SET 31. What are the remuneratory aspects of employment in the private sector?

Minimum wage in the region/sector Holiday pay: One day pay for every regular holiday even if unworked subject to certain conditions Premium pay for work within 8 hours on a Special or rest day: plus 30% of basic daily rate (bdr) Rest day falling on a special day: plus 50% of bdr Rest day falling on a regular holiday: plus 30% of 200% of bdr Overtime pay for work in excess of 8 hours Nightshift differential pay Service Incentive Leave Pay Service Charges 13th Month Pay Paternity Leave Separation Pay Retirement PayWhat are the benefits?How much and how is it computed?Who are covered?Who are not covered?

a. Hours of work (8 hours)The normal hours of work of an employee shall not exceed 8 hours a day.

Ex. Daily Wage: P800Work Schedue: 8:00 am 5:00 pm (inclusive of 1 hour meal break)

Normal working hours of 8 hours a day:The Eight-Hour Labor Law prescribes the maximum but not the minimum. Therefore, part-time work, or a days work of less than 8 hours is not prohibited.

Meal and rest period: meal break of less than one hour and short rest periods shall be considered compensable working time. It applies to all employees in all establishments and undertakings, whether operated for profit or not, except to those specifically exmpyed under Art. 82 of the Labor Code.

Obviously, the law on conditions of employment cannot apply if employee-employer relationship does not exist between the parties. 1. Government employees2. Managerial employees including members of the managerial staff3. Field personnel4. members of the family of the employer who are dependent upon him for support5. Domestic helpers or persons in the personal service of another6. Workers paid by result

Government Employeesa. refer only to employees of government agencies, instrumentalities, or political subdivisions and of government corporations that are not incorporated under the Corporation Code, i.e., those which have original charters

b. not covered under this Title because of the terms and conditions of employment are governed by the Civil Service Law, rules and regulations

Managerial Employees:a. Alter-egos of their employers who meet the following conditions:1) Their primary duty consists of the management of the establishment in which they are employed or of a department or subidivision thereof2) They customarily and regularly direct the work of two or more employees therein3) They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to the hiring and firing and as to the promotion or any other change of status of other employees are given particular weight (IRR Labor Code, Rule I, Sec. 2[b])b. Not covered because they are employed by reason of their special training, experience, or knowledge; value of their work cannot be measured in terms of hours.

Field PersonnelNon-agricultural employeesa. Who regularly perform their duties away from the principal place of business or branch office of the employer; andb. Whose actual hours of work in the field cannot be determined with reasonable certainty (IRR LC, Book III, Rule II, Sec. 27)

Fishermen are not field personnel, although they perform non-agricultural work away from the petitioners business offices, the fact remains that throughout the duration of their work they are under the effective control and supervision of employer. However, under the Philippine Fisheries Code of 1998, fishermen are considered field personnel. (Mercidar Fishing Corp. vs NLRC, 1998)

Drivers/Bus ConductorsIt is of judicial notice that along the routes that are plied by bus companies, there are inspectors assigned in strategic places, mandatory once-a-week car barn or shop day, dirvers/conductors must be at specific place at specified time, as they generally observe prompt departure and arrival from their point of origin to their point of destination. They are, therefore, under constant supervision while in the performance of this work and hence cannot be considered field personnel (Autobus Transport Systems vs. Bautista, 2005).

Workers Paid by Result are those whose work is not measured in accordance with the time they spent to complete the work. The time element, in fact, is not a material consideration. Such work is measured either:1. By piece or2. By taskNot all workers paid by result are excluded from the coverage.

b. Work from 10:00 pm to 6:00 amNight Shift DifferentialWithout Overtime

([10% x regular wage per hour] x no. of hours of work performed between 10 pm -6 am)

Step 1: Get hourly wage rate.Daily wage divided by no. of hours workedEg. P800 /8hrs = P100

Step 2: Compute wage between 10 pm 6 am. Eg. 8 hrs x P100 = P800

Step 3: Compute NSD(10% of regular wage per hour x no. of hours work performed between 10 pm 6 am)(10% x P100) x 8 hrs = P80

Computation:10 pm 6 am (8 hrs) x P100 = 800NSD (8 hrs) x P10 = P80Total Wage earned: P800 + P80 = P880General Rule: All employees are entitled to NSD (with exceptions). Exceptions:

1. Those provided in Art. 82

a. Government employees b. Managerial employees including members of the managerial staffc. Field personneld. Members of the family of the employer who are dependent upon him for supporte. Domestic helpers or persons in the personal service of anotherf. Workers paid by result

2. Employees of retail and service establishments regularly employing not more than 5 workers (IRR LC, Book III, Rule II, Sec. 1 [b])

c. Meal periods1. Should not be less than 60 minutes. It is non-compnesable except where during the so-called meal period, the laborers are required to standby for emergency work, or said meal hour is not one of complete rest, such period is considered hours worked (Pan American World Airways System vs. Pan American Employees Association, 1961).2. May be less than 60 minutes, but should not be less than 20 minutes and the shortened mealtime must be with full pay, under the following circumstances:a. Work is non-manual work in nature or does not involve strenuous physical exertion;b. The establishment regularly operates operates not less than 16 hours a day;c. In cases of actual or impending emergencies or there is urgent work to be performed on machineries, equipment or installations to avoid serious loss which the employer would otherwise suffer; d. Work is necessary to prevent serious loss of perishable goods (IRR LC, BOOK III, Rule I, Sec. 7).3. If less than 20 minutes, it comes only a rest period and is thus considered as work time.

Shortened Meal Break Upon Employees RequestEmployees may request that their meal period be shortened so that they can leave work earlier than the previously established schedule. Such shortened mealtime is not compensable.Requisitesa. Employees voluntarily agree in writing and waive the overtime pay;b. No diminution in the salary and other fringe benefits of the employees already existing;c. Work is not physically strenuous and they are provided with adequate coffee breaks in the morning and afternoon;d. Value of benefits is equal to the compensation due them;e. Overtime pay will become due and demandable if ever they are permitted or made to work beyond agreed hours of work; andf. The arrangement is of temporary duration. It applies to all employees in all establishments and undertakings, whether operated for profit or not, except to those specifically exmpyed under Art. 82 of the Labor Code.

Obviously, the law on conditions of employment cannot apply if employee-employer relationship does not exist between the parties.

1. Government employees2. Managerial employees including members of the managerial staff3. Field personnel4. members of the family of the employer who are dependent upon him for support5. Domestic helpers or persons in the personal service of another6. Workers paid by result

d. Work beyond 8 hoursOvertime Pay is an additional compensation for work performed beyond 8 hours within the 24-hour workday regardless whether the work covers 2 calendar days.

Rates1. Overtime work on Regular Work DayThe employee is paid for the overtime work on additional compensation equivalent to his regular wage plus at least 25% thereof.2. Overtime work on Holiday or Rest DayOvertime work performed on a special holiday or rest day not falling on a regular holiday shall be paid an additional compensation equivalent to the rate of the first eight hours on that day plus at least 30% thereof.Conditions to be entitled to Overtime Pay1. Entitlement to overtime pay must first be established by sufficient proof2. Said overtime work was actually performed(Cagampan vs. NLRC, 1991).

General Rule: Overtime pay cannot be waived expressly or impliedly. Any contrary stipulation is null and void, as it is intended to benefit laborers and employees.Exception: 1. when the waiver is made in consideration of benefits and privileges which may be more than what will accrue to them in overtime pay 2. Compressed work week

Note: Employees whose positions are reclassified from rank-and-file to supervisory lose overtime pay and other benefits under Arts. 82-96. Promotion produces the same effect. But the promotion and position reclassification must be done in good faith. The personnel movement should not be intended to circumvent the law to deprive employees of the benefits they used to receive (Productivity Incentives Act of 1990, R.A. No. 6971).

Compulsory/Emergency Overtime WorkAny employee may be required by the employer to perform overtime work in any of the following cases:

1. 1. When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive;2. When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;3. 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 cause of similar nature;4. When the work is necessary to prevent loss or damage to perishable goods; and5. Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer.2. 6. When overtime work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon.

General Rule: An express instruction from the employer is not required. It is sufficient that the employee is permitted or suffered to work.Exception: On rest days and holidays, written authority after office hours is required for entitlement to compensation.Note: A verbal instruction to render overtime work prevails over a memorandum prohibiting such work (A.L. Ammen Transportation Co. vs. Borja, 1962).

It applies to all employees in all establishments and undertakings, whether operated for profit or not, except to those specifically exmpyed under Art. 82 of the Labor Code.

1. Government employees2. Managerial employees including members of the managerial staff3. Field personnel4. members of the family of the employer who are dependent upon him for support5. Domestic helpers or persons in the personal service of another6. Workers paid by result

e. Rest dayEvery employer shall give his employees a rest period of not less than 24 consecutive hours after every 6 consecutive normal work days.

All employers whether operating for profit or not, including public utilities operated by private persons. 1. Government employees2. Managerial employees including members of the managerial staff3. Field personnel4. members of the family of the employer who are dependent upon him for support5. Domestic helpers or persons in the personal service of another6. Workers paid by result

f. Work on Rest dayAdditional compensation of at least 30% of a workers regular wage for work performed on his rest day. Eg. [Rest day wage rate (130%) + 30% of rest day wage rate]

Rest Day SundayDaily Wage P800Work Schedule 8:00 am 5:00 pm (inclusive of 1 hour meal break)OT 5:00 pm 10:00 pm

Step 1: Get hourly wage rate.Daily Basic Wage divided by no. of hours worked multiplied by special holiday wage rate.(P800/8 hrs) x 130% =P130

Step 2: Compute wage between 8:00 am 5:00 pm using rest day wage rate.8 hrs x P130 = P1,040Step 3: Compute OT Premium Pay between 5:00 pm-10:00 pm.[(30% H Wage per hour) + H Wage per hour] x no. of OT hours(30% x P130) + P130 = P169X no. of OT hours (5 pm 10 pm) 5 hrs x P169 = P845

Computation:8am-5pm 8 hrs x P130 = P1,0405pm-10pm 5 hrs x P169 = P845Total Wage Earned: P1,040 + P845 = P1,885

An employer may require any of his employees to work on his scheduled rest day for the duration of the following emergency and exceptional conditions:(a) In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity, to prevent loss of life or property, or in cases of force majeure or imminent danger to public safety;(b) In case of urgent work to be performed on machineries, equipment or installations to avoid serious loss which the employer would otherwise suffer;(c) In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures;(d) To prevent serious loss of perishable goods;(e) Where the nature of the work is such that the employees have to work continuously for seven (7) days in a week or more, as in the case of the crew members of a vessel to complete a voyage and in other similar cases; and(f) When the work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon.

Rule applies to all employers whether operating for profit or not, including public utilities operated by private persons.

An employee who is made or permitted to work on his scheduled rest day. An employee shall be entitled to such additional compensation for work performed on a Sunday only when it is his established rest day.1. Government employees2. Managerial employees including members of the managerial staff3. Field personnel4. members of the family of the employer who are dependent upon him for support5. Domestic helpers or persons in the personal service of another6. Workers paid by result

g. Special HolidaysWork performed on any special holiday shall be paid with an additional compensation of at least 30% of his regular wage for work performed on a special holiday.

Where such holiday work falls on the employees scheduled rest day, he shall be entitled to additional compensation of at least 50% of his regular wage.

Work on Special Holiday with Overtime Eg. [Special Holiday wage rate (130%) + 30% of special holiday wage rate]

Special Holiday June 24 Manila DayDaily Wage P800Work Schedule 8:00 am 5:00 pm (inclusive of 1 hour meal break)OT 5:00 pm 10:00 pm

Step 1: Get hourly wage rate.Daily Basic Wage divided by no. of hours worked multiplied by special holiday wage rate.(P800/8 hrs) x 130% =P130

Step 2: Compute wage between 8:00 am 5:00 pm using special holiday wage rate.8 hrs x P130 = P1,040Step 3: Compute OT Premium Pay between 5:00 pm-10:00 pm.[(30% H Wage per hour) + H Wage per hour] x no. of OT hours(30% x P130) + P130 = P169X no. of OT hours (5 pm 10 pm) 5 hrs x P169 = P845

Computation:8am-5pm 8 hrs x P130 = P1,0405pm-10pm 5 hrs x P169 = P845Total Wage Earned: P1,040 + P845 = P1,885

Work on Special Holiday which is also a Rest Day with Overtime[Rest day & special holiday wage rate (150%) +30% of rest day & special holiday wage rate]

Eg. Manila Day falling on a Sunday Daily Wage: P800Work Schedule: 8:00am-5:00pm (inclusive of 1 hour meal break)OT: 5:00pm-10:00 pm

Step 1: Get hourly wage rate.Daily Basic Wage divided by no. of hours worked multiplied by rest day & special holiday wage rate. (P800/8 hrs) x 150% = P150

Step 2: Compute wage between 8:00 am-5:00 pm using special holiday wage rate. 8 hrs x P150 = P1,200Step 3: Compute OT Premium Pay between 5:00pm-10:00pm. [(30% H Wage per hour) + H Wage per hour] x no. of OT hours

(30% x P150) + P150 = P195X no. of OT hours (5-10 pm) P195x5hrs= P975

Computation:8am-5pm 8 hrs xP150 = P1,2005pm-10pm 5 hrs x P195 = P975Total Wage Earned: P2,175

Rule applies to all employers whether operating for profit or not, including public utilities operated by private persons.

1. Government employees2. Managerial employees including members of the managerial staff3. Field personnel4. members of the family of the employer who are dependent upon him for support5. Domestic helpers or persons in the personal service of another6. Workers paid by result

h. Regular/Legal HolidaysEvery employer shall pay his employees their regular daily wage for any unworked regular holiday.

Any employee who is permitted or suffered to work on any regular holiday, not exceeding 8 hours, shall be paid at least 200% of his regular daily wage.

If the legal holiday work falls on the scheduled rest day of the employee, he shall be entitled to an additional premium pay of at least 30% of his regular holiday rate of 200% based on his regular wage rate.

Legal or Regular Holiday with Overtime[Holiday wage rate (200%)+30% of holiday rate]

Eg. June 12 Independence DayDaily wage: 800Work Schedule: 8:00 am-5:00 pm (inclusive of 1 hour meal break)OT: 5:00-10:00 pm

Step 1: Get hourly wage rate.Daily basic wage divided by no. of hours worked multiplied by regular holiday wage rate(P800/8 hrs)x 200% = P200

Step 2: Compute wage between 8am-5pm using holiday wage rate8 hrs x P200 = P1,600

Step 3: Compute OT Premium Pay between 5:00 pm-10:00 pm.[(30% x Wage per hour) + Wage per hour] x no. of OT hours(30% x P200) +P200 = P260X no. of OT hours (5:00-10:00 pm) P260 x 5 hrs = P1,300

Computation: 8am-5pm (8 hrs) x P200 = P1,6005pm-10pm (5 hrs) x P260 = P1,300Total Wage Earned: P1600 +P1,300 = P2,900

Scheduled Rest Day which is also a Legal or Regular Holiday with Overtime[Rest day and legal holiday wage rate + 30% of rest day and legal holiday wage rate (260%)]

Eg. May 1 (Labor Day falling on a Sunday)Daily Wage: P800Work Schedule: 8:00 am-5:00 pm (inclusive of 1 hour meal break)OT: 5:00-10:00 pmStep 1: Get hourly wage rate.Daily Basic Wage divided by no. of hours worked multiplied by rest day and legal holiday wage rate.(P800/8 hrs) x 260% = P260

Step 2: Compute wage between 8:00 am-5:00pm using holiday wage rate.8 hrs x P260 = P2,080

Step 3: Compute OT Premium Pay between 5:00 pm-10:00 pm[(30% x Wage per hour) + Wage per hour] x no. of OT hours(30% x P260) + P260 = P338X no. of OT hrs (5-10pm) P338 x 5 hrs = P1,690

Computation:8am-5pm (8hrs) x 260 = P2,0805pm-10pm (5 hrs) x 338 = P1,690Total Wage Earned: P3,770

Double Holiday Pay with Overtime[Double Holiday wage rate (300%) +30% of Double Holiday Wage Rate]

Eg.April 9 (Araw ng Kagitingan coinciding with Good Friday)Daily Wage: P800Work Schedule: 8:00 am-5:00 pm (inclusive of 1 hour meal break)OT: 5:00-10:00 pm

Step 1: Get hourly wage rate.Daily Basic Wage divided by no. of hours worked multiplied by rest day and legal holiday wage rate.(P800/8hrs) x 300% = P300

Step 2: Compute wage between 8am-5pm using special holiday wage rate.8 hrs x P300 = P2,400

Step 3: Compute OT Premium Pay between 5pm-10pm.[(30%x Wage per hour) + Wage per hour] x no. of OT hours(30% x P300) + P300 = P390X no. of OT hours (5pm-10pm) P390 x 5 hrs = P 1,950

Computation:8am-5pm (8 hrs) x P300 = P2,400 5pm-10pm (5 hrs) x P390 = P1,950Total Wage Earned: P4,350

All employees except those not covered by Rule IV of Book III, IRR of LC.(a) Those of the government and any of the political subdivision, including government-owned and controlled corporation;(b) Those of retail and service establishments regularly employing less than ten (10) workers;(c) Domestic helpers and persons in the personal service of another;(d) Managerial employees as defined in Book Three of the Code;(e) 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.

i. SILPEvery employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay.

Service incentive leave shall be commutable to its money equivalent if not used or exhausted at the end of the year.

Vacation and Sick Leave are not statutorily required; matter of management discretion or a product of CBA. All employees (with exceptions)

Part-time workers are entitled to the full benefit of the yearly 5-day SIL.

Piece-rate workers working inside the premises of the employer and thus are under the direct supervision of the employer are entitled to SIL.

Piece-rate workers working outside the premises of the employer whose hours spent in the performance of their work cannot be ascertained with reasonable certainty and thus are not under the direct supervision of the employer are not entitled to SIL.(Labor Congress of the Philippines vs NLRC, 1998)

(a) Those of the government and any of its political subdivisions, including government-owned and controlled corporations;(b) Domestic helpers and persons in the personal service of another;(c) Managerial employees as defined in Book Three of this Code;(d) Field personnel and other employees whose 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;(e) Those who are already enjoying the benefit herein provided;(f) Those enjoying vacation leave with pay of at least five days; and(g) Those employed in establishments regularly employing less than ten employees.

j. Service ChargesAll service charges collected by covered employers shall be distributed at the rate of 85% for the employees and 15% for the management. The 85% shall be distributed equally among the covered employees. The 15% shall be for the disposition by management to answer for losses and breakages and distribution to managerial employees at the discretion of the management in the latter case.The shares referred to herein shall be distributed and paid to the employees not less than once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.Pooled Tips. Where an establishment does not collect service charges but has a practice or policy of pooling tips given voluntarily by its customers, the pooled tips should be monitored, accounted for and distributed in the same manner as the service charges (DOLE Handbook on Workers Statutory Monetary Benefits).Service Charge is not in the nature of a profit share and, therefore, cannot be deducted from wage.

This rule shall apply only to establishments collecting service charges such as hotels, restaurants, lodging houses, night clubs, cocktail lounge, massage clinics, bars, casinos and gambling houses, and similar enterprises, including those entities operating primarily as private subsidiaries of the Government.This rule shall apply to 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 to managerial employees.As used herein, a "managerial employee" shall mean one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign, or discipline employees or to effectively recommend such managerial actions. All employees not falling within this definition shall be considered rank-and-file employees.

Employees of establishments not falling under Sec. 1 of Rule VI, IRR of LC.

k. 13th Month PayThe 13th month pay required by law shall not be less than one-twelfth of the total basic salary earned by an employee within a calendar year.All rank and file employees are now entitled to a 13th month pay regardless of the amount of basic salary that they receive in a month if their employers are not otherwise exempted from the application of P.D. No. 851. Such employees are entitled to the benefit regardless of their designation or employment status, and irrespective of the method by which their wages are paid, provided that they have worked for at least one (1) month during a calendar year.

a. The Government and any of its political subdivisions, including government-owned and controlled corporations, excepts those corporations operating essentially as private subsidiaries of the Government;b.Employers already paying their employees a 13th month pay or more in a calendar year or its equivalent at the time of this issuance;c.Employers of household helpers and persons in the personal service of another in relation to such workers; andd.Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing specific work, irrespective of the time consumed in the performance thereof, except where the workers are paid on piece-rate basis in which case the employer shall grant the required 13th month pay to such workers.

l. Retirement BenefitsAn employee may be retired upon reaching the age of sixty (60) years.

(a) An employee who is retired pursuant to a bona-fide retirement plan or in accordance with the applicable individual or collective agreement or established employer policy shall be entitled to all the retirement benefits provided therein or to termination pay equivalent to at least one-half month salary for every year of service, whichever is higher, a fraction of at least six (6) months being considered as one whole year.(b) Where both the employer and the employee contribute to the retirement plan, agreement or policy, the employer's total contribution thereto shall not be less than the total termination pay to which the employee would have been entitled had there been no such retirement fund. In case the employer's contribution is less than the termination pay the employee is entitled to receive, the employer shall pay the deficiency upon the retirement of the employee.

This applies to all establishments and undertakings, whether operated for profit or not, including educational, medical, charitable and religious institutions and organizations, in cases of regular employment.Government and its political subdivision including GOCCs.

m. Paternity LeavePaternity Leave refers to the benefits granted to a married male employee allowing him not to report for work for seven (7) days but continues to earn the compensation therefor, on the condition that his spouse has delivered a child or suffered a miscarriage for purposes of enabling him to effectively lend support to his wife in her period of recovery and/or in the nursing of the newly-born child.Every married male employee in the private and public sectors shall be entitled to a paternity leave of seven (7) days with full pay for the first four (4) deliveries of the legitimate spouse with whom he is cohabiting. The male employee applying for paternity leave shall notify his employer of the pregnancy of his legitimate spouse and the expected date of such delivery.

Conditions:a. He is an employee at the time of delivery of his childb. He is cohabiting with his spouse at the time she gives birth or suffers a miscarriage.c. He has applied for paternity leave.d. His wife has given birth or suffered a miscarriage.

RA No. 8187 Paternity Leave Act of 1996Not lawfully married males or those who do not meet the required conditions in the preceding column.

2. Who has the burden of proof when a worker is claiming any of the foregoing benefits?As a general rule, one who pleads payment has the burden of proving it. Even where the plaintiff must allege non-payment, the general rule is that the burden rests on the defendant to prove payment, rather than on the plaintiff to prove non-payment. The debtor has the burden of showing with legal certainty that the obligation has been discharged by payment. When the existence of a debt is fully established by the evidence contained in the record, the burden of proving that it has been extinguished by payment devolves upon the debtor who offers such a defense to the claim of the creditor. Where the debtor introduces some evidence of payment, the burden of going forward with the evidence - as distinct from the general burden of proof- shifts to the creditor, who is then under a duty of producing some evidence to show non-payment.3. What are the principles in determining hours worked? (a) All hours are hours worked which the employee is required to give his employer, regardless of whether or not such hours are spent in productive labor or involve physical or mental exertion.cralaw(b) An employee need not leave the premises of the work place in order that his rest period shall not be counted, it being enough that he stops working, may rest completely and may leave his work place, to go elsewhere, whether within or outside the premises of his work place.cralaw(c) If the work performed was necessary, or it benefited the employer, or the employee could not abandon his work at the end of his normal working hours because he had no replacement, all time spent for such work shall be considered as hours worked, if the work was with the knowledge of his employer or immediate supervisor.cralaw(d) The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be considered working time either if the imminence of the resumption of work requires the employee's presence at the place of work or if the interval is too brief to be utilized effectively and gainfully in the employee's own interest.cralaw

4. When is waiting time compensable? And when is it not?Waiting time. (a) Waiting time spent by an employee shall be considered as working time if waiting is an integral part of his work or the employee is required or engaged by the employer to wait.cra(b) An employee who is required to remain on call in the employer's premises or so close thereto that he cannot use the time effectively and gainfully for his own purpose shall be considered as working while on call. An employee who is not required to leave word at his home or with company officials where he may be reached is not working while on call.cralaw

5. What are the requirements before we give due course to an employers claim that his workers are paid by results?The Department of Labor shall use all available devices, including the use of time and motion studies and consultation with representatives of employers and workers organizations to determine whether the employees in any industry or enterprise are being compensated in accordance with minimum wage requirements.6. May an employer deduct from workers wages the value of the board, lodging and other facilities furnished by employer to his employees?In order that the cost of facilities furnished by the employer may be charged against an employee, his acceptance of such facilities must be voluntary. 7. What are the prohibited acts against women workers?SECTION 13. Prohibited acts. It shall be unlawful for any employer:(a) To discharge any woman employed by him for the purpose of preventing such woman from enjoying the maternity leave, facilities and other benefits provided under the Code;(b) To discharge such woman employee on account of her pregnancy, or while on leave or in confinement due to her pregnancy;(c) To discharge or refuse the admission of such woman upon returning to her work for fear that she may be pregnant;(d) To discharge any woman or child or any other employee for having filed a complaint or having testified or being about to testify under the Code; and(e) To require as a condition for a continuation of employment that a woman employee shall not get married or to stipulate expressly or tacitly that upon getting married, a woman employee shall be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage.cralaw

8. What are the consideration and prohibitions as regards payment of wages?Manner of wage payment. As a general rule, wages shall be paid in legal tender and the use of tokens, promissory notes, vouchers, coupons, or any other form alleged to represent legal tender is absolutely prohibited even when expressly requested by the employee.cralaw

Payment by check. Payment of wages by bank checks, postal checks or money orders is allowed where such manner of wage payment is customary on the date of the effectivity of the Code, where it is so stipulated in a collective agreement, or where all of the following conditions are met:(a) There is a bank or other facility for encashment within a radius of one (1) kilometer from the workplace;(b) The employer or any of his agents or representatives does not receive any pecuniary benefit directly or indirectly from the arrangement;(c) The employees are given reasonable time during banking hours to withdraw their wages from the bank which time shall be considered as compensable hours worked if done during working hours; and(d) The payment by check is with the written consent of the employees concerned if there is no collective agreement authorizing the payment of wages by bank checks.cralaw

Time of payment. (a) Wages shall be paid not less than once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days, unless payment cannot be made with such regularity due to force majeure or circumstances beyond the employer's control in which case the employer shall pay the wages immediately after such force majeure or circumstances have ceased.cralaw(b) In case of payment of wages by results involving work which cannot be finished in two (2) weeks, payment shall be made at intervals not exceeding sixteen days in proportion to the amount of work completed. Final settlement shall be made immediately upon completion of the work.

Place of payment. As a general rule, the place of payment shall be at or near the place of undertaking. Payment in a place other than the work place shall be permissible only under the following circumstances:(a) When payment cannot be effected at or near the place of work by reason of the deterioration of peace and order conditions, or by reason of actual or impending emergencies caused by fire, flood, epidemic or other calamity rendering payment thereat impossible;(b) When the employer provides free transportation to the employees back and forth; and(c) Under any other analogous circumstances; Provided, That the time spent by the employees in collecting their wages shall be considered as compensable hours worked;(d) No employer shall pay his employees in any bar, night or day club, drinking establishment, massage clinic, dance hall, or other similar places or in places where games are played with stakes of money or things representing money except in the case of persons employed in said places.cralaw

Direct payment of wages. Payment of wages shall be made direct to the employee entitled thereto except in the following cases:(a) Where the employer is authorized in writing by the employee to pay his wages to a member of his family;(b) Where payment to another person of any part of the employee's wages is authorized by existing law, including payments for the insurance premiums of the employee and union dues where the right to check-off has been recognized by the employer in accordance with a collective agreement or authorized in writing by the individual employees concerned; or(c) In case of death of the employee as provided in the succeeding Section.cralaw

9. Differentiate job contracting from labor-only contracting? What are the effects of finding that there is labor-only contracting?

SECTION 8. Job Contracting. There is job contracting permissible under the Code if the following conditions are met:(a) The contractor carries on an independent business and undertakes the contract work on his own account under his own responsibility according to his own manner and method, free from the control and direction of his employer or principal in all matters connected with the performance of the work except as to the results thereof; and(b) The contractor has substantial capital or investment in the form of tools, equipment, machineries, work premises, and other materials which are necessary in the conduct of his business.cralawSECTION 9. Labor-only contracting. (a) Any person who undertakes to supply workers to an employer shall be deemed to be engaged in labor-only contracting where such person:(1) Does not have substantial capital or investment in the form of tools, equipment, machineries, work premises and other materials; and(2) The workers recruited and placed by such person are performing activities which are directly related to the principal business or operations of the employer in which workers are habitually employed.cralaw(b) Labor-only contracting as defined herein is hereby prohibited and the person acting as contractor shall be considered merely as an agent or intermediary 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.cralaw(c) For cases not falling under this Rule, the Secretary of Labor and Employment shall determine through appropriate orders whether or not the contracting out of labor is permissible in the light of the circumstances of each case and after considering the operating needs of the employer and the rights of the workers involved. In such case, he may prescribe conditions and restrictions to insure the protection and welfare of the workers.10. Explain workers preference in case of bankruptcy?Payment of wages in case of bankruptcy. Unpaid wages earned by the employees before the declaration of bankruptcy or judicial liquidation of the employer's business shall be given first preference and shall be paid in full before other creditors may establish any claim to a share in the assets of the employer.crala

The preferential right of workers and employees under Article 110 of the LaborCode may be invoked only upon the institution of insolvency or judicial liquidation proceeding. Indeed, it is well-settled that "a declaration of bankruptcy or a judicial liquidation must be present before preferences over various money claims may be enforced."But debtors resort to preference of credit -- giving preferred creditors the right to have their claims paid ahead of those of other claimants -- only when their assets are insufficient to pay their debts fully.The purpose of rehabilitation proceedings is precisely to enable the company to gain a new lease on life and therebyallow creditors to be paid their claims from its earnings.In insolvency proceedings, on the other hand, the company stops operating, and the claims of creditors are satisfied from the assets of the insolvent corporation.

11. When may attorneys fees be granted?Attorney's fees. Attorney's fees in any judicial or administrative proceedings for the recovery of wages shall not exceed 10 percent of the amount awarded. The fees may be deducted from the total amount due the winning party.cralaw

12. When does wage distortion occur?The term "wage distortion", under the Rules Implementing Republic Act 6727, is defined, thus:(p) Wage Distortion means a situation where an increase in prescribed wage rates results in the elimination or severe contradiction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation.A wage distortion can arise only in a situation where the salary structure is characterized by intentional quantitative differences among employee groups determined or fixed on the basis of skills, length of service, or other logical basis of differentiation and such differences or distinction are obliterated (In Re: Labor Dispute at the Bank of the Philippine Islands, NCMB-RB-7-11-096-89, Secretary of Labor and Employment, February 18, 1991).The definition of "wage distortion,"10aforequoted, shows that such distortion can so exist when, as a result of an increase in the prescribed wage rate, an "elimination or severe contraction of intentional quantitative differences in wage or salary rates" would occur "between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation." In mandating an adjustment, the law did not require that there be an elimination or total abrogation of quantitative wage or salary differences; a severe contraction thereof is enough. 13. What is the difference between Art. 128 and Art. 129 of the Labor Code?

Article 128 deals with visitorial and enforcement power by virtue of the police power of the State. Article 129 deals with simple money claims not exceeding P5,000.

14. When do money claims proscribe?Money claims prescribe three years from the time the case accrues. 15. Is a lady performing domestic chores in a company rest house considered a domestic help? Reason.No, she is not considered a domestic help. The term `househelper is synonymous to the term `domestic servant and shall refer to any person, whether male or female, who renders services in and about the employers home and which services are usually necessary or desirable for the maintenance and enjoyment thereof, and ministers exclusively to the personal comfort and enjoyment of the employers family.