d L A B O R L AW

01
CONDITIONS
OF
EMPLOYMEN
T
on hours of work
d

Principles of Hours of Work

Application of the Rules on Hours of Work

Table of
02 Computation of Hours of Worked
Rules Applicable to Various Work Sitautions
Overtime Pay

Contents Night Shift Differential

Salary Computation
Weekly rest Periods
Conditions of Employment Holidays, Leaves and Service Charges
Leaves
Service Charges
d CONDITIONS OF EMPLOYMENT
Art. 82. Coverage. The provisions of this
Title shall apply to employees in all
establishments and undertakings whether
for profit or not, but NOT to government

Principles of employees, managerial employees, field

personnel, members of the family of the

"Hours
03 employer who are dependent on him for
support, domestic helpers, persons in the

Worked"
personal service of another, and workers
who are paid by results as determined by
the Secretary of Labor in appropriate
regulations.
d S O C I A L M E D I A R E P O RT

The conditions of employment covers

04
General Rule: all employees in all establishments
and
undertakings whether for profit or
not, except the following:

Conditions of employment
d CONDITIONS OF EMPLOYMENT

Government Employees
Exceptions refers to those employed by the National Government or any
05
of its political subdivisions including those employed in
GOCCs with original charter

Managerial Employees
refer to those who se primary duty consists of the
management of the establishment in which they are employed
or of a department or subdivision thereof, and to other
officers or members of the managerial staff
d CONDITIONS OF EMPLOYMENT

Officers and Members of Managerial Staff

Exceptions r efer to those who se primary duty consists of the
06
management of the establishment in which they are employed
or of a department or subdivision thereof, and to other
officers or members of the managerial staff

Domestic Servants
those who perform services in the employer’s home which are
usually necessary or desirable for the convenience and
enjoyment thereof, or minister to the personal comfort,
convenience or safety of the employer and members of
hisemployer’s household
d CONDITIONS OF EMPLOYMENT

Members of the Family

Exceptions the members of the employer dependent upon him for support
06
include husband and wife, parent and children, their
ascendants and descendants, brothers and
sister whether full or half blood

Piece Rate Workers

p aym ent of this type of worker is determined by the results of
the work performed or the number of hours work in the
completion of the job or the time spent in the
production
d CONDITIONS OF EMPLOYMENT

Field Personnel
Exceptions – shallrefer to non-agricultural employees who regularly
06
perform their duties away from the principal place of business
or branch office of the employer and whose
actual hours of work in the field cannot be determined with
reasonable certainty.
d Conditions of employment

07 NORMAL
HOURS OF
the rule does not preclude the employer in the
exercise of its management
prerogative to reduce the number of working hours

WORK
General Rule: The normal hours of work of
any employee shall not exceed 8 hours a day.
d
EXCEPTIONS:

Health Personnel Health personnel in cities and municipalities with a population of at least one
08 million (1,000,000) or in hospitals and clinics with a bed capacity of at least one
hundred (100) shall hold regular office hours for eight (8) hours a day, for five (5)
days a week, exclusive of time for meals

Compressed Work Week Employees will be regularly working for less than 6 days but each workday
exceeds 8 hours
d Conditions of employment

Art. 84. Hours worked. Hours worked shall include:

(a) all time during which an employee is required to
09
be on duty or to be at a prescribed workplace; and;

HOURS (b) all time during which an employee is suffered or

permitted to work.

WORKED Rest periods of short duration during working hours

shall be counted as hours worked.

Determination of Working Hours

d
Cases on Hours of Work

Idle Time
Engaged to Wait
10
not counted as
Cases on Seaman vs. Waiting to be
working time only where the
work is broken or is not
engaged
continuous (NDC vs. CIR
while on board a ship or vessel
1962)
beyond the regular 8 hours
work schedule

Subject to Call or
Continuous Work On-call
Waiting Time
the time during which the laborer is one required to remain on call
not working and can leave his considered as working if: in the employer's premises or
working place and can rest • waiting time is integral close thereto
completely shall not be counted part of his work; or Test: cannot use time for his
• employee is required or own purpose
engaged by employer to
wait
d
Cases on Hours of Work

Brief Rest Period lectures, Meetings and Trainings

Travel Time
11 Rest periods of short duration during
a. Home to Work
working hours shall be counted as hours It is considered as not compensable b. All in Days Work
worked. (Article 84, Labor Code) (5-20
if the following conditions are met: c. Away From Home / Overnight
minutes)
a. attendance is outside the
employee’s regular working hours;
b. attendance is in fact voluntary;
and
BrownOuts c. employee does not perform Meal Period
any productive work during such GR; not less than 60 minutes
a. Short Duration (20 minutes and Waiting Time
attendance
(Compensable)
below) Exceptions:
considered as working if: a. non-manual
b. Long Duration (more than 20 • waiting time is integral
b. operates more than 16 hours a day
minutes) part of his work; or actual or impending emergencies
• employee is required or prevent serious loss of goods
engaged by employer to
wait
d CONDITIONS OF EMPLOYMENT

Meaning
Overtime pay refers to the additional
compensation for work performed beyond 8
hours a day

12 Overtime Pay Compensation

an additional compensation equivalent to his
regular wage plus at least 25%, except on
holiday or rest day where OT pay is at least
30%

Conditions to be Entitled to OT Pay

1. Actual rendition of OT work
2. Submission of sufficient proof that said work
was actually performed
3. OT work is with the knowledge and consent
of
the employer
d CONDITIONS OF EMPLOYMENT

Undertime Offsetting Overtime

Undertime work on any particular day shall not be
offset by overtime work on any other day. (Art.
88)

13 Overtime Pay Waiver of OT Pay

Rights may be waived but the waiver must not be
contrary to law, public policy, morals, or good
customs or prejudicial to a third person with a right
recognized by law (Article 6, Civil Code)

Emergency OT Work
a. national or local emergency (i.e. war, etc.)
b. necessary to prevent loss
urgent work on machines, installations and
equipments;
d. completion of work to prevent prejudice to
the business
d CONDITIONS OF EMPLOYMENT Rule on NSD
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

14 Night Shift the morning.

Coverage

Differential (NSD) Applies to all employees, except:

• Government Employees;
• Kasambahay
• Managerial Employees;
• Officers or members of Managerial Staff
• Field Personnel

Waiver of NSD
GR: NSD cannot be waived for such waiver is
against public policy (Mercury Drug Co., Inc.,
vs. Dayao, et.al.)
Exception: Higher or better benefits given by
employer
d CONDITIONS OF EMPLOYMENT
Right to Rest Day
It shall be the duty of e very 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

Weekly Rest Day

normal work days.

15 Designation of Rest Day

(RD) Article 91b. 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.

Work on a Rest Day (Article 92)

Compensation on Working on RD (Article
93)
 CONDITIONS OF EMPLOYMENT
d

Regular Holiday
16 and Special
Holiday

meaning
Holiday – means a consecrated day designated, a religious
festival, a day of exemption, that is, cessation from work, a
day of festivity, recreation or amusement
d CONDITIONS OF EMPLOYMENT

Holiday pay and Premium Pay

17
Holiday pay – form of a premium
accorded to an employee who does
not work on regular holidays.

Premium pay – is an additional

compensation granted to a
covered employee for services
rendered or work done on holidays or
rest days.
d
Holiday Pay for
Certain Employees

Teachers Piece Rate Seasonal workers without

(private school) wrokers workers regular working
holiday pay not less than not paid during off season days
average daily earning for
not paid on sem break
the last 7 days
except Christmas Break
entitled

Conditions of employment
d CONDITIONS OF EMPLOYMENT

LEAVES
AND
01

PAY
Labor Law
d CONDITIONS OF EMPLOYMENT

• SERVICE INCENTIVE
LEAVE
Rule: Every employee who has
13 rendered at least one (1) year of
service shall be entitled to Service
Incentive Leave of five (5) days leave
with pay

Exceptions:
Govt employees, persons in personal service of
another, Managerial employees, officers or
members of managerial staff, field personnel,
those already enjoying the benefit, those with
VL of at least 5 days, establishment with less
than 10 employees
d

16 Illustration:
Illustration: An employee was hired on January 1, 2000 and
resigned on March 1, 2001.
SIL earned as of December 31, 2000 5 days
Proportionate SIL for Jan. 1, 2000 to Feb. 2001 0.8333 day
(Formula: (2/12)x5 days) --------------
Total accrued SIL as of March 1, 2001 5.8333 days

Service Incentive Leave

d CONDITIONS OF EMPLOYMENT

Paternity Coverage
All married male employees in the private sector and public
19
Leave
sector (but shall be governed by the Civil Service rules),
regardless of their employment status (e.g. probationary,
regular, contractual, project based)

Benefit
Seven (7) calendar days, with full pay, consisting of basic
salary and mandatory allowances. It will be availed after
delivery unless company policies provide otherwise

Limitation
apply only to the first four (4) deliveries or miscarriage
d CONDITIONS OF EMPLOYMENT

Paternity Conditions for Enttlement

1. He is an employee at the time of the delivery
19
Leave 2. He is cohabiting with his spouse at the time
of delivery or miscarriage. Note: cohabiting
means the obligation of the husband and wife to live together.
If the spouses are not physically living together because of
workstation or occupation, the male employee is still entitled
to the paternity leave benefit.

3. He has applied for paternity leave with his

employer within a reasonable period of time. In case of
miscarriage, prior application for paternity leave shall not be
required.

4. His wife has given birth or suffered miscarriage

d CONDITIONS OF EMPLOYMENT

Maternity Coveraage
all female employees, whether married or unmarried
19
leave Benefit
105 days leave with option of additional 30 days but without
pay; additional 15 days for solo mothers. For miscarriage, it
is 60 days

Additional 30 days may be availed but without pay

Frequency of Grant
in every instance of pregnancy regardlessof frequency
(Section 4, IRR-RA-11210,)
d CONDITIONS OF EMPLOYMENT

Maternity Conditions for Enttlement

1. a f em ale employee should be an SSS member
19
Leave employed at the time of her delivery or miscarriage,

2. she must have given the required notification

to the SSS through her employer,

3. her employer must have paid at least 3

monthly contributions to the SSS within the 12-month period
immediately before the date of contingency (i.e. childbirth or
miscarriage)
 Coveraage
d CONDITIONS OF EMPLOYMENT
1. A woman who gives birth as a result of rape and other crimes against chastity even
without a final conviction of the offender, provided that mother keeps and raises the child.
2. Parent left solo or alone with the responsibility of parenthood due to the following
circumstances: a. Due to death of spouse.
b. Spouse is detained or is serving sentence

Solo Parent for a criminal conviction for at least one (1) year.
c. Physical and/or mental incapacity of spouse
19 as certified by a public medical practitioner.

Leave (RA d. Legal separation or de facto separation from

spouse for at least one (1) year, as long as he/she is entrusted with the

8972)
custody of the children.
e. Declaration of nullity or annulment of
marriage as decreed by a court or by a church as long as he/she is entrusted
with the custody of the children.
3. Unmarried mother/father who has preferred to
keep and rear her/his child/children instead of having others care for them or
give them up to a welfare institution.
4. Any other person who solely provides parental
care and support to a child or children.
5. Any family member who assumes the
responsibility of head of family as a result of the death, abandonment,
disappearance or prolonged absence of the parents or solo parent.
d CONDITIONS OF EMPLOYMENT

Effect of Change of Status

A ch ange in the status or circumstances of the parent

Solo Parent claiming benefits this Act, such that he/she is no longer left
alone with responsibility of parenthood, shall terminate
19
Leave (RA
his/her eligibility for benefits

Benefit 7 days leave wth pay

8972) Conditions for entitlement

1. He/she has re ndered at least 1 year of service, whether
continuous or broken;
2. He/she has notified his/her employer that he/she will
avail himself/herself of it within a reasonable period of time,
and
3. He/shehas presented to his/her employer a Solo Parent
ID, which may be obtained from the DSWD office of the city
or municipality where he/she resides
d CONDITIONS OF EMPLOYMENT

VAWC Leave

Leave for "Violence against women and their children" refers to

any act or a series of acts committed by any person
19
victims of against a woman who is his wife, former wife, or
against a woman with whom the person has or had a

VAWC sexual or dating relationship, or with whom he has a

common child, or against her child whether legitimate
or illegitimate, within
or without the family abode, which result in or is likely
to result in physical, sexual, psychological harm or
suffering, or economic abuse including threats of such
acts, battery, assault, coercion, harassment or arbitrary
deprivation of liberty.
d CONDITIONS OF EMPLOYMENT

Purpose of the Leave

Leave for to attend to medical and legal concerns

19
victims of Benefit
up to 10 days with full pay consisting of basic salary and

VAWC
mandatory allowances. The said leave shall be extended when
the need arises, as specified in the protection order issued by
the barangay or the court.

Requirements for Entitlement

To be e ntitled to the leave benefit, the only requirement is for

the victim-employee to present to her employer a certification
from the barangay chairman or barangay councilor or
prosecutor or the Clerk of Court, as the case
may be, that an action relative to the matter is pending.
d CONDITIONS OF EMPLOYMENT

Coverage
Any female empl oyee regardless of age and civil status

Gynecological Disorder
Special Leave refers to disorders that would require surgical procedures
19
for Women
such as, but not limited to mdilatation and curettage and
those involving female reproductive organs such as the
vagina, cervix, uterus, fallopian tubes, ovaries, breast, adnexa

under RA 9710 and pelvic floor, as certified by a competent physician. It

shall also include hysterectomy, ovariectomy and mastectomy

Special Leave

A woman emp loyee having rendered continuous aggregate

employment service of at least six (6) months for the last
twelve (12) months shall be entitled to a special leave benefit
of two (2) months with full pay based on her gross monthly
compensation following surgery
caused by gynecological disorders.
d CONDITIONS OF EMPLOYMENT

Benefit
two (2) mo nths full pa y based on her gross monthly
compensation

Conditions:
Special Leave 1. She has rendered at least 6 months continuous aggregate
19
for Women
employment service for the last
12 months prior to surgery;
2. She has filed an application for special leave with her

under RA 9710 employer within a reasonable period of time from the

expected date of surgery
3. She has undergone surgery due to gynecological
disorders as certified by a competent physician
Usage
special leave shall be granted after emp loyee has undergone
surgery without prejudice to an employer allowing an
employee to receive her pay before or during the surgery
d S O C I A L M E D I A R E P O RT

16
Vl and SL Vacation leave and Sick Leave are
not required and provided by the
Labor Code and depends solely on
voluntary employer’s policy and
CBA

Conditions of employment
d
CONDITIONS OF EMPLOYMENT
Salary Computation
  Daily Rate OT Pay NSD
Ordinary Day x 1.0 x .25 x .10
Rest Day (worked) x 1.3 x .30 x .10
Special Holiday x 1.3 x .30 x .10
(worked)
Regular Holiday x 1.0 x .30 x .10
(unworked)
Regular Holiday x 2.0 x .30 x .10
(worked)
Double Holiday x 3.0 x .30 x .10
(worked)
Rest Day + Special x 1.5 x .30 x .10
Holiday
Rest Day + Regular x 2.6 (RD x 2) x .30 x .10
Holiday
Restday + Double x 3.9 (RD x 3) x .30 x .10
Holiday
d
CONDITIONS OF EMPLOYMENT
Salary Computation
Rules on Cost of Living Allowances (COLA – P10.00 for NCR):
Included (in the computation): Regular Holiday and Double Holiday
Excluded (in the computation): OT pay, NSD pay, RD, SH, RH+RD, SH+RH but will
be added in the final computation

Rules on Retail and Service Establishments:

1. Employing 1-5 workers – NO: Holiday pay, NSD, SIL, Retirement pay
2. Employing 1-9 workers – NO: Holiday pa, SIL, Retirement pay
3. Employing 1-15 workers – with minimum wage of P454.00 prior to October,
2017, and P475.00 from October 2017 onwards
 CONDITIONS OF EMPLOYMENT
d

16

N o t e : Muslim Holidays – while the regular

holidays are observed in the whole country, the
Muslim Holidays, except Eidul Fitr and Eidul Adha,
are observed only in specified areas. Muslim
employees working outside of the specified areas
shall be excused from reporting for work during
the observance of the Muslim Holidays as
recognized by law, without diminution of salary
during the period.
d
CONDITIONS OF EMPLOYMENT
Regular vs. Special Holiday
  Regular Holiday Special Holiday
As to source Holidays limited to those Holidays that are not exclusively
provided under Article 94 of the provided by the Labor Code
Labor Code
16 As to creation One set by law One that can be enacted by the
Congress or declared by the President

If unworked To pay 100% of his regular wage GR: No Work-No Pay policy
Exc: 1. CBA, 2. Company policy, 3.
Voluntary employer practice

As to COLA COLA is included COLA is excluded

If worked Employee is entitled to 200% of Employee is entitled only to 130% of his
his regular wage regular wage, and if falls on a rest day to
150% of his regular wage
 CONDITIONS OF EMPLOYMENT
d
  Holiday Pay Premium Pay
- payment for unworked - additional compensation for
Regular Holiday work performed during
Holidays
16 Coverage: Applies to all employees Applies to all employees
Exceptions: 1. Government employees 1. Government employees
2. Kasambahay and persons in personal 2. Kasambahay and persons in
service of another personal service of another
3. Managerial employees 3. Managerial employees
4. Officers or members of managerial 4. Officers or members of managerial
staff staff
5. Field personnel 5. Field personnel
6. Retail and Trade establishments with 6. Piece-rate workers
less than 10 employees
d
CONDITIONS OF EMPLOYMENT
Salary Computation
  Daily Rate OT Pay NSD
Ordinary Day x 1.0 x .25 x .10
Rest Day (worked) x 1.3 x .30 x .10
Special Holiday x 1.3 x .30 x .10
(worked)
Regular Holiday x 1.0 x .30 x .10
(unworked)
Regular Holiday x 2.0 x .30 x .10
(worked)
Double Holiday x 3.0 x .30 x .10
(worked)
Rest Day + Special x 1.5 x .30 x .10
Holiday
Rest Day + Regular x 2.6 (RD x 2) x .30 x .10
Holiday
Restday + Double x 3.9 (RD x 3) x .30 x .10
Holiday
 CONDITIONS OF EMPLOYMENT Effect of Absences on Holiday (Prior Working
d Day Presence Rule)
Situation Effect
1. On Leave on day immediately - on leave with pay = Entitled to Holiday pay
preceding - on leave without pay = Not entitled to Holiday pay
2. If day immediately preceeding is: - if worked on day immediately Entitled to HP
a. non-work day, or b. rest-day preceding the non work day or rest
day =

- if unworked = Not entitled to HP

- Unless he works on the RD or
non-work day or is on leave with
pay

3. Successive Regular Holidays (ex. - if worked on the day immediately Entitled to HP

Holy Thursday and Good Friday) preceding the 2 holidays =

- if unworked = Not entitled to HP

- Unless he works on the first
holiday or is on leave with pay on
the first holiday