III
Conditions of Employment
Rule I
Hours of Work

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.

Generally, not working hours.

Unless done during regular working hours and mandatory.

2. Rest Periods
Labor Code

Weekly Rest Periods

Article 91. Right to Weekly Rest Day. — (a) It shall be the duty of every employer, whether operating for
profit or not, to provide each of his employees a rest period of not less than twenty-four (24)
consecutive hours after every six (6) consecutive normal work days.
(b) The employer shall determine and schedule the weekly rest day of his employees, subject to
collective bargaining agreement and to such rules and regulations as the Secretary of Labor may
provide. However, the employer shall respect the preference of employees as to their weekly rest day
when such preference is based on religious grounds.

ARTICLE 92. When Employer May Require Work on a Rest Day. — The employer may require his
employees to work on any day:
(a) In case of actual or impending emergencies caused by serious accidents, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity to prevent loss of life and property, or imminent
danger to public safety;
(b) In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid
serious loss which the employer would otherwise suffer;
(c) In the event of abnormal pressure of work due to special circumstances, where the employer cannot
ordinarily be expected to resort to other measures;
(d) To prevent loss or damage to perishable goods;
(e) Where the nature of the work requires continuous operations and the stoppage of work may result
in irreparable injury or loss to the employer; and
(f) Under other circumstances analogous or similar to the foregoing as determined by the Secretary of
Labor.

Article 93. Compensation for Rest Day, Sunday or Holiday Work. — (a) Where an employee is made or
permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least
thirty percent of his regular wage. An employee shall be entitled to such additional compensation for
work performed on Sunday only when it is his established rest day.
(b) When the nature of the work of the employee is such that he has no regular work days, and no
regular rest days can be scheduled, he shall be paid additional compensation of at least thirty percent of
his regular wage for work performed on Sundays and holidays.
(c) Work performed on any legal holiday shall be paid an additional compensation of at least thirty
percent of the regular wage of the employee. Where such holiday work falls on the employee's
scheduled rest day, he shall be entitled to an additional compensation of at least fifty percent of his
regular wage.
(d) Where the collective bargaining agreement or other applicable employment contract stipulates the
payment of a higher premium pay than that prescribed under this Article, the employer shall pay such
higher rate.

Please note the use of the word 'MAY" on emergency work.

Also on Freedom of Religion, INK members araw ng pagsamba is not ordinarily on Sunday.
Service Charges

Labor Code

Article 96. Service Charges. — All service charges collected by hotels, restaurants and similar
establishments shall be distributed completely and equally among the covered workers except
managerial employees.
In the event that the minimum wage is increased by law or wage order, service charges paid to the
covered employees shall not be considered in determining the employer's compliance with the
increased minimum wage.
To facilitate resolution of any dispute between the management and the employees on the distribution
of service charges, a grievance mechanism shall be established. If no grievance mechanism is established
or if inadequate, the grievance shall be referred to the regional office of the Department of Labor and
Employment which has jurisdiction over the workplace for conciliation.
For purposes of this Article, managerial employees refer to any person vested with powers or
prerogatives to lay down and execute management policies or hire, transfer, suspend, lay-off, recall,
discharge, assign or discipline employees or to effectively recommend such managerial action.

Omnibus Rules Implementing The Labor Code

Book III
Conditions of Employment
Rule VI
Service Charges

Section 2. Definition of Terms. — As used in this Rule, the following terms are defined as follows:
a. Covered employees refer to all employees, except managerial employees as defined herein, under
the direct employ of the covered establishment, regardless of their positions, designations or
employment status, and irrespective of the method by which their wages are paid.
b. Covered establishments refer to those that collect service charge for work or service they offer.
c. Managerial employees refer to any person vested with powers or prerogatives to lay down and
execute management policies or hire, transfer, suspend, lay-off, recall, discharge, assign or discipline
employees or to effectively recommend such managerial actions.
d. Other similar establishments refer to those entities that collect service charge for work or service
rendered, such as, but not limited to, lodging houses, night clubs, cocktail lounges, massage clinics, bars,
casinos and gambling houses, and sports clubs.
e. Service charge refers to the amount that is added to the bill for work or service rendered.

Section 3. Distribution of Service Charges. — All service charges collected by covered employers shall be
distributed at the rate of 85% for the employees and 15% for the management. The 85% shall be
distributed equally among the covered employees. The 15% shall be for the disposition by management
to answer for losses and breakages and distribution to managerial employees at the discretion of the
management in the latter case.

Section 4. Frequency of Distribution. — The shares referred to herein shall be distributed and paid to
the employees not less than once every two (2) weeks or twice a month at intervals not exceeding
sixteen (16) days.
Section 5. Permanency of Service Charges. — In case the service charges is abolished, the share of
covered employees shall be considered integrated in their wages. The basis of the amount to be
integrated shall be the average monthly share of each employee for the past twelve (12) months
immediately preceding the abolition of withdrawal of such charges.

Note the establishments. Casinos and gambling Houses.

Food and Beverage only or All Service?

If All Services, Casinos and Gambling Houses is the best financial option for the employee.

Traditionally, Historically — for restaurants lang, food and beverage, "Tips", but now, very different
concept.

Part-time work

The employer may proportionately decrease the daily wage and wage-related benefits granted by law in
part-time employment.

DOLE Explanatory Bulletin on Part-Time Employment

II. Part-Time Employment Defined

Part-time work is defined by ILO as "a single, regular or voluntary form of employment with hours of
work substantially shorter than those considered as normal in the establishment." This definition
excludes certain forms of employment which although referred to as part-time work, are in particular,
irregular, temporary or intermittent employment, or cases where hours of work have been temporarily
reduced for economic, technical or structural reasons.
Part-time work may take different forms depending on the agreed hours of work in a day, the days of
work in a week or other reference periods. In the Philippines, however, the two most common and
acceptable forms are four (4) hours work per day and weekend work or two (2) full days per week.
The following Guidelines therefore is limited in application to the part-time employment in the above
context. It is not intended to cover part-time employment of teachers who will be the subject of
subsequent issuances and of professionals and persons whose service performance and compensation
are not time-based.

III. Payment of Statutory Benefits

The benefits accorded by the Labor Code and related issuances are generally based on the normal
working hours of eight in a day. Applying the principle of fairness and equity, therefore, for any
reduction of hours of work substantially less than the normal, the employer may proportionately
decrease the daily wage and wage-related benefits granted by law. This is in accordance with the
principle of "a fair day's wage for a fair day's labor". In other words, the employer is not obliged to pay
an employee working for less than eight hours a day, the wages due for eight hours work, unless there
exists a company policy of individual or collective agreement stipulating a normal day's work to consist
of less than eight hours.
For work in excess of eight hours a day, the part-time worker is also entitled to overtime pay. For
purposes of overtime pay under the law, a "day" is understood to be the twenty-four hour period which
commences from the time the employee regularly starts to work. It is not necessarily the ordinary
calendar day (like Monday, Tuesday, etc.) from 12 o'clock midnight to 12 o'clock midnight unless the
employee starts working at midnight, which is unlikely, in which case the start of the 24-hour period in
determining his workday coincides with the start of the calendar day. Thus, if a part-time employee
regularly works from 11:00 a.m., to 3:00 p.m., the workday of such employee is from 11:00 a.m. to 11:00
a.m., the following day. In other words, the period from 11:00 a.m. to 3:00 p.m. is the regular working
hours or shift of the employee while the period from 11:00 a.m. to 11:00 a.m. the following day is his
workday.
The holiday pay of part-time worker, however, should be determined on a case-to-case basis, whichever
is highest in any given case, as follows: regular wage per day; basic wage on the working day preceding
the regular holiday if the employee is present or on leave with pay on the last working day immediately
prior to the regular holiday; the average of his basic wages for the last seven working days for
employees who are paid by results; or the basic wage on the particular holiday, if worked.
On special days, the principle of "no work, no pay" may be applied. If said days are worked, however,
the mandated premium pay of at least thirty percent (30%) is due the part-time worker, as in the case of
rest day work.

With regard to service incentive leave, the Implementing Rules and Regulations of the Labor Code, as
amended, provides that every employee who has rendered at least "one year of service" (as defined
therein) shall be entitled to a yearly service incentive leave of five days with pay. Thus, a part-time
worker is entitled to service incentive leave whether the service within 12 months is continuous or
broken or where the working days in the employment contract as a matter of practice or policy is less
than 12 months. The availment and commutation of the same can be proportionate to the daily work
rendered and the regular daily salary, respectively.
P.D. 851 which provides 13th month pay in the amount of not less than 1/12 of the total basic salary
earned within a calendar year is likewise applicable to rank-and-file part-time workers considering that
the law does not expressly exclude subject employees. Pursuant to the guidelines on the
implementation of the 13th month pay law, covered employees are entitled to the benefit regardless of
their designation or employment status, and irrespective of the method by which their wages are paid,
provided that they have worked for at least one (1) month during calendar year. For the purpose of 13th
month pay entitlement, meanwhile, one (1) month service in a calendar year as requisite for entitlement
should be reconciled with the idea of one normal working month in the establishment which for the
part-time employee should be determined on total number of hours worked.
The foregoing benefits are, however, without prejudice to any company practice or policy or individual
or collective bargaining providing more benefits to said type of workers.

A part-time employee does not attain permanent status no matter how long he has served the school.

St. Mary’s University vs. Court of Appeals, G.R. No. 157788, March 8, 2005.J. Quisumbing
Contract for Piece Work

Civil Code

Article 1713. By the contract for a piece of work the contractor binds himself to execute a piece of work
for the employer, in consideration of a certain price or compensation. The contractor may either employ
only his labor or skill, or also furnish the material. (1588a)

These are workers who are paid by results, including those who are paid on piece-work, "takay",
"pakiao" or task basis, and other non-time work if their output rates are in accordance with the
standards prescribed the regulations, or where such rates have been fixed by the Secretary of Labor and
Employment.

The Rationale for Piece-Work

An employee with no fixed salary is not entitled to extra compensation for overtime work.

Lara vs. Del Rosario, Jr.,G.R. No. L-6339, April 20, 1954.J. Montemayor

Piece work basis connotes that a laborer or employee with no fixed salary, wages or remuneration but
receiving as compensation from his employer an uncertain and variable amount depending upon the
work done or the result of said work (piece work) irrespective of the amount of time employed, is not
covered by the Eight-Hour Labor Law and is not entitled to extra compensation should he works in
excess of 8 hours a day.

In other words, his compensation for the day depends upon the result of his work, which in turn
depends on the amount of industry, intelligence and experience applied to it, rather than the period of
time employed. In short, he has no fixed salary or wages.

a) Compressed Workweek

Manual on Labor Standards

Compressed Workweek — is a scheme where the generally observed six (6) days workweek of eight (8)
hours per day is shortened to five (5) days only. The Saturday or 6th day work may either be evenly
distributed over the five working days from Monday to Friday.

Conditions for Implementation:

In the adoption of the compressed workweek, the following concurring conditions should be met:

1. The employees voluntarily agree to work more than eight (8) hours a day the total in a week of which
shall not exceed their normal weekly hours of work, prior to adoption of the compressed workweek
arrangements.
2. There will not be any diminution whatsoever in the weekly or monthly take-home pay and fringe
benefits of the employee.
3. If an employee is permitted or required to work in excess of his normal weekly hours of work prior to
the adoption of the compressed workweek scheme, all such excess hours shall be considered overtime
work and shall be compensated in accordance with the provisions of the Labor Code or applicable
Collective Bargaining Agreement (CBA).
4. Appropriate waivers with respect to overtime premium pay for work performed in excess of eight (8)
hours a day may be devised by the parties to the agreement.
5. The effectivity and implementation of the new working time arrangement shall be by agreement of
the parties.
Employers adopting the compressed workweek scheme provided herein shall submit a report to
Department of Labor and Employment or to its nearest Regional Office not later than ten (10) days from
the adoption of the scheme.

The waiver of overtime pay is sanctioned under a Compressed Workweek Scheme.

The Compressed Workweek Scheme was originally conceived for establishments wishing to save on
energy costs, promote greater work efficiency and lower the rate of employee absenteeism, among
others.

Bisig Manggagawa sa Tryco vs. NLRC,G.R. No. 151309, October 15, 2008. J. Nachura

The compressed workweek scheme was originally conceived for establishments wishing to save on
energy costs, promote greater work efficiency and lower the rate of employee absenteeism, among
others. Workers favor the scheme considering that it would mean savings on the increasing cost of
transportation fares for at least one (1) day a week; savings on meal and snack expenses; longer
weekends, or an additional 52 off-days a year, that can be devoted to rest, leisure, family
responsibilities, studies and other personal matters, and that it will spare them for at least another day
in a week from certain inconveniences that are the normal incidents of employment, such as commuting
to and from the workplace, travel time spent, exposure to dust and motor vehicle fumes, dressing up for
work, etc. Thus, under this scheme, the generally observed workweek of six (6) days is shortened to five
(5) days but prolonging the working hours from Monday to Friday without the employer being obliged
for pay overtime premium compensation for work performed in excess of eight (8) hours on weekdays,
in exchange for the benefits abovecited that will accrue to the employees.

The original philosophy of a CWW is to save on energy cost, but now being done in COVID-19 pandemic,
Holiday Economics, precursor to retrenchment, etc.

Flexible Work Arrangements

DOLE Advisory No. 002-09
Guidelines on the Adoption of Flexible Work Arrangements

II. Concept
The Department recognizes the desirability and practicality of flexible work arrangements that may be
considered by employers after consultation with the employees, taking into account the adverse
consequence of the situation on the performance and financial condition of the company.
Flexible work arrangements refer to alternative arrangements or schedules other than the traditional or
standard work hours, workdays and workweek. 1uplsl09
The effectivity and implementation of any of the flexible work arrangements provided herein shall be
temporary in nature.
III. Flexible Work Arrangements

The following are the flexible work arrangements which may be considered, among others:
1. Compressed Workweek refers to one where the normal workweek is reduced to less than six (6) days
but the total number of work-hours of 48 hours per week shall remain. The normal workday is increased
to more than eight hours but not to exceed twelve hours, without corresponding overtime 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. Reduction of Workdays refers to one where the normal workdays per week are reduced but should
not last for more than six months.
3. Rotation of Workers refers to one where the employees are rotated or alternately provided work
within the workweek.
4. Forced Leave refers to one where the employees are required to go on leave for several days or
weeks utilizing their leave credits if there are any.
5. Broken-time schedule refers to one where the work schedule is not continuous but the work-hours
within the day or week remain.
6. Flexi-holidays schedule refers to one where the employees agree to avail the holidays at some other
days provided there is no diminution of existing benefits as a result of such arrangement.
Under these flexible work arrangements, the employers and the employees are encouraged to explore
alternative schemes under any agreement and company policy or practice in order to cushion and
mitigate the effect of the loss of income of the employees.

a) Wage vs. Salary

The term "wages" applies to the compensation for manual labor, skilled or unskilled, paid at stated
times, and measured by the day, week, month, or season, while "salary" denotes a higher degree of
employment, or a superior grade of services, and implies a position of office.

Gaa vs. CAG.R. No. L-44169, December 3, 1985J. Patajo

b) Facilities vs. Supplements

The value of the facilities may be deducted from the employees' wages but not the value of
supplements. Facilities include articles or services for the benefit of the employee or his family but
exclude tools of the trade or articles or services primarily for the benefit of the employer or necessary to
the conduct of the employer's business.

Our Haus Realty Development Corporation, vs. ParianG.R. No. 204651, August 6, 2014. J. Brion