Overtime Pay Computation on Regular and Special Holidays Quiz

Prohibitions in Labor Laws

• It is prohibited to require deductions or deposits from employees to reimburse for loss or damage to tools, materials, or equipment supplied by the employer.
• Article 117 of the Labor Code prohibits requiring or making deductions from wages for the benefit of the employer or representative as consideration for employment or continuation of employment.

Alien Employment Permit (AEP)

• AEP is a document issued by the DOLE Secretary, authorizing a foreign national to work in the Philippines.
• All foreign nationals intending to engage in gainful employment in the Philippines must apply for AEP.
• Gainful employment refers to a state or condition that creates an employer-employee relationship.

Exemptions from AEP

• Members of the diplomatic service and foreign government officials accredited by the Philippine government with reciprocity arrangement.
• Officers and staff of international organizations with which the Philippine government is a member, and their legitimate spouses desiring to work in the Philippines.

Overtime Work and Holiday Pay

• If an employee works in excess of eight hours on a regular holiday, they shall be paid an additional 30% of their hourly rate on said day.
• If an employee works in excess of eight hours on a special day that falls on their rest day, they shall be paid an additional 30% of their hourly rate.

Effects of Absences on Holiday Pay

• Employees on leave of absence with pay are entitled to holiday pay.
• Employees on leave of absence without pay on the day preceding the regular holiday may not be paid the required holiday pay.
• Employees on leave while receiving SSS or employee's compensation benefits are entitled to a percentage of holiday pay equal to the benefit granted.

Premium Pay for Special (Non-Working) Days

• If the employee did not work, the "no work, no pay" principle applies, unless there is a fixed period.
• Worked on an employee's regular workday: 200% for the first 8 hours and plus 30% for work in excess of 8 hours.
• Worked on an employee's rest day: 100% for the first 8 hours and plus 30% for work in excess of 8 hours.

Managerial Employees

• Managerial employees are specifically excluded from labor law coverage.
• Managerial employees refer to those vested with powers or prerogatives to lay down and execute management policies or hire, transfer, suspend, lay-off, discharge, assign or discipline employees.

Wages and Deductions

• Wages should be paid not less often than once every two weeks or twice a month at intervals not exceeding sixteen days.
• Permissible deductions include reimbursement for loss or damage to tools, materials, or equipment supplied by the employer; agency fees from non-union members; premiums for SSS, PhilHealth, employees' compensation, and Pag-IBIG; and withholding tax under the National Internal Revenue Code (NIRC).