TIPS:

 Make use of however, provided, moreover

 If asked by a question by a yes or no. Answer first before going to the explanation
 Do not go beyond what is asked
 Check Serrano Case and Yap case
 Use the 2015 UP Labor Law Reviewer

What is--

Overtime Pay
 Art. 87, LC. Overtime on ordinary working day 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.


Overtime work on holiday or rest day Art. 87, LC. 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.

Computation of additional compensation Art. 90, LC. For purposes of computing overtime
and other additional remuneration as required by this Chapter the "regular wage" of an
employee shall include the cash wage only without deduction on account of facilities provided
by the employer.

Synthesis of Rules
(1) An employer cannot compel an employee to work overtime

Exception: Emergency overtime work as provided for in Art. 89

(2) Additional compensation is demandable only if the employer had knowledge and consented
to the overtime work rendered by the employee.

Exception: Express approval by a superior NOT a requisite to make overtime

compensable:
(a) If the work performed is necessary, or that it benefited the company; or
(b) That the employee could not abandon his work at the end of his eight-hour work
because there was no substitute ready to take his place. [Manila Railroad Co. v. CIR
(1952)]
Note daw besh: However, the Court has also ruled that a claim for overtime pay is NOT
justified in the absence of a written authority to render overtime after office hours during
Sundays and holidays. [Global Incorporated v. Atienza (1986)]

No Waiver of Overtime Pay

The right to overtime pay cannot be waived. The Labor Code (Art. 87) requires that an
employee be paid all overtime compensation notwithstanding any agreement to work for
 a lesser wage. Consequently, such an agreement or "waiver" will not prevent an
employee from recovering the difference between the wages paid the employee and the
overtime compensation he or she is entitled to receive. [Cruz v. Yee Sing (1959)]

Exception: When the waiver of overtime pay is in consideration of benefits and privileges
which may be more than what will accrue them in overtime pay, the waiver MAY be
permitted. [Meralco Workers Union v. MERALCO (1959)]

 Night Differential - Can you claim this together with overtime?
o Overtime pay does not preclude night differential pay
When the tour of duty of a laborer falls at nighttime [between 10:00pm and
6:00am], the receipt of overtime pay will not preclude the right to night differential
pay. The latter is payment for work done during the night while the other is
payment for the excess of the regular eight-hour work. [Naric v. Naric Workers
Union (1959)]

 What are considered compensable work times especially when travelling?

Travel time [Department of Labor Manual]
(1) – An employee who travels from home before his regular workday and returns to
his home at the end of the workday is engaged in ordinary home-to-work travel which
is NOT worktime, except:
 (a) When called to travel during emergency;
 (b) When travel is done through a conveyance furnished by the employer;
 (c) Travel is done under vexing and dangerous circumstances;
 (d) Travel is done under the supervision and control of the employer.

(2) Travel that is all in the day’s work – Time spent by an employee in travel from
jobsite to jobsite during the workday, must be counted as hours worked. Where an
employee is required to report at a meeting place to receive instructions or to
perform other work there, the travel from the designated place to the workplace is
part of the day’s work.

(3) Travel away from home - Travel that keeps an employee away from home
overnight is travel away from home. Travel away from home is worktime when it cuts
across the employee’s workday. The time is hours worked not only on regular
working hours but also during the corresponding hours on non-working days.

 Four-Fold Test - Employer-employee Relationship

TEST OF EMPLOYER-EMPLOYEE RELATIONSHIP
o (a) Selection and engagement of the employee;
o (b) Payment of wages;
o (c) Power of dismissal; and
o (d) Employer’s power to control the employee’s conduct with respect to the
means and methods by which the work is to be accomplished (Brotherhood
Labor Unity Movement of the Philippines et. al. v. Zamora, G.R. No. 48645, Jan.
7, 1987).
Deductions from wages
It is of the view that the food and lodging, or the electricity and water allegedly
consumed by private respondents in this case were not facilities but supplements. In the
case of Atok-Big Wedge Assn. v. Atok-Big Wedge Co.,[ the two terms were
distinguished from one another in this wise:

“Supplements,” constitute extra remuneration or special privileges or benefits

given to or received by the laborers over and above their ordinary earnings or
wages. “Facilities,” on the other hand, are items of expense necessary for the
laborer’s and his family’s existence and subsistence so that by express provision
of law (Sec. 2[g]), they form part of the wage and when furnished by the employer
are deductible therefrom, since if they are not so furnished, the laborer would
spend and pay for them just the same.

* Rule on Non-diminution of benefits

General Rule:
There is a prohibition against elimination or diminution of benefits [Art. 100]

If the following are met, then the employer cannot remove or reduce benefits:
(1) Ripened company policy: Benefit is founded on a policy which has ripened
into a practice over a long period [Prubankers Assn. vs. Prudential Bank and Co.,
1999]
(2) Practice is consistent and deliberate and
(3) Not due to error in the construction or application of a doubtful or difficult
question of law. [Globe Mackay Cable vs. NLRC, 1988]
(4) The diminution or discontinuance is done unilaterally by the employer.

Wage Distortion

Wage distortion presupposes an increase in the compensation of the lower ranks in an office
hierarchy without a corresponding raise for higher-tiered employees in the same region of the
country, resulting in the elimination or the severe diminution of the distinction between the two
groups. Such distortion does not arise when a wage order gives employees in one branch of a
bank higher compensation than that given to their counterparts in other regions occupying the
same pay scale, who are not covered by said wage order. In short, the implementation of wage
orders in one region but not in others does not in itself necessarily result in wage distortion.
Wage distortion involves four elements:
1. An existing hierarchy of positions with corresponding salary rates
2. A significant change in the salary rate of a lower pay class without a concomitant increase in the
salary rate of a higher one
3. The elimination of the distinction between the two levels
4. The existence of the distortion in the same region of the country.
How to solve wage distortion ?
[LC Art. 124]
 Organized Establishment
(1) Employer and the union shall negotiate to correct the distortions.
(2) Disputes shall be resolved through the grievance procedure.
(3) If still unresolved, voluntary arbitration.

Grievance Procedure (under the CBA) if unresolved, VOLUNTARY arbitration

 Unorganized Establishment
(1) Employers and Employees shall endeavor to correct such distortions.
(2) Disputes shall be settled through the National Conciliation and Mediation Board.
(3) If still unresolved after 10 calendar days of conciliation, it shall be referred to the
appropriate branch of the NLRC – compulsory arbitration
Both the employer and employee cannot use economic weapons.
(4) Employer cannot declare a lock-out; Employee cannot declare a strike because the
law has provided for a procedure for settling
(5) The salary or wage differential does not need to be maintained. [National Federation
of Labor v. NLRC, 1994]

National Conciliation and Mediation Board if unresolved, COMPULSORY arbitration

by the NLRC

E. HOLIDAY PAY/PREMIUM PAY

Holiday pay is a one-day pay given by law to an employee even if he does not work on a regular
holiday. This gift of a day’s pay is limited to each of the 12 regular holidays.
General Rule: All employees
Exceptions:
(1) Those of the government and any of the political subdivision, including
government-owned and controlled corporation;
(2) Those of retail and service establishments regularly employing less than
10 workers (so 1- 9 lang dapat ang employee besh);
(3) Domestic helpers and persons in the personal service of another;
(4) Managerial employees as defined in Book III
(5) Field personnel and other employees whose time and performance is
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. [Sec. 1, Rule IV of the IRR]

* How to compute holiday pay?

 Work on any regular holiday, not
exceeding 8 hours
Work on any regular holiday, if it exceeds 8
hours/overtime
Work on any regular holiday which falls on
the scheduled rest day, not exceeding 8
hours
Work on any regular holiday which falls on
Work on any regular holiday, if it exceeds 8
hours/overtime
Work on any regular holiday which falls on
the scheduled rest day, not exceeding 8
hours
Work on any regular holiday which falls on
Computation
200% of regular daily wage (for the 1st 8
hours)
+ 30% of hourly rate on said day
200% of regular daily wage + 30% of such
amount
Regular holiday-on-rest day rate (200% of
200% of regular daily wage (for the 1st 8
hours)
+ 30% of hourly rate on said day
200% of regular daily wage + 30% of such
amount
Regular holiday-on-rest day rate (200% of

* What are the exceptions?

* Remember all the legal holidays
Double Holiday Pay
According to “DOLE Explanatory Bulletin on Worker’s Entitlement to Holiday Pay on 9
April 1993,” if two holidays fall on the same day:
(1) If unworked, 200% of basic wage.
(2) If worked, 300% of basic wage. [Azucena]

Double Holiday Rule for Monthly-paid employees

For covered employees whose monthly salaries are computed based on 365 days and
for those other employees who are paid using factor 314, or 262, or any other factor
which already considers the payment for the 11 regular holidays, NO additional
payment is due them. [BWC-WHSD Opinion No. 053, s. 1998]

Successive holiday pay

According to IRR, Rule IV, Sec. 10, an employee is entitled to holiday pay for both days,
IF: (1) He is present on day immediately preceding first holiday; or
(2) He works on first holiday, which entitles him to pay on second holiday.

According to “DOLE Explanatory Bulletin on Worker’s Entitlement to Holiday Pay on 9

April 1993,” if two holidays fall on the same day:
(1) If unworked, 200% of basic wage.
(2) If worked, 300% of basic wage. [Azucena]

NOTE: A special working holiday is considered an ordinary working day, so there is no

premium pay.
Social Legislation
MATERNITY LEAVE

[Sec. 14-A of RA 1161 (Social Security Law) as amended by RA 7322 and RA 8282]
Coverage

Every pregnant woman in the private sector, whether married or unmarried, is entitled to the
maternity leave benefits.

This is applicable to both childbirth and miscarriage.

Requisites
(1) Employment: A female employee employed at the time of delivery, miscarriage or
abortion
(2) Contribution: who has paid at least 3 monthly contributions in the 12-month period
immediately preceding the semester of her childbirth, or miscarriage.
(3) Notice: employee notified employer of her pregnancy and the probable date of her
childbirth, which notice shall be transmitted to the SSS in accordance with the rules and
regulations it may provide.

Benefit received
A daily maternity benefit equivalent to 100% of her average daily salary credit for:
(1) 60 days for normal delivery
(2) 78 days for caesarean delivery
Note: This benefit shall NOT be included in the computation of 13th month pay as it is
granted to an employee in lieu of wages which is the basis for computing 13th month.

PATERNITY LEAVE

[RA 8187 (Paternity Leave Act of 1996)]

 Coverage and purpose

Paternity leave is granted to all married male employees in the private and public
sectors, regardless of their employment status (e.g. probationary, regular, contractual,
project basis). The purpose of this benefit is to allow the husband to lend support to his
wife during her period of recovery and/or in nursing her newborn child. [Sec. 3, RA 8187]

Benefit
It shall apply to the first 4 deliveries of the employee’s lawful wife with whom he is
cohabiting.

It shall be for 7 calendar days, with full pay, consisting of basic salary and
mandatory allowances fixed by the Regional Wage Board, if any, provided that his pay
shall not be less than the mandated minimum wage. [Sec. 2, RA 8187]
 Usage of the benefit

Usage of the leave shall be after the delivery, without prejudice to an employer’s
policy of allowing the employee to avail of the benefit before or during the delivery,
provided that the total number of days shall not be more than 7 days for each covered
delivery. (Sec. 5, IRR, RA 8187)

PARENTAL LEAVE
[RA 8972 (Solo Parents’ Welfare Act of 2000)]

Leave benefits granted to a solo parent to enable him/her to perform parental duties and
responsibilities where physical presence is required. [Sec. 3 (d), RA 8972]
Coverage

Any solo parent or individual who is left alone with the responsibility of parenthood due to:

(1) Giving birth as a result of rape or and other crimes against chastity even without a
final conviction of the offender: Provided, That the mother keeps and raises the child;
(2) Death of spouse;
(3) Spouse is detained or is serving sentence for a criminal conviction for at least one (1)
year;
(4) Physical and/or mental incapacity of spouse as certified by a public medical
practitioner;
(5) Legal separation or de facto separation from spouse for at least one (1) year:
Provided, that he/she is entrusted with the custody of the children;
(6) Declaration of nullity or annulment of marriage as decreed by a court or by a church:
Provided, that he/she is entrusted with the custody of the children;
(7) Abandonment of spouse for at least one (1) year;
(8) Unmarried father/mother who has preferred to keep and rear his/her child/children,
instead of having others care for them or give them up to a welfare institution;
(9) Any other person who solely provides parental care and support to a child or
children: Provided, that he/she is duly licensed as a foster parent by the Department of
Social Welfare and Development (DSWD) or duly appointed legal guardian by the court;
and
(10) 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 for at least one (1) year. [Sec. 3 (a), RA 8972]

Conditions for entitlement

A solo parent employee shall be entitled to the parental leave under the following conditions:
(1) He/she has rendered at least one (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/she has presented to his/her employer a Solo Parent Identification Card, which
may be obtained from the DSWD office of the city or municipality where he/she resides.
[Sec 19, Art. V, IRR, RA 8972]
 LEAVES FOR VICTIMS OF VIOLENCE AGAINST WOMEN

[RA 9262 (Anti-Violence against Women and Their Children Act of 2004)]
Coverage and purpose
VAWC leave is granted to women employees who are victims of violence, as defined in RA
9262. The leave benefit covers the days that the women employee has to attend to medical or
legal concerns.

 Requirement for entitlement

To be entitled 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.

 Benefit

In addition to other paid leaves under existing labor laws, company policies, and/or CBA,
the qualified victim-employee shall be entitled to a leave of up to 10 days with full pay,
consisting of basic salary and mandatory allowances fixed by the Regional Wage Board,
if any.

 Usage of the benefit

The usage of the 10-day leave shall be at the option of the woman employee. In the
event that the leave benefit is not availed of, it shall not be convertible into cash and
shall not be cumulative.

SPECIAL LEAVE BENEFITS (SLB) FOR WOMEN [RA 9710 (The Magna Carta of Women),
DOLE DO No. 112, Series of 2011 as amended by DO No. 112-A Series of 2012]

 Special leave benefit for women

A female employee’s leave entitlement of two (2) months with full pay from her employer
based on her gross monthly compensation following surgery caused by gynecological
disorders, provided that she has rendered continuous aggregate employment service of
at least six (6) months for the last 12 months.

 Gynecological disorders
Disorders that would require surgical procedures such as, but not limited to, dilatation
and curettage and those involving female reproductive organs such as the vagina,
cervix, uterus, fallopian tubes, ovaries, breast, adnexa and pelvic floor, as certified by a
competent physician. It shall also include hysterectomy, ovariectomy, and mastectomy

 Gross monthly compensation

The monthly basic pay plus mandatory allowances fixed by the regional wage boards.
[Sec. 7, Rule II, IRR, RA 9710]
  At least six months continuous aggregate employment service for the last 12
months prior to surgery
The woman employee should have been with the company for 12 months prior to
surgery. An aggregate service of at least six (6) months within the said 12-month period
is sufficient to entitle her to avail of the special leave benefit.

 Competent physician
A medical doctor preferably specializing in gynecological disorders or is in the position to
determine the period of recuperation of the woman employee. [Sec. 1, DO 112, as
amended]
 Conditions for entitlement of special leave
Any female employee, regardless of age and civil status, shall be entitled to a special
leave benefit, provided she has complied with the following conditions:
(1) She has rendered at least 6 months continuous aggregate employment service
for the last 12 months prior to surgery;
(2) She has filed an application for special leave
(3) She has undergone surgery due to gynecological disorders as certified by a
competent physician. [Sec. 2, DO 112]

Application for special leave

Application before surgery

The employee shall file her application for leave with her employer within a reasonable
period of time from the expected date of surgery, or within such period as may be
provided by company rules and regulations or by CBA.

Application after surgery

Prior application for leave shall not be necessary in cases requiring emergency surgical
procedure, provided that the employer shall be notified verbally or in written form within a
reasonable period of time and provided further that after the surgery or appropriate
recuperating period, the female
MINORS
Child - refers to any person under 18 years of age

Child labor - refers to any work or economic activity performed by a child that subjects him/her
to any form of exploitation or is harmful to his/her health and safety or physical, mental or
psychosocial development

Working child - refers to any child engaged as follows:

(1) when the child is below eighteen (18) years of age, in work or economic activity that
is not child labor as defined in the immediately preceding subparagraph; and

(2) when the child is below fifteen (15) years of age, in work where he/she is directly
under the responsibility of his/her parents or legal guardian and where only
members of the child‘s family are employed; or in public entertainment or information.
[SEC 3, DO 65-04]
Exceptions
(1) Child works directly under the sole responsibility of his parents or legal
guardian and where only members of the ER’s family are employed, provided:
(a) his employment does NOT endanger his life, safety, health and
morals,
(b) nor impairs his normal development, and
(c) the parent or legal guardian shall provide the said minor child with the
prescribed primary and/or secondary education; [Sec. 12 of RA 7610 as
amended by RA 7658]

(2) child’s employment or participation in public entertainment or information

through cinema, theater, radio or television is essential, provided that [Sec. 12 of
RA 7610 as amended by RA 7658]:
(a) employment does NOT involve ads or commercials promoting alcohol,
tobacco and its by-products or violence [Sec. 14, RA 7610]
(b) the employment contract is concluded by the child’s parents or
guardian, and approved by DOLE
(c) The ER shall ensure the protection, health, safety and morals of the
child
(d) The ER shall institute measures to prevent the child’s exploitation or
discrimination taking into account the system and level of remuneration,
and the duration and arrangement of working time
(e) The ER shall formulate and implement, subject to the approval and
supervision of competent authorities, a continuing program for training
and skills acquisition of the child. [Sec. 12 of RA 7610 as amended by RA
7658]
Employment of Children from 15 to 18

Employment is allowed but restricted to non-hazardous work. Non-hazardous work shall mean
any work or activity in which the EE is not exposed to any risk which constitutes an imminent
danger to his safety and health. [Sec. 3, Rule XII, Book III, IRR of LC]

EMPLOYMENT OF HOUSEHELPERS
Relevant Law: RA 10361 (Batas Kasambahay or Domestic Worker’s Act)
Note: RA 10361 has expressly repealed Chapter III, “Employment of Househelpers”, Title III of
Book III of the Labor Code

Domestic work - This refers to work performed in or for a household or households. [Sec 4(C).
RA 10361]

Domestic worker or “Kasambahay” - Refers to any person engaged in domestic work within
an employment relationship such as, but not limited to, the following: general househelp,
nursemaid or “yaya”, cook, gardener, or laundry person. [Sec 4(D). RA 10361]
The term domestic worker or “kasambahay” excludes any person who performs domestic work
only occasionally or sporadically and not on an occupational basis. [Sec.4(D), RA 10361]

Employment Age of Domestic Workers: Unlawful to employ any person below fifteen (15) years
of age as a domestic worker [Sec. 16, RA 10361]
Persons between 15-18 years old should only be employed in non-hazardous work. [DO 4-99
Sec. 4]
Daily Rest Period: Aggregate of eight (8) hours per day. [Sec. 20, RA 10361]
Employment Certification: ER shall give the househelper a written statement of the nature and duration
of the service and his or her work performance as househelper upon severance. [Sec. 35, RA 10361]

 What are the acts/ work included in the Law

SEC. 23. Extent of Duty. – The domestic worker and the employer may mutually agree for the
former to temporarily perform a task that is outside the latter’s household for the benefit of
another household. However, any liability that will be incurred by the domestic worker on
account of such arrangement shall be borne by the original employer. In addition, such work
performed outside the household shall entitle the domestic worker to an additional payment of
not less than the existing minimum wage rate of a domestic worker. It shall be unlawful for the
original employer to charge any amount from the said household where the service of the
domestic worker was temporarily performed.
N. EMPLOYMENT OF HOMEWORKERS
 Home worker v. House Helper (Kasambahay)
- House helper - Refers to any person Industrial Homeworker - a worker who is
engaged in domestic work within an engaged in industrial homework
employment relationship such as, but not
limited to, the following: general househelp,
nursemaid or “yaya”, cook, gardener, or laundry
person.

Industrial homework
(1) Is a system of production under which work for an ER or contractor is carried out by a
homeworker at his/her home.
(2) Materials may or may not be furnished by the ER or contractor.
(3) Decentralized form of production, where there is ordinarily very little supervision or
regulation of methods of work. (Sec. 2(a), Rule XIV, Book III, IRR)

Employer means any person who

(1) Acts as a contractor – delivers or causes to be delivered any goods, articles, or
materials to be processed or fabricated in or about a home and thereafter to be returned
or to be disposed of or distributed in accordance with ER’s direction; OR
(2) Sells any goods, articles, or materials to be processed or fabricated in or about a
home and then rebuys them after. [Art. 153, LC]

Payment - How, Where, When, To whom

Foreign Principal and Local Recruitment Agency Relationship

Which is legal/illegal?

There is "labor-only" contracting where the person supplying workers to an employer does not
have substantial capital or investment in the form of tools, equipment, machineries, work
premises, among others, and the workers recruited and placed by such person are performing
activities which are directly related to the principal business of such employer. In such cases,
the person or intermediary shall be considered merely as an agent of the employer who shall be
responsible to the workers in the same manner and extent as if the latter were directly employed
by him.

Info on Job only (exact word na job only kay wala sa mga notes)

Art. 106, LC: Contractor or subcontractor. Whenever an employer enters into a contract with
another person for the performance of the former’s work, the employees of the contractor and of
the latter’s subcontractor, if any, shall be paid in accordance with the provisions of this Code.

Independent Contracting – the subject of the contract is the performance of a job, and the
contractor is an independent businessman who is capable of doing the job by his own means
and methods.