MODULE 4: WORKING CONDITIONS

iii.​ Night shift differential

iv.​ Rest day
A.​ COVERAGE
v.​ Additional pay for working on rest days or special
Employees Covered holiday
a.​ Art. 82 of the Labor Code vi.​ Holiday pay*
■​ The provisions of this Chapter shall apply to employees in all vii.​ Service incentive leave*
establishments and undertakings, whether for profit or not, viii.​ Share in service charges
but not to government employees, managerial employees, c.​ Legal coverage starts at 1st day of employment for every
field personnel, domestic servants, persons in the personal employee, either temporary or permanent, except for the
service of another, workers who are paid by results when their excluded groups
output rates have been fixed by the Secretary of Labor as d.​ These benefits are called statutory or mandatory benefits.
provided for in this Book, and members of the family of the Benefits that originate and are governed by policy or
employer who are dependent on him for support. practice initiated by the employer are considered voluntary
benefits. If a non-statutory benefit is based on and
As used herein, "managerial employee" refers (a) to those governed by negotiated stipulations whether in individual
whose primary duty consists of the management of the
or collective contract, it is appropriately called voluntary
establishment in which they are employed or of a department
contractual benefit. A statutory benefit may be enhanced
or subdivision thereof or (b) to other officers or members of
or improved by voluntary policy or by contract.
the managerial staff.
Employees NOT Covered
"Field personnel" shall refer to non-agricultural employees a.​ Government Employees
who regularly perform their duties away from the principal or i.​ Those employed by the national government or any of its
branch office or place of business of the employer and whose political subdivisions, including those employed in GOCCs
actual hours of work in the field cannot be determined with b.​ Managerial Employees
reasonable certainty. i.​ Elements
a.​ The coverage and exclusion mentioned in Art. 82 only refer ■​ Those whose primary duty consists of the management of
to the 15 articles mentioned in Title One of Book Three the establishment in which they are employed or of a
(Conditions of Employment) department or subdivision thereof, and to other staff or
b.​ There are 8 minimum employment benefits which the LC members of the managerial staff
grants, as a rule, to all employees in profit or non-profit ■​ Those who customarily and regularly direct the work of 2 or
firms in the private sector more employees therein
i.​ Overtime pay ■​ Those who have the authority to hire or fire employees of
ii.​ Meal break lower rank; or their suggestions and recommendations as to
 MODULE 4: WORKING CONDITIONS

hiring and firing and as to the promotion or any other change f.​ Domestic Helpers and Persons in Service of Another
of status of other employees, are given particular weight i.​ Domestic Worker/Kasambahay
c.​ Officers and Members of the Managerial Staff ■​ Any person engaged in domestic work within an employment
i.​ Supervisory Employees relationship such as but not limited to the following:
ii.​ Determinants ●​ General househelp
■​ Primary duty consists of the performance of work directly ●​ Nursemaid or yaya
related to management policies of their employer ●​ Cook
■​ Customarily and regularly exercise discretion and ●​ Gardener
independent judgment ●​ Laundry Person
■​ Does any of the following: ■​ Domestic work refers to work performed in or for a household
●​ Regularly and directly assist a proprietor or a managerial ■​ Employed to minister exclusively to the personal comfort and
employee whose primary duty consists of the management enjoyment of the employer’s family in the employer’s home
of the establishment in which he is employed or subdivision ii.​ Persons in Personal Service of Another If
thereof ■​ Employees who perform services in the employer’s home
●​ Executed under general supervision work along specialized which are usually necessary or desirable for the maintenance
or technical lines requiring special training, experience, or and enjoyment thereof, or;
knowledge ■​ Minister to the personal comfort, convenience, or safety of
●​ Executed under general supervision, special assignments the employer as well as the members of his household
and tasks ■​ Not necessarily relating to domestic work
■​ Who do not devote more than 20% of their hours worked in a ■​ Without being a kasambahay
work week to activities which are not directly and closely g.​ Workers Paid by Result
related to the performance of the work described above i.​ Includes those who are paid on piece-work, takay, pakiao or
d.​ Field Personnel task basis, and other non-time work if their output rates are in
i.​ Employees whose work or service hours are not and cannot accordance with the standards prescribed under Sec. 8, Rule
be effectively monitored by the employer or determined with VII, Book 3 of these regulations, or where such rates have
reasonable certainty been fixed by the Secretary of Labor and Employment in
ii.​ Those who regularly perform their duties away from the accordance with the aforesaid section
principal place of business or branch office of the employer ii.​ Lambo v NLRC, G.R. No 111042, October 26, 1999
e.​ Employer’s Family Members ■​ Facts: Avelino Lambo and Vicente Belocura were employed as
i.​ Family members of the employer who are dependent on him tailors by JC Tailor Shop in September and March of 1985.
for their support They worked from 8AM-7PM daily, including Sundays and
holidays, and were paid on a piece-work basis according to
 MODULE 4: WORKING CONDITIONS

the style of suits they made. They were each paid Php 64.00 shop’s employees. They were also considered regular
as daily pay. In 1989, they filed a complaint against the shop employees since they rendered work that was necessary in
for illegal dismissal and sought recovery of overtime pay, the usual business of the employer, and worked for them for
holiday pay, premium pay on holiday and rest day, SILP, more than one year without being dependent on a specific
separation pay, 13th month pay, and attorney’s fees. The LA project or season.
found the employer guilty of illegal dismissal and ordered ■​ Doctrine: To justify a finding of abandonment of work, there
them to pay a total of Php 210, 212.64 for back wages, must be proof of a deliberate and unjustified refusal on the
overtime, holiday, 13th month, and separation pay. On part of the employee to resume his employment. The burden
appeal, the NLRC reversed the decision, finding that the of proof is on the employer to show the employee’s intent to
employees were merely threatened with a closure of the discontinue. Mere absence is insufficient.
business if they insisted on their demand for a straight ■​ Application: The employer failed to prove abandonment and
payment of their minimum wage. The NLRC found that the was unable to show proof of overt acts that signified the
employees walked out of a meeting where the other employee’s intention to abandon their work. On the contrary,
employees voted to maintain the company policy of paying the evidence shows that the employees lost no time in filing
them on a piece-work basis. Only Lambo and Belocura the case for illegal dismissal, which negates any intention to
insisted on being paid the minimum wage and other benefits. abandon work.
■​ Issue: WON Lambo and Belacura were regular employees ■​ Doctrine: Not all quit claims are invalid. However, those
●​ WON the employees were illegally dismissed where (1) there is clear proof that the waiver was wrangled
●​ WON the quitclaim executed with Lambo was valid from an unsuspecting or gullible person or (2) where the
■​ Ruling: The NLRC’s Decision is SET ASIDE. The employer is terms of settlement are unconscionable on their face are
ORDERED to pay the employees a total of Php 181, 102.40. invalid.
■​ Doctrine: Two categories of employees paid by results: (1) ■​ Application: Considering that Lambo was awarded a total of
those whose time and performance are supervised by the Php 94, 719.20, the amount of Php 10, 000.00 to cover any
employer (element of control over the manner as to how the and all monetary claims is clearly unconscionable. The
work is to be performed. A piece-rate worker belongs to this subordinate position of the employee vis-a-vis management
category especially if he performs his work in the company renders him especially vulnerable to possible factors that
premises); and (2) those whose time and performance are would result in him waiving his benefits to which he is clearly
unsupervised (employer’s control is over the result of the entitled.
work. Workers on pakyao and takay basis belong to this ■​ Awarding of Backwages and Benefits: The LA correctly
group). awarded back wages and benefits, but the attorney’s fees
■​ Application: The employer exercised control over the work of should be disallowed since the employees were represented
the employees, regardless of the fact that they were paid on by PAO. With regard to Lambo, the amount of Php 10, 000 is
a piece-rate basis. As such, they are considered to be the deducted from the total award.
 MODULE 4: WORKING CONDITIONS

B. HOURS OF WORK & WORK WEEKS considered as hours worked, if the work was with the
a.​ Normal Hours of Work knowledge of his employer or immediate supervisor.
i.​ Art. 83 of the Labor Code
■​ The normal hours of work of any employee shall not exceed (d) The time during which an employee is inactive by reason
eight (8} in a day. of interruptions in his work beyond his control shall be
considered working time either if the imminence of the
b.​ Principles in Determining Hours Worked
resumption of work requires the employee’s presence at the
i.​ Art. 84 of the Labor Code
place of work or if the interval is too brief to be utilized
■​ Hours worked shall include:
effectively and gainfully in the employee’s own interest.
●​ All time during which an employee is required to be on duty
c.​ Rest Periods of Short Duration during Work Hours
or to be at a prescribed workplace; and
i.​ Art. 84, Par. 2 of the Labor Code
●​ All time during which an employee is suffered or permitted
■​ Rest periods of short duration during working hours shall be
to work.
ii.​ Sec. 4, Rule I, Book III, ORILC counted as hours worked.
ii.​ Also include coffee breaks running from 5-20 minutes
■​ The following general principles shall govern in determining
(compensable)
whether the time spent by an employee is considered hours
worked for purposes of this Rule: d.​ Waiting Period and On Call
i.​ Sec. 5, Rule I, Book III, Rules Implementing the Labor Code
(a) All hours are hours worked which the employee is required ■​ (a) Waiting time spent by an employee shall be considered as
to give his employer, regardless of whether or not such hours working time if waiting is an integral part of his work or the
are spent in productive labor or involve physical or mental employee is required or engaged by the employer to wait.
exertion.
(b) An employee who is required to remain on call in the
(b) An employee need not leave the premises of the work employer’s premises or so close thereto that he cannot use
place in order that his rest period shall not be counted, it the time effectively and gainfully for his own purpose shall be
being enough that he stops working, may rest completely and considered as working while on call.
may leave his work place, to go elsewhere, whether within or ■​ Compensable work time if the employee fits any of the
outside the premises of his work place. conditions above
■​ XPN: An employee who is not required to leave a word at his
(c) If the work performed was necessary, or it benefited the home or with company officials where he may be reached is
employer, or the employee could not abandon his work at the NOT working while on call.
end of his normal working hours because he had no
replacement, all time spent for such work shall be
 MODULE 4: WORKING CONDITIONS

e.​ Attendance at Lectures, Meetings, Training Programs, and (b) Where the establishment regularly operates not less
other Similar Activities than sixteen (16) hours a day;
i.​ Sec. 6, Rule I, Book III, Rules Implementing the Labor Code (c) In case of actual or impending emergencies or there
■​ Attendance at lectures, meetings, training programs, and is urgent work to be performed on machineries,
other similar activities shall not be counted as working time if equipment or installations to avoid serious loss which
all of the following conditions are met: the employer would otherwise suffer; and
(a) Attendance is outside of the employee’s regular (d) Where the work is necessary to prevent serious loss
working hours; of perishable goods.
(b) Attendance is in fact voluntary; and g.​ Work Interruption due to Brownouts
(c) The employee does not perform any productive work i.​ Policy Instructions No. 36, May 22, 1978
during such attendance. ■​ Brownouts of short duration but not exceeding twenty (20)
■​ Those sanctioned or required by the employer are considered minutes shall be treated as worked or compensable hours
hours worked whether used productively by the employees or not. cdtai
■​ Attendance in CBA negotiations or grievance meetings is
compensable hours worked provided that such is stipulated Brownouts running for more than twenty (20) minutes may
in the CBA not be treated as hours worked provided any of the following
■​ Attendance in hearings in cases filed by the employee is NOT conditions are present:
compensable hours worked a) The employees can leave their workplace or go elsewhere
■​ Participation in strikes is NOT compensable working time whether within or without the work premises; or
■​ *Attendance must necessarily be beneficial to the employer b) The employees can use the time effectively for their own
f.​ Meal Period and Rest Period interest.
i.​ Article 85 of the Labor Code
In each case, the employer may extend the working hours of
■​ Subject to such regulations as the Secretary of Labor may
his employees outside the working hours of his employees
prescribe, it shall be the duty of every employer to give his
outside the regular schedules to compensate for the loss of
employees not less than sixty (60) minutes time-off for their
productive man-hours without being liable for overtime pay.
regular meals.
ii.​ Section 7, Rule I, Book III, ORILC ii.​ Durabuilt Recapping Plant & Co. v. NLRC, No. L-76746,
■​ A meal period of not less than 20 minutes may be given July 27, 1987, 152 SCRA 328.)
provided that such shorter meal period is credited as ■​ Facts: In July 1983, Reynaldo Bodegas filed a complaint for
compensable hours worked of the employee: illegal dismissal against Durabuilt, a tire recapping company.
(a) Where the work is non-manual work in nature or In February 1984, the LA ordered Durabuilt to reinstate
does not involve strenuous physical exertion; Bodegas to his former position with full backwages. The
 MODULE 4: WORKING CONDITIONS

employer failed to file a seasonable appeal and the Decision he may have lost starting from the date of his dismissal up
was made final and executory. In August 1985, the Acting to the time of his reinstatement. The Court has established a
Chief of Research and Information and the Corporation policy fixing the amount of backwages to a just and
Auditing Examiner of the then Ministry of Labor and reasonable level without qualification or deduction. This
Employment submitted a computation of backwages, ECOLA, means that the workers are to be paid their back wages
13th month pay, sick and vacation leave benefits in favor of without deduction for their earnings elsewhere during their
the employee. The company filed its opposition to the law-off and without qualification of their back wages as thus
computation on the ground that it contemplated a straight fixed; i.e. unqualified by any wage increases or other benefits
computation of 26 working days in 1 month when the period that may have been received by their co-workers who did not
covered by the computation was intermittently interrupted go on strike/not dismissed.
due to frequent brownouts and machine trouble. The ■​ Application: The company concedes that the employee was
company further alleged that Bodegas had only a total of illegally dismissed and is willing to pay backwages. However,
250.75 days of attendance in 1982 due to absences. As they were able to argue their contention that they should not
such, Bodegas is only entitled to Php 3, 834.05 instead of be liable to pay the employee for days where no work was
the Php 24, 316.38 submitted by the Ministry of Labor and required and could be done by its employees. The Solicitor
Employment. The LA denied the opposition to the General supported the company in its comment, which
computation, which was affirmed by the NLRC. highlighted brownouts or electrical power interruption that
■​ Issue: WON there was grave abuse of discretion on the part was scheduled by area and affected the employer’s ability to
of the NLRC assume operations on those days. As such, where the failure
■​ Ruling: The petition is GRANTED. The LA and NLRC’s order is of workers to work was not due to the employer’s fault, the
SET ASIDE. The company is ordered to pay Bodegas his back burden of economic loss suffered by the employees should
wages from the time he was terminated up to the time he not be shifted to the employer. It would not be fair for the
was actually reinstated, computed on the basis of the employee to enrich himself at the expense of the petitioner
number of days when the business was in actual operation. company. As such, the computation of his back wages should
The number of days where no work was required and could be computed on a daily basis.
be done by the employees on account of shutdowns due to h.​ Exceptions on Normal Hours of Work
power interruptions, machine repair, and lack of raw i.​ Broken Shifts
materials are not considered hours worked for purposes of ■​ One where the work schedule is not continuous but the
computation. work-hours within the day or week remain
■​ Doctrine: Backwages are granted on the grounds of equity for ■​ The employer shall notify DOLE of the adoption of such
earnings which a worker or employee has lost due to his flexible work arrangement
dismissal from work. The general principle is that an ii.​ Staggered Working Time
employee is entitled to receive as backwages all the amounts
 MODULE 4: WORKING CONDITIONS

■​ Employees start and finish work at different times, often to competitiveness and productivity and give employers and
limit the number of people in an office at any given time employees flexibility in fixing hours of work compatible with
iii.​ Work in Different Shifts business requirements and the employees’ need for a
■​ Work shifts refer to the shift or time period of work in a day balanced work life.
where there is more than 1 operating time ■​ A flexible work arrangement is anchored on a voluntary basis
iv.​ Reduction of Workdays on Account of Losses and conditions mutually acceptable to both the employer and
■​ One where normal work days per week are reduced but the employees. It is recognized as beneficial in terms of
should not last for more than 6 months reduction of business costs and helps in saving jobs while
■​ Is allowed provided that employers comply with minimum maintaining competitiveness and productivity in industries.
wage and benefit regulations and on the following grounds: vii.​ Department Advisory No. 2, Series of 2009 on January 29,
●​ Legitimate business purposes 2009 enunciating the Guidelines on Adoption of Flexible Work
●​ Serious losses (substantial) Arrangements
●​ Good faith and consultation viii.​ Compressed Workweek
●​ Procedural compliance ■​ Refers to one where the normal workweek is reduced to less
v.​ Flexible Work Schedule under Republic Act No. 8972 than six (6) days but the total number of work hours of 48
■​ The right granted to a solo parent employee to vary his/her hours
arrival and departure time without affecting the core work ■​ The normal workday is increased to more than 8 hours but
hours as defined by the employer. not to exceed 12 hours, without corresponding overtime
■​ The employer shall provide for a flexible working schedule for premium.
solo parents: Provided, That the same shall not affect ■​ The concept, effectivity, and implementation can be adjusted
individual and company productivity: Provided, further, That accordingly depending on the normal workweek of the
any employer may request exemption from the above company, but shall be based on voluntary agreements
requirements from the DOLE on certain meritorious grounds. between the parties
vi.​ Flexible Work Arrangement during Economic Difficulties and ■​ The adoption of FWA shall in no case result to diminution of
National Emergencies existing benefits
■​ Flexible work arrangements may be adopted as one of the ■​ Requires notification to DOLE
coping mechanisms and remedial measures in times of ix.​ Part-Time Work
economic difficulties and national emergencies. Adoption of ■​ A job that offers fewer hours than the standard full-time work
flexible work arrangements is considered as a better schedule
alternative than the outright termination of the services of ■​ Does not include roles with temporarily reduced work hours
the employees or the total closure of the establishment.
Further, it may also be adopted in order to improve business
 MODULE 4: WORKING CONDITIONS

i.​ Hours of Work of Hospital and Clinic Personnel (Rule 1-A, ■​ Regular working days of covered employees shall not be more
Book III, ORILC) than 5 days in a work week
i.​ Coverage ■​ Work week may begin at any hour and on any day, including
■​ All hospitals and clinics, including those with a bed capacity Saturday or Sunday, designated by the employer
of less than 100 which are situated in cities or municipalities v.​ Overtime Work
with a population of 1 million or more; and ■​ Employees are allowed to be scheduled to work for more
■​ All hospitals and clinic with a bed capacity of at least 100, than 5 days or 40 hours a week, where the exigencies of the
irrespective of the size of the population of the city or service so require as determined by the employer
municipality where they may be situated ■​ RULE: Employee is to be paid for the overtime work an
ii.​ Hospitals and Clinics additional compensation equivalent to his regular wage plus
■​ A place devoted primarily to the maintenance and operation at least 30% thereof, subject to the provisions of the ORILC
of facilities for the diagnosis, treatment and care of on the payment of additional compensation for work
individuals suffering from illness, disease, injury, or performed on special and regular holidays and on rest days
deformity, or in need of obstetrical or other medical and vi.​ San Juan de Dios Hospital Employees Association v.
nursing care NLRC (GR No. 126383, November 28, 1977)
■​ Shall also be construed as any institution, building, or place ■​ Facts: The petitioners are the officers of San Juan de Dios
where there are installed beds, or cribs, or bassinets for 24 Hospital Employees Association, the rank and file
hours use or longer by patients in the treatment of disease, employee-union of the San Juan de Dios Hospital. They sent
injuries, deformities, or abnormal physical and mental states, a 4 page letter in 1991, which requested for the expeditious
maternity cases or sanitorial care; or infirmaries, nurseries, implementation and payment of the 40 hours/5 day
dispensaries, and such other similar names by which they workweek with compensable weekly 2 days off provided by RA
may be designated 5901 and clarified by the Secretary of Labor’s Policy
iii.​ Regular Working Hours Instructions No. 54. The employees then filed a complaint
■​ Not more than 8 hours in any 1 day and not more than 40 for claims for statutory benefits under the above-cited law
hours in any 1 week and policy issuance, following the hospital’s failure to give a
■​ “Day” shall mean a work day of 24 consecutive hours favorable response. The LA dismissed the complaint, which
beginning at the same time each calendar year was affirmed by the NLRC.
■​ “Week” shall mean the work of 168 consecutive hours or 7 ■​ Issue: WON the NLRC committed grave abuse of discretion in
consecutive 24-hour work days, beginning at the same hour concluding that Policy Instructions No. 54 proceeded from a
and on the same calendar day each calendar week wrong interpretation of RA 9501 and Article 83 of the Labor
iv.​ Regular Working Days Code
 MODULE 4: WORKING CONDITIONS

○​ WON Policy Instructions No. 54 issued by then Labor j.​ Normal Work Week
Secretary Franklin M. Drilon is valid or not ■​ Maximum of 40 or 48 hours in any one week (depending on a
■​ Ruling: The decision appealed from is AFFIRMED. 5-day or 6-day workweek)
■​ Doctrine: RA 5901 was repealed with the passage of the k.​ Compressed Work Week
Labor Code. Accordingly, only Article 83 of the Labor Code i.​ Bisig Manggagawa v. Tryco, GR No. 151309, October 15,
which appears to have substantially incorporated or 2008
reproduced RA 9501 may support Policy Instructions No. 54 ■​ Facts: Tryco Pharma Corporation (manufacturer of veterinary
on which the latter’s validity may be gauged. Article 83 of the medicines) hired Joselito Lariño (helper), Vivencio Barte
Labor Code states: (shipment helper), Saturnino Egera and Simplicio Aya-ay
○​ Health personnel in cities and municipalities with a (factory workers) as its regular employees who are stationed
population of at least one million (1,000,000) or in at its principal office in Caloocan City. The employees are
hospitals and clinics with a bed capacity of at least one members of Bisig Manggagawa sa Tryco (BMT), the exclusive
hundred (100) shall hold regular office hours for eight (8) bargaining representative of the rank-and-file employees.
hours a day, for five (5) days a week, exclusive of time for Tryco and BMT signed a MOA that provided for a compressed
meals, except where the exigencies of the service require workweek schedule, setting the regular working hours as
that such personnel work for six (6) days or forty-eight 8AM-6:12PM from Monday to Friday. The MOA specifically
(48) hours, in which case they shall be entitled to an stated that the employee’s right to claim overtime pay for
additional compensation of at least thirty per cent (30%) work rendered from 5PM-6:12PM as the compressed
of their regular wage for work on the sixth day. workweek schedule also consists of the 46 hours set in the
■​ Application: There is nothing in the law that supports the regular schedule. In March 1997, Tryco received a letter from
assertion that personnel in subject hospitals and clinics are the Department of Agriculture reminding them that its
entitled to a full weekly wage of 7 days for having completed production should be conducted in San Rafael, Bulacan and
the 40 hour/5 day workweek in any given workweek. Even if not in Caloocan City. Accordingly, Tryco directed Aya-ay to
RA 5901 was consulted, nothing therein indicated the 2 days report to Bulacan, but the latter refused. Subsequently, the
off with pay. In fact, the explanatory note of the bill stated other employees were also directed to report in Bulacan.
that the sole purpose is to shorten the working hours of BMT opposed the transfer on the grounds of unfair labor
health personnel and not to dole out a 2 days off with pay. If practice. After which, the employees filed separate
the employees were entitled to 2 days off with pay, then there complaints for illegal dismissal, underpayment of wages,
is no sense at all as to why an additional compensation of nonpayment of overtime pay and SIL, and refusal to bargain
25% percent of the regular rate is added to the latter for work against Tryco and its President. The union alleged that the
performed on Sunday or for work exceeding the 40 hour company transferred the employees to paralyze the union,
workweek. which the company averred that the employees were not
 MODULE 4: WORKING CONDITIONS

dismissed but merely refused to comply with the ●​ Mere transfer of the employees does not seem to paralyze
management’s directive, and that they had already been the union since the latter is not deprived of the member’s
planning to comply with the government’s letter to move their membership if their work assignments were only
activities from Caloocan City to San Rafael. The LA dismissed transferred to another location. Furthermore, there is no
the case in 1998 for lack of merit, finding that the indication that the transfer orders were motivated by an
employee’s transfer would not paralyze the union and that intention to interfere with the employees’ right to organize.
their money claims were unjustified. Particularly, they were ■​ Doctrine: A MOA is enforceable and binding against its
not entitled to overtime pay due to the compressed workweek parties, especially if it is shown that the person making any
agreement between the union and management. The NLRC waivers in the MOA is done voluntarily, with full understanding
affirmed the Decision, which was also affirmed by the CA, of what he was doing, and the consideration for any quitclaim
who upheld the enforcement of the MOA in the waiver of is credible and reasonable. Furthermore, the MOA is based
overtime pay. on DO 21, which sanctions the waiver of overtime pay in
■​ Issues: WON the CA erred in: consideration of the benefits that the employees will derive
●​ Affirming the ruling of the LA and NLRC that there was no from the adoption of a compressed workweek scheme.
illegal dismissal of the employees ■​ Application: The compressed workweek scheme of the
●​ Not finding that the company committed acts of unfair labor company complied with the conditions set by DOLE in DO 21:
practice ●​ Employees voluntarily agree to work more than 8 hours a
●​ Not finding and concluding that the employees are entitled day the total in a week of which shall not exceed their
to their money claims and to damages, as well as litigation normal weekly hours of work prior to adoption of the
and attorney’s fees compressed workweek arrangement
■​ Ruling: The petition is DENIED. The CA’s Decision is ●​ There will not be any diminution whatsoever in the pay and
AFFIRMED. fringe benefits of the employees
■​ Doctrine: Management prerogative to transfer employees ●​ If an employee is required or permitted to work in excess of
■​ Application: Tryco’s decision to transfer its production his normal weekly hours of work prior to the adoption, all
activities was within its inherent right to control and manage such excess hours shall be considered overtime work and
its enterprise effectively, and is not generally constitutive of shall be compensated
constructive dismissal. Transfer of employees is allowed for ●​ Appropriate waivers with respect to overtime premium pay
so long as it is not unreasonable or prejudicial to the for work performed in excess of 8 hours a day may be
employee or involve any diminution in salaries or benefits. devised by the parties to the agreement
Mere incidental inconvenience is not sufficient to warrant a ●​ The effectivity and implementation of the new working time
claim of constructive dismissal. arrangement shall be by agreement of the parties
 MODULE 4: WORKING CONDITIONS

Considering that the MOA clearly stated that the employee schedule was an exercise of the company’s management
waives the payment of overtime pay in exchange of a 5-day prerogative on account of the Asian currency crisis, further
workweek, there is no room for interpretation and its terms ruling that Article 283 was not applicable in the case since
should be implemented as they are written. no closure nor reduction of employees was undertaken. On
ii.​ Linton Commercial Co, Inc. v. Hellera, GR No. 163147, appeal, the CA reversed the NLRC’s decision, finding that the
October 10, 2007 employees were constructively dismissed due to the short
■​ Facts: Linton is a domestic corporation engaged in the period of time between the report to DOLE and the actual
business of importation, wholesale, retail and fabrication of implementation of the compressed workweek. Furthermore, it
steel and its by-products. In December 17, 1997, Linton was found that Linton failed to present adequate evidence to
issued a memorandum addressed to its employees informing prove that it was suffering from substantial losses. It also
them of the company’s decision to suspend its operation gave no credit to the 21 quitclaims considering the economic
from December 18, 1997-Janaury 5, 1998 due to the disadvantage of the employees.
currency crisis that affected its business operations. Linton ■​ Issues: WON the CA erred when:
submitted an establishment termination report to DOLE ●​ It considered the petition as having been filed by all 68
regarding the temporary closure. On January 7, 1998, Linton workers and disregarding the fact that only Hellera et al.
issued another memorandum implementing a new was indicated as petitioners in the caption and that 21 of
compressed workweek schedule of 3 days effective January the workers executed waivers and quitclaims
12. On the same day, Linton submitted another report ●​ In annulling the release and quitclaims even if no such
concerning the rotation of its workers and proceeded with the relief was prayed for in the petition nor was it raised as an
implementation without waiting for DOLE’s approval. As a issue
result, 68 workers filed a complaint for illegal reduction of ●​ In holding that the reduction of workdays is equivalent to
workdays with the Arbitration Branch of the NLRC, arguing constructive dismissal
that Linton failed to observe Article 283 of the Labor Code ■​ Issue: WON there was an illegal reduction of work when
which required submission of notice to DOLE 1 month prior to Linton implemented a compressed workweek by reducing
the implementation of reduction of personnel. Pending from 6 to 3, the number of working days with the employees
resolution, 21 of the workers signed individual release and working on a rotation basis
quitclaim documents stating that they had voluntarily ■​ Ruling: The petition is GRANTED IN PART. The CA’s Decision is
resigned from Linton and that they had been paid all AFFIRMED WITH MODIFICATIONS to the effect that the 21
monetary compensation due them. After this, the LA found workers are no longer entitled to back payments.
the company guilty of illegal reduction of work hours and ■​ Substantial Issues: Non-inclusion of one or some of the
directed them to pay each of the workers their compensation complainants is not fatal to the cause of action, provided
from January to July of 1998. The NLRC reversed this that there is a statement in the body of the petition indicating
Decision on the ground that the compressed workweek that a defendant was made a party to such action.
 MODULE 4: WORKING CONDITIONS

Furthermore, the CA should not have evaluated the validity of ■​ XPN: When the alleged waiver of overtime pay is in
the quitclaims since the matter was never raised in issue in consideration of benefits and privileges which may even
the first place. exceed the overtime pay, the waiver may be permitted
■​ Doctrine: The Bureau of Working Conditions of the DOLE iv.​ Overtime work, as a rule, can be rendered only voluntarily,
released a bulletin for the valid reduction of working days except in the cases of Art. 89
when preventing serious losses due to causes beyond his v.​ Article 87, 88 and 89 of the Labor Code
control, such as when there is a substantial slump in the ■​ Art. 87. Premium and Overtime Pay for Holiday and Rest Day
demand for goods or services or when there is a lack of raw Work. — Any employee performing work on holidays or on his
materials. scheduled rest days, not exceeding eight (8) hours, shall be
■​ Application: The company’s financial reports showed that paid an additional compensation of not less than thirty
while the company suffered some losses in 1997, it retained percent (30%) of his regular wage. For work performed in
a considerable amount of earnings and operating income to excess of eight (8) hours on such days, he shall be paid an
sufficiently sustain its operations. Furthermore, Linton failed additional compensation equivalent to his rate for the first
to provide sufficient and credible evidence that justified eight (8) hours on a holiday or rest day plus at least thirty
suspension of work or retrenchment of employees. Overall, percent (30%) thereof.
the compressed workweek arrangement was unjustified and ■​ Art. 88. Undertime Not Offset by Overtime. — Undertime
illegal. As such, the remaining employees who did not work on any particular day shall not be offset by overtime
execute release and quitclaims are entitled to monetary work on any other day. Permission given to the employee to
awards with an interest rate of 6% per annum from the date go on leave on some other day of the week shall not exempt
of promulgation of the CA’s decision until the finality of the the employer from paying the additional compensation
SC’s decision, and thereafter 12% per annum until full required in this Chapter.
payment. ■​ Art. 89. Emergency Overtime Work. — Any employee may be
l.​ Overtime Work and Pay required by the employer to perform overtime work in any of
i.​ Work exceeding 8 hours within the 24-hour workday (comes the following cases:
within the work day, unless a valid contract states a different ●​ When the country is at war or when any other national or
basis) local emergency has been declared by the National
ii.​ Overtime pay is 25% of the regular wage if the work is done on Assembly or the Chief Executive;
a regular workday; 30% if on a holiday or rest pay ●​ When it is necessary to prevent loss of life or property or in
iii.​ GR: Right to overtime pay cannot be waived. Any stipulation of case of imminent danger to public safety due to an actual
work beyond 8 hours without additional compensation is or impending emergency in the locality caused by serious
contrary to law, hence, null and void accidents, fire, flood, typhoon, earthquake, epidemic, or
other disaster or calamity;
 MODULE 4: WORKING CONDITIONS

●​ When there is urgent work to be performed on machines, (d) Workers who have no regular working days shall be
installation, or equipment, in order to avoid serious loss or entitled to the benefits provided in this Rule.
damage to the employer or some other cause of similar ■​ Sec. 9. Regular holiday falling on rest days or Sundays. — (a)
nature; A regular holiday falling on the employee’s rest day shall be
●​ When the work is necessary to prevent loss or damage to compensated accordingly.
perishable goods; and
●​ Where the completion or continuation of the work started (b) Where a regular holiday falls on a Sunday, the following
before the eighth hour is necessary to prevent serious day shall be considered a special holiday for purposes of the
obstruction or prejudice to the business or operations of Labor Code, unless said day is also a regular holiday.
the employer. ■​ Sec. 10. Successive regular holidays. — Where there are two
(2) successive regular holidays, like Holy Thursday and Good
Any employee required to render overtime work under this Friday, an employee may not be paid for both holidays if he
Article shall be paid the additional compensation required in absents himself from work on the day immediately preceding
this Chapter. the first holiday, unless he works on the first holiday, in which
vi.​ Secs. 8, 9, and 10, Rule I, Book III, Rules Implementing the case he is entitled to his holiday pay on the second holiday.
Labor Code ■​ For employees paid on a monthly basis, the first 100% (of the
■​ Sec. 8. Holiday pay of certain employees. — (a) Private 130) corresponding to the regular remuneration may or may
school teachers, including faculty members of colleges and not already be part of the monthly salary. If it is, then the
universities, may not be paid for the regular holidays during employee is entitled to collect only the premium of 30%. If it
semestral vacations. They shall, however, be paid for the is not, then the employee has the right to receive the entire
regular holidays during Christmas vacation; 130%
vii.​ Rest Day and Premium Pay
(b) Where a covered employee, is paid by results or output, ■​ Articles 91, 92, and 93, Labor Code
such as payment on piece work, his holiday pay shall not be ●​ Art. 91. Right to Weekly Rest Day. — It shall be the duty of
less than his average daily earnings for the last seven (7) any employer, whether operating for profit or not, to provide
actual working days preceding the regular holiday; Provided, each of his employees a rest period of not less than
However, that in no case shall the holiday pay be less than twenty-four (24) consecutive hours for every seven (7)
the applicable statutory minimum wage rate. consecutive days.
●​ Art. 92. Determination of Rest Day. — The employer shall
(c) Seasonal workers may not be paid the required holiday determine and schedule the weekly rest day of his
pay during off-season when they are not at work. employees, subject to collective bargaining agreement and
to such rules and regulations as the Secretary of Labor
may prescribe. The preference of the employees as to their
 MODULE 4: WORKING CONDITIONS

weekly rest days shall be respected by the employer if the business on Sundays and holidays provided that the
same is based on religious grounds. employees are given the weekly rest day and the benefits
○​ If an employee prefers a particular day of the week as his as provided in this Rule.
rest day, he should make it known to the employer in ●​ Sec. 3. Weekly rest day. — Every employer shall give his
writing at least 7 days before the day preferred employees a rest period of not less than twenty-four (24)
○​ If the choice of the employee will prejudice the operations consecutive hours after every six consecutive normal work
of the undertaking and the employer cannot normally be days.
expected to resort to other remedial measures, the ●​ Sec. 4. Preference of employee. — The preference of the
employer may schedule the rest day that meets the employee as to his weekly day of rest shall be respected by
employee’s choice for at least 2 days a month. the employer if the same is based on religious grounds.
●​ Art. 93. When Employer May Require Work on a Rest Day. The employee shall make known his preference to the
— The employer may require his employees to work on any employer in writing at least seven (7) days before the
day: desired effectivity of the initial rest day so preferred.
○​ In case of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake, Where, however, the choice of the employee as to his rest
epidemic or other disaster or calamity to prevent loss of day based on religious grounds will inevitably result in
life and property, or imminent danger to public safety; or serious prejudice or obstruction to the operations of the
in cases of urgent work to be performed on the undertaking and the employer cannot normally be expected
machinery, equipment, or installation, to avoid serious to resort to other remedial measures, the employer may so
loss which the employer would otherwise suffer; schedule the weekly rest day of his choice for at least two
○​ In the event of abnormal pressure of work due to special (2) days in a month.
circumstances, where the employer cannot ordinarily be ●​ Sec. 5. Schedule of rest day. — (a) Where the weekly rest
expected to resort to other measures; is given to all employees simultaneously, the employer shall
○​ To prevent loss or damage to perishable goods; make known such rest period by means of a written notice
○​ Where the nature of the work requires continuous posted conspicuously in the work place at least one week
operations and the stoppage of work may result in before it becomes effective.
irreparable injury or loss to the employer; and
○​ Under other circumstances analogous or similar to the (b) Where the rest period is not granted to all employees
foregoing as determined by the Secretary of Labor. simultaneously and collectively, the employer shall make
■​ Secs. 2, 3, 4, 5, 6, 7, 8, and 9, Rule III, Book III, Rules known to the employees their respective schedules of
Implementing the Labor Code weekly rest through written notices posted conspicuously in
●​ Sec. 2. Business on Sundays/Holidays. — All the work place at least one week before they become
establishments and enterprises may operate or open for effective.
 MODULE 4: WORKING CONDITIONS

●​ Sec. 6. When work on rest day authorized. — An employer provided in this Section: Provided, However, that where an
may require any of his employees to work on his scheduled employee volunteers to work on his rest day under other
rest day for the duration of the following emergencies and circumstances, he shall express such desire in writing,
exceptional conditions: subject to the provisions of Section 7 hereof regarding
additional compensation.
(a) In case of actual or impending emergencies caused by ●​ Sec. 7. Compensation on Rest day/Sunday/holiday. — (a)
serious accident, fire, flood, typhoon, earthquake, epidemic Except those employees referred to under Section 2, Rule I,
or other disaster or calamity, to prevent loss of life or Book Three, an employee who is made or permitted to work
property, or in cases of force majeure or imminent danger on his scheduled rest day shall be paid with an additional
to public safety; compensation of at least 30% of his regular wage. An
employee shall be entitled to such additional compensation
(b) In case of urgent work to be performed on machineries, for work performed on a Sunday only when it is his
equipment or installations to avoid serious loss which the established rest day.
employer would otherwise suffer;
(b) Where the nature of the work of the employee is such
(c) In the event of abnormal pressure of work due to special that he has no regular work days and no regular rest days
circumstances, where the employer cannot ordinarily be can be scheduled, he shall be paid an additional
expected to resort to other measures; compensation of at least 30% of his regular wage for work
performed on Sundays and holidays.
(d) To prevent serious loss of perishable goods;
(c) Work performed on any special holiday shall be paid with
(e) Where the nature of the work is such that the an additional compensation of at least 30% of the regular
employees have to work continuously for seven (7) days in wage of the employees. Where such holiday work falls on
a week or more, as in the case of the crew members of a the employee’s scheduled rest day, he shall be entitled to
vessel to complete a voyage and in other similar cases; additional compensation of at least 50% of his regular
and wage.

(f) When the work is necessary to avail of favorable weather (d) The payment of additional compensation for work
or environmental conditions where performance or quality performed on regular holiday shall be governed by Rule IV,
of work is dependent thereon. Book Three, of these regulations.

No employee shall be required against his will to work on (e) Where the collective bargaining agreement or other
his scheduled rest day except under circumstances applicable employment contract stipulates the payment of a
 MODULE 4: WORKING CONDITIONS

higher premium pay than that prescribed under this wage. An employee shall be entitled to such additional
Section, the employer shall pay such higher rate. compensation for work performed on Sunday only when it is
●​ Sec. 8. Paid-off days. — Nothing in this Rule shall justify an his established rest day.
employer in reducing the compensation of his employees
for the unworked Sundays, holidays, or other rest days When the nature of the work of the employee is such that he
which are considered paid-off days or holidays by has no regular work days and no regular rest days can be
agreement or practice subsisting upon the effectivity of the scheduled, he shall be paid an additional compensation of at
Code. least thirty percent (30%) of his regular wage for work
●​ Sec. 9. Relation to agreements. — Nothing herein shall performed on Sundays and holidays.
prevent the employer and his employees or their
representatives in entering into any agreement with terms Work performed on any legal holiday shall be paid with an
more favorable to the employees than those provided additional compensation of at least thirty percent (30%) of
herein, or be used to diminish any benefit granted to the the regular wage of the employee. Where such holiday work
employees under existing laws, agreements, and voluntary falls on the employee's scheduled rest day, lie shall be
employer practices. entitled to an additional compensation of at least fifty
m.​ Holiday Pay percent (50%) of his regular wage.
i.​ A day’s pay given by law to an employee even if he does not
work on a regular holiday Where the collective bargaining agreement or other
ii.​ Limited to each of the regular holidays listed by law. It is not applicable employment contract stipulates the payment of a
demandable for any other kind of non working day higher premium pay than that prescribed under this Article,
iii.​ Generally given to all employees except for: the employer shall pay such higher rate.
■​ Government or political subdivision employees, including v.​ Secs. 3, 4, 5, 6, 7, 8, 9, 10, and 11, Rule IV, Book III, Rules
those in GOCCs ILC
■​ Those of retail and service establishments regularly ■​ Sec. 3. Holiday Pay. — Every employer shall pay his
employing less than 10 workers employees their regular daily wage for any worked regular
■​ Domestic helpers and persons in the personal service of holidays.
another
■​ Managerial employees and officers/members of the As used in the rule, the term ‘regular holiday’ shall
managerial staff as defined in Book III exclusively refer to: New Year’s Day, Maundy Thursday, Good
iv.​ Article 94, Labor Code Friday, the ninth of April, the first of May, the twelfth of June,
■​ Where an employee is made or permitted to work on his the last Sunday of August, the thirtieth of November, the
scheduled rest day, he shall be paid an additional twenty-fifth and thirtieth of December. Nationwide special
compensation of at least thirty percent (30%) of his regular
 MODULE 4: WORKING CONDITIONS

days shall include the first of November and the last day of (b) Employees shall grant the same percentage of the holiday
December. pay as the benefit granted by competent authority in the form
of employee’s compensation or social security payment,
As used in this Rule, legal or regular holiday and special whichever is higher, if they are not reporting for work while on
holiday shall now be referred to as ‘regular holiday’ and such benefits.
‘special day’, respectively.
■​ Sec. 4. Compensation for holiday work. — Any employee who (c) Where the day immediately preceding the holiday is a
is permitted or suffered to work on any regular holiday, not non-working day in the establishment or the scheduled rest
exceeding eight (8) hours, shall be paid at least two hundred day of the employee, he shall not be deemed to be on leave
percent (200%) of his regular daily wage. If the holiday work of absence on that day, in which case he shall be entitled to
falls on the scheduled rest day of the employee, he shall be the holiday pay if he worked on the day immediately
entitled to an additional premium pay of at least 30% of his preceding the non-working day or rest day.
regular holiday rate of 200% based on his regular wage rate. ■​ Sec. 7. Temporary or periodic shutdown and temporary
■​ Sec. 5. Overtime pay for holiday work. — For work performed cessation of work. — (a) In cases of temporary or periodic
in excess of eight hours on a regular holiday, an employee shutdown and temporary cessation of work of an
shall be paid an additional compensation for the overtime establishment, as when a yearly inventory or when the repair
work equivalent to his rate for the first eight hours on such or cleaning of machineries and equipment is undertaken, the
holiday work plus at least 30% thereof. regular holidays falling within the period shall be
compensated in accordance with this Rule.
Where the regular holiday work exceeding eight hours falls on
the scheduled rest day of the employee, he shall be paid an (b) The regular holiday during the cessation of operation of an
additional compensation for the overtime work equivalent to enterprise due to business reverses as authorized by the
his regular holiday-rest day for the first 8 hours plus 30% Secretary of Labor and Employment may not be paid by the
thereof. The regular holiday rest day rate of an employee employer.
shall consist of 200% of his regular daily wage rate plus 30% ■​ Sec. 8. Holiday pay of certain employees. — (a) Private
thereof. school teachers, including faculty members of colleges and
■​ Sec. 6. Absences. — (a) All covered employees shall be universities, may not be paid for the regular holidays during
entitled to the benefit provided herein when they are on leave semestral vacations. They shall, however, be paid for the
of absence with pay. Employees who are on leave of absence regular holidays during Christmas vacation;
without pay on the day immediately preceding a regular
holiday may not be paid the required holiday pay if he has not (b) Where a covered employee, is paid by results or output,
worked on such regular holiday. such as payment on piece work, his holiday pay shall not be
less than his average daily earnings for the last seven (7)
 MODULE 4: WORKING CONDITIONS

actual working days preceding the regular holiday; Provided, ■​ All service charges collected by hotels, restaurants and
However, that in no case shall the holiday pay be less than similar establishments (including those operating primarily as
the applicable statutory minimum wage rate. private subsidiaries of the government) shall be distributed
completely and equally among the covered workers except
(c) Seasonal workers may not be paid the required holiday managerial employees.
pay during off-season when they are not at work. ■​ In the event that the minimum wage is increased by law of
wage order, service charges paid to the covered employees
(d) Workers who have no regular working days shall be shall not be considered in determining the employer’s
entitled to the benefits provided in this Rule. compliance with the increased minimum age.
■​ Sec. 9. Regular holiday falling on rest days or Sundays. — (a) ■​ To facilitate resolution of any dispute between the
A regular holiday falling on the employee’s rest day shall be management and the employees on the distribution of
compensated accordingly. service charges, a grievance mechanism shall be
established. If no grievance mechanism is established or if
(b) Where a regular holiday falls on a Sunday, the following inadequate, the grievance shall be referred to the regional
day shall be considered a special holiday for purposes of the office of the Department of Labor and Employment which has
Labor Code, unless said day is also a regular holiday. jurisdiction over the workplace for conciliation.
■​ Sec. 10. Successive regular holidays. — Where there are two ■​ For purposes of this Article, managerial employees refer to
(2) successive regular holidays, like Holy Thursday and Good any person vested with powers or prerogatives to lay down
Friday, an employee may not be paid for both holidays if he and execute management policies or hire, transfer, suspend,
absents himself from work on the day immediately preceding pay-off, recall, discharge, assign or discipline employees or to
the first holiday, unless he works on the first holiday, in which effectively recommend such managerial actions. (As
case he is entitled to his holiday pay on the second holiday. amended by R.A. 11360[2019])
■​ Sec. 11. Relation to agreements. — Nothing in this Rule ii.​ All employees shall share in the service charges collected,
shall justify an employer in withdrawing or reducing any regardless of position or employment status
benefits, supplements or payments for unworked holidays as iii.​ Secs. 1, 2, 3, 4, 5, 6
provided in existing individual or collective agreement or ■​ Sec. 1. Coverage. — This rule shall apply only to
employer practice or policy. establishments collecting service charges such as hotels,
vi.​ Presidential Proclamation No. 90, November 9, 2022 entitled restaurants, lodging houses, night clubs, cocktail lounge,
Declaring the Regular Holidays and Special (Non Working) massage clinics, bars, casinos and gambling houses, and
Days for the Year 2023 similar enterprises, including those entities operating
■​ For the Year 2025 primarily as private subsidiaries of the Government.
n.​ Service Charge ■​ Sec. 2. Employees covered. — This rule shall apply to all
i.​ Article 96, Labor Code employees of covered employers, regardless of their
 MODULE 4: WORKING CONDITIONS

positions, designations or employment status, and than those provided herein, or be used to diminish any
irrespective of the method by which their wages are paid benefit granted to the employees under existing laws,
except to managerial employees. agreement and voluntary employer practice.

As used herein, a “managerial employee” shall mean one C. WAGE AND SALARY
who is vested with powers or prerogatives to lay down and a.​ Article 97(f) of the Labor Code
execute management policies and/or to hire, transfer, i.​ “Wage” paid to any employee shall mean the remuneration or
suspend, lay-off, recall, discharge, assign, or discipline earnings, however designated, capable of being expressed in
employees or to effectively recommend such managerial terms of money, whether fixed or ascertained on a time, task,
actions. All employees not falling within this definition shall piece, or commission basis, or other method of calculating
be considered rank-and-file employees. the same, which is payable by an employer to an employee
■​ Sec. 3. Distribution of service charges. — All service charges under a written or unwritten contract of employment for work
collected by covered employers shall be distributed at the done or to be done, or for services rendered or to be rendered
rate of 85% for the employees and 15% for the management. and includes the fair and reasonable value, as determined by
The 85% shall be distributed equally among the covered the Secretary of Labor and Employment, of board, lodging, or
employees. The 15% shall be for the disposition by other facilities customarily furnished by the employer to the
management to answer for losses and breakages and employee. “Fair and reasonable value” shall not include any
distribution to managerial employees at the discretion of the
profit to the employer, or to any person affiliated with the
management in the latter case.
employer.
■​ Sec. 4. Frequency of distribution. — The shares referred to
b.​ Principle of No Work, No Pay and a Fair Day’s Wage for a
herein shall be distributed and paid to the employees not
Fair Day’s Labor
less than once every two (2) weeks or twice a month at
i.​ The basic factor in determining employee’s wages
intervals not exceeding sixteen (16) days.
ii.​ Based on the rule of “a fair day’s wage for a fair day’s labor”,
■​ Sec. 5. Integration of service charges. — In case the service
which governs the relation between labor and capital
charges is abolished the share of covered employees shall
iii.​ GR: If there is no work performed by the employee, there can
be considered integrated in their wages. The basis of the
be no wage or pay
amount to be integrated shall be the average monthly share
■​ XPN: Except When Illegally Prevented by Management
of each employee for the past twelve (12) months
immediately preceding the abolition of withdrawal of such ●​ If the laborer was able, willing and ready to work but was
charges. illegally locked out, dismissed or suspended
■​ Sec. 6. Relation to agreements. — Nothing in this Rule shall ●​ *The principle contemplates a “no work” situation where
prevent the employer and his employees from entering into the employees voluntarily absent themselves
any agreement with terms more favorable to the employees ■​ The principle applies even if the employee is suspended
 MODULE 4: WORKING CONDITIONS

c.​ Principle of Equal Pay for Equal Work the requirements of the Rules. The exemption shall be
i.​ Persons who work with substantially equal qualification, skill, subject to such terms and conditions and for such period of
effort and responsibility, under similar conditions, should be time as the Secretary may prescribe. The law on cooperatives
paid similar salaries and its IRR contain no provision superseding or contradicting
ii.​ If an employer accords employees the same position and the exceptions mentioned above.
rank, the presumption is that these employees perform equal ■​ Barangay micro business enterprises (RA 9178 or the BMBE
work" as "borne by logic and human experience. Act of 2002)
d.​ Minimum Wage ●​ Any business entity or enterprise engaged in the
i.​ The lowest rate fixed by law that an employer can pay his production, processing or manufacturing of products or
employees commodities, including agro-processing, trading and
ii.​ Not dependent on the employer’s ability to pay, so the services, whose total assets including those arising from
employer cannot exempt himself from liability to pay minimum loans but exclusive of the land on which the particular
wages because of the poor financial condition of the company business entity’s office, plant and equipment are situated,
iii.​ Wage orders usually allow petitions for exemption from shall not be more than Php3, 000, 000
prescribed wage rates v.​ Latest Wage Order for Region 7
iv.​ Exceptions under the Implementing Rules ■​ Increase from Php33 to Php43 per day for those in the
■​ Household or domestic helpers, including family drivers and private sector
persons in the personal service of another
■​ Homeworkers engaged in needle-work
■​ Workers employed in any establishment duty registered with
the National Cottage Industries and Development Authority in
accordance with RA 3470 provided that such workers
perform the work in their respective homes
■​ Workers in any duly registered cooperative when so
recommended by the Bureau of Cooperative Development
and upon approval of the Secretary of Labor and
Employment; Provided, however, that such recommendation
shall be given only for the purpose of making the cooperative
viable and upon finding and certification of said Bureau
supported by adequate proof, that the cooperative cannot
resort to other remedial measures without serious loss or
prejudice to its operation except through its exemption from
 MODULE 4: WORKING CONDITIONS

vi.​ Exemptions from Wage Order ■​ Employers are obligated to rectify wage distortions (use of
■​ Rule VII, Sections 1-2 of NWPC Guidelines No. 03, Series of the word “shall” in the provision)
2022 or the Omnibus Rules on Minimum Wage Determination ■​ Restoration must not necessarily be to the last peso.
●​ Retail/Service Establishments Regularly Employing Not Restoration of appreciable differential, a significant pay gap,
More than 10 Workers should suffice as correction
●​ Establishments Adversely Affected by Natural Calamities ■​ Only limited to distortions arising from compliance with a
and/or Human-Induced Disasters government order, and not those revisions voluntarily initiated
●​ Section 2. Criteria for Exemption: by the employer
○​ For retail/service establishments…exemption may be ■​ Art. 124, Labor Code
granted if it is engaged in the retail sale of good and/or ●​ The regional minimum wages to be established by the
services to end users for personal or household use Regional Board shall be as nearly adequate as is
economically feasible to maintain the minimum standards
For purposes of this rule, regular shall mean that an of living necessary for the health, efficiency and general
establishment is employing not more than 10 workers for well-being of the employees within the framework of the
an aggregate of at least 6 months in a calendar year national economic and social development program. In the
○​ For an establishment adversely affected by natural determination of such regional minimum wages, the
calamity…the following must be present: Regional Board shall, among other relevant factors,
■​ Establishment must be located in an area covered by a consider the following:
Declaration of State of Calamity issued pursuant to (a) The demand for living wages;
Sec. 16 of RA 10121 or the Philippine DRRM Act of (b) Wage adjustment vis-a-vis the consumer price index;
2010; and (c) The cost of living and changes or increases therein;
■​ The calamity must have occurred within 6 months prior (d) The needs of workers and their families;
to the effectivity of the Wage Order. Where the calamity (e) The need to induce industries to invest in the
occurred during the life of the Wage Order, countryside;
establishments may still apply for exemption but only (f) Improvements in standards of living;
with respect to tranches that are yet to be (g) The prevailing wage levels;
implemented, if any. (h) Fair return of the capital invested and capacity to pay of
vii.​ Wage Distortion employers;
■​ If the pay advantage of a position over another is removed or (i) Effects on employment generation and family income;
significantly reduced by a pay adjustment required by a wage and
order, such pay advantage should somehow be restored (j) The equitable distribution of income and wealth along
■​ Does not require full elimination of salary differences, a the imperatives of economic and social development.
severe contraction is enough
 MODULE 4: WORKING CONDITIONS

The wages prescribed in accordance with the provisions of endeavor to correct such distortions. Any dispute arising
this Title shall be the standard prevailing minimum wages therefrom shall be settled through the National Conciliation
in every region. These wages shall include wages varying and Mediation Board and, if it remains unresolved after ten
within industries, provinces or localities if in the judgment (10) calendar days of conciliation, shall be referred to the
of the Regional Board conditions make such local appropriate branch of the National Labor Relations
differentiation proper and necessary to effectuate the Commission (NLRC). It shall be mandatory for the NLRC to
purpose of this Title. conduct continuous hearings and decide the dispute within
twenty (20) calendar days from the time said dispute is
Any person, company, corporation, partnership or any other submitted for compulsory arbitration.
entity engaged in business shall file and register annually
with the appropriate Regional Board, Commission and the The pendency of a dispute arising from a wage distortion
National Statistics Office an itemized listing of their labor shall not in any way delay the applicability of any increase in
component, specifying the names of their workers and prescribed wage rates pursuant to the provisions of law or
employees below the managerial level, including learners, Wage Order.
apprentices and disabled/handicapped workers who were
hired under the terms prescribed in the employment As used herein, a wage distortion shall mean a situation
contracts, and their corresponding salaries and wages. where an increase in prescribed wage rates results in the
elimination or severe contraction of intentional quantitative
Where the application of any prescribed wage increase by differences in wage or salary rates between and among
virtue of law or Wage order issued by any Regional Board employee groups in an establishment as to effectively
results in distortions of the wage structure within an obliterate the distinctions embodied in such wage structure
establishment, the employer and the union shall negotiate based on skills, length of service, or other logical bases of
to correct the distortions. Any dispute arising from wage differentiation.
distortions shall be resolved through the grievance
procedure under their collective bargaining agreement and, All workers paid by result, including those who are paid on
if it remains unresolved, through voluntary arbitration. piecework, takay, pakyaw or task basis, shall receive not
Unless otherwise agreed by the parties in writing, such less than the prescribed wage rates per eight (8) hours
dispute shall be decided by the voluntary arbitrator or panel work a day, or a proportion thereof for working less than
of voluntary arbitrators within ten (10) calendar days from eight (8) hours.
the time said dispute was referred to voluntary arbitration.
All recognized learnership and apprenticeship agreements
In cases where there are no collective agreements or shall be considered automatically modified insofar as their
recognized labor unions, the employers and workers shall
 MODULE 4: WORKING CONDITIONS

wage clauses are concerned to reflect the prescribed wage 2. That final settlement is made upon completion of the
rates. (As amended by R.A. 6727) work.
e.​ Payment of Wages ■​ No legal requirement for an employer to pay on the 15th or
i.​ Forms of Payment - Art. 102, LC end of the month. Thus, the employer may choose whichever
■​ No employer shall pay the wages of an employee by means of days of the month to pay, depending on whatever is more
promissory notes, vouchers, coupons, tokens, tickets, chits, practical and convenient
or any object other than legal tender, even when expressly ■​ Monthly pay is not allowed in the Philippines
requested by the employee. ■​ Weekly wages is not prohibited
■​ Payment of wages by check or money order shall be allowed ■​ *Those extraordinary events that could not be foreseen, or
when such manner of payment is customary on the date of which, though foreseen, were inevitable
effectivity of this Code, or is necessary because of special iii.​ Place of Payment - Art. 104, LC
circumstances as specified in appropriate regulations to be ■​ Payment of wages shall be made at or near the place of
issued by the Secretary of Labor and Employment or as undertaking, except as otherwise provided by such
stipulated in a collective bargaining agreement. regulations as the Secretary of Labor and Employment may
■​ 3 main modes of payment: legal tender, bank check, and ATM prescribe under conditions to ensure greater protection of
payroll wages.
ii.​ Time of Payment - Art. 103, LC ●​ XPN: Deterioration of peace and order conditions, or by
■​ Wages shall be paid at least once every two (2) weeks or reason of actual or impending emergencies
twice a month at intervals not exceeding sixteen (16) days. If ●​ XPN: Free transportation to the employees back and forth
on account of force majeure or circumstances beyond the ●​ XPN: Under any other analogous circumstances provided,
employer’s control, payment of wages on or within the time that the time spent by the employees in collecting their
herein provided cannot be made, the employer shall pay the wages shall be considered as compensable hours worked
wages immediately after such force majeure* or ■​ If an employer uses ATM payroll available, then there will no
circumstances have ceased. No employer shall make longer be the need for any processing of wages at the office
payment with less frequency than once a month. as wages will be credited to the bank account of the
■​ The payment of wages of employees engaged to perform a employees
task which cannot be completed in two (2) weeks shall be ■​ No payment in any bar, night or day club, drinking
subject to the following conditions, in the absence of a establishment, massage clinic, dance hall, or other similar
collective bargaining agreement or arbitration award: places or in places where games are played with stakes of
1. That payments are made at intervals not exceeding money or things representing money, except in the case of
sixteen (16) days, in proportion to the amount of work persons who are employees in such places.
completed; iv.​ Direct Payment of Wages - Art. 105, LC
 MODULE 4: WORKING CONDITIONS

■​ Wages shall be paid directly to the workers to whom they are ■​ Declaration of bankruptcy or a judicial liquidation must take
due, except: place before the worker’s preference may be enforced.
(a) In cases of force majeure rendering such payment ■​ Establishes not a lien, but a preference of credit in favor of
impossible or under other special circumstances to be employees. This simply means that during bankruptcy,
determined by the Secretary of Labor and Employment in insolvency or liquidation proceedings involving the properties
appropriate regulations, in which case, the worker may be of the employer, the employee’s unpaid wages will be
paid through another person under written authority given satisfied ahead of other claims.
by the worker for the purpose; or ■​ Judicial liquidation is the proper venue for the enforcement of
a creditor’s preferential right such as that established in Art.
(b) Where the worker has died, in which case, the employer 110
may pay the wages of the deceased worker to the heirs of f.​ Facilities vs Supplements
the latter without the necessity of intestate proceedings. i.​ Sec. 5, Rule VII, Book III, IRR of the Labor Code
The claimants, if they are all of age, shall execute an ■​ Facilities: Includes articles or services for the benefit of the
affidavit attesting to their relationship to the deceased and employee or his family; this excludes tools of the trade or
the fact that they are his heirs, to the exclusion of all other articles or service primarily for the benefit of the employee
persons. If any of the heirs is a minor, the affidavit shall be ●​ Lodging and work hour meals
executed on his behalf by his natural guardian or ●​ Transportation allowance
next-of-kin. The affidavit shall be presented to the employer ■​ Supplements: Extra remuneration or special benefits or
who shall make payment through the Secretary of Labor articles or services or tools of the trade given to or received
and Employment or his representative. The representative by laborers over and above their ordinary earning or wages
of the Secretary of Labor and Employment shall act as
●​ Includes pay for holidays and vacation days not worked;
referee in dividing the amount paid among the heirs. The
paid sick leave or maternity leave; overtime rate in excess
payment of wages under this Article shall absolve the
of what is required by law; sick, pension, retirement, and
employer of any further liability with respect to the amount
death benefits, etc
paid.
●​ Granted for the employer’s convenience
v.​ Worker Preference in Case of Bankruptcy of the Employer, Art.
ii.​ Facilities are Deductible from Wage, But Not Supplements
110, LC
■​ Rationale: If the facilities are not furnished, the laborer would
■​ In the event of bankruptcy or liquidation of an employer’s
spend and pay for them just the same
business, his workers shall enjoy first preference as regards
■​ Facilities are NOT automatically deductible and must fit the
their wages and other monetary claims, any provisions of law
following requirements:
to the contrary notwithstanding. Such unpaid wages and
●​ There must be proof that such facilities are customarily
monetary claims shall be paid in full before claims of the
furnished by the trade
government and other creditors may be paid.
 MODULE 4: WORKING CONDITIONS

●​ The provision of deductible facilities must be voluntarily operations and lay off employees due to heavy losses from
accepted in writing (this would prove that the employer was high costs of materials, and enforcement of the Minimum
authorized by the employee to make said deduction) by the Wage Law, among others, which would lead to its
employee immediate bankruptcy. The Court convened the parties for
●​ Facilities must be charged at fair and reasonable value mediation, with the parties reaching an agreement in
iii.​ Computation of the Value of Facilities October 1952, with Section 1 stating that the company
■​ Value of Facilities=Cost of operation and maintenance + agrees to abide by the decision that the SC may render,
adequate depreciation + reasonable allowance (not more and Section 3 stating the parties’ agreement as to the type
than 5.5& interest on the depreciated amount of capital of facilities to be given by the company to its employees
invested by the employer) and which constitute part of their wages. After the SC
■​ *If the fair rental value is lower than the computed value, the affirmed the CIR’s ruling, the union filed a petition for the
former will be used enforcement of the terms of agreement of October 1952,
iv.​ Illustrative Cases: alleging that the Minimum Wage Law modified the minimum
■​ Atok Big Wedge Mutual Benefit Association v. Atok Big cash wage initially set by the CIR. The CIR denied the
petition on the grounds that the parties already knew the
Wedge Mining Company, Inc., G.R. No. L-7349, July 19,
decision of the said Court and the MWL by the time they
19552
entered into the agreement, meaning that the parties had
●​ Facts: In September 1950, the Atok-Big Wedge Mutual
intended to be regulated by their Agreement. The Court
Benefits Association submitted to Atok-Big Wedge Mining
also issued another order that denied the union’s claim for
Co., Inc., several demands, including an increase of
payment of an additional 50% based on the Php 4.00 wage
Php0.50 in daily wage. In the course of conciliatory
for work on Sundays and holidays.
measures with the Court of Industrial Relations, some
●​ Issue: WON Section 1 and 3, particularly on the deductions
demands were granted but rejected the others, including
of the cost of facilities from the minimum wage should be
the demand for increased wages. The Court rendered a
interpreted as:
decision fixing the minimum wage at Php 2.65 a day with
○​ A provisional arrangement pending the Supreme Court’s
the rice ration, or Php 3.20 without rice ration; denying the
decision, or
deduction from such minimum wage, of the value of
○​ A binding, comprehensive agreement covering the period
housing facilities furnished by the company to the laborers,
from August 4, 1952, to December 31, 1954.
as well as the efficiency bonus given to them by the
●​ Issue: WON the additional compensation for work
company; and ordered that the award be applied
performed on Sundays and legal holidays should be
retroactively from the date of the demand (September
computed on the Php 4.00 minimum wage
1950), as agreed by the parties. Subsequently, the
employer filed an urgent petition for authority to stop ●​ Ruling: The petition is DISMISSED
 MODULE 4: WORKING CONDITIONS

●​ Application: At the time that the parties entered into the such, the 16 employees filed complaints for underpayment
Agreement, neither could anticipate the date of the of wages and other money claims. The LA granted a
decision of the SC, and was done to address the urgent decision in favor of the employees and awarded
petition filed by the mining company to close operations substantially all of the money claims, which was reversed
and lay off employees due to heavy losses. As such, the by the NLRC. Upon appeal, the CA reversed the NLRC’s
intention could not have been to make Section 3 a merely Decision. Aggrieved, the employer filed the current petition.
provisional arrangement, especially since the parties ●​ Issues: WON the CA erred in:
agreed to give the agreement retroactive effect from August ○​ Reversing the NLRC’s decision on the ground that the
1952-December 1954. As such, the compromise was that NLRC’s findings were not supported by substantial
the company would comply with the MWL but that facilities evidence despite ample evidence to the contrary
would be charged as part of the wage without reducing the ○​ Upholding the joint decision of the LA which ruled that the
Php 2.00 cash portion of their wages which they were employees were illegally dismissed from their
receiving prior to their agreement. As such, the agreement employment, despite the fact that the employees were
is enforceable and valid. dismissed due to causes beyond the employer’s control
●​ Doctrine: An agreement to deduct certain facilities from the ○​ Upholding the award of monetary benefits in favor of the
employee’s wage is not a waiver of the minimum wage fixed employees, including the award of damages to 6 of the
by law, since the law permits the deduction of such employees
facilities as long as their value is fair and reasonable. ○​ Holding that Pacita Po is the owner of the business
●​ Application: Without proof that the Agreement’s valuations establishment, and disregarding the certificate of
were not fair and reasonable, the agreement’s provisions registration of the business establishment issued by the
are upheld by the court. local government
■​ Mayon Hotel v. Adana, G.R. No. 157634, May 16, 2005 ●​ Ruling: The petition is DENIED. The CA’s decision is
●​ Facts: Mayon Hotel & Restaurant is a single proprietor AFFIRMED WITH MODIFICATIONS
business registered in Pacita Po’s name, whose mother, ●​ Application: Josefa Po Lam is the actual owner of the
Josefa Po Lam, manages the establishment. The business establishment considering that she exercises all the acts
employed about 16 employees. Due to the expiration and and manifestations of ownership of the hotel and
non-renewal of the lease contract for the business’s rented restaurant. Except for documents wherein Pacita Po
space, the hotel operations were suspended in March appears as the owner of the business, nothing shows any
1997. The restaurant continued its operations at its new circumstance that Pacita is the owner of the business.
location in Legazpi City while waiting for the construction of Pacita’s neglect to clearly establish ownership negates the
a new Mayon Hotel & restaurant establishment. Only 9 out assertion that she is the owner.
of the 16 employees continued to work at the new site. As
 MODULE 4: WORKING CONDITIONS

●​ Doctrine: Article 286 states that there is termination of ●​ Application: The failure of the employer to observe
employment when an otherwise bona fide suspension of procedural requirements taints their arguments of
work exceeds 6 months. temporary suspension in bad faith. Had they actually
●​ Application: Since the suspension of the hotel and suffered substantial business losses, they should have
restaurant’s operations and transferred its restaurant complied with the requirements of written notice for
operations, the employees had not been recalled nor temporary suspension. As such, certain employees are
permitted to work even after the construction of the new granted separation pay, retirement pay and damages.
premises and reopening of the hotel operations. Records ●​ Doctrine: The employer has the burden of proof to prove
show that the employees were not recalled to work even payment of monetary claims.
after a year following the construction of the new location, ●​ Application: The employer failed to prove payment of
which clearly demonstrates dismissal—the permanent claims. This is evidenced by the employer’s failure to
severance or complete separation of the worker from the submit documents and files (payrolls, records, etc.) that
service on the initiative of the employer regardless of the showed payment of labor standard benefits due to the
reasons therefore. There is further evidence that employees despite multiple orders from the LA. This
demonstrates that the lay-off was actually permanent presumes that their presentation would be prejudicial to
despite claims that the same was merely temporary: the employer’s case.
○​ The employees filed for illegal dismissal immediately after ●​ Doctrine: Deduction of facilities cannot be automatically
the closure of hotel operations, notwithstanding the done without compliance with certain legal requirements:
alleged temporary nature of the closure ○​ Proof that such facilities are customarily furnished by the
○​ The employer’s petition paper stated that EMREL was trade;
merely suspended but made no mention of any intent to ○​ The provision of deductible facilities is voluntarily
recall these employees to work upon completion of the accepted in writing by the employee; and
new premises ○​ The facilities are charged at fair and reasonable value.
○​ The employer’s held some of the employees responsible ●​ Application: The records are clear that the petitioners failed
for mismanagement and abuse of trust and confidence, to comply with these requirements. There was no proof of
which is inconsistent with the desire to recall them to the employees’ written authorization, as such the snacks
work and food they received cannot be deducted from the
●​ Doctrine: Serious business losses that justify failure to computation of payment of the respondents’ wages.
reinstate employees does not excuse the employer from ●​ Doctrine: Food or snacks or other convenience provided by
complying with the clearance or report required under the employers are deemed as supplements if they are
Article 283 of the Labor Code before terminating the granted for the employer’s convenience. The distinction is
employment of its workers. not so much on its kind but its purpose.
 MODULE 4: WORKING CONDITIONS

●​ Application: Considering, therefore, that hotel workers are the ground that the intermittent workers were not entitled to
required to work different shifts and are expected to be the said benefits under Sections 1&3 of Article VIII of the
available at various odd hours, their ready availability is a 1989 CBA. Upon voluntary arbitration, an award was
necessary matter in the operations of a small hotel, such delivered in favor of the Union, who argued that the
as petitioners' business. The deduction of the cost of discontinuance is a deviation from the true intention of the
meals from respondents' wages, therefore, should be CBA and that it would violate the principle in labor laws that
removed. benefits already extended shall not be taken away and that it
g.​ Principle of Non-Diminution of Benefits would result in discrimination.
i.​ Art. 100 of the Labor Code ■​ Issue: WON it is clear from Section 1 of the CBA that only
■​ Nothing in this Book shall be construed to eliminate or in any regular non-intermittent workers are entitled to the benefit of
way diminish supplements, or other employee benefits being conversion to cash of the unenjoyed portion of sick leave
enjoyed at the time of promulgation of this Code. ●​ WON it was well within the company’s rights to rectify the
ii.​ Davao Integrated Port Stevedoring Services v Abarquez, error it had committed and stop the payment of the said
[Link]. 102132. March 19, 1993 sick leave with benefits considering the misinterpretation of
■​ Facts: Davao Integrated Port Stevedoring Services and the the previous assistant manager of the provisions of the
Association of Trade Unions (ATU-TUCP), the exclusive CBA
bargaining agent of the rank and file workers of the employer, ■​ Ruling: The petition is DISMISSED.
entered into a CBA, wherein Sections 1 & 3 of Article VIII ■​ Doctrine: A CBA is a contract executed upon request of either
thereof provided sick leave with pay benefits for each year to the employer or the exclusive bargaining representative
its employees who have rendered at least 1 year of service incorporating the agreement reached after negotiations with
with the company. Section 1 provides 15 days sick leave with respect to terms and conditions of employment. While the
pay to the regular non-intermittent employees whereas CBA constitutes the law between the parties, it is not an
Section 3 provides for vacation and sick leaves per year of ordinary contract but impressed with public interest, thus it
service with pay for intermittent field workers depending on must be construed liberally rather than narrowly and
the hours rendered including overtime. Upon its renewal in technically.
1989, the provisions of sick leave were reproduced but was ■​ Application: It is erroneous for Section 1 to be isolated from
expanded to include the present Regular Extra Labor Pool. Section 3 in order to justify the discontinuance of the
Such benefits were enjoyed by the employees for 3 years and privilege of commutation of the unenjoyed portion of the sick
9 months, with the unenjoyed portion of the sick leave with leave benefit to regular intermittent employees. Such
pay benefits of the intermittent workers being converted to discontinuance is not only arbitrary but discriminatory in
cash. However, this practice was discontinued under the nature given that the provisions were upheld for 3 years and
company’s new assistant manager, Mr. Benjamin Marzo on 9 months.
 MODULE 4: WORKING CONDITIONS

■​ Doctrine: Sick leave benefits, like other economic benefits company practice or policy which cannot be peremptorily
stipulated in the CBA such as maternity leave and vacation withdrawn.
leave benefits, among others, are by their nature intended to iii.​ Nippon Paint Philippines, Inc. v. Nippon Paint Philippines
be replacements for regular income which otherwise would Employees Association, G.R. No. 229396, June 30,
not be earned because an employee is not working during 2021
the period of said leaves. They are non-contributory in nature, ■​ Facts: In 2007, Nippon Paint Philippines Employees
in the sense that the employees contribute nothing to the Association entered into a CBA with Nippon Paint Philippines,
operation of the benefits. By their nature, upon agreement of Inc. effective from January 2007-December 2011. Section 1,
the parties, they are intended to alleviate the economic Article 13 of the CBA provided that the employer agreed to
condition of the workers. pay all its employees their holiday remuneration pay every
■​ Application: The CBA recognizes 2 sections on sick leave with year on the regular holidays listed. It also granted all union
pay based on distinct classes of workers. Both are entitled to members premium pay in the amount equivalent to 200% of
the benefits provided that they comply with the requirements: their regular daily rate during a holiday if no work was
(1) the employee- applicant must be regular or must have rendered and 300% if they were required to work. In 2009,
rendered at least one year of service with the company; and RA 9849 declared the celebration of Eidul Adha as a regular
(2) the application must be accompanied by a certification holiday, and for which the employees received an additional
from a company-designated physician. After a careful holiday pay. Upon the execution of a new CBA in 2012, Eidul
examination, Section 1 does not bar the regular intermittent Adha was not mentioned as 1 of the regular holidays, as
workers from the privilege of commutation, if qualified. The such, the employees did not receive holiday pay for the said
distinctions between the length of sick leaves is a fair holiday. The employees argued that they were entitled to
distinction based on the regularity of work days. Based on 200% for unworked regular holidays and 300% for worked
the CBA, it was the intention of the negotiating parties to holidays as consistent with company practice, claiming that
extend the commutation privilege to the intermittent workers, the pay for Eidul Adha has ripened into one. The employer
otherwise, the privilege would not have been extended claimed that the employees were no longer entitled to the
explicitly in the CBA. same since the payments made in 2010 and 2011 were only
■​ Doctrine: Non-diminution of benefits applies when a practice glitches in the payroll system and that the same was
has ripened into a deliberate company practice or policy. corrected in 2012. The VA ruled that there was no
■​ Application: The company had already granted and paid the established company practice of holiday pay for Eidul Adha
cash equivalent of the unenjoyed portion of the sick leave due to its non-inclusion in the 2007 and 2012 CBA. The CA
benefits of some intermittent workers within the last 3 years set aside the VA’s Decision and considered the pay as a
and 9 months of the CBA’s lifetime. Given that the company company practice.
recognized the said privilege and complied with the same for ■​ Issue: WON the CA erred in:
a lengthy period of time, it is deemed to have ripened into
 MODULE 4: WORKING CONDITIONS

●​ Ruling that the union and its members are entitled to an iv.​ Vergara, Jr. vs. Coca-Cola Bottlers Philippines, Inc., G. R.
additional pay in 2012 and 2013 for the Eidul Adha holiday No. 176985, April 1, 2013
●​ Not ruling that the company is entitled to refund for the ■​ Facts: Ricardo Vergara, Jr. was an employee of Coca-Cola
payments made in 2010 and 2011 for the Eidul Adha Bottlers Philippines, Inc. from May 1968 to his retirement in
holiday that were only due to system error January 2002 as a District Sales Supervisor (DDS) for Las
■​ Ruling: The petition is DENIED Piñas City, Metro Manila. His retirement plan is based on his
■​ Doctrine: Holiday pay is a legislated benefit enacted as part basic monthly salary, his monthly average performance
of the constitutional imperative that the State shall afford incentive (total performance incentive earned during the year
protection to labor. It is not just meant to prevent diminution immediately preceding divided by 12 months) and the
of the monthly income of the workers on account of work number of years in service. Vergara, Jr. filed a complaint
interruptions, but is also intended to enable the worker to before the NLRC for the payment of his full retirement
participate in national celebrations held during days with benefits, merit increase, commission/incentives, length of
great historical and cultural significance. While the worker is service, actual, moral and exemplary damages, and
forced to take a rest, he/she still earns what he/she should attorney’s fees, claiming his entitled to an additional Php
earn, that is, his/her holiday pay. Such is subject to the 474, 600.00 as SMI and Php 496, 016.87 which the
principle of non-diminution of benefits. There is diminution of employer deducted illegally as representative of the unpaid
benefits "when the following requisites are present: (1) the accounts of 2 dealers within his jurisdiction. The LA rendered
grant or benefit is founded on a policy or has ripened into a a Decision in favor of the employee, which was modified by
practice over a long period of time; (2) the practice is the NLRC, who deleted the payment of SMI. Pending appeal
consistent and deliberate; (3) the practice is not due to error with the CA, the parties executed a Compromise Agreement
in the construction or application of a doubtful or difficult wherein the employee acknowledged full payment by the
question of law; and (4) the diminution or discontinuance is employer of the Php 496, 016.67 amount illegally deducted.
done unilaterally by the employer. ■​ Issue: WON the SMI should be included in the computation of
■​ Application: The employer has been granting its employees the employee’s retirement benefits on the ground of
holiday pay for a considerable amount of time. In this case, consistent company practice based on the employee’s
the employer’s grant of additional holiday pay for Eidul Adha assertion that many DSS received the average SMI in their
to its employees of 2 years, which has ripened into a retirement package despite failure to reach sales and
company practice, and thus can no longer be withdrawn collection targets
without violating the non-diminution of benefits. The Court is ■​ Ruling: The petition is DENIED
not convinced that the granting of pay was due to a system ■​ Doctrine: Non-diminution of benefits
error since their finances are carefully audited every year ■​ Application: There is no proof that the grant of SMI to all
which should have made the error evident. Thus, the retired DDS regardless of whether or not they qualify to the
employees are entitled to pay.
 MODULE 4: WORKING CONDITIONS

same had ripened into company practice. The affidavits of the ●​ Government and any of its political subdivisions including
employee which contained statements from 2 former DSS GOCCs, except those corporations operating essentially as
(Hidalgo and Velasquez) who received SMI, were countered by private subsidiaries of the Government
the employer’s evidence which proved that other retirees did ●​ Employers already paying 13th month pay or more in a
not receive SMI as part of their retirement pay due to the calendar year of its equivalent at the time of this issuance
same, and that one of the employee’s witnesses (Velasquez) ●​ Employers of household helpers and person in the personal
received SMI due to his being qualified for the same. In fact, service of another in relation to such workers; and
even Vergara, Jr. himself failed to meet the qualifiers of the ●​ Employers of those who are paid on purely commission,
SMI, as such, the company’s act of including SMI in the boundary, or task basis, and those who are paid a fixed
retirement package for Velasquez was an isolated act that amount for performing a specific work, irrespective of the
could hardly be classified as a company practice. time consumed in the performance thereof, except where
h.​ 13th Month Pay the workers are paid on piece-rate basis in which case the
i.​ 1/12 of the total basic salary earned by an employee within a employer shall be covered by this issuance insofar as such
calendar year workers are concerned.
ii.​ An additional income based on wage but is not part of the iv.​ Presidential Memorandum Order No. 28, Aug. 13, 1986
wage ■​ Amends Section 1 of PD 851, to the extent that all
iii.​ PD 851, Dec. 16, 1976 employees are hereby required to pay all their rank-and-file
■​ All employers shall pay 13th month pay to their employees employees a 13th month pay
who receive a basic salary of not more than Php 1,000 a ●​ Rank-and-file employees: Those who are not vested with
month powers of prerogatives to lay down and execute
■​ Shall be paid not later than December 24 of every year management policies and/or to hire, transfer, lay-off, recall
■​ Covers all employees except: discharge, assign or discipline employees, or to effectively
●​ Distressed employers recommend such managerial actions
○​ (1) those which are currently incurring substantial losses; v.​ Revised Guidelines on the Implementation of the 13th Month
○​ (2) in the case of non-profit institutions and organizations, Pay
where their income, whether from donations, ■​ Removes distressed employers as those who are exempt
contributions, grants and other earnings from any source, from paying 13th month pay to their rank-and-file employees
has consistently declined by more than forty (40%) ■​ Minimum Amount: Not less than 1/12 of the total basic
percent of their normal income for the last two (2) years, salary
subject to the provision of Section 7 of this issuance ●​ Basic Salary: Remunerations or earning paid by this
employer for services rendered but does not include
 MODULE 4: WORKING CONDITIONS

allowances and monetary benefits which are not considered ●​ Entitled to the benefit in proportion to the length of time he
or integrated as part of the regular or basic salary worked during the year, reckoned from the time he started
○​ These salary-related benefits should be included as part working during the calendar year up to the time of his
of the basic salary in the computation of the 13th month resignation or termination from the service
pay if by individual or collective agreement, company ●​ May be demanded upon cessation of EMREL
practice or policy, the same are treated as part of the D. LEAVES
basic salary of the employees. a.​ Service Incentive Leave
○​ GR: Includes cost of living allowances integrated into the i.​ Leave credits extended to covered employees who may want
basic salary of a covered employee pursuant to EO 178 & to use them whenever they take a leave from work, so that
all remunerations paid by this employer for services they remain paid during such absence from work
rendered ii.​ 5 credits given to an employee who has rendered at least 12
■​ Time of Payment: Not later than December 24 months of service
●​ An employer, however, may give to his employees ½ of the ■​ GR: Not less than 12 months, whether continuous or broken
required pay before the opening of the regular school year from the date the employee started working, including
and the other half on or before the 24th of December of authorized absences and paid regular holidays
every year ●​ XPN: Service for less than 12 months is counted when
●​ The frequency of payment of this monetary benefit may be ○​ The working days of the establishment, as a matter of
the subject of agreement between the employer and the practice or policy, is less than 12 months; or
recognized/collective bargaining agent of the employee ○​ The employment contract provides working days that are
■​ 13th Month Pay for Certain Types of Employees less than 12 months
●​ Paid by Results: Based on total earnings during the iii.​ Leave credits may be used for whatever reason
calendar year iv.​ The employer is required to pay the cash equivalent of the
●​ With Multiple Employers: Government employees working unused leave credits
part time in a private enterprise, as well as employees v.​ Replenishes yearly
working in 2 or more private firms, are entitled regardless vi.​ Art. 95, Labor Code
of their total earnings from each or all their employers ■​ (a) Every employee who has rendered at least one year of
●​ Private School Teachers: Entitled to pay regardless of the service shall be entitled to a yearly service incentive leave of
number of months they teach or are paid within the year, if five days with pay.
they have rendered service for at least 1 month within a ■​ (b) This provision shall not apply to those who are already
year enjoying the benefit herein provided, those enjoying vacation
■​ Resigned and Separated Employees leave with pay of at least five days and those employed in
establishments regularly employing less than ten employees
 MODULE 4: WORKING CONDITIONS

or in establishments exempted from granting this benefit by ■​ Sec. 3. Definition of certain terms. — The term “at least
the Secretary of Labor and Employment after considering the one-year service” shall mean service for not less than 12
viability or financial condition of such establishment. months, whether continuous or broken reckoned from the
■​ (c) The grant of benefit in excess of that provided herein shall date the employee started working, including authorized
not be made a subject of arbitration or any court or absences and paid regular holidays unless the working days
administrative action. in the establishment as a matter of practice or policy, or that
vii.​ Secs. 1-6, Rule V, Book III, IRR of LC provided in the employment contract is less than 12 months,
■​ Sec. 1. Coverage. — This rule shall apply to all employees in which case said period shall be considered as one year.
except: ■​ Sec. 4. Accrual of benefit. — Entitlement to the benefit
(a) Those of the government and any of its political provided in this Rule shall start December 16, 1975, the
subdivisions, including government-owned and controlled date the amendatory provision of the Code took effect.
corporations; ■​ Sec. 5. Treatment of benefit. — The service incentive leave
(b) Domestic helpers and persons in the personal service shall be commutable to its money equivalent if not used or
of another; exhausted at the end of the year.
(c) Managerial employees as defined in Book Three of this ■​ Sec. 6. Relation to agreements. — Nothing in the Rule shall
Code; justify an employer from withdrawing or reducing any benefits,
(d) Field personnel and other employees whose supplements or payments as provided in existing individual or
performance is unsupervised by the employer including collective agreements or employer’s practices or policies.
those who are engaged on task or contract basis, purely b.​ Maternity Leave
commission basis, or those who are paid a fixed amount i.​ RA 11210 (105-Day Expanded Maternity Leave)
for performing work irrespective of the time consumed in ■​ Grants maternity leave of 105 days with full pay, with an
the performance thereof; option to extend for an additional 30 days without pay
(e) Those who are already enjoying the benefit herein ■​ Coverage: Every female worker in government and the private
provided; sector, including those in the informal economy, regardless of
(f) Those enjoying vacation leave with pay of at least five civil status or the legitimacy of her child, is entitled to
days; and maternity leave benefits. This is applicable to pregnancy and
(g) Those employed in establishments regularly employing miscarriage, or emergency termination of pregnancy,
less than ten employees. regardless of frequency.
■​ Sec. 2. Right to service incentive leave. — Every employee ■​ Requisites for Female Workers in Private Sectors:
who has rendered at least one year of service shall be ●​ Contribution: Female worker must have paid at least 3
entitled to a yearly service incentive leave of five days with monthly contributions in the 12-month period immediately
pay. preceding the semester of her childbirth, miscarriage, or
emergency termination of pregnancy. (SSS shall only
 MODULE 4: WORKING CONDITIONS

consider those contributions paid prior to the semester of ●​ May, at her option, allocate up to 7 days of said benefits to
contingency) the child’s father
●​ Notice: Female worker shall have notified her employer of ●​ This benefit is over and above the paternity benefits
her pregnancy and the probable date of her childbirth, provided under RA 8187
which notice shall be transmitted to the SSS in accordance ●​ In case of death, absence, or incapacity of the child’s
with the rules and regulations it may provide father, the female worker may allocate to an alternative
■​ Possible After Termination of Employment caregiver who may be:
●​ GR: Granted if it occurs not more than 15 calendar days ○​ Relative within 4th degree of consanguinity
after termination ○​ Current partner of the female worker sharing the same
●​ XPN: When employment was terminated w/o just cause, household
the employer must pay the full amount equivalent to her ●​ XPN: Not applicable in cases of miscarriage or emergency
salary for 105 days for childbirth and 60 days for termination of pregnancy
miscarriage and emergency termination of pregnancy based ■​ Death or Permanent Incapacity
on her full pay, in addition to the other applicable daily cash ●​ Balance of benefits shall accrue to the child’s father or to a
maternity benefits that she should have received had her qualified alternate caregiver subject to the following
employment not been illegally terminated. conditions:
■​ Benefit Received: Daily maternity benefit equivalent to 100% ○​ That the benefits have not yet been commuted to cash,
of her average daily salary credit for 105 days (live childbirth) if applicable; and
or 60 days (miscarriage or emergency termination of ○​ That a CTC of the death or medical certificate or abstract
pregnancy) is provided to the employers of both the female worker
●​ If employee qualifies as a solo parent, they shall be paid an and the child’s father or alternate caregiver
additional maternity benefit of 15 days c.​ Paternity Leave
■​ Extended Maternity Leave Option i.​ RA 8187 (Paternity Leave Act)
●​ In cases of live childbirth, an additional leave of 30 days, ■​ Leave of 7 calendar days with full pay for every married male
without pay, can be availed of, at the option of the female employee in the private and public sectors
worker, provided that the employer shall be given due ■​ Coverage and Purpose
notice in writing at least 45 days before the end of the ●​ Granted to all married male employees in the private and
female worker’s maternity leave public sectors, regardless of their employment status
○​ XPN: No prior notice shall be necessary in the event of a ●​ Shall apply to the 1st 4 deliveries of the employee’s lawful
medical emergency, but subsequent notice shall be wife with whom he is cohabiting (obligation of the husband
given to the employer. and wife to live together)
■​ Allocation of Maternity Leave Credits ■​ Benefit and Usage
 MODULE 4: WORKING CONDITIONS

●​ 7 calendar days with full pay, consisting of basic salary and ●​ (7) Parent left solo or alone with the responsibility of
mandatory allowances fixed by the Regional Wage Board, if parenthood due to abandonment of spouse for at least one
any, provided that his pay shall not be less than the (1) year;
mandated minimum wage ●​ (8) Unmarried mother/father who has preferred to keep and
●​ Usage shall be after the delivery, without prejudice to an rear her/his child/children instead of having others care for
employer’s policy of allowing the employee to avail of the them or give them up to a welfare institution;
benefit before or during the delivery ●​ (9) Any other person who solely provides parental care and
■​ Prior application for paternity leave shall not be required in support to a child or children;
case of miscarriage ●​ (10) Any family member who assumes the responsibility of
d.​ Paternal Leave for Solo Parents head of family as a result of the death, abandonment,
i.​ RA 8972 (Solo Parents Welfare Act) disappearance or prolonged absence of the parents or solo
■​ Coverage parent.
●​ (1) A woman who gives birth as a result of rape and other ●​ A change in the status or circumstance of the parent
crimes against chastity even without a final conviction of claiming benefits under this Act, such that he/she is no
the offender: Provided, That the mother keeps and raises longer left alone with the responsibility of parenthood, shall
the child; terminate his/her eligibility for these benefits.
●​ (2) Parent left solo or alone with the responsibility of ■​ A solo parent employee shall be entitled to the parental leave
parenthood due to death of spouse; under the following conditions:
●​ (3) Parent left solo or alone with the responsibility of ●​ a. He/she has rendered at least one (1) year of service,
parenthood while the spouse is detained or is serving whether continuous or broken;
sentence for a criminal conviction for at least one (1) year; ●​ b. He/she has notified his/her employer that he/she will
●​ (4) Parent left solo or alone with the responsibility of avail himself/herself of it, within a reasonable period of
parenthood due to physical and/or mental incapacity of time; and
spouse as certified by a public medical practitioner; ●​ c. He/she has presented to his/her employer a Solo Parent
●​ (5) Parent left solo or alone with the responsibility of Identification Card, which may be obtained from the DSWD
parenthood due to legal separation or de facto separation office of the city or municipality where he/she reside
from spouse for at least one (1) year, as long as he/she is ■​ Is in addition to leave privileges under existing laws with full
entrusted with the custody of the children; pay, consisting of basic salary and mandatory allowances
●​ (6) Parent left solo or alone with the responsibility of ■​ The employer shall provide for a flexible working schedule for
parenthood due to declaration of nullity or annulment of solo parents, provided that the same shall not affect
marriage as decreed by a court or by a church as long as individual and company productivity
he/she is entrusted with the custody of the children;
 MODULE 4: WORKING CONDITIONS

●​ Employer may request exemption from the above existing laws and any collective bargaining agreement and
requirements from DOLE on certain meritorious grounds other agreements: Provided, however, That an employee’s
e.​ Leave Benefits for Women Workers under Special Laws retirement benefits under any collective bargaining and other
i.​ Sec. 18, RA 9710 (Magna Carta of Women) agreements shall not be less than those provided herein.
■​ A woman employee having rendered continuous aggregate
employment service of at least six (6) months for the last “In the absence of a retirement plan or agreement providing
twelve (12) months shall be entitled to a special leave benefit for retirement benefits of employees in the establishment, an
of two (2) months with full pay based on her gross monthly employee upon reaching the age of sixty (60) years or more,
compensation following surgery caused by gynecological but not beyond sixty-five (65) years which is hereby declared
disorders. the compulsory retirement age, who has served at least five
ii.​ Sec. 43, RA 9262 (Anti-VAWC Act) (5) years in the said establishment, may retire and shall be
■​ Victims under this Act shall be entitled to take a paid leave of entitled to retirement pay equivalent to at least one-half (1/2)
absence up to ten (10) days in addition to other paid leaves month salary for every year of service, a fraction of at least six
under the Labor Code and Civil Service Rules and (6) months being considered as one whole year.
Regulations, extendible when the necessity arises as
specified in the protection order. “Unless the parties provide for broader inclusions, the term
■​ Any employer who shall prejudice the right of the person one-half (1/2) month salary shall mean fifteen (15) days plus
under this section shall be penalized in accordance with the one-twelfth (1/12) of the 13th month pay and the cash
provisions of the Labor Code and Civil Service Rules and equivalent of not more than five (5) days of service incentive
Regulations. Likewise, an employer who shall prejudice any leaves.
person for assisting a co-employee who is a victim under this
Act shall likewise be liable for discrimination. Retail, service and agricultural establishments or operations
E. RETIREMENT employing not more than (10) employees or workers are
a.​ Art. 302 [287] of the Labor Code exempted from the coverage of this provision.
i.​ Mandatory or voluntary withdrawal from employment due to
Violation of this provision is hereby declared unlawful and
reaching a certain age
subject to the penal provisions provided under Article 288 of
ii.​ Any employee may be retired upon reaching the retirement age
this Code.
established in the collective bargaining agreement or other
■​ This article is subordinate to a binding contract such as a
applicable employment contract.
CBA or an individual contract. If the contract provides for a
retirement package/benefits that is greater than what is
“In case of retirement, the employee shall be entitled to
prescribed by law, then the benefit should be computed
receive such retirement benefits as he may have earned under
according to the formula prescribed in the contract.
 MODULE 4: WORKING CONDITIONS

■​ If the contract stipulates a retirement package that is lesser employee is entitled to receive, the employer shall pay the
than what is prescribed by law, the employer must pay the deficiency upon the retirement of the employee.
difference.
■​ Retirement age of 60 is optional, but if the contract (c) This Section shall apply where the employee retires at the
stipulates compulsory retirement at 60, such is upheld if the age of sixty (60) years or older.
agreement to this effect is part of the CBA freely entered into iii.​ Retirement Pay Amount
and subsequently duly ratified by the employees. ■​ 15 days salary based on the latest salary rate
■​ A CBA may validly stipulate that the employer has the option ■​ Cash equivalent of 5 days of service incentive leave
to retire an employee who has reached a specific age or a ■​ 1/12 of the 13th month pay (1/12 x 365/12= .083 x
specified retirement criterion. When such an option is 30.41= 2.5)
exercised, there is no need to consult the employee. ●​ TOTAL: 22.5 days’ pay multiplied by the retiree’s total years
b.​ Secs. 13-14, Book VI, IRR of Labor Code of employment, a fraction of 6 months being counted as 1
i.​ Sec. 13. Retirement. — In the absence of any collective year
bargaining agreement or other applicable agreement iv.​ Retroactivity
concerning terms and conditions of employment which ■​ RA 7641 applies retroactively to include services rendered
provides for retirement at an older age, an employee may be prior to its effectivity by employees in the employ of covered
retired upon reaching the age of sixty (60) years. employers at the time the law took effect and those who are
ii.​ Sec. 14. Retirement benefits. — (a) An employee who is eligible to benefits under that statutes
retired pursuant to a bona-fide retirement plan or in v.​ Entitlement of Part-Time Workers
accordance with the applicable individual or collective ■​ Covered by the retirement law under Art. 302 of the Labor
agreement or established employer policy shall be entitled to Code
all the retirement benefits provided therein or to termination ■​ The employee must have reached 60 years of age (optional
pay equivalent to at least one-half month salary for every year retirement) or 65 years (compulsory retirement), and has
of service, whichever is higher, a fraction of at least six (6) served at least 5 years in the employer establishment
months being considered as one whole year. F. SPECIAL GROUP
Employment of Women
(b) Where both the employer and the employee contribute to
a.​ Prohibitions (Article 137, Labor Code)
the retirement plan, agreement or policy, the employer’s total
i.​ It shall be unlawful for any employer:
contribution thereto shall not be less than the total
■​ (1) To deny any woman employee the benefits provided for in
termination pay to which the employee would have been
this Chapter or to discharge any woman employed by him for
entitled had there been no such retirement fund. In case the
the purpose of preventing her from enjoying any of the
employer’s contribution is less than the termination pay the
benefits provided under this Code.
 MODULE 4: WORKING CONDITIONS

(ii) A woman worker shall not lose the benefits

(2) To discharge such woman on account of her pregnancy, regarding her status, seniority, and access to
or while on leave or in confinement due to her pregnancy; promotion which may attach to her regular night work
position.
(3) To discharge or refuse the admission of such woman
upon returning to her work for fear that she may again be Pregnant women and nursing mothers may be allowed
pregnant. to work at night only if a competent physician, other
b.​ Night Work Prohibitions than the company physician, shall certify their fitness
i.​ Article 158 of the Labor Code to render night work, and specify, in the case of
■​ Measures shall be taken to ensure that an alternative to pregnant employees, the period of the pregnancy that
night work is available to women workers who would they can safely work.
otherwise be called upon to perform such work:
"(a) Before and after childbirth, for a period of at least The measures referred to in this article may include
sixteen (16) weeks, which shall be divided between the transfer to day work where this is possible, the
time before and after childbirth; provision of social security benefits or an extension of
maternity leave.
"(b) For additional periods, in respect of winch a medical
certificate IS produced stating that said additional periods The provisions of this article shall not leave the effect
are necessary for the health of the mother or child: of reducing the protection and benefits connected with
(1) During pregnancy; maternity leave under existing laws."
c.​ Discrimination
(2) During a specified time beyond the period, after i.​ It shall be unlawful for any employer to discriminate against
childbirth is fixed pursuant to subparagraph (a) above, the any woman employee with respect to terms and conditions of
length of which shall be determined by the DOLE after employment solely on account of her sex
consulting the labor organizations and employers. ii.​ The following are examples of acts of discrimination:
■​ Payment of a lesser compensation to a female employee
During the periods referred to in this article: against a male employee for work of equal value
(i) A woman worker shall not be dismissed or given ■​ Favoring a male employee over a female employee with
notice of dismissal, except for just or authorized respect to promotion, training opportunities, study and
causes provided for in this Code that are not scholarship grants solely on account of their sexes
connected with pregnancy, childbirth and childcare
responsibilities.
 MODULE 4: WORKING CONDITIONS

d.​ Stipulations against marriage ■​ Issues: WON

i.​ PT&T v. NLRC, GR No. 118978, May 23, 1997 ●​ De Guzman’s concealment of her marriage was a just
■​ Facts: Grace de Guzman was initially hired by Philippine cause for valid dismissal
Telegraph and Telephone Company as a reliever, specifically ●​ PT&T’s marriage policy is consistent with Article 136 of the
as a Supernumerary Project Worker for a fixed period from Labor Code
November 1990-April 1991, after which her employment was ■​ Ruling: The petition is DISMISSED for lack of merit
immediately terminated upon expiration. Her reliever services ■​ Doctrine: Article 136 of the Labor Code provides that it is
were engaged by the employer 2x more after between unlawful for an employer to prejudice a woman employee by
June-August of 1991. In September 1991, de Guzman was reason of marriage as a condition of employment or
asked to join the company as a probationary employee with a continuation thereof.
probationary period of 150 days. Her job application ■​ Application: Although an employer has the discretion to
indicated that she was single although she had married a few exercise discretion on the hiring of employees, such is not
months prior, and that she had made such representation valid in cases of unlawful discrimination. The petitioner’s
during her previous 2 engagements with the company. When policy of not accepting or considering any woman who
asked about the discrepancy in a memorandum from the contracts marriage is discriminatory and runs afoul of labor
company, which reminded her of their policy of not accepting laws and the Constitution. Verily, de Guzman’s act of
married women for employment, de Guzman explained that concealing her marriage status cannot be characterized as
she was not aware of the policy and that she had not willful or bad faith as it was preempted by the company’s
deliberately concealed her civil status. After being dismissed policy and in fear of losing a permanent job in a stable
from the company, she filed a complaint for illegal dismissal company. While loss of confidence is a valid cause for
and non-payment of COLA. At the preliminary conference termination of employment, it should not be simulated.
before the Regional Arbitration branch of the NLRC, she Although the company insists that her misappropriation of
volunteered that she failed to remit the amount of Php 2, funds was an additional ground for dismissal, such assertion
380.75 of her collections. The LA ruled in favor of the is self-serving since it was clear that she was dismissed on
employee, who had already gained the status of a regular grounds of her marriage status.
employee and was entitled to reinstatement and payment of ■​ Doctrine: Regular employment
back wages and COLA. The NLRC affirmed the LA’s decision ■​ Application: De Guzman had gained regular status at the time
but added that de Guzman deserved to be suspended for 3 of her dismissal since her earlier stints as a reliever were
months in view of the dishonest nature of her act of failing to those of a regular employee with fixed periods, as she
remit some of her collections. rendered services that were essential to the company’s
business. Furthermore, the fact that she was dismissed just
as she was about to complete her probationary period served
 MODULE 4: WORKING CONDITIONS

as evidence that it was done to prevent her from earning Tecson’s transfer. The CA reaffirmed such findings upon
security of tenure. Nevertheless, the 3-month suspension is appeal.
upheld due to her dishonesty. ■​ Issue: WON the CA erred in
ii.​ Duncan Association of Detailman-PGTWO v. Glaxo ●​ Affirming the NCMB’s finding that Glaxo’s relationship policy
Welcome Philippines, Inc., GR No. 162994 is valid
■​ Facts: Pedro Tecson was hired by respondent as a medical ●​ Not finding that Tecson was constructively dismissed when
representative and signed a contract of employment that he was transferred to a new sales territory, and deprived of
stipulates that he agrees to study and abide by the company the opportunity to attend products seminars and training
rules, which includes disclosing any existing or future sessions
relationship by consanguinity or affinity with co-employees or ■​ Ruling: The petition is DENIED.
employees of competing drug companies and to resign from ■​ Doctrine: It is a legitimate business practice to guard
the company should management consider the same as a business confidentiality and protect a competitive position by
conflict of interest. Tecson was initially assigned in the disqualifying applicants or employees who are married to a
Camarines Sur-Camarines Norte sales area. Subsequently, competitor. This does not violate the equal protection clause
he entered into a romantic relationship and eventually since it is not aimed at restricting a personal prerogative of
married Bettsy, an Albay Branch Coordinator of Astra the individual to get married and was applied equally to men
Pharmaceuticals (competitor of Glaxo). Even prior to the and women alike. Such personal prerogative does not detract
marriage, Glaxo’s management had already informed Tecson the employer from using management prerogative to protect
of the potential conflict of interest with his relationship, for its interests and ensure business success.
which, Tecson continued to ask for time to resolve such ■​ Application: Glaxo has the right to guard its trade secrets and
issues considering the company policy, explaining that Bettsy other confidential information, especially considering the
would avail of Astra’s redundancy package due to the highly competitive nature of the pharmaceutical industry. The
company’s merger with Zeneca, another drug company. prohibition against relationships with employees of
Eventually, Glaxo transferred Tecson to the competitor companies is reasonable under the
Butuan-Surigao-Agusan del Sur area, but Tecson ignored such circumstances that such relationships might compromise the
directive and continued working within the Camarines interests of the company. Such policy does not restrict
Sur-Camarines Norte area. Due to the failure of company employees from cultivating relationships and marrying people
grievance mechanisms, they submitted the matter for of their own choosing. Furthermore, Tecson signed a contract
voluntary arbitration. Following this, the National Conciliation which required him to study and follow the company’s policies
and Mediation Board rendered its Decision in 2000 declaring upon joining Glaxo even prior to his relationship. Considering
Glaxo’s policy on relationship between its employees and that he voluntarily entered into such a contract with Glaxo,
persons employed with competitor companies and affirmed the contract has the force of law between them and should
be complied with in good faith.
 MODULE 4: WORKING CONDITIONS

■​ Doctrine: Constructive dismissal defined as a quitting, an employees and of Art. 136 of the Labor Code; and that
involuntary resignation resorted to when continued respondents’ resignations were far from voluntary
employment becomes impossible, unreasonable, or unlikely; ■​ Ruling: Decision of CA is affirmed.
when there is a demotion in rank or diminution in pay; or ■​ Doctrine: Anti-nepotism policies need to prove its business
when a clear discrimination, insensibility or disdain by an necessity other than the perception that spouses in the
employer becomes unbearable to the employee. same workplace might adversely affect the business. In the
■​ Application: Tecson was not demoted or unduly discriminated absence of a bona fide occupational qualification invalidates
against by his transfer to Camarines Sur. Such was the a rule denying employment to one spouse due to the
exercise of management prerogative of Glaxo considering his employment of the other spouse in the same office. To justify
relationship with Bettsy and the proximity of their assigned a bona fide occupational qualification, the employer must
working areas within the same region, which provides a prove two factors: (1) that the employment qualification is
potential information leak of Glaxo’s marketing strategies to reasonably related to the essential operation of the job
Astra. involved; and, (2) that there is a factual basis for believing
iii.​ Star Paper Corp v. Simbol, Comia and Estrella, GR No. that all or substantially all persons meeting the qualification
164774, April 12, 2006 would be unable to properly perform the duties of the job.
■​ Facts: Respondents were all regular employees of SPC. ■​ Application: There is no business necessity to justify the
Simbol and Comia married co-employees and resigned from no-spouse policy in SPC. The policy is premised on the mere
the company due to the latter’s no relationships between fear that employees married to each other will be less
co-employees policy. Estrella was in a relationship with a efficient. If we uphold the questioned rule without valid
co-employee, but resigned after she got pregnant. Simbol and justification, the employer can create policies based on an
Comia allege that they did not resign voluntarily but did so unproven presumption of a perceived danger at the expense
due to an illegal company policy. Estrella alleges that she of an employee’s right to security of tenure.
severed her relationship with Zuniga (baby daddy) to avoid e.​ Denial of Benefits
being dismissed, but chose to resign in exchange for her i.​ To deny any woman employee the benefits provided for in this
13th month pay after she was denied entry following Chapter or to discharge any woman employed by him for the
returning to work after suffering an accident. Respondents purpose of preventing her from enjoying any of the benefits
complained of unfair labor practice, constructive dismissal, provided under the Labor Code
separation pay and attorney’s fees, which was dismissed by f.​ Discharge on account of complaint or testimony
LA and NLRC, but reversed by CA i.​ To discharge any woman or child or any other employee for
■​ Issue: WON the CA erred in holding that the policy is violative having filed a complaint or having testified or being about to
of the constitutional rights towards marriage and the family of testify under the Code
 MODULE 4: WORKING CONDITIONS

g.​ Discharge on Account of Pregnancy ●​ Holding that the employee’s dismissal was in violation of
i.​ To discharge such woman on account of her pregnancy while Article 137
on leave or in confinement due to her pregnancy ●​ Awarding full backwages in favor of the employee
ii.​ Del Monte v. Philippines, Inc. v. Veloso, GR No. 153477, notwithstanding the company’s evident good faith
March 6, 2007 ■​ Ruling: The petition is DENIED for lack of merit
■​ Facts: Lolita M. Velasco started working with Del Monte ■​ Doctrine: Article 137 prohibits the discharge of a female
Philippines in October 1976 as a seasonal employee and employee on account of her pregnancy, while on leave or in
was regularized in May 1977. Her latest assignment was as confinement due to her pregnancy
a Field Laborer. From 1987-1994, she had been repeatedly ■​ Application: The employee’s pregnancy is a long-term
absent without official leave, which prompted the company to condition accompanied by an assortment of related illnesses.
send her a notice of hearing for violating the absence w/o It would be unreasonable to isolate such a condition strictly
official leave rule. Following numerous delays due to her to the dates stated in her medical certificate and discharge
absence from the proceedings, she was eventually dismissed summary. It is safely assumed that her absences beyond the
in January 1995. She then filed a case for illegal dismissal dates set in those documents are due to her pregnancy. For
asserting that she committed the most recent alleged the company to isolate her absences without submitting any
absences due to suffering from pregnancy-related illnesses evidence that the absences were non-pregnancy related
such as UTI. The complaint was dismissed by the LA for lack renders its justification of her dismissal as clearly not
of merit on the ground of her habitual absence from work, convincing. While the company stresses the employee’s long
which was vacated by the NLRC who found that her dismissal history of unauthorized absences, the most previous
was illegal. This was upheld by the CA, who ruled that the absences cannot be used by the company to lay down a
employee’s pregnancy was a justified cause for her absence, pattern of absenteeism to justify the dismissal considering
especially as she was advised by the company’s doctor to her pregnancy. It must be stressed that her discharge by
rest on account of her pregnancy-related sickness. reason of absences caused by her pregnancy is covered by
■​ Issues: WON the CA erred in: the prohibition under Article 137 of the Labor Code. Since
●​ Considering the employee’s excessive absences as justified her last string of absences is justifiable, these absences
simply on account of her pregnancy cannot be considered with her prior absences as gross and
●​ Not considering that the employee’s latest string of habitual neglect.
absences incurred without any prior permission and without h.​ Facilities for Women
any valid justification, taken together with her history, i.​ Article 130, PD 422 of the Labor Code
established her gross and habitual neglect of duties that ■​ The Secretary of Labor and Employment shall establish
justified dismissal standards that will ensure the safety and health of women
 MODULE 4: WORKING CONDITIONS

employees. In appropriate cases, he shall, by regulations, Employment of Minors

require any employer to: a.​ RA 7610 & 9231
1) Provide seats proper for women and permit them to use i.​ "Children" refers to person below eighteen (18) years of
such seats when they are free from work and during age or those over but are unable to fully take care of
working hours, provided they can perform their duties in themselves or protect themselves from abuse, neglect,
this position without detriment to efficiency; cruelty, exploitation or discrimination because of a physical
2) To establish separate toilet rooms and lavatories for or mental disability or condition;
men and women and provide at least a dressing room for ii.​ Section 10. (Any person who shall keep or have in his
women; company a minor, twelve (12) years or under or who in ten
(10) years or more his junior in any public or private place,
3) To establish a nursery in a workplace for the benefit of hotel, motel, beer joint, discotheque, cabaret, pension
the women employees therein; and house, sauna or massage parlor, beach and/or other
tourist resort or similar places shall suffer the penalty of
4) To determine appropriate minimum age and other prision mayor in its maximum period and a fine of not less
standards for retirement or termination in special than Fifty thousand pesos (P50,000): Provided, That this
occupations such as those of flight attendants and the like. provision shall not apply to any person who is related within
i.​ Family Planning Services the fourth degree of consanguinity or affinity or any bond
i.​ Article 132 of the Labor Code recognized by law, local custom and tradition or acts in the
■​ Establishments which are required by law to maintain a clinic performance of a social, moral or legal duty.
or infirmary shall provide free family planning services to their iii.​ Section 12. Employment of Children. – Children below
employees which shall include, but not be limited to, the fifteen (15) years of age shall not be employed except:
application or use of contraceptive pills and intrauterine 1) When a child works directly under the sole responsibility
devices. of his/her parents or legal guardian and where only
j.​ Classification of Certain Women Workers members of his/her family are employed: Provided,
i.​ (Article 138, Labor Code) however, That his/her employment neither endangers
■​ Any woman who is permitted or suffered to work, with or his/her life, safety, health, and morals, nor impairs his/her
without compensation, in any night club, cocktail lounge, normal development: Provided, further, That the parent or
massage clinic, bar or similar establishments under the legal guardian shall provide the said child with the
effective control or supervision of the employer for a prescribed primary and/or secondary education; or
substantial period of time as determined by the Secretary of
Labor and Employment, shall be considered as an employee 2) Where a child's employment or participation in public
of such establishment for purposes of labor and social entertainment or information through cinema, theater,
legislation.
 MODULE 4: WORKING CONDITIONS

radio, television or other forms of media is essential: Provided, That the work shall not be more than four (4)
Provided, That the employment contract is concluded by the hours at any given day;
child's parents or legal guardian, with the express (2) A child fifteen (15) years of age but below eighteen
agreement of the child concerned, if possible, and the (18) shall not be allowed to work for more than eight (8)
approval of the Department of Labor and Employment: hours a day, and in no case beyond forty (40) hours a
Provided, further, That the following requirements in all week;
instances are strictly complied with: (3) No child below fifteen (15) years of age shall be
allowed to work between eight o'clock in the evening and
(a) The employer shall ensure the protection, health, six o'clock in the morning of the following day and no
safety, morals and normal development of the child; child fifteen (15) years of age but below eighteen (18)
shall be allowed to work between ten o'clock in the
(b) The employer shall institute measures to prevent the evening and six o'clock in the morning of the following
child's exploitation or discrimination taking into account day.
the system and level of remuneration, and the duration v.​ Sec. 12-B. Ownership, Usage and Administration of the
and arrangement of working time; and Working Child's Income. - The wages, salaries, earnings
and other income of the working child shall belong to
(c) The employer shall formulate and implement, subject him/her in ownership and shall be set aside primarily for
to the approval and supervision of competent authorities, his/her support, education or skills acquisition and
a continuing program for training and skills acquisition of secondarily to the collective needs of the family: Provided,
the child. That not more than twenty percent (20%) of the child's
income may be used for the collective needs of the family.
In the above-exceptional cases where any such child may
be employed, the employer shall first secure, before The income of the working child and/or the property
engaging such child, a work permit from the Department of acquired through the work of the child shall be
Labor and Employment which shall ensure observance of administered by both parents. In the absence or incapacity
the above requirements. of either of the parents, the other parent shall administer
the same. In case both parents are absent or
For purposes of this Article, the term "child" shall apply to incapacitated, the order of preference on parental authority
all persons under eighteen (18) years of age. as provided for under the Family Code shall apply.
iv.​ Sec. 12-A. Hours of Work of a Working Child. - Under the vi.​ Sec. 12-C. Trust Fund to Preserve Part of the Working
exceptions provided in Section 12 of this Act, as amended: Child's Income. - The parent or legal guardian of a working
(1) A child below fifteen (15) years of age may be allowed child below eighteen (18) years of age shall set up a trust
to work for not more than twenty (20) hours a week: fund for at least thirty percent (30%) of the earnings of the
 MODULE 4: WORKING CONDITIONS

child whose wages and salaries from work and other b) Exposes the child to physical, emotional or
income amount to at least two hundred thousand pesos sexual abuse, or is found to be highly stressful
(P200,000.00) annually, for which he/she shall render a psychologically or may prejudice morals; or
semi-annual accounting of the fund to the Department of c) Is performed underground, underwater or at
Labor and Employment, in compliance with the provisions dangerous heights; or
of this Act. The child shall have full control over the trust d) Involves the use of dangerous machinery,
fund upon reaching the age of majority. equipment and tools such as power-driven or
vii.​ Sec. 12-D. Prohibition Against Worst Forms of Child Labor. - explosive power-actuated tools; or
No child shall be engaged in the worst forms of child labor. e) Exposes the child to physical danger such as, but
The phrase "worst forms of child labor" shall refer to any of not limited to the dangerous feats of balancing,
the following: physical strength or contortion, or which requires
(1) All forms of slavery, as defined under the the manual transport of heavy loads; or
"Anti-trafficking in Persons Act of 2003", or practices f) Is performed in an unhealthy environment
similar to slavery such as sale and trafficking of exposing the child to hazardous working conditions,
children, debt bondage and serfdom and forced or elements, substances, co-agents or processes
compulsory labor, including recruitment of children for involving ionizing, radiation, fire, flammable
use in armed conflict; or substances, noxious components and the like, or to
extreme temperatures, noise levels, or vibrations;
(2) The use, procuring, offering or exposing of a child or
for prostitution, for the production of pornography or for g) Is performed under particularly difficult
pornographic performances; or conditions; or
h) Exposes the child to biological agents such as
(3) The use, procuring or offering of a child for illegal or bacteria, fungi, viruses, protozoans, nematodes and
illicit activities, including the production and trafficking other parasites; or
of dangerous drugs and volatile substances prohibited i) Involves the manufacture or handling of
under existing laws; or explosives and other pyrotechnic products.
viii.​ Sec. 13. Access to Education and Training for Working
(4) Work which, by its nature or the circumstances in Children - "a) No child shall be deprived of formal or
which it is carried out, is hazardous or likely to be non-formal education. In all cases of employment allowed
harmful to the health, safety or morals of children, such in this Act, the employer shall provide a working child with
that it: access to at least primary and secondary education.
a) Debases, degrades or demeans the intrinsic b) To ensure and guarantee the access of the working child
worth and dignity of a child as a human being; or to education and training, the Department of Education
 MODULE 4: WORKING CONDITIONS

(DEPED) shall: (1) formulate, promulgate, and implement defined in the immediately preceding subparagraph;
relevant and effective course designs and educational and
programs; (2) conduct the necessary training for the ●​ When the child is below fifteen (15) years of age, (i) in
implementation of the appropriate curriculum for the work where he/she is directly under the responsibility
purpose; (3) ensure the availability of the needed of his/her parents or legal guardian and where only
educational facilities and materials; and (4) conduct members of the child ‘s family are employed; or (ii) in
continuing research and development program for the public entertainment or information
necessary and relevant alternative education of the working ii.​ Sets the requirements to avail of exceptions to employment
child. prohibition of working minors via work permit
c.​ RA 10911
c) The DEPED shall promulgate a course design under its i.​ Prevents discrimination against any individual in
non-formal education program aimed at promoting the employment on account of age
intellectual, moral and vocational efficiency of working ii.​ Section 5. Prohibition of Discrimination in Employment on
children who have not undergone or finished elementary or Account of Age -
secondary education. Such course design shall integrate (a) It shall be unlawful for an employer to:
the learning process deemed most effective under given (1) Print or publish, or cause to be printed or
circumstances published, in any form of media, including the
ix.​ Section 14. Prohibition on the Employment of Children in internet, any notice of advertisement relating to
Certain Advertisements. – No child shall be employed as a employment suggesting preferences, limitations,
model in any advertisement directly or indirectly promoting specifications, and discrimination based on age;
alcoholic beverages, intoxicating drinks, tobacco and its (2) Require the declaration of age or birth date
byproducts, gambling or any form of violence or during the application process;
pornography. (3) Decline any employment application because of
b.​ DOLE DO No 65-04 the individual’s age;
i.​ Child Labor vs Working Child (4) Discriminate against an individual in terms of
■​ Child Labor: Refers to any work or economic activity compensation, terms and conditions or privileges of
performed by a child that subjects him/her to any form of employment on account of such individual’s age;
exploitation or is harmful to his/her health and safety or (5) Deny any employee’s or worker’s promotion or
physical, mental or psychosocial development. opportunity for training because of age;
■​ Working Child: Refers to any child engaged as follows: (6) Forcibly lay off an employee or worker because
●​ When the child is below eighteen (18) years of age, in of old age; or
work or economic activity that is not child labor as (7) Impose early retirement on the basis of such
employee’s or worker’s age.
 MODULE 4: WORKING CONDITIONS

accordance with the Labor Code, as amended, and

(b) It shall be unlawful for a labor contractor or other related laws; or
subcontractor, if any, to refuse to refer for employment (d) The action is duly certified by the Secretary of Labor
or otherwise discriminate against any individual and Employment in accordance with the purpose of this
because of such person’s age. Act.
(c) It shall be unlawful for a labor organization to: Employment of Househelpers/Kasambahay
(1) Deny membership to any individual because of a.​ RA 10361
such individual’s age; i.​ Domestic Work: Refers to work performed in or for a household
(2) Exclude from its membership any individual or households.
because of such individual’s age; or ii.​ Household: The immediate members of the family or the
(3) Cause or attempt to cause an employer to occupants of the house that are directly provided services by
discriminate against an individual in violation of this the domestic worker.
Act. iii.​ Domestic worker or "Kasambahay": Any person engaged in
iii.​ (d) It shall be unlawful for a publisher to print or publish any domestic work within an employment relationship such as, but
notice of advertisement relating to employment suggesting not limited to, the following: general househelp, nursemaid or
preferences, limitations, specifications, and discrimination "yaya", cook, gardener, or laundry person, but shall exclude any
based on age. person who performs domestic work only occasionally or
iv.​ Section 6. Exceptions. - It shall not be unlawful for an sporadically and not on an occupational basis.
employer to set age limitations in employment if: iv.​ Employment Age of Domestic Workers
(a) Age is a bona fide occupational qualification ■​ Unlawful to employ any person below fifteen (15) years of age
reasonably necessary in the normal operation of a as a domestic worker.
particular business or where the differentiation is based ■​ Persons between 15-18 years old should only be employed in
on reasonable factors other than age; non-hazardous work
v.​ Wages
(b) The intent is to observe the terms of a bona fide ■​ Minimum Wage: The minimum wage of domestic workers
seniority system that is not intended to evade the shall not be less than the following:
purpose of this Act; (a) Two thousand five hundred pesos (P2,500.00) a month
for those employed in the National Capital Region (NCR);
(c) The intent is to observe the terms of a bona fide (b) Two thousand pesos (P2,000.00) a month for those
employee retirement or a voluntary early retirement plan employed in chartered cities and first class municipalities;
consistent with the purpose of this Act: Provided, That and
such retirement or voluntary retirement plan is in
 MODULE 4: WORKING CONDITIONS

(c) One thousand five hundred pesos (P1,500.00) a month physical violence or harassment or any act tending to degrade
for those employed in other municipalities. the dignity of a domestic worker.
■​ Time and Manner of Payment vii.​ Board, Lodging and Medical Attendance: The employer shall
●​ Payment of wages shall be made on time directly to the provide for the basic necessities of the domestic worker to
domestic worker to whom they are due in cash at least include at least three (3) adequate meals a day and humane
once a month. The employer, unless allowed by the sleeping arrangements that ensure safety.
domestic worker through a written consent, shall make no
deductions from the wages other than that which is The employer shall provide appropriate rest and assistance to
mandated by law. No employer shall pay the wages of a the domestic worker in case of illnesses and injuries sustained
domestic worker by means of promissory notes, vouchers, during service without loss of benefits.
coupons, tokens, tickets, chits, or any object other than the
cash wage as provided for under this Act. At no instance shall the employer withdraw or hold in abeyance
○​ The domestic worker is entitled to a thirteenth month the provision of these basic necessities as punishment or
pay as provided for by law. disciplinary action to the domestic worker.
●​ The employer shall at all times provide the domestic worker viii.​ Guarantee of Privacy : Respect for the privacy of the domestic
with a copy of the pay slip containing the amount paid in worker shall be guaranteed at all times and shall extend to all
cash every pay day, and indicating all deductions made, if forms of communication and personal effects. This guarantee
any. The copies of the pay slip shall be kept by the equally recognizes that the domestic worker is obliged to
employer for a period of three (3) years render satisfactory service at all times.
■​ Wage Prohibitions ix.​ Access to Outside Communication: The employer shall grant
●​ It shall be unlawful for the original employer to charge any the domestic worker access to outside communication during
amount from the said household where the service of the free time: Provided, That in case of emergency, access to
domestic worker was temporarily performed. communication shall be granted even during work time. Should
●​ Interference in employee’s wage disposal [Sec. 27, RA the domestic worker make use of the employer’s telephone or
10361] other communication facilities, the costs shall be borne by the
●​ Direct or indirect withholding of wages by the employer domestic worker, unless such charges are waived by the
[Sec. 28, RA 10361] employer.
x.​ Right to Education and Training: The employer shall afford the
●​ Payment in forms other than cash [Sec. 25, RA 10361]
domestic worker the opportunity to finish basic education and
vi.​ Standard of Treatment: The employer or any member of the
may allow access to alternative learning systems and, as far
household shall not subject a domestic worker or
as practicable, higher education or technical and vocational
"kasambahay" to any kind of abuse nor inflict any form of
training. The employer shall adjust the work schedule of the
 MODULE 4: WORKING CONDITIONS

domestic worker to allow such access to education or training (c) Accumulating rest days not exceeding five (5) days; or
without hampering the services required by the employer. (d) Other similar arrangements.
xi.​ Prohibition Against Privileged Information: All communication xv.​ Termination of Employment
and information pertaining to the employer or members of the ■​ Initiated by the Domestic Worker
household shall be treated as privileged and confidential, and ●​ Verbal or emotional abuse of the domestic worker by the
shall not be publicly disclosed by the domestic worker during employer or any member of the household;
and after employment. Such privileged information shall be ●​ Inhuman treatment including physical abuse of the
inadmissible in evidence except when the suit involves the domestic worker by the employer or any member of the
employer or any member of the household in a crime against household;
persons, property, personal liberty and security, and chastity. ●​ Commission of a crime or offense against the domestic
xii.​ A domestic worker who has rendered at least one (1) month of worker by the employer or any member of the household;
service shall be covered by the Social Security System (SSS), ●​ Violation by the employer of the terms and conditions of
the Philippine Health Insurance Corporation (PhilHealth), and the employment contract and other standards set forth
the Home Development Mutual Fund or Pag-IBIG, and shall be under this law;
entitled to all the benefits in accordance with the pertinent ●​ Any disease prejudicial to the health of the domestic
provisions provided by law. worker, the employer, or member/s of the household; and
xiii.​ A domestic worker who has rendered at least one (1) year of ●​ Other causes analogous to the foregoing.
service shall be entitled to an annual service incentive leave of ■​ Initiated by the Employer
five (5) days with pay
●​ Misconduct or willful disobedience by the domestic worker
xiv.​ Rest Periods
of the lawful order of the employer in connection with the
■​ Daily: Aggregate daily rest period of 8 hours per day former’s work;
■​ Weekly: At least twenty-four (24) consecutive hours of rest in ●​ Gross or habitual neglect or inefficiency by the domestic
a week. worker in the performance of duties;
●​ The employer and the domestic worker shall agree in ●​ Fraud or willful breach of the trust reposed by the employer
writing on the schedule of the weekly rest day of the on the domestic worker;
domestic worker: Provided, That the employer shall respect
●​ Commission of a crime or offense by the domestic worker
the preference of the domestic worker as to the weekly rest
against the person of the employer or any immediate
day when such preference is based on religious grounds.
member of the employer’s family;
Nothing in this provision shall deprive the domestic worker
●​ Violation by the domestic worker of the terms and
and the employer from agreeing to the following:
conditions of the employment contract and other standards
(a) Offsetting a day of absence with a particular rest day;
set forth under this law;
(b) Waiving a particular rest day in return for an equivalent
daily rate of pay;
 MODULE 4: WORKING CONDITIONS

●​ Any disease prejudicial to the health of the domestic Employment of Handicapped Workers
worker, the employer, or member/s of the household; and a.​ RA 7277
●​ Other causes analogous to the foregoing. i.​ Disabled Persons: Those suffering from restriction or different
■​ Upon the severance of the employment relationship, the abilities, as a result of a mental, physical or sensory
employer shall issue the domestic worker within five (5) days impairment, to perform an activity in the manner or within the
from request a certificate of employment indicating the range considered normal for a human being;
nature, duration of the service and work performance. ii.​ Impairment: Any loss, diminution or aberration of
■​ Unjust Dismissal psychological, physiological, or anatomical structure or
●​ Neither the domestic worker nor the employer may function;
terminate the contract before the expiration of the term iii.​ Disability shall mean:
except for grounds provided for ■​ A physical or mental impairment that substantially limits one
●​ If the domestic worker is unjustly dismissed, the domestic or more psychological, physiological or anatomical function of
worker shall be paid the compensation already earned plus an individual or activities of such individual;
the equivalent of fifteen (15) days work by way of indemnity ■​ A record of such an impairment; or
■​ Leave without a Justifiable Reason ■​ Being regarded as having such an impairment;
●​ Any unpaid salary due not exceeding the equivalent fifteen iv.​ Handicap refers to a disadvantage for a given individual,
(15) days work shall be forfeited, and resulting from an impairment or a disability, that limits or
●​ The employer may recover from the domestic worker costs prevents the function or activity, that is considered normal
incurred related to the deployment expenses, if any: given the age and sex of the individual;
Provided, That the service has been terminated within six v.​ Coverage
(6) months from the domestic worker’s employment. ■​ All disabled persons and, to the extent herein provided,
■​ If the duration of the domestic service is not determined departments, offices and agencies of the National
either in stipulation or by the nature of the service, the Government or non-government organizations involved in the
employer or the domestic worker may give notice to end the attainment of the objectives of this Act.
working relationship five (5) days before the intended vi.​ Discrimination
termination of the service. ■​ No entity, whether public or private, shall discriminate against
■​ The domestic worker and the employer may mutually agree a qualified disabled person by reason of disability in regard to
upon written notice to pre-terminate the contract of job application procedures, the hiring, promotion, or
employment to end the employment relationship. discharge of employees, employee compensation, job
training, and other terms, conditions, and privileges of
employment.
■​ Acts of Discrimination:
 MODULE 4: WORKING CONDITIONS

●​ Limiting, segregating or classifying a disabled job applicant ●​ Failing to select or administer in the most effective manner
in such a manner that adversely affects his work employment test which accurately reflect the skills,
opportunities; aptitude or other factor of the disabled applicant or
●​ Using qualification standards, employment test or other employee that such test purports to measure, rather than
selection criteria that screen out or tend to screen out a the impaired sensory, manual or speaking skills of such
disabled person unless such standards, test or other applicant or employee, if any; and
selection criteria are shown to be job-related for the ●​ Excluding disabled persons from membership in labor
position in question and are consistent with business unions or similar organizations.
necessity; ■​ Incentives for Employers
●​ Utilizing standards, criteria, or methods of administration ●​ Private entities that employ disabled persons who meet the
that: required skills or qualifications, either as regular employee,
○​ Have the effect of discrimination on the basis of apprentice or learner, shall be entitled to an additional
disability; or deduction, from their gross income, equivalent to
○​ Perpetuate the discriminations of others who are subject twenty-five percent (25%) of the total amount paid as
to common administrative control. salaries and wages to disabled persons: Provided, however,
●​ Providing less compensation, such as salary, wage or other That such entities present proof as certified by the
forms of remuneration and fringe benefits, to a qualified Department of Labor and Employment that disabled
disabled employee, by reason of his disability, than the persons are under their employ: Provided, further, That the
amount to which a non-disabled person performing the disabled employee is accredited with the Department of
same work is entitled; Labor and Employment and the Department of Health as to
●​ Favoring a non-disabled employee over a qualified disabled his disability, skills and qualifications. (Sec. 8(b))
employee with respect to promotion, training opportunities, ●​ Private entities that improve or modify their physical
study and scholarship grants, solely on account of the facilities in order to provide reasonable accommodation for
latter's disability; disabled persons shall also be entitled to an additional
●​ Re-assigning or transferring a disabled employee to a job or deduction from their net taxable income, equivalent to fifty
position he cannot perform by reason of his disability; percent (50%) of the direct costs of the improvements or
●​ Dismissing or terminating the services of a disabled modifications. This Section, however, does not apply to
employee by reason of his disability unless the employer improvements or modifications of facilities required under
can prove that he impairs the satisfactory performance of Batas Pambansa Bilang 344. (Sec.8(c))
the work involved to the prejudice of the business entity; ●​ Employers may claim such discounts as tax deductions
Provided, however, That the employer first sought to provide based on the net cost of the goods sold on services
reasonable accommodations for disabled persons; rendered:
 MODULE 4: WORKING CONDITIONS

○​ The cost of the discount shall be allowed as deduction

from gross income for the same taxable year that the
discount is granted
○​ The total amount of the claimed tax deduction net of VAT
if applicable, shall be included in their gross sales
receipts for tax purposes and shall be subject to proper
documentation and to the provisions of the National
Internal Revenue Code, as amended.