RFBT.10 - Lecture Notes (Labor Law)

LABOR LAW
Labor code provisions dealing with hours of work, weekly rest periods,
holidays, service incentive leaves and service charges, cover all employees in
all establishments, whether for profit or not, except:
1. Government employees;
2. Field personnel;
3. Managerial employees;
4. Officers and members of the managerial staff;
5. Members of the family of the employer who are dependent on him for
support;
6. Workers paid by results;
7. Persons in the personal service of another; and
8. Domestic helpers
The aforementioned employees are not entitled to overtime pay, premium pay
for rest days and holidays, night shift differential pay, holiday pay, service
incentive leave, and service charges.
Normal Hours of Work

It shall not exceed 8 hours a day, as a rule. Outside of that, it would be
overtime and subject to additional pay, unless it pertains to health personnel
or compressed workweek situations.
Work day
Work day is the 24-hour period which commences from the time the employee
regularly starts to work.
Compressed Workweek
It is a scheme where the normal workweek is reduced to less than 6 days but
the total number of work-hours of 48 hours per week shall remain.
Hours Worked
Principles in Determining Hours Worked
1. All hours which the employee is required to give to his employer
regardless of whether or not such hours are spent in productive labor or
involve physical or mental exertion.
2. Rest period is excluded from hours worked even if employee does not
leave his workplace, it being enough that:
1. He stops working;
2. May rest completely;
3. May leave his workplace, to go elsewhere, whether within or
outside the premises of the workplace.
3. All time spent for work is considered hours worked if:
1. The work performed was necessary;
2. If it benefited the employer;
3. The employee could not abandon his work at the end of his normal
working hours because he had no replacement;
4. Provided the work was with the knowledge of his employer or
immediate supervisor.
4. The time during which an employee is inactive by reason of interruptions
in his work beyond his control shall be considered working time:
1. If the imminence of the resumption of the work requires the
employee’s presence at the place of work; or
2. If the interval is too brief to be utilized effectively and gainfully in
the employees’ own interest.
Maximum Hours of Work

Certain workers may not be required to work beyond a certain number of work
hours a day.
1. Public utility bus drivers and conductors – 12 hours per 24-hour period;
2. Movie and television industry worker/talent – shall not exceed 8 hours
in a day.
If required to work beyond 8 hours, the maximum actual hours of work shall
not exceed 12 hours in any 24-hour period;
3. Seafarers onboard ships engaged in domestic shipping – 14 hours per
24-hour period or 77 hours per 7 days.
Meal Periods
Every employer shall give his employees not less than 60 minutes or 1 hour
time-off for regular meals, which can be taken inside or outside company
premises.
Night Shift Differential

Every employee shall be paid a night shift differential of not less than 10% of
his regular wage for each hour of work performed between 10PM and 6AM.
Overtime Work, Overtime Pay

Overtime work is the service rendered in excess of and in addition to 8 hours
on ordinary working days.
Overtime pay is the additional compensation of at least 25% on the regular
wage for the service or work rendered or performed in excess of 8 hours a
day by employees or laborers in employment covered by the Eight-hour Labor
Law.
It is computed by multiplying the overtime hourly rate by the number of hours
in excess of 8.
Overtime Pay Rates
Overtime Pay Rates
Additional compensation of 25% of the

During a regular working day
regular wage
Rate of the first 8 hours worked on plus at

least 30% of the regular wage;
If done on a special holiday or rest day:
30% of 130% of regular wage
During a holiday or rest day
If done on a special holiday and rest day:
30% of 150% of regular wage
If done on regular holiday: 30% of 200%
of regular wage
In case of compressed workweek, any work performed beyond 12 hours a
day or 48 hours a week shall be subject to overtime premium.
Undertime is not Offset by Overtime

Where a worker incurs undertime hours during his regular daily work, said
undertime hours should not be offset against the overtime hours on the same
day or any other day.
Rest Periods
Every employer shall give his employees a rest period of not less than 24
consecutive hours after every 6 consecutive normal work days.
Premium Pay
It is the additional compensation for work rendered by the employee on days
when normally he should not be working such as special holidays and rest
days.
Rates of Compensation for Rest Day, Sunday, or Holiday Work
Rates of Additional
Instances
Compensation
+30% premium pay of 100%

Work on a scheduled rest day
regular wage
Work performed on Sundays and

+30% premium pay of 100%
holidays by an employee who has
regular wage
no regular workdays and rest days
Work on a Sunday (If also the rest +30% premium pay of 100%
day) regular wage
Work performed on any Special 1st 8 hours: +30% of premium pay

Holiday of 100% regular wage
Excess of 8 hours: +30% of hourly
rate on said date
1st 8 hours: +50% of premium pay

Work performed on a Special of 100% regular wage
Holiday and same day is scheduled
rest day Excess of 8 hours: +30% of hourly
rate on said date
Work performed on a Special Employee is entitled to his basic

Working Holiday rate. No premium pay is required.
Holiday Pay
It is a one-day pay given by law to an employee even if he does not work on
a regular holiday.
It is limited to the 12 regular holidays, also called legal holidays listed by law.
The employee should not have been absent without pay on the working day
proceeding the regular holiday.
Regular holidays Date
New Year’s Day January 1
Araw ng Kagitingan Monday nearest April 9
Maundy Thursday Movable Date
Good Friday Movable Date
Labor Day May 1

Independence Day June 12
National Heroes Day Last Monday of August
Eidl Fitr Movable Date
Eidl Adha Movable Date
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
Special (Non-working)
Date
Holidays
Chinese New Year Movable Date
EDSA People Power

February 25
Anniversary
Black Saturday Movable Date
Ninoy Aquino Day August 21
All Saints Day November 1

Feast of Immaculate
December 8
Conception of Mary
Last day of the Year December 31
Regular Holiday v. Special Holiday
Regular Holiday Special Holiday
Compensable, subject to
If unworked Not compensable
certain conditions
Additional 30%
Rate is 200% of the
If worked premium pay of
regular rate
100% regular wage
Limited to 12 holidays
provided in the Labor Not exclusive
Code
Rule when 2 regular holidays fall on the same day (Double Holiday
Pay)
If two regular holidays fall on the same day (i.e. Maundy Thursday or Good
Friday falling on Araw ng Kagitingan), the employees should be paid 400% of
the basic wage for both holidays provided he worked on that day or was on
leave with pay or was on authorized absence on the day prior to the regular
holiday.
13th Month Pay

It is a form of monetary equivalent to the monthly basic compensation
received by an employee, computed pro-rata according to the number of
months within a year that the employee has rendered service to the employer.
Employee should have worked for at least 1 month during a calendar year.
It should be paid not later than December 24 of every year.
Leaves
Service Incentive Leave

It is a 5-day with pay for every employee who has rendered at least 1 year of
service whether continuous or broken.
The following, however, shall not be entitled to the SIL:
1. Government employees;
2. Domestic helpers and persons in the personal service of another;
3. Managerial employees, following certain conditions;
4. Field personnel and those whose time and performance is unsupervised
by the employer;
5. Those already enjoying this benefit;
6. Those enjoying vacation leave with pay of at least 5 days; and
7. Those employed in establishments regularly employing less than 10
employees.
Maternity Leave
This benefit applies to all female workers regardless of civil status,
employment status, and the legitimacy of her child, and regardless of the
frequency of pregnancy.
Under the Expanded Maternity Leave Law, the benefits are as follows:
1. Paid leave benefit granted to a qualified female worker in the public
sector, for the duration of:
1. 105 days for live childbirth, regardless of the mode of delivery,
and an additional 15 days paid leave if the female worker qualifies
as a solo parent under RA8972; or
2. 60 days paid leave for miscarriage and emergency termination of
pregnancy.
2. Paid leave benefit granted to a qualified female worker in the private
sector covered by the SSS, including those in the informal economy, for
the duration of:
1. Same as above;
2. Full payment of SSS maternity benefit computed on their average
daily monthly salary credit; and salary differential to be paid by
the employer, if any.
3. An option to extend for an additional 30 days without pay in case of live
childbirth provided that the employer shall be given due notice in writing
at least 45 days before the end of the maternity leave, except in case
of medical emergency.
Paternity Leave
It refers to the benefits granted to a married male employee allowing him not
to report for work for 7 days but continues to earn the compensation on the
condition that his spouse has delivered a child or suffered a miscarriage for
purposes of enabling him to effectively lend support to his wife in her period
of recovery and/or in the nursing of the newly-born child. This may be availed
before or during the delivery. In the event that this is not availed of, said leave
is not convertible to cash.
Parental Leave / Solo Parent’s Welfare Act

(R.A. No. 8972)
These are leave benefits granted to a solo parent to enable him/her to perform
parental duties and responsibilities where physical presence is required.
Parental leave of not more than 7 working days every year shall be granted
to any solo parent employee who has rendered service of at least 1 year. This
shall be in addition to the legally mandated leaves, such as SIL, sick leave,
maternity leave and paternity leave.

RFBT.10 - Lecture Notes (Labor Law)

Uploaded by

Copyright:

Available Formats

RFBT.10 - Lecture Notes (Labor Law)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

RFBT.10 - Lecture Notes (Labor Law)

Uploaded by

Copyright:

Available Formats

LABOR LAW

Normal Hours of Work

Maximum Hours of Work

Night Shift Differential

Overtime Work, Overtime Pay

Overtime Pay Rates

Overtime Pay Rates

Additional compensation of 25% of the

Rate of the first 8 hours worked on plus at

Undertime is not Offset by Overtime

Rates of Compensation for Rest Day, Sunday, or Holiday Work

+30% premium pay of 100%

Work performed on Sundays and

Work performed on any Special 1st 8 hours: +30% of premium pay

1st 8 hours: +50% of premium pay

Work performed on a Special Employee is entitled to his basic

Regular holidays Date

New Year’s Day January 1

Araw ng Kagitingan Monday nearest April 9

Maundy Thursday Movable Date

Good Friday Movable Date

Labor Day May 1

National Heroes Day Last Monday of August

Eidl Fitr Movable Date

Eidl Adha Movable Date

Bonifacio Day November 30

Christmas Day December 25

Rizal Day December 30

Chinese New Year Movable Date

EDSA People Power

Black Saturday Movable Date

Ninoy Aquino Day August 21

All Saints Day November 1

Last day of the Year December 31

Regular Holiday v. Special Holiday

Regular Holiday Special Holiday

13th Month Pay

Service Incentive Leave

Parental Leave / Solo Parent’s Welfare Act

You might also like