ASUNTO LEGAL SHOW

PROGRAM FLOW
ISSUE OF THE DAY: LABOR CODE OF THE

VS/ TECHNICAL

PHILIPPINES / PRESIDENTIAL DECREE NO. 442,

SUPPORT

AS AMENDED LABOR STANDARDS

SET 1
TOPIC : INTRODUCTION
TIME: 4:00- 4:15pm
INTRO:
1. Recap of the Last Episode
2. Introduction of the next topic (guide)

May 1 has always been devoted for the annual

celebration of the Labor Day. The Labor Day is listed
as one of the countrys 18 national holidays for
2015 based upon the Presidents Proclamation No.
831 signed by Pres. Aquino last year.

PRESIDENT
PROCLAMATION NO. 831

According to the Philippine History, the first

Labor Day celebration was held in the Philippines
on May 1, 1903 in a mammoth rally in front
of Malacaan Palace staged by the Union Obrera

MAY 1, 1903

Democratica but the first celebration of Labor day

that has been recorded is as early as 1894 in United
States and Canada.
For a lot of people, Labor Day means simply
as day-off from work. But there are greater reasons
beyond that. To simply put it, Labor day is a day set
aside to pay tribute to working men and women
who serve as one of the great pillars of our
country.
Thats why in todays episode, we are
dedicating it to the working class. We will discuss the
important features of the Labor code of the Philippines
and hopefully educate our modern heroes about their
rights under the law specifically covering Labor
Standards.
Some Preliminary Consideration - Branches of

PRESIDENTIAL DECREE
NO. 442, AS AMENDED,
KNOWN AS THE LABOR
CODE OF THE
PHILIPPINES

Labor Law
a. Labor Standard- covers monetary benefits
and safety and health (focus this episode)
b. Labor Relations- Employee-Employer
relations as well as Union Relations (next
episode)
3. What is Labor Standards?
Its the minimum requirements prescribed by
existing laws, rules and regulations, and other
issuances relating to labor and occupational safety
and health
standards.
4. 3 rules in labor standards
a. You cant give below the standard
b. You can give above the standard
5. What are the different monetary benefits
under the law? (Explain this later)
a. Minimum wage
b. Premium pay
c. Night Shift differential
d. Service Incentive Leave
e. Paternity Leave
f. VAWC Leave
g. 13th Month pay
h. Retirement pay
i. Philhealth benefit*
j. Pagibig Benefit*
k. Social Security Benefit*
l. Holiday pay
m. Overtime pay
n. Service Charges
o. Maternity leave
p. Solo parents leave
q. Special leave for women
r. Separation pay
s. Compensation Benefit* (ECC)
6. What are the basic labor rights?
(Explain briefly)
a. Living wage through monetary benefits
b. Humane conditions of work
c. Security of Tenure
d. Collective Bargaining
i.
Self-organization

ii.
Freedom of Expression
iii.
Strike
7. Whos covered by Labor Law?
The law only applies when there is employer-employee
relationship that exists and most specifically, it applies
only to the Private Sector.
Non-employees Partners, Agents, Ind. Contractors,
Job Contractors, Freelancer, Consultants, corporate
officers, Cooperative members, volunteers, interns.
8. Test to determine Employment
(Please explain briefly)
The Four (4) fold test is used namely;
a. The power to hire
b. The power to fire
c. The payment of compensation
d. Control-most important among the four
9. What are the kinds of employees?
A. PRIVATE SECTOR
i.
Regular
ii.
Casual
iii.
Probationary
iv.
Contractual
UP NEXT: After the break, we will discuss about the
mandated minimum wage and hours of work provided
by the law and as well as to whom it is applied. We will
also answer some of the common questions our
televiewers have in their mind with regards to other
monetary benefits that they are entitled to get.
SET 2
TOPIC : MINIMUM WAGE, HOURS OF WORK,
OVERTIME AND UNDERTIME PAY, HOLIDAY PAY
AND REST DAYS
TIME 4:15-4:30 PM
10.
11.

What is Minimum wage?

What mandates the observance of

Minimum Wage?
RA6727 as amended by RA8188 which provides
that non observance will be punishable of the
following penalties:
a. Imprisonment of 2 to 4 years without
probation benefits
b. Fine of 25 k to 100k

Article 99. Regional

minimum wages.
RA6727, as amended by
RA 8188

c. Plus double indemnity paid to the workers

12.

Who are covered in the Minimum

Wage?
All private sector employees , except;
i.
Govt employees
ii.
Domestic workers under ra10361
iii.
Personal assistants (family driver)
iv.
Barangay microbusiness enterprises
under RA9178
13.

Minimum wage applied in special

circumstances
Flexible Work Arrangements DA. No. 2 (S.
2009)
a.
b.
c.
d.
e.
f.
14.

Compressed work week

Reduction of work days
Rotation of workers
Forced leave
Broken time schedule
Flexi-holidays schedule
What if I have complains re: the

violation of such mandate?

Single Entry Approach , RA 10396/ DO No. 107
(S. 2010) provides that conciliation and mediation
of labor cases by frontline DOLE offices regardless
of whether they have jurisdiction or not.
-Anonymous complaints are allowed
-There is confidentiality of proceedings
15.
What are the rules concerning Wages?
a. No Wage Distortion
- What is Across the board wage increase?
b. Must be paid in legal currency at or near the
workplace. Frequency: 2x/month not
exceeding 16 days interval.
c. There may be wage deduction on the

16.

Article 102. Forms of

payment.

following grounds:
-mandatory : allowed by law
-non-mandatory written authorization

Article 103. Time of

needed
Labor Standards updates in the city:

payment.

payment.
Article 104. Place of

a. Region 9 a 13.00/day wage increase for

Article 105. Direct

payment of wages.

all industries and categories

(267.00+13=P280.00) issued on May 6,
2013, published on May 26, 2013 at
Zambo Today and Mindanao Observer and
took effect on June 10, 2013
i.

Those who are exempted are :

a. Distressed establishment
b. Retail/service establishments regularly
employing less than 10 workers.

To check for the latest and other minimum wage

of other region, check the National Wages and
Productivity Commission (NWPC) website. Each
region have their own Wage order :
www.nwpc.dole.gov.ph
17.

Who are covered in the rules of hours

of work?
All employees in all establishments, for profit or

Article 82 Coverage

not.
Exceptions
Government employees under Civil
Service Law;
Managerial employees and managerial
staff;
Domestic workers under RA 10361;
Persons in the personal service of
another;
Workers paid by results;
Field personnel and those whose time
and performance
are unsupervised; and
Dependent family members of the
Employer.
18.
What is the normal hours of work?
Shall not exceed 8 hours/day.
Broken time or workday is lawful.
Shortening of work week is lawful.
19.
What are hours of worked?
All time during which an employee is
required to be on duty or at a prescribed

Article 83 Normal
Hours of Work

Article 84- Hours Worked

work place.
All the time during which an employee is
permitted or suffered to work.
Waiting time compensable if integral part
ofwork.
On call compensable if time cannot be
used for personal purpose.
Travel time if part of work, yes. Home to
work, no. Travel away from home, yes only if it
cuts across employees workday.
Attendance to seminars No, if voluntary,
outside of work hours and/or no productive
work done.
Power interruptions yes, if less than 20
minutes. No if more, and employee leave
premises.
Union matters no, unless CBA provides
otherwise.
Attendance at hearings not compensable.
Strike participation NO, definitely
Meal Periods
Required. It should not be less than 60
minutes, but it is not compensable.
Shortening of meal period- if less than 20
minutes, compensable
Overtime Pay
Overtime Pay refers to the additional
compensation for work performed beyond 8
hours per day.
Compulsory Overtime Work
When there is an emergency or urgent
situation.
When completion or continuation after work
hours is necessary to prevent prejudice to
business or operations.
Rate: 125% of regular hourly rate on ordinary
working days. 130% for overtime work on Rest
Days.
Who are covered?
All employees in all establishments,
for profit or not.
Exceptions
Government employees subject to Civil
Service Law;
Managerial employees and managerial

Article 85 Meal periods

Article 87- Overtime

work

staff;
Persons in the personal service of
another;
Workers paid by results;
Field personnel and other employees
whose time and
performance are unsupervised; and
Dependent family members of the
Employer.
When Is Overtime Work Valid & Must Be
Paid? With the knowledge of employer or
immediate supervisor.
The work performed was necessary.
The work benefited the Employer.
Employee could not abandon his work at the
end of normal working hours because there is
no replacement.
Undertime Not Offset By Overtime
Undertime work on any day shall not be
offsetby overtime work on any other day.
Permission granted by the Employer for the
Employee to go on leave on some other day
shall not exempt him from the payment of
additional compensation for overtime work
rendered.
Valid overtime work is always subject to
Overtime Pay.
Holiday Pay
Holiday Pay refers to the payment of regular
daily wage for any unworked Regular Holiday at
the rate of 100%.
If the Employee is allowed or required to work

Article 88- Undertime not

offset by overtime

on a Regular Holiday, he is entitled to 200% of

his daily wage rate (Basic Wage + COLA).
If 2 Regular Holidays fall on the same day and
the Employee is allowed or required to work
onsuch day, he is entitled to 300%.
Holiday Pay: Who are Covered?
All employees in all establishments, for profit
or not, including daily-paid workers.
Exceptions
Government employees subject to Civil
Service
Law;
Managerial employees and managerial
staff;

Article 94. Right to

holiday pay.

 Persons in the personal service of

another;
Workers paid by results;
Field personnel and other employees
whose time and performance are
unsupervised;
Dependent family members of the
Employer; and
Retail / Service Establishment regularly
employing less than 10 workers.
Rules on Holiday Payment
Labor Advisory No. 09 Series of 2014
Pursuant to Proclamation no. 831 issued by the
President on July 17, 2014, the following rules for pay
on regular holidays shall apply.
Regular Holidays Jan 1, April 2, 3, 9, May 1, June
12, Aug 31, Nov 30, Dec 25, Dec 30, Eidl Fitr (to
be proclaimed) and Eidul Adha (tbp)
-If the employee did not work, he/she shall be paid
100% of his/her salary that day (daily
rate+COLA)x100%
-For work done during the regular holiday, the
employee shall be paid 200% of his his regular salary
for that day for the first eight hours (DR+COLA)x100%
-For work done in excess of 8 hours, he /she shall be
paid an additional 30 % of his hourly rate on said day
-For work done in excess of eight hours during a
regular holiday that also falls on his/her rest day,
he/she shall be paid an additional 30% of his/her
hourly rate on said day
Special non-working days Jan 2, Feb 19, April 4,
Aug 21, Nov 1, Dec 24, Dec 31
-if the employee did not work, the no work, no pay
principle shall apply unless there is a favourable
company policy practice or CBA granting payment on
a special day.
-For work done during the special, he/she shall be
paid an additional 30% of his/her daily rate on the

Labor Advisory No.

09Series of 2014
Pursuant to
Proclamation no. 831
issued by the President on
July 17, 2014,

first eight hours of work

-for work done in excess of eight hours, he/she shall
be paid an additional 30% of his/her hourly rate on
said day
-for work done during special day that falls on his /her
rest day. He/she shall be paid an additional 50% of
his/her daily rate on the first eight hours of work
-for work done in excess of eight hours during a
special day that also falls on his/her rest day, he/she
shall be paid an additional 30% of his/her hourly rate
on said day.
What are Weekly Rest Days?
It is the duty of the Employer to
provide a Rest Day of not less than
24 hours after 6 consecutive working
days.
Old law: Rest Day is Sunday.
New law: Rest Day is any day.
Employer determines the Rest Day of
the Employee, subject to agreement
and rules of DOLE.
Employees are given preference
based on religion.
UP NEXT: when we will be back we will discuss other
monetary benefits like retirement pay, separation pay,
13th month pay and the like.
Article 91. Right to
weekly rest day
Article 92. When
employer may require
work on a rest day.

Article 93. Compensation

for rest day, Sunday or
holiday work.
SET 3
TOPIC : PREMIUM PAY, NIGHTSHIFT

DIFFERENTIALS, SERVICE INCETIVE LEAVE,

SERVICE CHARGES, RETIREMENT PAY,
SEPARATION PAY, 13TH MONTH PAY
TIME 4:30-4:45 PM
Premium Pay
(Rest Day/Special Day Pay)
Work on Rest Day (and Special
Day)
When there is an emergency or urgent
situation.
When work is necessary to prevent prejudice
to business or operations.
Rate: 130% of regular hourly rate on
ordinary working days. 150% if Rest
Day and Special Day fall on the same
day.
COLA not included in the computation
(unlike in Holiday Pay).
Who are covered? Same above
Night Shift Differential Pay
NSD Pay refers to the the additional
compensation for each hour of work
performed between 10PM and 6AM.
Rate: 110% of the regular hourly
wage rate.
Who are covered? Same above

Article 86 Night shift

Service Incentive Leave

The Employee is entitled to 5 days of leave
with pay for every one year of service; provided
that he has served for 1 year already
(continuous or broken).
If Employer grants vacation leave with pay of
at least 5 days every year, then this is already
compliance with SIL.
Commutable to cash and becomes SIL Pay.
Part-time employees are also entitled to full
service incentive leave.
No Labor Code provisions on vacation leave or
sick leave
Who are covered? Same
Service Charges
Employees are entitled to a share from the
Service Charge being collected by the Employer

Article 95, Service

Incentive Leave

from his customers.

Rank-and-file employees share: 85%
Managements share: 15%.
Rank-and-file employees shall receive equal
share.
If abolished, the share of the Rank-and-file
employees shall be considered integrated to their
wages.
Retirement Pay
Retirement age: 60 to 65 years old.
Employee must also have worked for at least 5
years for the Employer.
Rate: Equivalent to 22.5 days salary for every
year of service payable by Employer.
Distinct from the Retirement Benefits from
SSS.
Excluded: Government employees; and
Retail/Service/ Agricultural Establishments
employing not more than 10 workers.

Retirement Pay Art. 293

Separation Pay
Employees terminated by the Employer on
the basis of Authorized Causes are entitled
to Separation Pay.
Rate: 1 Month or Month Salary for every
year of service: Closure of
Business ( labor-saving devices, redundancy,
retrenchment to prevent losses or the closing or
cessation of operation of the establishment) and
Serious Disease.
Rate:
-1 Month or 1 Month Salary for every
year of service: Labor-saving device and
Redundancy;
- 1 month pay or at least 1/2 month pay for
every year of service, whichever is higher:
retrenchment to prevent losses and in cases of
closures or cessation of operations of
establishment or undertaking not due to serious
business losses or financial reverses
Regular Allowance in included in the
computation.
13th Month Pay
Rank-and-file employees are entitled to

Article 283, and 284

13 month pay; provided they worked for

at least 1 month.
Rate: 1/12 of the total basic salary earned
by an Employee in a year.
Excluded: Government employees,
Employees paid based on results, and
Managerial employees.
Domestic workers are now entitled to
13th Month Pay per RA 10361.

Presidential Decree No.

851 (otherwise known
as Thirteenth Month Pay
Law), as amended by
Memorandum Order No.
28

UP NEXT: Maternity leave, paternity leave , sss,

philhealth
SET 4
TOPIC : MATERNITY LEAVE, PATERNITY LEAVE,
SPECIAL LEAVE FOR WOMEN, SOLO PARENT,
VICTIM OF VAWC, PHILHEALTH BENEFITS, SSS,
TIME 4:45-5:00 PM
Maternity Leave
All pregnant female workers are entitled
to Maternity Leave subject to SSS Law.
60 days of the average daily salary
credit for normal birth or miscarriage.
78 days of the average daily salary
credit for ceasarian section delivery.
Requirements: Membership in the SSS
with at least 3 months contributions prior
to delivery or miscarriage.
Paternity Leave
All married male workers are entitled
to Paternity Leave of 7 calendar days
with pay for the first 4 deliveries (or
miscarriage) of his lawful wife whom
he is cohabiting with.
Paternity Leave is Not convertible to
cash.
Parental Leave for Solo
Parents
Parental Leave shall mean leave benefits
granted to a solo parent to enable him or
her to perform parental duties and
responsibilities where physical presence is
required.
The solo parent is entitled to 7 days leave

(RA 1161, as amended

by RA 8282)

RA 8187Paternity Leave

RA 8972
Parental Leave for Solo -

with pay.
Parental Leave is Not convertible to cash.
Requirements: At least 1 year of service
and DSWD Solo Parents ID.
Leave for Victims of VAWC
Female employees who are certified as victims
under the Anti-Violence Against Women and
their Children Act of 2004 are entitled to 10
days of leave with pay to enable her to attend to
medical and legal concerns.
VAWC Leave is Not convertible to cash.
Special Leave for Women
Female employees who has undergone surgery
due to gynecological disorders are entitled to 2
months leave with pay to enable her to attend to
medical and legal concerns.
Special Leave is Not convertible to cash.
Requirements: Certification from physician,
and employment service of at least 6 months
within the 12 month period prior to surgery.
Employees CompensationProgram
PhilHEALTH Benefits
The National Health Insurance Program,
which is administered by PhilHEALTH,
provides financial assistance to member
Employees when they get hospitalized.
All employees are required to be members.
Benefits: Inpatient hospital care; and
outpatient care based on a Schedule of
Benefits.
Social Security Benefits
The Social Security Program provides a

RA 9710
Special Leave for Women -

RA 7875 National Health

Insurance Act of 1995

package of benefits in the event of death,

disability, sickness, maternity, and old age. It
provides replacement for income lost during
these contingencies.
All employees in the private sector are
mandatorily covered, including Domestic
Workers.
Benefits: Sickness, Maternity, Disability,
Retirement, Death & Funeral, based on a
Schedule of Benefits Loan and Miscellaneous
Benefits
Socialized loans for emergency, housing and

Article 8282 Social

Security Act of 1997

other purposes are available to employees who

are qualified members of the SSS and PagIBIG
Fund.
The duty of the Employer is to deduct and
remit the Employees contributions as well as
his required contributions to SSS, PhilHEALTH,
ECC, and PagIBIG. Failure on the part of the
Employer to remit the mandatory contributions
has serious
consequences.
ENTERTAIN QUESTIONS FROM VIEWERS
SAY THAT NEXT WEEK, WE WILL DISCUSS LABOR
RELATIONS
SUGGESTED EXTRO:
Sharing this beautiful excerpt from a case decided by
court showing the compassion we should have to the
working men and women.
We take this opportunity to reaffirm our concern for the
lowly worker who, often at the mercy of his employers,
must look up to the law for his protection. Fittingly, that
law regards him with tenderness and even favor and
always with faith and hope in his capacity to help in
shaping the nation's future. It is error to take him for
granted. He deserves our abiding respect. How society
treats him will determine whether the knife in his
hands shall be a caring tool for beauty and progress or
an angry weapon of defiance and revenge. The choice
is obvious, of course. If we cherish him as we should,
we must resolve to lighten "the weight of centuries" of
exploitation and disdain that bends his back but does
not bow his head.
-Cebu Royal Plant vs. The Honorable Deputy
Minister of Labor, G.R. No. L-58639, August 12, 1987
END

Cebu Royal Plant vs. The

Honorable Deputy
Minister of Labor, G.R.
No. L-58639, August 12,
1987