3 GENERAL RIGHT OF EMPLOYER OVER CONDITIONS OF EMPLOYMENT except aslimite !

!" special la#$ a% empl&"e' is ('ee t&'e)*late$ acc&' i%) t& +is &#% isc'eti&% a% ,* )me%t$ all aspects &( empl&"me%t$ i%cl* i%)+i'i%)$ #&'- assi)%me%ts$ #&'-i%) met+& s$ time$ place a% ma%%e' &( #&'-$ t&&ls t& !e *se $ p'&cessest& !e (&ll&#e $ s*pe'.isi&% &( #&'-e's$ #&'-i%)'e)*lati&%s$ t'a%s(e' &( empl&"ees$ #&'s*pe'.isi&%$la"/&(( &( #&'-e's a% iscipli%e$ ismissal a% 'ecall&( #&'-e's0 (San Miguel Brewery Sale v. Ople) 1 S& l&%) as a c&mpa%"2s p'e'&)ati.es a'e exe'cise i%)&& (ait+ (&' t+e a .a%ceme%t &( empl&"e'2s i%te'esta% %&t (&' t+e p*'p&se &( e(eati%) &' ci'c*m.e%ti%)t+e 'i)+t &( t+e empl&"ees *% e' special la#s &' *% e' .ali a)'eeme%ts$ t+e SC #ill *p+&l t+em0 (San Miguel Brewery Sale v. Ople) 3 S*pe'.is&'s$ li-e ma%a)e's$ %&t e%title t& &.e'time pa"0 4 A taxi 'i.e' #+& is %&t &!se'.i%) a%" #&'-i%) +&*' is %&t c&.e'e !" t+e ei)+t/+&*' La!&' La#0 Art. 83. Normal hours of work. T+e normal hours of work &( a%" empl&"ee s+all not exceed eight (8) hours a day 0 General Rule applicable to health personnel: Healt+ pe's&%%el i% cities a% m*%icipalities #it+ a p&p*lati&% &( atleast &%e milli&% 56$777$7778 &' i% +&spitals a% cli%ics #it+ a !e capacit" &( at least &%e +*% 'e 56778 s+all +&l 'e)*la' &((ice +&*'s (&' ei)+t 598 +&*'s a a"$ (&' (i.e 538 a"s a #ee-$excl*si.e &( time (&'meals$ Exception: :+e'e t+e exigencies of the service 'e;*i'e t+ats*c+ pe's&%%el #&'- (&' six (6) days or forty-eight (48) hours $i% #+ic+ case$ t+e" s+all !e entitled to an additional compensation of at least thirty percent (30 ) of their regular wagefor work on the sixth day 0 !ealth personnel (&' t+e p*'p&se &( A't0 39 &( t+e La!&' C& e$ t+e" include resident physicians" nurses" nutritionists"dietitians" pharmacists" social workers" la#oratorytechnicians" paramedical technicians" psychologists"midwives" attendants and all other hospital or clinic personnel 0Pa't/time #&'- t+e #a)e a% t+e !e%e(its &( a pa't/time' a'ei% p'&p&'ti&% t& t+e %*m!e' &( +&*'s #&'-e 0F&'t"/+&*' #&'- #ee- #&*l %&t !e applica!le i( t+e'e is

at'ai%i%) a)'eeme%t !et#ee%t+e 'esi e%t p+"sicia% a% t+e+&spital a% t+e t'ai%i%) p'&)'am is *l" acc'e ite &' app'&.e !" t+e app'&p'iate )&.e'%me%t a)e%c"0 Art. 84. Hours worke . !ours worked s+all include <5a8all time *'i%) #+ic+ a% empl&"ee is 'e;*i'e t& !e &% *t" &'t& !e at a p'esc'i!e #&'-place= a% 5!8all time *'i%) #+ic+ a% empl&"ee is s*((e'e &' pe'mitte t& #&'-05c8Rest pe'i& s &( s+&'t *'ati&% *'i%) #&'-i%) +&*'s0 $est periods of short duration during working hours shall #ecounted as hours worked% !ompresse "ork "eek > Res&'te t& !" t+e empl&"e' t& p'e.e%t se'i&*s l&sses *e t& ca*ses !e"&% +is c&%t'&l0 > I%stea &( #&'-i%) 4 a"s a #ee-$ t+e empl&"ees #ill !e 'e)*la'l" #&'-i%) (&' less t+a% 4 a"s !*t eac+#&'- a" excee s 9 +&*'s0 F&' t+e +&*'sexcee i%) 9i% a #&'- a"$ t+e empl&"ees #ai.e t+ei' OT pa" !eca*se$ i% 'et*'%$ t+e" #ill %& l&%)e' i%c*' t'a%sp&'ta% &t+e' expe%ses0 > All&#e &% c&% iti&% t+at it is ('eel" a)'ee *p&% !et#ee% t+e empl&"e' a% ma,&'it" &( t+e empl&"ees0F*'t+e'$ t+e a''a%)eme%t s+&*l %&t imi%is+ t+eempl&"ees? m&%t+l" &' ail" pa" &' t+ei' esta!lis+e empl&"me%t !e%e(its0 > Exte% e #&'- a" i% C:: s+&*l %&t excee 6@#&'- +&*'s0 :&'- excee i%) 6@ +'s i% a a" &' 19+'s i% a #ee- s+&*l !e c&%si e'e OT0 "aitin# $ime 5a8:aiti%) time spe%t !" a% empl&"ee s+all !ec&%si e'e as #&'-i%) time i(< A #aiti%) is a% i%te)'al pa't &( +is #&'-$ &' A t+e empl&"e' is 'e;*i'e &' e%)a)e !" t+eempl&"e' t& #ait05!8:&'-i%) #+ile &% call a% empl&"ee #+& is 'e;*i'e t& 'emai%&% call i% t+e empl&"e'?s p'emises &' s&cl&se t+e'et& t+at +e ca%%&t *se t+e time e((ecti.el"a% )ai%(*ll" (&' +is &#% p*'p&se0

Art. 8%. &eal perio s. S*!,ect t& s*c+ 'e)*lati&%s as t+e Sec'eta'" &( La!&' ma" p'esc'i!e$ it s+all !e t+e *t" &( e.e'" empl&"e' t& )i.e +isempl&"ees not less than sixty (60) minutes time-off

(&' t+ei' regular meals 0 General Rule: &ot less than ' hour time-off (&' 'e)*la' meals is non-compensa#le 0 Except: Meal pe'i& &( not less than (0 minutes i% t+e(&ll&#i%) cases is compensa#le +&*'s #&'-e 05 a 8 : + e ' e t + e work is nonmanual #&'- i% %at*'e or &es not i%.&l.e strenuous physical exertion =5 ! 8 : + e ' e t + e esta#lishment 'e)*la'l" operates not lessthan sixteen hours a a"=5 c 8 I % c a s e s & ( actual or impending emergencies or there is urgent work t& !e pe'(&'me &% mac+i%e'ies$e;*ipme%t &' i%stallati&%s t& a.&i se'i&*s l&ss #+ic+t+e empl&"e' #&*l &t+e'#ise s*((e'= a% $5 8:+e'e t+e #&'- is %ecessa'" t& prevent serious lossof perisha#le goods 0 > $est periods or coffee #reaks '*%%i%) ('&m 3 t& @7mi%*tes a'e c&%si e'e as compensa#le working time 0 > T& s+&'te% meal time t& less t+a% @7 mi%*tes is %&tall&#e 0 I( t+e s&/calle Bmeal timeC is less t+a% @7mi%*tes$ it !ec&mes &%l" a 'est pe'i& 0 Art. 8'. Ni#ht shift ifferential. E.e'" empl&"ee s+all !e paid a night shift differential &( not less than ten percent ('0 ) of his regular wage for eachhour of work performed #etween ten o)clock in the evening and six o)clock in the morning 0

> I( #&'- &%e !et#ee% 67 pm a% 4 am is OT #&'-$t+e NSD s+&*l !e !ase &% t+e OT 'ate0 Emplo(ees Not !o)ere b( Ni#ht *hift +ifferential 6 0 ) & . e ' % m e % t e m p l & " e e s = @0'etail a% se'.ice esta!lis+me%ts 'e)*la'l" empl&"i%)%&t m&'e t+a% (i.e 538 #&'-e's=3 0 m a % a ) e ' i a l e m p l & " e e s = 10(iel pe's&%%el a% &t+e' empl&"ees #+&se time a% pe'(&'ma%ce is *%s*pe'.ise !" t+e empl&"e'= a% $30 &mestic +elpe's$ a% pe's&%s i% t+e pe's&%al se'.ice&( a%&t+e'0 Art. 8,. -)ertime work. :&'- ma" !e pe'(&'me !e"&% ei)+t 598 +&*'s a a" p'&.i e t+at t+e empl&"ee is pai (&' t+e overtime work $ a% additional compensation e*uivalent to his regular wage plusat least twenty-five percent ((+ ) thereof 0 :&'- pe'(&'me #eyond eight hours on a holiday or rest day shall #e paid anadditional compensation e*uivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30 ) thereof% Art. 88. .n ertime not offset b( o)ertime. ,ndertime work &% a%" pa'tic*la' a" shall not #e offset #yovertime work &% a%" &t+e' a"0 Pe'missi&% )i.e% t& t+eempl&"ee t& )& &% lea.e &% s&me &t+e' a" &( t+e #ee- s+all%&t exempt t+e empl&"e' ('&m pa"i%) t+e a iti&%alc&mpe%sati&% 'e;*i'e i% t+is C+apte'0 Reason: O((setti%) t+e *% e'time +&*'s a)ai%st OT +&*'s#&*l 'es*lti% *% *e deprivation of the employee-s extra pay for ./ work% > $ight to ./ cannot #e waived 0 0ut #+e% t+e alle)e #ai.e' &( OT pa" is in consideration of #enefits and privileges which may even exceed the ./ pay" thewaiver may #e permitted% Art. 8/. Emer#enc( o)ertime work. A%" empl&"ee ma" !e re*uired !" t+e empl&"e' to performovertime work in any of the following cases1 6 0 : + e % the country is at war or when any other national or local emergency

+as !ee% ecla'e !" t+e Nati&%al Assem!l" &' t+e C+ie( Exec*ti.e=@ 0 : + e % i t is %ecessa'" to prevent loss of life or property or in case of imminent danger to pu#lic safety *e t& a% act*al &' impe% i%) eme')e%c" i%t+e l&calit" ca*se !" se'i&*s acci e%ts$ (i'e$ (l&& $t"p+&&%$ ea't+;*a-e$ epi emic$ &' &t+e' isaste' &' calamit"=3 0 : + e % t + e ' e i s urgent work to #e performed onmachines $ i%stallati&%s$ &' e;*ipme%t$ i% &' e' to

avoid serious loss or damage to the employer &' s&me &t+e' ca*se &( simila' %at*'e=1 0 : + e % t + e # & ' - i s % e c e s s a ' " to prevent loss or damage to perisha#le goods = a% $30 2here the completion or continuation of the work started #efore the eighth hour is necessary to prevent serious o#struction or pre3udice to the#usiness &' &pe'ati&%s &( t+e empl&"e'04 0 : + e % & . e ' t i m e # & ' - i s necessary to avail of favora#le weather or environmental conditions #+e'e pe'(&'ma%ce &' ;*alit" &' #&'- is epe% e%tt+e'e&%0A%" empl&"ee 'e;*i'e t& render overtime work

*% e' t+isA'ticle shall #e paid the additional compensation 'e;*i'e i%t+is C+apte'0 Art. /0. !omputation of a itional compensation. 4or purposes of computing overtime and other additional remuneration as 'e;*i'e !" t+is C+apte'$ t+e 5regular wage5 &( a% empl&"ee shall include the cash wage only $ #it+&*t e *cti&% &% acc&*%t &( (acilities p'&.i e !" t+e empl&"e'0 Re#ular "a#e i%cl* es t+e cas+ #a)e &%l"$ #it+&*t e *cti&% &% acc&*%t &( (acilities p'&.i e !" t+e empl&"e'0 !hapter 11"EE234 RE*$ 5ER1-+*Art. /6. Ri#ht to weekl( rest a(. 6t shall #e 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 ((4) consecutive hours after every six (6) consecutive normal work days% T+e empl&"e' s+all ete'mi%e a% sc+e *le t+e #ee-l" 'est a" &( +is empl&"ees s*!,ect t& c&llecti.e !a')ai%i%)a)'eeme%t a% t& s*c+ '*les a% 'e)*lati&%s as t+e Sec'eta'"&( La!&' a% Empl&"me%t ma" p'&.i e0 H&#e.e'$ t+eempl&"e' s+all 'espect t+e p'e(e'e%ce &( empl&"ees as t& t+ei' #ee-l" 'est a" #+e% s*c+ p'e(e'e%ce is !ase &% 'eli)i&*s)'&*% s0 > 0usiness on 7undays8!olidays /all esta!lis+me%tsa% e%te'p'ises ma" &pe'ate &' &pe% (&' !*si%ess &%S*% a" a% H&li a"s p'&.i e t+at t+e empl&"ees a'e)i.e% t+e #ee-l" 'est a" a% t+e !e(its as p'&.i e i% t+is R*le0 > 2eekly $est 9ay e.e'" empl&"e' s+all )i.e +isempl&"ees a 'est pe'i& &( %&t less t+a% @1c&%sec*ti.e +&*'s a(te' e.e'" six c&%sec*ti.e %&'mal#&'- a"s0 > :reference of employee t + e p ' e ( e ' e % c e & ( t + e empl&"ee as t& +is #ee-l" a" &( 'est s+all !e'especte !" t+e empl&"e' i( t+e same is #ased onreligious grounds% A T+e empl&"ee s+all ma-e known his preference t& t+e empl&"e' in writing at least ; days#efore the desired effectivity &( t+e i%itial 'est a" s& p'e(e''e 0 A :+e'e$ however

$ t+e c+&ice &( t+e empl&"ee ast& +is 'est a" !ase &% 'eli)i&*s )'&*% s #illi%e.ita!l" 'es*lt in serious pre3udice or o#struction to the operations &( t+e *% e'ta-i%)a% t+e empl&"e' ca%%&t %&'mall" !e expecte t&'es&'t t& &t+e' 'eme ial meas*'es$ the employer may so schedule the weekly rest day of hischoice for at least ( days in a month% > 7chedules of $est 9ay s+all !e ma e -%&#% t& t+eempl&"ees t+'&*)+ written notices posted c&%spic*&*sl" i% t+e #&'- place at least one week #efore they #ecome effective 0 Art. /7. "hen emplo(er ma( re8uire work on a rest a(.General Rule: T+e empl&"e' ca%%&t c&mpel empl&"ees t&#&'- &% a 'est a"0 Exceptions: T+e empl&"e' ma" 'e;*i'e +is empl&"ees t&#&'- &% a%" a"<6 0 I % c a s e & ( actual or impending emergencies ca*se !" se'i&*s acci e%t$ (i'e$ (l&& $ t"p+&&%$ ea't+;*a-e$epi emic &' &t+e' isaste' &' calamit" t& p'e.e%t l&ss&( li(e a% p'&pe't"$ &' immi%e%t a%)e' t& p*!licsa(et"=@0 6n cases of urgent work to #e performed &% t+emac+i%e'"$ e;*ipme%t$ &' i%stallati&%$ t& a.&i se'i&*s l&ss #+ic+ t+e empl&"e' #&*l &t+e'#ises*((e'=3 0 I % t + e e . e % t & ( a#normal pressure of work *e t&special ci'c*msta%ces$ #+e'e t+e empl&"e' ca%%&t&' i%a'il" !e expecte t& 'es&'t t& &t+e' meas*'es=1 0 T & prevent loss or damage to perisha#le goods =3 0 : + e ' e t + e nature of the work 'e;*i'es c&%ti%*&*s&pe'ati&%s a% t+e st&ppa)e &( #&'- ma" 'es*lt i%i''epa'a!le i%,*'" &' l&ss t& t+e empl&"e'=4 0 D % e ' other circumstances analogous &' simila' t&t+e (&'e)&i%) as ete'mi%e !" t+e Sec'eta'" &( La!&' a% Empl&"me%t= a% E 0 : + e % t + e # & ' - i s % e c e s s a ' " to avail offavora#le

weather or environmental conditions #+e'e pe'(&'ma%ce &' ;*alit" &( #&'- is epe% e%t t+e'e&%0 > 2hen an employee volunteers to work on his rest day *% e' &t+e' ci'c*msta%ces$ he shall express suchdesire in writing $ +e s+all exp'ess s*c+ esi'e i%#'iti%)$ s*!,ect t& pa"me%t &( a iti&%alc&mpe%sati&%0 Art. /3. !ompensation for rest a(9 *un a( or holi a(work. 2here an employee is made or permitted to work on his scheduled rest day" he shall #e paid an additional compensation of at least thirty percent (30 ) of his regular wage% A% empl&"ee s+all !e e%title t& s*c+ a iti&%alc&mpe%sati&% (&' #&'- pe'(&'me &% S*% a" &%l" #+e% it is+is esta!lis+e 'est a"0:+e% t+e %at*'e &( t+e #&'- &( t+e empl&"ee is s*c+ t+at +e+as %& 'e)*la' #&'- a"s a% %& 'e)*la' 'est a"s ca% !esc+e *le $ +e s+all !e pai a% a iti&%al c&mpe%sati&% &( atleast t+i't" pe'ce%t 537F8 &( +is 'e)*la' #a)e (&' #&'- pe'(&'me &% S*% a"s a% +&li a"s0 2ork performed on any special holiday shall #e paid anadditional compensation of at least thirty percent (30 ) of the regular wage of the employee% :+e'e s*c+ holiday work falls on the employee)s scheduled rest day" +e s+all !e e%title t& a% a iti&%al c&mpe%sati&% &( at least fifty per cent (+0 )of his regular wage% :+e'e t+e c&llecti.e !a')ai%i%) a)'eeme%t &' &t+e' applica!leempl&"me%t c&%t'act stip*lates t+e pa"me%t &( a +i)+e' p'emi*m pa" t+a% t+at p'esc'i!e *% e' t+is A'ticle$ t+eempl&"e' s+all pa" s*c+ +i)+e' 'ate0

!hapter 111H-31+A4*9 *ER:1!E 1N!EN$1:E 3EA:E* AN+*ER:1!E !HARGE*Art. /4. Ri#ht to holi a( pa(. E.e'" #&'-e' s+all !e pai +is 'e)*la' ail" #a)e *'i%)'e)*la' +&li a"s$ except i% 'etail a% se'.ice esta!lis+me%ts'e)*la'l" empl&"i%) less t+a% te% 5678 #&'-e's=T+e empl&"e' ma" 'e;*i'e a%empl&"ee t& #&'- &% a%"+&li a" !*t s*c+ empl&"ee s+all !e pai a c&mpe%sati&%e;*i.ale%t t& t#ice +is 'e)*la' 'ate= a% As *se i% t+is A'ticle$ G+&li a"G i%cl* es< Ne# Yea'2s Da"$Ma*% " T+*'s a"$ G&& F'i a"$ t+e %i%t+ &( Ap'il$ t+e (i'st &( Ma"$ t+e t#el(t+ &( H*%e$ t+e (&*'t+ &( H*l"$ t+e t+i'tiet+ &( N&.em!e'$ t+e t#e%t"/(i(t+ a% t+i'tiet+ &( Decem!e' a% t+e a" esi)%ate !" la# (&' +&l i%) a )e%e'al electi&%0 Emplo(ees Not !o)ere b( Holi a(s 5a( 6 0 ) & . e ' % m e % t e m p l & " e e s = @0'etail a% se'.ice esta!lis+me%ts 'e)*la'l" empl&"i%)less t+a% te% 5678 #&'-e's=3 0 m a % a ) e ' i a l e m p l & " e e s = 10(iel pe's&%%el a% &t+e' empl&"ees #+&se time a% pe'(&'ma%ce is *%s*pe'.ise !" t+e empl&"e'= a% $30 &mestic +elpe's$ a% pe's&%s i% t+e pe's&%al se'.ice&( a%&t+e'0 Absences > Empl&"ee &% lea.e &( a!se%ce #it+ pa" e%title t&t+e !e%e(it p'&.i e +e'ei%0 > Empl&"ee &% lea.e &( a!se%ce #it+&*t pa" &% t+e a"imme iatel" p'ece i%) a 'e)*la' +&li a" ma" %&t !e pai t+e 'e;*i'e +&li a" pa" i( +e +as %&t #&'-e &% s*c+ 'e)*la' +&li a"0 > :+e'e t+e a" imme iatel" p'ece i%) t+e +&li a" isa %&%/#&'-i%) a" i% t+e esta!lis+me%t &' t+esc+e1 *le 'est a" &( t+e empl&"ee$ +e s+all %&t !e eeme t& !e &% lea.e &( a!se%ce &% t+at a"$ i%#+ic+ case +e s+all !e e%title t& t+e +&li a" pa" i( +e #&'-e &% t+e a" imme iatel" p'ece i%) t+e%&%/#&'-i%) a" &' 'est a"0 > /emporary or :eriodic 7hutdown and /emporary<essation of 2ork (6%e inventory" repair of e*uipment) 'e)*la' +&li a"s (alli%) #it+i% t+is pe'i& is compensa#le 0 > /emporary or :eriodic 7hutdown and /emporary<essation of 2ork 9ue to 0usiness $everses 'e)*la' +&li a"s (alli%) #it+i% t+is pe'i& is not compensa#le 0 Holi a( 5a( of !ertain Emplo(ees 5a8 5ri)ate *chool $eachers i%cl* i%) (ac*lt" mem!e's&( c&lle)e a% *%i.e'sities ma" %&t !e pai 'e)*la' +&li a"s *'i%) semest'al .acati&%s0 Pai (&' t+e'e)*la' +&li a"s *'i%) C+'istmas .acati&%05!8 Emplo(ee 5ai b( Results

5Pa"me%t &% Piece :&'-8 +&li a" pa" s+all %&t !e less t+a% +is a.e'a)e ail"ea'%i%)s (&' t+e last E act*al #&'-i%) a"s p'ece i%)t+e 'e)*la' +&li a"= P'&.i e +&#e.e'$ t+at i% %& cases+all t+e +&li a" pa" !e less t+a% t+e applica!le

statutory minimum wage rate.(c) Seasonal Workers may not be paid the requiredholiday pay during off-season when they are not atwork.(d) Workers Without Regular Working ays entitledto the benefits. ouble !oliday

an employee who is entitled to holiday payshould recei"e at least #$$% of his basic wage e"en if he didnot work on that day& pro"ided& he was present or on lea"ewith pay on the preceding work day. 'f he worked& he isentitled to ($$% of his basic wage. Successi"e Regular !olidays where there are two (#)successi"e regular holidays& an employee may not be paid for both holidays if he absents himself from work on the dayimmediately preceding the first holiday& unless he works onthe first holiday& in which case he is entitled to his holiday payon the second holiday.)o be entitled to two (#) successi"e holidays& employee must*(+) be present on the day immediately preceding the + st holiday, or (#) be on lea"e with pay. !olidays +. -ew .ear/s day-0an. +#. 1aundy )hursday-1o"able date(. 2ood 3riday-1o"able date4. 5raw ng 6agitingan-5pril 78. 9abor ay-1ay +:. 'ndependence ay-0une +#;. -ational heroes ay-9ast Sunday of 5ugust<. =onifacio ay--o". ($7. >idul 3it/r-1o"abledate+$. ?hristmas ay- ec. #8++. Ri@al ay- ec. ($ Special ays +. Special -on-working ays#. Special Aublic !olidays(. Special national !oliday4. 5ll Saint/s ay--o". +8. 9ast ay of the .ear- ec. (+:. -inoy 5quino ay-5ug. #+ Rules on Aayment of !oliday Aay+.Regular !olidays a. 'f it is employee/s regular work day* Bnworked*-+$$% Worked*o+ st < hrs-#$$%o>Ccess of < hrs-D($% of hourly rate onsaid day b. 'f it is employee/s rest day* Bnworked*-+$$% Worked*o+ st < hrs-D($% of #$$%o>Ccess of < hrs-D($% of hourly rate onsaid day #.Special ays Bnworked no pay unless there is afa"orable company policy& practice or ?=5 granting payment of wages onspecial days e"en if unworked. Workedo+ st < hrs-D($% of the daily rate of +$$%o>Ccess of < hrs-D($% of hourly rate onsaid day 3alling on employee/s rest day and if workedo+

st < hrs-D8$% of the daily rate of +$$%o>Ccess of < hrs-D($% of hourly rate onsaid day (.Special Working !olidays only basic rate 5rt. 78. Right to ser"ice incenti"e lea"e. >"ery employee who has rendered at least one year of ser"ice shall be entitled to a yearly ser"ice incenti"e lea"e of fi"edays with pay .)his pro"ision shall not apply to those who are alreadyenEoying the benefit herein pro"ided & those enEoying "acationlea"e with pay of at leastfi"e days and those employed inestablishments regularly employing less than ten employees or in establishments eCempted from granting this benefit bythe Secretary of 9abor and >mployment after considering the

"iability or financial condition of such establishment.)he grant of benefit in eCcess of that pro"ided herein shall not be made a subEect of arbitration or any court or administrati"eaction. Ser"ice 'ncenti"e 9ea"e (S'9) is commutable to itsmoney equi"alent if not used or eChausted at the endof the year. 5t least + year ser"ice ser"ice for not less than +# months&whether continuous or broken reckoned from the date theemployee started working. >mployees -ot ?o"ered by S'9

+. go"ernment employees, #. managerial employees, (. field personnel and other employees whose time and performance is unsuper"ised by the employer, 4. domestic helpers& and persons in the personal ser"iceof another, 8. those who are already enEoying the benefit herein pro"ided, :. those enEoying "acation lea"e with pay of at least fi"e(8) days, ;. those employed in establishments regularlyemploying less than ten (+$) employees, and& <. those eCempted by the Secretary of 9abor. 5rt. 7:. Ser"ice charges. 5ll ser"ice charges collected by hotels& restaurants and similar establishments shall be distributed at the rate of eighty-fi"e percent (<8%) for all co"ered employees and fifteen percent(+8%) for management. )he share of the employees shall beequally distributed among them. 'n case the ser"ice charge isabolished& the share of the co"ered employees shall beconsidered integrated in their wages. Ser"ice ?harges apply only to establishments collectingser"ice charges such as hotels& restaurants& lodging houses&nightclubs& cocktail lounge& massage clinics& bars& casinos andgamblinghouses& and similar enterprises& including thoseentities operating primarily as pri"ate subsidiaries of the2o"ernment. >mployees co"ered all employees of employers are co"ered&regardless of their positions& designations or employmentstatus& and irrespecti"e of the method by which their wages are paid eCcept to managerial employees . istribution <8% distributed equally among the co"eredemployees. +8% for the disposition by management to answer losses and breakages and distribution to managerialemployees at the discretion of the management in thelatter case. istributed and paid to the employees not less thanonce e"ery # weeks or twice a month at inter"als noteCceeding +: days.

Super"isors share in the +8%. )he 9abor ?odespeaks of Fmanagement&G not Fmanagerialemployees.G Hacation 9ea"e I Sick 9ea"e not required by law anddepends on "oluntary employer policy or collecti"e bargaining. Solo Aarent 9ea"e a parental lea"e of not more than ;working days e"ery years shall be granted to any solo parentemployee who has rendered ser"ice of at least one (+) year. Solo parent woman who gi"es birth as a result of rape or crimes against chastity& a widow or widower&a spouse separated legally or de facto for at least oneyear and so forth. )he claimant must show thatheIshe is left alone with the responsibility of parenthood. 9ea"e Bnder R5 7#:# (5nti-Hiolence 5gainst Women andtheir ?hildren 5ct of #$$4) allows the "ictim of "iolence&which may be physical& seCual& or psychological& to apply for the issuance of a protection order. 'f such"ictim is anemployee& she is entitled to a paid lea"e of up to +$ days inaddition to other paid lea"es under the 9abor ?ode& other lawsand company policies. )he employee has to submit a certification from theAunong =arangay or 6agawad& or prosecutor or clerk of court that an action under R5 7#:# has been filedand is pending. Aaternity 9ea"e 5ct of +77: (R.5. -o. <<+<;) 't grants se"en days of paternity lea"e with full pay to marriedmale employees in the pri"ate and public sectors. )heconditions for entitlement are*(a)the claimant& married male employee is employed atthe time of deli"ery of his child,

(b)he is cohabiting with his wife at the time she gi"es birth or suffers a miscarriage,(c)he has applied for paternity lea"e in accordance withSec. 4 of the lawJs implementing rules,(d)his wife has gi"en birth or suffered a miscarriage.

'n the Re"ised 'mplementing Rules issued by K9>and the epartment of !ealth& abortion has beendelisted from the co"erage of paternity lea"e law. 1oreo"er& the entitlement of lea"e is se"en calendar days. AR>S' >-)'59 >?R>> -K. <8+Requiring 5ll>mployers to Aay )heir >mployees 5 +(th1onth AayRe"ised 2uidelines on the 'mplementation of the +( th 1onth pay 9awAayment of +(th-month Aay. 5ll employers are herebyrequired to pay all their rank-and-file employees a +( th -month pay not later than ecember #4 of e"ery year. )hirteenth-month pay shall mean one twelfth (+I+#) of the basic salary of an employee within a calendar year, >mployers co"ered. -)he ecree shall apply to all employerseCcept to* (a))he 2o"ernment and any of itspolitical subdi"isions & including go"ernment-owned andcontrolled corporations& eCcept those corporationsoperating essentially as pri"ate subsidiaries of the2o"ernment,(b) >mployers already paying their employees +(-month pay or more in a calendar year or itsequi"alent at the time of this issuance,(c) >mployers of household helpers and persons in the personal ser"ice of another in relation to suchworkers, and(d) >mployers of those who are paid on purelycommission & boundary& or task basis& andthose whoare paid a fiCed amount for performing a specificwork& irrespecti"e of the time consumed in the performance thereof& eCcept where the workers are paid on piece-rate basis in which case the employer shall be co"ered by this issuance insofar as suchworkers are concerned.5s used herein& workers paid on piece-rate basis shall refer tothose who are paid a standard amount for e"ery piece or unit of work produced that is more or less regularly replicated &without regard to the time spent in producing the same.)he term Lits equi"alentL as used in paragraph c) hereof shall include ?hristmas bonus& mid-year bonus nd other cashbonuses amounting to not less than +I+#th of the basic salary but shall

not include cash and stock di"idends& cost of li"ing allowances and all other allowances regularly enEoyed by theemployee& as well as non-monetary benefits. 1inimum amount -the minimum +( th month pay required bylaw shall not be less than +I+# of the total basic salary earned by an employee within acalendar year. =asic Salary - for the purpose of computing the +( th month pay shall include all remuneration or earning paid by hisemployer for ser"ices rendered but does not includeallowances and monetary benefits which are considered or integrated as part of the regular or basic salary& such as thecash equi"alent of unused "acation and sick lea"e credits&o"ertime premium& night differential and holiday pay& and costof li"ing allowances. +( th -month Aay for ?ertain )ypes of >mployees a. >mployees paid by results entitled to the mandated+( th -month pay based on their total earnings duringthe calendar year. b. )hose with multiple employer entitled to therequired +( th month pay from all their pri"ateemployers regardless of their total earnings fromeachor all of their employers. c. Ari"ate school teachers entitled to the required +( th month pay if they ha"e rendered ser"ice for at leastone (+) month within a year.

+( th -month Aay of resigned or Separated >mployee Such resigned or separated employee is entitled of the amountequi"alent to +I+# of his total basic salary earned during suchyear when he was still working with his employer.?onsistent with the principle of equity& the employer can alsorequire the employee to demand the employee to clear himself of all the liabilities and accountabilities upon the terminationof the relationship. )itle ''W52>S?hapter 'AR>9'1'-5R. 15))>RS5rt. 7;. efinitions. 5s used in this )itle* Aerson means an indi"idual& partnership& association&corporation& business trust& legal representati"es& or anyorgani@ed group of persons. >mployer includes any person acting directly or indirectlyin the interest of an employer in relation to an employee andshall include the go"ernment and all its branches& subdi"isionsand instrumentalities& all go"ernment-owned or controlledcorporations and institutions& as well as non-profit pri"ateinstitutions& or organi@ations. >mployee includes any indi"idual employed by anemployer. >mploy includes to suffer or permit to work. Wage paid to any employee shall mean the remuneration or earnings & howe"er designated& capable of being eCpressed interms of money & whether fiCed or ascertained on a time& task& piece& or commission basis& or other method of calculating thesame& which is payable by an employer to an employee under a written or unwritten contract

of employment for work doneor to be done& or for ser"ices rendered or to be rendered and includes the fair and reasonable "alue & as determined by theSecretary of 9abor and >mployment& of board& lodging& or other facilities customarily furnished by the employer to theemployee. Wage 'ncludes 3acilities or ?ommodities (5rt. 7; (f)3acilities include articles or ser"ices (such as board andlodging) for the benefit of the employee or his family ('RR of the 9abor ?ode). 3acilities as istinguished from SupplementsSupplement when the benefit or pri"ilege gi"en to theemployee constitute an eCtra remuneration o"er and abo"e his basic or ordinary earning or wage. 't is not wage deductible. Requirements for facilities to be wage-deductible (a)Aroof must be shown that such facilities arecustomarily furnished by the trade,(b)Aro"ision of deductible facilities must be "oluntarilyaccepted in writing by the employee, and&(c)facilities must be charged at fair and reasonable "alueas determined by the Secretary of 9abor and>mployment. 5rt. 7<. 5pplication of )itle. )his )itle shall not apply to farm tenancy or leasehold& domestic ser"ice and persons working in their respecti"e homes in needle work or in any cottage industry dulyregistered in accordance with law. )he intention of this article is to eCclude small businesses that probably cannot afford to pay thewage rates set by law. ?hapter ''1'-'1B1 W52> R5)>S5rt. 77. Regional minimum wages. )he minimum wage rates for agricultural and non-agricultural employees and workers in each and e"ery regionof the country shall be those prescribed by the Regional )ripartite Wages and Aroducti"ity =oards. (5s amended bySection (& Republic 5ct -o. :;#;& 0une 7& +7<7). Who sets minimum wageM oRegional )ripartite Wages and Aroducti"ity=oardo?ongress 1inimum wage the lowest wage rate fiCed by law that anemployer can pay his employees.?omplaint may be brought before the K9> regional office(5rt. +#7) or 9abor 5rbiter (5rt. #+;).