LABOR LAW

I. FUNDAMENTAL PRINCIPLES

Constitutional rights granted to workers (Sec. 3, Art. XIII of the 1987 Constitution)
1. Right to full employment and equality of employment opportunities;
2. Self-organization;
3. Collective bargaining and negotiations;
4. Strike and other peaceful concerted activities;
5. Security of tenure;
6. Humane conditions of work;
7. A living wage; and
8. The right to participate in policy and decision-making processes affecting their rights and
benefits.

Art. 1700
The relations between capital and labor are not merely contractual. They are so impressed with public
interest that labor contracts must yield to the common good. Therefore, such contracts are subject to
the special laws on labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working
conditions, hours of labor and similar subjects.

Article 1703. No contract which practically amounts to involuntary servitude, under any guise
whatsoever, shall be valid.

II. RECRUITMENT AND PLACEMENT

Recruitment and Placement (Art. 13 [b]) – refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers, and includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether for profit or not: Provided, That any person or
entity which, in any manner, offers or promises for a fee, employment to two or more persons shall be
deemed engaged in recruitment and placement.

LICENSE VS. AUTHORITY

"License" means a document issued by the DOLE Secretary authorizing a person, partnership or
corporation to operate a private recruitment/ manning agency.

“Authority” refers to the document issued by the DOLE Secretary authorizing the officers, personnel,
agents or representatives of a licensed recruitment/ manning agency to conduct recruitment and
placement activities in a place stated in the license or in a specified place.
 ILLEGAL RECRUITMENT (Labor Code)

 Under the Labor Code

Based on paragraph (a) of Article 38, illegal recruitment as defined therein, in relation to Articles 13
(b) and 34, may be committed only by non-licensees or non-holders of authority.

Illegal recruitment, under 38 of the Labor Code, is any recruitment activities, including the prohibited
practices enumerated under Article 34 of the Labor Code, to be undertaken by non-licensees or non-
holders of authority.

Article 34. Prohibited practices. It shall be unlawful for any individual, entity, licensee, or holder of
authority:
a) To charge or accept, directly or indirectly, any amount greater than that specified in the
schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any
amount greater than that actually received by him as a loan or advance;
b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under this Code.
d) To induce or attempt to induce a worker already employed to quit his employment in order to
offer him to another unless the transfer is designed to liberate the worker from oppressive
terms and conditions of employment;
e) To influence or to attempt to influence any person or entity not to employ any worker who has
not applied for employment through his agency;
f) To engage in the recruitment or placement of workers in jobs harmful to public health or
morality or to the dignity of the Republic of the Philippines;
g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized
representatives;
h) To fail to file reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as
may be required by the Secretary of Labor.
i) To substitute or alter employment contracts approved and verified by the Department of Labor
from the time of actual signing thereof by the parties up to and including the periods of
expiration of the same without the approval of the Secretary of Labor;
j) To become an officer or member of the Board of any corporation engaged in travel agency or to
be engaged directly or indirectly in the management of a travel agency; and
k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under this Code and its implementing rules
and regulations.
 ILLEGAL RECRUITMENT (Migrant Workers and Overseas Filipinos Act [R.A. No. 8042])

 Under the Migrant Workers and Overseas Filipinos Act of 1995 (RA 8042, as amended)

R.A. No. 8042 has broadened this concept of illegal recruitment as far as overseas placement and
recruitment activities are concerned. Consequently, the acts described in the following provision of
this law that may be committed by any person, constitute illegal recruitment, regardless of whether
such person is a non-licensee, non-holder, licensee or holder of authority.

Illegal recruitment (under Sec. 6, R.A. No. 8042 as amended R.A. No. 10022) - illegal recruitment shall
mean any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers
and includes referring, contract services, promising or advertising for employment abroad, whether for
profit or not, when undertaken by non-licensee or non-holder of authority:

Provided, That any such non-licensee or non-holder who, in any manner, offers or promises for a fee
employment abroad to two or more persons shall be deemed so engaged.

It shall likewise include the following acts, whether committed by any person, whether a non-licensee,
non-holder, licensee or holder of authority:

(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay or
acknowledge any amount greater than that actually received by him as a loan or advance;

(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;

(c) To give any false notice, testimony, information or document or commit any act of misrepresentation
for the purpose of securing a license or authority under the Labor Code, or for the purpose of
documenting hired workers with the POEA, which include the act of reprocessing workers through a job
order that pertains to nonexistent work, work different from the actual overseas work, or work with a
different employer whether registered or not with the POEA;

(d) To include or attempt to induce a worker already employed to quit his employment in order to offer
him another unless the transfer is designed to liberate a worker from oppressive terms and conditions
of employment;

(e) To influence or attempt to influence any person or entity not to employ any worker who has not
applied for employment through his agency or who has formed, joined or supported, or has contacted
or is supported by any union or workers' organization;

(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or
to the dignity of the Republic of the Philippines;

(h) To fail to submit reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as may be
required by the Secretary of Labor and Employment;
(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by
the Department of Labor and Employment from the time of actual signing thereof by the parties up to
and including the period of the expiration of the same without the approval of the Department of Labor
and Employment;

(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the
Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the
management of travel agency;

(k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations, or for any other reasons, other than those authorized under the Labor Code
and its implementing rules and regulations;

(l) Failure to actually deploy a contracted worker without valid reason as determined by the Department
of Labor and Employment;

(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and
processing for purposes of deployment, in cases where the deployment does not actually take place
without the worker's fault. Illegal recruitment when committed by a syndicate or in large scale shall be
considered an offense involving economic sabotage; and

(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.

TYPES OF ILLEGAL RECRUITMENT

1. Simple Illegal Recruitment

2. Illegal Recruitment committed by a Syndicate
3. Illegal Recruitment committed on Large Scale

ILLEGAL RECRUITMENT AS ECONOMIC SABOTAGE

Illegal recruitment is considered a crime involving economic sabotage when the commission thereof is
attended by the following qualifying circumstances:
a. When committed by a syndicate
b. When committed in large scale

SIMPLE ILLEGAL RECRUITMENT

According to the 2011 case of Delia D. Romero v. People, the two (2) elements of the crime of simple
illegal recruitment are:

1. Non-licensee or Non-holder of Authority

The offender has no valid license or authority required by law to enable one to lawfully engage
in recruitment and placement of workers; and

2. Performance of Recruitment and Placement

He undertakes either any activity within the meaning of ”recruitment and placement” defined
under Article 13(b), or any prohibited practices enumerated under Article 34 of the Labor Code.
 ILLEGAL RECRUITMENT BY A SYNDICATE

Illegal Recruitment is deemed committed by a syndicate if it is carried out by a group of three (3) or
more persons conspiring or confederating with one another.

Elements:
1. There are at least three (3) persons who, conspiring and/or confederating with one another,
carried out any unlawful or illegal recruitment and placement activities; and
2. Said persons are not licensed or authorized to do so, either locally or overseas.

ILLEGAL RECRUITMENT IN LARGE SCALE

Illegal recruitment is deemed committed in large scale if committed against three (3) or more persons
individually or as a group.

Elements:
1. The accused engages in the recruitment and placement of workers or committed any prohibited
activities under Article 34 of the Labor Code; and
2. The accused commits the same against three (3) or more persons individually or as a group.

ILLEGAL RECRUITMENT VS. ESTAFA

Article 315, RPC. Swindling (estafa). Any person who shall defraud another:
xxx
2. By means of any of the following false pretenses or fraudulent acts executed prior to or
simultaneously with the commission of the fraud:

(a) By using fictitious name, or falsely pretending to possess power, influence, qualifications,
property, credit, agency, business or imaginary transactions, or by means of other similar
deceits.

Elements:
1. That the accused defrauded another
a. by abuse of authority; or
b. by means of deceit; and
2. That damage or prejudice capable of pecuniary estimation is caused to the offended party or
third person.

People v. Gallo
The accused-appellant was convicted not only for illegal recruitment but also for estafa because all the
elements of estafa are present:
a. The accused-appellant, together with the other accused at large, deceived the complainants into
believing that the agency had the power and capability to send them abroad for employment;
b. That there were available jobs for them in Korea as factory workers;
c. That by reason or on the strength of such assurance, the complainants parted with their money
in payment of the placement fees;
d. That after receiving the money, accused-appellant and his co-accused went into hiding by
changing their office locations without informing complainants; and
e. That complainants were never deployed abroad.
 LIABILITY OF LOCAL RECRUITMENT AGENCY AND FOREIGN EMPLOYER

Joint and several liability – is the nature of the liability of the principal/employer and the
recruitment/manning agency, for any and all claims arising out of the implementation of the
employment contract involving Filipino workers for overseas deployment.

Note: If the recruitment/manning agency is a juridical being, the 1corporate officers and directors or
2
partners, as the case may be, shall themselves be jointly and severally liable with the corporation or
partnership for the aforesaid claims and damages.

THEORY OF IMPUTED KNOWLEDGE

The theory of imputed knowledge is a rule that any information material to the transaction, either
possessed by the agent at the time of the transaction or acquired by him before its completion, is
deemed to be the knowledge of the principal, at least insofar as the transaction is concerned, even
though the knowledge, in fact, is not communicated to the principal at all.

TERMINATION OF CONTRACT OF MIGRANT WORKER WITHOUT JUST OR VALID CAUSE

par. 5, Sec. 10, R.A. No. 8042

“In case of termination of overseas employment without just, valid or authorized cause as
defined by law or contract, the workers shall be entitled to the full reimbursement of his placement fee
with interest of twelve percent (12%) per annum, plus his salaries for the unexpired portion of his
employment contract or for three (3) months for every year of the unexpired term, whichever is less.”

Old Doctrine
Prior to the Serrano doctrine, the entitlement to monetary claims of an illegally dismissed OFW depends
on the duration of his contract.
a. If the duration of the employment contract is less than one (1) year:
an illegally dismissed OFW shall be entitled to all his salaries for the unexpired portion thereof;
or
b. If the duration of the employment contract is at least one (1) year or more:
such OFW shall be entitled to “whichever is less” between his “salaries for the unexpired portion
of his employment contract” or his salaries “for three (3) months for every year of the unexpired
term.”

Serrano Doctrine (Serrano v. Gallant Maritime Services, Inc):

The old ruling has been rendered nugatory by the Serrano ruling which declared the afore-
quoted qualification – “or for three months for every year of the unexpired term, whichever is less” null
and unconstitutional for being discriminatory and violative of the equal protection of the law clause.

Consequent to the Serrano ruling, an illegally dismissed OFW is now entitled to:
1. all the salaries for the entire unexpired portion of their employment contracts, irrespective
of the stipulated term or duration thereof; and
2. full reimbursement of placement fees and deductions made with interest at 12% per
annum.
 DIRECT HIRING

Direct Hiring – refers to the process of directly hiring workers by employers for overseas employment as
authorized by the DOLE Secretary and processed by the POEA, including:
1. Those hired by international organizations;
2. Those hired by members of the diplomatic corps;
3. Name hires or workers who are able to secure overseas employment opportunity with an
employer without the assistance or participation of any agency.

EMPLOYMENT OF NON-RESIDENT ALIENS

 What is an ALIEN EMPLOYMENT PERMIT (AEP)?

AEP - a document issued by the DOLE Secretary through the DOLE-Regional Director who has
jurisdiction over the intended place of work of the foreign national, authorizing the foreign national to
work in the Philippines.

 Who are required to procure AEP?

All foreign nationals who intend to engage in gainful employment in the Philippines are required to
apply
for AEP.

“Gainful employment” refers to a state or condition that creates an employer-employee relationship

between the Philippine-based company and the foreign national where the former has the power to
hire or dismiss the foreign national from employment, pays the salaries or wages thereof and has
authority to control the performance or conduct of the tasks and duties.

 What are the categories of foreign nationals EXEMPTED from securing AEP?
a) All members of the diplomatic service and foreign government officials accredited by and with
reciprocity arrangement with the Philippine government;
b) Officers and staff of international organizations of which the Philippine government is a member, and
their legitimate spouses desiring to work in the Philippines;
c) All foreign nationals granted exemption by law;
d) Owners and representatives of foreign principals whose companies are accredited by the POEA, who
come to the Philippines for a limited period and solely for the purpose of interviewing Filipino applicants
for employment abroad;
e) Foreign nationals who come to the Philippines to teach, present and/or conduct research studies in
universities and colleges as visiting, exchange or adjunct professors under formal agreements between
the universities or colleges in the Philippines and foreign universities or colleges; or between the
Philippine government and foreign government: provided that the exemption is on a reciprocal basis;
and
f) Permanent resident foreign nationals and probationary or temporary resident visa holders under
Section 13 of the Philippine Immigration Act of 1940.
 What are the categories of foreign nationals EXCLUDED from securing AEP?
a) Members of the governing board with voting rights only and do not intervene in the management of
the corporation or in the day-to-day operation of the enterprise.
b) Corporate officers as provided under the Corporation Code of the Philippines, Articles of
Incorporation, and By-laws of the Corporation such as President, Secretary and Treasurer.
c) Those providing consultancy services who do not have employers in the Philippines.
d) Intra-corporate transferee who is a manager, executive or specialist as defined below in accordance
with Trade Agreements and an employee of the foreign service supplier for at least one (1) year prior to
deployment to a branch, subsidiary, affiliate or representative office in the Philippines:
(i) an EXECUTIVE: a natural person within the organization who primarily directs the
management of the organization and exercises wide latitude in decision making and receives
only general supervision or direction from higher level executives, the board of directors or
stockholders of the business; an executive would not directly perform tasks related to the actual
provision of the service or services of the organization;
(ii) a MANAGER: a natural person within the organization who primarily directs the organization/
department/ subdivision and exercises supervisory and control functions over other supervisory,
managerial or professional staff; does not include first-line supervisors unless employees
supervised are professionals; does not include employees who primarily perform tasks
necessary for the provision of the service; or
(iii) a SPECIALIST: a natural person within the organization who possesses knowledge at an
advanced level of expertise essential to the establishment/provision of the service and/or
possesses proprietary knowledge of the organization's service, research equipment, techniques
or management; may include, but is not limited to, members of a licensed profession.
e) Contractual service supplier who is a manager, executive or specialist and an employee of a foreign
service supplier which has no commercial presence in the Philippines:
(i) who enters the Philippines temporarily to supply a service pursuant to a contract between
his/her employer and a service consumer in the Philippines;
(ii) must possess the appropriate educational and professional qualifications; and
(iii) must be employed by the foreign service supplier for at least one (1) year prior to the supply
of service in the Philippines.

• What is the validity of an AEP?

One (1) year is the validity of an AEP.
Exception: When employment contract provides otherwise but not to exceed three (3) years.
The AEP may be renewed subject to the conditions imposed by law.

SUSPENSION OR CANCELLATION OF LICENSE OR AUTHORITY

Recruitment Violations and Related Cases

a. Jurisdiction of the POEA over recruitment violations and related cases:
The POEA has original and exclusive jurisdiction to hear and decide:
 i. All cases which are administrative in character, involving or arising out of violation of rules
and regulations relating to licensing and registration and employment agencies or entities,
including refund of fees collected from workers and violation of the condition for the
issuance of license to recruit workers.
ii. Disciplinary action cases and other special cases which are administrative in character,
involving employers, principals, contracting partners and Filipino migrant workers.

b. Cases not falling within the jurisdiction of the POEA:

1. Money claims cases of OFWs
Jurisdiction is now transferred to the Labor Arbiters of the NLRC by virtue of Sec. 10, RA No.
8042, as amended.
2. Quasi-delict or tort cases
Jurisdiction over these cases belong to the regular courts.
3. Enforcement of foreign judgment
Such claim must be brought before the regular courts.
4. Local employment
Jurisdiction over cases involving local employment contract, and not overseas contract, lies
with the Labor Arbiters of the NLRC.

REGULATORY AND VISITORIAL POWERS OF THE DOLE SECRETARY

a. Regulatory Power (Article 36, Labor Code)

Art. 36. Regulatory power. The Secretary of Labor shall have the power to restrict and regulate
the recruitment and placement activities of all agencies within the coverage of this Title and is
hereby authorized to issue orders and promulgate rules and regulations to carry out the
objectives and implement the provisions of this Title.

b. Visitorial Power (Article 37, Labor Code)

Art. 37. Visitorial Power. The Secretary of Labor or his duly authorized representatives may, at
any time, inspect the premises, books of accounts and records of any person or entity covered
by this Title, require it to submit reports regularly on prescribed forms, and act on violation of
any provisions of this Title.

DISTINCTIONS OF THE VISITORIAL POWERS OF THE DOLE SECRETARY UNDER

ARTICLES 274 AND 128 OF THE LABOR CODE.

In Article 37, the visitorial power pertains to the inspection of the premises, books of accounts
and records of persons and entities engaged in the recruitment and placement of workers for
local or overseas employment. It also includes the power to inquire the submission of reports
regularly on certain prescribed forms and to act on any violation of Title I, Book I of the Labor
Code.

In Article 128, the visitorial and enforcement power of the DOLE Secretary or the DOLE Regional
Directors, his duly authorized representatives, treated in Article 128 pertains to the inspection
of premises, books of accounts and records of employers to determine violations of the Labor
Code and any labor laws, wage orders or rules and regulations issued pursuant thereto.

Article 274 dwells on the visitorial power of the DOLE Secretary to inquire into the financial
activities of legitimate labor organizations.
 PROHIBITED ACTIVITIES

Besides illegal recruitment, the law additionally provides that it shall also be unlawful for any person or
entity to commit the following prohibited acts:
(1) Grant a loan to an overseas Filipino worker with interest exceeding eight percent (8%) per
annum, which will be used for payment of legal and allowable placement fees and make the
migrant worker issue, either personally or through a guarantor or accommodation party,
postdated checks in relation to the said loan;
(2) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is
required to avail of a loan only from specifically designated institutions, entities or persons;
(3) Refuse to condone or renegotiate a loan incurred by an overseas Filipino worker after the
latter's employment contract has been prematurely terminated through no fault of his or her
own;
(4) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is
required to undergo health examinations only from specifically designated medical clinics,
institutions, entities or persons, except in the case of a seafarer whose medical examination cost
is shouldered by the principal/shipowner;
(5) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is
required to undergo training, seminar, instruction or schooling of any kind only from specifically
designated institutions, entities or persons, except fpr recommendatory trainings mandated by
principals/shipowners where the latter shoulder the cost of such trainings;
(6) For a suspended recruitment/manning agency to engage in any kind of recruitment activity
including the processing of pending workers' applications; and
(7) For a recruitment/manning agency or a foreign principal/employer to pass on the overseas
Filipino worker or deduct from his or her salary the payment of the cost of insurance fees,
premium or other insurance related charges, as provided under the compulsory worker's
insurance coverage.

LABOR STANDARDS

A. Coverage
Employees in all establishments, whether operated for profit or not are covered by the law
on labor standards.

B. Exclusions
The following are excluded from the coverage of the law on labor standards: (GMM-DOWN)
a. Government employees;
b. Managerial employees;
c. Members of the family of the employer;
d. Domestic servants and persons in the personal service of another;
e. Other officers or members of a managerial staff;
f. Workers paid by results; and
g. Non-agricultural field personnel.
PRINCIPLES IN DETERMINING HOURS WORKED

 What are compensable hours worked?

The following shall be considered as compensable hours worked:
a) All time during which an employee is required to be on duty or to be at the employer’s premises or to
be at a prescribed workplace; and
b) All time during which an employee is suffered or permitted to work.

“Fair day’s wage for a fair day’s labor,” remains the basic factor in determining the employees’ wages
and backwages.

What is the total normal hours of work per day?

Eight (8) hours daily.

What is overtime work?

Any work in excess of said eight (8) normal hours is considered overtime work.

What are flexible working hours?

“Flexible work arrangements” refer to alternative arrangements or schedules other than the traditional
or
standard work hours, workdays and workweek. The effectivity and implementation of any of the flexible
work arrangements should be temporary in nature.

COMPRESSED WORK WEEK

“Compressed Workweek” or “CWW” refers to a situation where the normal workweek is reduced to less
than six (6) days but the total number of work-hours of 48 hours per week remains. The normal workday
is increased to more than eight (8) hours but not to exceed twelve (12) hours, without corresponding
overtime premium. This concept can be adjusted accordingly in cases where the normal workweek of
the firm is five (5) days.

POWER INTERRUPTIONS/BROWNOUTS

What are the effects of power interruptions/brownouts?

The following are the effects of work interruption due to brownouts:
a. Brown-outs of short duration but not exceeding twenty (20) minutes shall be treated as worked or
compensable hours whether used productively by the employees or not.
b. Brown-outs running for more than twenty (20) minutes may not be treated as hours worked
provided any of the following conditions are present:
1. The employees can leave their workplace or go elsewhere whether within or without the
work premises; or
2. The employees can use the time effectively for their own interest.
c. In each case, the employer may extend the working hours of his employees outside the regular
schedules to compensate for the loss of productive man-hours without being liable for overtime pay.

MEAL BREAK
General Rule on Meal Period
As a general rule, every employer is required to give his employees, regardless of sex, not less than one
(1) hour (or 60 minutes) time-off for regular meals.
Shortening of Meal Time to not less than 20 minutes, when “compensable”
In the following cases, a meal period of not less than twenty (20) minutes may be given by the employer
provided that such shorter meal period is credited as compensable hours worked of the employee:
a. Where the work is non-manual work in nature or does not involve strenuous physical exertion;
b. Where the establishment regularly operates for not less than sixteen (16) hours a day;
c. In cases of actual or impending emergencies or when there is urgent work to be performed on
machineries, equipment or installations to avoid serious losses which the employer would
otherwise suffer; and
d. Where the work is necessary to prevent serious loss of perishable goods.

Effect of shortening of Meal Time to less than 20 minutes

The law does not allow that meal time be shortened to less than twenty (20) minutes. If so reduced, the
same shall no longer be considered meal time but merely as rest period or coffee break and, therefore,
becomes compensable working time.

WAITING TIME
When waiting time is compensable:
Waiting time spent by an employee shall be considered as working time:
a. if waiting is an integral part of his work; or
b. if the employee is required or engaged by the employer to wait.
Note: Time spent waiting for work is compensable if it is spent “primarily for the benefit of the employer
and its business.”
Rule: In determining whether waiting time constitutes hours worked, 1the amount of control the
employer has over the employee during the waiting time, and 2whether the employee can effectively
use that time for his own purposes is material.

COMMUTING TIME AND TRAVEL TIME

a. Travel from home to work
It is a normal incident of employment and therefore not considered as hours worked.
b. Travel that is all in the day’s work
Time spent by an employee in travel as part of his principal activity, such as travel from jobsite
to jobsite during the workday, must be counted as hours worked.
c. Travel away from home
o Travel away from home is clearly working time when it cuts across the employee’s
workday. The employee is simply substituting travel for other duties.
o The time is not only hours worked on regular working days during normal working
hours, but also during the corresponding hours on non-working days.
o Regular meal period is not counted.
 o DOLE does not consider as working time the time spent in travel away from home
outside of regular working hours as a passenger on an airplane, train, boat, bus or
automobile.
o Any work which an employee is required to perform while travelling must be counted as
hours worked. (working while riding)

OVERTIME WORK
Overtime work – work rendered after normal eight (8) hours of work.
Premium pay – means the additional compensation required by law for work performed within eight (8)
hours on non-working days, such as regular holidays, special holidays and rest days.
Emergency Overtime Work
General Rule: No employee may be compelled to render overtime work against his will.
Exceptions when employee may be compelled to render overtime work:
(IRR of Labor Code, Book 3, Rule 1, Section 10)
SECTION 10. Compulsory overtime work. —
In any of the following cases, an employer may require any of his employees to work beyond eight (8)
hours a day, provided that the employee required to render overtime work is paid the additional
compensation required by these regulations:
(a) When the country is at war or when any other national or local emergency has been declared by
Congress or the Chief Executive;
(b) When overtime work is necessary to prevent loss of life or property, or in case of imminent danger to
public safety due to actual or impending emergency in the locality caused by serious accident, fire,
floods, typhoons, earthquake, epidemic or other disaster or calamities;
(c) 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 causes of similar nature;
(d) When the work is necessary to prevent loss or damage to perishable goods;
(e) When the completion or continuation of work started before the 8th hour is necessary to prevent
serious obstruction or prejudice to the business or operations of the employer; or
(f) When overtime work is necessary to avail of favorable weather or environmental conditions where
performance or quality of work is dependent thereon.

In cases not falling within any of these enumerated in this Section, no employee may be made to work
beyond eight hours a day against his will.

Undertime Not Offset by Overtime

The following rules shall apply:
1. Undertime work on any particular day shall not be offset by overtime on any other day.
2. 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 by law such as overtime pay or
night shift differential pay.
 NIGHT SHIFT DIFFERENTIAL
a. How reckoned.
Night shift differential is equivalent to 10% of employee’s regular wage for each hour of work performed
between 10:00 p.m. and 6:00 a.m. of the following day.

PART-TIME WORK
A definition proposed by the International Labor Organization (ILO) describes “part-time work” as “a
single, regular or voluntary form of employment with hours of work substantially shorter than those
considered as normal in the establishment.”

Part-time Worker – is an employed person whose normal hours of work are less than those of
comparable full-time workers.

Indicators of Regular Employment of a Part-time Worker:

A part time worker is considered a regular employee under any of the following conditions:
1. The terms of his employment show that he is engaged as regular or permanent employee;
2. The terms of his employment indicate that he is employed for an indefinite period;
3. He has been engaged for a probationary period and has continued in his employment even after
the expiration of the probationary period; or
4. The employee performs activities which are usually necessary or desirable in the usual business
or trade of the employer.

Note:
o One’s regularity of employment is not determined by the number of hours one works but by the
nature and by the length of time one has been in that particular job.

Rules on Part-time Teachers

o Part-time teachers cannot acquire permanent tenure. Only when one has served as a full-time
teacher can he acquire permanent or regular status.
o In the case of UST v. NLRC, SC ruled that for a private school teacher to acquire permanent
status in employment, the following requisites must concur:
1. The teacher is a full-time teacher;
2. The teacher must have rendered three (3) consecutive years of service; and
3. Such service must have been satisfactory.
o Part-time teachers enjoy security of tenure only during the effectivity of the part-time
employment contract.