Notes

Slide 3
Constitution- Highest law of the land. All law, rules and regulations created within
the Philippines must be in accordance with the Provision of the Constitution. This
is where principles from the Philippines Labor Code like “Due process, No Work No
Pay, Social Justice” are taken from.
Contract- Employment Contract are considered binding between the employer and
employee. Any violation of its provision by the employee would be considered a
breach authorizing the employer to terminate the services of the former in
accordance with the procedure laid down by the labor code.
Company Policy- Set of rules and regulations provided by the company to maintain
order and control of its employee’s conduct.
Legislation- Special laws enacted by the legislative branch of the government (i.e
expanded maternity leave, Magna Carta leave)

Slides 7, 8, 9
Employer-Employee Relationship (e-e relationship)
Why do we need to know this?
- Remember that if there is no e-e relationship the labor code will not apply to
the parties involved. Labor law is all about the e-e relationship. The
applicability of the labor code is dependent upon the existence of e-e
relationship. If the relationship is other than employer-employee then the
principle or ordinary civil code will be applicable.
E-E relationship can be established usually by the most important proof of your
employment with a company which is an employment contract.
E-E relationship will begin at the moment the employee accepted the job offer.
Elements of Employer-employee relationship (the four should be present)
a.) Selection and engagement of the employee
b.) Payment of wages
c.) Power of dismissal/discipline
d.) Power of Control
The Control Test
The person to whom the services are being rendered have control not only to the
result but also to the way how to achieve this result. There should be control not
only to the ends but also to the means. Otherwise, if for example the control is only
over the ends, then it will be a form of contractorship agreement and not an
employer-employee relationship.
Contractorship agreement
The person to perform the service is provided by a 3rd party for a principal. In this
type of engagement, the Contractor is the one who has control over the means and
the principal is the one who controls the result/ends. The employees provided by
a 3rd party is not considered the employee of the principal.
When do we commence E-E?
Upon hiring of a person, usually by sending the offer and the employee accepting
and signing it.

Slides 10, 11
Employee Classification
Employer- Art.218 (e) “includes any person acting in the interest of an employer
directly or indirectly.
The law uses the word “includes” not “mean” reason is not to give a very limited
definition to what an employer is. This is very broad definition.
Employee- similar with the definition provided for the employer, the law didn’t
make any specific limitation. As defined under Art. 218 (f) it embraces not only
those who have ceased as employees as a consequence of a labor dispute or
because of unfair labor practice.
Statutory classification of employees
1.) According to rank
2.) According to nature of engagement
According to Rank
1.) Managerial- those vested with powers to promulgate rules, execute
management policies, hire, transfer, lay-off, recall discharge suspend an employee.
In other words, HRBPS, in house counsel, managers. (Sila ung mga nagdidisplina
ngtatanggal, issue NTE, Warning, policies.)
2.) Supervisors- Those who act in the interest of the employer and effectively
recommend managerial actions that requires independent judgment. In a sense
they are those who are one level below the managers. Supervises employees.
3.) Rank-and-File employee- neither manager nor supervisors. Usually in the
operations.
Significance of the classification
This classification is significant for the purpose of determining:
As to the degree of culpability in disciplinary cases
Managerial employees and supervisory employees are subject to stricter norm of
discipline than rank-and-file employees. Managerial employees and supervisory
may be dismissed by the mere existence of a basis for believing that such employee
has breached the trust of his employer. In the case of rank and file employees, proof
of involvement in the questioned acts is required. Mere uncorroborated assertions
and accusation by the employer will not suffice (Caoile vs. NLRC, 299 SCRA 76).
According to the nature of engagement
1.) Regular employees- those engaged to perform activities usually necessary or
desirable in the usual business or trade of the employer. (i.e Call center agents for
a BPO industry, cooks for restaurants). These are those people without which the
business will not run.
2.) Casual employees- those engaged to perform activities not usually necessary or
desirable in the usual business or trade of the employer. (Gardener for a bank).
These are those people who even without them the business will continue to run
and function.
3.) Non-Regular employees- those engaged:
- For a specific project or undertaking, (i.e. project employees)
- On a seasonal basis (i.e. seasonal employees)
- For a fixed-term (i.e. fixed-term employees)
- On a trial basis (i.e. probationary employees)

Significance of the classification

This classification is significant for the purpose of determining their tenure
of employment.
Employees holding regular employment enjoys security of ternure by
express provision of Article 283 of the labor code. On the other hand, employees
holding non-regular employment are entitled only to qualified tenure of
employment in the sense that they cannot be dismissed without just cause or
authorized cause prior to the expiration of the term of their employment.
Casual Employees who have rendered at least 1 year of service are entitled
to security of tenure, in the sense that their employment cannot be terminated
without just cause or authorized cause, as long as the activity in which they were
employed exists.

Slides 12-20
WORKING CONDITIONS
Normal Hours of Work
Overtime Pay
Night Shift differential
Weekly rest period
Premium Pay
Holiday Pay
Service Incentive Leave
Service Charges

Coverage
All employees are covered except:
1.) Government employees- are not covered by the labor code because they are
covered by the Civil Service law, Administrative Code and their own special
charter in case of GOCCs
2.) Managerial Employees- Not feasible to provide them maximum hours of work
and to give them premium pay per day because they are hired because of their
special training education that required independent knowledge and discretion.
3.) Field Personnel- there is now accurate way to determine their hours of work
unlike those who are working within the establishment.
4.) Family members of the employer who are dependent on him for support-
Husband, parents, children. For practical consideration and because of the nature
of relationship.
5.) Domestic helpers/Kasambahay (except the SIL and weekly rest days)- they are
not entitled because of the nature of work plus they are not employed in a
business undertaking.
6.) Person in the personal service of another- Bodyguard, personal nurses, family
drivers. These are personal engagement and it necessitates that they be
exempted from certain legal restrictions.
7.) Workers paid by result- they are supervised no way to track if they actually
work, they are paid based on result.

Normal hours of Work- normal hours of work should not exceed 8 hours a day. A
“day” means the 24 hours period when you begin and when you end the work. It
can be on a staggered basis as long as it is within the 24 hour period. Any excess
should be paid overtime pay.
Fair Day’s wage for fair day’s work- we follow no work no pay policy.
Waiting time- If engaged to wait like security guard, company driver, fire men (
waiting time should be paid); (if waiting to be engaged not yet paid) because unlike
the first one, they can’t use the waiting time effectively for their own. On the latter,
the employer is still not in control of their work.
Travel time- not paid because going to and from work is a normal incident of
employment. You are not being paid to travel.
Power outage- if minimal let’s say not more than 20 minutes the power returned.
This should be considered working time. Too short to use for their own purpose. If
more than 30 minutes, it is not paid anymore. Rationale is that they can now use
the time effectively for their own.
Coffee break/ short break- 20 minutes should be paid. Beaks not exceeding 20
minutes are generally paid.

Meal Period
General rule: it shall be 60 continuous and uninterrupted minutes of meal break.
Unpaid
Exception: Employer can reduce the 60 minutes to not less than 20 minutes.
Provided that it should be paid and any of the following conditions are present:
1.) The work is non-manual/ doesn’t involve strenuous work
2.) The establishment operated not less than 16 hours/day.
3.) Actual of impending work needed to be done to avoid lost serious loss on the
part of employer
4.) To prevent loss of perishable goods
Nigh shift differential- additional 10% of the regular wage for every hour of work
performed between 10PM- 6AM.

Overtime pay- 25% of regular wage for normal days. 30% of your rate for holiday
or rest day if work is rendered on holiday and rest day.
Can it be waived? The right to receive Overtime pay cannot be waived because
that’s against public policy. What you can waive is the OT you already rendered.
Here what you are waiving is the amount you received but not the right to earn
OT.
Compressed work week-instance where even if you work more than 8 hours a day
you will not be paid OT. 6 working days is reduced to 5 working days. In this type of
case even if the work is more than 9 hours a day no OT is paid to the employee.
Can overtime work in one day be used to offset under time work in another day?
No, this is expressly prohibited by the labor code.
Can you be compelled to render overtime work? Common misconception is that
you cannot be compelled to render Overtime Work.
Contrariwise, the labor code actually allows the employer to compel an employee
to render mandatory OT in the following circumstances.
Emergency/Calamity/Urgent Work or Repairs/Preservation of goods/Completion
of work/Taking advantage of good working conditions.
An employee can be cited for insubordination if he/she refused to render overtime
work despite presence of the foregoing circumstances.

Weekly rest days- 24 consecutive hours of rest after 6 consecutive normal work
days. It should be the choice of employer when the rest day would be except in
case of religious ground. It should be respected e but the employee must provide
at least 7 days written notice to the employer before effective date of rest day. If
not feasible for the employer, at least 2 days every month can be allocated for such
purpose.
Premium Pay
Additional 30% of your regular wage- if you work on a special holiday or rest day
Additional 50% of your regular wage- if you work on a special holiday that falls on
your rest day
Example of Special Holidays- Ninoy Aquino day. All saints day, Last day of the year.
Holiday pay
- 100% of your regular daily wage even if you don’t work on a regular holiday.
- If you work during a regular holiday, the salary of an employee for that day
will be equivalent to 200% of his/her regular wage.
- Two holidays falling on same day- Good Friday and Araw ng Kagitingan. 300%
Successive holidays- in case of successive holidays like Holy Thursday and Good
Friday. The following rules apply:
If you work or is on an approved leave on the day before the first regular
holiday- you will be entitled to the holiday pay for Holy Thursday and Good Friday
even if you didn’t work for those days.
If you didn’t work on the day before the first regular holiday- you will not be
entitled to the holiday pay for both succeeding holidays.

Slides 21-23
Wages
Similar with Employer-Employee relationship, the remuneration should arise from
a relationship of employer and employee. If the remuneration is not the product of
an employer-employee but some other relationship like principal and contractor,
attorney-client, then it will not be considered as wages.
Bonus
Amount given out of the generosity of the employer. Don’t be mistaken, 13th month
pay is not a bonus in a sense that this is mandatorily required to be given by law.
Bonus per se is not mandatorily required. It is not a demandable obligation.
Principle of Non diminution of benefits
Payment in form of legal tender. It should be on PHP.
If it’s paid via bag of rice? Not valid payment even employee agreed. It would not
discharge the responsibility of the employer.
Is check considered valid? Yes provided that they be given enough time to encash
during work hours.
Bank deposit through ATM is valid payment.
When? Once every 2 week with an interval not exceeding 16 days.
Can there be delay? Yes if there unavoidable circumstances such as Acts of man
and Acts of god.
Place of payment of wages? Should be at or near the place of undertaking.
To whom? To the Employee.
If the employee is not available? It can be paid to person with written authority
usually by a Special Power of Attorney.

Prohibitions. Interfere with the freedom how it will be disposed, force them to buy
commodities from the employer or other person, obliging to patronize the
employer.

Leaves
Service Incentive Leave
5 days paid leaves for those employees who have rendered at least 1 years
of service. If not used it is convertible to cash.
EXPANDED MATERNITY LAW RA 11210
From 60/78 days of paid leaves. It is now 105 days. Out of the 105 days, 7 days
may be allocated to the child’s father whether or not married. In case of father’s
death it may be allocated to an alternate caregiver at the election of the mother.
105 days is applicable only to delivery
Can be extended to additional 30 days without pay.
Solo parents get an addition 15 days =120 days
Miscarriage- 60 days only
THERE IS NO LIMIT

Paternity Leave RA 8187

7 days paid. Lawful husband.
+7 days from the expanded maternity leave that can be allocated by the child’s
mother. Father doesn’t need to be the lawful husband.
14 days in total.
Solo Parents leave RA 8972
7 days paid. SOLO parent ID. Notice and at least 1 year of service. Graduation mga
anak. Recreational activities.
Leaves for Victims of Violence against women and children
10 days. Usually legal medical concerns.
Magna Carta leave RA 9710
60 days with pay for those who will undergo gynecological disorder
Leave: Maternity Leave/Paternity Leave/Magna Carta/ Solo Parent Leave/ Service
Incentive Leave/Leave for victim of violence against women and children
13th month pay
Remuneration given to an employee who have rendered at least 1 month of service
equivalent to 1/12 of basic salary. As a rule, only rank and file employees are
entitled but per company practice everyone is granted. Should be paid before
Christmas not later than Dec 24. You can say it’s a bonus but actually this is
mandated by law.

Separation pay- payment if an employee is terminated based on authorized causes.

Computation:
1 month of salary for every years of service if: Installation of labor saving device,
redundancy
½ month of salary for every years of service if: Retrenchment, closure of business
not due to serious losses. NO separation pay if due to serious losses.
Every years of service 6 month is equivalent to 1 year.

Retirement Pay
General rule: Retirement depends on what the retirement plan or company policy
provide. If no retirement plan is provided in the contract or company policy, then
what will apply is the labor code.
Under labor code to qualify for retirement: employee should have rendered at
least 5 years of service and must have reached at least the option age of
retirement
Optional Retirement age:
60 years for ordinary employees
50 for underground mining employees
Compulsory:
65- for ordinary employees
60- for underground mining
Amount:
½ month for every years of service where 6 months of service is considered as 1
year.