When Work on Rest Day be Authorized?

An employer may require any of his employees to work on his scheduled rest
day for the duration of the following emergency and exceptional circumstances :

1. 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 or property, or in cases of force majeure or imminent danger to
public safety;
2. In case of urgent work to be performed on machineries, equipment or
installations, to avoid serious loss which the employer would otherwise
suffer;
3. In the event of an abnormal pressures of work due to special circumstances,
where the employer cannot ordinarily be expected to resort to other
measures;
4. To prevent serious loss of perishable goods.
5. Where the nature of the work is such that the employees have to work
continuously for seven (7) days in a week or more , as in the case of the crew
member of a vessel to complete a voyage; and
6. When the work is necessary to avail of favorable weather or environmental
conditions where performance or quality of work is dependent there on
(Sec.6 Rule 111, Book 111 Omnibus Rules Implementing Labor Code as
amended).
 No employee shall be compelled to work on rest day .

No employee shall be required against his will, to work on his

scheduled rest day except under the circumstances afore mentioned.
Provided , however that where an employee volunteered to work on
his scheduled rest day he shall express such desire in writing, subject to
the payment of an additional compensation (ibid).

 Employer-employee are not prohibited to agree for more

favorable terms.

Employers and employees are not prevented from entering into an

agreement for more favorable terms than herein provided.
Likewise, employer shall not diminish any benefit already granted to
the employees under existing laws , CBA or employer`s voluntary practice
(Sec.9, ibid).
 Holidays With Pay
 Coverage
The following are not covered with the payment of
Holidays under the Labor Code as amended:
1. Government employees.
2. Those employed in the government owned and
controlled corporation with original charter.
3. Those employed in retail and service establishment
with less than 10 employees.
4. Domestic helpers and persons in the personal service
of another.
5. Managerial employees.
6. Field personnel.
 Holidays With Pay

 Holiday pay
Every employer shall pay his employees their regular daily wage for any un-
worked regular holidays (Sec.3, ibid).
Based on Executive order No.203 issued on June 30,1987,the following are the
Regular and Special Holidays as amended by RA 9492 approved on July 25,2007:

 Regular Holidays:
1. New Year`s Day
2. Maunday Thursday
3. Good Friday
4. Araw ng Kagitingan
Bataan Day
5. Labor Day
6. Independence Day
7. National Heroes Day
8. Bonifacio Day
9. Christmas Day
10. Rizal Day
- January 1
- Movable Date
- Movable Date
- April 9
- April 9
- May 1
- June 12
- Last Sunday of August
- November 30
- December 25
- December 30
 National Special Holidays:
11. All Saint Day - November 1
12. Last Day of the Year - December 31

 Muslim Holidays:
13. Eid`l Fitr - Movable Day
14. Eid`l Adha - Movable Day

 Double Pay for Working on Holidays

Any employee who is permitted or suffered to work on any
regular holiday, not exceeding (8) hours, shall be paid at least two-
hundred percent (200%) of his regular daily wage.
If the holiday worked falls on the scheduled rest day of the
employee, he shall be entitled to an additional premium pay of at
least thirty percent (30%) of his regular holiday rate 200% based on
his regular wage (Sec.4,ibid).Hence, the employee is paid 230% for
the day.
 Overtime Pay for Holiday Work
For work performed in excess of eight (8) hours on a
regular holiday, an employee shall de paid an additional
compensation for the overtime work equivalent to his rate for
the first eight (8) hours on such holiday work plus at least
30% thereof (Sec.5,ibid).
Where the workers works on regular holiday in excess
of eight (8) hours falls on the scheduled rest day of the
employee, he shall be paid an additional compensation for
the overtime work equivalent to his regular holiday-rest day
rate for the first (8) hours plus 30% thereof.
The regular holiday-rest day rate of an employee is
200% of the regular daily wage rate plus 30% thereof
(Sec.5,ibid).
 Absences
All covered employees shall be entitled to the benefits provided
herein when they are on leave absence with pay.
Employees who are on leave of absence without pay on the day
immediately preceding a regular holiday may not be paid the required
holiday pay if he had worked on such regular holiday (Sec.6,ibid).

 Where the Day Immediately Preceding the Holiday is Non-

working Day
Where the day immediately preceding the holiday is a non-
working day in the establishment or the scheduled rest day of the
employee, he shall not be deemed to be on leave of absence on that day,
in which case he shall be entitled to the holiday pay if he worked on the
day immediately preceding the non-working day or rest day (ibid).

 Employees Who are Not Reporting for Work on Holidays

Employees shall be granted the same benefit provided herein in
terms of percentage in the form of employee’s compensation or social
security payment whichever is higher if they are not reporting for work
while availing such benefit (ibid).
 Temporary or Periodic Shutdown
In case of temporary or periodic shutdown and temporary
cessation of work of an establishment as when a yearly inventory, or when
the repair or cleaning of the machineries and equipment is undertaken,
the regular holiday falling within the period shall be compensated as
herein provided (Sec.7,ibid).

 Cessation of Operation Due to Business Reverses

The regular holiday during the cessation of operation due to business
reverses as authorized by the Secretary of Labor may not be paid by the
employer (ibid).

 Workers Paid by Result also Entitled to Holiday Pay

Where an employee is paid by result, or output, such as payment on a
piece of work, his holiday pay shall not be less than his average daily
earnings for the last seven (7) actual working days preceding the
regular holiday.
Provided , however that in no case shall the holiday pay be less
than the applicable statutory minimum wage rate (Sec.8,ibid).
 Seasonal Worker not Entitled to Holiday Pay
Seasonal workers may not be paid the required holiday pay
during off-season when they are not at work (Sec.8,ibid).
 Regular Holiday Falling on Rest Day / Sunday
A regular holiday falling on the employee’s rest day shall be
compensated accordingly.
Where a holiday falls on Sunday, the following day shall be
considered a special holiday for the purposes of the Labor Code
unless said day is also a regular holiday (ibid).
 Successive Regular Holidays
Where there are two (2) successive regular holidays, like
Holy Thursday and Good Friday, an employee may not be paid for
both holidays if he absented himself from work on the day
immediately preceding the first holiday, unless he works on the
first holiday in which he entitled to his holiday pay on the second
holiday (Sec.10).
Thus, X who was absent on Wednesday, shall not be paid on
Holy Thursday and Good Friday, unless he works on Holy Thursday
in which case he shall be paid on Good Friday.
 Service Incentive Leave
Every employee who has rendered at least one (1) year shall
be entitled to a yearly service incentive leave of five (5) days with
pay (Sec.2 Rule V Book 111 Omnibus Rules Implementing Labor
Code as amended).
 Incentive Leave Pay Commutable to Cash
The service incentive leave pay shall be commutable to its
money equivalent if not used or exhausted at end of the year
(Sec.15,ibid).
 One Year Service as Used in this Context
The term “at least one year service” shall mean service
within 12 months, whether continuous or broken reckoned from
the date the employee starting 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
employment contract is less than 12 months, in which case said
period shall be considered as one year (Sec.3, ibid).
 Service Charges
 Coverage
The rule on service charges covers only to establishments collecting
service charges such as hotels, restaurants, lodging houses, night clubs, cocktail
lounge, massage clinics, bars, casinos, gambling houses and similar enterprises,
including those entities operating primarily as private subsidiaries of the
government (Sec. 1 Rule V1 Book 111 Omnibus Rules Implementing Labor Code
as amended).
 Covered Employees
This rule applies to all employees regardless of their positions,
designation or employment status and irrespective of the method by which their
wages are paid except the managerial employees (Sec.2,ibid).
 Distribution of Service Charges
All service charges collected by covered employees shall be distributed
at the rate of 85% for the employees and 15% for the management .
The 85% shall be distributed equally among the covered employees .
The 15% shall be for the disposition of the management to answer for the losses
and breakages and the distribution of the managerial employees at the
discretion of the management in the latter case (Sec. 3, ibid).
 Frequency of Distribution
The shares referred to herein shall be distributed and paid to
the employees not less than every two (2) weeks or twice a month at
the interval of not exceeding sixteen (16) days (Sec.4,ibid).
 Facilities
The term facilities includes articles or services for the
benefits of the employee or his family but shall not include tools of
the trade or articles or service primarily for the benefit of the
employer or necessary to the conduct of the employer’s business
(Sec.5).
 Value of the Facilities
The fair and reasonable value of facilities is the cost of
operation and maintenance including adequate depreciation plus
reasonable allowance (but not more than 5.5% interest on the
depreciated amount of capital invested by the employer: provided
that if the total so computed is more than the fair rental value or fair
price of the commodities or facilities offered for sale) shall be the
reasonable cost of the operation and maintenance
The rate of the depreciation and depreciated amount
computed by the employer shall be those arrive under “ good and
accounting principles “ .
 Good accounting principles means those which are
acceptable to the BIR for income tax purposes.
Depreciation includes obsolescence (Sec.6: Memorandum
Circular 2, Nov.4, 1992).
 Acceptance of Facilities
In order to that the cost of facilities furnished by employer
may be charged against the employee , his acceptance of such
facilities must be voluntary (Sec. 5,ibid).
 Payment by Result
Payment by result is based on such determination as follows:
1. On petition of any party, or upon its initiative , the Department
of Labor shall use all available devices , including the use of
time and motion studies and consultation with the
representatives of both employers and employees, to
determine whether the employees is being compensated in
accordance with the minimum wage as herein prescribed;
2. The basis for the establishment of rates for piece output or
contract work shall be the performance of an ordinary worker
of minimum skills or ability ;
3. An ordinary worker of minimum skill or ability is the
average of the lowest producing group representing 50%
of the total member of employees engaged in similar
employment in a particular establishment, including
learners, apprentices and handicapped workers employed
therein;
4. Where the output rates established by the employer do
not conform with the standards prescribed herein , or
with the rates prescribed by the Department of Labor in
an appropriate order, the employee shall be entitled to the
difference between the amount to which they are entitled
to receive under such prescribed standards or rates and
that actually paid them by the employer (Sec. 8).
 Compressed Work Week (CWW)
This scheme is an alternative arrangement whereby the
normal work week is reduced to less than six (6) days but the total
number of normal hours per week remains at 48 hours.
The normal workday is increased to more than eight (8)
hours without corresponding overtime.
For a valid CWW, the following conditions must be
complied with:
1. It is expressly and voluntarily supported by majority of the
employees affected.
2. If work is hazardous, a certification is needed from an
accredited safely committee that work beyond eight (8) hours
is within the limits or levels of exposure set by DOLE,
occupational safety and health limit standard ; and,
3. The DOLE is clearly notified (DOLE Advisory No. 02 series of
2004).
 Travel when Considered Working Time
1. Travel from home to work
Travel from home work is not compensable since it is a
normal incident of employment.
The following however are the exceptions to the rule:
a. Where the worker is made to work on emergency call and travel is
necessary in proceeding to the work place;
b. Travel done through a conveyance provided by the employer;
c. Travel is done under the control and supervision of the employer ;
and ,
d. Travel is done under vexing and dangerous circumstances.
2. Travel that is all day`s in work
The time spent by an employees in travel as part of his principal
activity, like travel from job site to job site during the work day is
considered counted as hours worked and therefore compensable.
3. Travel away from home
Travel that keep an employee away from home overnight is
considered as worked time when it cuts across an employee’s work day
because it substitutes for the hours that the employee should have been
in the office (p.31 Memory Aid in Labor Laws and Social Legislations, San
Beda2012 ed.).
 Thirty (30) Minutes Assembly time Practice by Employees
The thirty (30) minutes assembly time practiced by employees is
not considered working time and therefore not compensable since it
cannot be deemed a “waiting time” as they are not subject to the absolute
control by employer . Otherwise failure to attend shall subject the
concerned employee to disciplinary action by the company (Arica vs.
NLRC G.R. No. 78210, February 28,2009).
 Power Interruptions
In case of power interruption the following rules apply:
1. First twenty (20) minutes is compensable;
2. Succeeding number of minutes is no longer compensable;
3. If after the lapse of the first twenty (20) minutes the employees are
required to stay in the workplace such time is considered working
time and therefore compensable.;
 Unfair Labor Practice (ULP)
Violate the constitutional rights of workers and
employees to self organization are inimical to legitimate
interest of both labor and management, including their rights
to begin collectively and otherwise deal with each other in a
atmosphere of freedom and mutual respect , disrupt
industrial peace and hinder the of healthy and stable
management relations (Art. 247, Labor Code as amended).
The civil aspects of all cases involving ULP which may
include claims for actual , oral, exemplary and other forms of
damages, attorney’s fees and other alternative relief, shall be
under the jurisdiction of Labor Arbiters.
 ULP –Its Nature
Unfair Labor Practice refers to act that violates the
workers rights to organize. The prohibited acts are related to
the workers right to self organization, and to the observance
of a Collective Bargaining Agreement (CBA).
Without said elements, the acts even if unfair are not
Unfair Labor Practice (General Santos Coca-Cola Plant Free-
Workers Union-TUPAS vs. Coca-Cola Bottlers Phil., CA and
NLRC, GR No. 178647, February 13,2009).