Labor Law
Labor Law
Labor Law
Refers to the minimum requirements prescribed by existing laws, rules and regulations
and other issuances relating wages, hours of work, cost of living allowances and other
monetary and welfare benefits, including those set by occupational safety and health
standards.
2. Meal Pay
3. Holiday Pay
Except: Retail and service establishments regularly employing less than 10 workers
Includes: Employee who is paid by results and she works in a service establishment employing
more than 10 persons shall be paid holiday pay. (Sec. 8(b), Rule IV, Book III, IRR’s)
Regular Holidays
1. New Years day - January 1
2. Maundy Thursday - Movable Date
3. Good Friday - Movable Date
4. Eidul Fitr - Movable Date
5. Araw ng Kagitingan - Movable Date nearest April 9
6. Labor day - Monday nearest May 1
7. Independence day - Monday nearest June 12
8. National heroes day - Last Monday of August
9. Bonifacio day - Monday nearest November 30
10. Christmas day - December 25
11. Rizal day - Monday nearest December 30
· To receive holiday pay, the EE should not have been absent without pay on the working
day preceding the regular holiday. (Azucena)
· A legal holiday falling on a Sunday creates no legal obligation for the ER to pay extra to
the EE who does not work on that day, aside from the usual holiday pay, to its
monthly-paid employee. (Wellington vs. Trajano)
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4. Premium Pay
Is additional compensation for work rendered by the employee on days normally he
should not be working.
b. In case of Urgent work, to avoid serious loss which the ER would otherwise suffer;
c. In the event of Abnormal pressure of work due to special circumstances, where the ER
cannot ordinarily be expected to resort to other measures;
e. Where the Nature of work requires continuous operations and stoppage of the work
may result in irreparable injury or loss to the ER; and
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regular holidays unless the working days in the establishment as a matter of practice or policy, or
that provided in the employment contract are less than 12 months, in which case said period
shall be considered as 1 year. (Sec. 3, Rule V, Book III, IRR’s)
8. Overtime Pay
· Is additional compensation for work done beyond the normal work hours on ordinary
working days.
· Regular work day – plus 25% basic hourly rate
· Special days, holiday or rest day – plus 30% of the regular hourly rate on said days.
g. Where the completion or continuation of the work started before the 8th hour is
necessary to prevent Serious obstruction or prejudice to the business operations of the
ER.
The EE’s refusal to obey the order of the EE constitutes insubordination for which he
may be subjected to disciplinary action. (Alcantara)
· Undertime work in any particular day shall not be offset by overtime work on another
day BUT not on someday.
§ Permission given to the EE to go on leave on some other day of the week shall not
exempt the ER from paying the additional compensation required. (Art. 88)
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COVERAGE OF LABOR STANDARD
Applies to ALL employees in all establishments and undertakings whether for profit or
not.
M – Managerial Employees
a. Their primary duty consists of the management of the establishment in which they are
employed or of a department or sub-division thereof;
c. Has the authority to hire or fire other employees of lower rank; or their suggestions and
recommendations as to the hiring and firing and as to the promotion or any change of
status of other employees are given particular weight. [Sec 2(b), Rule I, Book III]
d. Do not devote more than 20% of their hours worked to activities which are not directly
and closely related to the performance of the work described in the preceding
paragraphs.
M – Members of the Family of the Employer who are dependent of him for support
It refers not only to the real “immediate” members of he family of the employer but also
to those who are considered as family members in its loose sense, that is, those who are
living with the employer and dependent on him for support
G – Government Employee
Whether employed by the National Government or any of its political subdivisions,
including those employed in GOCC’s with original charters. (Sec. 2, Rule I, Book III,
IRR’s)
F – Field Employee
Non-agricultural EE’s who regularly perform their duties away from the principal place
of business or branch office of the ER whose actual hours of work in the field cannot be
determined with reasonable certainty (Art. 82)
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b. Paid by Piece – those who are compensated on the basis of units or piece of work they
produced and accomplished. The work process involved is usually repetitive and the
compensation is uniform per unit or per piece.
D – Domestic Helpers
Perform such services:
a. In the ER’s home which are usually necessary or desirable for the maintenance or
enjoyment thereof;
However, house personnel hired by a ranking company official, but paid for by the
company itself, to maintain a staff house provided for the official, are not the latter’s
domestic helpers but regular EE’s of the company. (Cadiz vs. Philippine Sinter)
o To be paid only to rank-and file employees regardless of the amount of their basic salary.
§ It is possible that ½ of the payment of 13th month pay be given to employees before the
opening of the regular school year and the other half on or before 24 th day of December
of every year. The frequency of the payment of this monetary benefit may be subject of
agreement between the employer and the recognized CBA of the employees.
§ OFW is no entitled to 13th month pay in the absence of any provision in his
employment contract granting the payment thereof (Petroleum Shipping Limited v.
NLRC, G.R. No. 148130, June 16, 2006)
§ An employee who has resigned or whose services were terminated at any time before
the time for payment of the 13 th month pay is entitled to this monetary benefit
proportion to the length of time he worked during the year, reckoned from the time he
started working during the calendar year up to the time of his resignation or
termination of service.
(Monthly Salary x # of months he worked during he year) / 12
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Ø but does not include allowances and monetary benefits which are not considered or integrated as
part of the regular or basic salary, such as the cash equivalent or unused vacation and sick leave
credits, overtime, premium, night-differential and holiday pay, and cost-of-living allowances.
· However, these salary-related benefits should be included as part of the basic salary in the
computation of the 13th month pay if the individual or collective agreement, company practice or
policy, the same are treated as part of the basic salary of the EE’s.
G – Government Employee
The government and any of its political subdivisions, including GOCC’s, except those
corporations operating essentially as private subsidiaries of the government.
M – Managerial Employees
E – Employee being paid equivalent of 13th month pay
ER’s already paying their EE’s a 13 th month pay or more in a calendar year or its equivalent at the
time of this issuance.
The term “its equivalent” … shall include Christmas bonus, mid-year bonus, cash bonuses and
other payments but shall not include cash and stock dividends, cost of living allowances and
other allowances regularly enjoyed by the EE, as well as non-monetary benefits. Where an ER
pays less than required 1/12th of the EE’s basic salary, the ER shall pay the differences.
S – Supervisory Employee
Have the following duties and functions:
a. Assist the department superintendent in various aspects of management such as in the
planning of systems and procedures;
b. Recommends disciplinary action against erring subordinates or promotion of deserving
personnel, train and guide subordinates;
c. Communicate and coordinate with other supervisors;
d. Recommend measures to improve work method; and
e. Other related tasks as may be assigned by his immediate superior.
They discharge duties and responsibilities which qualify them as members of the
managerial staff.
A distressed ER may qualify for exemption for the 13 th month pay if there is prior authorization
from the DOLE. (Dentech vs. NLRC)
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