LABOR LAW - No ER shall pay the wages of an employee by means of: promissiory notes,

vouchers, tickets, coupons, tokens, or any object other than legal tender.
I.​ BASIC POLICY ON LABOR
TIME OF PAYMENT
LABOR - the exertion of by human beings of physical or mental efforts, or
both, towards the production of goods and services. GR: Wages shall be paid

LABOR LAW – the law that governs the rights and duties of the Employer (1)​ At least once every two weeks; OR
(Er) and employees (Ee) as to: (2)​ Twice a month at intervals not exceeding 16 days

(1)​ The term and conditions of employment; and EXPNS:

(2)​ Labor disputes arising from collective bargaining or other concerted (a)​ On account of force majeure or circumstances beyond the control
activities respecting such terms and conditions. of the Employer
(b)​ If engaged to perform a task which cannot be completed in two (2)
CLASSIFICATION OF LABOR LAWS weeks shall subject to the following conditions:

(1)​ Labor Standards – The minimum requirements prescribed by -​ That payments are made at intervals not exceeding 16 days, in
existing laws, rules, and regulations as to the terms and conditions proportion to the amount of work completed
of employment relating to wages, hours of work, cost-of-living -​ That final settlement is made upon completion of the work
allowance, and other monetary and welfare benefits, including
occupational, safety, and health standards. PLACE OF PAYMENT

(2)​ Labor Relations – defines and regulates the status, rights, and GR: At or near the place of undertaking
duties, and the institutional mechanisms that govern the individual ​
and collective interactions of ERs, Ees, or their representatives. V. CONDITIONS OF EMPLOYMENT

II. LABOR CODE OF THE PHILIPPINES GR: Title I, Book III, of the Labor Code of the Philippines deals with hours of
work, weekly rest periods, holidays, service incentive leaves, and service
Presidential Decree (PD) No. 442, otherwise known as the Labor Code of the charges. It covers all employees in all establishments, whether for profit or
Philippines, is a decree instituting a Labor Code (LC), thereby revising and not.
consolidating labor and social laws to afford protection to labor, promote
employment and human resources development, and ensure industrial peace EXPNS:
and social justice. (1)​ Government Employees
(2)​ Field personnel
It was signed into law on 01 May 1974 and took effect on 01 Nov 1974 (or six (3)​ Managerial Employees
months after its promulgation). (4)​ Officers and members of managerial staff
(5)​ Members of the family of the Er who are dependent on him for
APPLICABILITY OF THE LABOR CODE support
(6)​ Workers paid by results
GR: All rights and benefits granted to workers under the Labor Code shall (7)​ Persons in the personal service of another
apply alike to all workers, whether agricultural or non-agricultural (8)​ Domestic helpers

XPNS: The aforementioned employees are NOT entitled to overtime pay, premium
(1)​ Government Employees pay for rest days and holidays, night shift differential pay, holiday pay, service
Note: for Government Employees, the Civil Service rules and regulations incentive leave, and service charges.
shall apply
(2)​ Employees of government-owned and controlled corporations VI. ​ HOURS OF WORK
created by special or original charter
(3)​ Foreign governments NORMAL HOURS OF WORK
(4)​ International agencies GR: The normal hours of work of any employee shall not exceed eight (8)
(5)​ Corporate officers/intra-corporate disputes hours a day
(6)​ Local water districts
(7)​ As may otherwise provide by the LC XPNS:
(1)​ Health personnel
III. EMPLOYER-EMPLOYEE RELATIONSHIP (2)​ Compressed Workweek – an alternative arrangement whereby the
normal workweek is reduced to less than six (6) days but the total
EMPLOYER - any person, natural or juridical, domestic or foreign, who number of normal work hours per week shall remain at 48 hours.
carries on in the Philippines any trade, business, industry, undertaking, or The normal workday is increased to more than 8 hours without
activity of any kind and uses the services of another person, who is under his corresponding overtime premium.
orders as regards the employment, except the Government and any of its
political subdivisions, branches or instrumentalities, including corporations VII. ​ MEAL PERIODS
owned or controlled by the
Government As a general rule, employees are entitled to not less than 60 minutes or one
(1) hour time-off regular meals which can be taken inside or outside company
EMPLOYEE – any person who performs services for an employer in which premises.
either or both mental and physical efforts are used and who receives
compensation for such services, where there is an employer-employee NON-COMPENSABILITY OF MEAL PERIOD – For a full one-hour
relationship. undisturbed lunch break, the employees can freely and effectively use this
hour not only for eating, but also for their rest and comfort which are
TEST TO DETERMINE EXISTENCE OF ER-EE RELATIONSHIP conducive to more efficiency and better performance in their work. Since the
employees are no longer required to work during this one-hour lunch break,
Four-fold test (S-W-D-C) there is no more need for them to be compensated for this period. (Sime
Darby Pilipinas v. NLRC)
Factors in determining the existence of employer-employee relationship
COMPENSABLE MEAL PERIOD
(1)​ Selection and engagement of employees
(2)​ Payment of wages It is compensable when the lunch period or meal time:
(3)​ Power of dismissal
(4)​ Power of Control (1)​ Is predominantly spent for the employer’s benefit; OR
(2)​ When it is LESS than 60 minutes
IV. WAGES
– the remuneration or earnings, however designated, capable of being VIII. OVERTIME WORK ​
expressed in terms of money, whether fixed or ascertained on a time, task, – the service rendered in excess of and in addition to eight hours on ordinary
piece, or commission basis, or other method of calculating the same, payable working days.
by an Er to an Ee under a written or unwritten contract of employment
OVERTIME PAY – the additional compensation of at least 25% on the regular
(1)​ For work done or to be done, or for services rendered or to be wage for the service or work rendered or performed in excess of 8 hours a
rendered; AND day
(2)​ Includes a fair and reasonable value of board, lodging, or other
facilities customarily furnished by the Er to the Ee determined by - Overtime pay is based on regular based pay excluding money received by
the Secretary of Labor and Employment. employee in different concepts such as Christmas bonus and other fringe
benefits.
TWIN ATTRIBUTES OF WAGES:
RATIONALE FOR OT PAY: To encourage employers to dispense with such
(1)​ Cash Wage – takes the form of ready money paid by the ER for work, thus providing employees an opportunity to satisfy their mental, moral,
services rendered by an employee and spiritual needs.

(2)​ Facilities – are articles or services customarily given for the benefit BASIS OF COMPUTATION OF OT PAY – Regular wage which includes cash
of the employee and are voluntarily accepted by him wage only

FORM OF PAYMENT - As a general rule, wages shall be paid in legal tender

​
​ to pay all their rank and file employees, a 13th month pay not later than
OVERTIME PAY RATES​ December 24 of every year

OVERTIME PAY RATES MINIMUM PERIOD OF SERVICE REQUIRED – the employee, to be entitled
to a 13th month pay, should have worked for at least one (1) month during the
During a regular workday Additional compensation of 25% of regular calendar year. ​
wage ​
During a holiday or rest Rate of the first 8 hours worked PLUS at least EQUIVALENT FORMS OF 13th PAY
day 30% of the regular wage (RW): (1)​ Christmas bonus
(2)​ Midyear bonus
(3)​ Profit sharing scheme
A. ​ If done on a Special Day OR Rest (4)​ Other cash bonuses amounting to not less than 1/12 of its basic
Day : ​ salary
30% of 130% of RW
THINGS NOT PROPER SUBSTITUTES FOR 13th MONTH PAY
B. ​ If done on a Special Day AND rest (1)​ Free rice
day; (2)​ Electricity
(3)​ Cash and stock dividends
30% of 150% of RW
(4)​ Cost of living allowance

C. ​ If done on a Regular Holiday XII. ​ LEAVES

30% of 200%
A.​ SERVICE INCENTIVE LEAVE (SIL) - a five-day leave with pay for
IX. NIGHT SHIFT DIFFERENTIAL every employee who has rendered at least one year of service,
whether continuous or broken.
Every employee shall be paid a night shift differential of not less than 10% of
his regular wage for each hour of work performed between 10:00 pm to 6:00 Purpose of the law: The stipulation in a contract for the allowance of a
am vacation to Ees is merely a recognition by management and labor that a short
interval of complete rest and relaxation from daily routine with the benefit of
Purpose: To give premium to night work when an employee is supposed to be full pay is essential to the mental and physical well-being of the workmen.
sleeping. Working at night is violative of the law of nature for it is the period (Bencio v. Joseph Boulder, Inc.)
for rest and sleep. An employee who works at night has less stamina and
vigor; thus he can easily contract a disease. COMMUTABILITY OF SIL TO CASH EQUIVALENT – It is commutable if not
used or exhausted at the end of the year. It is aimed primarily at encouraging
X. HOLIDAY PAY​ workers to work continuously and with dedication to the company.
– a one-day pay given by law to an employee even if he does not work on a
REGULAR holiday. B.​ EXPANDED MATERNITY LEAVE (R.A. 11210)

- It is limited to the 12 regular holidays. The employee should not have been APPLICABILITY – applies to all qualified female workers regardless of civil
absent without pay on the working day proceeding the regular holiday. status, employment status, and the legitimacy of her child.

Purpose of Holiday Pay: To secure the payment of undiminished monthly WHO ARE COVERED – Under the new law, maternity leave applies to all
income undisturbed by any work interruption. In other words, although the qualified female employees in the:
worker is forced to take a rest, he earns what he should earn, that is, his
holiday pay. (JRC v. NLRC) (1)​ Public sector
(2)​ Private sector
REGULAR HOLIDAYS (3)​ Informal economy (refers to the self-employed, occasionally or
personally hired, subcontracted and paid and unpaid family workers
(1)​ New Year’s Day (January 1) in household)
(2)​ Araw ng Kagitingan (April 9)
(3)​ Maundy Thursday (Movable date) BENEFITS UNDER THE EXPANDED MATERNITY LEAVE LAW:
(4)​ Good Friday (Movable date)
(5)​ Labor Day (May 1) (a)​ 105 days with full pay for live childbirth, regardless of mode of
(6)​ Independence Day (June 12) delivery, and additional 15 days paid leave if the female worker
(7)​ National Heroes Day (Last Monday of August) qualifies as a solo parent.
(8)​ Eid’l Fitr (Movable date) (b)​ 60 days with full pay for miscarriage and emergency termination of
(9)​ Eid’l Adha (Movable date) pregnancy.
(10)​ Bonifacio day (November 30) (c) An “option” to extend for an additional 30 days without pay in case
(11)​ Christmas day (December 25) of live chilldbirth
(12)​ Rizal Day (December 30)
FREQUENCY OF THE GRANT – Maternity leave shall be granted to a
SPECIAL (NON-WORKING) HOLIDAYS qualified female worker in every instance of pregnancy or miscarriage,
regardless of frequency.
(1)​ Ninoy Aquino Day (August 21)
(2)​ All Saints Day (November 1) ALLOCATION OF MATERNITY LEAVE CREDITS – In case of live childbirth,
(3)​ Feast of the Immaculate Conception (December 8) a qualified female worker entitled to maternity leave benefits may, at her
(4)​ Last day of the year (December 31) option, allocate up to seven (7) days of said benefits to the child’s father,
(5)​ Other holidays declared by law and ordinance whether or not the same is married to the female worker.

FORMULA TO COMPUTE WAGE ON HOLIDAYS In case of death, absence, or incapacity of the child’s father, the female
worker may allocate to an alternate caregiver, who may be any of the
(1)​ Regular Holiday following, upon the election of the mother:
Regular Workday
(a)​ A relative within fourth degree of consanguinity; or
I. Unworked – 100% (b)​ The current partner, regardless of sexual orientation or gender
Ii. Worked identity of the female worker sharing the same household.

First 8 hours – 200% - The option to allocate shall not be applicable in case the female workers
In excess of 8 hours – plus 30% of hourly rate on said day suffers miscarriage or emergency termination of pregnancy.

(2)​ Special Holidays NOTE: The allocated benefit granted to the child’s father under this law is
over and above that which is provided under the Paternity Leave Law/
I. Unworked – No pay, unless there is favorable company policy, practice, or
collective bargaining agreement granting payment of wages on special days C. PATERNITY LEAVE (R.A. 8187)
even if unworked.
- Refers to the benefits granted to a MARRIED male employee allowing hum
Ii. Worked not to report for work for seven (7) days but continue to earn compensation
on the condition that his spouse has delivered a child or suffered a
First 8 hours – plus 30% of the daily wage rate of 100% miscarriage for purposes of enabling him to effectively lend support to his wife
In excess of 8 hours – plus 30% of hourly rate on said day in her period of recovery and/or in the nursing of the newly-born child.

XI. ​ 13th MONTH PAY NON-COMMUTATION OF BENEFITS – In the event that the paternity leave
benefit is not availed of, said leave shall not be convertible to cash.
A form of monetary benefit equivalent to the monthly basic compensation
received by an employee, computed pro-rata according to the number of CONCEPT OF PATERNITY LEAVE BENEFITS – Every married male
months within the year that the employee has rendered service to the employee in the private and public sectors shall be entitled to a paternity
Employer. leave of 7 days with full pay for the FIRST FOUR (4) DELIVERIES of the
legitimate spouse with whom he is cohabiting.
FORMULA AND COMPUTATION OF 13th MONTH PAY
D. PARENTAL LEAVE FOR SOLO PARENTS (R.A. 8972)
Total basic salary earned during the year/12 = 13th month pay -​ Leave benefits granted to a solo parent to enable him/her to
perform parental duties and responsibilities where physical
TIME OF PAYMENT – Under Presidential Decree 851, all Eers are required presence is required.
 -​ Parental leave of not more than seven (7) working days every year XIII. ​ SOCIAL SECURITY ACT OF 2018 (RA 11199)
shall be granted to any solo parent employee who has rendered
service for at least 1 year. DECLARATION OF POLICY - It is the policy of the State to establish,
develop, promote, and perfect a sound and viable tax exempt social security
PERSONS CONSIDERED AS SOLO PARENT system suitable to the needs of the people throughout the Philippines which
shall promote social justice through savings, and ensure meaningful social
(1)​ Parent left solo or alone with the responsibility of parenthood due security protection to members and their beneficiaries against the hazards of
to: disability, sickness, maternity, old age, death, and other contingencies
resulting in the loss of income or financial burden.
I. Death of a spouse
Ii. Detention or service of sentence of spouse for a criminal conviction of at COVERAGE –
least one year;
Iii. Physical or mental incapacity of spouse as certified by a public medical Compulsory Coverage
practitioner;
Iv. Legal separation or de facto separation from spouse for at least one year (1)​ All Ees not over 60 years of age and their Ers;
as long as he/she is entitled with the custody of the children. (2)​ Domestic helpers whose income is not less than Php 1,000/month
V. Nullity or annulment of marriage as decreed by the court or church as long and not over 60 years of age and their employers;
as he/she is entrusted with the custody of the children; (3)​ Self-employed persons as may be determined by the Social
Vi. Abandonment of spouse for at least one year. Security Service Commission; and
(4)​ All sea-based and land-based Overseas Filipino Workers not over
(2)​ A woman who gives birth as a result of rape and other crimes sixty (60 ) years of age.
against chastity, even without the final conviction of the offender,
provided that the mother keeps and raises the child; Exclusions from Coverage
(3)​ Unmarried mother/father who has preferred to keep and rear
his/her children; (1)​ Services where there is no employer-employee relationship
(4)​ Any other person who solely provides parental care and support to (2)​ Services performed in the employ of the Philippine Government or
a child or children, provided that he/she is duly licensed foster instrumentality or agency thereof
parent by the DSWD or duly appointed legal guardian by the court; (3)​ Services performed in the employ of a foreign government or
(5)​ Any family member who assumes the responsibility of head of the international organization;
family as result of the death, abandonment, disappearance, or (4)​ Such other services performed by temporary and other employees
prolonged absence of the parents or solo parent, provided, that which may be excluded by regulation of the Commission.
such abandonment, disappearance, or absence lasts for at least
one (1) year. DEPENDENTS AND BENEFICIARIES

NON-CONVERSION OF PARENTAL LEAVE – In the event that the parental DEPENDENTS

leave is not availed of, said leave shall not be convertible to cash unless
specifically agreed upon previously. (1)​ The legal spouse entitled by law to receive support from the
member;
E. LEAVE BENEFITS FOR WOMEN WORKERS UNDER R.A. 9710 (Magna (2)​ The legitimate, legitimated, or legally adopted, and illegitimate child
Carta of Women) who is unmarried, not gainfully employed, and has not reached 21
years of age, or if over 21 years of age, he is congenitally or while
Any female employee in the public and private sector regardless of age and still a minor has been permanently incapacitated and incapable of
civil status shall be entitled to a special leave of two (2) months with full pay self-support, physically or mentally;
based on her gross monthly compensation subject to existing laws, rules, and (3)​ The parent who is receiving regular support from the member.
regulations due to surgery caused by gynecological disorders under the
following terms and conditions: BENEFICIARIES

(a)​ She has rendered at least six (6) months continuous aggregate A. Primary Beneficiaries
employment service for the last twelve (12) months prior to surgery;
(b)​ She has filed an application for special leave; and (a)​ The dependent spouse, until he or she remarries; and
(c) She has undergone surgery due to gynecological disorders as (b)​ The dependent legitimate, legitimated, legally adopted, or legally
certified by a competent physician. adopted children and the illegitimate children.

GYNECOLOGICAL DISORDERS – refer to disorders that would require NOTE: The dependent illegitimate children shall be entitled to 50% of the
surgical procedures such as, but not limited to, dilatation and curettage, and share of legitimate. legitimated, of legally adopted children. In the absence of
those involving female reproductive organs such as vagina, cervix, uterus, dependent legitimate, legitimated, or legally adopted children of the member,
fallopian tubes, ovaries, breast, adnexa, and pelvic floor, as certified by his/her dependent illegitimate children shall be entitled to 100% of the
competent physician. benefits.

FREQUENCY OF AVAILMENT – A female employee can avail of the special

leave benefit for every instance of surgery due to gynecological disorder for a B. Secondary Beneficiaries
maximum total period of two (2) months per year. (a)​ Dependent parents; or
(b)​ Any person designated by the member as his/her secondary
NON-COMMUTATION OF THE BENEFIT – this special leave benefit shall be beneficiary.
noncumulative and non-convertible to cash unless otherwise provided by a
Collective Bargaining Agreement (CBA). NOTE: The dependent parents will be considered as beneficiaries only when
there are no primary beneficiaries. The member can also designate any
F. LEAVE BENEFITS FOR WOMEN WORKERS UNDER RA 9262 (Anti- person as secondary beneficiary ONLY when there are no primary or
Violence Against Women and their Children Law) secondary beneficiaries.

VAWC – refers to any act or series of acts committed by any person against BENEFITS UNDER THE SSS ACT
who is his wife, former wife, or against a woman with whom the person has or
had a sexual or dating relationship, or with whom he has a common child, or (a)​ Sickness Benefits
against her child whether legitimate or illegitimate, within or without the family (b)​ Permanent Disability Benefits
abode, which result or is likely to result in physical, sexual, psychological (c) Maternity Leave Benefits
harm or suffering, or economic abuse, including threats of such acts, battery, (d) Retirement Benefits
assault, coercion, harassment, or arbitrary deprivation of liberty. (e) Death Benefits
(f)​ Funeral Benefits
LEAVE ENTITLEMENT – it allows the victim of violence, which may be (g)​ Unemployment Insurance or Involuntary Separation Benefits
physical, sexual, or psychological, to apply for the issuance of a protection
order. If such victim is an employee, she is entitled to a paid leave of up to 10 RETIREMENT BENEFITS – a monthly pension or lump sump granted to a
days in addition to the other paid leaves under the Labor Code, other laws, member who can no longer work due to old age
and company policies.
Types of Retirement Benefits
The Ee has to submit a certification from the Punong Barangay or Kagawad,
prosecutor, or clerk of court, that an action under RA 9262 has been filed and (a)​ Monthly Pension – lifetime cash benefit paid to a retiree who has
is pending. paid at least
120 monthly contributions to the SSS prior to the semester of retirement
NON-CUMULATIVE/NON-CONVERSION TO CASH - The availment of the (b)​ Lump Sum amount – granted to a retiree who has not paid the
ten-day leave shall be at the option of the woman Ee, which shall cover the required 120 monthly contributions
days that she has to attend to medical and legal concerns. Leaves not availed
of are non-cumulative and non-convertible to cash. Qualifying Conditions

Q: Can an employee apply for the 10-day leave from her employer just (1)​ A member must have at least 120 monthly contributions prior to
because of a black eye or any manifestation of abuse? semester of retirement; and
(2)​ Age requirement
NO. The ten-day leave under the VAWC may only be availed of if the victim
has applied for any protection order with the intention to file a case against Optional Retirement – Has reached 60 years old and separated from
the assailant. employment or has ceased to be self-employed, except:
​
​ i.​ An underground mineworker whose date of actual retirement is not
earlier than 13 March 1998 but not later than 27 April 2016 – at least 55 years
​ old
ii.​ An underground or surface mineworker whose date of actual
retirement is not earlier than 27 April 2017 – 50 years old

Technical Retirement – At least 65 years old, except:

i. An underground mineworker of surface mineworker – At least 60 years old

ii. In the case of a racehorse jockey – at least 55 years old

REQUISITES FOR ENTITLEMENT TO LUMP SUM BENEFIT

(1)​ At least 60 years old at the time of retirement

(2)​ Does not qualify for the pension benefits
(3)​ Must be separated from employment
(4)​ Is not continuing payment or contribution to the SSS on his own