LESSON 8: Rights and Responsibilities of the Workers

Salary Deduction
Marites was reprimanded by her boss because she was spreading gossip about Marisol that
she and one of her married clients were dating. It was not the first time that Marites got
reprimanded because of the same reason. This time, her boss told her that because of what she
did, she will have a salary deduction as punishment. Her boss even told her that a salary
deduction is better than getting fired. Was there any violation done by her boss? why or why
not?

Labor Code of the Philippines (PD no. 442) decree establishing labor and social laws to
afford protection to labor, promote employment and human resources development and insure
industrial peace based on social justice.

What are the basic rights and responsibilities of a worker?

The Department of Labor and Employment (DOLE) compiled and listed 10 basic rights of a
worker (cited from “Rights of Employees,” n.d.)

1) Equal Work Opportunities for All (excerpt from the Labor Code of the Philippines)
“The State shall protect labor, promote full employment, provide equal work opportunity
regardless of gender, race, or creed; and regulate relations between employees and
employers.”

Section 4 of the Implementing Rules and Regulations

(IRR) of Republic Act No. 10911 or the Anti-Age Discrimination in Employment Act
states that employers are prohibited to discriminate the employment of an applicant and
a worker in terms of age through any forms of publication or advertisement relating to
employment, or decline employment application, promotion, or training opportunities due
to the individual’s age. The DOLE issued the IRR on February 2, 2017.“

“There are exemptions to the law. It only allows limiting the acceptance of workers with a
younger age if the job skills are bonafide for the occupation or if it can have a detrimental
effect on the health of the worker. Examples of those are for policemen, construction
workers, and others,” -Labor Assistant Secretary Benjo Santos Benavidez’

2) Security of Tenure (excerpt from the Labor Code of the Philippines)

“Every employee shall be assured security of tenure. No employee can be dismissed
from work except for a just or authorized cause, and only after due process.”
 “Just cause” refers to any wrongdoing committed by an employee. Example:
stealing money
“Authorized cause” refers to economic circumstances that are not the employee’s
fault. Example: company bankruptcy
 Book Three: Conditions of Employment
Title I: Working Conditions and Rest Periods
3) Work Days and Work Hours (excerpt from the Labor Code of the Philippines)
“An employee must be paid their wages for all hours worked. If their work hours fall
between 10:00 pm and 6:00 am, they are entitled to night shift pay in addition to their
pay for regular work hours. If they work over eight hours a day, they are entitled to
overtime pay.”
 ARTICLE 83. Normal hours of work.
“The normal hours of work of any employee shall not exceed eight (8) hours a
day.”
 ARTICLE 84. Hours worked.
“Hours worked shall include (a) all time during which an employee is required to
be on duty or to be at a prescribed workplace; and (b) all time during which an
employee is suffered or permitted to work. Rest periods of short duration during
working hours shall be counted as hours worked.”
 ARTICLE 85. Meal periods.
Subject to such regulations as the Secretary of Labor may prescribe, it shall be
the duty of every employer to give his employees not less than sixty (60) minutes
time-off for their regular meals.”
 ARTICLE 87. Overtime work.
“Work may be performed beyond eight (8) hours a day provided that the
employee is paid for the overtime work, an additional compensation equivalent to
his regular wage plus at least twenty-five percent (25%) thereof. Work performed
beyond eight hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight hours on a holiday or rest
day plus at least thirty percent (30%) thereof.”

4) Weekly Rest Day(excerpt from the Labor Code of the Philippines)

“A day-off of 24 consecutive hours after six (6) days of work should be scheduled by the
employer upon consultation with the workers.”

 ARTICLE 91. Right to weekly rest day.

“(a) It shall be the duty of every employer, whether operating for profit or not, to
provide each of his employees a rest period of not less than twenty-four (24)
consecutive hours after every six (6) consecutive normal work days.
(b) The employer shall determine and schedule the weekly rest day of his
employees subject to collective bargaining agreement and to such rules and
regulations as the Secretary of Labor and Employment may provide. However,
the employer shall respect the preference of employees as to their weekly rest
day when such preference is based on religious grounds.”
 ARTICLE 93. Compensation for rest day, Sunday or holiday work.
“(a) Where an employee is made or permitted to work on his scheduled rest day,
he shall be paid an additional compensation of at least thirty percent (30%) of his
regular wage. An employee shall be entitled to such additional compensation for
work performed on Sunday only when it is his established rest day.
(b) When the nature of the work of the employee is such that he has
 no regular workdays and no regular rest days can be scheduled, he
shall be paid an additional compensation of at least thirty percent
(30%) of his regular wage for work performed on Sundays and
holidays.”
Chapter II: Weekly Rest Periods
 ARTICLE 93. Compensation for rest day, Sunday or holiday work.
“(c) Work performed on any special holiday shall be paid an additional compensation of
at least thirty percent (30%) of the regular wage of the employee. Where such holiday
work falls on the employee’s scheduled rest day, he shall be entitled to an additional
compensation of at least fifty per cent (50%) of his regular wage.
(d) Where the collective bargaining agreement or other applicable employment contract
stipulates the payment of a higher premium pay than that prescribed under this Article,
the employer shall pay such higher rate.”

 ARTICLE 94. Right to holiday pay.

“ (b) The employer may require an employee to work on any holiday but such
employee shall be paid a compensation equivalent to twice his regular rate; and
(c) As used in this Article, “holiday” includes: New Year’s Day, Maundy Thursday,
Good Friday, the ninth of April, the first of May, the twelfth of June, the fourth of
July, the thirtieth of November, the twenty-fifth and thirtieth of December and the
day designated by law for holding a general election.

5) Wage and Wage-related benefits (excerpt from the Labor Code of the Philippines)
“Wage is the amount paid to an employee in exchange for the services that they
rendered to their employer. Wage may be fixed for a given period.”

 ARTICLE 99. Regional minimum wages.

“The minimum wage rates for agricultural and non-agricultural employees and
workers in each and every region of the country shall be those prescribed by the
Regional Tripartite Wages and Productivity Boards. (As amended by Section 3,
Republic Act No. 6727,June 9, 1989).”
Chapter II: Minimum Wage Rates
6) Payment of Wages (excerpt from the Labor Code of the Philippines)
“Payment should be paid directly to the employee in cash, legal tender, or through a bank.
Wages shall be given not less than once every two weeks or twice within a month at intervals
not exceeding 16 days.”

 ARTICLE 102. Forms of payment.

“ No employer shall pay the wages of an employee by means of promissory
notes, vouchers coupons, tokens, tickets, chits, or any object other than legal
tender, even when expressly requested by the employee.”
Chapter III: Payment of Wages
 ARTICLE 103. Time of payment.
“Wages shall be paid at least once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days. If on account of force majeure or
circumstances beyond the employer’s control, payment of wages on or within the
 time herein provided cannot be made, the employer shall pay the wages
immediately after such force majeure or circumstances have ceased. No
employer shall make payment with less frequency than once a month.”
Chapter III: Payment of Wages

 ARTICLE 103. Time of payment.

“The payment of wages of employees engaged to perform a task which cannot
be completed in two (2) weeks shall be subject to the following conditions, in the
absence of a collective bargaining agreement or arbitration award:
(1) That payments are made at intervals not exceeding sixteen (16) days, in
proportion to the amount of work completed; (2) That final settlement is made
upon completion of the work.”
Chapter III: Payment of Wages

 ARTICLE 113. Wage Deduction. No Employer, his own behalf or in behalf of

any person, shall make any deduction from the wages of employees, except: (a)
In cases where the worker is insured with his consent by the employer,
and the deduction is to recompense the employer for the amount paid by him
on the insurance;
(b) For union dues, in cases where the right of the worker or his union check-
off has been recognized by the employer or authorized in
writing by the individual worker concerned; and (c) In cases where the employer
is authorized bylaw or regulations issued by the Secretary of Labor and
Employment

Salary Deductions
1. Income Tax - tax on a person's income, emoluments, profits arising from property, practice
of profession, conduct of trade or business or on the pertinent items of gross income specified
in the Tax Code of 1997 (Tax Code), as amended, less the deductions if any, authorized for
such types of income, by the Tax Code, as amended, or other special laws.- except for tax
exempt employees with a monthly salary of PHP 20,833 and less.
Example:
An employee who earns PHP 30,000 monthly (including the OT pay, holiday pay, and night
differential) has the following salary deductions:
● SSS contribution: PHP 581.30
● PhilHealth contribution: PHP 412.50
● Pag-IBIG contribution: PHP 100
The total deductions (assuming that the employee has no tardiness and absences during a pay
period) is PHP 1,093.80. When you subtract that from the PHP 30,000 income, the taxable
income would be PHP 30,000 – PHP 1,093.80 = PHP 28,906.20
2. Social Security System (SSS) - 3.63% of an employee’s monthly salary credit.
Provides for a replacement of income lost on accident of the following contingencies:
a. sickness d. retirement
b. maternity e. death
c. disability f. funeral
3. Home Development Mutual Fund (Pag-Ibig Fund) - national savings program and an
affordable shelter financing for the FIlipino worker. The PhilHealth premium contribution
rate is 2.75% of the monthly basic salary, shared equally by employers and employees.
4. PhilHealth- established to provide health insurance coverage and ensure affordable,
acceptable, available and accessible health care services for all Filipinos. The maximum Pag-
IBIG contribution is 2% or PHP 100 per month for members earning PHP 5,000 and above per
month.
Other LEGAL Deductions
● Loan payments
● Tardiness
● Absences
● Other deductions from company-specific policies

Book Three: Conditions of Employment, Title III: Working Conditions for Special Groups of
Employees
7) Female Employee(excerpt from the Labor Code of the Philippines)
“Women are prohibited from engaging in night work unless the work is allowed by the
following rules: industrial undertakings from 10 pm to 6 am, commercial/non-industrial
undertakings from 12 mn to 6 am, or agricultural takings at night provided that she has
had nine consecutive hours of rest Welfare facilities, such as separate dressing rooms
and lavatories, must be installed at the workplace.”

 ARTICLE 130. Nightwork prohibition.

“No woman, regardless of age, shall be employed or permitted or suffered to work, with
or without compensation:
(a) In any industrial undertaking or branch thereof between ten o’clock at night and six
o’clock in the morning of the following day; or
(b) In any commercial or non-industrial undertaking or branch thereof, other than
agricultural, between midnight and six o’clock in the morning of the following day; or
(c) In any agricultural undertaking at nighttime unless she is given aperiod of rest of not
less than nine (9) consecutive hours.
 ARTICLE 131. Exceptions.
“The prohibitions prescribed by the preceding Article shall not apply in
any of the following cases:
(a) In cases of actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquake, epidemic or other disasters or calamity, to prevent loss of life or
property, or in cases of force majeure or imminent danger to public safety;
(b) In case of urgent work to be performed on machineries, equipment or installation, to
avoid serious loss which the employer would otherwise suffer;
“The prohibitions prescribed by the preceding Article shall not apply in any of the
following cases:
(c) Where the work is necessary to prevent serious loss of perishable goods;
(d) Where the woman employee holds a responsible position of managerial or technical
nature, or where the woman employee has beenengaged to provide health and welfare
services;
 (e) Where the nature of the work requires the manual skill and dexterity of women
workers and the same cannot be performed with equal
efficiency by male workers;”
(f) Where the women employees are immediate members of the family operating the
establishment or undertaking; and
(g) Under other analogous cases exempted by the Secretary of Labor and Employment
in appropriate regulations.
 ARTICLE 132. Facilities for women.
“The Secretary of Labor and Employment shall establish standards that will ensure the
safety and health of women employees. In appropriate cases, he shall, by regulations,
require any employer to:
(a) Provide seats proper for women and permit them to use such seats when they are
free from work and during working hours, provided they can perform their duties in this
position without detriment to efficiency;
(b) To establish separate toilet rooms and lavatories for men and women and provide at
least a dressing room for women;
 ARTICLE 132. Facilities for women.
“The Secretary of Labor and Employment shall establish standards that will ensure the
safety and health of women employees. In appropriate cases, he shall, by regulations,
require any employer to: (c) To establish a nursery in a workplace for the benefit of the
women employees therein; and
(d) To determine appropriate minimum age and other standards for retirement or
termination in special occupations such as those of flight attendants and the like.”
 ARTICLE 133. Maternity Leave Benefits
“(a) Every employer shall grant to any pregnant woman employee who has rendered an
aggregate service of at least six (6) months for the last twelve (12) months, maternity
leave of at least two (2) weeks prior to the expected date of delivery and another four (4)
weeks after normal delivery or abortion with full pay based on her regular or average
weekly wages. The employer may require from any woman employee applying for
maternity leave the production of a medical certificate stating that delivery will probably
take place within two weeks.”
 ARTICLE 133. Maternity Leave Benefits
“(b) The maternity leave shall be extended without pay on account of illness medically
certified to arise out of the pregnancy, delivery, abortion or miscarriage, which renders
the woman unfit for work, unless she has earned unused leave credits from which such
extended leave may be charged.
(c) The maternity leave provided in this Article shall be paid by the employer only for the
first four (4) deliveries by a woman employee after the effectivity of this Code.”

 Republic Act No. 11210: An Act Increasing the Maternity Leave Period to One Hundred
Five (105) Days for Female Workers with an Option to Extend for an Additional Thirty
(30) Days Without Pay, and Granting an Additional Fifteen (15) Days for Solo Mothers,
and for Other Purposes.

 ARTICLE 135. Discrimination Prohibited

“It shall be unlawful for any employer to discriminate against any woman employee with
respect to terms and conditions of employment solely on account of her sex. The
 following are acts of discrimination: (a) Payment of a lesser compensation, including
wage, salary or other form of remuneration and fringe benefits, to a female employees
as against a male employee, for work of equal value; and
(b) Favoring a male employee over a female employee with respect to promotion,
training opportunities, study and scholarship grants solely on account of their sexes.”

 ARTICLE 136. Stipulation Against Marriage

“It shall be unlawful for an employer to require as a condition of
employment or continuation of employment that a woman employee
shall not get married, or to stipulate expressly or tacitly that upon
getting married, a woman employee shall be deemed resigned or
separated, or to actually dismiss, discharge, discriminate or
otherwise prejudice a woman employee merely by reason of her
marriage.
Chapter I: Employment of Women
 ARTICLE 137. Prohibited Acts
“It shall be unlawful for any employer:(a) To deny any woman employee the benefits
provided for in this Chapter or to discharge any woman employed by him for the purpose
of preventing her from enjoying any of the benefits provided under this Code.
(b) To discharge such woman on account of her pregnancy, or while on leave or in
confinement due to her pregnancy;
(c) To discharge or refuse the admission of such woman upon returning to her work for
fear that she may again be pregnant.”Chapter I: Employment of Women
8) Employment of Children (excerpt from the Labor Code of the Philippines)
“The minimum employment age is 15 years of age. Any worker below 15 years of age should be
directly under the sole responsibility of parents or guardians provided that work does not
interfere with the child’s schooling or development The minimum age of employment is 18 years
for hazardous jobs, and 15 years for non-hazardous jobs.”9)
9) Safe-Working Conditions(excerpt from the Labor Code of the Philippines)
“Employers must provide workers with every kind of on-the-job protection against injury,
sickness or death through safe and healthful working conditions.”
10) Rights to Self-organization and Collective Bargaining(excerpt from the Labor Code of
the Philippines)
“Every worker has the right to self-organization, i.e., to form or to join any legitimate workers’
union, free from interference of their employer or the government. All workers may join a union
for the purpose of collective bargaining and is eligible for union membership of the first day of
their employment.”
What is Collective Bargaining?

 process between two parties, namely the employer and the union, where the terms and
conditions of employment are fixed and agreed upon.
 also involves deciding upon a method for resolving grievances.
 results in a contract called Collective Bargaining Agreement (CBA)
References
Bureau of Labor Relations. (n.d.).
 Book III – Conditions of employment.
Reasons for Termination
Terminating an employee in the country is taken very seriously and can be a complex process,
especially since the Labor Code is construed in favor of employees.

Termination occurs when an employer irrevocably breaks its contract of employment with an
employee and may either be voluntary or involuntary.

There are two types of employment termination in the Philippines.

Termination of employer refers to dismissal of employees due to just or authorized causes.

Voluntary resignation refers to the voluntary act of known dissociation from employment for
personal reasons.
“Book Six: Post Employment Title I: Termination of Employment

 ARTICLE 282. Termination by employer.

“An employer may terminate an employment for any of the following just causes:
(a) Serious misconduct or willful disobedience by the employee of the lawful orders of
his employer or representative in connection with his work;
(b) Gross and habitual neglect by the employee of his duties;
(c) Fraud or willful breach by the employee of the trust reposed in him by his employer or
duly authorized representatives.
(d) Commission of a crime or offense by the employee against the person of his
employer or any immediate member of his family or his duly authorized representatives;
and
(e) Other similar causes.

 ARTICLE 283. Closure of establishment and reduction of personnel.

“The employer may also terminate the employment due to:
(a) installation of labor-saving devices;
(b) redundancy;
(c) retrenchment to prevent losses; or
(d) closing or cessation of operation
[T]he separation pay shall be equivalent to (1) month pay or at least one-half (1/2) month
salary for every year of service, whichever is higher. A fraction of at least six (6) months
shall considered as one (1) whole year.”

 ARTICLE 284. Disease as ground for termination.

“An employer may terminate the services of an employee who has been found to be
suffering from any disease and whose continued employment is prohibited by law or is
prejudicial to his health as well as to the health of his co-employees: Provided that he is
paid separation pay equivalent to at least (1) month salary or to one-half (1/2) month
 salary for every year of service, which ever is greater, a fraction of at least six (6) months
being considered as one (1) whole year.”

 ARTICLE 285. Termination by employee.

“(a) An employee may terminate without just cause the employee-employer relationship
by serving a written notice on the employer at least one (1) month in advance. The
employer upon whom no such notice was served may hold the employee liable for
damages.”
“(b) an employee may put an end to the relationship without serving any notice on the
employer for any of the following just causes:
1. Serious insult by the employer or his representative on the honor and person of the
employee;
2. Inhuman and unbearable treatment accorded the employee by the employer or his
representative;”
3. Commission of crime or offense by the employer or his representative against the
person of the employee or any of the immediate members of his family; and
4. Other similar cases.”
Separation pay refers to amount given to an employee who has been terminated from service
for authorized causes.
How much is the separation pay?
The amount given to the employee depends on the specific authorized cause of their
termination, which could be any of the following:
• Installation of labor-saving devices or redundancy: equivalent of at least one (1) month pay or
one (1) month for every year of service, whichever is higher.
• Retrenchment, closure or cessation of business: equivalent of at least one (1) month pay or
one-half (1/2) month pay for every year of service, whichever is higher.
• Incurable disease: equivalent of at least one (1) month pay or one-half (1/2) month pay for
every year of service, whichever is greater.
What is constructive dismissal?
Constructive dismissal involuntary resignation resorted to when continued employment
becomes impossible, unreasonable, or unlikely, due to any of the following:
• demotion in rank or a diminution in pay; or
• when a clear discrimination, insensibility, or disdain by an employer becomes unbearable to an
employee.

Constructive dismissal is illegal and usually occurs when an employee resigns as a result of
unfavorable work conditions instigated by the employer. It is typically resorted by employers
who do not want to undergo the procedural due process involved in legally terminating an
employee.

Can an employee be terminated if they participated in a union strike?

Termination due to illegal participation to strike
If the strike was staged for a purpose not recognized by law, an employee who knowingly
participates in the commission of illegal acts during the strike may be declared to have lost their
employment status.
“An employee who participates in lawful strike is not deemed to have abandoned their
employment, but is merely exercising their constitutional rights to self-organization to protect
their rights as an employee and/or obtain better working conditions.“

RETIREMENT FROM THE SERVICE

- Any employee may be retired upon reaching the retirement age established in the collective
bargaining agreement or other applicable employment contract. (Also read Article 78 and
Republic Act No. 10911)
ARTICLE 287. Retirement.
In the absence of a retirement plan or agreement providing for retirement benefits of
employees in the establishment, an employee upon reaching the age of sixty (60) years or
more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement
age who has served at least five (5) years in the said establishment, may retire and shall be
entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year
of service, a fraction of at least six (6) months being considered as one whole year.