Easy guide to Employment Rights.
By :Rodel Cadorniga jr
The provisions of the Labor Code does not apply to:
Managerial Employees
Members of the Managerial staff
Field Personnel
Family members of the Employer who are dependent on him/her for support
Domestic helpers*
Persons in the Personal service of another
Workers paid by Result *
Government employees
Employees of Retail and service establishments regularly employing less than 10
workers
Employer-Employee Relationship
Elements:
Selection and engagement
Payment of wages
Power of dismissal
Power to control the employee’s conduct
Test: Control Test
where the person for whom the services are performed reserves the right to control not only the end to
be achieved but also the means to be used in reaching such end
commencement of employer-employee relationship: upon hiring
terminated upon:
1. Voluntary resignation
2. Constructive dismissal
3. Abandonment
4. Dismissal for a cause
5. Expiration of period of employment
6. Completion of project
7. Retirement
Wages
Are the earnings paid by the employer to an employee, in terms of money, fixed on a time, task,
piece, commission or other method, under a written or unwritten contract of employment for
services rendered or to be rendered.
Should arise from an employer –employee relationship
Wages vs Salary
Wages refers to compensation for manual labor
Salaries denotes a higher grade of employment or superior grade of services and implies
a position of office
What are part of Wages
1. Facilities ( board and lodging, rice ration, housing, recreational activities etc)
2. Bonus
3. Supplements are not part of wages (vacation leave pay, sick leave pay, overtime pay in excess of
what is required by law, pension etc.)
Payment of Wages
Must be in Legal Tender (but payment though check is allowed)
Paid at least once every 2 weeks at an interval not exceeding 16 days
Should be paid direct to the worker
The employer cannot:
1. Interfere with the freedom of an employee to dispose of his wages
2. Oblige employees to buy commodities from the employer or other persons
3. Oblige employees to patronize the store of the employer or other person
4. Require employees to make a deposit from which deductions shall be made in case
of loss or damage to tools, material or equipment supplied by the employer. (unless
it is an industry practice)
General Working Conditions
Normal hours of work
Should not exceed 8 hours/24 hours
Need not be continuous
Exception: Compressed work week
1. The normal work week is reduced to less than 6 days
2. The normal hours of work per day is increased to more than 8 hours
3. Without overtime pay
4. But the total number of working hours per week remains at 48 hours
What are considered as hours of work?
1. All hours which the employee is required to give to his employer.
2. If the work performed was necessary or beneficial to the employer or the
employee cannot abandon his work because he had no replacement, all the
time spent for such work will be considered as hours of work PROVIDED the
work was done with the knowledge of the employer.
3. Time during which an employee is inactive by reason of an interruption that is
beyond his control.
4. For rest periods; the moment that the employee stops working.
Overtime pay
Additional compensation given to covered employees who work for more than 8 hours a
day
25% of regular wage on ordinary days
30% of holiday or rest day rate on overtime work on holidays and rest days
Nightshift differential
Additional compensation for those employees who work between 10:00pm to 6:00am
10% of the regular wage for each hour of work
Weekly rest period
24 consecutive hours after every 6 consecutive normal work days
Can your employer compel you to work on your rest day?
Generally NO
Exceptions:
1. Disaster/Calamity
2. Urgent repairs
3. Abnormal pressure of work
4. Preservation of perishable goods
5. Nature of work
6. Favorable working condition
7. Demands of service
Premium pay for special holiday and rest day
additional compensation given for working on a special day or rest day
30% of regular wage on a rest day or special holiday
50% of regular wage on special holiday falling on a rest day
Special holidays:
1. Ninoy Aquino Day – Monday nearest to August 21
2. All Saints Day- November 1
3. Last day of the year- December 31
Holiday pay
Additional compensation given on regular holidays
100% of regular daily wage if you do not work during the regular holiday
200% of regular daily wage if you conducted work during the regular holiday
Who are entitled to Holiday pay?
Every employee except Employees of Retail and service establishments regularly employing less
than 10 workers
National Regular Holidays
1. New year’s Day –January 1
2. Maundy Thursday – movable date
3. Good Friday- movable date
4. Eidul Fitr- movable date
5. Eidul Adha- movable date
6. Araw ng Kagitingan- monday nearest April 9
7. Labor Day – Monday nearest May 1
8. Independence Day- Monday nearest June 12
9. National Heroes Day- Last Monday of August
10. Bonifacio Day- Monday nearest November 30
11. Christmas Day – December 25
12. Rizal Day- Monday nearest December 30
Service incentive leave
5 days with pay,but the employee must have rendered at least 1 year of service
Who are not entitled?:
1. Employees who have not rendered 1 year of service
2. Employee of establishments regularly employing less than 10 employees
3. Employees already enjoying vacation leave with pay of at least 5 days
4. Employees of establishments exempted by the Secretary of Labor
Service charges
Amount collected from customers by hotels, restaurants and similar establishments
To be distributed at the rate of: 85% for all covered employees, 15% for the
management
Other statutory leaves
1. Maternity leave
2. Paternity leave
3. Parental leave for solo parents
4. Leave for victims of VAWC
5. Special leave for Women
13th month Pay
extra remuneration given to employees who have rendered at least 1 month of service
equivalent to at least 1/12 of the basic salary during the calendar year
only rank and file employees are entitled
should be paid not later than December 24 of each year.
Equivalent to 13th month pay
Christmas bonus
Mid-year bonus
Year-end bonus
Cash bonus
Transportation allowance
Apprentices and Learners
An Apprentice is a person
Undergoing training
In a highly technical industry
For an approved apprentice able occupation (approved by TESDA)
Under written apprentice agreement
Entitled to 75% of the statutory minimum wage
Should not exceed 6 months
Highly technical industry is a trade, business, enterprise or industry or other activity
which utilizes the application of advanced technology
Apprentices maybe hired without compensation for purposes of complying with:
1. Academic requirements for graduation
2. Government requirements for Board Examinations
Hours of work
Maximum 8 hours per day and 40 hours per week
Cannot be required to work from 10:00 pm to 6:00 am
Learners are persons hired as:
Trainees in semi-skilled or non-apprenticeable occupations
Which can be learned through practical training on the job
In a short period of time not exceeding 3 months
Only employers who have a Learnership Program duly approved by TESDA can hire
Learners
75% of applicable minimum wage
Minimum age requirement is 15 y/o but only in non-hazardous occupations.
Deductions
The employer is not allowed to:
Withhold any amount from the wages of a worker without his consent
Induce an employee to give up any part of his wages
An employer can make deductions from wages of a employee only when:
authorized by law
cost of insurance premiums
cost of value of facilities voluntarily accepted by the employee
due and demandable debt to the employer
agency fees
income tax
premium contributions to SSS, NHI, and HDMF
authorized in writing by the employee himself
deductions for an employee’s debt to a 3rd person
deductions for cost of facilities
deductions for union dues
deductions for special assessments by the union
Employee’s Compensation and Social Security Benefits
Employee’s compensation
Benefits that compensate work-related disability or death
To mitigate the harshness and insecurity of industrial life
Recoverable regardless of the negligence of the employer for as long as there is death,
injury or illness is work connected.
Benefits:
1. Medical benefit
2. Temporary total disability benefit
3. Permanent total disability benefit
4. Permanent partial disability benefit
5. Death benefits
6. Funeral benefits
When disability or death arising from injury is compensable?
The employee was performing his official functions at the time of injury
Injury was sustained at the place where his work requires him to be (Direct premises
doctrine)
Or if the injury was sustained elsewhere, the employee was executing an order of the
employer
Acts performed by the employee to minister his personal comfort within the time and
space limits of his employment ( Personal comfort doctrine)
going to or coming from place of work
while on a trip undertaken for the benefit of the employer (Mingling of purpose
doctirine)
while enjoying the means of transportation provided by the employer to and from the
place of employment (Shuttle bus doctirine)
while on recreation sponsored by the employer (Special engagement doctrine)
while doing work at home if work was done at the request or direction of the employer
( Doing work at home doctrine)
When disability or death arising from Illness is compensable?
if the the Illness is an Occupational disease
requirements:
1. work must involve the described risk
2. the disease was a result of the employees exposure to the described risk
3. the disease was contracted within the period of exposure
4. there was no notorious negligence on the part of the employee
not classified as an occupational disease but the risk of contracting the decease is
proven to have been increased by the working conditions (Increased risk doctrine)
when is the employee bared from compensation?
If the disability or death was caused by the employee’s
1. intoxication
2. willful intention to injure or kill himself
3. notorious negligence
Social Security Benefits
Benefits that compensate diability or death regardless of whether they are work related
and insure or protect against hazards or risks of sickness and old age
Benefits:
7. Maternity leave benefit
8. Sickness benefit
9. Permanent total disability benefit
10. Permanent partial disability benefit
11. Retirement benefits
12. Death benefits
13. Funeral benefits
