Labor Standards (Basic Rights, Hours of Work, Rest Period, Leave, Overtime Work, Minimum Wage)

State Policies with respect to Labor Law:
1987 Constitution
Art. II, Sec. 5
The maintenance of peace and order, the protection of life, liberty, and property, and promotion of the general welfare are essential for the
enjoyment by all the people of the blessings of democracy.
Art. II, Sec. 9
The State shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people
from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved
quality of life for all.
Art. II, Sec. 10
The State shall promote social justice in all phases of national development.
Art. II, Sec. 11
The State values the dignity of every human person and guarantees full respect for human rights.
Art. II, Sec. 13
The State recognizes the vital role of the youth in nation-building and shall promote and protect their physical, moral, spiritual, intellectual,
and social well-being. It shall inculcate in the youth patriotism and nationalism, and encourage their involvement in public and civic affairs.
Art. II, Sec. 14
The State recognizes the role of women in nation-building, and shall ensure the fundamental equality before the law of women and men.
Art. II, Sec. 18
The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare.
Art. II, Sec. 20
The State recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed
investments.
Art. III, Sec. 1
No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the
laws.
Art. III, Sec. 4
No law shall be passed abridging the freedom of speech, of expression, or of the press, or the right of the people peaceably to assemble and
petition the government for redress of grievances.
Art. III, Sec. 8
The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not
contrary to law shall not be abridged.
Art. III, Sec. 18(2)
No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have been duly convicted.
Art. XIII, Sec. 1
The Congress shall give highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity,
reduce social, economic, and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the
common good.
To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and its increments.
Art. XIII, Sec. 2
The promotion of social justice shall include the commitment to create economic opportunities based on freedom of initiative and self-
reliance.
Art. XIII, Sec. 3 (Provision on Labor)
The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of
employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities,
including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living
wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes
in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of
production and the right of enterprises to reasonable returns to investments, and to expansion and growth.
Art. XIII, Sec. 14
The State shall protect working women by providing safe and healthful working conditions, taking into account their maternal functions, and
such facilities and opportunities that will enhance their welfare and enable them to realize their full potential in the service of the nation.

BASIC RIGHTS OF WORKERS

1. Right to Security of Tenure
INNODATA PHILIPPINES INC. V. QUEJADA-LOPEZ
FACTS Respondents filed a case for illegal dismissal after they were terminated by Innodata after one year of employment; Innodata
contended that the respondents employment contract was only for a fixed period of one year.
HELD Fix-term employment contracts by Innodata were invalid, as it was utilized to avoid regularization of workers while circumventing the
employees right to security of tenure.

2. Right to Humane Conditions of Work
ISAE vs. HON QUISUMBING
FACTS ISAE pays its foreign-hires, a higher salary than its local-hires.

HELD Discrimination exists in this case, contrary to the Constitutional provision entitling labor to humane conditions of work which here,
refers to the manner by which employers treat their employees. Where the relations between capital and labor are often skewed in favor of
capital, inequality and discrimination by the employer are all the more reprehensible.

STATE POLICIES in other laws

Civil Code, Arts. 19-21
Art. 19. Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and
observe honesty and good faith.
Art. 20. Every person who, contrary to law, wilfully or negligently causes damage to another, shall indemnify the latter for the same.
Art. 21. Any person who wilfully causes loss or injury to another in a manner that is contrary to morals, good customs or public policy shall
compensate the latter for the damage
Civil Code, Arts. 1700-1701
Art. 1700. The relations between capital and labor are not merely contractual. They are so impressed with public interest that labor
contracts must yield to the common good. Therefore, such contracts are subject to the special laws on labor unions, collective bargaining,
strikes and lockouts, closed shop, wages, working conditions, hours of labor and similar subjects.
Art. 1701. Neither capital nor labor shall act oppressively against the other, or impair the interest or convenience of the public.

LABOR STANDARDS LAW

LABOR CODE, ART. 3: The State shall afford protection to labor, promote full employment, ensure 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-
organization, collective bargaining, security of tenure, and just and humane conditions of work.

HOURS OF WORK
Labor Code Art. 83
NORMAL HOURS OF WORK- The normal hours of work of any employee shall not exceed 8 hours a day.
Health personnel in cities and municipalities with a population of at least 1M or in hospitals and clinics with a bed capacity of at least 100
shall hold regular office hours for 8 hours a day, for 5 days a week, exclusive of time for meals, except where the exigencies of the service
require that such personnel work for 6 days or 48 hours, in which case they shall be entitled to an additional compensation of at least 30% of
their regular wage for work on the 6th day. For purposes of this Article, health personnel shall include resident physicians, nurses,
nutritionists, dieticians, pharmacists, social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants
and all other hospital or clinic personnel.

Labor Code Art. 84 (a)
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.
Omnibus Rules, Book III, Rule I, Sec. 3 (a)
Hours worked- the following shall be considered as compensable hours worked:
(a) All time during which an employee is required to be on duty or to be at the employers premises or to be at a prescribed workplace
Omnibus Rules, Book III, Rule I, Sec. 4 (a)
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 to his employer, regardless of whether or not such hours are
spent in productive labor or involve physical or mental exertion

Labor Code Art. 84 (b)
HOURS WORKED- Hours worked shall include x xx (b) all 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.
Omnibus Rules, Book III, Rule I, Sec. 3 (b)
Hours worked.- The following shall be considered as compensable hours worked:
X X X
(b) All time during which an employee is suffered or permitted to work.

BREAK
i. Short duration or coffee break
Omnibus Rules Impl. Labor Code, Book III, Rule I, Sec. 7 par. 1
Every employer shall give his employees, regardless of sex, not less than one (1) hour time-off for regular meals, except in the following
cases when a 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 worked of the employee

ii. more than 20 minutes

Omnibus Rules Impl. Labor Code, Book III, rule I, Sec. 4(b)
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:
(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.

MEAL PERIOD
i. Regular Meal Period (1 hour)
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.

Omnibus Rules Impl. Labor Code, Book III, Rule I, Sec. 7 par. 1
Every employer shall give his employees, regardless of sex, not less than one (1) hour time-off for regular meals, except in the following
cases when a 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 worked of the employee

ii. Shorter Meal Period (Less than one hour but not less than 20 minutes)
Omnibus Rules Impl. Labor Code, Book III, Rule I, Sec. 7
SECTION 7.Meal and Rest Periods. Every employer shall give his employees, regardless of sex, not less than one (1) hour time-off for
regular meals, except in the following cases when a 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 worked of the employee:
(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 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 breaks running from five (5) to twenty (20) minutes shall be considered as compensable working time.

WAITING TIME

Omnibus Rules Impl. Labor Code, Book III, Rule I, Sec. 5(a)
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.

WORKING WHILE ON CALL
Omnibus Rules Impl. Labor Code, Book III, Rule I, Sec. 5(b)
(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.

INACTIVE DUE TO WORK INTERRUPTIONS
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:
(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.

NECESSARY WORK AFTER NORMAL HOURS

Omnibus Rules Impl. Labor Code, Book III, Rule I, Sec. 4(c)
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:
(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.

LECTURES, MEETINGS, TRAININGS
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.

OVERTIME WORK/PAY
Labor Code Arts. 87-90
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 percent (25%) 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 (30%) 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 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.
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.

a. Overtime in Ordinary Working Day

Labor Code Art. 87
SECTION 8. Overtime pay. Any employee covered by this Rule who is permitted or required to work beyond eight (8) hours on ordinary
working days shall be paid an additional compensation for the overtime work in the amount equivalent to his regular wage plus at least
twenty-five percent (25%) thereof.
b. Emergency or compulsory overtime work

Labor Code Art. 89
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 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.
Any employee required to render overtime work under this Article shall be paid the additional compensation required in this Chapter.

c. Undertime work/leave

Labor Code Art. 88
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.

d. Additional Compensation

Labor Code Art. 87

NIGHT WORK
Labor Code Art. 86
ARTICLE 86. Night shiftdifferential. 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 oclock in the evening and six oclock in the morning.
Omnibus Rules Impl. Labor Code, Book III, Rule II, Secs. 1-6
SECTION 1.Coverage. This Rule shall apply to all employees except:
(a) Those of the government and any of its political subdivisions, including government-owned and/or controlled corporations;
(b) Those of retail and service establishments regularly employing not more than five (5) workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of this Code;
(e) 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.
SECTION 2.Night shift differential. An employee shall be paid night shift differential of no less than ten per cent (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.
SECTION 3.Additional compensation. Where an employee is permitted or suffered to work on the period covered after his work schedule,
he shall be entitled to his regular wage plus at least twenty-five per cent (25%) and an additional amount of no less than ten per cent (10%)
of such overtime rate for each hour or work performed between 10 p.m. to 6 a.m.
SECTION 4.Additional compensation on scheduled rest day/special holiday. An employee who is required or permitted to work on the
period covered during rest days and/or special holidays not falling on regular holidays, shall be paid a compensation equivalent to his
regular wage plus at least thirty (30%) per cent and an additional amount of not less than ten (10%) per cent of such premium pay rate for
each hour of work performed.
SECTION 5.Additional compensation on regular holidays. For work on the period covered during regular holidays, an employee shall be
entitled to his regular wage during these days plus an additional compensation of no less than ten (10%) per cent of such premium rate for
SECTION 6.Relation to agreements. Nothing in this Rule shall justify an employer in withdrawing or reducing any benefits, supplements
or payments as provided in existing individual or collective agreements or employer practice or policy.

RA No. 10151, An Act Allowing the Employment of Night Workers, Thereby Repealing Articles 130 and 131 of PD 442, as amended,
Otherwise Known as the Labor Code of the Philippines (26 July 2010)

Employment of Night Workers
Art. 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 oclock 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.
Art. 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.
Art. 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.
Art. 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.
Art. 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 authorised 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 he 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 ease 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.
Art. 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.
Art. 160. Social Services.Appropriate social services shall be provided for night workers and, where necessary, for workers performing
night work.
Art. 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
Labor Code Art. 86
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 oclock in the evening and six oclock in the morning.
Omnibus Rules Impl. Labor Code, Book III, Rule II, Secs. 2-5
SECTION 2.Night shift differential. An employee shall be paid night shift differential of no less than ten per cent (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.
SECTION 3.Additional compensation. Where an employee is permitted or suffered to work on the period covered after his work schedule,
he shall be entitled to his regular wage plus at least twenty-five per cent (25%) and an additional amount of no less than ten per cent (10%)
of such overtime rate for each hour or work performed between 10 p.m. to 6 a.m.
SECTION 4.Additional compensation on scheduled rest day/special holiday. An employee who is required or permitted to work on the
period covered during rest days and/or special holidays not falling on regular holidays, shall be paid a compensation equivalent to his
regular wage plus at least thirty (30%) per cent and an additional amount of not less than ten (10%) per cent of such premium pay rate for
SECTION 5.Additional compensation on regular holidays. For work on the period covered during regular holidays, an employee shall be
entitled to his regular wage during these days plus an additional compensation of no less than ten (10%) per cent of such premium rate for

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 and Employment 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.

WEEKLY REST PERIOD DEPENDENT ON PREFERENCE OF EMPLOYEE

Omnibus Rules Impl. Labor Code, Book III, Rule III, Secs. 4-5
SECTION 4.Preference of employee. The preference of the employee as to his weekly day of rest shall be respected by the employer if the
same is based on religious grounds. The employee shall make known his preference to the employer in writing at least seven (7) days before
the desired effectivity of the initial rest day so preferred.
Where, however, the choice of the employee as to his rest day based on religious grounds will inevitably result in serious prejudice or
obstruction to the operations of the undertaking and the employer cannot normally be expected to resort to other remedial measures, the
employer may so schedule the weekly rest day of his choice for at least two (2) days in a month.
SECTION 5.Schedule of rest day. (a) Where the weekly rest is given to all employees simultaneously, the employer shall make known such
rest period by means of a written notice posted conspicuously in the work place at least one week before it becomes effective.
(b) Where the rest period is not granted to all employees simultaneously and collectively, the employer shall make known to the employees
their respective schedules of weekly rest through written notices posted conspicuously in the work place at least one week before they
become effective.

COMPULSORY WORK ON A REST DAY

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 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;
(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.

PREMIUM PAY

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 (30%) 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 workdays and no regular rest days can be scheduled, he shall
be paid an additional compensation of at least thirty percent (30%) of his regular wage for work performed on Sundays and holidays.
(c) 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 employees scheduled rest day, he shall be entitled to an additional compensation of at
least fifty per cent (50%) 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.

HOLIDAYS
Article 94. Right to holiday pay.
Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing
less than ten (10) workers;
The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his
regular rate; and
As used in this Article, "holiday" includes: New Years Day, Maundy Thursday, Good Friday, the ninth of April, the first of May, the twelfth of
June, the fourth of July, the thirtieth of November, the twenty-fifth and thirtieth of December and the day designated by law for holding a
general election.

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Article 94.
Right to holiday pay
Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing
less than ten (10) workers;
Rule IV, Sec. 1
SECTION 1.Coverage. This rule shall apply to all employees except:
(a) Those of the government and any of the political subdivision, including government-owned and controlled corporation;
(b) Those of retail and service establishments regularly employing less than ten (10) workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of the Code;
(e) 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.

RA 9492
SECTION 1. Section 26, Chapter 7, Book I of Executive Order No. 292, as amended, otherwise known as the Administrative Code of 1987, is
hereby amended to read as follows:
"Sec. 26, Regular Holidays and Nationwide Special Days. (1) Unless otherwise modified by law, and or proclamation, the following regular
holidays and special days shall be observed in the country:
a) Regular Holidays
New years Day - January 1
Maundy Thursday - Movable date
Good Friday - Movable date
EidulFitr - Movable date
ArawngKagitingan (Bataaan and Corregidor Day) - Monday nearest April 9
Labor Day - Monday nearest May 1
Independence Day - Monday nearest June 12
National Heroes Day - Last Monday of August
Bonifacio Day - Monday nearest November 30
Christmas Day - December 25
Rizal Day - Monday nearest December 30

b) Nationwide Special Holidays:
Ninoy Aquino Day - Monday nearest August 21
All Saints Day - November 1
Last Day of the Year - December 31
c) In the event the holiday falls on a Wednesday, the holiday will be observed on the Monday of the week. If the holiday falls on a Sunday, the
holiday will be observed on the Monday that follows:
Provided, That for movable holidays, the President shall issue a proclamation, at least six months prior to the holiday concerned, the specific
date that shall be declared as a nonworking day:
Provided, however, The EidulAdha shall be celebrated as a regional holiday in the Autonomous Region in Muslim Mindanao."
SEC. 2. All laws, orders, presidential issuances, rules and regulations or part thereof inconsistent with this Act are hereby repealed or
modified accordingly.
SEC. 3. This Act shall take effect after fifteen (15) days following its publication in at least two newspapers of general circulation.
Amended EO 292
Section 26.Regular Holidays and Nationwide Special Days. -
1. Unless otherwise modified by law, order or proclamation, the following regular holidays and special days shall be observed in this
country:
(A) Regular Holidays
New Year's Day - January 1
Maundy Thursday - Movable date
Good Friday - Movable date
ArawngKagitingan (Bataan and Corregidor Day) - April 9
Labor Day - May 1
Independence Day - June 12
National Heroes Day - Last Sunday of August
Bonifacio Day - November 30
Christmas Day - December 25
Rizal Day - December 30
(B) Nationwide Special Days
All Saints Day - November 1
Last Day of the Year - December 31

(2) The terms "legal or regular holiday" and "special holiday", as used in laws, orders, rules and regulations or other issuances shall be
referred to as "regular holiday" and "special day", respectively.
Section 27.Local Special Days. - The President may proclaim any local special day for a particular date, group or place.
Section 28.Pretermission of Holiday. - Where the day, or the last day, for doing any act required or permitted by law falls on a regular holiday
or special day, the act may be done on the next succeeding business day.

D. SERVICE INCENTIVE LEAVE
References:
Article 95; Omnibus Rules, Book III, Rule V
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Labor Code, Art.95
Right to service incentive leave.
(a) Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay.
(b) This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with pay of at
least five days and those employed in establishments regularly employing less than ten employees or in establishments exempted from
granting this benefit by the Secretary of Labor and Employment after considering the viability or financial condition of such establishment.
(c) The grant of benefit in excess of that provided herein shall not be made a subject of arbitration or any court or administrative action.
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1. Coverage/Extensions
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Labor Code, Art.95(a)(b)
(a) Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay.
(b) This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with pay of at
least five days and those employed in establishments regularly employing less than ten employees or in establishments exempted from
granting this benefit by the Secretary of Labor and Employment after considering the viability or financial condition of such establishment.
Book III, Rule V, Secs. 2-3
SECTION 2.Right to service incentive leave. Every employee who has rendered at least one year of service shall be entitled to a yearly
service incentive leave of five days with pay.
SECTION 3.Definition of certain terms. The term "at least one-year service" shall mean service for not less than 12 months, whether
continuous or broken reckoned from the date the employee started working, including authorized absences and paid regular holidays unless
the working days in the establishment as a matter of practice or policy, or that provided in the employment contract is less than 12 months,
in which case said period shall be considered as one year.
Makati Haberdashery Inc. v. NLRC

Facts: While a case for underpayment against the employer was ongoing, two of its employees were dismissed from the company for
allegedly copying for accepting a job order which is prejudicial and in direct competition with the business of the company.
Held: They were not entitled to service incentive leave pay and holiday pay because as piece-rate workers being paid at a fixed amount for
performing work irrespective of time consumed in the performance thereof, they fall under one of the exceptions stated the Code.
Labor Congress v. NLRCsupra.

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a. Meaning
at least one year of service
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Book III, Rule V, Sec. 3
SECTION 3.Definition of certain terms. The term "at least one-year service" shall mean service for not less than 12 months, whether
continuous or broken reckoned from the date the employee started working, including authorized absences and paid regular holidays unless
the working days in the establishment as a matter of practice or policy, or that provided in the employment contract is less than 12 months,
in which case said period shall be considered as one year.
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b. Treatment of benefits
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Book III, Rule V, Sec. 5
SECTION 5.Treatment of benefit. The service incentive leave shall be commutable to its money equivalent if not used or exhausted at the
end of the year.
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E. VACATION LEAVE/SICK LEAVE
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PNCC Skyway Traffic Management & Security Division Workers Organization v. PNCC Skyway Corp.

Facts: Dispute is with regards a CBA, wherein the Labor union insists that their union members have the preference in scheduling their
vacation leave, while PNCC argues that CBA gives the management the final say regarding the vacation leave schedule of its employees.
Held: According to the CBAs language, PNCC can unilaterally schedule the vacation leave of its employees. Since the grant of vacation leave is
a prerogative of the employer, the latter can compel its employees to exhaust all their vacation leave credits
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F. PATERNITY LEAVE
RA 8187 (Paternity Leave Act of 1996) Secs. 1-6
RA 8187 Implementing Rules
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1. Coverage
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RA 8187, Sec. 2
SECTION 2. Notwithstanding any law, rules and regulations to the contrary, every married male employee in the private and public sectors
shall be entitled to a paternity leave of seven (7) days with full pay for the first four (4) deliveries of the legitimate spouse with whom he is
cohabiting. The male employee applying for paternity leave shall notify his employer of the pregnancy of his legitimate spouse and the
expected date of such delivery.
For purposes, of this Act, delivery shall include childbirth or any miscarriage.
RA 8187 Implementing Rules, Secs. 2
SECTION 2.Coverage. Every married male employee in the private sector shall be entitled to paternity leave benefits of seven (7) working
days with full pay for the first four (4) deliveries by his lawful spouse under such terms and conditions as hereinafter provided.
The rules on paternity leave of employees in the public sector shall be promulgated by the Civil Service Commission.
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2. Conditions
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RA 8187, Sec. 2
RA 8187 Implementing Rules, Secs. 2, 3, 4
SECTION 2.Coverage. Every married male employee in the private sector shall be entitled to paternity leave benefits of seven (7) working
days with full pay for the first four (4) deliveries by his lawful spouse under such terms and conditions as hereinafter provided.
The rules on paternity leave of employees in the public sector shall be promulgated by the Civil Service Commission.
SECTION 3.Conditions for entitlement of paternity leave benefits. A married male employee shall be entitled to paternity benefits
provided that:
a. he is employed at the time of delivery of his child;
b. he has notified his employer of the pregnancy of his wife and her expected date of delivery subject to the provisions of Section 4 hereof;
and
c. his wife has given birth, suffers a miscarriage or an abortion.
SECTION 4.Notification. As soon as the married male employee learns that his spouse is pregnant, he shall inform his employer of such
pregnancy and the expected date of delivery within a reasonable period of time. The employee shall accomplish a Paternity Notification
Form to be provided for by the employer and submit the same to the latter, together with a copy of his marriage contract, or where not
applicable, any proof of marriage. Provided, That this notification requirement shall not apply in cases of miscarriage or abortion.
Any employee who has availed of the paternity benefits shall, within a reasonable period of time, submit a copy of the birth certificate of the
newly born child, death or medical certificate in case of miscarriage or abortion, duly signed by the attending physician or midwife showing
actual date of childbirth, miscarriage or abortion, as the case may be.
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3. When to avail of benefits
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RA 8187 Implementing Rules, Sec. 5
SECTION 5.Availment. The paternity benefits set forth herein may be enjoyed by the qualified employee before, during or after the
delivery by his wife; provided, that the total number of days shall not exceed seven (7) working days for each delivery. Provided, further,
that this benefit shall be availed of not later than sixty (60) days after the date of said delivery.
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4. Benefits
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RA 8187 Implementing Rules Sec. 6
SECTION 6.Benefits. The employee is entitled to seven (7) working days paternity leave with pay, consisting of basic salary, all allowances
and other monetary benefits.
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5. Treatment of benefit
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SECTION 7.Non-Conversion of benefits. In the event that the paternity leave benefit is not availed of, said leave shall not be convertible to
cash.
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6. Penalty provisions
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RA 8187, Sec. 5
SECTION 5. Any person, corporation, trust, firm, partnership, association or entity found violating this Act or the rules and regulations
promulgated thereunder shall be punished by a fine not exceeding Twenty-five thousand pesos (P25,000) or imprisonment of not less than
thirty (30)days nor more than six (6) months.
If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of imprisonment shall be
imposed on the entity's responsible officers, including, but not limited to, the president, vice-president, chief executive officer, general
manager, managing director or partner directly responsible therefor.
SECTION 10.Repealing Clause. All laws, ordinances, rules, regulations, issuances, or parts thereof which are inconsistent with these Rules
are deemed repealed or modified accordingly.
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7. Employment
related rights and benefits
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RA 8187, Sec. 2-3
SECTION 3.Definition of Term. - For purposes of this Act, Paternity Leave refers to the benefits granted to a married male employee allowing
him not to report for work for seven (7) days but continues to earn the compensation therefor, on the condition that his spouse has
delivered a child or suffered a miscarriage for purposes of enabling him to effectively lend support to his wife in her period of recovery
and/or in the nursing of the newly-born child.
RA 8187 Implementing Rules, Sec. 1(b)
b. Employee refers to any person who performs services for an employer and receives compensation therefor, provided an employer-
employee relationship exists between them.
RA 8187 Implementing Rules, Sec. 3(a)
SECTION 3.Conditions for entitlement of paternity leave benefits. A married male employee shall be entitled to paternity benefits
provided that:
a. he is employed at the time of delivery of his child;
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G. PARENTAL LEAVE
RA 8972 (Solo Parents Welfare Act of 2000)
RA 8972 Implementing Rules
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1. Coverage
----------------------------------------------------------------
RA 8927, Sec. 3(a)
Section 3.Definition of Terms. - Whenever used in this Act, the following terms shall mean as follows:
(a) "Solo parent" - any individual who falls under any of the following categories:
(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;
(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;
(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.
A change in the status or circumstance of the parent claiming benefits under this Act, such that he/she is no longer left alone with the
responsibility of parenthood, shall terminate his/her eligibility for these benefits.
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2. Criteria
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RA 8972 Implementing Rules, Art. IV, Sec. 7
Section 7. Criteria for Support Any solo parent whose income in the place of domicile falls equal to or below the poverty threshold as set
by the NSCB and subject to the assessment of the duly appointed or designated social worker in the area shall be eligible for assistance:
Provided, however, That any solo parent whose income is above the poverty threshold shall enjoy the benefits mentioned in Sections 16, 17,
18, 19, 20, 21 and 23 of these Rules.
For purposes of the Act and these Rules, the place of domicile shall refer to the residence mentioned in Section 8(a) of these Rules.
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3. Qualifications of solo parents
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RA 8972, Sec. 8
Section 8.Parental Leave. - In addition to leave privileges under existing laws, parental leave of not more than seven (7) working days every
year shall be granted to any solo parent employee who has rendered service of at least one (1) year.
RA 8972 Implementing Rules, Art. IV, Sec. 8
Section 8. Qualifications of Solo Parent A solo parent seeking benefits other than those provided for under Sections 16, 17, 18, 19, 20, 21
and 23 of these Rules shall be qualified on the basis of the following:
(a) A resident of the area where the assistance is sought, as certified by the barangay captain; Provided, that if the solo parent is a transferee
from another barangay, he/she is required to secure a clearance from his/her previous barangay, indicating whether or not he/she has
availed of any benefits for solo parents, and the nature of such benefits.
(b) With an income level equal to or below the poverty threshold as set forth by NSCB and assessed by a social worker as provided for under
Section 7 of these Rules.
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4. Employment
Related rights and benefits
----------------------------------------------------------------
RA 8972, Sec. 3(d)(e)
(d) "Parental leave" - shall mean leave benefits granted to a solo parent to enable him/her to perform parental duties and responsibilities
where physical presence is required.
(e) "Flexible work schedule" - is the right granted to a solo parent employee to vary his/her arrival and departure time without affecting the
core work hours as defined by the employer.
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a. Flexible Work Schedule
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RA 8972, Sec. 6
Section 6.Flexible Work Schedule. - The employer shall provide for a flexible working schedule for solo parents: Provided, That the same
shall not affect individual and company productivity: Provided, further, That any employer may request exemption from the above
requirements from the DOLE on certain meritorious grounds.
RA 8972 Implementing Rules, Art. V, Sec. 17
Section 17. Work Discrimination No employer shall discriminate against any solo parent employee with respect to terms and conditions of
employment on account of his/her status.
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b. Work discrimination
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Section 18. Parental Leave In addition to leave privileges under existing laws, parental leave of not more than seven (7) working days
every year shall be granted to any solo parent employee who has rendered service of at least one (1) year. The seven-day parental leave
shall be non-cumulative.
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c. Leave
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Section 19. Conditions for Entitlement of Parental Leave A solo parent shall be entitled to parental leave provided that:
(a) He/She has rendered at least one (1) year of service whether continuous or broken at the time of the affectivity of the Act;
(b) He/She has notified his/her employer of the availment thereof within a reasonable time period; and
(c) He/She has presented a Solo Parent Identification Card to his/her employer.
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5. Treatment of benefit; Non cumulative
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RA 8972 Implementing Rules, Art. VI, Sec. 18 (Second sentence)
The seven-day parental leave shall be non-cumulative.
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H. VICTIMS LEAVE
RA 9262 (An Act Defining Violence Against Women and their Children of 2004), Sec. 43
RA 9262 Implementing Rules, Rule VI, Sec. 42
---------------------------------------------------------------
1. Definition/Coverage
---------------------------------------------------------------
RA 9262, Sec. 3
SECTION 3. Definition of Terms.- As used in this Act,
(a) "Violence against women and their children" refers to any act or a series of acts committed by any person against a woman who is his
wife, former wife, or against a woman with whom the person has or had a sexual or dating relationship, or with whom he has a common
child, or against her child whether legitimate or illegitimate, within or without the family abode, which result in or is likely to result in
physical, sexual, psychological harm or suffering, or economic abuse including threats of such acts, battery, assault, coercion, harassment or
arbitrary deprivation of liberty. It includes, but is not limited to, the following acts:

A. "Physical Violence" refers to acts that include bodily or physical harm;
B. "Sexual violence" refers to an act which is sexual in nature, committed against a woman or her child. It includes, but is not limited to:
a) rape, sexual harassment, acts of lasciviousness, treating a woman or her child as a sex object, making demeaning and sexually suggestive
remarks, physically attacking the sexual parts of the victim's body, forcing her/him to watch obscene publications and indecent shows or
forcing the woman or her child to do indecent acts and/or make films thereof, forcing the wife and mistress/lover to live in the conjugal
home or sleep together in the same room with the abuser;
b) acts causing or attempting to cause the victim to engage in any sexual activity by force, threat of force, physical or other harm or threat of
physical or other harm or coercion;
c) Prostituting the woman or child.
C. "Psychological violence" refers to acts or omissions causing or likely to cause mental or emotional suffering of the victim such as but not
limited to intimidation, harassment, stalking, damage to property, public ridicule or humiliation, repeated verbal abuse and mental infidelity.
It includes causing or allowing the victim to witness the physical, sexual or psychological abuse of a member of the family to which the victim
belongs, or to witness pornography in any form or to witness abusive injury to pets or to unlawful or unwanted deprivation of the right to
custody and/or visitation of common children.
D. "Economic abuse" refers to acts that make or attempt to make a woman financially dependent which includes, but is not limited to the
following:
1. withdrawal of financial support or preventing the victim from engaging in any legitimate profession, occupation, business or activity,
except in cases wherein the other spouse/partner objects on valid, serious and moral grounds as defined in Article 73 of the Family Code;
2. deprivation or threat of deprivation of financial resources and the right to the use and enjoyment of the conjugal, community or property
owned in common;
3. destroying household property;
4. controlling the victims' own money or properties or solely controlling the conjugal money or properties.
(b) "Battery" refers to an act of inflicting physical harm upon the woman or her child resulting to the physical and psychological or emotional
distress.
(c) "Battered Woman Syndrome" refers to a scientifically defined pattern of psychological and behavioral symptoms found in women living
in battering relationships as a result of cumulative abuse.
(d) "Stalking" refers to an intentional act committed by a person who, knowingly and without lawful justification follows the woman or her
child or places the woman or her child under surveillance directly or indirectly or a combination thereof.
(e) "Dating relationship" refers to a situation wherein the parties live as husband and wife without the benefit of marriage or are
romantically involved over time and on a continuing basis during the course of the relationship. A casual acquaintance or ordinary
socialization between two individuals in a business or social context is not a dating relationship.
(f) "Sexual relations" refers to a single sexual act which may or may not result in the bearing of a common child.
(g) "Safe place or shelter" refers to any home or institution maintained or managed by the Department of Social Welfare and Development
(DSWD) or by any other agency or voluntary organization accredited by the DSWD for the purposes of this Act or any other suitable place
the resident of which is willing temporarily to receive the victim.
(h) "Children" refers to those below eighteen (18) years of age or older but are incapable of taking care of themselves as defined under
Republic Act No. 7610. As used in this Act, it includes the biological children of the victim and other children under her care.
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2. Entitlement to leave
---------------------------------------------------------------
RA 9262 Implementing Rules, Rule VI, Sec. 42
Section 42. Ten-day paid leave in addition to other leave benefits. - At any time during the application of any protection order, investigation,
prosecution and/or trial of the criminal case, a victim of VAWC who is employed shall be entitled to a paid leave of up to ten (10) days in
addition to other paid leaves under the Labor Code and Civil Service Rules and Regulations and other existing laws and company policies,
extendible when the necessity arises as specified in the protection order. The Punong Barangay/kagawad or prosecutor or the Clerk of
Court, as the case may be, shall issue a certification at no cost to the woman that such an action is pending, and this is all that is required for
the employer to comply with the 10-day paid leave. For government employees, in addition to the aforementioned certification, the
employee concerned must file an application for leave citing as basis R.A. 9262. The administrative enforcement of this leave entitlement
shall be considered within the jurisdiction of the Regional Director of the DOLE under Article 129 of the Labor Code of the Philippines, as
amended, for employees in the private sector, and the Civil Service Commission, for government employees.
The availment of the ten day-leave shall be at the option of the woman employee, which shall cover the days that she has to attend to medical
and legal concerns. Leaves not availed of are noncumulative and not convertible to cash.
The employer/agency head who denies the application for leave, and who shall prejudice the victim-survivor or any person for assisting a
co-employee who is a victim-survivor under the Act shall be held liable for discrimination and violation of R.A 9262.
The provision of the Labor Code and the Civil Service Rules and Regulations shall govern the penalty to be imposed on the said
employer/agency head.
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I. SPECIAL LEAVE BENEFITS FOR WOMEN
RA 9710 (Magna Carta of Women)
---------------------------------------------------------------
1. Covered employees
---------------------------------------------------------------
RA 9710, Sec. 18
Section 18.Special Leave Benefits for Women. - A woman employee having rendered continuous aggregate employment service of at least six
(6) months for the last twelve (12) months shall be entitled to a special leave benefit of two (2) months with full pay based on her gross
monthly compensation following surgery caused by gynecological disorders.
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J. SERVICE CHARGES
Article 96; Omnibus Rules, Book III, Rule VI
---------------------------------------------------------------
Art. 96. Service charges. All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of
eighty-five percent (85%) for all covered employees and fifteen percent (15%) for management. The share of the employees shall be equally
distributed among them. In case the service charge is abolished, the share of the covered employees shall be considered integrated in their
wages.
---------------------------------------------------------------
1. Covered establishments
---------------------------------------------------------------
See Article 96 above.
Book III, Rule VI, Sec. 1
SECTION 1.Coverage. This rule shall apply only to establishments collecting service charges such as hotels, restaurants, lodging houses,
night clubs, cocktail lounge, massage clinics, bars, casinos and gambling houses, and similar enterprises, including those entities operating
primarily as private subsidiaries of the Government.
---------------------------------------------------------------
2. Covered employees
---------------------------------------------------------------
See Article 96 above above.
SECTION 2. Employees covered. This rule shall apply to all employees of covered employers, regardless of their positions, designations or
employment status, and irrespective of the method by which their wages are paid except to managerial employees.
As used herein, a "managerial employee" shall mean one who is vested with powers or prerogatives to lay down and execute management
policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign, or discipline employees or to effectively recommend such
managerial actions. All employees not falling within this definition shall be considered rank-and-file employees.
---------------------------------------------------------------
3. Sharing
---------------------------------------------------------------
See Article 96 above aboveabove.
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.
---------------------------------------------------------------
4. Frequency of Distribution
---------------------------------------------------------------
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.
---------------------------------------------------------------
5. Rule if abolished
---------------------------------------------------------------
SECTION 5.Integration 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.
Phil. Hoteliers, Inc. v. NUWHRAIN-APL-IUF

Facts: Wage Order No. 9 granted all private sector employees earning 250-290 pesos daily wage an Emergency Cost Of Living Allowance of
P30 per day. Dusit Hotel allegedly did not comply with the WO, saying that the wage increase in a new CBA already incorporated the WO
Held: The hotel employees right to their shares in the service charges collected by Dusit is distinct and separate from their right to ECOLA;
gratification by the hotel of one does not result in the satisfaction of the other.
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K. NON DIMINUTION OF BENEFITS
----------------------------------------------------------------
Article 100.Prohibition against elimination or diminution of benefits.
Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the
time of promulgation of this Code.

Metropolitan Bank & Trust Co. v. NLRC

Facts: Patag and Flora requested that their retirement benefits be computed at the new rate to be set after the then ongoing CBA
negotiations were signed, but Metrobank complied with the retroactive application of the increased benefits only with regard to employees
who remain in service in a then future time.
Held: Metrobank had consistently, deliberately and voluntarily granted improved benefits to its officers after the signing of each CBA with its
rank and file employees and had applied it retroactively, without the condition that the officers should remain employees as of a certain
date. This constitutes voluntary employer practice which cannot be unilaterally withdrawn or diminished by the employer without violating
the spirit and intent of Art. 100 of the Code which prohibits the non-diminution of benefits. Thus, Patag and Flora can recover higher
benefits.
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5. Minimum Wages and Wage Fixing Machinery
References:
Articles 97-119
Omnibus Rules, Book III, Rules VII-VIII
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A. MINIMUM WAGES
----------------------------------------------------------------
Labor Code, Art.99
Art. 99. Regional minimum wages. The minimum wage rates for agricultural and non-agricultural employees and workers in each and every
region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. (As amended by Section 3,
Republic Act No. 6727, June 9, 1989.)
1987 Constitution, Art. XIII, Sec. 3
Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and
equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities,
including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living
wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes
in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of
production and the right of enterprises to reasonable returns on investments, and to expansion and growth.
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1. General Principles
a. Right to a living wage
----------------------------------------------------------------
Constitution, Art. XIII, Sec. 3 par. (2)(4)
[Par. 2.] It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted
activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a
living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by
law.
[Par. 4.] The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of
production and the right of enterprises to reasonable returns on investments, and to expansion and growth.
----------------------------------------------------------------
b. No Work, No pay/ A fair days wage for a fair days labor
----------------------------------------------------------------
Sugue v. Triumph International (Phils)

Facts: Sugue and Valderrama personally attended a preliminary conference of their money claim case against Triumph. Consequently, the
company charged the half day utilized by the two to their vacation leave credits.
Held: There was no bad faith or malice on the part of the company because it is fair and reasonable for Triumph to do so considering that
Sugue and Valderrama did not perform work for one-half day. It was previously held that laborers who voluntarily absent themselves from
work to attend the hearing of a case in which they seek to prove and establish their demands against the company should not be entitled to
pay during their period of absence from work.

Aklan Electric Corp. Inc. v. NLRC

Facts: AKELCO transferred its office for daily operations, but some employees continued to report for work at the old office. Some of the
employees who continued to report at the old office were considered dismissed and later accepted back subject to the condition of "no work,
no pay."
Held: It would neither be fair nor just to allow private respondents to recover something they have not earned and could not have earned
because they did not render services at the Kalibo office during the stated period.

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c. Equal pay for work of equal value
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Article 135(a)
Art. 135. Discrimination prohibited. It shall be unlawful for any employer to discriminate against any woman employee with respect to terms
and conditions of employment solely on account of her sex.
The following are acts of discrimination:
(a) Payment of a lesser compensation, including wage, salary or other form of remuneration and fringe benefits, to a female employees as
against a male employee, for work of equal value;
Article 248(e)
Art. 248. Unfair labor practices of employers. It shall be unlawful for an employer to commit any of the following unfair labor practice:
(e) To discriminate in regard to wages, hours of work and other terms and conditions of employment in order to encourage or discourage
membership in any labor organization. Nothing in this Code or in any other law shall stop the parties from requiring membership in a
recognized collective bargaining agent as a condition for employment, except those employees who are already members of another union at
the time of the signing of the collective bargaining agreement. Employees of an appropriate bargaining unit who are not members of the
recognized collective bargaining agent may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the
recognized collective bargaining agent, if such non-union members accept the benefits under the collective bargaining agreement: Provided,
that the individual authorization required under Article 242, paragraph (o) of this Code shall not apply to the non-members of the
recognized collective bargaining agent;
International School Alliance of Educ. v. Quisumbing

Facts: International School pays its or foreign-hires, a higher salary than its local-hires.
Held: Discrimination exists, because the local-hires perform the same services as foreign-hires and they ought to be paid the same salaries as
the latter. Persons who work with substantially equal qualifications, skill, effort and responsibility, under similar conditions, should be paid
similar salaries.
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d. Form: agreement for compensation of services
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Article 97(f)
(f) "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 the fair and reasonable value, as determined by the Secretary of Labor and Employment, 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.
Arms Taxi v. NLRC

Facts: A dismissed taxi company employee sues for a 15% commission and reinstatement with backwages as a regular employee
Held: He is not entitled to the commission as it had not been agreed upon in writing as required by law, but he is entitled to be considered as
a regular employee for doing necessary and desirable work for his company.

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e. Exemption from income tax
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RA 9504 of June 17, 2008 (An Act Amending the National Internal Revenue Code of 1997), Sec. 2
SEC. 2. Section 24(A) of Republic Act No. 8424, as amended, otherwise known as the National Internal Revenue Code of 1997, is hereby
further amended to read as follows:
"SEC. 24.Income Tax Rates. -
"(A) Rates of Income Tax on Individual Citizen and Individual Resident Alien of the Philippines. -
"(1) x x x:
"x xx; and
"(c) On the taxable income defined in Section 31 of this code, other than income subject to tax under Subsections (B), (C) and (D) of this
Section, derived for each taxable year from all sources within the Philippines by an individual alien who is a resident of the Philippines.
"(2) Rates of Tax on Taxable Income of Individuals. - The tax shall be computed in accordance with and at the rates established in the
following schedule:
"Not over P10,000........5%
"Over P10,000 but not over P30,000........ P500+10% of the excess over P10,000
"Over P30,000 but not over P70,000........ P2,500+15% of the excess over P30,000
"Over P5000,000........ P125,000+32% of the excess over P500,000
"For married individuals, the husband and wife, subject to the provision of Section 51 (D) hereof, shall compute separately their individual
income tax based on their respective total taxable income: Provided, that if any income cannot be definitely attributed to or identified as
income exclusively earned or realized by either of the spouses, the same shall be divided equally between the spouses for the purpose of
determining their respective taxable income.
"Provided, That minimum wage earners as defined in Section 22 (HH) of this Code shall be exempt from the payment of income tax on their
taxable income: Provided, further, That the holiday pay, overtime pay, night shift differential pay and hazard pay received by such minimum
wage earners shall likewise be exempt from income tax.
"x xx."
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2. Coverage
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Article 97(b)(c)(e)
(b) "Employer" includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include
the government and all its branches, subdivisions and instrumentalities, all government-owned or controlled corporations and institutions,
as well as non-profit private institutions, or organizations.
(c) "Employee" includes any individual employed by an employer.
"Employ" includes to suffer or permit to work.
Article 98
Art. 98. Application of Title. This Title shall not apply to farm tenancy or leasehold, domestic service and persons working in their respective
homes in needle work or in any cottage industry duly registered in accordance with law.
Omnibus Rules, Book III, Rule VII, Sec. 3
SECTION 3.Amount of Minimum Wage Increase. Effective July 1, 1989, the daily statutory minimum wage rates of covered workers and
employees shall be increased as follows:
a) P25.00 for those in the National Capital Region;
b) P25.00 for those outside the National Capital Region, except for the following:
P20.00 for those in plantation agricultural enterprises with an annual gross sales of less than P5 million in the fiscal year immediately
preceding the effectivity of the Act;
P15.00 for those in the following enterprises:
1. Non-plantation agriculture
2. Cottage/handicraft
3. Retail/Service regularly employing not more than 10 workers
4. Business enterprises with a capitalization of not more than P500,000 and employing not more than 20 workers.
Phil. Fisheries Development Authority v. NLRC

Facts: Petitioner is a GOCC which entered into a contract with a security agency. Security guards under the agency asked the petitioner for an
increase of wages in accordance with the Wage Order#6 and later filed a complaint for unpaid amount of re-adjustment rate.
Held: Notwithstanding that the petitioner is a government agency, its liabilities are jointly and solidary with that of the contractor for the
unpaid wages as provided in Art. 106,107 and 109.
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3. Minimum Wage
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Article 99
Art. 99. Regional minimum wages. The minimum wage rates for agricultural and non-agricultural employees and workers in each and every
region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. (As amended by Section 3,
Republic Act No. 6727, June 9, 1989).
Article 97(f)
"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 the fair and reasonable value, as determined by the Secretary of Labor and Employment, 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 61
Art. 61. Contents of apprenticeship agreements. Apprenticeship agreements, including the wage rates of apprentices, shall conform to the
rules issued by the Secretary of Labor and Employment. The period of apprenticeship shall not exceed six months. Apprenticeship
agreements providing for wage rates below the legal minimum wage, which in no case shall start below 75 percent of the applicable
minimum wage, may be entered into only in accordance with apprenticeship programs duly approved by the Secretary of Labor and
Employment. The Department shall develop standard model programs of apprenticeship. (As amended by Section 1, Executive Order No.
111, December 24, 1986)
Article 75(c)
Art. 75. Learnership agreement. Any employer desiring to employ learners shall enter into a learnership agreement with them, which
agreement shall include:
(c) The wages or salary rates of the learners which shall begin at not less than seventy-five percent (75%) of the applicable minimum wage;
Article 80(b)
Art. 80. Employment agreement. Any employer who employs handicapped workers shall enter into an employment agreement with them,
which agreement shall include:
The names and addresses of the handicapped workers to be employed;
The rate to be paid the handicapped workers which shall not be less than seventy five (75%) percent of the applicable legal minimum wage;
The duration of employment period; and
The work to be performed by handicapped workers.
The employment agreement shall be subject to inspection by the Secretary of Labor or his duly authorized representative.
Wage Order No. NCR-14, May 16, 2008 (abridged)
WHEREAS, the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) is mandated under R.A. 6727 (The
Wage Rationalization Act), to periodically assess wage rates and conduct continuing studies in the determination of the minimum wage
applicable in the region or industry;
[xxx]
Section 1.NEW MINIMUM WAGE RATES. Upon effectivity of this Wage Order, all private sector minimum wage workers and employees in the
National Capital Region shall receive an increase in the amount of Twenty Pesos (P20.00) per day consisting of Fifteen Pesos (P15.00) Basic
Wage and Five Pesos (P5.00) Cost of Living Allowance. The Five Pesos (P5.00) COLA shall be automatically integrated into the basic wage on
28 August 2008.
a) The new daily minimum wage rates of covered workers in the private sector in the National Capital Region shall be as follows: (note: min.
wage under Wage Order No. NCR-13 + P15 Basic Wage + P5 COLA)
Non-Agriculture: P382
Agricultural (Plantation and non-plantation): P345
Private Hospital w/ bed capacity of 100 or less: P345
Retail/Service Establishments employing 15 workers or less: P345
Manufacturing Establishments regularly employing less than 10 workers: P325
Section 2.COVERAGE. The P 20.00 per day Basic Wage and COLA increase prescribed in this Order shall apply to all minimum wage earners
in the private sector in the Region, regardless of their position, designation or status of employment and irrespective of the method by which
they are paid.
This Wage Order shall not cover household or domestic helpers; persons in the personal service of another, including family drivers, and
workers of duly registered Barangay Micro Business Enterprises (BMBEs) with Certificates of Authority pursuant to Republic Act 9178.
Section 4.APPLICATION TO CONTRACTORS.In the case of contracts for construction projects and for security, janitorial and similar services,
the Basic Wage and COLA prescribed in this Order shall be borne by the principals or clients of the construction/service contractors and the
contract shall be deemed amended accordingly.
In the event, however, that the principals or clients fail to pay the prescribed wage rates, the construction/service contractor shall be jointly
and severally liable with his principal or client.
Section. 5. APPLICATION TO EDUCATIONAL INSTITUTIONS [xxx] Private educational institutions which have not increased their tuition fees
for School Year 2008-2009 may defer compliance with the Basic Wage and COLA prescribed herein until the beginning of School Year 2009-
2010. [xxx]
Section 6. WORKERS PAID BY RESULT. All workers paid by result, including those who are paid on piecework, takay, pakyaw or task
basis, shall be entitled to receive the prescribed Basic Wage and COLA per eight (8) hours work a day, or a proportion thereof for working
less than eight (8) hours.
Section 8.EXEMPTIONS. Upon application with and as determined by the Board, based on documentation and other requirements in
accordance with applicable rules and regulations issued by the NWPC, the following may be exempted from the applicability of this Order:
1. Distressed Establishments;
2. Establishments whose Total Assets including those arising from loans but exclusive of the land on which the particular business entitys
office, plant and equipment are situated, are not more than P3Million;
3. Retail/Service Establishments Regularly Employing Not More Than Ten (10) workers;
4. Establishments Adversely Affected by Natural Calamities;
5. Micro and small indigenous exporters as certified by the Export Development Council, subject to the criteria and requirements to be
provided for in its Implementing Rules.
Wage Order No. NCR-16, May 9, 2011
Same as Wage Order No. NCR-14 (directly above), with an additional +P22 COLA from the the-enacted Basic Wages (under NCR-15).
Non-Agriculture: P426
Agricultural (Plantation and non-plantation): P389
Private Hospital w/ bed capacity of 100 or less: P389
Retail/Service Establishments employing 15 workers or less: P389
Manufacturing Establishments regularly employing less than 10 workers: P389
RA 7323 of 1992 (AN ACT TO HELP POOR BUT DESERVING STUDENTS PURSUE THEIR EDUCATION BY ENCOURAGING THEIR
EMPLOYMENT DURING SUMMER AND/OR CHRISTMAS VACATIONS
SEC. 2. Sixty per centum (60%) of said salary or wage shall be paid by the employer in cash and forty per centum (40%) by the Government
in the form of a voucher which shall be applicable in the payment of his tuition fees and books in any educational institution for secondary,
tertiary, vocational or technological education. The amount of the education voucher shall be paid by the Government to the educational
institution concerned within thirty (30) days from its presentation to the officer or agency designated by the Secretary of Finance.
The voucher shall not be transferable except when the payee thereof dies or for a justifiable cause stops in his duties in which case it can be
transferred to his brothers or sisters. If there be none, the amount thereof shall be paid his heirs or to the payee himself, as the case may be.
Omnibus Rules, Book III, Rule VI, Secs. 4-7
SECTION 4. When Wage Increase Due Other Workers. a) All workers and employees who, prior to July 1, 1989, were already receiving a
basic wage above the statutory minimum wage rates provided under Republic Act 6640 but not over P100.00 per day shall receive a wage
increase equivalent to that provided in the preceding Section.
b) Those receiving not more than the following monthly basic wage rates prior to July 1, 1989 shall be deemed covered by the preceding
subsection:
(i) P3,257.50 where the workers and employees work everyday, including premium payments for Sundays or rest days, special days and
regular holidays.
(ii) P3,041.67 where the workers and employees do not work but considered paid on rest days, special days and regular holidays.
(iii) P2,616.67 where the workers and employees do not work and are not considered paid on Sundays or rest days.
(iv) P2,183.33 where the workers and employees do not work and are not considered paid on Saturdays and Sundays or rest days.
c) Workers and employees who, prior to July 1, 1989, were receiving a basic wage of more than P100.00 per day or its monthly equivalent,
are not by law entitled to the wage increase provided under the Act. They may however, receive wage increases through the correction of
wage distortions in accordance with Section 16, Chapter I of these Rules.
SECTION 5.Daily Statutory Minimum Wage Rates. The daily minimum wage rates of workers and employees shall be as follows:
[Table of the minimum wages per sector/industry in the NCR and outside the NCR under (RA 6640 effective Dec. 14, 1987) and RA 6727
(effective July 1, 1989). E.g. Non-agriculture in NCR = P64; P89. Didnt include anymore since outdated and irrelevant.]
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SECTION 6.Suggested Formula in Determining the Equivalent Monthly Statutory Minimum Wage Rates. Without prejudice to existing
company practices, agreements or policies, the following formula may be used as guides in determining the equivalent monthly statutory
minimum wage rates:
a) For those who are required to work everyday including Sundays or rest days, special days and regular holidays:
Equivalent Applicable daily wage rate (ADR) x 390.90 days
Monthly =
Rate (EMR) 12
Where 390.90 days =
302 days Ordinary working days
20 days 10 regular holidays x 200%
66.30 days 51 rest days x 130%
2.60 days 2 special days x 130%
390.90 days Total equivalent number of days.
b) For those who do not work but considered paid on rest days, special days and regular holidays:
ADR x 365 days
EMR =
12
Where 365 days =
51 days Rest days
10 days Regular holidays
2 days Special days
365 days Total equivalent number of days
c) For those who do not work and are not considered paid on Sundays or rest days:
ADR x 314 days
EMR =
12
Where 314 days =
2 days Special days (If considered paid; If actually worked, this is equivalent to 2.6 days)
d) For those who do not work and are not considered paid on Saturdays or rest days:
ADR x 262 days
EMR =
12
Where 262 days =
2 days Special days (If considered paid; If actually worked, this is equivalent to 2.6 days)
Note: For workers whose rest days fall on Sundays, the number of rest days in a year is reduced from 52 to 51 days, the last Sunday of
August being a regular holiday under Executive Order No. 201. For purposes of computation, said holiday, although still a rest day for them,
is included in the ten regular holidays. For workers whose rest days do not fall on Sundays, the number of rest days is 52 days, as there are
52 weeks in a year.
Nothing herein shall be considered as authorizing the reduction of benefits granted under existing agreements or employer
practices/policies.
SECTION 7.Basis of Minimum Wages Rates. The statutory minimum wage rules prescribed under the Act shall be for the normal working
hours, which shall not exceed eight hours work a day.
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a. Determination of compliance with minimum wage
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Iran v. NLRC

Facts: Iran discovered a cash shortage and irregularities allegedly committed by private respondents who he hired as truck drivers and
helpers. He later fired them but it was ruled that not comply with the procedure of dismissal and the minimum wage requirements and 13th
month pay.
Held: Commissions earned by the private respondents in selling softdrinks constitute part of compensation or remuneration paid to
drivers/salemen and truck helpers for serving as such and must be considered part of the wages paid to them.

b. Facilities and Supplements/ Allowances

Omnibus Rules, Book III, Rule VII, Secs. 4-7
Section 4.Cash Wage The minimum wage rates prescribed in Section 1 hereof shall be basic, cash wages without deducting therefrom
whatever benefits, supplements or allowances which the employees enjoy free of charge aside from the basic pay. An employer may provide
subsidized meals and snacks to his employees provided that the subsidy shall not be less than 30% of the fair and reasonable value of such
facilities. In such case, the employer may deduct from the wages of the employees not more than 70% of the value of the meals and snacks
enjoyed by the employees, provided that such deduction is with the written authorization of the employees concerned.
Section 5.Facilities Te term facilities as used in this Rule shall include articles or services for the benefit of the employee or his family but
shall not include tools of the trade or articles or service primarily for the benefit of the employer or necessary to the conduct of the
employers business.
Section 6.Value of Facilities The Secretary of Labor may from time to time fix in appropriate issuances the fair and reasonable value of
board, lodging, and other facilities customarily furnished by an employer to his employees both in agricultural and non-agricultural
enterprises.
The fair and reasonable value of facilities is hereby determined to be the cost of operation and maintenance, including adequate depreciation
plus reasonable allowance (but not more than 5 % interest on the depreciated amount of capital invested by the employer); provided that
if the total so computed is more than the fair rental value (or the fair price of the commodities or facilities offered for sale) the fair rental
value (or the fair price of the commodities or facilities offered for sale) shall be the reasonable cost of the opration and maintenance. The
rate of depreciation and depreciated amount computed by the employer shall be those arrived at under good accounting practices.
The term good accounting practices shall not include accounting practices which have been rejected by the bureau of Internal Revenue for
income tax purposes. The term depreciation shall include obsolescence.
Section 7.Acceptance of Facilities In order that the cost of facilities furnished by the employer may be charged against an employee, his
acceptance of such facilities must be voluntary.
Millares v NLRC & PICOP
Facts: Petitioners, whose services were terminated by PICOP due to major financial setbacks, sought to collect separation pay differentials
based on certain allowances by the company.
Ratio: The allowances did not form part of petitioners wages. The housing, transportation and Bislig (granted because the hostile
environment in Bislig) were not customarily given and were subject to certain conditions. These allowances are not facilities in the
contemplation of the law because they were for the benefit of PICOP and not the employees.
SLL International Cables Specialist v NLRC
Facts: Respondents were employed by petitioners on 4 different projects. The respondents alleged illegal dismissal and underpayment of
wages (because petitioner deducted the value of facilities from their wages).
Ratio: Food, lodging, electricity and water were not facilities but supplements and could not be deducted from the wages of respondents.
Facilities are items of expense necessary for the laborers and his familys existence and subsistence so that by express provision of law, they
form part of the wage when furnished by employer and are deductible therefrom. Supplements constitute extra remuneration or special
privilege or benefits given to or received by the laborer over and above their ordinary earnings or wages. Respondents were also not illegally
dismissed.

c. Cash Wage/Commission

Article 97(f)
(f) "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 the fair and reasonable value, as determined by the Secretary of Labor and Employment, 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.
Omnibus Rules, Book III, Rule VII-A, Sec. 4
SEC. 4. Cash Wage the minimum wage rates prescribed in Section 1 hereof shall be basic, cash wages without deducting therefrom
whatever benefits, supplements or allowances which the employees enjoy free of charge aside from the basic pay. An employer may provide
subsidized meals and snacks to his employees provided that the subsidy shall not be less than 30% of the fair and reasonable value of such
facilities. In such a case, the employer may deduct from the wages of the employees not more than 70% of the value of the meals and snacks
enjoyed by the employees, provided that such deduction is within the written authorization of the employees concerned.
Songco v NLRC
Facts: Petitioners services were terminated by Zuelig on the ground of retrenchment due to financial losses. Petitioners wanted their
commissions to be included in the payment of separation pay.
Ratio: The commissions form part of the separation pay. They are direct remunerations for services rendered which contributed to the
increase of income of the employee. If the contrary is held, then it would be tantamount to saying that this kind of salesmen do not receive
any salary and are therefore not entitled to separation pay- which is obviously erroneous.
Boie Takeda v De la Serna
Facts: In a routine inspection by the Labor and Development Officer, petitioner was found to have underpaid 13th month pay to its
employees. Such finding was based on a guideline issued by the Labor Secretary declaring that commissions formed part of basic pay.
Ratio: Basic salary does not include commissions. Implementing rules cannot add to or detract from the provisions of law it is designed to
implement. Sec. 5(a) of the Revised Guidelines on the Implementation of the 13th Month Pay Law issued by then Labor Secretary Drilon is
null and void.
Phil. Duplicators v NLRC
Facts: Petitioners urge the court to reverse its previous decision ordering petitioner to pay 13th month pay to its employees computed on
the basis of their fixed wages plus sales commissions citing the then newly decided case of Boie Takeda.
Ratio: The facts of the Boie Takeda and those of Phil. Duplicators are different, petition is thus denied. In the latter case, it was found that the
salesmen were paid a small fixed salary and that the greater part of their wages came from sales commission. Thus, the commissions there
were part of the wage of the petitioners-salesmen.

d. Gratuity and Salary/Wages,
Difference

Plastic Town Center Corp. v NLRC
Facts: In a CBA, petitioner company and respondent-employees agreed that the company would give gratuity pay upon resignation
depending on the number of years of service and based on the monthly salary of the employee. Employees sued for unfair labor practices
because petitioner only gave gratuity pay based on 26 days of work instead of 30 days equivalent to one month.
Ratio: Gratuity pay should be computed on the basis of 30 days for one month salary. The Civil Code expressly provides that a month is 30
days, unless the month is specifically named. Gratuity pay is not intended to pay a worker for actual services rendered, it may be enforced
once it forms part of a contractual understanding even though such benefit is not mandatory.

e. Effect on Benefits

Labor Code Article 100
Art. 100. Prohibition against elimination or diminution of benefits. Nothing in this Book shall be construed to eliminate or in any way
diminish supplements, or other employee benbefits being enjoyed at the time of promulgation of this Code.
Davao Fruits Corp. v Associated Labor Union
Facts: Davao Fruits, contrary to what it had been doing previously, removed the inclusion of sick. Vacation and maternity leaves, premium
for work done on rest days and special holidays, and pay for regular holidays, from the computation of its 13th month pay. It alleges that
they had erroneously included such before. ALU, in behalf of the rank and file employees of Davao Fruits, filed suit.
Ratio: Davao Fruits is correct that the remunerations not part of basic salary should not be included in the computation of 13th month pay,
but they still need to pay it now because of the prohibition in Art. 100 of the Labor Code on diminution of benefits.

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