Labor Standards Law: Conditions of Employment PDF

LABOR STANDARDS LAW CONDITIONS OF EMPLOYMENT All employees in all establishments which are for profit or not, are covered by the Law on Labor Standards. Who are the excluded employees? 1. Government employees 2....

LABOR STANDARDS LAW CONDITIONS OF EMPLOYMENT All employees in all establishments which are for profit or not, are covered by the Law on Labor Standards. Who are the excluded employees? 1. Government employees 2. Managerial employees 3. Managerial staff 4. Members of the family of the employer who are dependent on him for support 5. Domestic servant and persons in the service of another 6. Workers paid by result 7. Non-agricultural employees (field personnel) if they regularly perform their duties away from the principal or branch office or place of business of the employer whose actual hours of work in the field cannot be determined with reasonable certainty. Who are government employees? Government employees refer to employees of government agencies, of the political subdivisions of the national government, of government instrumentalities, and of government corporations that are not incorporated under the Corporation Code because they are governed by the Civil Service Laws. Who are managerial employees? An employee is a managerial employee if he meets all the following conditions: 1. His primary duty consists of the management of the establishment in which he is employed or a department or subdivision thereof; 2. He customarily and regularly directs the work of two or more subordinate employees; 3. He has the authority to hire or fire other employees of lower rank; or make suggestions and recommendations as to the hiring, promotion, termination or any other change of status of employees; Who are considered as managerial staff? 1. One whose primary duty consists of the performance of work directly related to carrying out the management policies of the employer; 2. One who customarily and regularly exercises discretion and independent judgment when; a. Regularly and directly assisting a proprietor or a managerial employee; b. Executing under general supervision work along specialized or technical lines requiring special training, experience or knowledge; or c. Executing under general supervision, special assignments and tasks; 3. One who does not devote more than 20% of their hours worked in a work week activities which are not directly or closely related to the performance of work described in paragraphs 1, 2 and 3 above. HOURS OF WORK What are the compensable hours? Compensable hours worked shall include: 1. All the time during which an employee is required to be on duty or to be at the prescribed workplace 2. All the time during which an employee is suffered or permitted to work. What are the normal work hours of an employee? The normal work hours of an employee shall not exceed 8 hours a day for six days for a total of not more than 48 hours in a work week. 1. Health personnel: For health personnel in cities and municipalities with a population of at least 1 million or in hospitals and clinic with a bed capacity of at least 100. Regular office hour shall be 8 hours a day for 5 days a week, or 40 hours a week, exclusive of time for meals. In case of exigencies, they may work for six days or for 48 hours, but they shall be entitled to an additional compensation of at least 30% of their regular wage for work performed on the 6th day. 2. Compressed Work Week. Refers to a situation where the normal workweek is reduced to less than six days but the total number of work hours of 48 hours a week remains. Meal Break Rules on meal periods 1. Meal periods should not be less than sixty minutes. Meal time is not compensable except in cases where the lunch period or meal time is predominantly spent for the employer’s benefit or where it is less than sixty minutes. 2. Meal period maybe less than 60 minutes, but should not be less than 20 minutes and the shortened mealtime must be with full pay, under the following instances: a. Where the work is non-manual work in nature or does not involve strenuous physical exertion b. Where the establishment regularly operates not less than 16 hours a day; c. In cases of actual or impending emergencies or there is a urgent work to be performed on machineries, equipment or installation to avoid serious loss which employer would suffer; and d. Where the work is necessary to prevent serious loss of perishable goods. 3. If less than 20 minutes, it becomes only a rest period and is considered as work time are considered as not compensable working time provided the following conditions are complied with; a) The employees agree in writing to a shortened meal period of thirty minutes and are willing to waive overtime pay for such shortened meal period; b) There should be no diminution of the benefits of the employees which they receive prior to the effectivity of the shortened meal period; c) The work of the employees does not involve strenuous physical exertion and they are provided adequate coffee breaks in the morning and afternoon d) The value of the benefits derived by the employees from the proposed work arrangement is equal or commensurate with the compensation due them for the shortened meal period as well as the overtime pay for 30 minutes as determined by the employee concerned. Night Shift Differential Night Shift differential is equivalent to 10% of employees’ regular wage for each hour of work performed between 10:00 pm and 6:00 am of the following day; Coverage: 1. Government Employees, whether employed by the National Government or its political subdivisions, including those employed in government owned and controlled corporations with original charters 2. Those of retail and service establishments regularly employing not more than 5 workers 3. Kasambahay and persons in the personal service of another 4. Managerial employees 5. Managerial staff Computation of Night Shift Differential 1) When the night shift is regular work a. On a regular day. Plus 10% of the basic hourly rate b. On a rest day, special holiday or regular holiday. Plus 10 % of the regular hourly rate 3. When the night shift is overtime work. a. On an ordinary day: Plus 10% of the overtime hourly rate on an ordinary day b. On a rest day or a special holiday: Plus 10% of the overtime hourly rate on a rest day or special holiday or regular holiday. 4. For overtime work in the night shift. Since overtime work is not usually eight hours, the compensation for overtime night shift work is also computed on the basis of the hourly rate. a. On an ordinary day. Plus 10% of 125% of basic hourly rate or a total of 110% of 125% basic hourly rate b. On a rest day or special holiday or regular holiday. Plus 10% of 130% of regular hourly rate on said days or a total of 110% of 130% of the applicable regular hourly rate Overtime Work Work rendered after or beyond the normal eight hours of work is called overtime work Emergency Overtime Work The general rule is that no employee maybe compelled to render overtime work against his will. The following are the exceptions when the employee maybe compelled to render overtime work; 1. When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive 2. When overtime work is necessary to prevent loss of life or property in case of imminent danger to public safety due to actual or impending emergency in the locality cause by serious accident, fire, floods, typhoons, earthquake, epidemic or other disasters or calamities; 3. When there is urgent work to be performed on machines, installations or equipment, or in order to avoid serious loss or damage to the employer or some other causes of similar nature. 4. When the work is necessary to prevent loss or damage to perishable goods 5. When the completion or continuation of work started before the 8 hour is necessary to prevent serious obstruction or prejudice to the business operations of the employer. 6. When overtime work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent. What are the rates of overtime pay corresponding to the day by which overtime work is performed? Overtime work performed on Overtime Pay Ordinary day - Plus 25% of the basic hourly rate Rest day or on a special holiday - Plus 30% of the basic hourly rate which includes 30% additional compensation Rest day which falls on a special holiday - Plus 30% of the basic hourly rate which includes the 50% additional compensation Regular holiday - Plus 30% of the basic hourly rate which includes the 100% additional compensation Rest day which falls on a regular holiday - Plus 30% of the basic hourly rate which includes 160% of the additional compensation Can an employer offset an employee undertime by overtime? No. Undertime work performed on any particular day shall not be offset by overtime work on any other day. (Labor Code, Art. 88) Weekly Rest Periods It is a rest period of not less than 24 consecutive hours after every six consecutive normal work days (Labor Code, under Art. 91) Note: All establishments and enterprises may open for business on Sundays and holidays provided that the employees are given the weekly rest day and the benefits provided for by the law. Can the employer require its employees to work on a rest day? General Rule: No, the employer may not require employees to work on a rest day. Exceptions 1. In cases of urgent work to be performed on the machinery, equipment or installation; 2. To prevent loss or damage to perishable goods; 3. In case of actual or impending emergencies caused by force majeure to prevent loss of life and property  or imminent danger to public safety 4. Where the nature of the work requires continuous operations and the stoppage of work may result irreparable injury or loss to the employer 5. In the event of abnormal pressure of work due to special circumstances, where the employer cannot be ordinarily be expected to resort to other measures; and 6. Under other circumstances analogous to the foregoing as determined by the Secretary of Labor and Employment; HOLIDAYS What are the legal holidays? Under the Administrative Code of 1987 of E.O No. 292, as amended by RA No. 9849, unless otherwise modified by law, order or proclamation, the following are the regular holidays in a year; 2023 Regular Holidays January 1 Sunday New Year’s Day April 6 Thursday Maundy Thursday April 7 Friday Good Friday April 10 Monday Day of Valor (Araw ng Kagitingan) April 21 Friday Eid'l Fitr (Feast of Ramadhan) May 1 Monday Labor Day June 12 Monday Independence Day June 28 Wednesday Eid'l Adha (Feast of Sacrifice) August 28 Monday National Heroes Day November 27 Monday Bonifacio Day December 25 Monday Christmas Day December 30 Saturday Rizal Day Who are excluded from the payment of holiday pay? 1. Government Employees 2. Managerial Employees 3. Field personnel 4. Domestic helpers, persons in the service of another 5. Officers or members of the managerial staff 6. Employees of retail establishments regularly employing not more than 10 workers. What is the rule in case two regular holidays fall on the same day? The covered employee is entitled to at least 200% of his daily wage even if said day is unworked. Where the employee is required to work on that day, he she is entitled to an additional 100% of the daily wage. Thirteenth Month Pay What is a 13th month pay? Thirteenth month pay shall mean the twelfth (1/12) of the basic salary of an employee earned within a calendar year. What is the nature of a 13Th month pay. The payment of the 13th month pay is a statutory grant, and compliance therewith is mandatory. This benefit is deemed written in all CBA. When shall 13th month pay be paid? 1. The employer may give his employees ½ of the required 13th month pay before the opening of the regular school year and the other half on or before the 24th of December every year. 2. If otherwise provided in the CBA 3. If otherwise provided in any other agreement. Who are excluded from the coverage of the 13th month pay? The following are excluded from the coverage of the 13th month pay law: 1. Distressed employees such as: a. Those which are currently incurring substantial losses b. In case of non profit institutions where their income has consistently declined by more than 40% 2. The government and any of its political subdivisions, including GOCCs 3. Employers already paying their employees 13th month pay or more in the calendar year or its equivalent at the time of its issuance 4. Employees who are paid on a. Purely commission basis b. Boundary basis c. Task basis d. At fixed amount for performing a specific work. References: Azucena. 2019. Everyone’s Labor Code. DATE Holiday 1 January 2024 New Year’s Day 28 March 2024 Maundy Thursday 29 March 2024 Good Friday 9 April 2024 Araw ng Kagitingan 10 April 2024 Eid’l Fitr (Feast of Ramadhan) 1 May 2024 Labor Day 12 June 2024 Independence Day 17 June 2024 Eid'l Adha (Feast of Sacrifice) 26 August 2024 National Heroes Day (Last Monday of August) 30 November 2024 Bonifacio Day 25 December 2024 Christmas Day 30 December 2024 Rizal Day