Primer on Labor Standards
What are labor standards?
Labor standards refer to conditions of employment that employers must give to
their employees such as normal hours of work, daily rest period, weekly rest period,
holidays, leaves, and wages.
Who are entitled these labor standards?
ALL employees in private establishments except managerial employees, field
personnel, members of the family of the employer who are dependent on him for
support, domestic helpers, persons in the personal service of another, and workers
who are paid by results.
What are the Normal hours of work
In general, the normal hours of work of any employee shall not exceed eight (8)
hours a day.
When does an employee become entitled to compensation?
An employee is entitled to compensation during (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.
Is an employee entitled to a meal/break period?
Yes, every employer to give his employees not less than sixty (60) minutes timeoff for their regular meals. This is not compensable
Are rest/meal periods compensable?
Rest/meal periods of short duration (less than one hour) during working hours
shall be counted as hours worked and therefore compensable. This includes
bathroom breaks, coffee breaks, etc.
When is rest/meal period NOT compensable?
Rest/meal periods of short duration (less than one hour) during working hours
shall be counted as hours worked. This includes bathroom breaks, coffee breaks,
etc.
Can an employee be legally required to render work beyond the eight (8) hours
(overtime work)?
Yes, provided that an additional compensation (overtime pay) equivalent to his
regular wage plus at least twenty-five percent (25%) is paid to the employee.
Overtime work rendered during a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight hours on a holiday or rest day
plus at least thirty percent (30%)
What is Night shift differential premium?
This refers to additional compensation for work performed between ten o’clock in
the evening and six o’clock in the morning.
Every employee shall be paid a night shift differential of not less than ten percent
(10%) of his regular wage for each hour.
How many rest days is an employee entitled to ?
An employer is required to give an employee a rest day of not less than 24
consecutive hours or 1 day for every 6 days of work which should be scheduled
by the employer upon consultation with the employees.
How much is an employee entitled to if he is required to work on a rest day?
He is entitled to an additional compensation of at least thirty percent (30%) of his
regular wage.
Who controls the employee’s schedule, place of assignment, method of work,
processes, transfers, discipline, dismissal, recall etc.?
It is the employer who has the power regulate all aspects of employment,
including work assignment, working methods, processes to be followed, working
regulations, transfer of employees, work supervision, lay-off of workers and the
discipline, dismissal and recall of workers.
What are the regular, and special non-working holidays in the Philippines?
Regular Holidays
New Year’s Day – January
Maundy Thursday – April 1,
Good Friday – April 2
Araw ng Kagitingan – April 9
Labor Day – May 1
Eid’l Adha –
Eid’l Fitr –
Independence Day – June 12
National Heroes’ Day – August 30
Bonifacio Day – November 30
Christmas Day – December 25
Rizal Day – December 30
Special Holidays
Chinese New Year February 12
EDSA People Power Revolution February 25
Black Saturday April 3
Ninoy Aquino Day August 21
All Saints' Day November 1
Feast of the Immaculate Conception of Mary December 8
How much compensation is an employee entitled to during a regular holiday?
a. If it is an employee’s regular workday
 If unworked, employee shall be paid 100% of his/her daily rate – (Daily Rate
x 100%)
 If worked, employee shall be paid 200% of his/her daily rate for the 8 hours
– (Daily Rate x 200%)
 Excess of 8 hours – plus 30% of hourly rate on said day
b. If it is an employee rest day
 If unworked – 100%
 If worked – 1st 8 hours – plus 30% of 200%
 Excess of 8 hours – plus 30% of hourly rate on said day
How much compensation is an employee entitled to during a special nonworking holiday?
Work performed on any special holiday shall be paid an additional compensation
of at least thirty percent (30%) 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 per cent (50%) of his regular wage.
Who determines the minimum wage?
The Regional Tripartite Wages and Productivity Boards.
What is the present minimum wage in Region III?
PhP420.00 per Wage Order No. RBIII-22, effective January 1, 2020
Are there exemptions to the minimum wage
1) Distressed establishments;
2) New business enterprises (NBEs);
3) Retail/Service establishments employing not more than ten (10) workers;
4) Establishments adversely affected by natural calamities
5) Barangay Micro Business Enterprises
6) Kasambahay (automatic exemption)
Is the exemption automatic?
No, the owner of the establishment must file an application for exemption,
together with supporting documents, with the appropriate Regional Board which
will review the application and determine whether the grant of exemption is
warranted.
Forms of payment of wages
Generally in legal tender (Philippine Peso).
Time of payment
Wages shall be paid at least once every two (2) weeks or twice a month at intervals
not exceeding sixteen (16) days. If on account of force majeure or circumstances
beyond the employer’s control, payment of wages on or within the time herein
provided cannot be made, the employer shall pay the wages immediately after
such force majeure or circumstances have ceased. No employer shall make
payment with less frequency than once a month.
Place of payment
Payment of wages shall be made at or near the place of undertaking, except as
otherwise provided by such regulations as the Secretary of Labor and
Employment may prescribe under conditions to ensure greater protection of
wages
Is payment by bank allowed?
Yes, in fact it is encouraged (LA 26-2020), and as long as the employee consents.