Professional Documents
Culture Documents
The following are the acts of the employer that The purposes of the law in imposing such standard
constitute the elements of an Employer-Employee are to safeguard the health and welfare of the
Relationship: laborer and to minimize unemployment by
compelling employers to utilize different work shifts.
1. selection and engagement of the employee;
2. the payment of wages; 5. Is there a special rule with respect to normal
3. power of dismissal; and working hours?
4. control test
Yes. For health personnel in cities and
NOTE: The above enumeration is also known as municipalities with a population of at least 1M or in
the “four-fold” test in establishing employment hospitals and clinics with a bed capacity of at least
relationship. 100, their regular office hours shall be 8 hours a day
for five days a week, or 40 hours a week, exclusive
2. Which among the above mentioned elements is the of time for meals.
most crucial or important indicia of an employer-
employee relationship? In case of exigencies, they may work for 6 days or
for 48 hours, but they shall be entitled to an
The last element, the “control test” is the most additional compensation of at least 30% of their
important index of the existence of the regular wage for work performed on the 6th day.
relationship.
6. Who are considered “health personnel”?
The CONTROL TEST refers to the employer’s
power to control or right to control the employee not The term “health personnel” includes resident
only as to the result of the work to be done but also physicians, nurses, nutritionists, dieticians,
as to the means and methods by which the same is pharmacists, social workers, laboratory technicians,
to be accomplished. paramedical technicians, psychologists, midwives,
attendants and all other hospital or clinic personnel.
3. Who are covered by Title I, Book III of the Labor
Code as amended? 7. In certain situations, what if the work-shift is less
than eight (8) hours a day, as in the cases of part-
Art. 82 of the Labor Code as amended time workers?
unequivocally states that “Title I, Book III of the
Labor Code dealing with hours of work, weekly rest Art. 83 of the Labor Code, as amended, does not
periods, holidays, service incentive leaves and prohibit work less than the “normal hours of work”
service charges, covers all employees in all or work of less than eight (8) hours per day.
establishments, whether for profit or not, except the
following employees: What the law regulates is work hours exceeding
eight. The law prescribes the maximum but not the
a. Government employees minimum. Therefore, part-time work, or a day’s
b. Managerial employees work of less than eight (8) hours is not prohibited.
c. Officers and members of the managerial staff This part-time work is also authorized by the last
d. Field personnel part of Art. 124 of the labor Code, as amended.
e. Members of the family of the employer who and
dependent on him for support. 8. What is included in determining “Hours Worked”?
f. Domestic helpers
g. Persons in the personal service of another Hours worked shall include all time during which an
h. Workers paid by results. employee is required to be on duty or to be at a
prescribed workplace; all time during which an
The aforementioned employees are not entitled to: employee is suffered or permitted to work; and rest
periods of short duration during working hours. If a
overtime pay meal period is less than twenty (20) minutes, it
premium pay for rest days and holidays becomes only a rest period and is thus considered
night shift differential pay as work time.
holiday pay
service incentive leave
service charges 9. What are the principles in determining hours
worked?
4. The value of benefits is equal to the
Based on Book III of the Implementing Rules, compensation due them for the shortened meal
the following are the principles in determining period;
hours worked:
5. Overtime pay will become due and demandable
1. All hours are hours worked which the employee after the new time schedule; and
is required to give to his employer, regardless
of whether or not such hour are spent in 6. The arrangement is of temporary duration.
productive labor or involve physical or mental
exertion. THE LAW ON NIGHTSHIFT DIFFERENTIAL
2. An employee need not leave the premises of 11. What is Nightshift Differential?
the workplace in order that his rest period shall
not be counted, it being enough that he stops Nightshift Differential refers to the additional
working, may rest completely and may leave his compensation of not less than ten percent (10%) of
workplace, to go elsewhere whether within or an employee’s regular wage for every hour of work
outside the premises of his workplace. Rest done between 10:00 PM and 6:00 AM, whether or
periods of short duration shall be counted as not such period is part of the worker’s regular shift.
hours worked (an example of which are 10-
minute coffee breaks). 12. Leila works in a call center from 6:00 a.m. to 2:00
p.m. and was paid Php 200.00 per hour. After one
3. If the work performed was necessary, or it month, she was re-assigned and her shift was
benefited the employer, or the employee could changed to 10:00 p.m. to 6:00 a.m. Compute for the
not abandon his work at the end of his normal total pay plus night shift differential.
working hours because he had no replacement,
all time spent for such work shall be considered Since her entire shift is within the period covered by
as hours worked if the work is with the the nightshift differential, all the eight hours worked
knowledge of his employer or immediate by Leila shall have an additional 10%.
supervisor.
Her pay shall be computed as follows:
4. The time during which an employee is inactive NSD:
by reason of interruptions in his work beyond (10% x Php 200) x 8 Hours 160.00
his control shall be considered time either if the
imminence of the resumption of work requires 10:00 p.m. – 6:00 a.m. = 200 x 8 1,600.00
the employee’s presence at the place of work + NSD pay 160.00
or if the interval is too brief to be utilized Total Pay 1,760.00
effectively and gainfully in the employee’s own
interest. THE LAW ON OVERTIME WORK
13. Define overtime pay.
THE LAW ON MEAL PERIODS
Overtime pay refers to the additional compensation
10. Is it always required by law that in order to be non- of 25% when work is rendered on the regular
compensable, meal periods should not be less than working day of the employee or 30% when work is
one (1) hour? rendered on one’s work day, or on a special holiday
or regular holiday, of an employee’s regular wage
No. The employees may request that their meal for work performed beyond eight (8) hours within
period be shortened so that they can leave work the worker’s 24-hour workday.
earlier than the previously established schedule.
14. What is the rationale behind such additional
The following are the requisites to be complied with compensation? Can the right to overtime pay be
in order to have such arrangement: waived?
1. The employees voluntarily agree in writing to a The rationale behind overtime pay is the fact that
shortened meal period and are willing to waive when one is required to render overtime work, one
the overtime pay for such shortened meal exerts more effort, physical and/or mental that what
period; he usually exerts in a workday.
2. There will be no diminution whatsoever in the He is also delayed in doing other things he usually
salary and other fringe benefits of the does after working. It is the additional work, labor or
employees existing before the effectivity of the service employed and the adverse effects of his
shortened meal period; prolonged stay that justify and are the real reason
for said extra compensation.
3. The work of the employees does not involve
strenuous physical exertion and they are 15. How does the imposition of overtime pay promote
provided with adequate coffee breaks; employment?
The imposition of overtime pay promotes to avoid serious loss or damage to the employer
employment because it compels the employer to or some other cause of similar nature;
utilize several work shifts instead of requiring an
employee to work beyond 8 hours. d) When work is necessary to prevent loss or
damage to perishable goods;
Here, the employer can save money because
instead of paying an employee his regular wage e) Where the completion or continuation of the
plus the corresponding overtime pay of 25% or 30% work started before the eight hour is necessary
as the case may be, the employer will just be to prevent serious obstruction or prejudice to
required to pay another employee his regular wage. the business or operations of the employer; and
16. Because of an appointment with the dentist, Sam f) When it is necessary to avail of favorable
had to leave work early. Thus, he was undertime for weather or environmental conditions where
that day for three hours. The next day, he was performance or quality of work is dependent
required to stay for three hours after work in order thereon.
to prepare a presentation. On payday, Sam saw on
his pay slip that his pay was not deducted for his In the situations enumerated, the employer must
undertime. However, he also found out that he was still of course pay the corresponding overtime rate.
not paid overtime for the extra three hours he
worked for the preparation of the presentation.Is the 18. Is an express order from the employer to render
HR department correct in offsetting Sam’s overtime work essential in order for one to be
undertime from his supposed overtime pay? entitled to overtime pay?
No. Article 88 of the Labor Code as amended, No. Express instruction from the employer to the
otherwise known as “the non-offsetting rule,” employee to render overtime work is not required
provides that “Undertime work on any particular day for the employee to be entitled to overtime pay; it
shall not be offset by overtime work on any other is sufficient that the employee is permitted or
day. Permission given to the employee to go on suffered to work.
leave on some other day shall not exempt the
employer from paying the additional compensation However, written authority after office hours during
required in this chapter (overtime pay)”. rest days and holidays are required for entitlement
to compensation.
If such offsetting is allowed, it will be unfair for Sam
because undertime represent only his regular THE LAW ON WEEKLY REST PERIODS
hourly rate of pay while the overtime hours reflect
not only his hourly rate but as well as the 19. Explain the concept of rest day. Who determines
corresponding overtime pay. the rest day of an employee?
To offset two items that are not of equal value would It simply means that an employee should be
result in the undue deprivation of Sam’s overtime provided a rest period of not less than twenty-four
pay. (24) consecutive hours after every six (6)
consecutive normal workdays. (Art. 91 (a) Labor
17. Can an employer legally compel his employees to Code as amended)
render overtime work even against their will?
The determination of rest days is within the scope
As a general rule, an employee cannot be made to of management prerogative.
render overtime work against his will.
It is the employer who determines and schedules
However, the following situations give the employer the weekly rest day of an employee.
the right to compel an employee to render overtime
work as an exception to the general rule:
20. Is the management’s prerogative on rest days
a) When the country is at war or when any national absolute?
or local emergency has been declared by the
National Assembly or the Chief Executive; No. The second sentence of Article 91 (b) of the
Labor Code as amended provides that the
b) When it is necessary to prevent loss of life or employer shall respect the preference of employees
property or in case of imminent danger to public as to their weekly rest day when such preference is
safety due to an actual or impending based on religious grounds.
emergency in the locality caused by serious
accidents, fire, flood, typhoon, earthquake, 21. Does it necessarily mean that whenever an
epidemic, or other disaster or calamity; employee’s preference on his weekly rest day is
based on religious grounds, the employer has no
c) When there is urgent work to be performed on choice but to always grant it?
machines, installations, or equipment, in order
No. When such preference will prejudice the On the other hand, vacation/sick leaves may even
operations of the undertaking and the employer be impliedly waived through acquiescence.
cannot normally result to other remedial measures,
the employer may so schedule the weekly rest day Service Incentive Leaves (SIL) may be commutable
that meets the employee’s choice for at least two to cash, while vacation/sick leaves cannot.
(2) days a month.
THE LAW ON PAYMENT OF WAGES
THE LAW ON SERVICE INCENTIVE LEAVE PAY
(SILP)? 26. With what should the employer pay the wages of his
employees?
22. What does the law on service incentive leave
provide? The employer must pay with legal tender. He
cannot pay his employees by means of promissory
It provides that every covered employee who has notes; vouchers; coupons; tokens; tickets; chits; or
rendered at least 1 year of service shall be entitled any object other than legal tender.
to a yearly service incentive leave of 5 days with
pay. However, payment by check or money order may
be allowed if the same is customary on the date of
23. In what instance is the right to Service Incentive effectivity of the Labor Code; necessary because of
Leave not available? special circumstances as determined by the
Secretary of Labor; or stipulated in the CBA.
The right is not available to those workers or
employees who are: Payment by check is also authorized where the ff
conditions are met:
a. already enjoying the said benefits; a. there is a bank or other facility for encashment
b. already enjoying vacation leave with pay for at within a radius of 1 kilometer from the
least five (5) days; workplace;
c. employed in establishments regularly
employing less than ten (10) employees; and b. the employer, or any of his agent or
d. employed in establishments exempted from representatives, does not receive any
granting this benefit by the Secretary of Labor. pecuniary benefit directly or indirectly from the
arrangement;
24. Mr. Garcill worked part-time in Comeleco
Corporation for more than one (1) year. Is he c. the employees are given reasonable time
entitled to Service Incentive Leave? during banking hours to withdraw their wages
from the bank which time shall be considered
Yes. Part-time workers are entitled to the full benefit as compensable hours worked if done during
of the yearly five (5) days Service Incentive Leave. working hours; and
The reason is that the law speaks of at least one (1)
year of service without any distinction for d. the payment by check is with the written
entitlement to said benefit. consent of the employees concerned if there is
no CBA authorizing the payment of wages by
25. Is Service Incentive Leave equivalent to Vacation bank checks.
and/or Sick leave?
27. When should wages be paid?
No. There are differences between service
incentive leave and vacation/sick leave. Wages must be paid at least once every two weeks
or twice a month at intervals not exceeding 16 days.
Service Incentive Leave (SIL) is a mandatory labor In case of force majeure or other circumstances
standard whereas the grant of vacation/sick leave beyond the employer’s control, payment must be
is voluntary; it results from the employer’s made immediately after such occurrence has
discretionary policy or from the CBA. ceased.
The Service Incentive Leave (SIL) is intended to
alleviate the economic condition of the workers for If the employee is engaged to perform a task which
it acts as replacement for regular income that would cannot be completed in 2 weeks and in the absence
not be earned during such instance. of CBA, the following rules shall govern:
One the other hand, vacation/sick leaves are a. Payment shall be made at intervals not
intended to afford a laborer a chance to get a much exceeding 16 days, in proportion to the amount
needed rest to replenish his worn out energies and of work completed;
acquire new vitality to enable him to meet him to
efficiently perform his duties and not merely to give b. Final settlement is made upon completion of the
him additional salary. work.
Service Incentive Leave (SIL) may not be waived. 28. Where should wages be paid?
Wages should be paid at or near the place of not have substantial capital or investment in the
undertaking. form of tools, equipment, machineries, work
premises, among others, and the workers
When payment cannot be effected at or near the recruited and placed by such persons are
place of work by reason of deterioration of peace performing activities which are directly related
and order conditions, or by reason of actual or to the principal business of such employer.
impending emergencies caused by fire, flood or
other calamity rendering payment thereat 32. What are the consequences of labor-onlt
impossible, payment may be made at any other contracting?
place.
The person acting as contractor shall be considered
Payment may also be made elsewhere when the merely as an agent of the employer and the latter
employer provides for free transportation to the shall be responsible to the workers in the same
employees back and forth. manner and extent as if the latter were directly
employed by him.
No employer shall pay his employees in any bar,
night or day club, drinking establishment, massage 33. What is job-contracting?
clinic, dance hall, or other similar places or in places
where games are played with stakes of money or It is an arrangement whereby a principal agrees to
things representing money except in the case of put out or farm out with a contractor or series of
persons employed in said places. contractor the performance or completion of a
specific job, work or service within a definite or
29. To whom should wages be paid? predetermined period, regardless of whether such
job, work, or service is to be performed or
Wages shall be paid directly to the workers to whom completed within or outside the premises of the
they are due. principal.
In case of force majeure rendering such payment 34. What are the elements of job contracting?
impossible, payment may be made through another
person provided said person is under written The following are the elements of job contracting:
authority given by the worker for the purpose.
a. the contractor or subcontractor carries on a
Payment through another person may also be distinct and independent business and
made when authorized under existing law, including undertakes to perform the job on his own
payments for insurance premiums of the employee account and under his own responsibility,
and union dues where the right to check-off has according to its own manner and method and
been recognized by the employer in accordance free from the control and direction of the principal
with a CBA or authorized in writing by the individual in all matters connected with the performance of
employees concerned. the work except as to the results thereof;
Where the employer is authorized in writing by the b. the contractor or subcontractor has substantial
employee to pay his wages to a member of his capital or investment; and
family, payment may be made to that person.
c. the agreement between the principal and
Payment may also be made to the heirs of the contractor or subcontractor assures the
worker. contractual employees entitlement to all labor
and occupational safety and health standards,
The employer may pay the wages of the deceased free exercise of the right to self-organization,
worker to the heirs without the necessity of intestate security of tenure and social and welfare
proceedings. benefits.
The visitorial power of the Secretary of Labor or any 38. A, B and C are employees of ABC Corporation.
of his duly authorized representative refers to the They filed complaints for non-payment of salaries,
power to have access to employer’s records and which is in the nature of a labor standards violation
premises at any time of the day or night whenever case, in the amount of P 4,000.00, P 7,500.00 and
work is being undertaken therein. P 10,000.00, respectively.
It includes the right to copy therefrom, to question Does the Secretary of Labor have jurisdiction over
any employee & investigate any fact, condition or the claims of A, B and C?
matter which may be necessary to determine
violations or which may aid in the enforcement of Yes. The Secretary of Labor, through the Regional
the Code and of any labor law, wage order, or rules Director, has jurisdiction over the claims of A, B and
and regulations. C who are still presently employed by ABC
Corporation . Republic Act No. 7730 removed the
The Secretary’s “duly authorized representative” limit of P 5,000.00 in 1994 based on the Supreme
herein is the Regional Director, the Labor Court ruling ruling in Servandos, Inc. vs. The
Regulations Officer or the Labor Employment or Secretary of Labor, xxxxx..
Enforcement or Safety Officer.
39. What will be the procedure to be followed in the
37. Briefly describe the enforcement power of the case presented in the preceding problem?
Secretary of Labor.
The procedure shall be as follows:
This refers to the power of the Secretary of Labor to a. An inspection order will be issued by the
compel the employer to comply with labor Regional Director to a Labor Relations Officer.
standards upon findings of violations discovered in
the course of the exercise of his visitorial power. b. The Labor Relations Officer will then inspect the
premises of the employer, and ask that the
Among these powers are the power to: records be produced. He will also conduct
1. Issue Compliance Orders based on the findings inquiries from the employees.
of labor employment and enforcement officers
or industrial safety engineers made in the c. If the Labor Relations Officer finds that there
course of inspection were indeed violations of Labor Standard Laws,
he will furnish a report to the Regional Director
2. Issue Writs of Execution for the enforcement of and to the employer.
orders except in cases where the employer
contests the findings of the said labor officers d. If the employer does not do anything within the
and raises issues supported by documentary reglementary period within which to contest the
proofs which were not considered in the course findings, the Regional Director continues to
of inspection have jurisdiction over the claims.
3. Order Work Stoppage/Suspension of 40. What must the employer do in order to divest the
Operations when noncompliance with the law Regional Director of his jurisdiction over the case
or implementing rules and regulations poses and transfer it to the Labor Arbiter?
grave & imminent danger to the health and
safety of the workers in the workplace. In order to divest the Regional Director of his
jurisdiction, the employer must:
4. Conduct hearings within 24 hours to determine
whether: a. contest the findings of the Labor Relations
a. an order for stoppage of Officer;
work/suspension of operations shall be b. raise the issue that there is a need to thresh out
lifted or not. evidentiary matters;
c. show that such evidentiary matters cannot be
obtained in the ordinary course of inspection.
THE JURISDICTION OF THE REGIONAL DIRECTOR
( ART. 129 Labor Code) AND THE LABOR ARBITER
(ART. 217 (a) (6), Labor Code) IN THE
ADJUDICATION OF MONEY CLAIMS.
REQUISITES:
1. The claim is presented by an employee or
person employed in domestic or household
service or househelper;
Employees in all establishments, whether operated “Flexible work arrangements” refer to alternative
for profit or not, are covered by the law on labor arrangements or schedules other than the
standards. traditional or standard work hours, workdays and
workweek.
Who are excluded?
The effectivity and implementation of any of the
The following are excluded from the coverage of the flexible work arrangements should be temporary in
law on labor standards: nature.
The following shall be considered as compensable a. Reduced to less than six (6) days but the
hours worked: total number of work-hours of 48 hours per
week remains.
a. All time during which an employee is required
to be on duty or to be at the employer’s b. The normal workday is increased to more
premises or than eight (8) hours but not to exceed
b. to be at a prescribed workplace; and twelve (12) hours, without corresponding
c. All time during which an employee is suffered overtime premium.
or permitted to work.
This concept can be adjusted accordingly in cases
“Fair day’s wage for a fair day’s labor,” where the normal workweek of the firm is five (5)
remains the basic factor in determining the days.
employees’ wages and backwages
What are the conditions for its validity?
Any work in excess of said eight (8) normal hours is Unless there is a more favorable practice existing in
considered overtime work. the firm, work beyond eight (8) hours will not be
compensable by overtime premium provided the
total number of hours worked per day shall not
exceed twelve (12) hours.
In any case, any work performed beyond twelve b. All time during which an employee is suffered
(12) hours a day or forty-eight (48) hours a week or permitted to work.
shall be subject to overtime pay.
When is waiting time compensable?
POWER INTERRUPTIONS/BROWNOUTS
Waiting time spent by an employee shall be
What are the effects of power considered as working time if waiting is an integral
interruptions/brownouts? part of his work or the employee is required or
engaged by the employer to wait. Time spent
The following are the effects of work interruption waiting for work is compensable if it is spent
due to brownouts: “primarily for the benefit of the employer and [its]
business.”
a. Brown-outs of short duration but not exceeding
twenty (20) minutes shall be treated as worked OVERTIME WORK, OVERTIME PAY
or compensable hours whether used (Article 87, Labor Code)
productively by the employees or not.
What are some basic principles on overtime work?
b. Brown-outs running for more than twenty (20)
minutes may not be treated as hours worked 1. Work rendered after normal eight (8) hours of work
provided any of the following conditions are is called “overtime work.”
present:
1. The employees can leave their workplace In computing overtime work, "regular wage" or
or go elsewhere whether within or without "basic salary" means "cash" wage only without
the work premises; or deduction for facilities provided by the employer.
2. The employees can use the time effectively
for their own interest. 2. "Premium pay" means the additional compensation
required by law for work performed within eight (8)
c. In each case, the employer may extend the hours on non-working days, such as regular
working hours of his employees outside the holidays, special holidays and rest days.
regular schedules to compensate for the loss of
productive man-hours without being liable for 3. "Overtime pay" means the additional compensation
overtime pay. for work performed beyond eight (8) hours.
The following shall be considered as compensable e. For overtime work performed on a rest day
hours worked: which falls on a regular holiday, the overtime
pay is plus 30% of the basic hourly rate which
a. All time during which an employee is required includes 160% additional compensation.
to be on duty or to be at the employer’s
premises or to be at a
prescribed workplace; and
What is the distinction between PREMIUM PAY and May an employee validly refuse to render overtime
OVERTIME PAY? work under any of the afore-said circumstances?
“Premium pay” refers to the additional No, When an employee refuses to render
compensation required by law for work performed emergency overtime work under any of the
within eight (8) hours on non-working days, such as foregoing conditions, he may be dismissed on the
rest days and regular and special holidays. ground of insubordination or willful disobedience of
the lawful order of the employer.
“Overtime pay” refers to the additional
compensation for work performed beyond eight (8) Can overtime pay be waived?
hours a day.
NO. The right to claim overtime pay is not subject to
Every employee who is entitled to premium pay is a waiver.
likewise entitled to the benefit of overtime pay.
Such right is governed by law and not merely by the
What is built-in overtime pay? agreement of the parties.
In case the employment contract stipulates that the NIGHT WORK (R.A. NO. 10151),
compensation includes built-in overtime pay and NIGHT SHIFT DIFFERENTIAL (ARTICLE 86,
the same is duly approved by the DOLE, the non- LABOR CODE)
payment by the employer of any overtime pay for
overtime work is justified and valid. What is the new law on night work?
What is emergency overtime work? (Article 89, R.A. No. 10151 [JUNE 21, 2011]
Labor Code).
a. Significance of the law.
a. General rule.
R.A. No. 10151 has repealed Article 130
The general rule remains that no employee may be [Nightwork Prohibition] and Article 131
compelled to render overtime work against his will. [Exceptions] of the Labor Code and accordingly
renumbered the same articles.
b. Exceptions when employee may be compelled
to render overtime work: Additionally, it has inserted a new Chapter V of
Title III of Book III of the Labor Code entitled
1. When the country is at war or when any other “Employment of Night Workers” which
national or local emergency has been declared addresses the issue on nightwork of all
by the National Assembly or the Chief employees, including women workers.
Executive;
Chapter V covers newly renumbered Articles
2. When overtime work is necessary to prevent 154 up to 161 of the Labor Code.
loss of life or property or in case of imminent
danger to public safety due to actual or b. Coverage of the law.
impending emergency in the locality caused by
serious accident, fire, floods, typhoons,
The law on nightwork applies not only to women
earthquake, epidemic or other disasters or
but to all persons, who shall be employed or
calamities;
permitted or suffered to work at night, except
those employed in agriculture, stock raising,
3. When there is urgent work to be performed on
fishing, maritime transport and inland
machines, installations or equipment, or in
navigation, during a period of not less than
order to avoid serious loss or damage to the
seven (7) consecutive hours, including the
employer or some other causes of similar
interval from midnight to five o'clock in the
nature;
morning, to be determined by the DOLE
Secretary, after consulting the workers’
4. When the work is necessary to prevent loss or
representatives/labor organizations and
damage to perishable goods;
employers.
5. When the completion or continuation of work
c. Night worker, meaning.
started before the 8th hour is necessary to
prevent serious obstruction or prejudice to the
"Night worker" means any employed person
business or operations of the employer; and
whose work covers the period from 10 o'clock
in the evening to 6 o'clock the following morning
6. When overtime work is necessary to avail of
provided that the worker performs no less than
favorable weather or environmental conditions
seven (7) consecutive hours of work.
where performance or quality of work is
dependent thereon.
NIGHT SHIFT DIFFERENTIAL PAY A “part-time worker” is an employed person
whose normal hours of work are less than
How is it reckoned and computed? those of comparable full-time workers.
Night shift differential is equivalent to 10% of
Part-time work may take different forms
employee's regular wage for each hour of work
performed between 10:00 p.m. and 6:00 a.m. of the depending on the agreed hours of work in a
following day. day, the days of work in a week or other
reference periods.
What is the distinction between night shift
differential pay and overtime pay? In the Philippines, however, the two most
common and acceptable forms are four (4)
When the work of an employee falls at night time, hours work per day and weekend work or
the receipt of overtime pay shall not preclude the
two (2) full days per week.
right to receive night differential pay.
CONTRACT FOR PIECE WORK
The reason is the payment of the night differential
(SEE CIVIL CODE)
pay is for the work done during the night; while the
payment of the overtime pay is for work in excess
of the regular eight (8) working hours. What is contract for piece work under the Civil
Code?
How is Night Shift Differential Pay computed?
By the contract for a piece of work, the
1. Where night shift (10 p.m. to 6 a.m.) work is regular work. contractor binds himself to execute a piece of
work for the employer, in consideration of a
a. On an ordinary day: Plus 10% of the basic certain price or compensation.
hourly rate or a total of 110% of the basic hourly
rate. The contractor may either employ only his
labor or skill, or also furnish the material.
b. On a rest day, special day or regular
holiday: Plus 10% of the regular hourly rate on
REST PERIODS
a rest day, special day or regular holiday or a
total of 110% of the regular hourly rate.
WEEKLY REST DAY
2. Where night shift (10 p.m. to 6 a.m.) work is overtime work.
What is the duration of weekly rest period?
a. On an ordinary day: Plus 10% of the overtime hourly rate It shall be the duty of every employer, whether
on an ordinary day or a total of 110% of the overtime operating for profit or not, to provide each of
hourly rate on an ordinary day. his employees a rest period of not less than
twenty-four (24) consecutive hours after
b. On a rest day or special day or regular holiday: Plus every six (6) consecutive normal work days.
10% of the overtime hourly rate on a rest day or special
day or regular holiday. Is the employer’s prerogative to determine the rest
period of its employees subject to limitations?
3. For overtime work in the night shift. Since overtime work
is not usually eight (8) hours, the compensation for
overtime night shift work is also computed on the basis of
Yes. The employer shall determine and
the hourly rate. schedule the weekly rest day of his employees
subject to CBA and to such rules and
a. On an ordinary day. Plus 10% of 125% of basic hourly regulations as the DOLE Secretary may
rate or a total of 110% of 125% of basic hourly rate. provide.
b. On a rest day or special day or regular holiday. Plus However, the employer shall respect the
10% of 130% of regular hourly rate on said days or a total preference of employees as to their weekly rest
of 110% of 130% of the applicable regular hourly rate. day when such preference is based on
religious grounds.
PART-TIME WORK
EMERGENCY REST DAY WORK
What is part-time work?
When can an employer require work on a rest day?
“Part-time work” is “a single, regular or
voluntary form of employment with hours of The employer may require any of its
work substantially shorter than those employees to work on their scheduled rest day
considered as normal in the establishment.” for the duration of the following emergency and
exceptional conditions:
a. In case of actual or impending f. Field personnel and other employees
emergencies caused by serious accident, whose time and performance is
fire, flood, typhoon, earthquake, epidemic unsupervised by the employer;
or other disaster or calamity, to prevent
loss of life and property, or in case of force g. Those who are engaged on task or contract
majeure or imminent danger to public basis or purely commission basis;
safety;
h. Those who are paid a fixed amount for
b. In case of urgent work to be performed on performing work irrespective of the time
machineries, equipment, or installations, to consumed in the performance thereof;
avoid serious loss which the employer
would otherwise suffer; i. Other officers and members of the
managerial staff;
c. In the event of abnormal pressure of work
due to special circumstances, where the j. Members of the family of the employer who
employer cannot ordinarily be expected to are dependent on him for support.
resort to other measures;
What are REGULAR and SPECIAL HOLIDAYS?
d. To prevent serious loss of perishable
goods; a. Regular Holidays
New Year’s Day - 1 January (Wednesday)
e. Where the nature of the work is such that Araw ng Kagitingan- 9 April (Wednesday)
the employees have to work continuously Maundy Thursday - 17 April
for seven (7) days in a week or more, as in Good Friday - 18 April
the case of the crew members of a vessel Labor Day - 1 May (Thursday)
to complete a voyage and in other similar Independence Day - 12 June (Thursday)
cases; and National Heroes Day- 25 August (Last
Monday of August)
f. When the work is necessary to avail of
Bonifacio Day - 30 November (Sunday)
favorable weather or environmental
Christmas Day - 25 December (Thursday)
conditions where performance or quality of
work is dependent thereon. Rizal Day - 30 December (Tuesday)
Generally, all employees are entitled to and c. Special Holiday (for all schools)
covered by the law on holiday pay. EDSA Revolution
Anniversary – 25 February (Tuesday)
Who are EXCLUDED from its coverage? Not included in the enumeration above on
regular holidays are (1) Eid’l Fitr and (2)
The following are excluded: Eidul Adha. The reason is that
a. Those of the government and any of the proclamations declaring the observance of
political subdivisions, including these national holidays are issued after the
government-owned and controlled approximate dates of the Islamic holidays
corporations; have been determined in accordance with
the Islamic calendar (Hijra) or the lunar
b. Those of retail and service establishments calendar, or upon Islamic astronomical
regularly employing less than ten (10) calculations, whichever is possible or
workers; convenient. To this end, the National
Commission on Muslim Filipinos (NCMF)
c. Domestic workers or Kasambahays; shall inform the Office of the President on
which days the holidays shall respectively
d. Persons in the personal service of another; fall.