Study Set Content:
Coverage
This benefit applies to all employees
but not to the following persons:
Officers or members of a
managerial staff but only if they meet
all of the following conditions:
Their primary duty is to perform
work, activities and tasks that are
directly related to the management
policies of their employer;
They customarily and regularly
exercise discretion and
independent judgment;
The regularly and directly assist a
proprietor or managerial employee
whose primary duty consists of
managing the establishment or
subdivisions in which he or she is
employed; or execute tasks under
general supervision, work along
specialized or technical lines that
require special training, experience,
or knowledge or execute tasks
under general supervision, special
assignments, and tasks; and
They do not devote more than 20%
of their working hours rendered in a
regular week to activities that are
not related to the type of work
described in first three points
above.
Coverage
This benefit applies to all employees
but not to the following persons:
a.Domestic servants and persons who
work for the personal service of others.
b.Workers who are paid by results or
their output. They include those who
are paid on piece work, "takay,"
"pakyaw" or task basis, and other
types of work not limited by time if their
output rates are in accordance with the
regulated standards, or if the rates
have been fixed by the Secretary of
Labor and Employment.
c.Field personnel who regularly
perform their duties away from the
principal, branch office or employer's
place of business and whose actual
hours of work in the field cannot be
determined with reasonable certainty.
Premium Pay Rates
For work that is performed on rest
days or on special days.
Plus 30%
of the daily rate of 100%, or a total
of 130%.
Premium Pay Rates
For work that is performed on a
rest day which is also a special
day.
Plus 50% of the daily rate of
100% or a total of 150%.
Premium Pay Rates
For work that is 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 a total of 260%.
The normal number of hours in a
regular working day is 8 hours within
the same 24-hour period. The required
additional compensation given for work
rendered beyond designated hours
called
overtime pay.
Overtime pay is required by law for
three 3 reasons:
a) First, to compensate the worker for
his or her physical and mental
efforts for hours worked beyond the
normal 8 hours.
b) Second, it could also be viewed as
a penalty imposed by society on
the employer. The worker granted
an additional pay to compensate
for having been deprived of time for
relaxation, amusement or sports,
and of the opportunity to contribute
to community or other business
engagement.
c) Third, the requirement of overtime
pay is a governmental measure to
promote full employment because it
forces employers to hire more
workers for every 8-hour period.
Coverage: Every employee who is
entitled to premium pay likewise
enjoys the benefit of overtime pay.
The minimum pay rates vary according
to the day the overtime work is
rendered and are computed as follows:
a) a. For work beyond eight hours
performed on ordinary
b) working days: Plus 25% of the
hourly rate.
c) For work beyond eight hours
performed on scheduled rest
day, a special day and a regular
holiday: Plus 30% of the hourly
rate on said days.
Usually, a worker is expected to work
during the daytime. However, there are
certain situations that compel the
employer to continue operations
beyond the normal daytime working
hours. The law requires payment of
night shift differential to employees
required to work between 10:00 PM
and 6:00 AM the following day.
A night
shift differential is
ten percent (10%) of
the hourly basic wage for each hour of
work that is performed.
The following
reasons justify the payment of night
differential pay:
a) Lack of sunlight could cause
anemia or tuberculosis, and
eyestrain. Risk of accidents are
common
b) Attendant danger when traveling to
and from work at night
c) Disruption of normal home life
The provisions of the Labor
Code regarding the night shift
differential apply to all employees
except for the following:
Government employees
Employees of retail and service
establishments that regularly
employ not more than 5 workers
Domestic helpers and persons who
work for the personal service of
others
Managerial employees
Field personnel and employees
whose performance and work
hours are unsupervised by the
employer
requires that an
employee who has provided at least
one year of service is entitled to a paid
service incentive leave of 5 days. In
ordinary parlance, the service
incentive leave is really a vacation
leave. Prior to the enactment of the
Labor Code, it was a practice to grant
employees 15 days leave or more per
year of service, especially if there is a
union or a collective bargaining
agreement. Article 95 of the Code
prescribes the minimum of 5 days
vacation leave with pay. It is not
merely to the worker's additional salary
or bounty. A paid vacation leave is
required in order to afford him or her
the needed rest and renewed vitality.
The five-day incentive leave is
mandatory. An additional number
beyond five is voluntary or granted as
a result of collective bargaining. At this
juncture, it may be well to mention that
the sick leave benefit is not required by
any law except that in practice,
companies do grant sick leave
generally about the same number of
days as vacation leave.
Service Incentive Leave
of the Code
prescribes the minimum of 5 days
vacation leave with pay.
Article 95
This benefit does not apply to the
following:
Service Incentive Leave
Government employees
Domestic helpers and persons who
work for the personal service of
others
Managerial employees
Field personnel and those whose
time and performance are
unsupervised by the employer
Those who are already enjoying
this benefit
Those who are enjoying paid leave
of at least 5 days
Those employed in establishments
that regularly employ less than ten
(10) employees
are not required by
law, although collected by most
restaurants, night clubs, lounges,
hotels, etc. But when service charges
are collected, the law provides a
manner of distribution in order to avoid
conflicts between management and its
workers. The Labor Code has provided
an orderly arrangement to guide
employers and their workers in dividing
the service charges indicated as a
percentage of a bill.
Service charges
is granted to an
employee who is involuntarily and
permanently dismissed from his or her
job.
Separation pay
the enactment of the
retirement law on
January 7, 1993,
It is now a matter of
state policy that retirement benefits be
paid as provided by law even in the
absence of a CBA or company policy
granting such benefit.
Retirement Pay
Coverage: Retirement pay
1. Employees may be retired upon
reaching 60 years of age but must
be retired by 65 years old.
2. This benefit does not apply to the
following.
a) Government employees
b) Employees of retail, service,
and agricultural establishments
or operations that regularly
employ not more than 10
employees.
c) Retirement under Republic Act
No. 8558
