Professional Documents
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PERIODS, HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES, COVERS ALL
EMPLOYEES IN ALL ESTABLISHMENTS, WHETHER FOR PROFIT OR NOT, EXCEPT THE
FOLLOWING:
1. Government employees
2. Managerial employees
3. Officers and members of the managerial staff
4. Field personnel
5. Members of the family of the employer who are dependent on him for support
6. Domestic helpers
7. Persons in the personal service of another; ad
8. Workers paid by results (Secs. 1 and 2, Rule I, Book III, Rules Implementing the
Labor Code.)
9. The aforementioned employees are not entitled to overtime pay, premium pay for
rest days and holidays, night shift differential pay, holiday pay, service incentive
leave and service charges. (Poquiz, page 171)
GOVERNMENT EMPLOYEES
The terms and conditions of their employment are governed by the Civil Service Law.
In case of government-owned or controlled corporations with original charters, terms
and conditions of employment may be governed by such legislated charters.
Government-owned or controlled corporations without original charters are governed
by the Labor Code. (Poquiz, page 172)
DOMESTIC SERVANTS/ PERSONS IN THE
PERSONAL SERVICE OF ANOTHER
These are those who perform such services in the employer's home which
are usually necessary or desirable for the maintenance and enjoyment
thereof, or minister to the personal comfort, convenience, or safety of
the employer as well as the members of his employer's household. (Sec.
2[d], Rule I, Book III, Rules Implementing the Labor Code.)
A laundrywoman in staff houses of a company or within the premises of the
business of the employer, not actually serving the family of the employer,
is a regular employee. She is not included in the definition of domestic
servants. (Apex Mining Co. Inc. v NLRC, 196 SCRA 251)
NORMAL HOURS OF WORK
GR: The normal hours of work of any Ee shall not exceed 8 hours a day (LC, Art. 83).
XPNs:
Health personnel
Compressed workweek
The eight-hour work requirement does not, however, preclude the employer in the
exercise of its management prerogatives to reduce the number of working hours,
provided that there is no diminution of existing benefits. (Poquiz, page 176)
It is enacted not only to safeguard the health and welfare of the Ee or laborer, but
also in a way to minimize unemployment by forcing Ers, in cases where more than
8-hour operation is necessary, to utilize different shifts of laborers or Ees working
only for 8 hours each. (Manila Terminal Co. Inc vs The Court of Industrial
Relations, 1952)
COMPRESSED WORKWEEK
The normal workweek is reduced to less than 6 days but the total number of work-
hours of 48 hours per week shall remain. The normal workday is increased to
more than 8 hours but not to exceed 12 hours, without corresponding overtime
premium. The concept can be adjusted accordingly depending on the normal
workweek of the company (Department Advisory Order No. 2, Series of 2009).
DURATION OF THE MEAL PERIOD
Every Er shall give his Ees not less than 60 minutes or 1 hour time-off for regular
meals.
As a general rule, employees are entitled to at least one hour time-off for regular
meals which can be taken inside or outside company premises. For a full one-
hour undisturbed lunch break, the employees can freely and effectively use this
hour not only for eating but also for their rest and comfort which are conducive to
more efficiency and better performance in their work. Since the employees are no
longer required to work during this one-hour lunch break, there is no more need
for them to be compensated for this period. (Sime Darby Pilipinas, Inc. v. NLRC,
G.R. No. 119205)
NON- COMPENSABILITY OF THE MEAL PERIOD
Work day is the 24-hour period which commences from the time the Ee regularly
starts to work
Illustration:
If the worker starts to work 8 am today, the
workday is from 8 am today up to 8 am tomorrow. (Azucena, page 221)
Minimum normal working hours fixed by law need not be continuous to constitute the
legal working day.
OVERTIME WORK
Service rendered in excess of and in addition to eight hours on ordinary working days,
which are the prescribed daily work period, is overtime work. (Caltex Regular
Employees at Mla. Office v Caltex Phils., Inc., 247 SCRA 398)
NOTE: Express instruction from the Er to the Ee to render OT work is not required for
the Ee to be entitled to OT pay; it is sufficient that the Ee is permitted or suffered
to work. (Azucena, page 222) However, written authority after office hours during
rest days and holidays are required for entitlement to compensation.
OVERTIME PAY
Any employee who is permitted or required to work beyond eight hours on ordinary
working days shall be paid an additional compensation for the
overtime work in an amount equivalent to his regular wage plus at least 25% thereof.
It is the amount obtained by multiplying the overtime hourly rate by the number of
hours worked in excess of eight hours. (Poquiz, page 186)
UNDERTIME CANNOT OFFSET OVERTIME (ART.
88, LC)
Where a worker incurs undertime hours during his regular daily work, said undertime
hours should not be offset against the overtime hours on the same day or on any
other day (Azucena, page 233)
The rationale behind the law is reflected in the doctrine laid down by the Supreme
Court that "offsetting the overtime with undertime and at the same time charging
said undertime to the accrued leave is unfair and cannot be done" (NAWASA v
NWSA Consolidated Union, 11 SCRA 766, 778)
NIGHT WORK
Statutory minimum wage is the lowest wage rate fixed by law that an Er can pay his
workers.
Purpose of the minimum wage law
The compulsory payment of a fair statutory wage is a preventive action, not remedial,
for it settles the wage rates before industrial disputes arise thereby foreclosing
the eruption of social and economic disquietude.
EMPLOYER-EMPLOYEE RELATIONSHIP
Employment where the job, work or service to be performed is seasonal in nature and
the employment is for the duration of the season [IRR, Book VI, Rule I, Sec.5 (a)].
An employment arrangement where an Ee is engaged to work during a particular
season on an activity that is usually necessary or desirable in the usual business
or trade of the Er.
During off-season, the relationship of Er-Ee is not severed; the Seasonal Ee is merely
considered on LOA without pay. Seasonal workers who are repeatedly engaged
from season to season performing the same tasks are deemed to have acquired
regular employment (Hacienda Fatima v. National Federation of Sugarcane
Workers-Food and General Trade, G.R. No. 149440, January 28, 2003).
CASUAL EMPLOYMENT
No worker shall be dismissed except for a just or authorized cause provided by law
and after due process (Both substantive and procedural due process must be
afforded to the employee).
In case of regular employment, the requirement of substantive due process (Security
of Tenure) is satisfied when the Er does not terminate the services of an Ee
unless it is for a just cause or when authorized by the LC on Termination of
Employment (LC, Art. 279).
JUST CAUSE AUTHORIZED CAUSE
Those initiated by the employee Those initiated by the employer in
the exercise of Management
prerogative.
The law do not require that The law requires that the Separation
Separation pay be paid. pay be paid.