 Prepared by: Denni G.

Borres

LABOR LEGISLATION: LABOR STANDARDS

Recapitulated Notes

The Labor Code of the Philippines stands as the law governing employment practices and labor relations in the
Philippines.

LABOR LEGISLATION

Labor Standards Labor Relations

sets out the minimum

terms, conditions & defines the status,
benefits of rights & duties and
employment that the institutional
material or employers must mechanisms, that mechanism that
substance provide or comply govern the individual processes
to be processed with to which & collective the substance
employees are interactions of
entitled as a matter of EMPLOYERS,
legal right. EMPLOYEES, or
their representatives.

Labor Standards focuses on the minimum requirements prescribed by existing laws, rules
and regulations relating to wages, hours of work, cost-of-living allowance and other
monetary & welfare benefits, including occupational safety & health standards.

DEFINITION OF TERMS

 Labor  → physical toil although it does not necessarily exclude the application of skill (thus “skilled” &
“unskilled” labor)

 Skill  → the familiar knowledge of any art/science, united w/ readiness & dexterity in
execution/performance or in the application of the art/science to practical purposes

 Work  → (broader than labor) covers all forms of physical/mental exertion, or both combined, for the
attainment of some obj other than recreation/amusement per se

 Worker  → (broader than employee) – may refer to self-employed people & those working in the
service & under the control of another, regardless of rank, title, or nature of work.
→ any member of the labor force whether employed/unemployed

 Employe  → a salaried person working for another who controls or supervises the means, manner or
e method of doing the work.

 Employer  → any person, natural or juridical, domestic or foreign, who carries on in the PH any trade,
business, industry, undertaking or activity of any kind and uses the services of another
person who is under his order as regards employment

LABOR LAW AS SOCIAL LEGISLATION

Social legislation includes laws that provide certain kinds of protection and benefits to society in furtherance of
social justice. Labor laws are necessarily social legislation.

SOCIAL JUSTICE AS THE AIM

the humanization of laws & the equalization of social & economic forces by the State so that social justice in its
rational & objectively secular conception may at least be approximated.
  Prepared by: Denni G. Borres

→ it is the promotion of the welfare of the people, the adoption by the government of measures calculated to insure
economic stability of all the component elements of society through the maintenance of proper economic & social
equilibrium in the interrelations of the members of the community, constitutionally, through the adoption of
measures legally justifiable, or extra-constitutionally, through the exercise of powers underlying the existence of all
govts.

1987 CONSTITUTION AS LEGAL BASIS

- The state affirms labor as a primary social economic force. It shall protect the rights of the workers and promote their
welfare. (Section 18, Article II)

- The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all.

It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful
concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure,
humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes
affecting their rights and benefits as may be provided by law.

The State shall promote the principle of shared responsibility between workers and employers and the preferential use
of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to
foster industrial peace.

The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in
the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth.
(Section 3, Article XIII)

BASIC RIGHTS OF WORKERS GUARANTEED BY THE CONSTITUTION

1. to organize themselves
2. to conduct collective bargaining/negotiation with
the management
3. to engage in peaceful concerted activities,
including to strike in accordance w/ law; and
4. to participate in policy & decision-making
processes affecting rights & benefits

CONSTITUTIONAL PROVISIONS THAT PROTECT THE RIGHTS OF WORKERS

 Right to form unions, associations or societies for purposes not contrary to law
 Right of self-organization even for government employees. No officer/ employee of the Civil Service
shall be removed/suspended except for causes provided by law. Temporary employees of the govt
shall be given such protection as may be provided by law
 Regular farmworkers shall have the right to own directly/collectively the lands they till. Landless
farmworkers may be resettled by the govt in its own agri estates.
 Continuing program of urban land reform & housing
 Protection for working women taking into acct their maternal functions, etc
 Labor sector is entitled to seats to party list
 Goal: more equitable distribution of opportunities, income & wealth.
 Agency to promote the viability & growth of cooperatives as instruments for social justice & economic
development
 Govt shall increase the salary scales of other officials & employees
 Career civil service EMPLOYEES shall be entitled to separation pay & retirement benefits or may be
considered for reemployment in the govt.

*The Constitution is pro-labor but recognizes the indispensable role of the private sector, encourages private enterprise and
provides incentives to needed investments.
  Prepared by: Denni G. Borres

BLAS OPLE – the father of Labor Code; served as Secretary of Labor and Employment under Marcos Sr's administration for 19
years.

LABOR CODE is designed to be a dynamic & growing body of laws which will reflect continually the lessons of practical application
& experience

RECRUITMENT AND PLACEMENT OF WORKERS [ART. 13 OF THE LC]

 Recruitment & placement any act of canvassing, enlisting, contracting,

transporting, utilizing, hiring, or procuring workers
and includes referrals, contract services, promising
or advertising for EMPLOYMENT, locally or abroad,
whether for profit or not: provided, that any person or
entity which, in any manner, offers or promises for a
fee EMPLOYMENT to 2 or more persons shall be
deemed engaged in recruitment & placement

 Private fee-charging Employment any person/ entity engaged in the recruitment &
Agency placement of workers for a fee w/c is charged
directly/indirectly from the workers or employers or
both

 License a document issued by the DOLE authorizing a

person/entity to operate a private EMPLOYMENT
agency

 Private recruitment entity any person/association engaged in the recruitment &

placement of workers, locally/overseas without
charging, directly/indirectly any fee from the workers
or employers.

 Authority a document issued by the DOLE authorizing a

person/association to engage in recruitment &
placement activities as a private recruitment entity

 Seaman any person employed in a vessel engaged in

maritime navigation

 Overseas Employment EMPLOYMENT of a worker outside the PH

 Emigrant any person, worker or otherwise, who emigrates to a

foreign country by virtue of an immigrant visa or
resident permit to its equivalent in the country of
destination

BUREAU OF EMPLOYMENT SERVICES (now Bureau of Local Employment) [ART. 15 OF THE LC]
- primarily responsible for developing & monitoring a comprehensive EMPLOYMENT program.

7 PRINCIPLES UNDERLYING THE LABOR CODE

1. Labor relations must be made both responsive & responsible to national development
2. Labor laws/labor relations during a period of national emergency must substitute rationality for confrontation; strikes or
lockouts give way to a rational process which is arbitration
3. Laggard justice in the labor field is injurious to the workers, the EMPLOYERS & the public; labor justice can be made
expeditious w/o sacrificing due process.
4. Manpower development & EMPLOYMENT must be regarded as a major dimension of labor policy, for there can be no
real equality of bargaining power under conditions of severe mass unemployment.
5. There is a global labor market available to qualified Filipinos, esp. those who are unemployed or whose EMPLOYMENT is
tantamount to unemployment because of their very little earnings.
  Prepared by: Denni G. Borres

6. Labor laws must command adequate resources & acquire a capable machinery for effective & sustained implementation;
when labor laws cannot be enforced, both EMPLOYERS & the workers are penalized, & only a corrupt few (those who are
in charge of implementation) may get the reward they don’t deserve.
7. There should be popular participation in national policy-making through what is now called tripartism.

FOUR-FOLD TEST:

1. SELECTION AND 2. PAYMENT OF 3. THE POWER OF 4. CONTROL TEST

ENGAGEMENT OF WAGES DISMISSAL *the power to control the conduct
EMPLOYEE of the employee

refers to the "choice" of the employer to
hire the services of a worker and his
commitment to keep the latter as his
employee.
refers to the compensation that an
employee gets for work performed
"Dismissal" is a component of the
employer's power to move or organize
employees. It is a management
prerogative whom to hire and/or fire.
"Dismissal" is an act of labor force
movement done by the employer that
results in the termination of
employment relationship.
*refers to the employer's power to
regulate how the work is done. This is
the most important aspect of the four-
fold test.
*absent the power to control the
employee with respect to the means
and methods of accomplishing his
work, there is no employer-employee
relationship between the parties.

It is important to determine whether an employment relationship exists because this has an effect on the applicability of
the Labor Code. Generally, if there is employer-employee relationship, the Labor Code applies. Hence, labor courts have
jurisdiction. Also generally, if there is no employment relationship, the Labor Code does not apply and labor courts have
no jurisdiction.

*REMINDERS:

 A worker dismissed from employment is still an employee under the law until and unless his dismissal is declared valid and final
by proper authority.

 The fact that one had been designated "branch manager" does not make such person an employee. Employment is determined
by the right-of-control test and certain economic parameters. Titles are weak indicators.

 Titles are weak indicators. Hence, even if an employee is called a "non-employee" by the employer, if the juridical tie does exist,
the latter cannot deny employment relationship.

 Employment relations are a question of law. Contracts cannot stipulate that there is or there is no employer-employee
relationship if the opposite is true.

1. Mode of compensation is not an indicator of employment relationship.

2. Neither is the nature of the work performed, whether core or non-core.
3. Although certain matters can be considered as hallmarks of employer-
employee relationship, such as registration with the SSS and PhilHealth as
employee, these are not absolute indicators.
4. The Supreme Court has recognized that the question as to whether such a
relationship exists has always bedeviled the courts. Nevertheless, it is not
advisable to put an airtight definition on what constitutes employer-
employee relationship because this would allow employers to escape from
their legal obligations and would result in a violation of the constitutional
policy on protection to labor.
5. In one case (NLU v. Dinglasan), the Supreme Court ruled that there is
employer-employee relationship despite the vague application of the four-
fold test, not only to protect the employee but also to protect public policy.

CONDITIONS OF EMPLOYMENT (WORKING CONDITIONS AND REST PERIODS)

  Prepared by: Denni G. Borres

COVERAGE [ART. 82]

a) ALL employees in all establishments & undertakings whether for profit or not
b) Such standards apply only if there exists an EMPLOYER-EMPLOYEE relationship

EXCEPTIONS ON CONDITIONS OF EMPLOYMENT

i. Government Employees ii. Managerial Employees

- employees of government agencies and - those whose primary duty consists of the mgt of
government corporations the establishment in which they are employed or
of a dept/subd thereof, and to other
officers/members of the managerial staff

- under the direct supervision of the employer and

assist in the planning, organizing, staffing,
directing controlling, communicating and in making
decisions in attaining the company’s set goals &
objectives

Employer and Employee Relationship is not dependent upon the agreement of the parties. The characterization by law prevails
over that in the contract. The existence of an employer-employee relationship is not a matter of stipulation but a question of law.

Conditions of Employment
laid down by law or by contract concluded individually with an employee or collectively with a group
→ may also arise from established practice in the enterprise

TWO KINDS OF EMPLOYMENT

CONDITIONS

Statutory Voluntary

provided for by
initiated by the
law
employer
unilaterally or
by contractual
stipulation

An employer is free to regulate, according to his own

discretion & judgment, all aspects of employment, including
hiring, work assignments, working methods, time, place
and manner of work, tools to be used, processes to be
followed, supervision of workers, working regulations,
transfer of employees, work supervision, lay-off of workers
and discipline, dismissal and recall of workers.
  Prepared by: Denni G. Borres

NORMAL HOURS OF WORK [ART. 83]

- shall not exceed 8 hours a day

 Why does the LC impose an 8-hour a day work limit? To safeguard the health & welfare of the laborer/employee,
and to minimize unemployment by forcing employers, in cases where more than 8-hr operation is necessary, to utilize
different shifts to laborers/employees working only for 8 hrs each.
 Part-time work is not prohibited. What the law prohibits is work exceeding 8 hours.
 General Rule: Wage & benefits of a part-timer are in proportion to the number of hours worked.

WORK HOURS OF HEALTH PERSONNEL

 shall include, but not limited to, resident physicians, nurses, nutritionists, dieticians,
pharmacists, social workers, lab technicians, paramedics, psychologists, midwives,
attendants, and all other hospital & clinic personnel like medical secretaries.
Resident physicians: customary practice to work for 24 hrs a day violates the limitations in
Art 83, except when they are under training program/agreement between the residents and
the hospital accredited by the government
Hospital Employees - entitled to a full weekly salary w/ paid 2 days off if they have completed
the 40hr/5day workweek (7days pay for 5 days work).
Health personnel in government service are covered by RA 7305.

HOURS WORKED [ART. 84] shall include:

1. all time during which an employee is required to be on duty or to be at a prescribed workplace, and
2. all time during which an employee is suffered or permitted to work

*Rest periods of short duration during work hours shall be counted as hours worked.

PRINCIPLES IN DETERMINING HOURS WORKED

1. All hours worked which the employee is required to give to his employer,
regardless of whether or not such hours are spent in productive labor or involve
physical/mental exertion;

2. An employee need not leave the premises of the workplace in order that his rest
period shall not be counted, it being enough that he stops working, may rest
completely and may leave his workplace, to go elsewhere, whether w/in or
outside the premises of his workplace;

3. If the work performed was necessary, or it benefited the employer, or the

employee could not abandon his work at the end of his normal working hrs
because he had no replacement, all time spent for such work shall be considered
  Prepared by: Denni G. Borres

as hrs worked, if the work was w/in the knowledge of his employer/immediate
supervisor;

4. The time during which an employee is inactive by reason of interruptions in his

work beyond his control shall be considered time either if the imminence of the
resumption of work requires the employee’s presence at the place of work or if
the interval is too brief to be utilized effectively & gainfully in the employee’s own
interest.

PRE/POSTLIMINARY ACTIVITIES

Preliminary (before work) and

postliminary (after actual work)
activities are deemed performed during
working hours, where such activities are
controlled/required by the ER and are
pursued necessarily & primarily for the
benefit of the employer.

WAITING TIME
 whether waiting time constitutes working time depends on the circumstances on each particular case;
 controlling factor is whether or not time spent in idleness is so spent predominantly for the employer’s benefit or for
the employees:
1. Engaged to Wait – waiting time spent by EE shall be considered as working time if waiting is considered
an integral part of his work or if the EE is required/engaged by an ER to wait
2. Waiting to Engage – idle time is not work time.

WORKING WHILE EATING

General Rule: Employee must be completely relieved from duty for the purpose of eating regular meals. The meal time is
not compensable if he is completely free from duties during his meal period even though he remains in the workplace.
Exception: Employee is not relieved if he is required to perform his duties whether active/inactive, while eating (ex.
Stand-by for emergency work/ an office employee who is required to eat at his desk/ a factory/worker who is required to
be at his machines is working while eating)

WORKING WHILE SLEEPING

General Rule: Sleeping time may be considered working time if it is subject to serious interruption or takes place under
conditions substantially less desirable than would be likely to exist at the employee’s home.
Exception: if there is an opportunity for comparatively uninterrupted sleep under fairly desirable conditions, even though
employee is required to remain on or near the employer’s premises and must hold himself in readiness for a call to action.
  Prepared by: Denni G. Borres

*Sleeping time allowed to an employee will depend upon the express or implied agreement of the parties. In the absence
of an agreement, it will depend upon the nature of the service and its relation to the working time.

ON CALL
 Although employee can rest completely and may not be actually at work, if they are required to be in their place of
work before/after the regular working hours and w/in the call of their ERs, the time they stay in the place of work
should not be discounted from their working hours
 Employee cannot use the time effectively for his own purposes is working while on call.
 NOT ON CALL: Employee is not required to remain on the employer’s premises but is merely required to leave work
at his home or w/ company officials where he may be reached
 Public Health Workers’ on-call status refers to a condition when public health workers are called upon to respond
to urgent or immediate need for health/medical assistance or relief work during emergencies such that he/she cannot
devote the time for his/her own use. [Sec. 15, RA 7305]
 With cellphone or any contact device: if an employee is kept “within reach” through a cell phone, he is NOT on call.

TRAVEL TIME

time spent walking, riding, or traveling to or from the place of work

a) Travel from home to work is not worktime except when employee receives an emergency call outside his regular
working hours and is required to travel to his regular place of business or some other worksiteworking time
b) Travel that is all in a day’s work – time spent by an employee in travel as part of his principal activityhours
worked
c) Travel away from home – travel that keeps an employee away from home overnight worktime when it cuts
across the employee’s workday

LECTURES, MEETINGS & TRAINING PROGRAMS

Attendance at lectures, meetings, training programs, and similar activities need not be counted as working time if the
following three criteria are met:
1. Attendance is outside of the employee’s regular working hours;
2. Attendance is in fact voluntary; and
3. The employee does not perform any productive work during such attendance.

GRIEVANCE MEETING
Time spent in adjusting grievance between employer and employees during the time the employees are required by the
employer to be on the premises is considered hours worked. But in the event a bona fide union is involved, the counting of
such time will, as a matter of enforcement policy, be left to the process of collective bargaining or to the custom or practice
under the collective bargaining agreement.

SEMESTRAL BREAK
 Regular full-time monthly paid teachers in private schools are entitled to salary and emergency cost-of-living
allowance during semestral breaks.
  Prepared by: Denni G. Borres

HOURS WORKED: EVIDENCE AND DOUBTS

General Rule: When an employer alleges that his employee works less than the normal hours of employment as provided for in law,
he bears the burden of proving his allegation with clear & satisfactory evidence.

MEAL PERIODS [ART. 85]

 must be at least 60 minutes time-off for regular meals

General Rule: Meal period is not compensable.

Exceptions:

1. where the lunch period or mealtime is predominantly spent for the employer’s benefit (considered overtime) ;or

2. where it is less than 60 minutes (but not less than 20 minutes) must be with full pay when:

a. where work is non-manual (does not involve strenuous physical exertion);

b. where the establishment regularly operates not less than 16hrs a day
c. in cases of actual or impending emergencies or there is urgent work to be performed on
machineries, equipment or installations to avoid serious loss w/c the ER would otherwise suffer;
d. where the work is necessary to prevent serious loss of perishable goods

If less than 20 minutes, it becomes only a rest period and is thus considered work time.
Note: Meal periods during overtime work is not given to workers performing OT because OT is usually for a short
period.

*Employees may request for their mealtime to be shortened so they can leave work earlier  not compensable.

Requisites:
a. Employees voluntarily agree in writing and waive their OT pay;
b. No diminution in the salary and other fringe benefits of the employees already existing;
c. Work is not physically strenuous, and they are provided with adequate coffee breaks in the morning &
afternoon;
d. Value of benefits is equal to the compensation due them;
e. OT pay will become due and demandable if they are permitted/made to work beyond 4:30 pm; and
f. The arrangement is of temporary duration.

Note: The 8-hour work period does not include the meal break. Employees may leave the company premises as long as
they return to their posts on time.

NIGHT SHIFT DIFFERENTIAL [ART. 86]

- Employee must be paid at least 10% of his regular wage for each hour of work performed between 10PM and 6AM;

- given as premium for working at a time for sleep & rest;

- in addition to the exceptions in Art 82, night shift differential is not applicable to employees of retail and service
establishments regularly employing 5 employees and below;

- if work done from 10pm-6am is OT work, then the 10% night shift differential should be based on the OT rate.

- not waivable (founded on public policy)

- the receipt of OT pay will not preclude payment of night shift differential;

- burden of proof of payment of night shift differential rests on the employer.

OVERTIME WORK [ART. 87]

Overtime Pay – additional compensation for work performed beyond 8 hours within the worker’s 24-hr workday regardless whether
the work covers 2 calendar days
  Prepared by: Denni G. Borres

Basis –> cash wage only without any deduction.

1. OT on a regular work day at least 25% thereof

2. OT on a holiday or rest day at least 30% thereof
* CBA may stipulate higher OT pay rate.

Paid unworked days of a monthly-paid employee

Employer may stipulate that employee’s monthly salary constitutes payment for all the days of the month incl rest days &
holidays if when converted into its daily equivalent would still meet minimum wage  legal

How “work day” is counted

A day  the 24-hr period which commences from the time the employee regularly starts to work.

a. Broken Hours of Work – the minimum normal working hours need not be continuous to constitute as the legal
working day of 8 hours as long as the 8 hours is within a work day;

b. Work in Different Shifts in a Work day – work in excess of 8hrs within a work day is considered as OT
regardless of whether this is performed in a work shift other than at which the employee regularly works

 Ex. Employee’s shift is 10pm-6am. He is asked to take a shift of another employee who is absent from 2pm-10pm
(his regular work day would be from 10pm-10pm)  the 2nd shift is considered OT because it is still within his work
day.

General Rule: An express instruction from the employer to the employee to render OT work is not required for the
employee to be entitled to OT pay. It is sufficient that the employee is permitted or suffered to work. Neither is an
express approval by a supervisor needed.

Exception: On rest days & holidays, written authority after office hours is required for the employee to be entitled to
compensation.

o A verbal instruction to render OT work prevails over a memorandum prohibiting such work.
o OT claim is not justified for days where no work was required and no work could be done (i.e.
brownout, machine repair, lack of rawmats)

Action to Recover Compensation:

 estoppel & laches cannot be invoked against employees because that would be contrary to the spirit of the 8-hr
Labor Law, under w/c the laborers cannot waive their right to extra compensation;
 OT pay in arrears retroacts to the date when services were actually rendered

General Rule: Waiver or quitclaim – Any stipulation in the contract that the laborer shall work beyond the regular 8 hrs
without additional compensation for the extra hours is contrary to law and, therefore, null and void.

WAIVER OF OVERTIME PAY:

General Rule: OT pay cannot be waived expressly or impliedly.

Exceptions:

1. When the waiver is made in consideration of benefits & privileges which may be more than what will accrue to them
in OT pay; and

2. Compressed Work Week (CWW)– the number of workdays is reduced but the number of work hours in a day is
increased to more than 8, but no OT pay may be claimed.

Requisites of a Valid Compressed Workweek:

a. The scheme is expressly and voluntarily supported by majority of the employees affected;
  Prepared by: Denni G. Borres

b. In firms using substances, or operating in conditions that are hazardous to health, a certification is needed from
an accredited safety org or the firm’s safety committee that work beyond 8hrs is w/in the limits/levels of exposure
set by DOLE’s occupational safety & health standards;

c. The DOLE Regional Office is notified.

Note: Employees may validly waive the right to overtime under a CWW program, provided he did so voluntarily, with full
understanding of what he was doing and in consideration for the quit claim is credible & reasonable.
Note: Employees promoted from rank-and-file to supervisory lose their OT pay and other benefits under Art 82-96.

OVERTIME PAY COMPUTATIONS

Regular Workdays Reg Basic Wage + 25% thereof

Legal or Regular Holidays Holiday Wage Rate (200%) + 30% thereof
Rest Days or Special Holidays Rest day/Special Holiday wage rate (130%) + 30% thereof
Scheduled Rest Day w/c is also a Special Holiday Rest day & special holiday wage rate (150%) + 30% thereof
Scheduled rest day w/c is also a legal or regular holiday Rest day & legal holiday wage rate (260%) + 30% thereof
Double Holiday Double holiday wage rate (400%) + 30% thereof

 Employee will receive 200% of his regular daily wage when both regular holidays fall on the same day and he
does not work (Law provides that he shall get his regular daily wage of each regular holiday)
 100% of Araw ng Kagitingan, 100% Good Friday. If he works on that day, he gets 400%.

FLEXIBLE WORK ARRANGEMENTS:

 Alternative work arrangements or schedules other than the traditional or standard work hours, workdays or
workweek. Employers may adopt them after due consultation w/ employees, taking into acct the adverse
consequence of the situation on the performance and financial condition of the company.

 Its effectivity and implementation shall be temporary.

 Should be threshed out by the employer and the employee.

 DOLE Regional Office must be notified prior to implementation.

 In addition to CWW, FWAs include:

1. Reduction of workdays – where normal workdays per week are reduced but should not last for more than 6
months;
2. Rotation of workers – where the employees are rotated/alternately provided work w/in the workweek;
3. Forced leave – employees are required to go on leave for several days or weeks, utilizing their leave credits if
there are any;
4. Broken-time schedule – the work schedule is not continuous but the number of hours w/in the day or week is
not reduced;
5. Flexi-holiday schedule – employees agree to avail themselves of the holidays at some other days, provided
that there is no diminution of existing benefits as a result of such arrangement.

UNDERTIME NOT OFFSET BY OVERTIME [ART. 88]

 Whether on the same day or any other day is prohibited by law.

 Permission given to the employee to go on leave on some other day of the week shall not exempt employer from paying
the additional compensation

o Reason: Employees hourly rate is not equivalent to OT rate.

o Proper method: Deduct the UT from the accrued leave, if any.

EMERGENCY OVERTIME WORK [ART. 89]

General Rule: Employees cannot render OT against their will.

Exceptions:

1. In times of war or any national or local emergency declared by Congress/Chief Executive;

  Prepared by: Denni G. Borres

2. To prevent loss or damage to life or property due to emergencies and force majeure;

3. When there is urgent work needed on machines & equipment;

4. When work is necessary to preserve perishable goods;

5. To prevent serious obstruction or prejudice to the business or operations of the ER; and

6. When it is necessary to avail of favorable weather or environmental conditions where performance or quality f work is
dependent thereon.

RIGHT TO WEEKLY REST DAY [ART. 91]

 Duration: at least 24 consecutive hours after every 6 consecutive normal work days
- all establishments & enterprises may operate or open for business on Sundays & holidays provided that the
employees are given the weekly rest day & the benefits provided under the law.

Who determines the rest day schedule?

The employer determines and schedules the weekly rest period subject to the ff:
a. CBA;
b. Rules & regulations issued by the Secretary of Labor; and
c. Employee’s preference based on religious grounds. (When such preference will prejudice the business of the
employer and no other remedial measures are available, the weekly rest day may be scheduled to meet the
employee’s choice for at least 2 days a month.

WHEN THE EMPLOYER MAY REQUIRE WORK ON A REST DAY [ART. 92]

General Rule: Employers may not require their employees to work on their rest days.

Exceptions:
1. In cases of urgent work to be performed on the machinery, equipment or installation;

2. To prevent loss or damage to perishable goods;

3. In case of actual/impending emergencies caused by force majeure to prevent loss of life and property, or imminent danger
to public safety;

4. Where the nature of work requires continuous operations and the stoppage of work may result in irreparable injury/loss to
the employer;

5. In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be
expected to resort to other measures; and

6. Under the circumstances analogous to the foregoing as determined by the Secretary of Labor.

When an employee volunteers

The failure to work during an
to work on his rest day under
employee’s rest day does not
other circumstances, he may
justify disciplinary sanction of
be allowed to do so, provided
outright dismissal, more so
he expresses such desire in
when justifiable grounds exist
writing and he is paid the
for the said failure.
additional compensation for
working on his rest day

COMPENSATION FOR REST DAY, SUNDAY OR HOLIDAY WORK [ART. 93]

  Prepared by: Denni G. Borres

 Premium Pay or Differential Compensation – additional compensation for work rendered by the employee on days when
normally he should not be working such as special holidays and weekly rest days.
Note: This article does not prohibit a CBA stipulation for higher benefits.

FORMULAS ON HOW TO COMPUTE WAGES DURING HOLIDAYS

1. For Regular Holidays:
a) During an employee’s regular work day:
 If unworked → 100%
 If worked → 200% for the first 8 hrs – if it exceeds 8 hrs, plus 30% of hourly rate for
the said day

b) During an employee’s rest day:

 If unworked → 100%
 If worked → plus 30% of 200% for the first 8 hrs

2. For declared SPECIAL DAYS such as Special Non-Working Days, Special Public Holidays, Special
National Holiday and nationwide special days:
 If unworked - no pay, unless there is a favorable company policy, practice or CBA
granting payment of wages on special days even if unworked;
 If worked → plus 30% of the daily rate of 100% for the first 8 hrs – if it exceeds 8 hrs,
plus 30% of hourly rate for the said day
 If it falls on the rest day, and the employee worked:
o 1st 8hrs – plus 50% of the daily rate of 100%
o excess of 8hrs – plus 30% of hourly rate on said day

3. For those declared as Special Working Holiday:

 for work performed, an employee is entitled only to his basic rate.