LABOR STANDARDS
-refers to that part of labor law which prescribes the minimum terms and conditions of employment which the
employer is required to grant to its employees.
COVERAGE
Employees in ALL establishments, whether operated for profit or not, are covered by the law on labor
standards.
WHO ARE EXCLUDED?
1. Government employees;
2. Managerial employees;
3. Other officers or members of a managerial staff;
4. Workers paid by results;
5. Non-agricultural field personnel; and
6. Members of the family of the employer.
NOTE:
It is a condition sine qua non for the application of labor laws that there is an employer-employee relationship
Four-fold test to determine the existence of employer- employee relationship
The selection and engagement of the employees;
The payment of wages;
The power of dismissal; and
The power to control the employees’ conduct.
BASIC PAY
Basic Salary means all the remuneration or earnings paid by an employer to a worker for services rendered on
normal working days and hours but does not include cost-of living allowances, profit- sharing payments,
premium payments, 13th month pay or other monetary benefits which are not considered as part of or integrated
into the regular salary of the workers.
The following are excluded from the computation of “basic salary”: payments for sick, vacation and maternity
leaves, night differentials, regular holiday pay and premiums for work done on rest days and special holiday
Hours of Work - include (a) all time during which an employee is required to be on duty or to be at a prescribed
workplace; and (b) all time during which an employee is suffered or permitted to work
Q: What is the total normal hours of work of an employee daily?
A: 8 hours
NO WORK, NO PAY PRINCIPLE
The “no work, no pay” or “fair day’s wage for fair day’s labor means that if the worker does not work, he is
generally not entitled to any wage or pay. The exception is when it was the employer who unduly prevented him
from working despite his ableness, willingness and readiness to work; or in cases where he is illegally locked
out or illegally suspended or illegally dismissed, or otherwise illegally prevented from working, in which event,
he should be entitled to his wage.
MEAL PERIODS
Every employer is required to give his employees, regardless of sex, not less than one
(1) hour time-off for regular meals.
Meal break is not compensable hours worked because the employee is free to do anything he wants. However, if
he is required to work while eating, he should be compensated therefor.
OVERTIME WORK
Services rendered in excess of an in addition to eight (8) hours on ordinary working days, whcih are the
prescirbed daily work period, is overtime work.
EMERGENCY OVERTIME WORK
GR: No employee may be compelled to render overtime work against his will. The reason is that this will
constitute involuntary servitude
EMERGENCY OVERTIME WORK
Exceptions:
1. When the country is at war or when any other national or local emergency has been declared by the
National Assembly or the CHief Exceutive;
2. When overtime work is necessary to prevent loss of life or property or in case of imminent danger to
public safety due to actual or impending emergency in the locality caused by serious accident, fire,
floods, typhoons, earthquake, epidemic or other disasters or calamities;
3. When there is urgent work to be performed on machines, installations or equipment, or in order to avoid
serious loss or damage to the employer or some other causes of similar nature;
4. When the work is ncessary to prevent loss or damage to perishable goods;
5. When the completion or continuation of work started before the 8th hour is necessary to prevent serious
obstruction or prejudice to the business or operations of the employer; and
6. When overtime work is necessary to avail of favorable weather or environmental conditions where
performance or quality of work is dependent thereon.
CAN OVERTIME PAY BE WAIVED?
No. The right to claim overtime pay is not subject to a waiver. Such right is governed by law and not merely by
the agreement of the parties.
Overtime cannot be offset by undertime because to allow off-setting would prejudice the worker.
NIGHT SHIFT DIFFERENTIAL PAY
Every employee shall be paid a night shift differential of not less than 10% of his regular wage for each hour
worked performed between ten o’clock in the evening and six o’clock in the morning.
COMPUTATION OF NIGHT SHIFT DIFFERENTIAL PAY
• Where night shift (10 p.m. to 6 a.m. work is regular work.
• On an ordinary day: Plus 10% of the basic hourly rate or a total of 110% of the basic hourly rate.
• On a rest day, special day or regular holiday: Plus 10% of the regular hourly rate on a rest day, special
day or regular holiday or a total of 110% of the regular hourly rate
• Where night shift (10 p.m. to 6 a.m. work is overtime work.
• On an ordinary day: Plus 10% of the overtime hourly rate on an ordinary day or a total of 110% of the
overtime hourly rate on an ordinary day
• On a rest day, special day or regular holiday: Plus 10% of the rovertime hourly rate on a rest day, special
day or regular holiday.
COMPUTATION OF NIGHT SHIFT DIFFERENTIAL PAY
• For overtime work in the night shift. Since overtime work is not usually eight (8) hours, the
compensation for overtime night shift work is also computed on the basis of the hourly rate.
• On an ordinary day: Plus 10% of 125% of basic hourly rate or a total of 110% of 125% of basic hourly
rate.
• On a rest day, special day or regular holiday: Plus 10% of 130% of regular hourly rate on said days or
total of 110% of 130% of the applicable regular hourly rate.
HOLIDAY PREMIUM
• Every worker shall be paid his regular daily wage during regular holidays, except in retail and service
establishments regularly employing less than ten (10) workers.
• Holiday pay is a one-day pay given by law to an employee even if he does not work on a regular
holiday. This gift of a day’s pay is limited to each of the twelve regular (also called legal) holidays. It is
not demandable for any other kind of nonworking day. Since there are twelve legal holidays in a year,
there are only twelve occasions when holiday pay should be paid, except that there are places where
Muslim holidays also have to be observed.
• Work performed on a legal holiday merits at least twice (200%) the daily wage rate of the employee.
REGULAR HOLIDAYS
COMPUTATION OF HOLIDAY PREMIUM FOR REGULAR HOLIDAYS
• If work is rendered on an employee’s regular workday
• If unworked - 100%
• If worked - 1st 8 hours - 200%
• Work in excess of 8 hours - plus 30% of hourly rate on said day
• If it is an employee’s rest day
• If unworked - 100%
• If worked - 1st 8 hours - plus 30% of 200%
• Work in excess of 8 hours - plus 30% of hourly rate on said day
SPECIAL NON-WORKING DAYS
COMPUTATION OF HOLIDAY PREMIUM FOR SPECIAL NON- WORKING HOLIDAYS
• If unworked
• No pay, except, if there is a company policy, practice, or collective bargaining agreement (CBA) which
grants payment of wages on special days even if unworked.
• If worked
• 1st 8 hours - plus 30% of the daily rate of 100%
• Work in excess of 8 hours - plus 30% of hourly rate on said day
• If falling on the employee’s rest day and if worked
• 1st 8 hours - plus 50% of the daily rate of 100%
• Work in excess of 8 hours - plus 30% of hourly rate on said day
EFFECTS OF ABSENCES ON THE COMPUTATION OF HOLIDAY PAY
Employees on leave of absence with pay - entitled to holiday pay when they are on leave of absence with pay.
Employees on leave of absence without pay on the day immediately preceding the regular holiday - may
not be paid the required holiday pay if they have not worked on such regular holiday.
Employees on leave while on SSS or employee’s compensation benefits - Employers should grant the same
percentage of the holiday pay as benefit granted by competent authority in the form of employee’s
compensation or social security payment, whichever is higher, if they are not reporting for work while on such
benefits.
EFFECTS OF ABSENCES ON THE COMPUTATION OF HOLIDAY PAY
When day preceding regular holiday is a non-working day or scheduled rest day - should not be deemed to
be on leave of absence on that day, in which case, employees are entitled to the regular holiday pay if they
worked on the day immediately preceding the non-working day or rest day.
13th Month Pay (P.D. 851)
Coverage: Only rank-and-file employees in the private sector, regardless of their position, designation, or
employment status and irrespective of the method by which their wages are paid are entitled to 13th month pay,
provided that they have worked for at least one (1) month during the calendar year. Managerial employees are
excluded.
Excluded:
1. The government and any of its political subdivisions, inculding government-owned and controlled
corporations, except those corporations operating essentially as private subsidiaries of the government.
2. Employers already paying their employees 13th month pay or more in a
calendar year or its equivalent at the time of the issuance of the Revised Guidelines.
3. Employes of those who are paid on purely commission, boundary, or task basis, and those who are paid
a fixed amount for performing a specific work, irrespective of time consumed in the performance
thereof.
13th Month Pay (P.D. 851)
• When should 13th month pay be paid?
• It must be paid not later than December 24 of every year.
• What is the minimum amount of the 13th month pay?
• The minimum 13th month pay should not be less than one- twelfth (1/12) of the total basic salary earned
by an employee within a calendar year.
LEAVES
Service Incentive Leave
Every covered employee who has rendered at least one (1) year of service is entitled to a yearly service
incentive leave of five (5) days with pay.
SERVICE INCENTIVE LEAVES
All employees are covered except:
1. Officers or members of amanegerial staff, if they perform the following duties and responsibilities:
• Primarily perform work directly related to management policies of their employer;
• Customarily and regularly exercise discretion and independent judgment;
• Regularly adn directly assist a proprietor or manegerial employee in the management of the
estatblishment or subdivision thereof in which he or she is employed; or (b) execute, under general
supervision, work along specialized or technical lines requiring special training, experience, or
knowledge; or (c) execute, under general supervision, special assignments and tasks; and
• Do not devote more than 20% of their hours worked in a workweek to activitiee which are not directly
and ckise related to the performance of work described in the 3 preceding paragraphs.
SERVICE INCENTIVE LEAVES
All employees are covered except:
1. Government employees, whether employed by the National Government or any of its political
subdivisions, including those employed in government-owned and/or controlled corporations with
original charters or created under special laws;
2. Persons in the personal service of another;
3. Managerial employees, if they meet all of the ff conditions:
• Their primary duty is to manage the establishment in which they are emplyed or of a department or
subdivision thereod;
• They customarily and regularly direct the work of two or more employees therein; and
• They have the authority to hire or fire other employees of lower rank; or their suggestions and
recommendations as to hiring, firing, and promotion, or any other change of status of other employees
are given particular weight.
SERVICE INCENTIVE LEAVES
All employees are covered except:
1. Field personnel and those whose time and performance are unsupervised by the employer, including
those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed
amount for performing work irrespective of time consumed in the performance thereof;
2. Those already enjoying this benefit;
3. Those enjoying vacation leave with pay of at least 5 days; and
4. Those employed in establishments regularly employing less than 10 employees
ARE UNAVAILED SIL COMMUTABLE TO CASH?
Yes. The service incentive leave is commutable to its money equivalent if not used or ehausted at the end of the
year.
MATERNITY LEAVE (RA 11210)
Coverage: All covered females, regardless of civil status, employment status, and the legitimacy of her child,
are entitled to maternity leave.
PERIOD OF MATERNITY LEAVE
1. Paid leave benefit granted to a qualified female worker in both the PUBLIC SECTOR and the
PRIVATE SECTOR, for the duration of:
• 105 days - in case of live childbirth, regardless of the mode of delivery
• Plus additional 15 paid days of paid leave for female worker qualified as solo parent
• There is option to extend for an additional thirty (30) days without pay
• Available for every instance of live childbirth, regardless of frequency
PERIOD OF MATERNITY LEAVE
2. Paid leave benefit granted to a qualified female worker in both the PUBLIC SECTOR and the
PRIVATE SECTOR, for the duration of:
➢ 60 days - for miscarriage and emergency termination of pregnancy
• Available for every instance of pregnancy, miscarriage or emergency termination of pregnancy,
regardless of frequency
MATERNITY LEAVE
A female worker entitled to maternity leave benefits may, at her option, allocate up to seven
(7) days of said benefits to the child’s father or alternate caregiver
PATERNITY LEAVE
Paternity leave covers a married male employee allowing him not to report for work for seven (7) calendar days
but continues to earn the compensation therefor, on the condition that his spouse has delivered a child or
suffered miscarriage for purposes of enabling him to effectively lend support to his wife in her period of
recovery and/or in the nursing of the newly-born child.
PATERNITY LEAVE
➢ Every married employee in the private and public sectors is entitled to a paternity leave of 7 calendar
days with full pay for the first 4 deliveries of the legitimate spouse with whom he is cohabiting.
➢ Paternity leave benefits are granted to the qualified employee after the delivery by his wife, without
prejudice to an employer allowing an employee to avail of the benefit before or during the delivery,
provided that the total number of days should not exceed 7 days for each delivery.
➢ Unavailed paternity leave is not convertible to cash
SOLO PARENT LEAVE (RA 8972)
➢ This is the leave benefit granted to a male or female solo parent to enable him/her to perform parental
duties and responsibilities where his/her physical presence is required.
➢ The solo parent leave shall not be more than seven (7) working days every year to a solo parent who has
rendered service of at least one (1) year, to enable him/her to perform parental duties and responsibilities
where his/her physical presence if required. This leave shall be non-cumulative.
WHO IS A SOLO PARENT?
➢ A woman who gives birth a result of rape and other crimes against chastity even without a final
conviction of the offender: Provided, That the mother keeps and raises the child;
➢ Parent left solo or alone with the responsibility of parenthood due to death of spouse;
➢ Parent left solo or alone with the responsibility of parenthood while the spouse is detained or is serving
sentence for a criminal conviction for a least one (1) year;
➢ Parent left solo or alone with the responsibility of parenthood due to phsycial and/or mental incapacity
of spouse as certified by a public medical practitioner;
➢ Parent left solo or alone with the responsibility of parenthood due to legal separation or de facto
separation from spouse for at least one (1) year, as long as he/she is entrusted with the custody of the
children;
➢ Parent left solo or alone with the responsibility of parenthood due to declaration of nullity or annulment
of marriage as decreed by a court or by a church as long as he/she is entrusted with the custody of the
children;
➢ Parent left solo or alone with the responsibility of parenthood due to abandonment of spouse for at least
one (1) year;
➢ Unmarried mother/father who has preferred to keep and rear her/his child/children instead of having
others care for them or give them up to a welfare institution;
➢ Any other person who solely provides parental care and support to a child or children;
➢ Any family member who assumes the resposnibility of head of family as a result of death, abandonment,
disappearance or prolonged absence of the parents or solo parent.
SOLO PARENT LEAVE
➢ A change in the status or circumstance of the parent claiming benefits under the law, such that he/she is
no longer left alone with the responsibility of parenthood, shall terminate his/her eligibility for these
benefits.
➢ In the event that the parental leave is not availed of, said leave shall not be convertible to cash unless
specifically agreen upon previ
