REGULATORY FRAMEWORK FOR
BUSINESS TRANSACTION (RFBT)
LABOR LAW
Atty. Zharmaine Cynara C. Jumlaie
Ateneo de Zamboanga University
School of Management and Accountancy
what is LABOR?
ü it is the exertion by human beings of physical or
mental efforts, or both, towards the production of
goods and services
ü it also means that sector or group in a society
which derives its livelihood chiefly from rendition
of work or services in exchange for compensation
under managerial direction
LABOR CODE OF THE PHILIPPINES
Presidential Decree No. 442, as amended
LABOR LAW
governs the RIGHTS and DUTIES of employers
and employees, with respect to the:
• terms and conditions of employment
• labor disputes arising from collective
bargaining respecting such terms and
conditions
BASIC POLICY ON LABOR
The State shall afford protection to labor,
promote full employment, equal work
opportunities regardless of sex, race or
creed and regulate the relations between
workers and employers. The State shall
assure the rights of workers to self-organize,
collective bargaining, security of tenure and
just humane conditions or work
MAJOR DIVISIONS OF LABOR LAW
1. Law on LABOR STANDARDS
deals with minimum standards as to wages, hours
of work, and other terms and conditions or
employment that employers must provide their
employees
2. Law on LABOR RELATIONS
defines the status, rights and duties as well as the
institutional mechanisms that govern the individual and
collective interactions between employers and their
representatives
LABOR
STANDARDS
CONDITIONS OF EMPLOYMENT
1
COVERAGE
OVERTIME WORK
5
2
HOURS OF WORK
REST PERIODS
6
3
MEAL PERIODS
HOLIDAY PREMIUM
7
4
NIGHT SHIFT DIFFERENTIAL
13TH MONTH PAY
8
1
COVERAGE
Who are the employees covered?
ALL EMPLOYEES in all establishments, whether for profit or not, are
covered by the law on labor standards (Article 82)
1
COVERAGE
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1. Government Employees
2. Managerial Employees
3. Field Personnel
4. Members of the family of the employer who are dependent on him
for support
5. Domestic Helpers
6. Workers who are Paid by Results
2
hours of work
What is considered as “compensable” HOURS WORKED?
a. all the time during which an employee is REQUIRED to BE ON DUTY
or to BE AT A PRESCRIBED WORKPLACE (Article 84)
b. all the time during which an employees is SUFFERED or PERMITTED
TO WORK (Article 84)
c. rest periods of short duration during working hours which shall NOT
be more than 20 MINUTES
d. meal periods of less than 20 MINUTES
2
hours of work
NORMAL HOURS OF WORK
the normal hours of work of any employee shall not exceed EIGHT
(8) HOURS a day (Article 83)
•
8 hours work may be reduced, but no corresponding reduction in
compensation
•
part-time work or a day's work of less than 8 hours is not prohibited
PURPOSE:
1.
to safeguard the health and welfare of the laborer
2.
to minimize unemployment by utilizing different shifts
2
HOURS OF WORK
E
X
HEALTH PERSONNEL
C
regular office hours for EIGHT (8) HOURS a day, for FIVE (5) DAYS a week,
E
exclusive meals except where the extingencies of the service require that
P
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such personnel work for SIX (6) DAYS or FORTY-EIGHT (48) HOURS a week
(Article 83)
ü they shall be entitled to an additional 30% of their regular wage for
work on the 6th day
applies only in:
a.
cities and municipalities with a population of at least 1,000,000, OR
b.
hospitals and clinics with a bed capacity of at least 100
2
HOURS OF WORK
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X
who are considered HEALTH PERSONNEL?
C
E
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Resident Physicians, Nurses, Nutritionists, Dietitians, Pharmacists,
T
Social Workers, Laboratory Technicians, Paramedical Technicians,
I
Psychologists, Midwives, Attendants and all other hospital or clinic
O
N
personnel (Article 83)
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NOTE:
Health Personnel in government service are EXCLUDED from the coverage of Labor Code. They
are governed by th RA 7305 or the Magna Carta of Public Health Workers
2
HOURS OF WORK
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COMPRESSED WORK WEEK
•
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beyond his control (i.e. substantial slump in demand for his goods or
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services or when there is lack of raw materials)
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it is resorted to by employer to prevent serious losses due to causes
•
to be an exception to the 8-HOUR A DAY requirement, the workers must
AGREE to the temporary change of work schedule and they do not
suffer any loss of overtime pay, fringe benefits or their monthly takehome (DOLE Explanatory Bulletin)
2
HOURS OF WORK
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q this scheme is an ALTERNATIVE ARRANGEMENT
•
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number of hours per week remains at 48 HOURS
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normal work week is reduced to less than 6 DAYS but the total
•
the workday is increased to more than 8 HOURS without
corresponding overtime
•
total number of hours per day shall NOT EXCEED 12 HOURS
compressed work week
2
HOURS OF WORK
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CONDITIONS OF VALID CWW SCHEME
1. expressly and voluntarily supported by majority of the employees
affected
2. if work is hazardous, CERTIFICATION is needed from an
accredited safety organization or the firm's safety committee
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that work beyond 8 hours is within the limits or levels of exposure
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set by the DOLE Occupational Safety and Health Standards
3. DOLE is duly notified (DOLE Advisory No. 02-04)
compressed work week
2
HOURS OF WORK
A. WAITING TIME
R
considered as hours worked if:
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L
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S
a.
waiting is an integral part of his work;
b.
the employee is required or engaged by the employer to wait; or
c.
when the employee 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 (IRR of Labor Code, Book III, Rule 1, Section
5)
NOTE:
The 30-minute assembly time practiced by the employees of the company cannot be
considered as “waiting time” since they are not subject to the absolute control of the company
during this period. (Arica v. NLRC, GR No. 78210, February 28, 1989)
2
HOURS OF WORK
B. PRELIMINARY and POSTLIMINARY ACTIVITIES
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PRELIMINARY ACTIVITIES (before work) NOT COMPENSABLE
U
(e.g. preparation for business presentation)
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E
S
POSTLIMINARY ACTIVITIES (after actual work) COMPENSABLE when:
1.
controlled or required by the employer; and
2.
pursued necessarily and primarily for the employer's benefit
2
HOURS OF WORK
C. TRAVEL TIME
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TRAVEL FROM HOME TO WORK
U
•
not compensable, not considered work time
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E
S
E
1.
where the worker is made to work on an emergency call and travel
is necessary in proceeding to the workplace;
2.
travel is done through a conveyance provided by the employer;
3.
travel is done under the supervision and control of the employer;
and
4.
travel is done under vexing and dangerous circumstance
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2
HOURS OF WORK
C. TRAVEL TIME
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TRAVEL THAT IS ALL IN A DAY'S WORK
•
the time spent by an employee in travel as part of his principal activity
like travel from jobsite to jobsite during workday
•
compensable and must be counted as hours worked
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E
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TRAVEL AWAY FROM HOME
•
compensable and considered as work time when it cuts across an
employee's workday because it substitutes for hours that the
employee should have been in the office
2
HOURS OF WORK
D. POWER INTERRUPTIONS
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•
brownouts not exceeding 20 minutes shall be treated as hours worked
U
•
brownouts running for more than 20 minutes may not be treated as
hours worked, provided that any of the following conditions are present:
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S
a.
employees can leave their workplace or go elsewhere
b.
employees can use the time effectively for their own interest
3
MEAL PERIODS
MEAL PERIODS
it shall be the duty of every employer to give his employees not less
than 60 MINUTES TIME-OFF for their regular meals (Article 85)
3
MEAL PERIODS
1.
R
U
Association, GR No. L-16275, February 24, 1961)
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Should NOT be less than 60 MINUTES. it is non-compensable except where
during the so-called meal period, the laborers are required to standby for
emergency work, or said meal hour is not one of complete rest, such period
is considered OVERTIME (PanAm World Airways System v. PanAm Employees
2.
May be less that 60 minutes, but should NOT be less than 20 MINUTES and
the shortened mealtime must be with FULL PAY, under the following
circumstances:
a.
where the work is non-manual work in nature or does not involve
strenuous physical exertion
b.
where the establishment regularly operates not less than 16 hours a
day
3
MEAL PERIODS
c.
in cases of actual or impending emergencies or there is urgent work
to be performed on machineries, equipment or installations to avoid
serious loss which the employer would otherwise suffer; or
d.
when the work is necessary to prevent serious loss of perishable
goods
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3.
Rest Periods or coffee breaks running from 5-20 MINUTES shall be
considered as compensable work (IRR of Labor Code, Book III, Rule 1, Section
7)
NOTE:
Meal periods during overtime work or not given to workers. This is due to the fact the OT work
is usually for a short period ranging from 1 hour to 3 hours and to deduct from the same one full
hour as meal period may reduce the employee's OT work to nothing
3
MEAL PERIODS
Shortened Meal Break upon Employees' Request
- employees may request that their meal period be shortened so that they can leave work
earlier than the previously established schedule
- that shortened meal time is not compensable
NOTE:
The 8-hour work period does not include the meal break. Nowhere in the law may be inferred that
employees must take their meals within the company premises. Employees are not prohibited from going out
of the premises as long as they return to their posts on time (PAL v. NLRC, GR No. 132805, February 2, 1999)
4
NIGHT SHIFT DIFFERENTIAL
who is NIGHT WORKER?
• any employed person whose work requires performance of a substancial
number of hours of night work which exceed a specified limit (Article 154)
4
NIGHT SHIFT DIFFERENTIAL
what is NIGHT SHIFT DIFFERENTIAL?
• it is an additional compensation of not less than 10% of an employees
regular wage for every hour of work done between 10 PM and 6 AM
(Article 86)
4
NIGHT SHIFT DIFFERENTIAL
General Rule:
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All employees are entitled to NSD
1.
those provided under Article 82 of the Labor Code
2.
Employees of retail and service establishments regularly
employing not more than 10 workers (IRR of Labor Code, Book
III, Rule 2, Section 1(b))
4
NIGHT SHIFT DIFFERENTIAL
NSD in Overtime Work
•
if work done between 10 PM and 6 AM is overtime work, then though 10%
night shift differential should be based on the overtime rate
REASON:
NSD pay is given as a premium for working at the time when the employee is supposed to
sleep and rest in accordance with the law of nature
NSD not Waivable
•
additional compensation for nighttime work is founded on public policy,
therefore not waivable (Mercury Drug v. Dayao, GR No. L-30452, September
30,1982)
except: for higher and bigger benefits
4
NIGHT SHIFT DIFFERENTIAL
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A. Without Overtime
[10% x Regular Wage Per Hour x No. of Hours of Work Performed between 10pm-6am]
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Daily
Wage
Work
Schedul
e
800
Daily Wage
Add: NSD Pay (100 x 10% x 4 hours)
6:00 pm - 2:00 am
Total Wage Earned
800
40
840
4
NIGHT SHIFT DIFFERENTIAL
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B. With Overtime
[10% x OT Wage Per Hour x No. of Hours of Work Performed between 10pm-6am]
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N
OT rate per hour [100 + (100 x 25%)]
Daily
Wage
800
Work
Schedule
8:00 am - 5:00 pm
Overtime
5:00 pm to 12:00 mn
Hours worked as OT (5pm-12mn)
125
7 Hours
Overtime Premium Pay
875
Regular Basic Wage (8 hours x 100)
800
Add: OT Pay from 5pm - 12mn
875
Add: NSD Pay (2 hours x 12.50)
25
Total Wage Earned
1,700
5
OVERTIME WORK
what is OVERTIME PAY?
OVERTIME
PREMIUM RATE
• is an additional compensation for work performed
BEYOND 8 HOURS within the worker's 24 hour
workday regardless whether the work covers 2
on Rest Day = 30% of
Regular Wage
calendar days
Basis for Computation of OT Pay:
on Regular Work Day = 25%
of Regular Wage
REGULAR WAGE
§ regular wage includes cash wage only, without any deduction
on account of the facilities provided by the employer (Article 90)
5
OVERTIME WORK
Conditions to be entitled to Overtime Pay:
1.
actual rendition of overtime work
2. submission of sufficient proof that said work was actually performed
3. overtime work is with the knowledge and consent of the employer
5
OVERTIME WORK
Factual and Legal Basis for Claim
General Rule:
An express instruction from the employer is not
required it is sufficient to the employee is permitted
or suffered to work
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on rest days and holidays, written authority after office hours is
required for entitlement to compensation
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N
NOTE:
A verbal instruction to render overtime work prevails over a memorandum
prohibiting such work (AL Ammen Transportation v. Borja, GR No. L-17750, August
31, 1962)
5
OVERTIME WORK
BUILT IN OVERTIME PAY
OT Pay integrated in the Basic Salary
• stipulation between employer and employee that the latter's regular basic
salary already includes overtime pay is not per se illegal
• this is also called composite or package pay or all-inclusive salary
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E
1.
and
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clear written agreement knowingly and freely entered into by employee;
2.
mathematical result shows that the agreed legal wage rate and overtime
pay, computed separately, are equal to or higher than the separate
amounts legally due
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OVERTIME WORK
WAIVER OF OVERTIME PAY
• OT pay cannot be waived expressly or implied Lee. Any contrary
stipulation is NULL AND VOID, as it is intended to benefit laborers and
employees
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1.
may be more than what will accrue to them in overtime pay
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when the waiver is made in consideration of benefits and privileges which
2.
Compressed Work Week
5
OVERTIME WORK
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A. Regular Workday
[Regular Basic Wage + 25% of Regular Basic Wage]
U
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R
A
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N
Daily
Wage
800
Work
Schedul
e
8:00 am to 5:00 pm
(inclusive of 1 hour
meal break)
Overtim
e
5:00 pm to 10:00
pm
OT rate per hour [100 + (100 x 25%)]
Hours worked as OT
125
5 Hours
Total Overtime Pay
625
Regular Basic Wage
800
OT Pay
625
Total Wage Earned
1,425
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OVERTIME WORK
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B. Legal or Regular Holiday
[Holiday Wage Rate (200%) + 30% of Holiday Rate]
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R
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N
Daily
Wage
800
Work
Schedul
e
8:00 am to 5:00 pm
(inclusive of 1 hour
meal break)
Overtim
e
5:00 pm to 10:00
pm
OT rate per hour [200 + (200 x 30%)]
Hours worked as OT
260
5 Hours
Total Overtime Pay
1,300
Holiday Wage Rate (800 x 200%)
1,600
OT Pay
1,300
Total Wage Earned
2,900
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OVERTIME WORK
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C. Rest Days or Special Holidays
[Rest Day or Special Holiday Wage Rate (130%) + 30% of Rest Day or Special Holiday Wage Rate]
U
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T
R
A
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N
Daily
Wage
800
Work
Schedul
e
8:00 am to 5:00 pm
(inclusive of 1 hour
meal break)
Overtim
e
5:00 pm to 10:00
pm
OT rate per hour [(100 x 130%) + 30%]
Hours worked as OT
Total Overtime Pay
Rest Day or Special Holiday Wage Rate
(800 x 130%)
OT Pay
Total Wage Earned
169
5 Hours
845
1,040
845
1,885
5
OVERTIME WORK
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D. Scheduled Rest Day which is also a Special Holiday
L
[Rest Day and Special Holiday Wage Rate (150%) + 30% of Rest Day and Special Holiday Wage
U
Rate]
S
Daily
Wage
800
Work
Schedul
e
8:00 am to 5:00 pm
(inclusive of 1 hour
meal break)
Overtim
e
5:00 pm to 10:00
pm
T
R
A
T
I
O
N
OT rate per hour [(100 x 150%) + 30%]
Hours worked as OT
Total Overtime Pay
Rest Day and Special Holiday Wage
Rate (800 x 150%)
OT Pay
Total Wage Earned
195
5 Hours
975
1,200
975
2,175
5
OVERTIME WORK
I
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E. Scheduled Rest Day which is also a Legal or Regular Holiday
L
[Rest Day and Regular Holiday Wage Rate (260%) + 30% of Rest Day and Regular Holiday Wage
U
Rate]
S
Daily
Wage
800
Work
Schedul
e
8:00 am to 5:00 pm
(inclusive of 1 hour
meal break)
Overtim
e
5:00 pm to 10:00
pm
T
R
A
T
I
O
N
OT rate per hour [(100 x 260%) + 30%]
Hours worked as OT
338
5 Hours
Total Overtime Pay
1,690
Rest Day and Regular Holiday Wage
Rate (800 x 260%)
2,080
OT Pay (338 x 5)
1,690
Total Wage Earned
3,770
5
OVERTIME WORK
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E. Double Holiday
[Double Holiday Wage Rate (300%) + 30% of Double Holiday Wage Rate]
U
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T
R
A
T
I
O
N
Daily
Wage
800
Work
Schedul
e
8:00 am to 5:00 pm
(inclusive of 1 hour
meal break)
Overtim
e
5:00 pm to 10:00
pm
OT rate per hour [(100 x 300%) + 30%]
Hours worked as OT
390
5 Hours
Total Overtime Pay
1,950
Double Holiday Wage Rate (800 x
300%)
2,400
OT Pay (390 x 5)
1,950
Total Wage Earned
4,350
5
OVERTIME WORK
UNDERTIME NOT OFFSET BY OVERTIME
• offsetting of undertime work for overtime work under the same or any
other day is prohibitted by law (Article 88)
• permission given to the employee to go on leave on some other day of the
week shall not exempt employee from paying additional compensation
(Article 88)
5
OVERTIME WORK
EMERGENCY OVERTIME WORK
General Rule: Employees cannot be compelled to render overtime work
against their will
5
OVERTIME WORK
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a. When the country is at war or when any other national or local emergency has been declared by
the National Assembly 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 eighth hour is necessary to
prevent serious obstruction or prejudice to the business or operations of the employer (Article
89)
EMERGENCY OVERTIME WORK
6
REST PERIOD
RIGHT TO A WEEKLY REST DAY
• not less than 24 CONSECUTIVE HOURS after every 6 consecutive normal
work days (Article 91)
NOTE:
All establishments and enterprises may operate or open for business on Sundays and
holidays provided that the employees are given the weekly rest day and the benefits
provided under the law (IRR of Labor Code, Book III, Rule III, Section 2)
6
REST PERIOD
who determines WEEKLY REST DAYS?
the EMPLOYER determines and schedules the weekly rest perios subject to
the following:
a. collective bargaining agreement
b. rules and regulations issued by the Secretary of Labor
c. employee's preference based on religious grounds
6
REST PERIOD
When Employer May Require Work on Rest Day
a. In case of actual or impending emergencies caused by serious accident, 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;
6
REST PERIOD
When Employer May Require Work on Rest Day
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 and Employment. (Article 89)
6
REST PERIOD
ADDITIONAL COMPENSATION for Work on a Rest Day
DAY
RATE OF ADDITIONAL COMPENSATION
Work on a Scheduled Rest Day
30% of Regular Wage
No Regular Workdays and No Specific Rest Day
30% of Regular Wage for work performed on
Sundays and holidays
Work on Sundays when it is his established Rest
Day
30% of Regular Wage
Work on Special Holiday
30% of Regular Wage
Work on Special Holiday falling on Scheduled Rest
Day
50% of Regular Wage
Work on Regular Holiday falling on a Scheduled
Rest Day
260% of Regular Wage
7
holiday pay
what is HOLIDAY PAY?
• refers to the payment of the regular daily wage for any unworked regular
holiday (Handbook on Workers' Statutory Monetary Benefits, Bureau of
Working Conditions, 2016)
• every worker shall be paid equivalent to REGULAR DAILY WAGE (Article 94)
• does not apply to employees of retail and service establishment regularly
employing not less than 10 workers (Article 94)
• employer may require an employee to work on any holiday but shuch
employee shall be paid equivalent to TWICE his REGULAR DAILY WAGE
(Article 94)
7
holiday pay
List of REGULAR HOLIDAY, as amended by RA 9492
New Year's Day
January 1
Maundy Thursday
movable date
Good Friday
movable date
Araw ng Kagitingan
April 9
Labor Day
May 1
Independence Day
June 12
National Heroes Day
Last Monday of August
Bonifacio Day
November 30
Christmas Day
December 25
Rizal Day
December 30
Eid'l Fitr
movable date
Eid'l Adha
movable date
7
holiday pay
List of SPECIAL HOLIDAY
Ninoy Aquino Day
August 21
All Saint's Day
November 1
Feast of the Immaculate Concepcion
December 8
Chinese New Year
movable date
Special Non-Working Days
Special Public Holidays
Special National Holidays
7
holiday pay
MUSLIM HOLIDAYS, recognized under PD 1083
Amun Jadid (New Year)
falls on the 1st day of the lunar month of
Muharam
Maulud un-Nabi (Birthday of Prophet Muhammad)
falls on the 12th day of the 3rd lunar
month of Rabi-ul Awwal
Lailatul Isra Wal Miraj (Nocturnal Journey and
Ascencion of the Prophet Muhammad)
falls on the 27th day of the 7th lunar
month of Rajab
7
holiday pay
MUSLIM HOLIDAYS
•
observed only in specified areas
in provinces of Basilan, Lanao del Norte, Lanao del Sur, Maguindanao, North Cotabato,
Sultan Kudarat, Sulu, Tawi-Tawi, Zamboanga Del Norte, Zamboanga Del Sur, and in in
such other Muslim provinces and cities as they may be created by law
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observed by other cities or entire Philippines:
1.
Eid'l Fitr and Eid'l Adha
2.
when proclaimed by the president
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holiday pay
MUSLIM HOLIDAYS
Rule on Compensability
§ it is compensable whether worked or unworked subject to
certain conditions
NOTE:
There must be NO distinction between Muslims and non-Muslims with regard to payment of benefits
for Muslim Holidays
- wages and other emoluments are laid down by law and not based on faith and religion (San
Miguel Corp. v. CA, GR No. 146775, January 30, 2002)
7
holiday pay
Rule on Holiday Pay of Teaching Personnel Paid Per Lecture Hour
a.
they are not entitled to payment of holiday pay because they are paid only for
work actually done
§
b.
regular holidays are known to both schools and faculty members as NO
CLASS DAYS, certainly the latter do not expect payment for said
unworked days
however, they are entitled to the regular hourly rate on days declared as special
holidays or when classes are called off or shortened on account of the
typhoons, floods, rallies, and the like because the faculty member, although
forced to take a rest, does not earn what he should turn on that day
7
holiday pay
For REGULAR HOLIDAYS
I. During Employee's REGULAR WORKDAY
a.
if unwoked - (Daily Rate + Cost of Living Allowance) x 100%
b.
if worked:
§ first 8 hours - (Daily Rate + COLA) x 200%
§ excess of 8 hours - (Hourly Rate of Basic Daily Wage x 200% x 125% x
Number of Hours Worked)
7
holiday pay
For REGULAR HOLIDAYS
II. During Employee's REST DAY
a.
if unwoked - (Daily Rate + Cost of Living Allowance) x 100%
b.
if worked:
§ first 8 hours - [(Daily Rate + COLA) x 200%] + 30%]
§ excess of 8 hours - (Hourly Rate of Basic Daily Wage x 200% x 130% x
Number of Hours Worked)
7
holiday pay
For SPECIAL HOLIDAYS
a.
if unwoked - NO PAY
b.
if worked:
§ first 8 hours - [(Daily Rate X 130%) + COLA]
§ excess of 8 hours - (Hourly Rate of Basic Daily Wage x 200% x 130% x
Number of Hours Worked)
c.
falling on the employee's REST DAY and if worked
§ first 8 hours - [(Daily Rate x 150%) + COLA]
§ excess of 8 hours - (Hourly Rate of Basic Daily Wage x 150% x 130% x
Number of Hours Worked)
7
holiday pay
DOUBLE HOLIDAY PAY
§
two regular holiday falls on the same day
a.
200% of the basic wage
§
entitled even if said holiday is unworked
b.
300% if he worked on 2 regular holidays falling on the same day
c.
330% if he reported for work on a double holiday which is also his rest day
§
entitled to additional 30% based on the rate of 300% for that day
7
holiday pay
SINGLE HOLIDAY RULE
provided that employee:
a. worked
b. was on leave with pay
c. was on authorized absence on the
day prior to the regular holiday
Wednesday
Thursday
Friday
ENTITLED TO
HOLIDAY PAY?
Present
Rest Day
Regular
Holiday
YES
Absent with
Pay
Rest Day
Regular
Holiday
YES
Absent
without Pay
Rest Day
Regular
Holiday
NO
Present
Special Day
Regular
Holiday
YES
Absent with
Pay
Special Day
Regular
Holiday
YES
Absent
without Pay
Special Day
Regular
Holiday
NO
7
holiday pay
SUCCESSIVE REGULAR HOLIDAY
to be entitled to 2 successive holidays, the
employee must:
a. be present on the day
immediately preceding the first
holiday, OR
b. be on leave with pay
otherwise, he must WORK on the FIRST
holiday to be entitled to holiday pay on the
second holiday
Wednesday
Thursday
Friday
ENTITLED TO
HOLIDAY PAY?
Present
Regular
Holiday
Regular
Holiday
YES
Absent with
Pay
Regular
Holiday
Regular
Holiday
YES
Absent
without Pay
Regular
Holiday
Regular
Holiday
NO
Worked
Regular
Holiday
YES but only to
the SECOND
HOLIDAY
Absent
without Pay
8
13TH MONTH pay
what is 13th MONTH PAY?
•
it is a form of monetary benefit equivalent to the monthly basic compensation
received by an employee, completed pro-rata according to the number of
months within a year that the employee has rendered services to the
employer (Handbook on Workers' Statutory Monetary Benefits, Bureau of Working
Conditions)
MINIMUM AMOUNT:
it should not be less than 1/12 of the basic salary of an
employee within a calendar year (Revised Guidelines of PD 851,
Section 4)
LEAVES
1
SERVICE INCENTIVE LEAVE
2
MATERNITY LEAVE
PATERNITY LEAVE
PARENTAL LEAVE FOR SOLO PARENT
3
4
1
SERVICE INCENTIVE LEAVE
what is SERVICE INCENTIVE LEAVE?
• it is a 5-DAY LEAVE with pay for every employee who has rendered at least
1 year of service (Article 95)
“at least 1 year of service”
§
Is a service within 12 months, whether continuous or broken, reckoned
from the date the employee started working including authorized absences
and paid regular holidays unless the number of working days in the
establishment, as a matter of practice or policy or is provided in the
employment contract, is less than 12 months
1
SERVICE INCENTIVE LEAVE
E
X
C
E
P
T
I
O
N
S
NOT APPLICABLE to:
1.
those mentioned in Article 82
2.
those already enjoying vacation leave with pay for at least 5 days
3.
those already enjoying said benefits
4.
those employed in establishments regularly employing less than 10 workers
1
SERVICE INCENTIVE LEAVE
CONVERSION TO MONETARY EQUIVALENT
•
SIL is commutable or convertible to cash if NOT USED or exhausted at the end
of the year
§ aimed primarily at encouraging Workers that were continuously and with
dedication to the company
E
X
C
E
P
T
I
O
N
under the Kasambay Law, domestic worker who rendered 1-year of service
is entitled to 5 DAYS SIL, but unused SIL is not cumulative.
§ it CANNOT be carried over to the succeeding year and NOT
CONVERTIBLE TO CASH
1
SERVICE INCENTIVE LEAVE
VACATION LEAVE and SICK LEAVE
•
not statutorily required
•
it is a matter of MANAGEMENT DISCRETION or a product of Collective
Bargaining Agreement
•
it can be WAIVED, merely considered a concession or act of grace of the
employer
1
SERVICE INCENTIVE LEAVE
SERVICE INCENTIVE LEAVE
VACATION LEAVE / SICK LEAVE
as to compliance
VOLUNTARY, grants results from employer's
discretionary policy or CBA
MANDATORY, legally required
as to purpose
intended to alleviate the economic condition of the
workers for it acts as a replacement for regular income
that would not be earned showing such instance
intended to afford the labor a chance to get as much
needed rest to replenish his worn out energies and
acquire new vitality to enable him to efficiently perform
his duties and not merely to give him additional salary
ast to waiver
cannot be waived
must be demanded in its opportune time, otherwise,
silence would equate to waiver, the same being a mere
concession or act of grace of employer
as to commutability
commutable
not commutable
2
maternity LEAVE
who are covered?
1.
Female Workers in the Public Sector
2.
Female Workers in the Private Sector
3.
Female Workers in Informal Economy
4.
Female Members who are Voluntary Contributors to the SSS
5.
Female National Athletes
2
maternity LEAVE
what benefits are granted?
FOR CHILDBIRTH
1.
105 DAYS with FULL PAY regardless if the delivery was normal or caesarian
2.
in case the employee qualifies as a solo parent, she shall be paid an additional
maternity benefit of 15 DAYS
3.
an OPTION TO EXTEND for an additional 30 DAYS WITHOUT PAY
FOR MISCARRIAGE or EMERGENCY TERMINATION
1.
60 DAYS maternity leave WITH FULL PAY shall be granted
2
maternity LEAVE
when may be enjoyed?
§ enjoyment of maternity leave cannot be deferred but should be availed of
either before or after the actual period of delivery in a continuous and
uninterrupted manner, not exceeding 105 days, as the case may be
3
paternity LEAVE
what is PATERNITY LEAVE?
•
it refers to the benefits granted to a married male employee allowing him
not to report for work for 7 DAYS but continues to earn the compensation
therefor (Section 3)
§ on the condition that his spouse has deliverd a child or suffered a
miscarriage for enabling him to effectively lend support to his wife
in her period of recovery and/or in the nursing of the newly-born
child (Section 3)
3
paternity LEAVE
COVERAGE:
every MARRIED MALE in the private sector shall be entitled to paternity leave
benefits of 7 DAYS with FULL PAY for the first four deliveries by his lawful
spouse under such terms and conditions as provided by law
CONDITIONS OF ENTITLEMENT:
1. he is an employee at the time of delivery of his child
2. he is cohabiting with his spouse at the time she gives births or suffer
miscarriage
3. he has applied for paternity leave with his employer
4. his wife has given birth or suffered a miscarriage
5. covers only the first four deliveries or miscarriages
4
parental LEAVE for solo parent
who is a SOLO PARENT?
1. A woman who gives birth as a result of rape and other crimes against chastity even
without a final conviction of the offender: Provided, That the mother keeps and raises the
child;
2. Parent left solo or alone with the responsibility of parenthood due to death of spouse;
3. Parent left solo or alone with the responsibility of parenthood while the spouse is
detained or is serving sentence for a criminal conviction for at least one (1) year;
4. Parent left solo or alone with the responsibility of parenthood due to physical and/or
mental incapacity of spouse as certified by a public medical practitioner;
4
parental LEAVE for solo parent
who is a SOLO PARENT?
5. Parent left solo or alone with the responsibility of parenthood due to legal separation or
de facto separation from spouse for at least one (1) year, as long as he/she is entrusted
with the custody of the children;
6. Parent left solo or alone with the responsibility of parenthood due to declaration of nullity
or annulment of marriage as decreed by a court or by a church as long as he/she is
entrusted with the custody of the children;
7. Parent left solo or alone with the responsibility of parenthood due to abandonment of
spouse for at least one (1) year;
4
parental LEAVE for solo parent
who is a SOLO PARENT?
8. Unmarried mother/father who has preferred to keep and rear her/his child/children
instead of having others care for them or give them up to a welfare institution;
9. Any other person who solely provides parental care and support to a child or children;
10. Any family member who assumes the responsibility of head of family as a result of the
death, abandonment, disappearance or prolonged absence of the parents or solo parent
4
parental LEAVE for solo parent
CHILDREN
1. those living with and dependent upon the solo parent for support who are
unmarried, unemployed and not more than 18 years old
2. those even over 18 years old but are incapable of self- support because of
mental and/or physical defect
4
parental LEAVE for solo parent
what is PARENTAL (SOLO PARENT) LEAVE?
•
leave benefits granted to a solo parent to enable him/her to perform parental
duties and responsibilities where physical presence is required (Section 6, IRR of
RA 8972)
•
in addition to leave privileges under existing laws, parental leave of not more
than 7 WORKING DAYS every year shall be granted to any solo parent
employee who has rendered service of at least 1 year (Section 18, IRR of RA 8972)
•
7-DAY Parental Leave shall be NON-CUMULATIVE (Section 18, IRR of RA 8972)
4
parental LEAVE for solo parent
CONDITIONS OF ENTITLEMENT:
1. rendered at least 1 year of service
2. has notified the employer of the availment thereof within a
reasonable period
3. presented a Dolo Parent Identification Card to his/her
employer which may be obtained from the DSWD Office of
the city or municipality where he/she resides
- end -