EXCLUDED EMPLOYEES UNDER BOOK 3

1. Government employees
GOCC (look on the manner of creation)
a.) Special Law (charter) not covered governed by CSC
b.) Incorporated under the Corporation Code covered by the Labor code
2. Managerial employees
Managerial Ee under Art. 82 includes supervisors but not under Art. 212
Supervisors like the managerial Ee is not entitled for the benefits enjoyed by employees under Book 3
3. Field Personnel
Supervised - not excluded
Unsupervised - excluded
4. Members of the family of Er who are dependent on him for support
5. Domestic helpers
Homeworkers and House helpers distinguish
6. Persons in the personal service of another
7. Workers paid by result

FOUR-FOLD TEST (Saint Williams Dominican Church)

Selection of worker Power of dismissal
Payment of wage Right of control
Right of Control test - reserves the right to control not only the ends to be achieved but also the means to be
used in reaching such end. Actual control is not necessary. Right of control must exist

WHEN EMPLOYMENT RELATIONSHIP PRESENT

1. Salaried Insurance Agent
Great Pacific Life Insurance Corp., GR No. 73887, Dec. 21, 1989 (two types of salaried agent)
2. Jeepney Driver (Boundary-Hulog System), Taxi Driver, Barber
Citizens League of Free Workers vs. Abbas Er-Ee relationship exists between the owner of the jeepneys and drivers even if the
latter work under boundary system
3. Piece-rate workers (Art. 101)
4. Street-Hired Cargadores
5. Workers in Movie Project

Economic Dependent Test

(Angelina Francisco vs. NLRC, G.R. No. 170087, Aug. 31, 2006) Circumstances of economic activity:
The extent to which the services performed are integral part of employees business
The extent of the workers investment in equipment and facilities
The nature and degree of control exercised by the Er
The workers opportunity for profit and loss
The amount of initiative, skill, judgment or foresight required for the success of the claimed independent enterprise
The permanency and duration of the relationship between the worker and Er
The degree of dependency

NORMAL HOURS OF WORK (Art. 83)

Shall not exceed 8 hours it is not prohibited to have normal hours of work of less than 8 hours. What the law regulates is
work hours exceeding 8 hours
Hours worked shall include a.) all time during which the Ee is required to be on duty and b.) during which an employee is
suffered or permitted to work
Preliminary and postliminary activities are deemed performed during work hours where such activities are controlled or
required by the Er and primarily for the Ee benefit.

WAITING TIME
Waiting time spent by an Ee shall be considered as working time if the waiting is considered an integral part of his
work or if the Ee is required to engaged by an Er to wait
WORKING WHILE EATING
Meal time is not compensable if the Ee is completely freed from duties during his meal period even though he
remains in the workplace.
But an Ee is not relieved if he is required to perform his duties whether active or inactive, while eating
WORKING WHILE SLEEPING
Sleeping time may be considered working time if it is subject to serious interruption or takes place under conditions
substantially desirable than would likely to exist at the Ee home
ON CALL
An Ee who is required to remain on call on the Ee premises or so close thereto that he cannot use the time
effectively for his own purposes is working while on call
An Ee who is not required to to remain on the Ee premises but is merely required to leave words at his home or with
company officials where he may be reached is not working while on call
If Ee is kept within reach through a mobile telephone or other contact device not considered to be at work
TRAVEL TIME
Travel from home to work not compensable; Travel that is all in days work compensable; travel away from home
- compensable
WORK DAY is understood to be the 24 hour period which commences from the time the Ee regularly start to work
NIGHT SHIFT DIFFERENTIAL
10% - for each hour of work performed between 10 pm to 6 am
Not applicable to establishment employing less than 5 Ee
OVERTIME PAY
25% - work performed beyond 8 hours
30% - work performed beyond 8 hours on a holiday or rest day
Cannot be waived
When the tour of duty of a laborer falls at a night-time (between 10 pm to 6 am), the receipt of overtime pay will not preclude
the right to night differential pay. The latter is payment for work done during the night time while the other is payment for the
excess of the regular 8 hour work
An arrangement that the Ee overtime pay is included to his regular or basic salary is valid
CCW number of work is reduced but number of work hours in a day is increased to more than 8 hours no overtime pay may be claim
REST DAY
It shall be the duty of the Er whether operating for profit or not, to provide each of his Ee a rest period of not less than 24
consecutive hours after every 6 consecutive normal work days
the Er shall determine and schedule the weekly rest day of his Ee subject to CBA however the Er shall respect the
preferences of the Ee as to their weekly rest day when such preference is based on religion
If no rest day Sunday will be the rest day of the Ee
RIGHT TO SERVICE INCENTIVE LEAVE
Every Ee who has rendered at least one year of service shall be entitled to a yearly SIL of five days with pay
Not applicable to establishments employing less than 10 Ee
one year of service means service within 12 months whether continuous or broken reckoned from the date the Ee starded
 working
Also applicable even if the Ee was employed for a period of 2 to 3 months
Part-time Ee are also entitled to the full five day SIL benefit and not on a pro rata basis
SERVICE CHARGES
All service charges collected by hotels, restaurants, and similar establishment shall be distributed at the rate of:
85% - for all covered Ee
15% - to the management
If Service charge is abolished considered as integrated in their wages
Tips go directly to the Ee