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General Labor Standards Presentation
General Labor Standards Presentation
WAGES
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 or to be done, or for services rendered and this includes the fair and reasonable value as determined by the Secretary of Labor, of board and lodging & other facilities customarily furnished by an employer to the employee.
Who will determine the fair and reasonable value of the facilities?
Sec. 3, Rule VII-A, Book III of the IRR The Secretary of Labor and Employment, or his duly authorized representative, may from time to
Covered Workers
All Minimum Wage Earners in the private sector in the National Capital Region regardless of their position, designation or status and irrespective of the method by which their wages are paid.
Exclusions
Household or domestic helpers Persons in the personal service of another, including family driver Workers of registered Barangay Micro Business Enterprises (BMBEs) with Certificate of Authority
Exemptible Categories
Retail/ service establishments employing not more than 10 workers Distressed establishments Establishments facing potential losses Establishments with total assets (including from loans but exclusive of the land on which the particular business entitys office, plant and equipment are situated) are not more than P3,000,000.00
EXEMPTION IS FOR A MAXIMUM PERIOD OF ONE YEAR FROM EFFECTIVITY OF THE WAGE ORDER
Creditable Increase
Unorganized Establishments Increase granted within five (5) months prior to effectivity of the Wage Order shall be creditable as compliance Organized Establishments Creditability provision of the CBA will prevail In both cases: should not include anniversary, merit increase and those resulting from the regularization or promotion of employees. should the increase granted be less than the prescribed adjustment, the employer shall pay the difference.
Payment of Wages
Forms of payment legal tender, check, ATM Time of payment once every 2 weeks or twice a month at intervals of not exceeding 16 days
Payment by Results
Article 101 of LC: The Secretary of Labor shall regulate the payment of wages by results, including pakyaw, 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 the reps of workers and employers organizations. Par. (a), Sec. 8, Rule VII, Book III of the IRR: On petition of any interested party, or upon its initiative, the DOLE shall use all available resources, including the use of time and motion studies x x x x x to determine whether the employees x x x x x are being compensated in accordance with the prescribed minimum wage.
Apprentices/ Learners
Are those covered by Apprenticeship/ Learnership Program duly approved by the Technical Education and Skills Development Authority (TESDA). The applicable minimum wage should not be less than seventy five (75%) of the applicable statutory wage rates.
C. Time of Payment
Shall be paid not later than December 24 of each year. An employer, however, may give to his employees one half (1/2) of the required 13th month pay before the opening of the regular school year and the other half on or before the 24th of December of every year.
D. Formula
Total Basic Salary 12 Months
Overtime Pay
Additional compensation for work or service
of another;
Managerial employees; and Field Personnel and other employees whose time and
Regular Holidays
Regular Holidays Under Republic Act 9492 New Years Day Maundy Thursday Good Friday Eidul Fitr Araw ng Kagitingan Labor Day Independence Day National Heroes Day Bonifacio Day Christmas Day Rizal Day January 1 Movable Date Movable Date Movable Date Monday nearest April 9 Monday nearest May 1 Monday nearest June 12 Last Monday of August Monday nearest Nov. 30 December 25 Monday nearest Dec. 30
Payment:
30% based on the EEs regular wage 50% if the special day falls on the EEs rest day
Payment:
30% based on the EEs regular wage 50% if the rest day is at the same time
a special day
Daily Paid EEs: No
Meal Periods
Not less than sixty (60) minutes (not compensable) If less than sixty (60) minutes, compensable but, in no case, be less than twenty (20) minutes and only in the following cases:
1.
not
involve
2.
Operation not less than sixteen (16) hours a day; Emergencies, urgent work - to avoid serious losses; and Necessary - to prevent serious losses of perishable goods.
3.
4.
required;
voluntary;
employers discretion.
Maternity Leave
(Republic Act. No. 1161 as amended by R. A. No. 8282 otherwise known as the Social Security Law of 1997 took effect on May 24, 1997.) A female employee who has paid at least three (3) monthly contributions in the twelve-month period immediately preceding the semester of her childbirth, or miscarriage shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her average salary credit for sixty (60) days or seventy-eight (78) days in case of caesarean delivery.
Paternity Leave
Coverage
Every married male employee in the private sector shall be entitled to paternity leave
He is cohabiting with his spouse at the time she gives birth or suffers a miscarriage;
He has applied for paternity leave in accordance with company rules after notification; and His wife has given birth or suffered a miscarriage.
Retirement Pay
Coverage
Employees shall be retired upon reaching the age of 60 years or more but not beyond 65 years old.
The retirement benefits pursuant to Article 287 of the LC, as amended under RA 7641 and RA 8558 are distinct and separate from the benefits provided by the SSS law. The minimum retirement pay shall be equivalent to one-half month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.
For the purpose of computing retirement pay, onehalf month salary shall include all of the following: a. 15 days salary based on the latest salary; b. cash equivalent of 5 days of SIL; and
Retirement under a Collective Bargaining Agreement (CBA) Any employee may retire or be retired by his employer upon reaching the retirement age established in the CBA or other applicable agreement/contract and shall receive the retirement benefits granted therein; provided, however, that such retirement benefits shall not be less than the retirement pay required under RA 7641 and provided further that if such retirement benefits under the agreement are less, the employer shall pay the difference.
Coverage
Employees in all establishments and undertakings whether for profit or not.
Exception
Government employees, managerial employees, other officers or members of the managerial staff, domestic servants, non-agricultural field personnel, and members of the family of the employer.
Compressed Workweek
Is a scheme where the generally observed six (6) days workweek of eight (8) hours per day is shortened to five (5) days only. The Saturday or 6th day work may either be evenly distributed over the five (5) working days from Monday to Friday.
In the adoption of the compressed workweek, the following concurring conditions should be met:
1. The employees voluntarily agree to work more than eight hrs./day, the total in a week of which shall not exceed their normal weekly hours of work, prior to adoption of the CWW arrangements.
ContinuationCompressed Workweek
2. There will be no diminution whatsoever in the weekly or monthly take-home pay and fringe benefits of the employee.
3. If an employee is permitted or required to work in excess of his normal weekly hours of work prior to the adoption of the CWW scheme, all such excess hours shall be considered overtime work and shall be compensated in accordance with the provisions of the LC or applicable CBA.
4. Appropriate waivers with respect to overtime premium pay for work performed in excess of eight (8) hours a day may be devised by the parties to the agreement. 5. The effectivity and implementation of the new working time arrangements shall be by agreement of the parties.
ContinuationCompressed Workweek
covered by Articles 283 and 284 of the Labor Code. An employees entitlement to separation pay depends on the reason or ground for the termination of his services. An employee may be terminated for just cause i.e. gross and habitual neglect of duty, fraud or commission of a crime, and other similar causes as enumerated under Art. 282 of the Labor Code and generally may not be entitled to separation pay. On the other hand, where the termination is for authorized causes, separation pay is due.
3.
When the employee is suffering from a disease not curable within a period of six (6) months and his continued employment is prejudicial to his health or to the health of his co-employees.
In no case will an employee get less than one (1) month separation pay if the separation is due to the above stated causes, and he has served for at least six months.
Thus, if an employee had been in the service for at least six (6) months but less than a year, he is entitled to one (1) full months pay if his separation is due to any of the causes enumerated above. Service of one year and above entitles the employee month pay for every year of service, a fraction of at least 6 months considered one year.
B. One (1) month pay per year of service An employee is entitled to separation pay
equivalent to
of service, a fraction of at least six (6) months being considered as one whole year, if his separation from service is due to any of the following: a. Installation by employer of labor-saving devices. b. Redundancy, as when the position of the employee has been found to be surplusage or unnecessary in the operation of the enterprise.
c. Impossible reinstatement of the employee to his former or to a substantially equivalent position for reasons not attributable to the fault of the employer, as when the reinstatement ordered by a competent authority cannot be implemented due to closure or cessation of operations of the establishment/ employer, or the position to which he is to be reinstated no longer exists and there is no substantially equivalent position in the establishment to which he can be assigned (per Supreme Court Decision).
Philippines.
Copy of the AEP, if employing aliens shall be
to submit to the Natl. Wages and Productivity Board a list of their employees and the
corresponding
information
like
length
of
Office the required contribution to the PAG-IBIG Fund Office as provided by law.
Relationship between Core Labor Standards, ILO Conventions, International and National Legislation/ Practice
ILO Conventions on
1.
2. 3. 4.
Elimination of discrimination in respect of employment and occupation; ILO convention 100 & 111
Source: ILO Handbook on Core Labor Standards
2.
3. 4.
Employment Promotion
Minimum Wages Social Security
5.
6. 7.
Labor Administration
Protection of Migrant Workers Working Hours for Young Workers
8.
9.
Industrial Relations
Specific Economic Sectors.
Source: ILO Handbook on Core Labor Standards
National Legislation
1. 2. 3. Labor Code of the Philippines Occupational Safety and Health Standards R.A. 9231 for the elimination of worst forms of Child Labor and affording stronger protection for the working child 4. R.A. 6275 for strengthening the prohibition on
1.
2. 3.
4.