Know Your Rights
Holiday Pay
Premium Pay
Overtime Work
Wage and Wage-Related Benefit
Computation of Wages
Safe Working Condition
Leaves
Administration and Enforcement
Right to Self-Organization and Collective Bargaining
Workers' Participation and Tripartism
Social Legislations
On Labor Disputes
Where to Seek Remedies
Holiday Pay go to top
A. Coverage
This benefits shall apply to all employees except:
a) Those of the government and any of the political subdivisions, including government-owned and controlled corporations; b) Those of retail and service establishments regularly employing less that ten (10) workers;
c) Domestic helpers and persons in the personal service of another;
d) Managerial employees; and
e) Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on tasl or contract basis, purely commission basis or those who are paid a fixed amount fot performing work irrespective of the time consumed in the performance thereof.
A. Regular Holidays
Every employee covered by the Holiday Pay Rule is entitled to his daily basic wage for any unworked regular holiday. This means that the employee is entitled to at least 100% of his basic wage even if he/she did not report for work, provided he/she is present or is on leave of absence with pay on the work day immediately preceding the holiday.
Work performed on that day merits a least twice (200%) basic wage of the employee.
Illustration: Using the NCR minimum wage rate of P253.50 per day for non-agricultural sector effective 31 October 1999
For work with in 8 hours:
Plus 100% of the daily basic rate of 100% or a total of 200%
P223.50+100% thereof = P223.50 + P223.50 = P447.00
or
200% of P223.50 = 2.00 x P223.50 = P447.00
Where the holiday falls on the schedule rest day of the employee, work performed on said day merits at least an additional 30% of the employee's regular holiday rate of 200% or a total of at least 260% (please see III. Premium Pay).
There are ten (10) regular holidays in a year under Executive Order No. 203, namely:
New Year's Day January 1
Maundy Thursday Movable Date
Good Friday Movable Date
Araw ng Kagitingan April 9
Labor Day May 1
Independence Day June 12
National Hereos Day Last Sunday of August
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
C. National Special Days
All Saints Day November 1
Last Day of the Year December 31
(D. Muslim Holiday)
E. Special Days
Executive Order No. 203 list down two (2) special days that shall be observed in this country: All Saints Day (November 1), and the last day of the year (December 31). During special days, the principle of "no work, no, pay" applies and on such other special days as may be proclaimed as such by the President or by Congress.
Workers who were not required or permitted to work on those days are not by law entitled to any compensation. This, however, is without prejudice to any voluntary practice or provision in the Collective Bargaining Agreement (CBA) providing for payment of wages and other benefits for days declared as special days even if unworked.
On the other hand, work performed on special days merits additional compensation of not less than 30% on top of the basic pay or a total of 130% and at least 50% over and above the basic pay or total of 150% if the worker is permitted or suffered to work on said day which may be his/her schedule rest day (Plaese seeIII. Premium Pay)
F. Absences
a) All covered employees shall be entitled to holiday pay when they are on leave of absence with pay. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if they have not worked on such regulat holiday
b) Employers shall grant the same percentage of the holiday pay as the benefit granted by competent authority in the form of employee's compensation or sicial security payment whicever is higher, if they are not reporting for work while on such benefits.
c) Where the day immediately preceding the holiday is a non-working day in the establishment or the schedule rest day of the employee, he/she shall not be deemed to be on leave of absence on that day, in which case he/she shall be entitled to the holiday pay if he/she worked on the day immediately preceding the non-working day or rest day.
G. Temporary or Periodic Shutdown/Cessation of Work
In case of temporary or periodic shutdown and temporary cessation of work of an establishment, as when a yearly inventory or when the repair or cleaning of machineries and equipment is undertaken, the regular holidays falling within the period shall be compensated in accordance with the Rules Implementing the Labor Code.
H. Holiday Pay of Certain Employees
a) Where the covered employees is paid on piece rate basis, his/her holiday pay shall be less than his/her average daily earnings for the last seven (7) actual Working days preceding the regular holiday; Provided, however, that in no case shall that holiday pay be less than the applicable statutory minimum wage rate.
b) Seasonal workers may not be paid the required holiday pay during off-season when they are not at work.
c) Workers who do not have regular working days, such as stevedores, shall be entitled to this benefit.
Permium Pay go top
A. Definition of Premium Pay
Premium Pay refers to the additional compensation required by law for work performed within eight (8) hours on non-working days, such as rest days and special days.
B. Coverage
This benefit applies to all employees but not to the following persons;
a) Government employees whether employed by the National Goverment or any of its political sub-divisions, including those employed in government-owned and/or controlled corporations;
b) Management employees, if they meet all of the following conditions:
1) Their primary duty consists of the management of the establishment in which they are employed or of a department or sub-division thereof.
2) They customarily and regularly direct the work of two or more employees therein.
3) They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendation as to hiring and firing and as to the promotion or any other change of status of other employees are given particular weight.
c) Officers or members of a managerial staff if they perform the following duties and responsibilities:
1) The primary duty consists of the performancce of work directly related to management policies of their employer;
2) Customarly and regularly exercise dicretion and independent judgment; and
3) i. Regularly and directly assist a proprietor or managerial employee whose primary duty consist of the management of the establishment in which he/she is employed or sub-division thereof, or
ii. execute under general supervision work along specialized or technical lines requiring special training, experience, or knowledge; or
iii. execute under general supervision, special assignment and tasks; and
4) Who do not devote more than 20% of their hours worked in a work week to activities which are not directly and closely related to the performance of the work described in paragrahps (1), (2) and (3) above.
d) Domestic servants and persons in the personal services of another.
e) Workers who are paid by result, including those who are paid on piece-work, "takay", "pakiao" or task basis, and other non-time work if thier output rates are in accordance with the standards prescribed in the regulations, or where such rates have been fixed by the Secretary of Labor and Employment.
f) Field personnel if they regulary perform their duties away from the principal or branch office or place of business of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty
C. Premium Pay Rates
The minimum Statutory permium pay rates are as follows:
a) For work performed on rest days or on special days.
Plus 30% of the daily rate of 100% or a total of 130%
b) For work performed on a rest day which is also a special day
Plus 50% of the daily rate of 100% or a total of 150%
b) *For work performed on a regular holiday which is also the employee's rest day
Plus 30% of the regular holiday rate of 200% based on his daily basic wage rate or total of 260%
C. Illustration: Using P223.50 as daily basic rate (DBR)
a) 30% of P223.50 = .3 x 223.50 = P67.05
P223.50 + P67.05 = P290.55
or
130% of P223.50 = 1.3 x P223.50 = P 290.55
b) 50% of P223.50 = .5 x 223.50 = P111.75
P223.50 + P111.75 = P335.25
or
150% of P223.50 = 1.5 x P223.50 = P335.25
c) *200% of P223.50 + 30% of 200% of P223.50 = P447.00 + .3 x (2 x P223.50)
P447.00 + (.3 x 447)
P447.00 + 134.10 = P581.10
or
[(200% + (30% of 200%)] of P223.50 = (200% + 60%) of P223.50 =
260% of P223.50 = 2.6 x P223.50 = P581.10
*Not applicable to employees excepted in the holiday pay rule
Overtime Work go top
A. Definition of Overtime Work
Overtime work is work performed beyond eight (8) hours a day.
B. Coverage
Every employee who is entitled to premium pay is likewise entitled to the benefit of of overtime pay
C. Overtime Pay Rates
The minimum overtime pay rates vary according to the day the overtime work is performed, as follows:
a) For work in excess of eight hours performed on ordinary working days: Plus 25% of the hourly rate
b) For work in excess of eight hours performed on a schedule rest day, a special day and a regular holiday: Plus 30% of the hourly rate on said days.
Illustration: Using P223.50 as basic daily rate and P27.94 as basic hourly rate.
i.) Ovetime pay on an ordinary day
P27.94 + (25% of P27.94) = P27.94 + (0.25 x P27.94)
P27.94 + P6.98 = P34.92 OT/hour
or
125% of P27.94 = 1.25 x P27.94 = P34.92 OT/hour
ii.) Ovetime pay on rest day or on special day
130% of P27.94 + 30% of (130% of 27.94)
P36.32% + P10.90 = P47.22 OT.hour
or
130% of (130% of P27.94) = 1.3 x (1.3 x 27.94)=
1.3 x P36.32 = P47.22 OT/hour
c) Overtime pay on a rest day which falls on a special day
130% of (150% of 27.94) = 1.3 x (1.5 x P27. 94)
= 1.3 x P41.91 = P54.48 OT.hour
or
150% of 27.94 + 30% of (150% of 27.94)
P41.91 + P12.57 = P54.48 OT/hour
d) Overtime pay on a regular day
200% of P27.94 + 30% of (200% of 27.94)=
P55.88/hour + P16.76 = P72.64 OT.hour
or
130% of (200% of P27.94) = 1.3 x (2.0 x 27.94)=
1.3 x P55.88 = P72.64 OT/hour
e) Overtime pay on a rest day which falls on a regular day
260% of P27.94 + 30% of (260% of 27.94)=
P72.64/hour + P21.79 = P94.43 OT.hour
or
130% of (260% of P27.94) = 1.3 x (2.6 x 27.94)=
1.3 x P72.64 = P94.43 OT/hour
D. Stipulated Overtime Rates
Generally, the premium pay for work performed on rest days or on special days or regular holidays are included as part of the regular rate of the employee in the computation of overtime pay for overtime work rendered on said days especially if the employer pays only the minimum overtime rates prescribed by law.
The employees and employer, however, may stipulate in thier collective agreement payment for overtime work at rates higher than those provided by law.
Wage and Wage-Related Benefit go top
Wage is the amount paid to an employee in exchange for a task, piece of work, or service rendered to an employer. This includes overtime, night differential, rest day, holiday and 13th month pay. It also includes the fair and reasonable value of board, lodging and other facilities customarily furnished by the employer.
Computation of Wages go top
Computation of wages is governed by the following rules:
Computing Overtime:
On Ordinary Days
Number of hours in excess of 8 hours (125% x hourly rate)
On a rest day, special day or regular holiday
Number of hours in excess of 8 hours (130% x hourly rate)
Computing pay for work done on:
A special day (130% x basic pay)
A special day, which is also a scheduled rest day (150% x basic pay)
A regular holiday (200% x basic pay)
A regular holiday, which is also a scheduled day (260% x basic pay)
Computing Night Shift Premium Where Night Shift is a Regular Work
On Ordinary day (110% x basic hourly rate)
On a rest day, special day, regular holiday (110% of regular hourly rate for a rest day, special day, regular holiday)
Computing Overtime on Night Shift
On ordinary day (110%) x overtime hourly rate)
On rest day, special day or regular holiday (110% x overtime hourly rate for rest days, special days, regular holidays)
Computing 13th Month Pay
Total basic salary earned for the year exclusive of overtime, holiday, and night shift differential pay divided by 12 = 13th month pay.
Safe Working Condition go top
Employers must provide workers with every kind of on-the-job protection against injury, sickness or death through safe and healthful working conditions.
Protection includes provision of:
* Appropriate seats, lighting and ventilation;
* Adequate passageways, exits and fire fighting equipment;
* Separate facilities for men and women;
* Appropriate safety device like protective gears, masks, helmets, safety shoes, boots, coats or uniforms;
* Medicine, medical supplies or first aid kits;
* Free medial and dental services and facilities, the kind of which depends on the number of employees and the nature of the work.
Jobs may be hazardous or non-hazardous. Hazardous jobs are those which expose the employee to dangerous environment elements, including contaminants, radiation, fire, poisonous substances, biological agents and explosives, or dangerous processes or equipment including construction, mining, quarrying, blasting, stevedoring, mechanized farming and operating heavy equipment.
Leaves go top
The three types of leaves which an employer is obliged to extend to its employees are:
1. Service Incentive Leave (SIL), which refers to a five-day leave with pay to which an employee is entitled after one year of service. Unused SIL may be converted to cash at the end of each year of service, and the computation shall be the salary rate at the time of conversion.
2. Maternity Leave, which refers to the leave granted to the occasion of childbirth, abortion of miscarriage of a female member of the SSS who has paid at least three monthly contributions in the 12-month period immediately preceding her childbirth or miscarriage. During her maternity leave, the female employee shall be paid an allowance equivalent to her average monthly salary credit for 30 days in case of normal child-birth, abortion or miscarriage, or for 78 days in case of caesarian delivery. This allowance shall be advanced by the employer, subject to reimbursement from the SSS.
3. Paternity Leave, which allows a male employee a leave of seven days with full pay when his legitimate spouse gives birth or suffers miscarriage. It shall be enjoyed by the employee for the first four deliveries of his legitimate spouse.
Administration and Enforcement go top
Labor Standards are the minimum terms and conditions of employment fixed through the Labor Code, including wages and wage-related benefits and leaves. No employer is allowed to extend to its employees terms and conditions of employment below these standards.
Under the visitorial power, the Secretary of Labor and Employment through the Regional Director or an authorized representative can inspect or investigate the premises or records of the employer at any time whenever work is being undertaken. The power is intended to determine whether the employer is complying with labor standards or other obligations to its workers as prescribed by the Labor Code.
Through the Enforcement Power, the Secretary or Regional Director can 1.) order an employer, after due notice and hearing, to comply with labor standards; 2.) issue a writ of execution in case the employer does not honor the order of compliance; or 3.) stop work or suspend operations if the violation poses an imminent danger to the health and safety of workers. If work is stopped or suspended due to imminent danger, the employer has a right to a hearing, to be conducted within 24 hours from the time work or operations is stopped. The hearing is to determine whether or not it is safe for work operations to resume.
Right to Self-Organization and Collective Bargaining go top
The right to self-organization is the right of every worker, free of any interference from the employer or from government, to form or join any legitimate worker's organization, association or union of his or her own choice. Except those classified as managerial or confidential, all employees may form or join unions for purposes of collective bargaining and other legitimate concerted activities. An employee is eligible for membership in an appropriate union on the first day of his or her employment.
Collective Bargaining involves two parties: 1.) the representative of the employer, and 2.) a union duly authorized by the majority of the employees within a bargaining unit called exclusive bargaining agent. It is a process where the parties agree: 1.) to fix and administer terms and conditions of employment which must not be below the minimum standards fixed by law, and 2.) to set a mechanism for resolving their grievances.
The result of collective bargaining is a contract called collective bargaining agreement (CBA). A CBA generally has a term of five years. The provisions of a CBA may be classified as political or economic. Political provisions refer to those refer to those which define the coverage of the CBA and recognize the collective bargaining agent as the exclusive representative of the employees for the term of the CBA. Economic provisions refer to all terms and conditions of employment with a monetary value. Economic provisions have a term of five years but may be renegotiated before the end of the third year of affectivity for the CBA.
Workers' Participation and Tripartism go top
The ideal relationship of employees and employers is social partnership. They are expected to share primary responsibility in regulating their relations and settling their differences. They are encouraged to set-up labor-management councils and other mechanisms for fostering communications, consultation, cooperation and join decision making in the workplace.
Employees have a right to a just share in the fruits of production. Employers are entitled to reasonable returns on their investment and to expansion and growth. Both parties are encouraged to develop schemes to improve efficiency, competitiveness and productivity which result in increased outcomes for employees and long term sustainability for employers.
Workers have a right to participate in policy and decision making processes in matters directly affecting them. They have a right to take part in tripartite activities with government and employers organizations. Through their organizations, workers are entitled to representation in tripartite decision-making functions as defined by law, including fixing of wages and resolution of labor disputes.
Social Legislations go top
Social legislations are laws which provide social security benefits workers, generally through:
1.) income substitutes in case they suffer contingencies resulting in temporary or permanent loss of earning capacity;
2.) also rehabilitation assistance for work-related disability;
3.) financial assistance or allowance for death or sickness;
4.) old age pensions in case of retirement; and
5.) credit access for social needs.
Social security benefits are sources from a common fund sustained bye contributions from employers or employees or both. The main social security programs are:
1.) the Employees Compensation Program, which provides employees and dependents with tax-exempt income and medical benefits in case of work connected disability or death;
2.) the Social Security Program, which provides tax-exempt benefits for employees and their families in case of disability, sickness, old age or death;
3.) the Housing Program, which provides employees who are members of SSS housing loans.
Also a part of social legislation is the retirement law, which provides retirement benefits equivalent to 22.5 days salary for every year of service for optional retirement at 60 under RA 7641 or under applicable agreement or for compulsory retirement at age 65.
For underground mine employees, optional retirement at 50 under RA7641 as amended by RA 8558; compulsory at 60.
On Labor Disputes go top
A Labor Dispute is any controversy or matter concerning the association or representation of persons for purposes of collective bargaining, or concerning terms or conditions of employment, including violations of labor standards, labor relations, and welfare and social laws.
Types of Disputes
A labor dispute may be between:
1.) the employer and its employees or employee's organizations'
2.) two associations of employees; and
3.) members of employees' organizations.
Labor Standard Disputes include non-payment or under-payment of wages and wage-related benefits and violations of health and safety standards.
Labor Relations Dispute include employee discipline or dismissals, unfair labor practices, disputes arising from the right of unions to represent employees for purposes of bargaining, bargaining deadlocks, strikes and lockouts, contract administration, and personnel policy disputes.
Welfare and Social Legislations Disputes refer to claims arising from failure of the employer to comply with its social and welfare obligations under the law, such as remittance of SSS premiums and ECC contributions, or failure to pay social benefits including maternity pay, medicare and disability compensation.
Where To Seek Remedies go top
Labor Standards Disputes, including simple money claims not exceeding P5,000.00, which arises out of employee-employer relations- the Regional Office (RO) of the DOLE.
Labor Relations Disputes, particularly illegal dismissals with or without claim for reinstatement, unfair labor practices, strikes and lockouts and claims of damages - the labor Arbiter in the Regional Arbitration Branches of NLRC.
Union Representation - the Med-Arbiter of the DOLE-RO.
Intra-Union Disputes and Cancellation of Union Registration - the DOLE-RO or the Bureau of Labor Relations.
Bargaining Deadlocks Needing Conciliation and Mediation - the Regional Branches of NCMB.
CBA Administration Disputes Involving Personnel Policies - the Grievance Machinery at the establishment, if any, then with the regional branches of the NCMB.
Social Legislation Disputes - the Regional Branches of the ECC or the SSS.
source: http://www.evis.net.ph/~dole8/KYR.html
