HCA 2201: Workplace Rights & Responsibilities

• HCA 2201 Rights and Responsibilities in the Workplace for 2024-2025

Objectives

• To understand the rights of workers and the responsibilities of employers in the workplace.
• To familiarize oneself with the basic rights of workers.
• To identify the legal bases of workers' rights in the Philippines.

Salary Deduction

• A situation is presented where Marites was reprimanded and faced salary deduction for gossiping about a colleague, raising the question of whether the boss violated any labor rights.

Labor Code of the Philippines (PD No. 442)

• Established labor and social laws to protect labor.
• Promotes employment and human resources development.
• Ensures industrial peace based on social justice.

Worker’s Rights and Responsibilities

• The Department of Labor and Employment (DOLE) compiled and listed basic rights of a worker in "Rights of Employees."

Equal Work Opportunities for All

• The Labor Code of the Philippines excerpt ensures equal work opportunity regardless of gender, race, or creed.
• Republic Act No. 10911, the Anti-Age Discrimination in Employment Act, prohibits employers from discriminating based on age.
• The DOLE issued the Implementing Rules and Regulations (IRR) for this act on February 2, 2017.
• Exemptions exist where age is a bonafide job skill or a younger age could be detrimental to the worker's health, like for policemen or construction workers.

Security of Tenure

• The Labor Code of the Philippines excerpt states that every employee has security of tenure.
• Employees can only be dismissed for a just or authorized cause, and only after due process, as stated in the Labor Code of the Philippines.
• "Just Cause" covers wrongdoing committed by an employee such as stealing.
• "Authorized Cause" refers to economic circumstances not caused by the employee, for example, company bankruptcy

Work Days and Work Hours

• Employees must be paid wages for all hours worked.
• Night shift pay is required for work hours between 10:00 pm and 6:00 am, in addition to regular pay.
• Entitlement to overtime pay for work exceeding eight hours a day.
• The normal hours of work should not exceed eight hours a day as per Article 83.
• Article 84 states that "Hours worked" includes all time the employee is required to be on duty or at a prescribed workplace
• "Hours worked" includes all time the employee is suffered or permitted to work.
• Rest periods of short duration during working hours are counted as hours worked.
• Employers should give employees at least 60 minutes time-off for regular meals.
• Article 87 says work beyond eight hours can be performed if the employee is paid overtime.
• Additional compensation is equivalent to regular wage plus at least twenty-five percent (25%).
• Work on a holiday or rest day gets an additional compensation equivalent to the rate of the first eight hours plus at least thirty percent (30%).

Weekly Rest Day

• Employers should schedule a day-off of 24 consecutive hours after six days of work, following consultation with workers.
• Employers must provide a rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days.
• Employers determine and schedule weekly rest days, subject to agreements and regulations.
• Employers should respect the preference of employees for their weekly rest day when based on religious grounds.
• Where an employee works on their scheduled rest day, they must be paid an additional compensation of at least thirty percent (30%) of their regular wage.
• Additional compensation for work performed on Sunday is offered only when it is the employee’s established rest day.
• Employees with no regular workdays or rest days must be paid an additional compensation of at least thirty percent (30%) for work performed on Sundays and holidays.
• Work on any special holiday gets an additional compensation of at least thirty percent (30%) of the regular wage.
• Work on a holiday on the employee's rest day gets an additional compensation of at least fifty percent (50%) of their regular wage.
• If a collective bargaining agreement or employment contract stipulates a higher premium pay, the employer must pay that higher rate.
• Employers can require employees to work on any holiday, but must pay compensation equivalent to twice his regular rate.
• Holidays include: New Year's Day, Maundy Thursday, Good Friday, April 9th, May 1st, June 12th, July 4th, November 30th, December 25th and 30th, and general election days.

Wage and Wage-Related Benefits

• Wage is the amount paid to an employee for services rendered to their employer and may be fixed for a given period.
• Minimum wage rates are set by the Regional Tripartite Wages and Productivity Boards, as amended by Republic Act No. 6727 of June 9, 1989.

Payment of Wages

• Payment should be made directly to the employee in cash, legal tender, or through a bank.
• Wages should be given at least once every two weeks or twice a month at intervals not exceeding 16 days.
• Employers should not pay wages using promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender.
• Wages should be paid at least once every two weeks or twice a month at intervals not exceeding sixteen (16) days.
• If payment can't be made due to circumstances beyond the employer’s control, wages must be paid immediately after circumstances have ceased.
• No employer may make payment with less frequency than once a month.
• Payment of wages for tasks that can't be completed in two weeks is subject to conditions if there is no collective bargaining agreement: payments at intervals not exceeding sixteen days, proportional to work completed; and final settlement upon work completion.

Wage Deduction

• No Employer can make any deduction from the wages of employees, except:
• In cases where the worker is insured with his consent by the employer, and the deduction is to recompense the employer for the amount paid by him on the insurance.
• For union dues, in cases where the right of the worker or his union check-off has been recognized by the employer or authorized in writing by the individual worker concerned
• When the employer is authorized by law or regulations issued by the Secretary of Labor and Employment

Legal Salary Deductions

• Income Tax is a tax on a person's income, profits arising from property, profession, trade or business as specified in the Tax Code of 1997, less deductions.
• Exemption is given to employees with a monthly salary of PHP 20, 833 or less.
• Taxable income is the gross income minus any salary deductions and tax exemptions.
• Taxable Income = (Monthly Basic Salary + Overtime Pay + Holiday Pay + Night Differential) - (SSS, PhilHealth and Pag-IBIG Contributions + Tardiness + Absences)
• For an employee earning 30,000 monthly including OT pay, holiday pay, and night differential, salary deductions are:
  • SSS: 581.30
  • PhilHealth: 412.50
  • Pag-IBIG: 100
• Total deductions (assuming no tardiness or absences) = 1,093.80, making the taxable income 28,906.20 (30,000 - 1,093.80)
• Certain sources of income other than basic salary are excluded from withholding tax.
• According to BIR revenue regulations tax exempt are:
  • 13th month pay and other benefits not exceeding PHP 90,000, including Christmas bonus, loyalty award, productivity incentive bonus, etc
  • De minimis benefits [5] within the prescribed maximum amount (PHP 2,000 monthly rice subsidy, PHP 6,000 monthly uniform and clothing allowance, PHP 250 monthly medical cash allowance, etc.)
  • Non-taxable retirement benefits and separation pay
• Article 287 outlines that employees may be retired upon reaching the retirement age set in their collective bargaining agreement or employment contract.
• Where there is no formal retirement plan, the employee can retire at 60 years or more, and compulsory retirement at age 65.
• Employees must have served at least five years in the establishment to qualify for retirement pay.
• Retirement pay is equivalent to at least one-half (1/2) month salary for every year of service, with a fraction of at least six months being considered a whole year.
• Separation Pay refers to the amount given to an employee who has been terminated from service for authorized causes.
• Social Security System (SSS) is governed by R.A 11199 of 2018 increased the SSS contribution rate from 14% in 2024 to 15% in 2025 (10% employer share and 5% employee share).
• SSS covers income lost on accident of the following contingencies:
  • Sickness
  • Maternity
  • Disability
  • Retirement
  • Death
  • Funeral
• Home Development Mutual Fund (Pag-Ibig Fund) is a national savings program for affordable shelter financing for Filipino workers.
• The Pag-Ibig contribution is 2%.
• Employees earning above 5,000, the minimum contribution is 200 per month for both employer and employee.
• PhilHealth is established to provide health insurance coverage
  • Ensures affordable, acceptable, available and accessible health care services for Filipinos.
  • The contribution rate is 2.5% of the monthly basic salary, shared equally by employers and employees which make it 5% total.
• Other Legal Deductions
  • Loan Payments
  • Tardiness
  • Absences
  • Other deductions from company- specific policies.
• Article 116 states Withholding of Wages and Kickbacks Prohibited.
• It is unlawful to withhold any amount from a worker's wages or induce them to give up any part of their wages by force or without their consent.

Female Employees

• Women are prohibited from engaging in night work unless the work is allowed by the following rules:
  • industrial undertakings from 10 pm to 6 am,
  • commercial/non-industrial undertakings from 12 mn to 6 am,
  • agricultural takings at night provided that she has had nine consecutive hours of rest.
• Welfare facilities, such as separate dressing rooms and lavatories, must be installed at the workplace.
• Article 130 says Women, regardless of age, must not be employed or suffered to work:
  • In any industrial undertaking between 10 pm and 6 am.
  • In any commercial or non-industrial undertaking between midnight and 6 am.
  • In any agricultural undertaking at nighttime unless she is given nine consecutive hours of rest.
• Article 133 states that every employer must grant a pregnant woman employee who has rendered six months of aggregate service in the last twelve months a maternity leave.
• Maternity leave should be at least two weeks before the expected delivery date and four weeks after normal delivery or abortion with full pay.
• Employers can request a medical certificate stating that delivery will likely happen within two weeks.
• The maternity leave will be extended without pay if an illness arises from pregnancy, delivery, abortion or miscarriage.
• This renders the woman unfit to work, unless she has earned unused leave credits.
• Maternity leave provided in this Article shall be paid by the employer only for the first four deliveries by a woman employee after the effectivity of this Code.
• Republic Act No. 11210 increased the maternity leave period to One Hundred Five (105) Days for female workers.
• It has an option to extend for an Additional Thirty (30) Days Without Pay, and Granting an Additional Fifteen (15) Days for Solo Mothers.

Employment of Children

• The minimum employment age is 15 years of age
• Any worker below 15 years of age should be directly under the sole responsibility of parents or guardians provided that work does not interfere with the child's schooling or development.
• The minimum age of employment is 18 years for hazardous jobs, and 15 years for non-hazardous jobs.

Safe-Working Conditions

• Employers must provide workers with every kind of on-the-job protection against injury, sickness or death.
• Protection is provided through safe and healthful working conditions.
• Article 156 states that employers must keep first-aid medicines and equipment as needed, as per the Department of Labor and Employment regulations.
• Employers must train employees in first-aid treatment.
• Article 162 outlines Safety and Health Standards.
• The Secretary of Labor and Employment should set and enforce mandatory occupational safety and health standards
• These standards will eliminate or reduce occupational safety and health hazards.
• New and updated programs should ensure safe and healthful working conditions in all places of employment.

Rights to Self-Organization and Collective Bargaining

• Every worker has the right to form or join any legitimate workers' union, free from interference.
• All workers can join a union for collective bargaining and can be union members from the first day of employment.
• Collective Bargaining is a process between two parties, the employer and the union.
• The process is where the terms and conditions of employment are fixed and agreed upon.
• Collective Bargaining also involves deciding upon a method for resolving grievances
• It results in a contract called Collective Bargaining Agreement (CBA).

Termination

• Occurs when an employer irrevocably breaks its contract of employment with an employee and may be voluntary or involuntary.
• Termination of employer refers to dismissal of employees due to just or authorized causes.
• Voluntary resignation refers to the voluntary act of known dissociation from employment for personal reasons
• Article 285 lists Termination by Employee.
• An employee may terminate the employee-employer relationship without just cause with a written notice one month in advance.
• If no such notice is served, the employer may hold the employee liable for damages.
• Employees can end the relationship without notice for:
  • Serious insult by the employer or his representative on the honor and person of the employee.
  • Inhuman and unbearable treatment accorded the employee by the employer or his representative.
  • Commission of crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family
• Other similar cases.