APPRENTICES
rules and regulations.
Statement of Objectives
1. To help meet the demand of the economy
for trained manpower;
2. To establish a national apprenticeship
program;
3. To establish apprenticeship standards.
Apprenticeship means practical training on the job
supplemented by related theoretical instruction
Apprentice is a worker who is covered by a written
apprenticeship agreement with an individual
employer or any recognized entity.
Apprenticeable Occupation means any trade, form
of employment or occupation which requires more
than 3 months of practical training.
Apprenticeship agreement is an employment
contract wherein the employer binds himself to
train the apprentice and the apprentice in turn
accepts the terms of training.
Qualifications of an Apprentice
1. At least 15 years of age (RA 7610 prohibits
employment of children below 15);
2. Possesses vocational aptitude and capacity
for appropriate tests; and
3. The ability to comprehend and follow
oral/written instructions.
Who may employ apprentices?
Only employers in the highly technical industries
may employe apprentices and only in
apprenticeable occupations approved by the DOLE.
(Art. 60)
Which body oversees the apprenticeship
program?
Sec. 18 of the TESDA Act expressly empowers
TESDA to implement and administer the
apprenticeship program in accordance with existing
Requisites for Employment of Apprentices
a. The employer should be engaged in a
business that is considered a highly
technical industry. An HTI is any activity
which utilizes the application of advanced
technology.
b. The job which the apprentice will work on
should be an apprenticeable occupation.
How long is the period of apprenticeship?
The period of apprenticeship shall not exceed 6
months. (Art. 61)
How much can an apprentice earn during
apprenticeship?
An apprentice shall earn not below 75% of the
applicable minimum age.
What is the ratio of theoretical to practical
training in an apprenticeship?
100 hours of theoretical instruction for every 2000
hours of practical training.
May a minor sign an apprenticeship agreement?
No. Art. 62 provides that an apprenticeship
agreement with a minor shall be signed in his
behalf by his parent or guardian, or if unavailable,
by the representative of the DOLE.
Where shall the apprenticeship program take
place?
The employer may choose from any venue:
a. Within the sponsoring firm, establishment
or entity;
b. Within the DOLE training center or other
public training institutions; or
c. Initial training in trade fundamentals in a
training center or other institutions with
 subsequent actual work participation within
the sponsoring firm or entity during the
final stage of training.
Where should a person file for breach of an
apprenticeship agreement, or enforcement of the
same?
The appropriate agency of the DOLE shall
investigate any violation of an apprenticeship
agreement, and may be appealed to the Secretary
of Labor within 5 days from the receipt of the
decision which shall be final and executory. (Art.
65, 66)
Does the exhaustion of administrative remedies
apply in settling apprenticeship agreement cases?
Yes. Art. 67 provides that no person shall institute
any action for the enforcement of any
apprenticeship agreement or damages for breach
of any such agreement, unless he has exhausted all
available administrative remedies.
Who administers the aptitude testing of
applicants?
Employers or entities with duly recognized
apprenticeship programs shall have primary
responsibility for providing aptitude tests. If in case
they do not have adequate facilities for the
purpose, the DOLE shall perform the same which
shall be free of charge. (Art. 68)
Who is responsible for the theoretical instruction
of apprentices?
By the employer, in cases where the program is
undertaken in the plant. If the employer is not
prepared to assume responsibility, the same may
be delegated to an appropriate government
agency. (Art. 69)
The organization of apprenticeship programs shall
be primarily a voluntary undertaking of employers
(Art. 70(a)), but the President of the Philippines
may require compulsory training of apprentices in
certain trades where shortage of trained
manpower is deemed critical as determined by the
Secretary of Labor, when national security or
particular requirements of economic development
so demand (Art. 70(b)); or the private companies
are required, where services of foreign technicians
are utilized by private companies in apprenticeable
trades (Art. 70(c)).
Are the training costs of an apprentice deductible
on the taxable income of an employer?
Yes. An additional deduction from taxable income
of ½ of the value of labor training expenses
incurred shall be granted to the employer;
provided
1. Such program is duly recognized by the
DOLE;
2. Such deduction shall not exceed 10% of
direct labor wage; and
3. The employer or enterprise who wishes to
avail of this incentive should pay his
apprentices the minimum wage. (Art. 71)
What are the instances where apprentices may be
admitted without compensation?
The secretary of Labor may authorize the hiring of
apprentices without compensation where:
1. It is required by the school or training
program curriculum; or
2. As a requisite for graduation or board
examination. (Art. 72)
Is there an employer-employee relationship
between a working scholar and the school?
None. The IRR provides that there is no employer-
employee relationship where there is written
agreement between them under which:
 1. The student agrees to work for the school in
exchange for the privilege to study free of
charge;
2. Provided the student is given real
opportunities, including such facilities as
may be reasonable and necessary to finish
their chosen courses under such
agreement.
What if a student, during the course of his training
injures a third party? Does the school become
liable?
Yes. The school shall be civilly liable provided that it
was done during the service for the same. (Filamer
vs. IAC)
LEARNERS
Persons hired as trainees in semi-skilled and other
industrial occupations which are non-
apprenticeable and which may be learned through
practical training on the job in a relatively short
period of time which shall not exceed 3 months.
(Art. 73)
When may Learners be hired?
When there are no experienced workers available,
provided the employment does not create unfair
competition in terms of labor costs or impair or
lower working standards. (Art. 74)
What is included in a Learnership Agreement?
1. The names and addresses of the learners;
2. The duration of the period, which shall not
exceed 3 months;
3. The salary rates of the learners which shall
not be less than 75% of the applicable
minimum wage; and
4. A commitment to employ the learners as
regular employees upon completion.
learners who have worked during the first 2
months shall be deemed regular employees
if the training is terminated before its
expiry, without fault of the learner. (Art. 75)
How are learners in piecework paid?
Learners employed in piece or incentive-rate jobs
during the training period shall be paid in full for
the work done. (Art. 76)
Compare and contrast learnership vs.
apprenticeship.
Similarities:
1. They both mean training periods for
jobs requiring skills that can be acquired
through actual work experience;
2. A learner and an apprentice may be
paid wages 25% lower than the
minimum legal wage.
Differences:
1. A learner trains in a semi-skilled job,
while an apprentice in a highly skilled
job;
2. The training period is lower in learners;
3. A learner is not considered an
apprentice while an apprentice is
conceptually a learner as well;
4. The employer is committed to hire the
learner-trainee as a regular employee,
while no such commitment exists in
apprenticeship; and
5. Apprenticeable occupations is legally
allowed only in highly technical
industries, while learnership is allowed
even for non-technical jobs.
HANDICAPPED WORKERS
Those whose earning capacity is impaired by
age/physical/mental deficiency or injury. (Art. 78)
When may handicapped workers be employed?
 1. When their employment is necessary to
prevent curtailment of employment
opportunities; and
2. When it does not create unfair competition
in labor costs or impair or lower working
standards. (Art. 79)
What is included in an employment agreement of
handicapped workers?
1. The names and addresses of the
handicapped workers;
2. The rate to be paid which shall not be less
than 75% of the minimum legal wage;
3. The duration of the employment; and
4. The work to be performed by such workers.
(Art. 80)
What is the eligibility for apprenticeship of
handicapped workers?
Such workers may be hired as apprentices or
learners if their handicap is not such as to
effectively impede the performance of job
operations in the particular occupations for which
they are hired. (Art. 81)
Note: The Magna Carta for Disabled Persons
ensures equal opportunities for disabled persons
and prohibits discrimination against them.
What is a Qualified Individual with a Disability?
It is an individual with a disability who, with or
without reasonable accommodation, can perform
the essential functions of the employment position
that such individual holds or desires, with
consideration given to the employer’s judgment as
to what functions of a job are essential, and if an
employer has prepared a written description
before advertising the job.
What is Sheltered Employment?
It refers to the provision of productive work for
disabled persons through workshops providing
facilities, projects or schemes to give them
opportunity to earn a living.
What constitutes acts of discrimination?
a. Limiting, segregating or classifying a
disabled job applicant;
b. Using qualification standards, tests or
criteria that tend to screen out a disabled
person;
c. Utilizing standards, methods or criteria of
administration that:
1. Has the effect of discrimination based
on disability; or
2. Perpetuate discrimination of others.
d. Providing less compensation by reason of
disability;
e. Favoring a non-disabled employee over a
qualified disabled employee;
f. Re-assigning or transferring a disabled
employee to a job or position by reason of
disability;
g. Dismissing or terminating a disabled
employee by reason of disability, unless the
employer can prove that he impairs the
performance of the work provided that the
employer first sought to provide reasonable
accomodation;
h. Failing to select or administer in tests which
accurately reflect the aptitude of the
disabled applicant or employee that such
test purports to measure rather than the
skills of such applicant or employee; and
i. Excluding the disabled persons from
membership in labor unions.
WORKING CONDITIONS AND REST PERIODS
To what employees shall the provisions on hours
of work apply?
It shall apply to all employees in all establishments
and undertakings whether for profit or not, but not
to:
 1. Government employees;
2. Managerial employees;
3. Field personnel;
4. Members of the family of the employer
who are dependent on him for support;
5. Domestic helpers;
6. Persons in the personal service of another;
and
7. Workers who are paid by results as
determined by the SOL. (Art. 82)
Who are considered managerial employees?
Refers to those whose primary duty consists of the
management of the establishment in which they
are employed.
Who are considered Field Personnel?
Refers to non-agricultural employees who regularly
perform their duties away from the principal place
of business or branch office of the employer and
whose actual hours of work cannot be determined
with reasonable certainty. (Art. 82)
When may an employer-employee relationship
become a question of law?
If the facts show an employer-employee
relationship, this conclusion shall stand even if the
contract states otherwise. The recognition of the
existence of such relationship is not dependent
upon the agreement of the parties. The
characterization by law prevails over that in the
contract.
When may an employer-employee relationship
become a question of fact?
In case an employer-employee relationship may be
present, but in another case, with different facts, it
may be absent.
Note: employer-employee relationship may cover
core or non-core activities of the employer’s
business. Depending on the applicability of the
tests of employment, an employer-employee
relationship may exist regardless of the nature of
activities involved.
Who is an employer?
Any person, natural or juridical, domestic or
foreign, who carries on in the Philippines any trade,
business, industry, undertaking or activity of any
kind and uses the services of another person who is
under his order as regards the employment. (Social
Security Law)
Who is an employee?
Any person who performs services for an employer
in which either mental or physical efforts are used
and who receives compensation for such services.
(SSL)
What are the tests in determining the existence of
employment relationship?
1. Four-fold test
a. The selection and engagement of the
employee;
b. The payment of wages;
c. The power of dismissal; and
d. The employer’s power to control the
employee with respect to the means
and methods by which the work is to be
accomplished, also known as the control
test.
Note: Employment is determined by the right-of-
control test and certain economic parameters.
Titles are weak indicators. (Sevilla vs. CA)
2. Economic Dependence Test
A two-tiered test involving:
a. The putative employer’s power to
control the employee; and
b. The underlying economic realities of the
activity or relationship.
What are the circumstances of economic activity?
 1. Extent to which the services are performed
are an integral part of the employer’s
business;
2. The extent of the worker’s investment in
equipment and facilities;
3. The nature and degree of control by the
employer;
4. The worker’s opportunity for profit and
loss;
5. The amount of initiative, skill, judgment or
foresight required for the success of the
claimed independent enterprise;
6. The permanency and duration of the
relationship between worker and employer;
and
7. The degree of dependency of the worker
upon the employer for his continued
employment in that line of business.
(Francisco vs. NLRC)
Note: the proper standard of economic
dependence is whether the worker is dependent
on the alleged employer for his continued
employment in that line of business. (Francisco vs.
NLRC)
What is the economic realities test?
When a worker possesses one attribute of an
employee and others of an independent
contractor, which make him fall within an
intermediate area, he may be classified under the
category of an employee when the economic facts
of the relation make it nearly one of employment
than one of independent business enterprise with
respect to the ends sought to be accomplished.
(Sunripe vs. CIR)
What are considered evidences of employment?
In a business establishment, and ID, cash vouchers,
SSS Registration, and memorandums.
Note: The presence or absence of employer-
employee relationship is note determined by the
basis of the employee’s compensation. The
existence of employment relationship is
determined by law; and cannot be negated by
simply repudiating it in the employment contract.
What are the two kinds of employment
conditions?
1. Statutory (provided for by law); and
2. Voluntary (initiated by the employer
unilaterally or by contractual stipulation).
Note: The stipulations must not be contrary to law,
morals, good customs, public order or public policy.
Why are Government Employees excluded from
coverage by the provisions on Art. 82-96?
They are governed by the Civil Service rules and
regulations, not by the Labor Code.
In the case of Managerial employees and staff?
They are governed by the Implementing Rules of
Book III of the Labor Code.
How about Field personnel?
Because their actual hours of work in the field
cannot be determined with reasonable certainty.
Employer’s family members? Why excluded?
They are outside the coverage of this title on
working conditions and rest periods.
Persons rendering personal service?
Because these persons are for the maintenance of
the employer’s home, or minister to the personal
comfort, convenience or safety of the employer.
As to workers paid by result?
They are paid by results and not on the basis of
time spend in working.
What is the purpose of the 8-hour labor law?
To safeguard the health and welfare of the laborer
or employee, and also to minimize unemployment.
GR: Normal hours of work of any employee shall
not exceed 8 hours a day.
XPN: In cases where the exigencies of the service
require, 48 hours which they shall be entitled to an
additional compensation of at least 30% of their
regular wage for work on the sixth day. (For
medical personnel)
Who are health personnel?
It shall include resident physicians, nurses,
nutritionists, dieticians, pharmacists, social
workers, lab techs, paramedics, psychologists,
midwives, attendants and all other hospital or clinic
personnel.
Note: Medical secretaries are also considered clinic
personnel.
May an employee be allowed to work for 12
hours?
Yes. A 12-hour workshift is validated by consent
and its four-hour overtime work with OT pay
becomes a contractual commitment. (Interphil
Union vs. Interphil Labs)
What does hours worked include?
a. All time during which an employee is
required to be on duty or to be at a
prescribed workplace; and
b. All time during which an employee is
suffered or permitted to work. (Art. 84)
Note: Rest periods of short duration during
working hours shall be counted as hours worked.
Note: Waiting time spent by an employee shall be
considered as working time if waiting is considered
an integral part of his work or if the employee is
required or engaged by an employer to wait.
(Zapanta)
Do working hours count if the employee is
working while eating?
Generally, the employee must be completely
relieved from duty for the purpose of eating
regular meals. But if the employee is not relieved
from such while eating, it is compensable.
Can a worker sleeping be working?
It is dependent upon the express or implied
agreement of the parties. In the absence of such
agreement, it will depend upon the nature of the
service and its relation to the working time.
Note: When a worker is “on call”, the time when
the laborer can leave his work and rest completely
shall not be counted in the computation. However,
if they are required to be in their place of work
before or after the regular working hours and
within the call of their employers, the time they
stay in the place of work should not be discounted
from their working hours.
Is the travel time to and from the place of work
counted in the working hours?
It depends. If an employee who travels from home
before his regular workday and returns to his home
at the end of the workday, such is not counted as it
is a normal incident of employment. But if
travelling is essentially a part of an employee’s
functions to his work, then it is counted.
Are lectures, meetings and training programs
counted as working time?
It need not be counted as working time if the
following criteria are met:
1. Attendance is outside of the employee’s
regular working hours;
2. Attendance is voluntary; and
3. The employee does not perform any
productive work during such attendance.
Note: In cases of seamen, the rule is that a laborer 3. The work does not involve strenuous
need not leave the premises of the factory, shop or physical exertion;
boat in order that his period of rest shall not be 4. The value of benefits is equal or
counted, it being enough that he “ceases to work”. commensurate with the compensation due
them;
What is the evidence required in cases of hours
5. The overtime pay of employees will become
worked?
due and demandable beyond 4:30 pm; and
Substantial evidences such as employment 6. The effectivity shall be of temporary
contract, payroll, notice of assignment or posting, duration as determined by the SOLE.
cash voucher or any other convincing evidence
What is the rate of night shift differential provided
which may attest to the actual hours of work of the
in the Code?
employee. (Prangan vs. NLRC)
Every employee shall be paid a night shift
What is the prescribed meal period for
differential of not less than 10% of his regular wage
employees?
for each hour of work performed between 10 and 6
It shall be the duty of every employer to give his in the morning. (Art. 86)
employees not less than 60 minutes of time-off for
Rationale: It cannot be regarded as desirable. It is
their regular meals. (Art. 85)
uneconomical unless overhead costs are unusually
However, meal break may be shortened with full heavy.
pay in cases where:
May night shift differential be waived?
a. The work is non-manual or does not involve
No. Additional compensation for nighttime work is
serious physical exertion;
founded on public policy, hence the same cannot
b. The establishment regularly operates not
be waived. (Mercury Drug vs. Dayao)
less than 16 hours a day;
c. There is actual or impending emergencies Who has the burden of proving a claim for night
or there is urgent work to be performed; shift differential pay?
and
The burden of proving that payment of such
d. The work is necessary to prevent serious
benefit has been made rests upon the party who
loss of perishable goods.
will suffer if no evidence at all is presented by
May the employees request their meal period be either party.
shortened?
What is Overtime compensation?
Yes. The DOLE may allow under the following
It is an additional pay for service or work rendered
conditions:
or performed in excess of 8 hours a day.
1. The employees voluntarily agree in writing
Rationale: The employee is made to work longer
to a shortened meal period and willing to
than what is commensurate with his agreed
waive the OT pay for such;
compensation for the statutorily fixed or
2. There will be no dimunition whatsoever in
voluntarily agreed hours of labor he is supposed to
the salary and other fringe benefits of the
do.
employees;
What is the rate of overtime work?
It must be equivalent to his regular wage plus at
least 25% thereof. Work performed beyond 8
hours on a holiday or rest day shall be paid an
additional compensation equivalent to the rate of
the first 8 hours + 30% thereof. (Art. 87)
Can overtime pay rate be higher than what is
prescribed?
Yes. Through Collective Bargaining Agreement.
(PNB vs. PEMA)
How is “Work Day” counted?
The Eight-hour Labor Law is understood to be the
24-hour period which commences from the time
the employee regularly starts to work.
Who is responsible for substantiation of overtime
work?
Rendition of work must be proved by substantial
evidence by the claimant. On the other hand, the
employer who avers payment must prove it.
Are the principles of estoppel and laches
applicable in action for recovery of compensation
for past overtime work?
No.
1. It would be contrary to the spirit of the
Eight-hour labor law, under which the
laborers cannot waive their right to extra
compensation;
2. The law principally obligates the employer
to observe it, so much so that it punishes
the employer for its violation and leaves the
employee free and blameless;
3. The employee is in such a disadvantageous
position as to be naturally reluctant or even
apprehensive in asserting a claim which
may cause the employer to devise a way for
exercising his right to terminate the
employment; and
4. An employer, who cannot expressly
renounce the right to extra compensation,
may be compelled to accomplish the same
thing by mere silence or lapse of time,
thereby frustrating the purpose of the law
by indirection.
May an employee waive his overtime pay?
General Rule: No. The right is intended for the
benefit of the laborers.
Exception: When the alleged waiver of overtime
pay is in consideration of benefits and privileges
which may be more than what will accrue to them
in overtime pay.
May the employer and employee stipulate that
the latter’s salary already includes overtime pay?
This is called all-inclusive salary, which is not per se
illegal. The arrangement is not unusual for
executives who, in the first place are not entitled to
overtime pay.
For non-executive employees, there should have
been express agreement to that effect.
What are the requisites of base pay with
integrated overtime pay?
1. A clear written agreement knowingly and
freely entered into by the employee; and
2. The mathematical result shows that the
agreed legal wage rate and overtime pay,
computed separately, are equal or higher
than the separate amounts legally due.
Can there be a built-in overtime pay in
Government-approved contracts?
Yes, provided that the said overtime pay was
already provided in the written contract with a
built-in overtime pay.
What is compressed workweek?
The number of work days is reduced but the
number of work hours in a day is increased to more
than eight, but no overtime pay may be claimed.
(DOLE Advisory No. 02-04)
What are the conditions laid down in CWW?
1. The scheme is expressly and voluntarily
supported by the majority of the employees
affected;
2. A certification from an accredited safety
organization that work beyond eight hours
is within the limits or levels of exposure set
by DOLE’s occupational safety and health
standards (in case of firms operating in
conditions that are hazardous to health);
and
3. The DOLE regional office is duly notified.
(DOLE Advisory No. 02-04)
What are the effects of such CWW?
1. Work beyond eight hours will not be
compensable by overtime premium, unless
there is a more favorable practice;
2. Employees are entitled to meal periods of
not less than 60 minutes and their leaves
and rest day pays shall not be impaired; and
3. Adoption of CWW shall in no case result in
dimunition of existing benefits.
Can a waiver of the right to OT pay under a CWW
program be waived?
Yes. Where it is shown that the person making the
waiver did so voluntarily, with full understanding of
what he was doing, and the consideration for the
quit claim is credible and reasonable, the
transaction must be recognized as a valid and
binding understanding.
What is a Flexible Work Arrangement?
FWA refers to alternative arrangements or
schedules other than the traditional standard work
hours, days or week.
What is included in an FWA?
1. Reduction of workdays;
2. Rotation of workers;
3. Forced leaves;
4. Broken-time schedule; and
5. Flexi-holiday schedule.
Can undertime be offset by overtime?
No. Undertime work on any particular day shall not
be offset by overtime work on any other day. (Art.
88)
Rationale: The unfairness would be evident from
the fact that undertime hours represent only the
employee’s hourly rate while overtime hours
reflect both of the employee’s hourly rate of pay
and appropriate overtime premium.
What are the instances when an employee may
be required to render overtime work?
1. When the country is at war or any other
national or local emergency has been
edeclared;
2. When it is necessary to prevent loss of life,
property or emergency in the locality
caused by serious calamities;
3. When there is urgent work to be performed
to avoid serious loss or damage to the
employer;
4. When the work is necessary to prevent loss
or damage to perishable goods; and
5. Where the completion of work started
before the eighth hour is necessary to
prevent serious obstruction or prejudice to
the business or operations of the employer.
(Art. 89)
WEEKLY REST PERIODS
1. It shall be the duty of every employer to
provide each of his employees a rest period
 of not less than 24 hours after every 6
consecutive normal work days.
2. The employer shall determine the schedule
and weekly rest day subject to CBA, as
regulated by the SOL. However, the
employer shall respect the preference of
employees when such is based on religious
grounds. (Art. 91)
What are the instances when an employer may
require work on a rest day?
1. In case of calamities, to prevent loss of life
and property;
2. In cases of urgent work to be performed on
machinery to avoid serious loss;
3. In the event of abnormal pressure of work
due to special circumstances;
4. To prevent loss or damage to perishable
goods;
5. Where the nature of work requires
continuous operations; and
6. Other circumstances as determined by the
SOL. (Art. 92)
What is the compensation for rest day, Sunday or
holiday work?
1. During scheduled rest days, an additional
30% of his regular wage;
2. If there are no regular workdays and rest
days, an additional of 30% of his regular
wage;
3. On any special holidays, an additional 30%
of the regular wage Provided: if the same
falls on his regular rest day, an additional
50% of his regular wage; and
4. Where the CBA or any other applicable
employment contract stipulates the
payment of a higher premium than that
prescribed, the employer shall pay such
higher rate. (Art. 93)
What is a Holiday?
It is a reference to a day set apart for worship,
reverence to the memory of a great leader, to
rejoice over some national or historical event, or
rekindle the flames of an ideal. It means a
consecrated day, religious festival or day on which
ordinary occupations are suspended, a day of
exception, that is, a cessation from work, or day of
festivity, recreation and amusement. (SOJ Opinion
No. 100, Series of 1954)
What is a special non-working day?
Presently, 3 such holidays exist (Ninoy Aquino Day,
All Saints Day and Last Day of the Year). In these
instances, if a daily-paid employee does not work,
he gets no pay; if he works he gets his daily basic
rate + 30%.
What are regular holidays?
A daily-paid or mothly-paid employee, even if he
does not work on a regular holiday, gets 100% of
his usual pay; if he does work on that day he gets
200%.
What are special working days?
An employee is entitled only to his daily wage rate.
No premium is required since worked performed is
an ordinary workday, but there are no classes in
schools.
HOLIDAYS, SERVICE INCENTIVE LEAVES AND
SERVICE CHARGES
RIGHT TO HOLIDAY PAY
1. Every worker is entitled to regular daily
wage during regular holidays, except in
retail/service establishments with less than
10 workers;
2. The employer may require an employee to
work but such employee shall be paid twice
his regular rate. (Art. 94)
Note: the listing of 10 holidays in paragraph (c) is
already obsolete.
How much is an employee entitled where the
holiday falls on the scheduled rest day of the
employee?
260%. (Holiday rate of 200% + Additional 30%)
What is the purpose of a holiday pay?
To prevent dimunition of the monthly income of
the workers on account of work interruptions
declared by the State. (JRC vs. NLRC and NATOW)
What are the Twelve Regular Holidays?
1. New year;
2. Maundy Thursday;
3. Good Friday;
4. Araw ng Kagitingan;
5. Labor Day;
6. Independence Day;
7. National Heroes’ Day;
8. Eidl Fitr;
9. Aidl Adha;
10. Bonifacio Day;
11. Christmas Day; and
12. Rizal Day (EO 292)
Who are entitled to Holiday Pay?
ALL employees, except:
1. Government employees;
2. Retail and service establishments of less
than 10 workers;
3. House helpers and persons;
4. Managerial employees, PROVIDED:
4.1. Their primary duty is to manage the
establishment;
4.2. They customarily direct the work of
2 or more employees; and
4.3. They have authority to hire or fire
employees of lower rank.
5. Managerial staff, if they perform:
5.1. Work directly related to
management policies;
5.2. Customarily exercise discretion and
independent judgment;
5.3. Regularly assist a managerial
employee in the management of the
establishment or executed work
requiring special training and special
assignments; and
5.4. Does not devote more than 20% of
their hours worked in a workweek to
activities which are not directly related
to the work described in the preceding
paragraphs; and
6. Field personnel whose time and
performance is unsupervised by the
employer.
Formulas to compute wages on Holidays
1) For regular holidays as provided for under EO
203 (incorporated in EO 292) as amended by R.A.
No. 9177. [See list of twelve legal holidays, above.]
a) If it is an employee’s regular workday
If unworked — 100%
If worked:
1st 8 hrs. — 200%
Excess of 8 hours — plus 30% of hourly rate
on said day
b) If it is an employee’s rest day
If unworked — 100%
If worked:
1st 8 hrs. — plus 30% of 200%
Excess of 8 hrs — plus 30% of hourly
rate on said day
2) For declared special days such as Special Non-
Working Day, Special Public Holiday, Special
National Holiday, in addition to the three
nationwide special [nonworking] days (listed in the
comments to Article 93), the following rules shall
apply:
a) If unworked —
No pay, unless there is a favorable company
policy, practice or collective bargaining agreement
(CBA) granting payment of wages, on special days
even if unworked.
b) If worked —
1st 8 hrs. — plus 30% of the daily rate of
100%
Excess of 8 hrs. — plus 30% of hourly rate
on said day
c) Falling on the employee’s rest day and if worked
— 1st 8 hrs. — plus 50% of the daily rate of 100%
Excess of 8 hrs. — plus 30% of hourly rate
on said day
3) For those declared as special working holidays,
the following rules shall apply:
For work performed, an employee is
entitled only to his basic rate. No premium pay is
required since work performed on said days is
considered work on ordinary working days.”
Is Emergency Cost-of-Living (ECOLA) allowance
part of the holiday pay?
Yes. All private sector workers and employees in
the NCR receiving daily wage rates of 250-290 shall
receive an ECOLA in the amount of 30 pesos per
day (Wage Order No. NCR-09).
Note: if the applicable wage order does not require
ECOLA as part of the minimum wage, or if the
employee’s wage is equal or higher, any ECOLA
that exceeds and is not part of such rate need not
be paid as part of a holiday pay.
What if the Holiday falls on a Sunday?
When a legal holiday falls on a Sunday, the
following Monday shall not be a holiday, unless a
proclamation is issued declaring it a special public
holiday. (LOI No. 1087, Nov. 1980)
What if there are 2 Holidays on the same day?
If unworked – At least 200% of their basic wage;
and
If worked – At least 390% of his basic wage.
(Explanatory Bulletin on Workers’ Entitlement to
Holiday Pay, April 9, 1993)
Note: The bulletin does not cover cases where
there are existing agreements or employer policy
or practice providing for more liberal benefits than
those that would result with the application of said
issuance. (Explanatory Bulletin on Workers’
Entitlement to Holiday Pay, April 9, 1993)
What is the double holiday rule for monthly-paid
employees?
If unworked – no additional payment (EO 203)
If worked – An additional 100% of the regular
salary shall be paid to employees, without
prejudice to any agreement, company policy or
practice which grants better benefits to employees
on said days.
RIGHT TO SERVICE INCENTIVE LEAVE
Every employee who has rendered at least 1 year
of service is entitled to 5 days of SIL (Art. 95)
Except:
1. those enjoying VL with pay of at least 5
days;
2. those employed in establishments
employing less than 10 employees; or
3. in establishments exempted by the SOL.
(Art. 95)
Note: the grant of benefit in excess of that
provided shall not be a subject of arbitration or any
administrative action.
What is the meaning of One year of service?
It means service within 12 months, reckoned from
the date the employee started working.
Are part-time workers entitled to SIL?
Yes. Part-time workers are entitled to the full Note: Tips are handled similarly as service charges.
benefit of 5 days SIL with pay. (Bureau of Working (DOLE Handbook on Worker’s Statutory Monetary
Conditions, Advisory Opinion) Benefits)

Rationale: Art. 95 speaks of number of months in a

year for entitlement to said benefit.

May an SIL be commuted?

Yes. The SIL shall be commutable to its money

equivalent if not used or exhausted at the end of
the year. (Labor Code IRR)

What is the basis of computation of SIL

commutation?

The basis of conversion shall be the salary rate at

the date of commutation. The use and
commutation of the SIL may be on a pro-rata basis.
(DOLE Handbook on Workers’ Statutory Monetary
Benefits)

Note: SIL of kasambahay are not commutable. (RA

10361)

What is the rationale for accumulation and

conversion of leaves?

The Court noted that cash equivalent is aimed

primarily at encouraging workers to work
continuously and with dedication for the company.
(PNB-Republic Bank vs. NLRC)

Note: While SIL is mandatory, VL/SL benefits are

voluntary, hence must be proved.

What is the rate of distribution of service charges?

All service charges collected by hotels, restaurants

and similar establishments shall be distributed at
the rate of 85% for employees and 15% for
management equally. (Art. 96)

Note: In case the service charge is abolished, the

share of the employees shall be considered
integrated in their wages. (Art. 96)