LABOR LAW REVIEW NOTES ON WORKING CONDITIONS Labor Code Provisions Title I Working Conditions and Rest Periods

s Arts. 82 96 Hours of Work Art. 82. Coverage The provisions of this Title shall apply: = to all employees in all establishments and undertakings = whether or profit or not. But shall not apply to: a. Government employees b. Managerial employees c. field personnel d. members of the family of the employer who are dependent on him for support e. domestic helpers f. person in the personal service of another g. workers who paid by results as determined by Sec. of DOLE. Art. 83 Normal Hours of Work The normal hours of work of any employee shall not exceed eight (8) hours per day. Work Hours for health personnel: Eight (8) hours a day, five days a week for: = cities and municipalities with a population of 1M; or = in hospitals and clinics with a bed capacity of 100 = exclusive of time for meals; Except: = where the exigencies of the service require that such personnel = work for six (6) days or 48 hours = in which case: = shall be entitled to an additional compensation of at least 30% of their regular wage for work on the 6th day Health personnel shall include: a. resident physicians b. nurses c. nutritionists d. dieticians e. pharmacists f. social workers g. laboratory technicians h. psychologists i. midwives j. attendants k. and all other hospital personnel Art. 84. Hours Worked: Hours worked shall include: a. all time during which an employee is required to be on duty = or to be at a prescribed workplace; and b. all the time during which an employee is suffered or permitted to work. Rest periods of short duration during working hours shall be counted as hours worked. Art. 85. Meal Periods Subject to such regulations as the Sec. of Labor may prescribe,
1

= it shall be the duty of every employer to give his employees = not less than 60 minutes (1 hour) time-off for their regular meals. Art. 86. Night Shift Differential Every employee shall be paid a night shift differential = of not less than 10% of his regular wage = for each hour performed = between 10 oclock in the evening and 6 oclock in the morning. Art. 87. Overtime Work Work may be performed beyond 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 25% of his regular wage Worked performed beyond 8 hours on a holiday or rest day = shall be paid an additional compensation equivalent to the rate of the first 8 hours on a holiday or rest day = plus at least 30% of his rate of the first 8 hours on a holiday or rest day Art. 88. Undertime not Offset by Overtime Undertime work on any particular day = shall not be offset by overtime work on any other day. Permission given to 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. Art. 89. - Emergency Overtime Work (Compulsory Overtime) 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 the 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 fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity. (force majeure) c. when there is urgent work to be performed = on machines, installation, 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 8th is necessary = to prevent serious obstruction or prejudice to the business operations of the employer.
Additional instance which authorizes compulsory overtime (under IRR of the Labor Code)

f. when it is necessary to avail of favorable weather or environmental conditions = where the performance or quality of work is dependent thereon. Any employee required to render overtime work under this Artcle shall be paid additional compensation required in this Chapter.
2

In cases not falling within any of the enumerated cases or instances, No employee may be made to work beyond 8 hours a day against his will. Otherwise, it would result to involuntary servitude.

Art. 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. Refer to Art. 97(f) Definition of Wage = Wage paid to any employee shall mean: = the remuneration or earnings, however, designated, = capable of being expressed in terms of money, = whether fixed or ascertained on a time, task, piece or commission basis = or other method of calculating the same, = which is payable by an employer to an employee = under a written or unwritten contract of employment = for work done or to be done, = or for services rendered or to be rendered = and includes a fair and reasonable value, as determined by the Sec. of Labor, = of board, lodging, or other facilities customarily furnished by the employer to the employee. = Fair and reasonable value shall not include any profit to the employer or to any person affiliated with the employer. Article 90 of the Labor Code Should be modified or clarified = Cash Wage = necessarily excludes noncash value of facilities; = hence, saying without deduction on account of facilities is contradictory = but if only the cash wage is the basis of overtime rate = it is unfair to the worker because as defined in Art. 97(f), = wage includes the value of the facilities, hence the value of facilities should not be excluded when computing overtime pay. = therefore, overtime rate should be based on the regular wage which is understood to include the value of facilities.

HOURS OF WORK: 1. Art. 82 Coverage/Exclusions (Title I)

3

Art. 82. Coverage The provisions of this Title shall apply: = to all employees in all establishments and undertakings = whether or profit or not. But shall not apply to: a. Government employees b. Managerial employees c. field personnel d. members of the family of the employer who are dependent on him for support e. domestic helpers f. person in the personal service of another g. workers who paid by results as determined by Sec. of DOLE.

Preliminary Discussion: General Right of Employment over Conditions of Employment: Conditions of employment are laid down by: = law, Book III of the Labor Code; or = contract, concluded individually with an employee or collectively with a group = possible that certain conditions of employment arise from established practice in the enterprise as contemplated in Art. 100 of the Labor Code Two kinds of employment conditions: a. Statutory = employment conditions which are provided for by law b. Voluntary = initiated by the employer unilaterally or by contractual stipulation Except as limited by special laws = an employer is free to regulate according to his own discretion and judgment = all aspects of employment such as: = hiring, = work assignments = working methods = time, place and manner of work = tools to be used = processes to be followed, = supervision of workers = working regulations = transfer of employees = work supervision = lay-off of workers = and discipline, dismissal and recall of workers This is an exercise of management prerogative = so long as the companys prerogatives are exercised in good faith for the advancement of the employers interest and not for the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements, the SC will uphold them. Efforts of business to strengthen is competitiveness, especially in the present state of global commerce, = should be viewed as legitimate, = unless, violative of a law or the basic principle of justice and fairness. To illustrate: = an employer, to make its salary rates competitive, = may lawfully devise and implement a new salary applicable only to future employees. = the employer may determine the effectivity date of the new scale = he may even have their salary adjusted upward if their rates are below the hiring rates

= but those who do not fall within the effectivity date have no right to demand upward adjustment of their rates nor can they demand restoration of their previous pay advantage. = such contraction of gaps may be considered a salary distortion, = but because this is not a salary distortion brought about by compliance with a government wage order, = the employer has no legal obligation to rectify the resulting distortion consisting of reduced pay gaps between the old and new hires. = the legal duty to rectify a distortion applies to government-mandated wage increase under Art. 124, = but not to increases voluntarily initiated by the employer, = unless, such duty exists under a CBA stipulation or binding and established company practice.
Salary Distortion = it s situation where an increase in prescribes wage rates results in elimination or severe contraction of intentional quantitative differences in wage or salary rates = between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation. = it results from disappearance or virtually disappearance of pay differentials (between lower and higher positions or between senior and junior employee) because of compliance with a wage order. = for distortion to exist, the law does not require an elimination or total abrogation of quantitative wage or salary differences; = a severe contraction thereof is enough.

Excluded Employees from the application of Art. 82 of the Labor Code: A. Government employees: = refer only to employees of government agencies, instrumentalities, or political subdivisions of the government = and GOCCs that are not incorporated under the Corporation Code, ie. those which have original charters. = they are not covered under this Title because the terms and conditions of their employment are governed by the Civil Service Law, rules and regulations = those GOCCs without original charter governed by the Labor Code. B. Managerial Employees Under Art. 82 = refer to those whose primary duty consists of the management of the establishment in which they are employed = or of a department or subdivision thereof = and to other officers or members of the managerial staff. Under Art. 212(m) = managerial employee is one who is = vested with the powers or prerogatives to lay down and execute = management policies and/or = to hire = transfer = suspend = lay-off = recall = discharge = assign = or discipline employees = supervisory employees are those who, in the interest of the employer,
5

= effectively recommend such managerial actions = if the exercise of such authority is not merely routinary or clerical in nature = but requires the use of independent judgment. Managerial employees a. they are the alter egos of their employers who meet the following conditions: 1. their primary duty consists of the management of the establishment in which they are employed, or of a department or subdivision thereof. 2. they customarily and regularly direct the work of two or more employees therein; 3. they have the authority to hire or fire other employees of lower rank = or their suggestions and recommendations as to the hiring and firing = and as to the promotion or any other change of status of other employees are given particular weight. b. they are not covered under this Title because they are employed by reason = of their special training, experience, knowledge; = value of their work cannot be measured in terms of hours. Managerial Employees (Art. 82) Used only for the purposes of Book III That is, working conditions, rest periods, entitlement to benefits One whose primary duty consists of the management of the establishment in which they are hired or of a department or subdivision thereof And to other members of the managerial staff Supervisors are deemed members of the managerial staff Elements to be considered a Member Managerial employees (Art. 212m) Used only for the purposes of Book V That is, forming and joining unions, certification elections, collective bargaining) One who is vested with powers or prerogatives to lay down and execute management policies And/or hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees Supervisors are not members of the managerial staff.