Saint Mary’s University

School of Engineering, Architecture and Information Technology

Bayombong, Nueva Vizcaya

PART II – THE PHILIPPINE LABOR CODE

BASIC RIGHTS OF WORKERS

C. Work Days and Work Hours

Work days refers to any days during which the employee is regularly required to work. Hours of Work refers to all
time an employee renders actual work, or his required to be on duty or to be at the prescribed workplace. The
normal hours of work in a day is 8 hours, this includes breaks or rest period of less than one hour. But excludes meal
period, which should not be less than one hour.

Note: in the present situation, the normal meal period is 1 hour (12noon – 1pm) and there are two 15 minute -
breaks, one in the morning and one in the afternoon.

An employee must be paid his or her wages for all hours worked. If all or any part of his or her regular work hours
falls between 10:00 PM and 6:00 AM, he or she shall be entitled to a night shift pay in addition to his regular work
hours, or works for more than eight hours in one day, he or she is entitled to overtime pay, except, when he or she
is classified as managerial or field personnel, or one who works in the personal service of another, or is one who is
paid by results.

An employee may not be compelled to work overtime except during war, emergencies, disasters or calamities;
when urgent repairs need to be undertaken; when work is necessary to preserve perishable goods, avoid serious
obstruction or prejudice to the employer’s business; or to take advantage of favorable weather conditions.

Employees will be provided with a 24 hour rest period every after 6 consecutive working days.

Note: some companies have a regular working hours of 40 hours per week (8 hours from Monday to Friday) while
some have 48 hours per week (8 hours Monday to Saturday).

D. Wage or Wage-related Benefits

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.

Wage may be fixed for a given period, as when it is computed hourly, daily or monthly. It may also be fixed for a
specific task or result. If wage is for a fixed period, the minimum wage for a regular 8-hour workday shall not be
lower than the minimum daily wage applicable to the place of work as determined by the Regional Tripartite Wage
and Productivity Board having jurisdiction over the employer.

Note: the minimum daily wage is not the same in all areas of the Philippines. Kung naririnig niyo yung mga sinasabi
nilang “Provincial Rate”, yun yung hindi parehas ang sahod ng mga nasa probinsiya dun sa mga nasa Manila which
is mas mataas ang daily wage ng mga nasa Manila.

If the wage is paid by result, the worker shall receive at least the minimum wage for 8 hours of work. The amount
may be increased or reduced proportionately if work is rendered for more or less than eight hours. Wage shall be
paid directly to the employee in cash or legal tender at the place of work not less than once every two weeks or
twice a month intervals not exceeding 16 days.

1|CE – 318 Prepared By: Engr. Juniffen I. Tacadena

 Saint Mary’s University
School of Engineering, Architecture and Information Technology
Bayombong, Nueva Vizcaya

An employer cannot make deductions from an employee’s wage except for insurance premiums with the consent
of the employee, for union dues, or withholding taxes, SSS premiums, and other deductions expressly authorized
by law.

Computation of wages

Computation of Overtime:

• On ordinary days - Number of hours in excess of 8hrs x 125% x hourly rate

• On rest day/special day - Number of hours in excess of 8hrs x 130% x hourly rate
Or regular holiday

Computation of Pay on Work Done:

• On special day - 130% x basic pay

• On a special day which - 150% x basic pay
Is also a scheduled rest
Day
• On regular holiday - 200% x basic pay
• On a regular holiday - 260% x basic pay
Which is also a rest
Day

Computation of Night Shift Premium where Night Shift is a Regular Work:

• On ordinary day - 110% x basic hourly rate

• On a rest day/special - 110% x basic hourly rate for a rest day/
Day/regular holiday special day/regular holiday

Computation of Overtime on Night Shift

• On ordinary day - 110% x overtime hourly rate

• On a rest day/special - 110% x basic hourly rate for a rest day/
Day/regular holiday special day/regular holiday

Computation of 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.

Nothing shall be construed to eliminate or in any way diminish supplements or other employee benefits being
enjoyed at the time of promulgation of the Labor Code.

“Labor-only” contracting is restricted or prohibited to protect the rights of the workers. There is “labor-only”
contracting where the person supplying the workers to the employer does not have substantial capital or
investment in the form of tools, equipment, machineries, work premises, among others, and the workers recruited

2|CE – 318 Prepared By: Engr. Juniffen I. Tacadena

 Saint Mary’s University
School of Engineering, Architecture and Information Technology
Bayombong, Nueva Vizcaya

and placed by such persons are performing activities which are directly related to the principal business of the
employer. In such cases, the person or intermediary shall be considered merely as an agent of the employer who
shall be responsible to the workers in the same manner and extent as if the latter were directly employed by him.

E. Rest days and Holidays

Rest day refer to any rest period of not less than 24 consecutive hours after not more than 6 consecutive work days.
Holidays or Special Days refer to days classified as such by law or declared by competent public authority, whether
or not it falls on an employee’s work day or rest day.

Regular Holidays

• New Year’s day - January 01

• Maundy Thursday - movable dates
• Good Friday - movable dates
• Araw ng Kagitingan - April 09
• Labor Day - May 01
• Independence Day - June 12
• National Heroes Day - Last Sunday of August
• Bonifacio Day - November 30
• Christmas Day - December 25
• Rizal Day - December 30

Special Days

• All Saints Day - November 01

• Last Day of the Year - December 31

If there are two consecutive holidays, an employee may not be paid for both holidays if he absents himself from
work on the day immediately preceding the first holiday, unless he works on the first holiday, in which case he is
entitled for his holiday pay on the second holiday.

F. Leaves

The three types of leaves, which an employer is obliged to extend to its employee are:

• Service Incentive Leave – refers to a five-day leave with pay to which an employee is entitled after one year
of service. Unused SIL may be converted into cash at the end of the year of service, and the computation
shall be the salary rate at the time of conversion.

• Maternity Leave – leave granted to the occasional childbirth, abortion or miscarriage of a female member
of the SSS who has paid at least three monthly contributions in the 12-month period immediately preceding
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 childbirth, abortion or given
in advance by the employer, and subject to reimbursement by the SSS.

3|CE – 318 Prepared By: Engr. Juniffen I. Tacadena

 Saint Mary’s University
School of Engineering, Architecture and Information Technology
Bayombong, Nueva Vizcaya

• Paternity Leave – allows a male employee leave of seven days with full pay when his legitimate spouses
gives birth or suffers miscarriage. It shall be granted to the employee for the first four delivery of the
legitimate spouse.

G. Occupational Safety and Health

Workplaces considered hazardous where workers are:

• Exposed to dangerous environmental elements including ionization, radiations, chemicals, fire, flammable
substances, noxious components and the like.

• Where workers are engaged in construction work, logging, fire-fighting, mining, quarrying, blasting,
stevedoring, dock work, deep sea fishing and mechanized farming.

• Engaged in manufacture and handling of explosives and other pyrotechnic products.

• Exposed to heavy or power-driven machinery or equipment and tools.

The employers must provide workers with every kind of protective equipment and healthful working conditions.
Protection includes provision of:

• Appropriate seats, lighting and ventilation, passageways, exits and firefighting equipment.

• Separate facilities for men and women (i.e. comfort rooms, bathrooms)

• Appropriate personal protective equipment like gloves, goggles, respirators, etc.

• The services of a first-aider when the total number of workers are 50 or less.

• The services of a full-time registered nurse when the total number of workers exceeds 50 but not more
than 200.

• The services of a full-time registered nurse, a part-time physician or dentist and emergency clinic when the
total number of workers exceeds 200 but not more than 300.

• The services of a full-time registered nurse, a full-time physician and a dentist, and an infirmary or
emergency hospital with 1 bed capacity for every 100 employees in excess of 300.

• Where only a treatment room is provided, access to nearest medical/dental clinic located within 5km radius
from the workplace reachable within 25 minutes of travel.

• The engagement of an emergency health provider for the construction project site shall be considered as
having complied with the requirements of accessibility to the nearest hospital facilities.

• Construction signages must be provided to warn workers and the public of hazards existing in the
workplace. Signages must be posted in prominent positions at strategic locations and as far as practicable,
be in a language understandable to most of the workers employed.

4|CE – 318 Prepared By: Engr. Juniffen I. Tacadena

 Saint Mary’s University
School of Engineering, Architecture and Information Technology
Bayombong, Nueva Vizcaya

• All heavy equipment operators assigned to the project must be tested and certified in accordance with
standard trade test prescribed TESDA in coordination with its accredited organizations.

• All heavy equipment must be tested and certified with standards prepared by DOLE or its recognized
organizations prior to commissioning.

• To ensure that the Construction Safety and Health Program are observed, a construction safety and health
committee shall be formed to include:
a) Project Manager as Chairperson
b) General Construction Safety and Health Officer
c) Construction and Safety and Health Officer
d) Safety Representative for each subcontractor
e) Doctors, Nurses and other health personnel
f) Workers Representatives (minimum of 3)

• No person shall be deployed in a construction site unless he has undergone a safety and health awareness
seminar conducted by OSHS or by safety professionals or organizations accredited by DOLE. Every worker
shall receive instruction and training regarding the general safety and health measures common to
construction sites.

• All safety personnel shall have a 40-hour basic construction safety and health training course.

• In case of major accident resulting in death or permanent disability, the employer shall notify the DOLE
regional office within 24 hours from occurrence.

• The employer shall provide welfare facilities to ensure humane working conditions like potable water
supply, sanitary and washing facilities, suitable living accommodations, separate from men and women,
facilities for changing and drying work clothes, accommodation for meals and shelter.

• The cost of implementing a Construction Safety and Health Program shall be mandatory integral part of the
project’s construction cost reflected in her project’s tender and contract documents.

Note: ito ang kadalasang tinatake for granted ng mga contractors sa field natin, yung Construction Safety and
Health. Kaya para maiwasan ang mga aksidente sa construction, the DOLE require all Contractors to prepare and
Implement the Construction Safety and Health Program na nakapaloob doon lahat ng Safety and Health na may
kinalaman sa Project. Sa mga malalaking projects, kailangan rin ng isang Safety Office or Safety Engineer na siyang
incharge sa COSH.

5|CE – 318 Prepared By: Engr. Juniffen I. Tacadena