2nd Year Manresa

Labor Relations
SY 2024-2025
 STATUTORY CLASSIFICATION OF EMPLOYEES

❑ The Labor Code classifies employees in the following manner:

1.) Managerial;
2.) Supervisory; and
3.) Rank-and-file.*

*Article 219(m) of the Labor Code.

 STATUTORY CLASSIFICATION OF EMPLOYEES

❑ Managerial Employees
➢ Managerial employees are those vested with powers or
prerogatives to lay down and execute management
policies and/or hire, transfer, suspend, lay-off, recall,
discharge, assign, or discipline employees.
❑ Supervisory Employees
➢ Supervisory employees are those who, in the interest of
the employer, effectively recommend managerial actions if
the exercise of such authority is not merely routinary or
clerical in nature but requires the use of independent
judgment.

*Article 255 of the Labor Code: Re Managerial vs Supervisory Eligibility to form

a labor organization.
 STATUTORY CLASSIFICATION OF EMPLOYEES

❑ Rank-and-file Employees
➢ Rank-and-file employees are those who are neither
managerial nor supervisory. They can either be daily-paid
or monthly-paid.
➢ Daily-paid employees are those who are paid only on the
day/s they actually worked and on unworked regular
holidays. Monthly-paid employees are those who are paid
every day of the month, including unworked rest days,
special holidays, and regular holidays.
 STATUTORY CLASSIFICATION OF EMPLOYMENT

❑ The Labor Code classifies employment in the following

manner:

1.) Regular employment;

2.) Non-regular employment; and
3.) Casual employment.*

*Article 295 of the Labor Code.

 STATUTORY CLASSIFICATION OF EMPLOYMENT

❑ Regular Employment
➢ Regular employment is a job where the employee was
engaged to perform activities necessary or desirable in the
usual business or trade of the employer.
 STATUTORY CLASSIFICATION OF EMPLOYMENT

❑ Non-regular Employment
➢ Regular employment is a job where the employee was
engaged for a specific period or undertaking, for a
particular season, for a trial period, or for an activity that
is not usually necessary or desirable to the business or
trade.

It may be classified into:

1.) Project employment;
2.) Seasonal employment;
3.) Fixed-term employment;
4.) Probationary employment; and
5.) Casual employment.
 CLASSIFICATION OF NON-REGULAR EMPLOYMENT

❑ Project Employment
➢ Project employment is a job where the employee was
engaged for a specific undertaking, the completion or
termination of which has been determined at the time of
the engagement.

❑ Seasonal Employment
➢ Seasonal employment is a job where the employee was
engaged to work during a particular season.

❑ Fixed-term Employment
➢ Fixed-term employment is a job where the parties by free
choice have assigned a specific date of termination.
 CLASSIFICATION OF NON-REGULAR EMPLOYMENT

❑ Probationary Employment
➢ Probationary employment is a job where the employee
upon his engagement, is made to undergo a trial period to
enable the employer to determine his fitness for regular
employment on the basis of reasonable standards made
known to him at the time of engagement.*

❑ Casual Employment
➢ Casual employment is a job where the activities performed
by the employee are not usually necessary or desirable in
the usual business or trade of the employer.

*Article 296 of the Labor Code: shall not exceed 6 (six) months.
 WHY IS IT IMPORTANT TO DETERMINE THE
CLASSIFICATION OF EMPLOYMENT?

ANSWER: SECURITY OF TENURE

➢ Regular employee = services cannot be terminated except

for just or authorized causes.*

*Article 294 of the Labor Code.

 Private Sector
vs.
Government Sector
 Private Sector Government Sector
Overtime pay refers to the Overtime Pay—This is cash
payment for work performed
Overtime additional compensation for work
performed beyond eight (8) hours a by an employee beyond the
Pay regular working hours in a
day.
day, and those performed on
• Labor Code: Art. 87. Overtime rest days, holidays and
work. Work may be performed nonworking days.
beyond eight (8) hours a day
provided that the employee is • CSC and DBM Joint Circular
paid for the overtime work, an No. 2 s. 2015: Sec. 9.4 The
additional compensation Overtime Pay shall be 125%
equivalent to his regular wage or 1.25 of HR (Hourly Rate)
plus at least twenty-five percent on a scheduled workday. It
(25%) thereof. Work performed shall be 150% or 1.5 of HR
beyond eight hours on a holiday on a rest day or scheduled
or rest day shall be paid an day off, holiday, or special
additional compensation non-working day.
equivalent to the rate of the first
eight hours on a holiday or rest
day plus at least thirty percent
(30%) thereof.
 Government Sector

• As a general rule, the remuneration for overtime

Overtime Pay
services shall be through CTO (Compensatory Time
Off), in accordance with the guidelines under the
CSC-DBM Joint Circulars No. 2, s. 2004 and No. 2-
A. s. 2005.

• The payment in cash of overtime services through

Overtime Pay may be authorized only in exceptional
cases when the application of CTO for all overtime
hours would adversely affect the operations of the
agency.
 Private Sector Government Sector
• Night-Shift Differential – This
premium is given to an
Night Shift • Labor Code:
Art. 86. Night shift employee whose regular
Differential working hours fall wholly or
differential. Every employee
shall be paid a night shift partially within six o’clock in the
differential of not less than evening to six o’clock in the
ten percent (10%) of his morning of the following day.
regular wage for each hour
of work performed between Budget Circular No. 8 s. 1995:
ten o’clock in the evening 4.1 Night shift Differential Pay -
and six o’clock in the Compensation premium granted to
morning. government personnel whose
regular working hours fall wholly
or partly within 6:00 PM to 6:00
AM of the following day.

5.1 Night-shift differential pay may

be granted to government
personnel at a rate not exceeding
20% of the hourly basic rate of the
employee.
 Private Sector Government Sector
Mid-Year Bonus and Year-End Bonus
Thirteenth Presidential Decree No. • Year-End Bonus and Cash Gift –
851 This is equivalent to one (1) month
-month
pay basic salary and Cash Gift provided
• The thirteenth-month under Republic Act No. 6686, as
pay shall not be less amended by Republic Act No.
than one-twelfth (1/12) 8441. Henceforth, the year-end
of the total basic salary bonus and other cash gifts shall be
earned by an employee funded from the annual general
in a calendar year. The appropriations. (shall be given in
thirteenth - month pay November of every year)
should be given to the
employees not later • DBM National Budget Circular No.
than December 24 of 579 (January 24, 2020)
every year. Xx the Mid-Year Bonus equivalent to
one (1) month basic salary as of May
15 of a given year xxx to be given not
earlier than May 15 of every year,
subject to the rules and regulations
provided under BC No. 2017-2 5
dated May 8, 2017.
 Private Sector Government Sector
Item (4)(h)(ii)(aa) of the Congress Joint
Additional incentives and Resolution (JR) No. 4, s. 2009,
CBA institutionalizes the grant of the CNA
compensation may be
vs stipulated in the Incentive as a form of reward to motivate
Collective Bargaining employee efforts toward higher
CNA Agreement (CBA). productivity, to wit:

Note: In the private • (aa) Collective Negotiation Agreement

sector, the term CBA is (CNA) Incentive -This may be granted
used. On the other hand, to both management and rank-and-
CNA is the term used in file employees of agencies with
the government sector. approved and successfully
implemented CNAs in recognition of
their efforts in accomplishing
performance targets at lesser cost, in
attaining more efficient and viable
operations through cost-cutting
measures and systems improvement,
such CNA incentive shall be provided
for under the annual General
Appropriations Act.
 Private Sector Government Sector
Overtime Pay Rate: Rate:
Regular Work Day = Plus Regular Work Day = Plus 25%
25% Other Days = Plus 50%
Other Days = Plus 30% Note: General Rule is to apply
the CTO (Compensatory Time
Off). Payment of overtime pay
is an exception.
Nightshift Period/Time Covered: Period/Time Covered:
Differential 10pm to 6am 6pm to 6am
Rate: not less than 10% Rate: not exceeding 20%

Other Additional Incentives Collective Negotiation

Incentives may be stipulated under Agreement (CNA) Incentive
the Collective Bargaining Amount: shall not exceed
Agreement (CBA) P25,000
Amount: no limit
-End of Presentation-