LABOR LAW AND LEGISLATION
Do not devote more than 20% of their
Book III – Conditions of Employment
TITLE I- WORKING CONDITIONS AND REST
PERIODS
Chapter I- HOURS OF WORK
Art. 82. Coverage. The provisions of this Title
shall apply to employees in all establishments
and undertakings whether for profit or not, but
not to government employees, managerial
employees, field personnel, members of the
family of the employer who are dependent on
him for support, domestic helpers, persons in
the personal service of another, and workers
who are paid by results as determined by the
Secretary of Labor in appropriate regulations.
1. GOVERNMENT EMPLOYEES
Refers to those employed by the National
government or nay of its political subdivisions,
and to those employed by GOCC with special
charters or organized under Corporation Law
They are exempted from the working conditions
prescribed under the LC because they are
covered by different set of laws, particularly the
CSL and the Administrative Code and by their
respective charters, in case of GOCCs.
2. 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.
The reason for the exemption is that such
employee are not usually engaged for every
hour but their compensation is determined by
their special training, experience or knowledge.
It is not feasible to provide hourly rate of pay or
maximum hours of labor
3. MANAGERIAL STAFF
refer to those
a. Primarily perform work directly related
to management policies
b. Customarily and regularly exercise
discretion and independent judgment
c. Regularly and directly assist a
managerial employee, or execute under
general supervision, specialized or
technical work or special assignment
d.
hours worked in a workweek to
activities which are not directly and
closely related to the performance of
the work described above
The reason for exemption is because they
perform work related to management policies.
Hence, it is not feasible to provide them a fixed
hourly rate of pay or maximum hours of work
4. FIELD PERSONNEL
shall refer 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 in
the field cannot be determined with reasonable
certainty.
The philosophy behind the exemption is that
this kind of employees work away from the
employer’s place of business and therefore not
subject to the personal supervision of the
employer.
5. FAMILY MEMBERS
Refers to husband and wife, parents and
children, other ascendants and descendants,
brothers and sisters, whether full or half blood.
Cousins, parents in law or children in law are
not considered family members because they
do not belong to the same family
To be exempted, the family members must be
dependent upon his employer for support.
The reason for the exemptions because the
employer already takes care of the sustenance,
dwelling, medical or education
6. DOMESTIC HELPERS
Refers to any person who renders service in and
about the employer’s home on an activity which
are usually necessary or desirable for the
maintenance and enjoyment of the employer
and ministers exclusively to the personal
comfort and enjoyment of the employer’s
family.
Examples are general househelper, gardeners,
laundry person
The reason for the exemptions is nature of work
plus the fact they are not employed in a
business undertaking
7. PERSON IN THE PERSONAL SERVICE OF
ANOTHER
Are those who minister to the personal comfort,
convenience or safety of the employer as well
as the members of the employment household
Examples are personal bodyguard, private nurse
and family drivers
The reason for the exemption is the nature of
their work and their peculiar relationship with
their employer necessitates them from certain
legal restrictions applicable to employers
engaged in a business undertaking
8. WORKERS PAID BY RESULTS
Are those who are compensated on the basis of
their output regardless of the time limit spent in
doing their work.
A piece rate worker is an example
The philosophy is compensation of this kind of
worker is dependent upon the work done
regardless of the time spent in doing the work.
Art. 83. Normal hours of work. The normal
hours of work of any employee shall not
exceed eight (8) hours a day.
Health personnel in 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, 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 regular
wage for work on the sixth day.
For purposes of this Article, “health personnel”
shall include resident physicians, nurses,
nutritionists, dietitians, pharmacists, social
workers, laboratory technicians, paramedical
technicians, psychologists, midwives, attendants
and all other hospital or clinic personnel.
Basic rules:
1. The normal 8 hours work a day applies
not only to ordinary employees but also
to public utility bus drivers and
conductors and seamen
2. The 8 hours work need not be
continuous. It may be staggered as long
as the 8 hours work falls within the 24
hours period
3. Work in excess of 8 hours within 24
hours period is overtime service which
entitles the covered employee to
overtime compensation
Art. 84. Hours worked. Hours worked shall
include (a) all time during which an employee
is required to be on duty or to be at a
prescribed workplace; (b) all time during which
an employee is suffered or permitted to work.
Rest periods of short duration during working
hours shall be counted as hours worked.
THE PRINCIPLE OF NO-WORK-NO-PAY
Our labor relations system follows the principle
of “a fair day’s wage for a fair day’s labor”. This
means that the time during which the
employees did not render service is not
compensable
However, the mere fact that an employee does
not perform any productive work, does not
necessarily mean that his idle time cannot be
considered as hours worked.
There are certain guiding principles for
determining whether the time spent by an
employee is to be considered as hours worked
WAITING TIME:
May or may not be considered as hours of
worked depending on whether the employee
was engaged to wait or merely waiting to be
engaged
If engaged to wait, it is considered as hours of
worked because his time is already controlled
by the employer, hence the employee could no
longer effectively use the time for waiting for
his own purposes
Ex. Company driver while waiting for his boss
WAITING TO BE ENGAGED
Is not considered as hours worked because his
time is not yet controlled by the employer
considering that there has been no engagement
yet
ON CALL TIME
May or may not be considered as hours worked
depending on the following situations:
a. If the employee 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 purpose, hence the employee is
considered to be working while on call
b. If the employee is not required to leave
word at his own or with company
officials where he may be reached, he is
not considered working while on call.
ATTENDANCE AT LECTURES, MEETINGS,
TRAINING PROGRAM
May or may not be considered as hours of
worked depending on the following
circumstances:
1. If imposed as a requirement of the employer,
then it is considered as hours worked.
2. If the attendance is not compulsory and the
employee voluntarily attended which was
conducted outside of the regular working hours,
then it is not considered as hours worked.
ASSEMBLY TIME
Some employers call upon their employees to
assemble at a designated area before the start
of their scheduled working hours:
1. If the workers are subject to the
absolute control of the employer during
the period, the assembly time is
considered as hours worked
2. If not subject to control, it is not
considered as hours worked.
3. If the worked 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 done with the knowledge of his
employer or immediate supervisor
Art. 85. Meal periods. Subject to such
regulations as the Secretary of Labor may
prescribe, it shall be the duty of every
employer to give his employees not less than
sixty (60) minutes time-off for their regular
meals.
MEAL PERIOD
Employees are generally entitled to at least one
hour time-off for regular meals. Such meal
period is not considered as part of working time
However, if the employees are not completely
relieved of their duties during the one-hour
period, the meal period will be considered as
part of the working time
Although Art.85 of the LC prescribes a 60-
minute meal break, an employer can set a
shorter meal period of at least 20 minutes (part
of working time):
1. Where the work does not involve
strenuous physical exertion
2. Where the establishment regularly
operates not less than 16 hours a day.
3. Where the work is necessary because of
actual or impending emergencies
4. Where the work is necessary because of
urgent work to be performed on
machineries
5. Where the work is necessary to prevent
serious loss of perishable goods
Art. 86. Night shift differential. 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 (10PM) and six o’clock in
the morning (6AM).
A night shift differential (NSD) 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 10PM and 6AM is
overtime work for the employee, then the night
shift differential should be based on the
overtime rate
Example:
1.Minimum salary is P300; Your NSD = 30; Total
Salary = P330
2. P300 + 75 = P375 + P37.50 = P412.50
(25%OT) (NSD 10%)
Art. 87. Overtime work. 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.
OVERTIME WORK
Refers to the service rendered beyond 8 hours
in a day. The term “day” refers to the 24 hours
period reckoned from time the employee
started working. Work rendered in excess of 8
hours within this 24 hour period is overtime
work
RATES OF OVERTIME PAY
1. Ordinary day – 25% of the regular wage
2. Holiday or Rest day – 30% of the
Holiday or Rest day rate
WHO ARE NOT ENTITLED TO OVERTIME PAY
Not all employees are entitled to overtime pay.
The following employees are not entitled to OT
pay:
1. Employees of the government and
GOCCs with special charters
2. Managerial employees
3. Officers and members of a managerial
staff
4. Field personnel
5. Employees engaged on task or
contractual basis
6. Employees paid purely commission
basis
7. Domestic helpers
8. Person in the personal service of
another
9. Members of the family of the employer
10. Workers paid by results
OVERTIME OF PUBLIC UTILITY BUS DRIVERS
AND CONDUCTORS
May render OT work but to 4 hours a day only.
Thus the maximum hours of work including OT
is 12 hours a day
OVERTIME OF SEAMEN
May render OT work but up to 6 hours a day
only. Thus, the maximum hours of work
including OT is 14 hours a day.
CAN AN EMPLOYEE BE COMPELLED TO RENDER
OVERTIME WORK?
Generally, covered employees cannot be
compelled to render OT work because that
would violate of the constitutional injunction
against involuntary servitude.
Art III of the Bill of Rights under Sec.18(2)
“No involuntary servitude in any form
shall exist except as punishment for a crime
whereof the party shall have been duly
convicted”
EXCEPTIONS:
1. In case of
a. War or when any other national
emergency or local emergency
b. Actual or impending disaster or
calamity
c. Urgent work to be performed
on machines or installations.
d. When necessary
e. To prevent loss or damage to
perishable goods
f. To avail of favorable weather
conditions
g. To complete the work started
before the 8 hour
(Refer to Art.89)
Art. 88. Undertime not offset by overtime.
Undertime work on any particular day shall not
be offset by overtime work on any other day.
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 in this
Chapter
OFFSETTING UNDERTIME WITH OVERTIME NOT
ALLOWED
The obligation to pay overtime compensation is
mandatory. An employer cannot evade
payment of OT pay by offsetting it with
undertime incurred in another day.
As a rule, the right to overtime pay cannot be
waived. Any stipulation that the laborer shall
work beyond the regular 8 hours without
additional compensation is contrary to law,
hence, null and void
But when the alleged waiver of overtime pay is
in consideration of benefits and privileges which
may even exceed the overtime pay, the waiver
may be permitted
COMPRESSED WORK WEEK (CWW)
An example of valid waiver of OT pay is the
CWW.
According to DOLE, the normal number of
workdays per week shall be 6 or a total of 48
hours based on the normal work days or 40
hours a week
Instead of working 6 days a week, the
employees will regularly be working for only say
5 days, but each workday exceeds 8 hours
because of the workhours taken from the 6 day.
For the hours exceeding 8 in a workday, the
employees waive their OT pay because, in
return, they will no longer incur transport and
other expenses on a 6 day.
Also they save time that they can devote to
their family and other endeavors.
Art. 89. Emergency overtime work. 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
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 eighth hour is
necessary to prevent serious obstruction or
prejudice to the business or operations of the
employer.
Any employee required to render overtime
work under this Article shall be paid the
additional compensation required in this
Chapter.
Overtime as a rule can be rendered only
voluntarily
This article enumerates the exceptions, that is
overtime work becomes OBLIGATORY
Art. 90. Computation of additional
compensation. For purposes of computing
overtime and other additional remuneration as
required by this Chapter, the “regular wage” of
an employee shall include the cash wage only,
without deduction on account of facilities
provided by the employer.
The phrase “WITHOUT DEDUCTION ON
ACCOUNT OF FACILITIES PROVIDED BY THE
EMPLOYER”
Means that in computing the regular wage, the
value of facilities, such as board and lodging,
customarily furnished by the employer should
not be included.
Chapter II- WEEKLY REST PERIODS
Art. 91. Right to weekly rest day.
a. It shall be the duty of every employer,
whether operating for profit or not, to provide
each of his employees a rest period of not less
than twenty-four (24) consecutive hours after
every six (6) consecutive normal work days.
b. The employer shall determine and schedule
the weekly rest day of his employees subject
to collective bargaining agreement and to such
rules and regulations as the Secretary of Labor
and Employment may provide. However, the
employer shall respect the preference of
employees as to their weekly rest day when
such preference is based on religious grounds.
NEVERTHELESS, if the preference of the
employee will inevitably result in serious
prejudice or obstruction to the operations of
the undertaking, the employer may schedule
the preferred rest day for at least 2 days in a
month
If the employee chooses a particular day to be
his rest day on religious grounds, he shall inform
the employer in writing at least 7 days before
the desired effectivity of the preference rest
day
Art. 92. When employer may require work on a
rest day. The employer may require his
employees to work on any day:
a. In case of actual or impending emergencies
caused by serious accident, fire, flood,
typhoon, earthquake, epidemic or other
disaster or calamity to prevent loss of life and
property, or imminent danger to public safety;
b. In cases of urgent work to be performed on
the machinery, equipment, or installation, to
avoid serious loss which the employer would
otherwise suffer;
c. In the event of abnormal pressure of work
due to special circumstances, where the
employer cannot ordinarily be expected to
resort to other measures;
d. To prevent loss or damage to perishable
goods;
e. Where the nature of the work requires
continuous operations and the stoppage of
work may result in irreparable injury or loss to
the employer; and
f. Under other circumstances analogous or
similar to the foregoing as determined by the
Secretary of Labor and Employment.
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.
b. When the nature of the work of the
employee is such that he has no regular
workdays and no regular rest days can be
scheduled, he shall be paid an additional
compensation of at least thirty percent (30%)
of his regular wage for work performed on
Sundays and holidays.
c. Work performed on any special holiday shall
be paid an additional compensation of at least
thirty percent (30%) of the regular wage of the
employee. Where such holiday work falls on
the employee’s scheduled rest day, he shall be
entitled to an additional compensation of at
least fifty per cent (50%) of his regular wage.
d. Where the collective bargaining agreement
or other applicable employment contract
stipulates the payment of a higher premium
pay than that prescribed under this Article, the
employer shall pay such higher rate.
REST DAY
An employee’s rest day can be any day of the
week. Work on Sunday, if it is not the
employee’s rest day, does not give any extra
pay, unless the law on holiday pay is applicable
However, where the nature of the work of an
employee is such that he has no regular work
days and no regular rest days can be scheduled,
premium pay shall be paid for the Sunday work
SPECIAL HOLIDAYS
Are those fixed by RA No. 9849
1. August 21 - Ninoy Aquino Day
2. November 1 – All Saints Day
3. December 31 – Last day of the year
4. And those which may be declared from
time to time by the national or local
government
NATIONAL REGULAR HOLIDAYS (EO 203)
Unless otherwise modified by law, order or
proclamation, the following are the national
regular holidays:
1. New Years Day - January 1
2. Maundy Thursday - movable date
3. Good Friday - movable date
4. Eidul Fitr - movable date
5. Eidul Adha - movable date
6. Araw ng Kagitingan - Monday nearest
April 9
7. Labor Day -May 1
8. Independence Day - June 12
9. National Heroes Day - Last Sunday of
August
10. Bonifacito Day - November 30
11. Christmas Day -December 25
12. Rizal Day - December 30
RATES OF PREMIUM PAY
1. For working on a rest day – 30% of the
regular wage
2. For working on a special holiday – 30%
of the regular wage
3. For working on a rest day that falls on a
special holiday – 50% of the regular
wage
HOW TO PAY SPECIAL NON-WORKING HOLIDAY
In the event that they are required to work,
employers are to pay 200% of their regular rate.
On Special Non-working Holidays, the workforce
will not receive any pay unless there is a
favorable company policy. If the employee
reported for work, he or she will be paid an
additional 30% of their regular rate.
For work done during the special non-working
holiday, an employee shall be paid an additional
30% of the daily rate on the first eight hours of
work [(basic wage x 130%) + COLA].
What is the difference between a regular
holiday and a special non-working holiday?
The difference between a regular holiday and a
special non-working holiday is just the rate of
pay you receive if you work on that day.
If your employer asks you to work on a regular
holiday, you will be paid 200 percent of your
daily rate and cost of living allowance. For
example, if your daily rate and cost of living
allowance is P2,000, you will be paid P4,000 if
you work on a regular holiday.
On the other hand, if your employer asks you to
work on a special non-working holiday, you will
be paid 130 percent of your daily rate and cost
of living allowance. For example, if your daily
rate and cost of living allowance is P2,000, you
will be paid P2,600 if you work on a special non-
working holiday.
HOLIDAYS DURING SEMESTRAL BREAK AND
CHRISTMAS VACATION
Private school teacher including faculty
members of colleges and universities are not
entitled to holiday pay for regular holidays
during semestral vacation.
However, they are entitled to holiday pay for
regular holidays during the Christmas vacation
MONTHLY PAID EMPLOYEES ARE ENTITLED TO
HOLIDAY PAY
Because they are not among those excluded in
Art.82 of the LC.
The divisor used in computing the daily rate of a
monthly paid employee assumes an important
role in determining whether or not holiday pay
is already included in the salary of monthly paid
employees;
If the divisor is at least 261 days, the holiday pay
is deemed incorporated in the salary of monthly
paid employees
Therefore, the use of 314 or 365 days as divisor,
the holiday pay is deemed incorporated in the
salary of monthly paid employ
However, if 251 days is used as divisor, the
holiday pay is not yet included in their monthly
salary because the 251 days is the result of
subtracting all Saturdays, Sundays and 10
Regular holidays from 365
Chapter III- HOLIDAYS, SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
Art. 94. Right to holiday pay.
a. Every worker shall be paid his regular daily
wage during regular holidays, except in retail
and service establishments regularly
employing less than ten (10) workers;
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; and
c. As used in this Article, “holiday” includes:
New Year’s Day, Maundy Thursday, Good
Friday, the ninth of April, the first of May, the
twelfth of June, the fourth of July, the thirtieth
of November, the twenty-fifth and thirtieth of
December and the day designated by law for
holding a general election.
WHO ARE NOT ENTITLED TO HOLIDAY PAY
Not all employees are entitled to Holiday pay.
The following employees are not entitled to
Holiday pay:
1. Employees of the government and
GOCCs with special charters
2. Managerial employees
3. Officers and members of a managerial
staff
4. Field personnel
5. Employees engaged on task or
contractual basis
6. Employees paid purely commission
basis
7. Domestic helpers
8. Person in the personal service of
another
9. Members of the family of the employer
10. Workers paid by results
11. Employees of retail and service
establishment regularly employing less
than 10 people
FACULTY MEMBERS PAID ON PER LECTURE
HOUR NOT ENTITLED TO HOLIDAY PAY
Because they are obliged to work and consent
to be paid only for work actually done.
The regular holidays are known to both school
and faculty members as “no class days”, hence,
the latter do not expect payment for said
unworked days.
MONTHLY SALARIED EMPLOYEES
The fact that an employee is monthly salaried
does not by itself exclude him from entitlement
of holiday pay, subject to Art.82
DOUBLE HOLIDAY; HOLIDAY-SUNDAY
On double regular holiday (e.g. April 9, 1998:
Araw ng Kagitingan and Maundy Thursday) An
employee who is entitled to holiday pay should
receive at least 200% of his basic wage even if
he did not work on that day,
provided, he was present or on leave with pay
on the preceding Wednesday
If he worked, he is entitled to 300% of his basic
pay
A legal holiday falling on a Sunday creates no
legal obligation on the employer to pay extra,
aside from the usual holiday pay to its monthly
paid employees
THE FOLLOWING RATE SHALL APPLY FOR
REGULAR HOLIDAY
1. If it is an employee’s regular workday
a. If unworked -100%
 b. If worked -1st 8 hours 200%
in excess of 8 hours plus 30% of hourly
rate on said day
1. If it is an employee’s rest day
a. If unworked -100%
b. If worked – 1st 8 hours –plus
30% of 200%
In excess of 8 hours – plus 30% of
hourly rate on said day
THE FOLLOWING RATE SHALL APPLY FOR
SPECIAL DAY
Such as Special Non-Working Day, Special Public
Holiday, Special National Holiday (in addition to
the 2 nationwide special days: Nov.1 All Saints
Day and December 31 Last Day of the year)
a. If unworked –no pay, unless there is a
favorable company policy practice or CBA
granting payment on special days even if
unworked.
b. If worked -1st 8 hours – plus 30% of the daily
rate of 100% in excess of 8 hours - plus 30% of
hourly rate on said day
c. Falling on the employee’s rest day and if
worked 1st 8 hours – plus 50% on the daily rate
of 100% in excess of 8 hours – plus 30% of the
hourly rate on said day
THE FOLLOWING RATE SHALL APPLY FOR
SPECIAL WORKING HOLIDAYS
An employee is entitled only to his basic rate
No premium pay is required since worked
performed on said days is considered work on
ordinary working days
Art. 95. Right to service incentive leave.
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 and Employment 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.
VACATION LEAVE AND SICK LEAVE
No law requires the grant of VL and SL to
private sector employees.
Grant of VL/SL depends on the voluntary
employer policy or CBA
What legally required are (these are statutory
or mandatory)
a. SERVICE INCENTIVE LEAVE (SIL)
b. PATERNITY LEAVE
c. MATERNITY LEAVE
Republic Act No. 11210, or the “105-Day
Expanded Maternity Leave Law,” which extends
paid maternity leave from 60 days to 105 days.
On the 1 May 2019, President Rodrigo Duterte
signed the Implementing Rules and Regulations
(IRR) for the Philippines’ new Expanding
Maternity Leave Law (Republic Act 11210),
which was approved by the Senate of the
Philippines back in March 2017.
Specifically affecting working mothers, the law
essentially increases mandatory leave
allowances for new mothers, with additional
benefits for single parents.
What is the Expanding Maternity Leave Law?
Spearheaded by the Department of Labour and
Employment (DOLE), the new law expands the
existing maternity leave benefits offered to all
working mothers in the Philippines. In more
detail, those benefits essentially involve:
Extending the current period of paid maternity
leave to 105 days (from 60 days) for normal
childbirth or caesarean delivery
An option to extend maternity leave a further
30 days without pay - so long as written notice
is given at least 45 days before the original
leave is set to end.
Crucially, the law applies to all instances of
pregnancy and all categories of working
mothers in the Philippines.
This means the leave benefit is available to
female workers regardless of their civil status,
employment status, or method of delivery:
under previous rules, women were granted only
60 days leave for normal delivery and 78 days
leave for a caesarean delivery, and the law was
actually capped at the first 4 pregnancies.
The IRR also includes provisions to extend the
new maternity benefits to women in the
informal economy sector, to national athletes,
and to women who are voluntary contributors
to the Philippines Social Security System.
Additional Benefits
The IRR includes additional provisions for single
mothers who will, under the new system,
receive 120 days of paid maternity leave. In
cases of miscarriage, or emergency
terminations, women will receive 60 days of
maternity leave at full pay.
The law also includes benefits for fathers: up to
7 days of the 105 days allocated to women for
maternity leave may be transferred to fathers,
effectively raising the length of paid paternity
leave to a potential 15 days.
The IRR was signed into law on 1 May but will
apply to all working mothers who gave birth on
or after 11 March 2019.
Act 1120 signed by the president on 20 Feb
2019.
Highlights of the Law:
Features of the 105-Day Expanded Maternity
Leave Law include the following:
1. All working mothers — including those
employed in the informal sector — can take up
to 105 days of paid maternity leave (up from 60
days for normal childbirth or 78 days for a
cesarean delivery) for each pregnancy, provided
they’ve made at least three monthly
contributions to the Social Security System (SSS)
in the 12 months preceding the semester of the
birth and have notified their employer.
Previously, women were entitled to leave for up
to four pregnancies. The maternity
arrangements for workers who aren’t covered
by the SSS will be governed by the Philippine
Health Insurance Corporation.
2. Paid maternity leave is available to all
working mothers, regardless of their civil status
and the legitimacy of their child.
Women who suffer a miscarriage or have an
emergency termination can take up to 60 days
of maternity leave with full pay.
3. Private-sector employers must make full
payment to employees within 30 days after
receiving a leave application. The SSS will
reimburse the employers. With some
exceptions, employers will be responsible for
the payment of the salary differential between
the cash benefit received from the SSS and the
employee’s actual weekly or regular wage for
the duration of the leave.
The Department of Labour and Employment
(DOLE) will issue guidelines. Companies whose
maternity benefits meet or exceed the statutory
minimum will be exempt from the law, subject
to annual ratification by the DOLE.
4. Leave must be taken as a single,
uninterrupted period at the time of the child’s
birth. The leave can’t be deferred, but it can be
taken as a combination of pre- and post-natal
leave — post-natal leave can’t be less than 60
days.
5. Employees can extend their leave by an
additional 30 days without pay, subject to
notifying their employer 45 days before the end
of the leave. Mothers who are single parents
can request an additional 15 days’ leave with
full pay.
6. Women can transfer up to seven days of their
maternity leave to the child’s father, subject to
fulfilling notification requirements for both
employers.
7. Women whose employment is terminated
will be entitled to paid maternity leave provided
the birth, miscarriage or emergency termination
occurs within 15 days of the end of their
employment.
Employers that dismiss pregnant employees
without just cause will be liable for payment of
the employee’s salary and any maternity-
related benefits for the full period of maternity
leave that the woman would have received or
for 60 days in the case of a miscarriage or
emergency pregnancy termination.
8. Women on maternity leave will be protected
from discrimination, including demotion and
layoff. In certain circumstances, employers may
transfer women returning from maternity leave
to a comparable position or reassign them to
another part of the business.
9. Penalties for violations of the law could be as
high as
PHP 200,000 (and not less than PHP 20,000) and
include imprisonment from six to 12 years.
Republic Act 8187: Paternity Leave Act of 1996
AN ACT GRANTING PATERNITY LEAVE OF SEVEN
(7) DAYS WITH FULL PAY TO ALL MARRIED
EMPLOYEES IN THE PRIVATE AND PUBLIC
SECTORS FOR THE FIRST FOUR (4) DELIVERIES
OF THE LEGITIMATE SPOUSE WITH WHOM HE IS
COHABITING AND FOR OTHER PURPOSES
Art. 96. Service charges. All service charges
collected by hotels, restaurants and similar
establishments shall be distributed at the rate
of eighty-five percent (85%) for all covered
employees and fifteen percent (15%) for
management. The share of the employees shall
be equally distributed among them. In case the
service charge is abolished, the share of the
covered employees shall be considered
integrated in their wages.
DISTRIBUTION OF SERVICE CHARGE
SC collected by the service establishment like
hotels, restaurants, night club, massage clinics,
bars, casinos, etc., are to be distributed in the
following manner:
1. 85 % - for equal distribution to covered
employees every 2 weeks.
2. 15% to be retained by the management
to answer for losses and breakages and
for distribution to managerial
employees, at the discretion of
management in the latter cases
EFFECT OF ABOLITION OF SERVICE CHARGES
If the SC is abolished, the share of the covered
employee shall be integrated in their wages
The basis of the amount to be integrated shall
be the average monthly share of each employee
for the past 12 months immediately preceding
the abolition or withdrawal of such charges.
TITLE II- WAGES
Chapter I- PRELIMINARY MATTERS
Art. 97. Definitions. As used in this Title:
a. “Person” means an individual, partnership,
association, corporation, business trust, legal
representatives, or any organized group of
persons.
b. “Employer” includes any person acting
directly or indirectly in the interest of an
employer in relation to an employee and shall
include the government and all its branches,
subdivisions and instrumentalities, all
government-owned or controlled corporations
and institutions, as well as non-profit private
institutions, or organizations.
c. “Employee” includes any individual
employed by an employer.
d. “Agriculture” includes farming in all its
branches and, among other things, includes
cultivation and tillage of soil, dairying, the
production, cultivation, growing and
harvesting of any agricultural and horticultural
commodities, the raising of livestock or
poultry, and any practices performed by a
farmer on a farm as an incident to or in
conjunction with such farming operations, but
does not include the manufacturing or
processing of sugar, coconuts, abaca, tobacco,
pineapples or other farm products.
e. “Employ” includes to suffer or permit to
work.
f. “Wage” paid to any employee shall mean the
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 and Employment, 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 to any person
affiliated with the employer.
Art. 98. Application of Title. This Title shall not
apply to farm tenancy or leasehold, domestic
service and persons working in their respective
homes in needle work or in any cottage
industry duly registered in accordance with
law.
Chapter II- MINIMUM WAGE RATES
Art. 99. Regional minimum wages. The
minimum wage rates for agricultural and non-
agricultural employees and workers in each
and every region of the country shall be those
prescribed by the Regional Tripartite Wages
and Productivity Boards. RTWPB (As amended
by Section 3, Republic Act No. 6727, June 9,
1989).
Art. 100. Prohibition against elimination or
diminution of benefits. Nothing in this Book
shall be construed to eliminate or in any way
diminish supplements, or other employee
benefits being enjoyed at the time of
promulgation of this Code.
Art. 101. Payment by results.
a. The Secretary of Labor and Employment
shall regulate the payment of wages by results,
including pakyao, piecework, and other non-
time work, in order to ensure the payment of
fair and reasonable wage rates, preferably
through time and motion studies or in
consultation with representatives of workers’
and employers’ organizations.
Chapter III- PAYMENT OF WAGES
Art. 102. Forms of payment. No employer shall
pay the wages of an employee by means of
promissory notes, vouchers, coupons, tokens,
tickets, chits, or any object other than legal
tender, even when expressly requested by the
employee.
Payment of wages by check or money order
shall be allowed when such manner of
payment is customary on the date of effectivity
of this Code, or is necessary because of special
circumstances as specified in appropriate
regulations to be issued by the Secretary of
Labor and Employment or as stipulated in a
collective bargaining agreement.
Art. 103. Time of payment. Wages shall be paid
at least once every two (2) weeks or twice a
month at intervals not exceeding sixteen (16)
days. If on account of force majeure or
circumstances beyond the employer’s control,
payment of wages on or within the time herein
provided cannot be made, the employer shall
pay the wages immediately after such force
majeure or circumstances have ceased. No
employer shall make payment with less
frequency than once a month.
The payment of wages of employees engaged
to perform a task which cannot be completed
in two (2) weeks shall be subject to the
following conditions, in the absence of a
collective bargaining agreement or arbitration
award:
1. That payments are made at intervals
not exceeding sixteen (16) days, in
proportion to the amount of work
completed;
2. That final settlement is made upon
completion of the work.
Art. 104. Place of payment. Payment of wages
shall be made at or near the place of
undertaking, except as otherwise provided by
such regulations as the Secretary of Labor and
Employment may prescribe under conditions
to ensure greater protection of wages.
Art. 105. Direct payment of wages. Wages shall
be paid directly to the workers to whom they
are due, except:
a. In cases of force majeure rendering such
payment impossible or under other special
circumstances to be determined by the
Secretary of Labor and Employment in
appropriate regulations, in which case, the
worker may be paid through another person
under written authority given by the worker
for the purpose; or
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 the 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
and Employment or his representative. The
representative of the Secretary of Labor and
Employment shall act as referee in dividing the
amount paid among the heirs. The payment of
wages under this Article shall absolve the
employer of any further liability with respect
to the amount paid.
Art. 106. Contractor or subcontractor.
Whenever an employer enters into a contract
with another person for the performance of
the former’s work, the employees of the
contractor and of the latter’s subcontractor, if
any, shall be paid in accordance with the
provisions of this Code.
In the event that the contractor or
subcontractor fails to pay the wages of his
employees in accordance with this Code, the
employer shall be jointly and severally liable
with his contractor or subcontractor to such
employees to the extent of the work
performed under the contract, in the same
manner and extent that he is liable to
employees directly employed by him.
The Secretary of Labor and Employment may,
by appropriate regulations, restrict or prohibit
the contracting-out of labor to protect the
rights of workers established under this Code.
In so prohibiting or restricting, he may make
appropriate distinctions between labor-only
contracting and job contracting as well as
differentiations within these types of
contracting and determine who among the
parties involved shall be considered the
employer for purposes of this Code, to prevent
any
There is “labor-only” contracting where the
person supplying workers to an employer does
not have substantial capital or investment in
the form of tools, equipment, machineries,
work premises, among others, and the workers
recruited and placed by such person are
performing activities which are directly related
to the principal business of such employer.
 In such cases, the person or intermediary shall
be considered merely as an agent of the
employer who shall be responsible to the
workers in the same manner and extent as if
the latter were directly employed by him.

Art. 107. Indirect employer. The provisions of

the immediately preceding article shall
likewise apply to any person, partnership,
association or corporation which, not being an
employer, contracts with an independent
contractor for the performance of any work,
task, job or project.

Art. 108. Posting of bond. An employer or

indirect employer may require the contractor
or subcontractor to furnish a bond equal to the
cost of labor under contract, on condition that
the bond will answer for the wages due the
employees should the contractor or
subcontractor, as the case may be, fail to pay
the same.

Art. 109. Solidary liability. The provisions of

existing laws to the contrary notwithstanding,
every employer or indirect employer shall be
held responsible with his contractor or
subcontractor for any violation of any
provision of this Code. For purposes of
determining the extent of their civil liability
under this Chapter, they shall be considered as
direct employers.

Art. 110. Worker preference in case of

bankruptcy. In the event of bankruptcy or
liquidation of an employer’s business, his
workers shall enjoy first preference as regards
their wages and other monetary claims, any
provisions of law to the contrary
notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before
claims of the government and other creditors
may be paid. (As amended by Section 1,
Republic Act No. 6715, March 21, 1989)

Art. 111. Attorney’s fees.

a. In cases of unlawful withholding of wages,

the culpable party may be assessed attorney’s
fees equivalent to ten percent of the amount
of wages recovered.

b. It shall be unlawful for any person to

demand or accept, in any judicial or
administrative proceedings for the recovery of
wages, attorney’s fees which exceed ten
percent of the amount of wages recovered.