Labor Standards and

Social Legislations
CONDITIONS OF EMPLOYMENT - 1

• Hours of Work
• Regular Working Hours
• Undertime/ Overtime
• Night Work/ Night Shift
• Flexible Work Arrangements
• Rest Days and Holidays
• Wages
• Minimum wage
• Computation of EEMR
Learning Objectives
• Understand the principles determining hours of worked and its
exemption.
• Evaluate when hours of work is compensable and not compensable.
• Convert the provisions of law to HR practice by way of computing
pay based on hours worked including overtime and night shift
differentials.
• Comprehend how minimum wage is determined in the Philippine
setting and practice computing EEMR using different pay factors.
• Explain the exemptions to employees’ entitlement to holiday pay.
• Discuss management’s exercise to require employees to report even
on a rest day.
• Familiarize with the provisions of law pertaining rest days and
holidays.
• Apply pay holiday rules in actual cases.
HOURS OF WORK
Art. 83. Normal hours of work. The normal
hours of work of any employee shall not
exceed eight (8) hours a day.
• Art. 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.
• Art. 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.
HOURS OF WORK
• Art. 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.
HOURS OF WORK
Art. 86. Night shift differential. Every employee shall be paid a night
shift differential of not less than ten percent (10%) of his regular wage
for each hour of work performed between ten o’clock in the evening and
six o’clock in the morning.

Sample Computation of Ordinary day Night Shift

• Let say the employee hourly rate is Php 100/hour and working
from 10pm to 6am
To determine the employee Night Differential pay:
Ordinary Day Night Differential = (Hourly rate × 10% × 8 hours)
• Php 80.00= (Php 100 × 0.10 × 8 hours)
•
HOURS OF WORK
• Art. 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.
• Art. 88. Undertime not offset by overtime. Undertime
work on any particular day shall not be offset by overtime
work on any other day. Permission given to the employee
to go on leave on some other day of the week shall not
exempt the employer from paying the additional
compensation required in this Chapter.
 HOURS OF WORK
• Art. 89. Emergency overtime work. Any employee may be required by the
employer to perform overtime work in any of the following cases:
• 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;

• When it is necessary to prevent loss of life or property or in case of imminent danger

to public safety due to an actual or impending emergency in the locality caused by
serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or
calamity;
• When there is urgent work to be performed on machines, installations, or equipment,
in order to avoid serious loss or damage to the employer or some other cause of
similar nature;
• When the work is necessary to prevent loss or damage to perishable goods; and
• Where the completion or continuation of the work started before the eighth hour is
necessary to prevent serious obstruction or prejudice to the business or operations of
the employer.
• Any employee required to render overtime work under this Article shall be paid the
additional compensation required in this Chapter.
FLEXIBLE WORK
ARRANGEMENTS

Adoption of Flexible work arrangements is allowed

option for management to implement as one of
coping mechanisms and remedial measures in times
of economic difficulties and national emergencies. It
is said to be a better alternative for management than
to implement an outright termination or closure of
business establishment. In this time of Pandemic,
this kind of arrangement were utilized by many of
business organization in order to continue to thrive.
 FLEXIBLE WORK
ARRANGEMENTS
• Department order No. 02 S of 2009 Guidelines on the
Adoption of Flexible Work Arrangements
• http://www.ilo.org/dyn/travail/docs/1130/Dept

• Labor Advisory 09 S of 2020: Guidelines on the

Implementation of Flexible Work Arrangements as
Remedial Measure to the Ongoing Outbreak of
Coronavirus Disease
• http://ro6.dole.gov.ph/fndr/mis/files/Labor-Advisory-
No_-09-20-Guidelines-on-the-Implementation-of-
Flexible-Work-Arrangements-as-Remedial-Measure-
due-to-the-Ongoing-Outbreak-of-Coronavirus-Disease-
2019-COVID-19.pdf
 FLEXIBLE WORK
ARRANGEMENTS
• Compressed workweek is defined as a flexible work
arrangement where the normal workweek is reduced
to less than six days, but the total number of work
hours per week shall remain the same.
(http://ncr.dole.gov.ph/fndr/mis/files/Department-
Advisory-No_02-s2004.pdf)
•
• The normal workday is increased to more than eight
hours, but should not exceed 12 hours, without
corresponding overtime premium. It can also be
adjusted accordingly depending on the company’s
normal workweek.
•
 FLEXIBLE WORK
ARRANGEMENTS

• Department Order 202 S of 2019 Implementing

Rules and Regulations of the RA No. 11165 or the
Telecommuting Act
• https://www.dole.gov.ph/wp-
content/uploads/2019/04/DO-202-19-Implementing-
Rules-and-Reulations-of-Republic-Act-No.-11165-
otherwise-known-as-the-Telecommuting-Act.pdf
REST DAYS
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.

(Article 91, The

Labor Code)
• 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.
• The employer shall respect the preference of employees as
to their weekly rest day when such preference is based on
religious grounds.
• Rest day is not usually compensable unless you are
considered a monthly paid employee.
• Employees are also entitled to know the schedule of their
weekly rest days.
• Employee may volunteer to work on his rest day provided
that shall be expressed in writing and shall given
additional compensation
Conditions when employer to require an employee to
report on a rest day.
• In case of actual or impending emergencies
caused by serious accident, fire, flood,
typhoon, earthquake,epidemic or other disaster
or calamity to prevent loss of life and
property, or imminent danger to public safety;

• In cases of urgent work to be performed on the

machinery, equipment, or installation, to avoid
serious loss which the employer would otherwise
suffer;
• In the event of abnormal pressure of work due to special circumstances,
where the employer cannot ordinarily be expected to resort to other
measures;

• To prevent loss or damage to perishable goods;

 HOLIDAY PAY
• Art. 94. Right to holiday pay.
• Every worker shall be paid his regular daily wage during
regular holidays, except in retail and service establishments
regularly employing less than ten (10) workers;

• 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

• 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.
REGULAR HOLIDAYS
SPECIAL HOLIDAYS
EXEMPTIONS
• Government employees
• Those of retail and service establishments regularly employing less than ten
(10) workers;
• Househelpers and persons in the personal service of another.
• Managerial employees provided they meet the conditions under the Code
• Officers or members of a managerial staff provided they meet the conditions
under the Labor Code;
• Field personnel and other employees whose time and performance are
unsupervised by the employer, including those who are engaged on task or
contract basis, purely commission basis or those who are paid a fixed amount
for performing work irrespective of the time consumed in the performance
thereof.
Rules on Absences
• If on leave of absence without pay preceding a regular
holiday – may not be paid the required holiday pay if they do
not work on such regular holiday.
• Employers to grant the same percentage of holiday pay as the
benefit granted in the form of employees compensation or SS
payment whichever is higher, if the employee are not reporting
for work on such leave benefit.
• Where the day immediately preceding the holiday is a non-work
day or the scheduled rest day of the employee, he/she shall be
entitled to holiday pay if he/she worked on the day
immediately preceding the non-work day or rest day.
Wage
“Wage” paid to any employee shall mean the remuneration or
earnings, however designated, capable of being expressed in
terms of money, whether fixed or ascertained on a time, task,
piece, or commission basis, or other method of calculating the
same, which is payable by an employer to an employee under
a written or unwritten contract of employment for work done or
to be done, or for services rendered or to be rendered and
includes the fair and reasonable value, as determined by the
Secretary of Labor and Employment, of board, lodging, or
other facilities customarily furnished by the employer to the
employee. “Fair and reasonable value” shall not include any
profit to the employer, or to any person affiliated with the
employer.
Need of Workers and Capacity to pay
Families

Comparable wages Requirements of

and incomes Economic and Social
Development
https://nwpc.dole.gov.ph/regionandwages/national-capital-region/
 Monthly Paid (those Daily Rate ( required Daily Paid (who do Daily Paid (who do
who are paid everyday to work everyday not work and are not work and are
of the month, including including, Sundays or not considered not considered
unworked rest days, rest days, special days paid on Sundays paid on Saturdays
special holidays and and regular holidays) or rest days ) and Sundays or
regular holidays) rest days )

FACTOR 365 DAYS 393.8 DAYS 313 DAYS 261 DAYS

FORMULA
TO GET THE
EEMR
ANNIE THE TEACHER IS A MARK THE NURSE IS DAILY JANE THE CALL CENTER BENJ THE HR ASSISTANT IS
MONTHLY PAID EMPLOYEE PAID EMPLOYEE WHO IS AGENT IS A DAILY PAID A DAILY PAID EMPLOYEE
REQUIRED TO WORK WHO WORK 6 DAYS A WORKING ON A FIVE DAY
EVERYDAY WEEK AND NOT PAID ON WORKWEEK BUT NOT
REST DAY CONSIDERED PAID ON OFF
DAYS
DAILY RATE = Php 800 /day DAILY RATE = Php 900/day DAILY RATE = Php 1000/day DAILY RATE = Php 1100/day

800 x 365 = Php 292,000 900 x 393.8= Php 354,420 1000x 313= Php 313,000 1100x 261= Php 287,100
12 12 12 12
EEMR = Php 24,333.33 EEMR = Php 29,535.00 EEMR = Php 26,083.33 EEMR = Php 26,083.33

MONTHLY RATE : Php MONTHLY RATE : Php MONTHLY RATE : Php MONTHLY RATE : Php
35,000 35,000 35,000 35,000

35,000 x 12 = Php420,000 35,000 x 12 = Php420,000 35,000 x 12 = Php420,000 35,000 x 12 = Php420,000

365 393.8 313 261

DAILY RATE = Php 1,150.68 DAILY RATE = Php 1,066.53 DAILY RATE = Php 1,341.85 DAILY RATE = Php 1,609.20
Jasmin is a Customer Care Representative of
Converge in Quezon City . She is daily paid
employee working Mondays to Fridays receiving
a minimum wage?

How much is her EMMR?

LET US PRACTICE
Jasmin is a Customer Care Representative of
Converge in Quezon City . She is daily paid
employee working Mondays to Fridays receiving
a minimum wage?

If her duty falls on 10:00 PM to

LET US PRACTICE
• No Salary below minimum wage
• Basic Principle in payment is NO WORK NO PAY.
• Payment of wage should be in a form of check or money.
• Wages shall be paid at least once every two weeks or twice a month at intervals
of not exceeding 16 days.
• Payment of wages shall be made at or near the place of work.
• Payment of wages shall be directly paid to the workers whom they are due.
• No employer in his own behalf or in behalf of any person shall make any
deduction from wages of his employees unless there is a consent from the
employee.
 REGULAR SPECIAL NO
HOLIDAY WORKING
HOLIDAY
Regular Unworked 100% No pay unl
workday with favora
policy
Worked 200% on the 1st +30% of dail
8 hours rate
Rest Day Unworked 100% No pay unles
with favorab
policy
Worked +30% of 200% +50% of the
daily rate

Overtime +30% of hourly +30% of the

rate on the hourly rate
said day the said day
 REST DAYS
Annie is a Cashier in Landmark Department Store.
She is receiving a daily rate of Php 620.00 working on
a 5 day workweek ( Monday to Friday) with an
opening shift of 9:00AM – 6:00 PM.
Due to the mall wide sale, Annie was asked to report
on Saturday which also falls on a rest day. How much
would she receive that day.
Regular Rest day = 130%
Daily rate = Php 620 X 1.3 = Php806.00
 REST DAYS AND HOLIDAYS
Annie reports every Monday to Friday. Friday is Quezon
City Day. How much would be her pay if she worked
that day in Landmark.
Special Non Working Holiday = 130%
Daily rate = Php 620.00 X 1.3 = Php806.00
What if QC Day falls on a Saturday, and she was asked
to report? How much would be her pay?
Restday and Special Holiday = 150%
Daily rate = Php 620 X 1.5 = Php930.00
 REST DAYS AND HOLIDAYS
Annie is scheduled to work on Christmas Day which falls
on Friday.
Regular Holiday 200%
Daily rate = Php 620 X 2= Php 1,240.00
If Christmas Day falls on Annie’s rest day and she was
asked to report how much would be her pay that day?
Regular Holiday +Rest Day= +30% of regular holiday
rate of 200% ( 260%)
Daily rate = Php 620 x 1.3= 806 *2 = Php 1,612 or
Php 620 * 2.6 = Php1,612
 OVERTIME PAY
Annie with 620.00 daily rate at Landmark Department
Store on a Monday to Friday. If she extends work for 3
hours due to the need to balance collections, how
much would be her OT pay?
Regular Overtime = (hourly rate x 1.25)* no of hours
Php620/ 8 hours
Hourly rate is = 77.5 x 1.25 = 96.875
OT premium = 96.875x 3 hours = Php 290.625
 OVERTIME PAY
Due to the mall wide sale, Annie was asked to report on Saturday which also
falls on a rest day. She was asked to render overtime for 3 hours that day. How
much would be her pay?
Regular Rest day w/OT= daily rate X130% x 130% x number of hours OT
or hourly rate x 1.69 x no. of hours OT
Php620 x 1.3 = PHP 806.00 ( Restday Pay for the 1st 8 hours)
Php 806/ 8 =100.75 (hourly rate with premium) x.1.3 = 130.975
Php130.975 x 3 hours = Php 392.92
Total pay that day Php 806 + 392.92 =1,198.93

Php620/8 = Php77.5 x1.69 = 130.975

Php 130.975 x 3hours= Php 392.92
Php 620x1.3 + 392.92
Php 806.00 +392.92 = Php 1,198.93
 OVERTIME PAY
What if QC Day falls on a Saturday, and she was asked to report? She
was asked to render overtime for 3 hours that day. How much would be
her pay?
REST DAY AND SP. HOL.= daily rate X150% x 130% x number of hours OT
or hourly rate x 1.95 x no. of hours OT
Php620 x 1.5 = PHP 930.00 (Restday Sp Holiday Pay for the 1st 8 hour)
Php 930/ 8 =116.25 (hourly rate with premium) x.1.3 = 151.125
Php151.125x 3 hours = Php 453.375
Total pay that day Php 930.00 + 453.375=1,383.375

Php620/8 = Php77.5 x1.95 = 151.125

Php 151.125 x 3hours= Php 453.375
Php 620x1.5 + 453.375
Php 930.00 +453.375 = Php 1,198.93
 OVERTIME PAY
Annie is scheduled to work on Christmas Day which falls on Friday and
asked to work overtime for 3 hours
REGULAR HOL WITH OT.= daily rate X200% x 130% x number of hours
OT
or hourly rate x 2.6 x no. of hours OT
Php620 x 2= PHP 1,240 (Legal Holiday pay for the 1st 8 hours)
Php 1,240/ 8 =155.00(Legal H. hourly rate) x.1.3 = 201.50
Php201.50 x 3 hours = Php 604.50
Total pay that day Php 1,240.00+ 604.50=1,844.50

Php620/8 = Php77.5 x2.6 = 201.50

Php 201.50 x 3hours= Php 604.50
Php 620x2 + 604.50
Php 1,240 + 604.50= Php P1,844.50
 OVERTIME PAY
If Christmas Day falls on Annie’s rest day and she was asked to report how much would
be her pay that day if she was asked to render 3 hours OT?

REGULAR HOLIDAY /REST DAY AND WITH OT.= daily rate X260% x 130% x number
of hours OT
or hourly rate x 3.38x no. of hours OT

Php620 x 2.6= PHP 1,612 (Legal Holiday pay and Rest day for the 1st 8 hours)
Php 1,612/ 8 =201.5.00(Legal H. hourly rate) x.1.3 = 261.95
Php261.95 x 3 hours = Php 785.85
Total pay that day Php 1,612 + 785.85=2, 397.85

Php620/8 = Php77.5 x 3.38 = 261.95

Php 261.95 x 3hours= Php 785.85
Php 620x2.6 + 785.85
Php 1,612.00 + 785.85= Php 2,397.85
 On Night Shift Differential
Type of Day Basic Daily Rate OT Rate NSD Rate OT NSD RATE
Php 620 / 8 hours)
Regular Work (RW) Php 77.5 (RW) 125% * RW 10% of RW 10% of RW

Special Holiday (SH) Php 77.5 *130% (SH) 130% * SH 10% of SH 10% of SH OT Rate

Rest Day Php 77.5 *130%(RD) 130% * RD 10% of RD 10% of RD OT Rate

(RD)

Special Holiday on Php 77.5*150%(SHRD) 130% * SHRD 10% of SHRD 10% of SHRD OT Rate
Rest Day (SHRD)

Regular Holiday Php 77.5*200%(RH) 130 of RH 10% of RH 10% of RH OT Rate

(RH)

Regular Holiday Php 77.5 *260% (RHRD) 130% of RHRD 10% of RHRD 10% of RHRD OT Rate
Rest Day ( RHRD)
 Type of Day BASIC PAY NIGHT SHIFT OVERTIME OT WITH NIGHT
DIFFERENTIAL SHIFT
Regular Work 1 1.1 1.25 1.375
(RW)
Special Holiday 1.3 1.43 1.69 1.859
(SH)
Rest Day 1.3 1.43 1.69 1.859
(RD)

Special Holiday 1.5 1.65 1.95 2.145

on Rest Day
(SHRD)
Regular Holiday 2 2.2 2.6 2.86
(RH)
Regular Holiday 2.6 2.86 3.38 3.718
Rest Day (
RHRD)
Double Holiday 3 3.3 3.9 4.29
(DH)
Double Holiday 3.9 4.29 5.07 5.577
on a Rest day