- Non-agricultural employees who regularly

BOOK THREE: perform their duties away from the principal

place of business or branch office of the

CONDITIONS OF
employer and whose actual hours of work in the
field cannot be determined with reasonable
certainty.

EMPLOYMENT Retail enterprise

- One engaged in the sale of goods that are
commonly bought by private individuals for
personal or household use and is characterized
TITLE I: WORKING CONDITIONS by small sales
AND REST PERIODS
Service enterprise
- Engaged predominantly in providing personal
CHAPTER 1: HOURS OF WORK service to individuals for their own or household
ARTICLE 82. COVERAGE use.
Employer is free to regulate, according to his own
FOUR FOLD TEST
judgment and discretion, all aspects of employment
1. Selection and engagement of the employer
subject to the limitations set by the Constitution, Civil
2. Payment of wages
Code, Corporation Code, and SC decisions.
3. Power of dismissal
4. Employer’s power to control the EE with respect
Two kinds of employment conditions
to the means and methods by which the work is
1. Statutoryprovided by law
to be accomplished
2. Voluntaryinitiated by the ER unilateral or by
contractual stipulation
Employer Employee
One who employs the One who is engaged in
GR: All employees in all establishments, whether for
services of others the service of another
profit or not, are covered
XPN: [GOV-MOM-WPD]
1. Government employees Kasei case “economic dependency test”
2. Field employees The two-tiered test: (1) the putative employer’s
3. Managerial employees power to control the EE with respect to the means
4. Officers and staff of the managerial office and methods by which the work is to be
5. Members of the employer’s family accomplished; and (2) the underlying economic
6. Workers on a piece-rate basis realities of the activity or the relationship.
7. Persons in the personal service of another
8. Domestic helpers The proper standard of economic dependence is
whether the worker is dependent on the alleged
Managerial employees ER for his continued employment in that line of
- Those whose primary duty consists of the business.
management of the establishment in which they
are employed or of a department or subdivision Insular Hotel Case (economic aspect)
thereof, and to other staff or members of the
The right to free collective bargaining, after all,
managerial staff.
includes the right to suspend it. To uphold the
validity of the MOA would mean the continuance of the
Conditions of managerial employees
hotel's operation and financial viability. Otherwise, the
1. Primary duty is to manage the establishment in
eventual permanent closure of the hotel would only
which they are employed or of a department or
result to prejudice of the employees, as a consequence
subdivision thereof
thereof, will necessarily lose their jobs. The Court
2. Customarily or regularly direct the work of 2 or
emphasized that collective bargaining negotiation should
more EEs therein
be undertaken in the light of the financial condition of
3. Have the authority to hire or fire other EEs of
the employer, with the peculiar intention of not merely
lower rank; or their suggestions and
promoting industrial peace but also preventing the ER’s
recommendations as to hiring, firing, and
closure.
promotion or any other change of status of
other EEs are given particular weight.
SSS v. Ubaña (legal aspect)
Determinants of being an officer or member of a [i]n legitimate job contracting, no employer-employee
managerial staff: relation exists between the principal and the job
1. Primary perform work directly related to contractor's employees. The principal is responsible to
management policies of their ER the job contractor's employees only for the proper
2. Customarily or regularly exercise discretion and payment of wages.
independent judgment
3. Does any of the following: In this case, there being no employer-employee relation
a. Regularly and directly assist a proprietor or any other definite or direct contract between
or managerial employee in the respondent and petitioner, the latter being responsible
management of the establishment to the former only for the proper payment of wages,
b. Executed, under general supervision, respondent is thus justified in filing a case against
work along specialized or technical lines petitioner, based on Articles 19 and 20 of the Civil Code,
requiring special training, experience or to recover the proper salary due her as SSS Processor.
knowledge
c. Execute, under general supervision, As to the JD
special assignments, and tasks. Not every dispute between an employer and employee
involves matters that only labor arbiters and the NLRC
Field personnel can resolve in the exercise of their adjudicatory or quasi-
judicial powers. Where the claim to the principal relief even if the employees' group is not registered with the
sought is to be resolved not by reference to the Labor DOLE.
Codeor other labor relations statute or a collective
bargaining agreement but by the general civil law, the A union refers to any labor organization in the private
jurisdiction over the dispute belongs to the regular sector organized for collective bargaining and for other
courts of justice and not to the Labor Arbiter and the legitimate purpose, while a workers' association is an
NLRC. In such situations, [resolution] of the dispute organization of workers formed for the mutual aid and
requires expertise, not in labor management relations protection of its members or for any legitimate purpose
nor in wage structures and other terms and conditions of other than collective bargaining. While every labor union
employment, but rather in the application of the general is a labor organization, not every labor organization is a
civil law. Clearly, such claims fall outside the area of labor union. The difference is one of organization,
competence or expertise ordinarily ascribed to Labor composition and operation.
Arbiters and the NLRC and the rationale for granting
jurisdiction over such claims to these agencies The existence of employer-employee relationship is not
disappears. mandatory in the formation of workers' association.
What the law simply requires is that the members of the
It is the character of the principal relief sought that workers' association, at the very least, share the same
appears essential in this connection. Where such interest. The very definition of a workers' association
principal relief is to be granted under labor legislation or speaks of "mutual aid and protection."
a collective bargaining agreement, the case should fall
within the jurisdiction of the Labor Arbiter and the NLRC, Any labor organization which may or may not be a union
even though a claim for damages might be asserted as may deal with the employer. This explains why a
an incident to such claim. workers' association or organization does not always
have to be a labor union and why employer-employee
While it is true that labor arbiters and the NLRC have collective interactions are not always collective
jurisdiction to award not only reliefs provided by labor bargaining.
laws, but also damages governed by the Civil Code,
these reliefs must still be based on an action that has a ZAMUDIO CASE
reasonable causal connection with the Labor Code, other
Pakyaw workers are considered EEs as long as the
labor statutes, or collective bargaining agreements.
employer exercises control over the means by which
Claims for damages under paragraph 4 of Article 217
such workers are to perform their work.
must have a reasonable causal connection with any of
the claims provided for in the article in order to be
Seasonal workers whose work is not merely for the
cognizable by the labor arbiter. Only if there is such a
duration of the season, but who are rehired every
connection with the other claims can the claim for
working season are considered as regular employees.
damages be considered as arising from employer-
employee relations. In the present case, Ubaña's claim
Piece-rate, boundary, and pakyaw are merely
for damages is not related to any other claim under
methods of pay computation and does not prove
Article 217, other labor statutes, or collective bargaining
whether the payee is an employee or not. The
agreements.
presence or absence of ER-EE relationship is not
determined by the basis of the employee’s
Benitez Case (social aspect) compensation.
Serious misconduct is a just cause for termination of
employment under the law. Here, Benitez's offense PAGUIO CASE
constituted a serious misconduct as defined by law. His
A regular employee is one who is engaged to perform
display of insolent and disrespectful behavior, in utter
activities which are necessary and desirable in the
disregard of the time and place of its occurrence, had
usual business or trade of the employer as against
very much to do with his work. He set a bad example as
those which are undertaken for a specific project or are
a union officer and as a crew leader of a vital division of
seasonal. Even in these latter cases, where such person
the company. His actuations during the company's
has rendered at least one year of service,
Christmas Party on December 18, 2010, to our mind,
regardless of the nature of the activity performed or of
could have had negative repercussions for his employer
whether it is continuous or intermittent, the employment
had he been allowed to stay on the job. His standing
is considered regular as long as the activity exists, it
before those clients who witnessed the incident and
not being indispensable that he be first issued a regular
those who would hear of it would surely be diminished,
appointment or be formally declared as such before
to the detriment of the company.
acquiring a regular status.

Samahan ng Mangagawa sa Hanjin The law, in defining their contractual relationship, does
Shipyard “union v. labor associations” so, not necessarily or exclusively upon the terms of their
The right to self-organization is not limited to unionism. written or oral contract, but also on the basis of the
Workers may also form or join an association for mutual nature of the work petitioner has been called upon to
aid and protection and for other legitimate purposes. perform. In short, the existence of employment
relationship is determined by law, not by
A labor organization is defined as "any union or contract.
association of employees which exists in whole or
in part for the purpose of collective bargaining or WHEN EMPLOYMENT RELATIONSHIP IS PRESENT
of dealing with employers concerning terms and
conditions of employment." A labor organization has SAMONITE v. LGSI
two broad rights: (1) to bargain collectively and (2) A fixed term employment is an employment contract,
to deal with the employer concerning terms and the repeated employment of which make for regular
conditions of employment. To bargain collectively is employment.
a right given to a union once it registers itself with the
DOLE. Dealing with the employer, on the other hand, is
a generic description of interaction between employer
and employees concerning grievances, wages, work
hours and other terms and conditions of employment,
University of the Immaculate Concepcion vehicle. The existence of an employment relation
is not dependent on how the worker is paid but
v. Office of the Secretary of Labor and
on the presence or absence of control over the
Employment means and method of the work. The amount
Law grants workers the right to organize, but it is also earned in excess of the boundary-hulog is
law that withholds this right for some reason. equivalent to wages. Since there is an ER-EE
Confidential employees should be excluded from the relationship, failure to remit the boundary is a valid
bargaining unit and be disqualified from joining any reason to suspend the driver.
union; employees should not be placed in a position
involving a potential conflict of interests.
CORPORAL CASE “BARBERS”
The barbers are employees of a barber shop if:
GREAT PACIFIC LIFE ASSURANCE (1) they worked in the barbershop owned and
CORPORATION operated by the respondents
The test therefore is whether the "employer" controls or (2) they were required to work daily and observe
has reserved the right to control the "employee" not only definite hours of work
as to the result of the work to be done but also as to the (3) they were not free to accept other employment
means and methods by which the same is to be elsewhere but devoted their full time working in
accomplished. the barber shop.
In this case, Judico received a definite minimum amount
per week as his wage known as “sales reserve”. He was Sy et al “Truck drivers”
assigned a definite place in the office to work on when Truck drivers are only employees, not partners absent
he is not in the field, was burdened with the job of any written agreement or proof that he received a share
collection, was required to make regular reports to the in the operator’s profits. There was also no proof that he
company, and for which an anemic performance would had any participation with respect to the running of the
mean a dismissal. Undoubtedly, by nature of his position business.
and work, Judico had been a regular employee of
Grepalife, and is therefore entitled to the protection of
the law and could not just be terminated without valid Makati Haberdashery “Piece-Rate
and justifiable cause. workers”
When a customer enters into a contract with the
haberdashery or its proprietor, the latter directs an
N.B. an ordinary commission insurance agent works at employee who may be a tailor, pattern maker, sewer or
his own volition or at his own leisure without fear of "plantsadora" to take the customer's measurements, and
dismissal from the company and short of committing to sew the pants, coat or shirt as specified by the
acts detrimental to the business interest of the company customer. Supervision is actively manifested in all these
or against the latter, whether he produces or not is of no aspects — the manner and quality of cutting, sewing
moment as his salary is based on his production, his and ironing.
anemic performance or even dead result does not
become a ground for dismissal. In short, an ordinary
Caurdentaan Piece Workers Union
commission insurance agent is NOT AN
EMPLOYEE of an insurance company. “Street-hired Cargadores”
FEATI UNIVERSITY CASE “SCHOOL The street-hired cargadores are employees. They
loaded, unloaded and piled sacks of palay from the
TEACHERS” warehouses to the cargo trucks and from the cargo
Professors and instructors are not independent trucks to the buyers. This work is directly related,
contractors of the schools but they are employees necessary and vital to the operations of Corfarm.
considering that a university controls the work of the Corfarm did not even allege, much less prove, that
members of his faculty. petitioner’s members have “substantial capital or
 prescribes the courses or subjects that investment in the form of tools, equipment, machineries,
professors teach, and when and where to teach and work premises, among others.” Furthermore, said
 professors' work is characterized by regularity respondent did not contradict petitioner’s allegation that
and continuity for a fixed duration it paid wages directly to these workers without the
 professors are compensated for their services by intervention of any third-party independent contractor. It
wages and salaries, rather than by profits also wielded the power of dismissal over petitioners.
 professors and/or instructors cannot substitute
others to do their work without the consent of Even if there is a waiting time, that would not negate
the university the existence of the ER-EE relationship. The continuity of
 professors can be laid off if their work is found employment is not the determining factor, but rather
not satisfactory whether the work of the laborer is part of the regular
CITIZEN’S LEAGUE OF FREE WORKERS business or occupation of the employer.
“JEEPNEY DRIVERS” Miscellaneous lessons
EE-ER relationship exists between the owner of the There is ‘labor-only’ contracting where the person
jeepneys and drivers even if the latter work under the supplying workers to an employer does not have
boundary system. The relationship between operators substantial capital or investment in the form of tools,
and drivers is different from a lessor-lessee. In the equipment, machineries, work premises, among others,
former, operators exercise supervision and control over and the workers recruited and placed by such persons
the latter. The management of the business is in the are performing activities which are directly related to the
owner’s hands. The owner must see to it that the driver principal business of such employer. In such cases, the
follows the route prescribed by the franchising authority person or intermediary shall be considered merely as an
and the rules promulgates as regards its operation. agent of the employer who shall be responsible to the
workers in the same manner and extent as if the latter
Villamaria Case “boundary-hulog” were
The juridical relationship of ER-EE is not negated by a directly employed by him.’
boundary-hulog contract considering that the operator
retained control of the conduct of the driver of the
In this arrangement, it is the corporation which is being
provided with the laborers who is considered as Work Hours of Health Personnel
employers.
GR: Health personnel are covered by the 40-hour work
week.
Maraguinot Case—“Workers in Movie XPN: The 40-hour work week is not applicable in the
Projects” following cases:
The relationship between VIVA and its producers or (1) if there is a training agreement between the
associate producers seems to be that of agency, as the resident physician and the hospital and the
latter make movies on behalf of VIVA, whose business is training program is duly accredited or approved
to "make" movies. As such, the employment relationship by the appropriate government agency
between petitioners and producers is actually one (2) In institutions which do not perform any
between petitioners and VIVA, with the latter being the diagnosis, treatment and care of patients.
direct employer.
ART. 84 HOURS WORKED
The employer-employee relationship between petitioners Activity When compensible
and VIVA can further be established by the "control Preliminary activities and Controlled or required by
test." While four elements are usually considered in postliminary activities the employee and are
determining the existence of an employment pursued necessarily and
relationship, namely: (a) the selection and engagement primarily for the
of the employee; (b) the payment of wages; (c) the employer’s benefit
power of dismissal; and (d) the employer's power to Waiting time  Integral part of
control of the employee's conduct, the most important the work
element is the employer's control of the employee's  EE is
conduct, not only as to the result of the work to be done
required/engaged
but also as to the means and methods to accomplish the
by the EE to wait
same.
 Waiting time is so
spent for the ER’s
VIVA's control is evident in its mandate that the end
benefit
result must be a "quality film acceptable to the
Working while eating  Predominantly
company." The means and methods to accomplish the
spent for the EE’s
result are likewise controlled by VIVA, viz., the movie
benefit OR
project must be finished within schedule without
 When it is less
exceeding the budget, and additional expenses must be
than 60 minutes
justified; certain scenes are subject to change to suit the
Working while sleeping Sleeping time is subject
taste of the company; and the Supervising Producer, the
to serious interruption or
"eyes and ears" of VIVA and del Rosario, intervenes in
takes place under
the movie-making process by assisting the associate
conditions substantially
producer in solving problems encountered in making the
less desirable than would
film.
be likely to exist at the
employer’s home
San Miguel Brewery Sales v. Oples On call  Be required in
“employee’s prerogatives” the place of work
An ER is free to regulate, according to his own discretion or so close
and judgment, all aspects of employment, including thereto
hiring, work assignments, working methods, time, place  Cannot use time
and manner of work, tools to be used, processes to be effectively for
followed, supervision of workers, working regulations, himself as they
transfer of EEs, work supervision, lay-off of workers and are within the call
discipline, dismissal and recall of workers. Even as the their employees
law is solicitous of the welfare of the EEs, it mus also Travel time  Emergency call
protect the right of ER to exercise what are clearly outside his
management prerogatives. regular working
hours where he is
Efforts of business to strengthen its competitiveness required to travel
may be viewed as legitimate unless violative of a to his regular
particular valid law, a valid contract, or the basic place of business
principles of justice and fairness. or some other
work site
 Done through a
Auto Bus Transport System v. Bautista
conveyance
Employees engaged on task or contract basis or paid on
provided by the
purely commission basis are not automatically exempted
ER
from the grant of incentive leave unless they fall under
 Done under the
the classification of field personnel.
supervision and
control of the ER
ART. 83. NORMAL HOURS OF WORK  Done under
The normal hours of work shall not exceed 8 hours. vexing and
What the law prescribes is the maximum, not the dangerous
minimum. circumstance
Travel that is all in a time spent in travel as
Part-time work day’s work part of the Ees principal
acitivity. (e.g. travel from
What the law regulates is work hours exceeding 8. It
job site to job site during
prescribes a maximum but not a minimum. The wage
the workday)
and the benefits of a part-timer are in proportion to the
Travel away from home  Travel that
number of hours worked.
 requires an Prangan Case
overnight stay on When an employer alleges that his employee works less
the part of the Ee than the normal hours of employment as provided for in
when it cuts the law, EE bears the burden of proving his allegation
across the ees with clear and satisfactory evidence.
workday
 Time during
corresponding ART. 85 MEAL PERIODS
work hours on GR: Meal time is not compensable
NON-working XPN:
days (1) The meal time is shortened
Lectures, meetings and  Attendance is (2) The original meal time is less than 60 minutes +
trainings within the EE’s compliance with the requisites
working hours (3) The meal time was predominantly spent for the
 Attendance is employer’s benefit
involuntary
 Employee NB if the meal time is less than 20 mins, it becomes
performs only a rest period which is considered as working time.
productive work
during such SITUATIONS WHERE THE MEAL BREAK MUST BE
attendance SHORTENED TO LESS THAN 60 MINUTES
Grievance meeting Time spent in adjusting (COMPENSIBLE) [N-16-A-P]
grievance between ER
and EEs during the time 1. Work is non-manual or does not involve
EEs are required by the serious physical exertion
ER to be on the premises 2. Establishment regularly operates not less
AND no bonafide union is than 16 hours a day
involved and no CBA 3. There is actual or impending emergencies
policy and practice to the or there is urgent work to be performed on
contrary. machineries, equipment, or installation to avoid
serious loss which the ER would otherwise
suffer; and
University of Pangasinan Faculty Union 4. Where the work is necessary to prevent
case—“Semestral Break” serious loss of perishable goods.
Semestral breaks are in the nature of work
interruptions beyond the employee’s control. The SHORTENED MEAL BREAK UPON ER’S REQUEST
duration of the semestral break varies from year to year (not compensable) [V-N-EX-V-OT-T]
dependent on a variety of circumstances affecting at 1. EEs voluntary agree in writing to a shortened
times only the private respondent but at other times all meal period of 30 mins and are willing to waive
educational institutions in the country. As such, these the OT pay for such shortened meal period
breaks cannot be considered as absences within the 2. No diminution in the salary and other fringe
meaning of the law for which deductions may be made benefits of the EEs existing before the effectivity
from monthly allowances. The "No work, no pay" of the meal period
principle does not apply in the instant case. The 3. Work does not involve strenuous physical
petitioner’s members received their regular salaries exertion and they are provided with adequate
during this period. It is clear from the aforequoted coffee breaks in the morning and afternoon
Where
provision of law that it contemplates a "no work" 4. Value from the proposed work arrangement is
situation where the employees voluntarily absent equal to or commensurate with the
themselves. Petitioners, in the case at bar, certainly do compensation due them for the shortened meal
not, ad voluntatem, absent themselves during semestral period as well as the OT pay for 30 mins as
breaks. Rather, they are constrained to take mandatory determined by EEs concerned
leave from work. For this they cannot be faulted nor can 5. OT pay will become due and demandable if they
they be begrudged that which is due them under the are permitted or made to work beyond 430 pm
law. 6. Effecitivity of the proposed working time
arrangement shall be of temporary duration as
determined by the Secretary of Labor
Luzon Stevedoring—“Work Hours of
Employment.
Seamen”
NATIONAL DEVELOPMENT COMPANY v.
A laborer need not leave the premises of the factory,
shop, or boat in order that his period of rest shall not be CIR—“Continuous Shifts”
counted, it being enough that he ceases to work, may Where work is continuous for several shifts, the
rest completely and leave or may leave at his will meal time breaks should be counted as working
the spot where actually stays working, to go time for purposes of overtime compensation. The
somewhere else, whether within or outside the idle time that an employee may spend for resting and
premises of said factory, shop, or boat. If these during which he may leave the spot or place of work
requisites are complied with, the period of such though not the premises of his employer, is not
rest shall not be counted. counted as working time only where the work is
broken or is not continuous.
Essentially, a worker is entitled to overtime pay only for
work in actual service beyond eight hours. [The correct In this case, the work is continuous and employees
criterion in determining whether or not sailors are cannot freely leave their working places nor rest
entitled to overtime pay is not whether they were on completely. The work being continuous, the meal time
board and can not leave ship beyond the regular eight breaks should be counted as working time for purposes
working hours a day, but whether they actually rendered of overtime compensation.
service in excess of said number of hours]
In short, where work is continuous for several o'clock p.m. and ends at 6:00 o'clock a.m. (Article 13,
shifts, the meal time breaks should be counted as New Civil Code.) Under the law and jurisprudence, the
working time for purposes of overtime compensation. first shift workers will have to be paid a compensation as
day workers; the second shift workers will have to be
Changing lunch break from paid to partly as day workers and partly as night workers; and
the third workers will have to be partly paid as night
unpaid workers and partly as day workers.
This is allowed because the right to fix the work
schedules of the employees rests principally on their Supposing again that the second shift workers, for some
employer. justifiable reasons, are required to extend their work
from 12:00 o'clock p.m. to 2:00 o'clock a.m. Under the
ART. 86. NIGHT SHIFT DIFFERENTIAL law, they are entitled to additional compensation for
overtime work on the basis of their wages as night
IMPORTANT THINGS TO TAKE NOTE workers. If the first shift workers were required to
1. 10% of the regular wage for each hour of work extend their work up to 8:00 o'clock p.m., is it not fair
performed between 10pm to 6 am. and logical that for the two hours they work at night
2. Where the night-time work of an EE overlaps (6:00 to 8:00) they also be paid an overtime
with overtime work, the receipt of OT pay does compensation on the basis of wages paid for night
not preclude the receipt of the NDS workers?

Mercury Drug Co case ART. 87 OVERTIME WORK

The "waiver rule" is not applicable in the case at Definition: Overtime pay refers to the additional
bar. Additional compensation for nighttime work compensation for work performed beyond eight (8)
is founded on public policy, hence the same hours a day.
cannot be waived.
 any work in excess of 8 hours within the 24-
The Mercury Drug Co., Inc., maintains a chain of hour period is considered as overtime work
drugstores that are open every day of the week and, for regardless of whether the work covers 2 calendar
some stores, up to very late at night because of the days. 24-hour period commenced from the time
nature of the pharmaceutical retail business. The the employee regularly starts to work.
respondents knew that they had to work Sundays and the work hours may broken or the EE may work
holidays and at night, not as exceptions to the rule but in different shifts in a work day
as part of the regular course of employment. Presented
with contracts setting their compensation on an annual Compelling to do overtime work
basis with an express waiver of extra compensation for GR: The EE may not be compelled to work more than 8
work on Sundays and holidays, the workers did not have hours day.
much choice. The private respondents were at a XPN:
disadvantage insofar as the contractual relationship was 1. Country is at war or any other national or local
concerned. Workers in our country do not have the emergency has been declared by Congress or
luxury or freedom of declining job openings or filing the Pres
resignations even when some terms and conditions of 2. Overtime is necessary to prevent loss of life or
employment are not only onerous and inequitous but property or in case of imminent danger to public
illegal. It is precisely because of this situation that the safety due to actual or impending emergency in
framers of the Constitution embodied the provisions on the locality caused by serious accident, fire,
social justice (Section 6, Article 11) and protection to floods, typhoons
labor (Section 9, Article I I) in the Declaration of 3. There is urgent work to be performed on
Principles And State Policies. machines, installations or equipment in order to
avoid serious loss or damage to the ER
It is pursuant to these constitutional mandates that the 4. Necessary to prevent loss or damage to
courts are ever vigilant to protect the rights of workers perishable goods
who are placed in contractually disadvantageous 5. Completion or continuation of work started
positions and who sign waivers or provisions contrary to before the 8th hour is necessary to prevent
law and public policy. serious obstruction or prejudice to the business
or operations of the ER
6. OT work is necessary to avail of favorable
NATIONAL SEMICONDUCTOR weather or envi conditions where performance
DISTRIBUTION v. NLRC case—“Burden of or quality of work is dependent thereon.
Proof”
The burden of proving payment rests on the employer.
The employee’s allegation of non-payment of NSD is a IMPPORTANT POINTS
negative allegation which need not be supported by 1. you can only work overtime and such work is
evidence unless it is an essential part of his cause of compensable upon approval of your supervisor
action. or any higher authority, otherwise you will not
be paid for the overtime work you rendered.
The burden of proving that payment of such benefit has 2. If less than 10 ang workers, apply 125% instead
been made rests upon the party who will suffer if no of 130%. 
evidence at all has been presented by either party. 3. Overtime pay in arrears retroacts to the date
when services were actually rendered.
4. Overtime pay is compensation added to regular
Naric v. Naric Workers Union—“Night wage. Regular base pay excludes money
Differential and Overtime Pay” received by an employee in different concepts.
Illustration: Workers of an industrial company work in 5. CBA may stipulate higher overtime pay rate.
three shifts: one from 8:00 o'clock a.m. to 4:00 o'clock 6. The employer has the burden of proof in proving
p.m.; another from 4:00 o'clock p.m. to 12:00 o'clock payment of statutory benefits. The employee
p.m.; and still another from 12:00 o'clock p.m. to 8:00 has the burden of proof in presenting evidence
o'clock a.m. Supposing that night work begins from 6:00 that he rendered additional service beyond the
 normal working hours and had been indeed pay is for extra work done or service rendered and (2)
rendered. whether or not the same is intended to be permanent
and regular. not contingent nor temporary and given
Days Base only to remedy a situation which can change any time.
Regular Day Regular wage (cash wage
+ facilities) WAIVER OR QUITCLAIM
Holiday, rest days, special Premium pay (regular
days wage combined with 30% GR: The right to overtime pay cannot be waived. Any
additional pay) stipulation in the contract that the laborer shall work
beyond 8 hours without additional compensation for the
extra hours is contrary to law and null and void.
Stolt-Nielsen Marine Services v. NLRC –
XPN:
Overtime work of seamen 1. alleged waiver is in consideration of benefits and
Rendition of OT work and the submission of sufficient privileges which may be more than what will
proof that said work was actually performed are accrue to them in OT pay
conditions to be satisfied before a seaman could be 2. compressed workweek arrangement
entitled to OT pay which should be computed on the
basis of 30% of the basic monthly salary. ON LACHES AND ESTOPPEL
The principles of estoppel and laches cannot be invoked
CONDITIONS OF CWW against EEs or laborers in an action for the recovery of
1. Expressly and voluntarily supported by the compensation for past overtime work.
majority of the workers affected
2. For firms using substances, or operating in ON QUITCLAIM
conditions that are hazardouse to health, health While rights may be waived, the same must not be
certification is needed form an accredited safety contrary to law, public order, public policy, morals or
organization or the firm’s safety committee that good customs or prejudicial to a third person with a right
work beyond 8 hours is within the limits of recognized by law. A quitclaim agreement is contrary to
exposure set by DOLE’s occupational safety and public policy, hence void ab initio in their entirety.
health standards
3. the DOLE regional office is duly notified.
ART. 88. UNDERTIME NOT OFFSET BY
NOTE: 12 hours rajud ang maximum hours for OVERTIME
CWW. Any work performed beyond 12 hours a Oversetting of undertime work by OT work, whether on
day or 48 hours a week shall be subject to OT the same or on another day, is prohibited by
premium. jurisprudence and by statute.

REQUISITES FOR A VALID BUILT-IN OVERTIME What can you do instead of offsetting?
PAY 1. Deduct the undertime hours from the
1. a clear written agreement knowingly and freely accrued leave but to pay the EE the overtime
entered into by the EE compensation to which he is entitled
2. the mathematical result shows that the agreed 2. If leave credits are already exhausted, his
legal wage rate and the overtime pay, computed undertime hours may simply be deducted
separately are equal or higher than the separate from his day’s wage, but he should still be
amounts legally due. paid by overtime compensation for work in
excess of 8 hours a day.
MANILA RAILROAD CASE
Q: When is overtime work compensable?
If the work performed is necessary or that it benefited CHAPTER 2: WEEKLY REST
the company or that the employee could not abandon
his work at the end of his eight-hour shift because there PERIOD
is no substitute ready to take his place and he
ART. 91-92 RIGHT TO WEEKLY REST
performed overtime service upon the order of his
immediate superior, such overtime services are DAY AND THE EXEMPTIONS
compensable despite the fact that the overtime services Page. 49 of the Golden Notes
were rendered without the approval of the Department
Head. Right to weekly rest day:
 A verbal instruction to render overtime work Every ER shall give his EEs a rest period of not less than
prevails over the memorandum prohibiting such 24 consecutive hours after every 6 consecutive normal
work. work-days.

NOTE. One cannot claim overtime pay if absent is a Persons who determine the WRD
written authority to render overtime after office hours GR: ER shall determine and schedule the WRD of his EE
during Sundays and holidays. XPN:
1. CBA
PNB v. PEMA and CIR—“Rationale” 2. Rules and regulations as the SLE provides
3. Preference of EE based on religious grounds
It is thus the additional work, labor or service employed
a. EE shall make known his preference in
and the adverse effects just mentioned of his longer stay
writing at least 7 days before the desred
in his place of work that justify and is the real reason for
effectivity of the initial rest day so
the extra compensation that he called overtime pay.
preferred
b. ER is mandated to respect the choice of
NOTE:
its EE as to their rest day based on
The basis of computation of overtime pay must be the
religion.
collective bargaining agreement. In the absence of
which, what are decisive in determining the basis for the
Emergency Rest Day Work
computation of overtime pay are two very germane
considerations, namely, (1) whether or not the additional
GR: The EE cannot be compelled by the ER to work on deemed paid if the quotient is equal to or
his rest day greater than the legal minimum rate.
XPN: 3. The entitlement to holiday pay of monthly-paid
1. In case of actual or impending emergencies employees begin on October 1984, the date of
caused by serious accident, fire, flood to prevent promulgation of the IBAA case.
lost of life and property or imminent danger to 4. Whether the month has a 30 to 31 days
public safety duration, the employee is entitled to receive the
2. Urgent work to be performed on the machinery entire monthly salary. The monthly salary shall
equipment or installation to avoid serious loss likewise be paid in the event of the declaration
which the ER would otherwise suffer of any special holiday or any fortuitous cause
3. Abnormal pressure of work due to special precluding work on any particular day.
circumstances, where the ER cannot be 5. Hourly paid teachers are not paid on
ordinarily be expected to other measures. regular holidays but they are paid on
4. Prevent loss or damages to perishable goods special public holidays and other no-class
5. Whether nature of the work requires continuous days. The no-class days contemplate of
operations and the stoppage of work may result scenarios where the classes are called off or
in separable injury ot loss to the EE shortened on account of typhoons, floods,
6. Under other circumstances analogous or similar rallies, and the like.
to the foregoing. 6. Field personnel are not entitled to holiday pay.

PREMIUM PAY ON MUSLIM HOLIDAYS

Definition: The additional compensation for work All private corp operating within Basilan, Lanao DN, DS,
rendered by the EE on days when normally he should Maguindano, North Cotabato and others shall observe
not be working such as special holidays and WRDs. the Muslim holidays.
 Excused both Muslim and Christian employees
premium pay is simply a differential pay, the pay
added to the regular pay for work within 8 hours. Muslim working outside these provinces shall also be
excused from work without dimunition or loss of salary.
CHAPTER 3: HOLIDAYS, ECOLA SHALL BE PAID EVEN ON REGULAR
SERVICE INCENTIVE AND HOLIDAY
Every employee covered by the Holiday Pay shall rule is
SERVICE CHARGES entitled to his/her daily basic wage and ECOLA.
ART. 94. RIGHT TO HOLIDAY PAY Wage order defines Wage order does not
minimum wage require ECOLA as part
Definition of holiday pay consisting of basic of the min wage or the
a one-day pay given by law to an employee even if he rate + ECOLA regular basic rate is
does not work on a regular holiday. equal to or more than
the holiday pay is equivalent to the minimum wage the min wage rate
rate=daily basic way + COLA. Must pay ECOLA May not pay ECOLA
You are entitled to HP if you were present or is in LOA
with pay on the work day immediately preceding WELLINGTON CASE
the holiday. The employee can use the 314 factor which excludes
Sunday as a working day. There is no provision of
If Sunday ang holiday, the Monday after will not be a law requiring any ER to make such adjustments in the
holiday UNLESS a proclamation is issued declaring monthly salary rate set by him to take account of legal
it a special day. holidays falling on Sundays in a given year.

Coverage of holiday pay DOUBLE HOLIDAYS

GR: All employees are entitled to holiday pay Unworked Worked
XPN: 200% of basic wage 300% of basic wage
1. Government employees
2. Retail and service establishments regularly SUCCESSIVE REGULAR HOLIDAYS
employing less than 10 workers When there are 2 successive regular holidays, an
3. Househelpers and persons in the personals employee may not be paid for both holidays if he
service of another absents himself from work on the day immediately
4. Managerial employees and its officers of preceding the first holiday unless he works on the first
members holiday in which case he is entitled to his pay on the 2 nd
5. Field personnel and other EEs whose time and holiday.
performance is unsupervised by the ER,
including those who are engaged on task or WED MAUNDY GOOD FRI ENTITLED
contract basis, purely commission basis or those TH TO
who are paid a fixed amount for performing HOLIDAY
work irrespective of the time consumed in the PAY
performance thereof. Worked RH RH Yes to both
LOA w/pay RH RH Yes to both
LOA w/o RH RH No both
pay
LOA w/o Worked RH Yes only to
IMPORTANT THINGS TO REMEMBER: pay holiday pay
1. Monthly-paid employees and daily-paid on Friday
employees are both entitled to holiday pay.
2. Even if the divisor is lower than 365, the
employee is still monthly paid and all the days of HOLIDAY PAY OF A PART-TIMER
the month including the legal holidays are If the work is partial, the pay should also be partial.
 3. Employee at the time of delivery of the child
Basis 4. He has notified his ER of the pregnancy of his
1. Regular wage per day legit spouse and the expected date of such
2. Basic wage on the working day preceding delivery.
the regular holiday
3. The average of his basic wages for the last NB. Paternity leave may be availed before or after the
7 days for EEs who are paid by results OR delivery provided that the total number of days shall not
4. Basic wage on the particular holiday, if be more than 7 days for each covered delivery.
worked.
Kind of Leave Duration Description
ART 95. RIGHT TO SERVICE Paternity Leave 7 working days Benefits
granted to a
INCENTIVE LEAVES married EE
to effectively
Important rules to remember lend support
1. EEs engaged on task or contract basis or paid on to his wife
purely commission basis are not automatically Solo Parents 7 working days Leave
exempted from the grant of SIL unless they fall Leave benefits
under the classification of field personnel. granted to a
2. SIL need not be given to employee already solo parent
enjoying vacation leave with pay of at least 5 Special Leave 2 months with full a woman Ee
days. Benefit for pay based on her having
3. SIL are mandatory, sick or vacation leaves are Women gross monthly rendered
voluntary. The grant of the latter in a private compensation continuous
enterprises results from the (1) employer’s aggregate
discretionary policy or (2) from bargaining employment
with the EEs or their representatives. service of at
4. SL/VL benefits and their conversion into cash 6 months for
are voluntary, not statutory. Entitlement to them the last 2
must be proven. months shall
be granted
this leave
Commutability of the SIL following
GR: The SIL shall be commutable to its money surgery
equivalent if not used or exhausted at the end of the caused by
year. gynecological
XPN: disorder
1. The SIL of domestic workers need not be VAWC leave 10 days in addition Granted to
converted to cash or carried over to succeeding to other paid victims of
years. leaves violence on
2. Paternity leave top of the
3. Special leave benefit for women remedy to
4. Leaves for victims of VAWC apply
protection
order against
What is the right to service incentive leave? the offender
Leave with pay wherein an employee gets paid despite employer.
absence from work.

Who are entitled? ART. 96. SERVICE CHARGES

Every covered EE who has rendered at least one year of All services charged collected by hotels, restos, and
service. similar establishment shall be distributed completely and
equally among the covered workers except managerial
Kinds of workers Right to SIL employees.
Part-time workers Full five days service
incentive leave benefit Important notes:
proportionate to the daily 1. Frequency of distribution is not less than once
work rendered and the every 2 weeks or twice a month at intervals not
regular daily salary exceeding 16 days.
On Contract workers Yes 2. If service charges are abolished, the share of
Piece-rate workers Yes (as stated in the the covered EEs shall be considered integrated
Labor Congress case) in their wages on the basis of the average
monthly share of each EEs for the past 12
MATERNITY LEAVE months immediately preceding the abolition.
Scenario Days
Live childbirth for couples 105 days
Live childbirth for solo 120 days
parent
Miscarriage and 60 days
emergency termination of
pregnancy

PATERNITY LEAVE
Conditions for entitlement to paternity leave
1. Available only for the first 4 deliveries
2. Of the legitimate spouse which he is cohabiting
 TITLE 2: WAGES the meals and snacks adequate depreciation
enjoyed by the EE plus reasonable
provided that such allowance provided that if
CHAPTER 1: PRELIMINARY deduction is authorized in the total so computed is
writing by the EEs more than the fair rental
MATTERS value, the fair rental
Remaining 30% of the value shall be the
Definition value has to be reasonable cost of the
Wages subsidized by the ER operation and
- Remuneration or earning, however designated, maintenance
capable of being expressed in terms of money,
whether fixed or ascertained on a time, task, Agricultural Industrial
piece or commission basis, or other method of Work on the soil and its Processing the harvests
calculating the same, which is payable by an ER harvests into finished products or
to an EE under a written or unwritten contract of transformed to another
employment for work done or to be done, for product
services rendered to be rendered and includes Enterprise is highly
the fair and reasonable value of board, lodging, mechanized and carries
or other facilities customarily furnished by the on processing activities
ER to the EE. not merely incidental to
purely farming operations
Statutory minimum wage
- Lowest wage rate fixed by law that an employer
can pay his workers.

Salary
- Denotes a higher degree of employment or a
superior grades or services; implies a position of
office and is suggestive of a larger and more
important service

Commission
- Recompense, compensation, or reward of an
agent, salesman, executor, trustee when the
same is calculated as a percentage on the
amount of his transactions on the profit of the
principal.

Gratuity
- Something given freely, or without recompense;
a gift; something voluntarily given in return for a
favor or services.

Facilities Supplements
Articles or items of Extra remuneration or
expenses necessary for special privileges or
the laborer’s and his benefits given to or
family’s existence and received by the EE over
subsistence so that by and above their ordinary
express provision of law, earnings or wages
they form part of the
wages and when
furnished by the ER are
deductible therefrom,
since if they are not so
furnished, they EE would
spend and pay for them
just the same

Facilities
- Include articles or services for the benefit of the
EE or his family but shall not include tools of
the trade or articles or services primarily for the
benefit of the employer or necessary to the
conduct of the ER’s business.

Requisites for deductive value of facilities

1. Proof must be shown that such facilities are
customarily furnished by the trade
2. The provision of deductible facilities must be
voluntarily accepted in writing by the EE
3. Facilities must be charged at fair and reasonable
value.

Meals and snacks Lodging facilities

ER may not deduct more The cost of operation and
than 70% of the value of maintenance including