Southwestern University - PHINMA

Sambag I, Cebu City

Quiz IV

Name: LINGANAY, NOEL JUN LAPINIG Date: Nivember 3, 2021

Subject: Labor Standards Professor: Commissioner Julie C. Rendoque

1. Mr. “A” is the chief of a section in a large export-oriented company, supervising

the work of 50 employees. Under the company’s policy, a section chief can hire but
cannot dismiss, suspend or otherwise discipline employees without the approval of
the general manager. He works beyond eight hours every workday. There are 60
other section chiefs in the company. May Mr. A and other section chiefs claim
overtime pay?

Ans: No. Mr. “A” and the other section chiefs cannot claim for overtime pay since
they are managerial employees vested with the powers to lay down and execute
management policies. Under the Labor Code, a managerial employee is not covered
by the provisions on working conditions and rest periods which includes overtime
pay, managerial employees are not paid by hour, hence, they are not rank-and-file
employees. Therefore, they cannot claim for overtime pay.

2. (a) Under the Labor statute, what is the “normal hours of work” of an employee?

Ans: A normal hours of work shall not exceed eight (8) hours a day.

(b) Justify the payment of overtime pay for work rendered in excess of the normal
hours of work by employees exempt from the coverage of Title 1, Book III of the
Labor Code of the Philippines.

Ans: A fair day’s wage for a fair day’s labor. This doctrine must be the basis and the
essence of payment for every excess hour any employee has been suffered to work.
Equality among equals, equity, Social Justice. These are the principles that have been
institutionalized in the 1987 Philippine Constitution. The State must safeguard and
give the highest priority to human dignity and economic inequalities.

3. “X” is employed as a mechanic by the BD Taxicab Co. Working from 8am to 12

noon and from 1pm to 5pm. During lunchtime he is required to stand by for
emergency call. On many occasions he is called for some emergency work even while
he is taking his meals. Because he is working up to 8pm, he files a claim for overtime
pay. In computing his overtime he includes the one-hour allowed for lunchtime as
part of his working time. Is “X” correct? Reason out your answer.

Ans: X’s lunchbreak must be compensated since he is required to stand by for

emergency calls. It being an integral part of his work. X’s lunchbreak was spent

Linganay, Noel Labor Standards

primarily for the benefit of the employer and its business. Therefore, the time spent
for stand by must be compensated.

4. Julio works Monday to Friday for eight hours each workday in the company. He
rendered overtime work for five hours during the work period last week. In the
absence of any provision in the employment contract or collective bargaining
agreement as to overtime pay rate, how much is Julio entitled to receive as overtime
pay?

Ans: Julio is entitled of compensation for the five hours that he rendered as overtime
with an additional compensation equivalent to his regular wage plus 25% of his
regular wage. If overtime work was performed on a holiday or on a restday, then
additional compensation equivalent to his regular wage plus 30%.

5. A case against an employer company was filed charging it with having violated the
prohibition against offsetting under-time for overtime work on another day. The
complainants were able to show that, pursuant to the Collective bargaining
Agreement (CBA), employees of the union had been required to work “overtime” on
Saturday but were paid only at regular rates of pay on the thesis that they were not
required to complete, and they did not in fact complete the eight-hour period daily
form Monday through Friday. Given the circumstances, the employer contented that
the employees were not entitled to overtime compensation, ie., with premium rates
of pay. Decide the controversy.

Ans: It is true that when an employee incurs under-time hours during regular daily
work, said under-time should not be offset against the overtime hours. However,
employees are entitled to the overtime payment that they have suffered to work.
Permission given to the employee to go on leave on some other day of the week
shall not exempt the employer from paying the additional compensation required.

6. (a)Are covered employees who were on unapproved official leave of absence

entitled to regular holiday pay if they worked on such day? If “yes”, why? If “no”,
explain.

Ans: Yes. If such leave of absence has not been approved, the employees are still
required to work on that day, holiday or not. Under the Labor Code, an employee
who worked on a regular holiday shall be entitled to 100% of his regular pay.

(b) Under the preceding question, would your answer be the same if the covered
employee did not work on such day?

Ans: employees covered by holiday pay should receive at least 100% of their salary
even if they did not report for work, as long as they’re present on the workday or on
paid leave on the day immediately before the holiday.

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C. ) Under question (a), what If the covered employees are absent a day after the
regular holiday, how much are they entitled to receive?

Ans: The employee will not be entitled to any salary on the day that he is absent. No
work, no pay.

7. If a covered employee has worked for eight (8) hours today, November 2, 2021,
which is a working special holiday, how much is the said employee entitled to receive
if his daily wage is P500.00?

Ans: For work done during the special day, he/she shall be paid an additional 30% of
his basic wage on the first eight hours of work. P500.00 + 30% (150.00) = P650.00
will be entitled to him when he worked on a special working holiday.

8. What is the difference between Illegal dismissal and constructive dismissal?

Ans: Illegal dismissal is immediately shown by the act of the employer in wanting
the termination of an employee; while constructive dismissal, being a dismissal in
disguise, is not readily indicated by any similar act of the employer that would
openly and expressly show its desire and intent to terminate the employment
relationship but by making the workload of the employee unbearable that would
leave no other option but to resign.

9. What is the distinction between terminating an employee with just cause but
without due process from dismissal of an employee for authorized cause but without
due process?

Ans: Termination for just causes is when the employee has committed or is guilty of
serious misconduct, is guilty of some fraud against the employer, or has habitually
neglected his duties. Thus, the employee himself initiated the dismissal process. As a
rule, payment of separation pay is not required. While termination for authorized
causes does not imply delinquency or culpability of the employee. Instead, the
dismissal process is initiated by the employer’s exercise of management prerogative,
such as installation of labor saving device, cessation of business operations or
retrenchment. Separation pay is required.

10. Does management prerogative include exclusion of employees from formulating

policies governing the business operation of the company?

Ans: Yes. Management prerogative is the act or judgement of the employer on the
operation of his business; and the employees are limited only with the shared
responsibility from formulating certain policies that affect their rights, benefits and
welfare.

-o0o-

Linganay, Noel Labor Standards