Please answer the questions below. Write your answers on a yellow paper.

Send the
scanned copy thereof to my email on or before April 08, 2023 at 05:00 p.m., and
personally submit to me the hard copy on April 14, 2023.
1. Who is a managerial employee?
(a) Managerial employees refer to those whose primary duty consists of the
management of the establishment in which they are employed or of a
department or subdivision thereof, and to other officers or members of the
managerial staff.
(b) Managerial employee is one who is vested with powers or prerogatives to lay
down and execute management policies and / or to hire, transfer, suspend,
lay off, recall, discharge, assign or discipline employees. Supervisory
employees are those who, in the interest of the employer, effectively
recommend such managerial actions if the exercise of such authority is not
merely routinary or clerical in nature but requires the use of independent
judgment. All employees not falling within any of the above definitions are
considered rank-and-file employees for purposes of this Book.
2. Are supervisors entitled to an overtime pay?
NO. Supervisors are part of the managerial staff and therefore not entitled to
overtime pay and other benefits under Article 83 through 96.
3. What is the four-fold test in determining the existence of employer-employee
relationship?
It is court decisions that give some guides in determining the existence of
employer-employee relationship by applying the 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. The so-called “control
test” is the most important element.
4. What is the economic dependence test in determining the existence of
employer-employee relationship?
Under the two-tiered approach, the control test as well as the underlying
economic realities within the activity or relationship must be established. This is
known as the Economic Dependence Test.
Under the Economic Dependence Test, in determining the existence of an
employer-employee relationship, realities involving activities or relationship must be
examined, taking into consideration the totality of circumstances surrounding the
true nature of the parties’ relationship.
 Two-tiered Approach: The Economic Dependence Test
1. The putative employer’s power to control the employee with respect to the
means and methods by which the work is to be accomplished; and
2. The underlying economic realities of the activity or relationship.
5. Who are the employees that are not covered by the law on Working Conditions
and Rest Periods (Title I), Conditions of Employment (Book Three) as stated in the
Labor Code?
In the situation where employment relationship exists, the next matter of
concern is coverage, that is, who are the employees that are or are not covered by
the law on conditions of employment. Article 82 says that the whole Title I – from
Articles 82 to 96 (Working Conditions and Rest Periods) – applies to all employees in
all establishments, except the following:
(1) Government employees;
(2) Managerial employees including other officers or members of the managerial
staff;
(3) Field personnel;
(4) The employer’s family members who depend 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 under DOLE regulations.
6. An employee is entitled to a meal period of not less than sixty (60) seconds. Is
this true or false? Explain briefly.
FALSE. According to Article 85 of the Labor Code, otherwise known as Meal
Periods, states that “Subject to such regulations as the Secretary of Labor may
prescribe, it shall be the duty of every employee to give his employees not less than
sixty (60) minutes time-off for their regular meals.” Therefore, an employee is not
entitled to a meal period of not less than sixty (60) seconds but a meal period of not
less than sixty (60) minutes.
7. When can an employee be entitled to a night shift differential pay?
According to Article 86 of the Labor Code which states that, “Every employee
shall be paid a night shift differential of not less than ten percent (10%) of his regular
wage for each hour of work performed between ten o’clock in the evening and six
o’clock in the morning.”
NOTES
The night shift differential is attached by law to every work done between
10:00 P.M. and 6:00 A.M., whether or not this period is part of the worker’s regular
shift.
 If the work done between 10:00 P.M. and 6:00 A.M. is overtime work for the
employee, then the 10% night shift differential should be based on his overtime rate.
Exempt from this law are retail and service establishments regularly
employing not more than five workers. This exemption is stated in the Implementing
Rules although not granted by the Code.
8. A retail or service establishment is employing only four (4) workers. Are the 4
workers entitled to a night shift differential pay?
NO. The four (4) workers of a retail or service establishment are not entitled to night
shift differential pay. Article 86 of the Labor Code, otherwise known as Night Shift
Differential, stipulates that “Every employee shall be paid a night shift differential of
not less than ten percent (10%) of his regular wage for each hour of work performed
between ten o’clock in the evening and six o’clock in the morning.” This means that a
night shift differential pay is an additional pay given to employees who work during
graveyard shift. Exempt from this law are retail and service establishments regularly
employing not more than five workers. This exemption is stated in the Implementing
Rules although not granted by the Code. Therefore, in the instant case, with the
provided exemption the 4 workers employed in a retail or service establishment are
not entitled to night shift differential pay.

9. When can an employee be entitled to an overtime pay?

Article 87 of the Labor Code, otherwise known as Overtime Work, states that
“Work may be performed beyond eight (8) hours a day provided that the employee is
paid for the overtime work an additional compensation equivalent to his regular
wage plus at least twenty-five percent (25%) thereof. Work performed beyond eight
hours on a holiday or rest day shall be paid an additional compensation equivalent to
the rate of the first eight hours on a holiday or rest day plus at least thirty percent
(30%) thereof.”
10. When can an employer require an employee to perform overtime work?
Article 89 of the Labor Code, otherwise known as Emergency Overtime Work,
established any employee may be required by the employer to perform overtime
work in any of the following cases:
(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 property 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 or 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 eight
hour is necessary to prevent serious obstruction or prejudice to the business
or operations of the employer.
11. When can an employee be entitled to a Service Incentive Leave of five (5) with
pay?
Article 95 of the Labor Code, otherwise known as the Right to Service Incentive
Leave, states that “(a) Every employee who has rendered at least one year of service
shall be entitled to a yearly service incentive leave of five days with pay. (b) This
provision shall not apply to those who are already enjoying the benefit herein
provided, those enjoying vacation leave with pay of at least five days and those
employed in establishments regularly employing less than ten employees or in
establishments exempted from granting this benefit by the Secretary of Labor after
considering the viability or financial condition of such establishment. (c) The grant of
benefit in excess of that provided herein shall not be made a subject of arbitration or
any court or administrative action.”
12. An establishment is employing only eight (8) employees. Assuming that the
said 8 employees were able to render at least one (1) year of service, are
they entitled to a service incentive leave pay?
NO. The eight 8 employees employed in an establishment and were able to render at
least one year of service are not entitled to service incentive leave pay. Article 95 of
the Labor Code, otherwise known as the Right to Service Incentive Leave states that
“(a) Every employee who has rendered at least one year of service shall be entitled
to a yearly service incentive leave of five days with pay. (b) This provision shall not
apply to those who are already enjoying the benefit herein provided, those enjoying
vacation leave with pay of at least five days and those employed in establishments
regularly employing less than ten employees or in establishments exempted from
granting this benefit by the Secretary of Labor after considering the viability or
financial condition of such establishment. (c) The grant of benefit in excess of that
provided herein shall not be made a subject of arbitration or any court or
administrative action.” However, establishments with less than ten (10) employees,
as shown by evidence, are not legally bound to give the five days SIL, unless obliged
by contract, policy, or practice. Therefore, the establishment having only eight (8)
employees even if they were able to render at least one (1) year of service are not
entitled to a service incentive leave pay, unless obliged by contract, policy, or
practice.
13. What is the “Non-Diminution Rule”?
Article 100 of the Labor Code, otherwise known as the Non-Diminution Rule,
mandates that benefits given to employees cannot be taken back or reduced
unilaterally by the employer because the benefit has become part of the
employment contract, written or unwritten. The rule against diminution of benefits
applies if it is shown that the grant of the benefit is based on an express policy or has
ripened into a practice over a long period of time and that the practice is consistent
and deliberate.