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41.Rest day; who are entitled?- REST DAY

o It shall be the DUTY of every employer, whether operating for profitor not, to provide each of his employees a rest period of not less than

24 consecutive hours after 6 consecutive normal work days.

- WHO IS ENTITLED?o All those NOT falling within the EXEMPTIONS under Art 82

42.Legal and special holidays. Who are entitled?- LEGAL HOLIDAYS

o NEW YEARS DAY(January 1),o MAUNDY THURSDAY (movable date)o GOOD FRIDAY (movable date)o ARAW NG KAGITINGAN (Monday nearest April 9)o LABOR DAY (May 1)o INDEPENDENCE DAY (Monday nearest June 12)o NATIONAL HEROES DAY (Last Monday of August)o BONIFACIO DAY (Monday nearest November 30)o CHRISTMAS DAY (December 25)o RIZAL DAY (Monday nearest December 30)o EIDL FITR (movable date)o EIDLADHA (movable date)

- Holiday pay is a one-day (100%) pay given by law to an employee even if hedoes not work on a regular holiday (legal holiday). If a worker comes to workon a regular holiday, he earns 200% of his daily rate.

- SPECIAL HOLIDAYSO ALL SAINTS DAY (November 1)O LAST DAY OF THE YEAR (December 31)O NINOY AQUINO DAY (August 31)O In addition to those that would be declared as special non-working

holidays

- Premium pay equal to 30% of a workers daily rate is given to workers whowork during special holidays.

- WHO ARE ENTITLED?O All those NOT falling within the EXEMPTIONS under Art 82.

43.Entitlement of monthly paid employees to holiday pay.- Insular Bank of Asia and America Employees Union v. Hon Inciong

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o Court held that the Labor Code is clear that monthly-paid employeesare not excludedfrom the benefits of holiday pay.

o Court struck down Sec 2, Rule IV, Book III of the Implementing Rulesand Policy Instructions No. 9, which provides that monthly-paid

employees are presumed to be paid for all days in the month whether

worked or not, as null and void.

- The Chartered Bank Employees Association v. Hon Blas Opleo Divisor to convert from monthly to daily rate must be 365 for monthly

paid employees in order to be deemed as including holiday pay.

Not 251 as done by the bank in the case SC: The 251 working days divisor is the result of subtracting

all Saturdays, Sundays, and the ten (10) legal holidays from the

total number of calendar days in a year. If the employees are

already paid for all non-working days, the divisor should be

365 and not 251.

- Union of Filipro Employees v. Benigno Vivar, Jr.o When is it deemed the start of entitlement of holiday pay for monthly-

paid employees

NOTE: implementing rules before being struck down in theInsular Bank case provides for the presumption that monthly-

paid employees are deemed to have been paid holiday pay as

well

o Holiday pay is deemed to be not included in monthly-paid employeesonly from the time that the implementing rule was struck down

Doctrine of operative fact Presumption of validity before being declared void

44.Conversion of monthly pay to daily pay and vice-versa. The significance ofthe divisor or multiplier being used.

- Even if the divisor to convert the salary from monthly to daily is lowerthan 365

o The employee is still monthly-paid and all days of the monthincluding the legal holidays are deemed paid

o If the quotient is EQUAL to or GREATER than the LEGAL MINIMUMRATE.

- The Chartered Bank Employees Association v. Hon. Blas Opleo Divisor to convert from monthly to daily rate must be 365 for monthly

paid employees in order to be deemed as including holiday pay.

Not 251 as done by the bank in the case SC: The 251 working days divisor is the result of subtracting

all Saturdays, Sundays, and the ten (10) legal holidays from the

total number of calendar days in a year. If the employees are

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already paid for all non-working days, the divisor should be

365 and not 251.

- THE SIGNIFICANCE OF THE DIVISOR BEING USED.o Union of Filipro Employees v. Vivar, Jr.

The divisor assumes an important role in determining whetheror not holiday pay is already included in the monthly-paidemployees salary and in the computation of his daily rate.

The respondent arbitrators order to change the divisor from251 to 261 days would result in a lower daily rate which is

violative of the prohibition on non-diminution of benefits

found in Art 100 of the Labor Code.

To maintain the same daily rate if the divisor is adjusted to261 days, then the dividend, which represents the employees

annual salary, should correspondingly be increased to

incorporate the holiday pay.

45.Service incentive leave; who are entitled? Requisites for entitlement?- SIL

o Every employee who has rendered at least one year of service shall beentitled to a yearly service incentive leave of five days with pay.

The term at least one year of service shall mean servicewithin twelve months, whether continuous or broken,

reckoned from the date the employee started working,

including authorized absences and paid regular holidays,

unlessthe number of working days in the establishment as a

matter of practice or policy, or provided in the employmentcontract, is less than twelve months, in which case, said period

shall be considered as one year for the purpose of determining

entitlement to the service incentive leave.

- WHO ARE ENTITLED?o Those NOT under the exemptions of Art 82o Part-time workers

Entitled to the full five days SIL benefit and not on a pro-ratabasis.

o On Contract workerso Piece-rate workerso This provision (Art 95. Right to SIL) shall NOT APPLY

Those already enjoying the benefit herein Those enjoying vacation leave with pay of at least five days Those employed in establishments regularly employing less

than ten employees

Establishments exempted from granting SIL by the Secretary ofLabor

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46.Use of SIL; conversion?- The implementing rules made by the Secretary of Labor and Employment

provides: The service incentive leave shall be commutable to its money

equivalent if not used or exhausted at the end of the year.

- COMMUTATION OF SICK LEAVEo SL/VL benefits and their conversion to cash are voluntary, not

statutory, in character. Entitlement to them, especially by a corporate

executive, must be proved.

Must be proved to have ripened into company practice orpolicy which cannot be peremptorily withdrawn

Kwok v. Philippine Carpet Manufacturing Corp. the Court cannot presume the existence of such

privileges or benefits. The petitioner was burdened to

prove not only the existence of such benefits but alsothat he is entitled to the same

47.Service charges? Who are entitled? Effect of abolition;- SERVICE CHARGE

o Collected by hotels, restaurants and similar establishmentso Distributed at the rate of 85% for all covered employees and 15% for

management

o Share of employees shall be equally distributed among them- WHO ARE ENTITLED?

o ALL EMPLOYEES of covered employers, regardless of their positions,designations or employment status, and irrespective of the method by

which their wages are paid

EXCEPT those receiving more than P2000 a month.- EFFECT OF ABOLITION

o Share of covered employees shall be considered INTEGRATED in theirwages

o Basis shall be the average monthly share of each employee for thepast 12 months immediately preceding the abolition or withdrawal of

such charges.

48.Wages vs commission; distinction? When is a commission treated as a wage?- WHEN IS A COMMISSION TREATED AS A WAGE

o GENERAL RULE: Wage includes sales commissions In the computation of the separation pay, the salary base

should include also the earned sales commissions

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EXCEPTION: Soriano v. NLRC Commissions must be earned from actual transactions

attributable to the salesman to be considered part of

their basic salary in the computation of separation pay

49.Facilities vs supplement. Distinction?- FACILITIES

o Include articles or services for the benefit of the employee or hisfamily

But shall NOT include tools of the trade or articles or serviceprimarily for the benefit of the employer or necessary to the

conduct of the employers business

o Form part of the wage and when furnished by the employer aredeductible therefrom, since if they are not so furnished, the laborer

would spend and pay for them just the same

- SUPPLEMENTSo Constitute extra remuneration or special privileges or benefits given

to or received by the laborers over and above their ordinary earnings

or wages

- DISTINCTIONo The criterion is not so much with the kind of the benefit or item given,

but its PURPOSE.

50.The concept of a fair days wage for fair days labor. Does it give a right to theworker?

- FAIR DAYS WAGE FOR FAIR DAYS LABORo If there is no work performed by the employee there can be no wage

or pay

UNLESS the laborer was able, willing and ready to work BUTwas prevented by management or illegally locked out,

suspended or dismissed.

o Where the employees dismissal is for a just cause, it would neither befair nor just to allow the employee to recover something he has not

earned and could not have earned.