Module 3 - Hours of Work, Rest Periods, Holiday Pay, Leaves and Service Charges

3/13/23, 12:30 PM MODULE 3 - HOURS OF WORK, REST PERIODS, HOLIDAY PAY, LEAVES AND SERVICE CHARGES
MODULE 3 - HOURS OF WORK, REST PERIODS, HOLIDAY PAY, LEAVES

AND SERVICE CHARGES
Site: New Era University Printed by: Frenzyn Mae S. Yoro

Course: PDT322-18: Personality Development 2 Date: Monday, 13 March 2023, 12:30 PM
MODULE 3 - HOURS OF WORK, REST PERIODS,
Book:
HOLIDAY PAY, LEAVES AND SERVICE CHARGES
https://collvle.neu.edu.ph/mod/book/tool/print/index.php?id=185601 1/19
Table of contents
1. Introduction/Overview
2. Learning Outcomes
3. Lesson 6: Hours of Work, Overtime
4. Lesson 7: Holiday Pay, Leaves and Service Charges
1. Introduction/Overview
This modules traverses on the principles of hours work, overtime, leaves and service charges. It enables the preservice teacher to identify and
analyze his/her rights in case he/she would be employed and the benefits that he/she may be gotten during the duration of employment.
2. Learning Outcomes
1. State the principle behind hours worked and overtime
2. Differentiate overtime pay and premium pay.
3. Identify employees who are not entitled to overtime pay.
3. Lesson 6: Hours of Work, Overtime
Normal Hours of Work
The normal hours of work of an employee shall not exceed eight (8) hours a day.
Health personnel in the cities and municipalities with a population of at least one million (1,000,000) or in hospitals and clinics with a bed
capacity of at least one hundred (100) shall hold regular office hours for eight (8) hours a day for five (5) days a week, or a total of forty (40)
hours a week, exclusive of time for meals, except where the exigencies of the service require that such personnel work for six (6) days or forty
eight (48) hours, in which case they shall be entitled to an additional compensation of at least thirty percent (30%) of their wage for work on
the sixth day. For purposes of this Article, “health personnel” shall include: resident physicians, nurses, nutritionists, dieticians, pharmacists,
social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital or clinic personnel.
(Article 83 of the Labor Code).
May the normal hours fixed in Article 83 be reduced by the employers? Explain.
The present article provides that the normal hours of work of an employee shall not exceed eight (8) hours a day. This implies that the
employer in the exercise of its management prerogatives, may schedule a work shift consisting of less than eight hours. And following the
principle of “a fair day’s wage for a fair’s day labor”, the employer is not obliged to pay an employee, working for less than eight hours a day, the
wages due for eight hours work. Nonetheless, if by voluntary practice or policy, the employer for a considerable period of time has been paying
his employees wages due for eight hours although the work shift is less than eight hours (for example, seven) it cannot later on increase the
working hours without an increase in the pay of the employees affected. An employer is not allowed to withdraw a benefit which he has
voluntarily given.
Illustration:
1. Y Corporation is engaged in the manufacture of candles. As a company policy, it requires its employee to render only six (6) hours of work
daily, but pays them the minimum wage corresponding to 8 hours work. Due to the demand for increased production, the full eight-hours-a-day
work was required without any increase in the wages. Believing that they are entitled to overtime pay for the extra-two-hour-work, the
employees filed with the Labor Arbiter for payment of overtime pay. Rule on the matter.
The employees are entitled to overtime pay for the extra two-hour work. Through voluntary practice or policy, the company has fixed the
normal workday at six (6) hours. It now constitutes a part of the terms and conditions of employment and cannot be unilaterally withdrawn by
the employer.
2. JM, a pharmacist employed by the Makati Medical Center, works for eight hours a day, six (6) days a week. Is she entitled to overtime
compensation? Why?
Yes. JM is covered by the term “health personnel” mentioned in Article 83 of the Labor Code and whose normal work hours, if they are
employed in cities or municipalities with a population of at least one million (1,000,000) or in hospitals and clinics with a bed capacity of at least
one hundred (100), shall be eight (8) hours a day for five (5) days a week, for a total of forty (40) hours a week. Since she works for forty-eight
(48) hours a week, she is entitled to overtime compensation (30% additional) corresponding to eight (8) hours.
Compensable Hours Worked
Hours worked. Hours worked shall include
(a) all time during which an employee is required to be on duty or to be at the employer’s premises, or to be at a prescribed workplace, and
(b) all time during which an employee is suffered or permitted to work.
Rest period of short duration during working hours shall be counted as hours worked (Article 84, Labor Code).
Compensable Hours of Work – General Principle
The following general principle shall govern in determining whether the time spent by an employee is considered hours worked:
(a) All hours are worked which the employee is required to give his employer, regardless of whether or such hours are spent in productive labor
or involve physical or mental exertion;
(b) 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;
(c) 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 hours because he had no replacement, all time spent for such work shall be considered as hours worked, if the work was with the
knowledge of his employer or immediate supervisor;
(d) The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be considered working 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 and gainfully in the employee’s own interest (Section 4, Rule I, Book III, Implementing Rules and Regulations).
Is waiting time spent by an employee considered as working time? Explain.
Section 5, Rule I, Book III of the Implementing Rules and Regulations provides:
Waiting Time. – (a) Waiting time spent by an employee shall be considered as working time if waiting time 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 employer’s premises or so close thereto that he cannot use the time effectively
and gainfully for his own purposes shall be considered as working while on call.
An employee who is not required to leave word at his home or with company officials where he may be reached is not working on call.
Illustration:
1. S, a company driver, is assigned to drive for the general manager. His work schedule is as follows: 8:30 am, he must be at the residence of
the general manager so he can bring the latter to the office; 9 am, he arrives with the manager at the company premises where he stays up to
12:00 noon doing nothing and sometimes sleeping inside the car; 12:00 noon to 1:00 pm, lunch break; 1:00 pm to 5:00 pm, he brings the
general manager to conferences; 5:00 pm, he goes home. The company however refuses to pay him for the period from 9:00 am to 12:00
noon, contending that he does not anything productive during such time. Is the contention of the company tenable? Explain.
The contention of the company is not tenable. Although S does not perform any driving from 9:00 am to 12:00 noon, he is not free to
make use of his time effectively and gainfully for his own purposes. He must remain in the premises as at anytime he may be called to drive for
the general manager.
2. Miss A, employed as an accountant in a manufacturing firm, has the following work schedule: 8:00 am to 12:00 noon, then 1:00 pm to 5:00
pm. At times, where there are no company papers to work on within her work schedule she devotes her time working on papers of other firms
for which she receives remuneration from the latter. Is her employer obliged to pay her salary corresponding to the period she spends working
on the papers of other companies? Why?
Yes. Although she is working on the papers of other companies, she has no absolute control over her time. Her employer may at any
time require her to do some work. She cannot furthermore leave the place of work during her work schedule.
What is overtime work and how is it compensated?
Overtime Work is work rendered by the employee beyond the normal hours as fixed by law or by employer voluntary practice or policy. An
employee who renders overtime work on regular days is entitled for such work to an additional compensation equivalent to his regular wage plus
at least twenty-five percent (25%) thereof. Overtime work on a holiday or rest day shall be paid an additional compensation hours on a holiday
or rest day plus thirty percent (30%) thereof (Article 87, Labor Code).
Overtime Pay vs. Premium Pay
Overtime pay is additional compensation for work done beyond the normal work hours on ordinary working days. Premium pay, on the
other hand, is additional compensation for work rendered by the employee on days normally h should not be working, such as special holidays
and weekly rest days. But additional compensation for work rendered by the employee in excess of eight (8) hours on such days is also
considered overtime pay.
Reasons for the Requirement of Overtime Pay
Legal requirement for the payment of additional compensation for work beyond the normal workday discourages the employer from
requiring such work and thus protect the health and well-being of the workers. The worker is not to be regarded as simply another element of
production; he needs rest, recreation and spare time to attend to family and religious needs. An overload worker cannot furthermore be efficient.
Overtime laws also tend to remedy unemployment by encouraging employers to employ other workers to do what cannot be
accomplished during the normal hours of work.
May an employee be compelled to render overtime work?
As a general rule, an employee cannot be compelled to render overtime work. He is entitled to rest or utilize his time for his own
purposes. However, under Article 89 of the Labor Code, he may be required by the employer to perform overtime work in any of the following
case:
(a) When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief
Executive;
(b) When it is necessary to prevent loss of life or properly or in case of imminent danger to the public safety due to an actual or impending
emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster for calamity;
(c) When there is urgent work to be performed on machines, installations, or equipment in order to avoid serious loss or damage to the
employer or some other cause of similar nature;
(d) When the work is necessary to prevent loss or damage to perishable goods; and
(e) Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to
the business operations of the employer.
Employees who are NOT entitled to Overtime Pay under the Labor Code (Art. 82, Labor Code)
They are the following:
(a) government employees
Under Article 276, the terms and conditions of the government employees’ employment are governed by the Civil Service Law, rules and
regulations.
(b) managerial employees
They are employed by reason of their special training, expertise of knowledge and for positions requiring the exercise of discretion and
independent judgment. The value of their work cannot be measured in terms of hours.
(c) non-agricultural field personnel
These employees regularly perform their duties away from the principal or branch office or place of business of the employer; they are
on their own in the field and the number of hours of actual work they render cannot be reasonably ascertained; it would therefore be grossly
unfair to require the employer to pay them benefits such as overtime compensation.
(d) members of the family of the employer who are dependent upon him for support
The amounts given by the employer by way of support may far exceed the benefits to which the employees are entitled under the laws
on overtime.
(e) domestic helpers and persons in the personal service of another
The terms and conditions of their employment are governed by the provisions of Chapter III, Title III of Book III of the Labor Code. They
minister to the personal needs and comfort of the employer and his family; they are not industrial employees.
(f) workers who are paid by results, such as those paid on piece rate or task basis.
Their compensation is computed on the basis of the work they accomplish and not on the time they spend in accomplishing the work.
Duty of the Employer in Connection with the Meal Periods of his Employees (Article 85, Labor Code)
It is the duty of every employer to give his employees regardless of sex, not less than sixty (60) minutes time off for their regular meals. These
meal periods are not however compensable hours of work. The regular meals are breakfast, lunch and supper. Coffee breaks or rest periods
running from five (5) to twenty (20) minutes are not included. They are considered as compensable working time.
May the employer shorten the meal period to less than one (1) hour? Explain.
Yes. The employer may shorten the meal period to not less than twenty (20) minutes, such period being credited as compensable hours,
in the following cases:
(a) Where the work is non-manual in nature or does not involve strenuous physical exertion;
(b) Where the establishment regularly operates not less than sixteen hours a day;
(c) In case of actual or impending emergencies or there is urgent work to be performed on machineries, equipment or installations to avoid
serious loss which the employer would otherwise suffer; and
(d) Where the work is necessary to prevent serious loss of perishable goods. (Section 7, Rule 1, Book III, Implementing Rules and
Regulations).
Illustration:
R works as a saleslady in a big department store. Her schedule is as follows: 10:00 am to 1:00 pm; 1:00 pm to 1:30 pm meal break; then 1:30
pm to 6:30 pm. Is her meal break from 1:00 pm to 1:30 pm considered working time? Why?
Yes. While the employer may fix the meal period to less than one (1) hour considering that R’s work does not involve strenuous physical
exertion, such shortened period is to be credited as compensable working time. This is only just since the shortening of the period to less than
one (1) hour is for the benefit of the department store.
May the employee leave the company premises during the meal period?
Yes. Nowhere in the law may it be inferred that employees must take their meals within the company premises. Employees are not
prohibited from getting out of the premises as long as they return to their posts on time. A company physician’s act of leaving the premises to
have his meal in his home which was only a few minutes away from the clinic has therefore been ruled as not constituting abandonment
(Philippine Airlines, Inc. vs. NLRC et al., GR No. 132805, Feb. 2, 1999).
Night Differential and its Exception
A night differential of not less than ten percent (10%) of regular wage must be paid to any employee for work between 10:00 o’clock in
the evening and 6:00 o’clock in the morning the following day (Article 86, Labor Code).
The following employees are not however entitled to this benefit:
(a) Those of the government and any of its political subdivisions, including government-owned and/or controlled corporations;
(b) Those of retail and service establishments regularly employing not more than five (5) workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book III of this Code;
(e) Field personnel and other employees whose time and performance are unsupervised by the employer, including those who are engaged on
task or contract basis, purely commission basis, or those who are paid a fixed amount for performance thereof (Section 1, Rule II, Book III,
Implementing Rules and Regulations).
Illustration:
X works as a helper in gasoline station which is open 24 hours a day. The establishment has only five (5) employees. If X is assigned to
the work shift which starts from 10:00 o’clock in the evening and ends at 7:00 o’clock in the morning of the following day, will he be entitled to
any night shift differential? Why?
X is not entitled to night shift differential. He works in a retail establishment employing not more than five (5) workers.
Retail or Service Establishment
A retail establishment is one open to the general consuming public for the sale of goods that are commonly bought by end-users for
personal or house-hold use. A grocery or restaurant can be classified as a retail establishment. But a dealer of diesel parts cannot be
considered as such.
A service establishment is one engaged predominantly in the sales of services to individuals for their own or household use. A television
and radio repair shop can be categorized as a service establishment. But a travel agency does not fall under this classification.
The exercise of a profession is neither service nor retail.
Illustration:
K’s Minimart, Inc. operates ten (10) outlets that are open twenty-four hours a day. Each outlet is manned by four (4) employees. Are the
employees who are assigned to the night shift (10:00 pm to 6:00 am) entitled to night shift differential? Why?
Yes. Although each outlet is manned by not more than 5 employees, the total number of employees of K’s Minimart, Inc., assigned to all
the outlets, exceeds five (5). It is at least forty (40).
The exemption from the payment of the night shift differential is intended to benefit only the small outfits, with the total number of
employees not exceeding five (5).
4. Lesson 7: Holiday Pay, Leaves and Service Charges
Regular Holidays
Pursuant to Letter of Instructions No. 814 as amended by Letter of Instructions No. 1087, and Executive Order 203 and Rep. Act No. 9177, there
are eleven (11) regular holidays, exclusive of the days for elections, plebiscites and referendums. These are
1. New Year’s Day – January 1st
2. Maundy Thursday – Date not fixed
3. Good Friday – Date not fixed
4. Bataan Day – April 9
5. Labor Day – May 1st
6. Independence Day – June 12th
7. National Heroes Day – Last Sunday of August
8. Bonifacio Day – November 30
9. Christmas Day – December 25
10. Rizal Day – December 30
11. Eidul Fitr – Date not fixed
ART. 93 – COMPENSATION FOR REST DAY, SUNDAY OR HOLIDAY WORK
(a) Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least thirty
percent (30%) of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday, only when it
is his established rest day.
ART. 94 – RATE FOR WORK RENDERED ON REGULAR HOLIDAY
(b) The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his
regular rate;

NOTE: This provision is not applicable to retail and service establishments regularly employing less than ten (10) workers.
The rule in case of successive regular holidays is as follows:
An employee may not be paid for both holidays if he absents from work on the day immediately preceding the first holiday unless he is on paid
leave on such day or works on the first holiday, in which circumstance, he is entitled to holiday pay on the second holiday.
NOTE: Rule in case two regular holidays falling on the same day:
1) if employee did not work: 200% of basic pay;
2) if employee worked: 300% of basic pay (DOLE Explanatory Bulletin on Workers’ Entitlement to Holiday Pay on 9 April 1993, Araw ng
Kagitingan and Good Friday).
Summary of Rates
Holiday Pay
i. If unworked: 100% of the minimum wage rate
ii. If worked on a regular holiday: 200% of

the minimum wage rate
iii. If worked on Araw ng Kagitingan which falls on the

same day as Maundy Thursday or Good Friday:
300%
Premium Pay
i. Rest days OR on special days: 30% of the daily

basic rate
ii. Rest day which is also a special day: plus 50% of

the daily basic rate of 100%
iii. Regular holiday: 30% of the regular holiday rate of

200% based on his / her daily basic wage rate
Overtime Pay
i. Ordinary working days: 25% of the hour rate
ii. Scheduled rest day OR a special day: 30% of the

hourly rate on said days
iii. Special day which falls on a scheduled

rest day: 30% of the hourly rate on said days
iv. Regular holiday: 30% of the hourly rate on said

days
v. Regular holidays which falls on a scheduled rest

day: 30% of the hourly rate on said days
Night Differential Pay
10% of an employee’s regular wage for each hour of

work performed from 10 pm to 6 am (2018 Handbook
on Worker’s Statutory Monetary Benefits).
Successive Holiday Pay
Where there are two (2) successive regular holidays, like Maunday Thursday and Good Friday, an employee may not be paid for both holidays if
she / he absents himself / herself from work on the day immediately preceding the first holiday, unless he / she works works on the first holiday,
in which case he / she is entitled to his / her holiday pay on the second holiday (2018 Handbook on Worker’s Statutory Monetary Benefits).
Illustration:
1. If an employee does not work on a regular holiday, is he entitled to any pay?
Yes. Article 94 of the Labor Code provides that a worker shall be paid his regular daily wage during holiday holidays. The following are not
however entitled to any pay:
(a) Those of the government and any of the political subdivisions, including government owned and controlled corporations;
(b) Those of retail and service establishments regularly employing less than ten (10) workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book III of the Labor Code;
(e) Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on
task or contract basis; purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in
the performance thereof.
2. X, a machine operator in a tire company receiving a daily rate of P300.00 is required by his employer to work on May 1. How much
will he get for eight hours work on such day?
X will get P600.00. The employer may require an employee to work on a regular holiday, but such employee shall be paid a compensation
equivalent to twice his regular rate (Article 94, Labor Code).
3. L works as a salesgirl in the Reliance Grocery, an establishment with a work force of seven (7). She is required to report for work
on Christmas Day. Is she entitled to holiday pay? Why?
L works in a retail establishment regularly employing less than ten (10) employees. Her employer is exempted by law from paying its employees
holiday pay. She will only get her regular pay, not twice the amount.
4. X, whose daily rate is P300.00 and whose rest day falls on a Sunday, is told by his employer to work on a National Heroes Day,
which is also a Sunday.
(a) Assuming that X is entitled to holiday pay and he works on National Heroes Day for eight (8) hours, what will be his total
compensation for such work?
X will get 200% of his daily rate of P300.00, or P600.00, plus 30% thereof, or a total of P780.00. This is following the rule that if the holiday work
falls on the scheduled rest day of the employee, he shall be entitled , for work not exceeding eight (8) hours, to an additional premium pay at
least 30% of his regular holiday rate of 200% based on his regular wage rate (Section 4, Rule IV, Book III, Implementing Rules and
Regulations).
ART. 95 – SERVICE INCENTIVE LEAVE
(a) Every employee who has rendered at least one (1) year of service shall be entitled to a yearly service incentive leave of five (5) days with
pay.
EXCEPTIONS:
1. Government employees;
2. Managerial employees;
3. Officers or members of a managerial staff;
4. Persons in the personal service of another;
5. Field personnel;
6. Those already enjoying this benefit;
7. Those enjoying vacation leave with pay at least 5 days;
8. Those employed in establishments regularly employing LESS than ten (10) employees 2018 Handbook on Worker’s Statutory Benefit).
NOTE:
@ In Fernandez vs. NLRC, (285 SCRA 149, 176 [1998] since a service incentive leave is clearly demandable after one year of service –
whether continuous or broken – or its equivalent period, and it is one of the “benefits” which would have accrued if an employee was not
otherwise illegally dismissed, it is fair and legal that its computation should be up to the date of reinstatement as provided under Section [Article]
279 of the Labor Code, as amended.
@ Giving of vacation leave or sick leave may be considered as a substitute for service incentive leave. SIL is commutable.
@ Kasambahay are now entitled to 5 – day SIL with pay (RA No. 10361).
Illustration:
For purposes of entitlement to the service incentive leave, when is an employee considered to have rendered “at least one year of
service”?
The term “at least one year of service” shall mean service within 12 months, whether continuous or broken, reckoned from the date the
employee started working, including authorized absences and paid regular holidays unless the working days in the establishment as a matter of
practice or policy, or that provided in the employment contract are less than 12 months, in which case said period shall be considered as one
year (Section 3, Rule V, Book III, Implementing Rules and Regulations).
Curious Animal Doctrine
The employee may choose to either use his leave credits or commute it to its monetary equivalent if not exhausted at the end of the year. The
rule on commutation does not apply to Kasambahays (AutoBus Transport Inc. vs. Bautista, 2005).
ART. 100 – PROHIBITION AGAINST ELIMINATION OR DIMINUTION OF BENEFITS
Nothing in this book shall be construed to eliminate or in a way diminish supplements, or other employee benefits being enjoyed at the time of
promulgation of this Code.
Principle of Non-Diminution of Benefits
The employer cannot (1) reduce, (2) diminish, (3) discontinue or (4) eliminate any benefit or supplement being enjoyed by or granted to its
employees (Philippine Journalists Inc. vs. Journalist Employees Union, 2013).
There is diminution of benefits when it is shown that:
1. the grant of benefit is founded on a policy or has ripened into a practice over a long period;
2. the practice is consistent and deliberate;
3. the practice is not due to error in the construction or application of a doubtful or difficult question of law; and
4. the diminution or discontinuance is done unilaterally by the employer (TSPIC Corp. vs. TSPIC Employees Union, 2008).
NOTE:
@ An agreement increasing the percentage of employee benefits would be valid for being beneficial to the employee.
@ Bonus is an amount granted voluntarily to an employee for his industry and loyalty which contributed to the success and realization of profits
of the employer’s business.
@ Bonus is a management prerogative. Hence, in the case of Producers Bank of the Philippines vs. NLRC, 355 SCRA 489 (2001), the
Supreme Court ruled that an employer cannot be compelled to give bonuses when it can no longer afford to pay. To hold otherwise would be to
penalize the employer for his past generosity.
@ The company practice of shelling out bonuses for its employees may ripen into a benefit which cannot be unilaterally withdrawn. See Sevilla
Trading Co. vs. Semana, GR No. 152456, April 28, 2004.
ART. 97 – (F) SALARY VS. WAGES
Wage applies to compensation for manual labor, whether skilled or unskilled, while salary denotes a compensation for a higher degree of
employment (Gaa vs. CA, 140 SCRA 304).
NOTE:
@ Under the Civil Code (Art. 1708), wages are exempt from execution or attachment except for debts incurred for food, shelter, clothing and
medical attendance.
@ Art. 97 (f) wage is that “xxx remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or
ascertained on a time, task, piece or commission basis, or other method of calculating the same, which is payable by an employer to an
employee under a written or unwritten contract of employment for work done or to be done or for services rendered or to be rendered and
includes the fair and reasonable value as determined by the Secretary of Labor, of board, lodging or other facilities customarily furnished by the
employer to the employee. “Fair and reasonable value” shall not include any profit to the employer or any person affiliated with the employer.
ART. 105 – DIRECT PAYMENT OF WAGES
Wages shall be paid directly to the workers to whom they are due except:
xxx
(b) Where the worker has died in which case the employer may pay the wages of the deceased worker to the heirs of the latter without
necessity of intestate proceedings. The claimants if they are all of age shall execute an affidavit attesting to their relationship to the deceased
and the fact that they are his heirs, to the exclusion of all other persons. If any of the heirs is a minor, the affidavit shall be executed on his
behalf by his natural guardian or next of kin. The affidavit shall be presented to the employer who shall make payment through the Secretary of
Labor or his representatives. The representatives of the Secretary of Labor shall act as referee in dividing the amount paid among the heirs.
Xxx
NOTE:
@ Other EXCEPTIONS for direct payment of wages are:
a) Where the employer is authorized in writing by the employee to pay his wages to a member of his family;
b) Where payment to another person of any part of the employee’s wages is authorized by existing law, including payment for the insurance
premiums of the employee and union dues where the right to check-off has been recognized by the employer in accordance with the collective
agreement or authorized in writing by the individual employees concerned.
ART. 113 – WAGE DEDUCTION
“No employer, in his own behalf or in behalf of any person, shall make any deduction from the wages of his employees, except:
(a) In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid
by him as premium on the insurance;
(b) For union dues, in cases where the right of the worker or his union to check-off has been recognized by the employer or authorized in writing
by the individual worker concerned; and
(c) In cases where the employer is authorized by law or regulations issued by the Secretary of Labor.”
NOTE: Other allowable wage deductions, inter alia, are:
a) In cases where the employee is indebted to the employer, where such indebtedness has become due and demandable (CC, Art. 1706);
b) Withholding tax;
c) SSS, Medicare, PAG-IBIG Premiums;
d) Salary deductions of a member of a legally established cooperative (Art. 59 of RA 6938)
Maternity and Paternity Leave
Maternity and Paternity Leave
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3/13/23, 12:30 PM MODULE 3 - HOURS OF WORK, REST PERIODS, HOLIDAY PAY, LEAVES AND SERVICE CHARGES

MODULE 3 - HOURS OF WORK, REST PERIODS, HOLIDAY PAY, LEAVES

Site: New Era University Printed by: Frenzyn Mae S. Yoro

3. Lesson 6: Hours of Work, Overtime

4. Lesson 7: Holiday Pay, Leaves and Service Charges

1. State the principle behind hours worked and overtime

2. Differentiate overtime pay and premium pay.

3. Identify employees who are not entitled to overtime pay.

3. Lesson 6: Hours of Work, Overtime

Normal Hours of Work

Compensable Hours Worked

Hours worked. Hours worked shall include

(b) all time during which an employee is suffered or permitted to work.

Compensable Hours of Work – General Principle

Is waiting time spent by an employee considered as working time? Explain.

What is overtime work and how is it compensated?

Overtime Pay vs. Premium Pay

Reasons for the Requirement of Overtime Pay

May an employee be compelled to render overtime work?

They are the following:

(a) government employees

(b) managerial employees

(c) non-agricultural field personnel

(e) domestic helpers and persons in the personal service of another

Night Differential and its Exception

(c) Domestic helpers and persons in the personal service of another;

(d) Managerial employees as defined in Book III of this Code;

Retail or Service Establishment

The exercise of a profession is neither service nor retail.

4. Lesson 7: Holiday Pay, Leaves and Service Charges

1. New Year’s Day – January 1st

2. Maundy Thursday – Date not fixed

3. Good Friday – Date not fixed

4. Bataan Day – April 9

5. Labor Day – May 1st

6. Independence Day – June 12th

7. National Heroes Day – Last Sunday of August

8. Bonifacio Day – November 30

9. Christmas Day – December 25

10. Rizal Day – December 30

11. Eidul Fitr – Date not fixed

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

ART. 94 – RATE FOR WORK RENDERED ON REGULAR HOLIDAY

The rule in case of successive regular holidays is as follows:

1) if employee did not work: 200% of basic pay;

i. If unworked: 100% of the minimum wage rate

ii. If worked on a regular holiday: 200% of

iii. If worked on Araw ng Kagitingan which falls on the

i. Rest days OR on special days: 30% of the daily

ii. Rest day which is also a special day: plus 50% of

iii. Regular holiday: 30% of the regular holiday rate of

i. Ordinary working days: 25% of the hour rate

ii. Scheduled rest day OR a special day: 30% of the

iii. Special day which falls on a scheduled

iv. Regular holiday: 30% of the hourly rate on said

v. Regular holidays which falls on a scheduled rest

Night Differential Pay

10% of an employee’s regular wage for each hour of

Successive Holiday Pay

(c) Domestic helpers and persons in the personal service of another;

(d) Managerial employees as defined in Book III of the Labor Code;

ART. 95 – SERVICE INCENTIVE LEAVE

3. Officers or members of a managerial staff;