Memorandum

Re: On-call Employees

Date: 31 May 2016

Sec. 5, Rule I, Book III, of the Implementing Rules of the Labor Code
provides,

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.

(b) An employee who is required to remain on call in the

employers 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. On the other hand, 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.

Based on the foregoing, if the employee on-call can use the waiting time
before engaging into work, effectively and gainfully for his own purpose, such
waiting time will not be considered as hours worked.

Therefore, since they are not considered working hours, the time waiting
to be engaged to work will not be compensated and only the hours worked
when they get a call will be paid.