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Chapter 3: Conditions of

Employment and Leave Benets

Coverage:

-Proft and non-proft

Excluding:

1. Government Employees

2. Managerial Employees

- Management o

establisment or subdivision

or department

- !ustomarily and regularly

direct more tan 2

Employees- !an cange status o

employment o Employees"

and ire # fre Employees o

lo$er ran%

&. '(cers)Members o te

Managerial *ta+

- Management policies

- Exercise regular discretion

and ,udgment

. ield Personnel

- /$ay rom principal o(ce

- /ctual time o $or% cannot

be determined $it

reasonable certainty

0. Employers amily Members

- Member o amily

- ependent on Employer orsupport

3. omestic elpers)in personal

service o anoter

4. Paid by results

5ours o 6or%

7ncludes:

1. 5ours Employee is re8uired to

be at duty or prescribed

$or%place

2. /ll time Employee is su+ered orpermitted to $or%

How to Determine Hours of Work

1. /ll ours o $or% re8uired to

give to Employer regardless o

productivity" mental or pysical

exertion

2. 9est: eed not leave premises

*top $or%ing

&. 6or% done is necessary"

benefted Employer

6en Employee as no

replacement" counted as

$or% ours $it %no$ledge

o Employer or immediate

supervisor

. ;ime inactive because o

interruptions beyond control

- 9esumption o $or% re8uires

presence in premises

- 7nterval too brie to be

utili<ed or Employees

interest

Waiting time

1. 7ntegral part o $or%

2. 9e8uired by Employer to $ait

Lectures, Meetings, Training

ot counted i all are met:

1. 'utside $or%ing ours

2. =oluntary

&. o productive $or%



>!ompany outing or training not e8ual

to $or% i attendance is not

compulsory

Meal Period

1 our

ot $or%ing ours

ot compensable

Rest Period

!o+ee brea%s

0-2? mins

!ompensable $or%ing time

igt-*it i+erential

1? PM to 3 /M

@1?A o 9egular 5ourly 9ate

B959C

'vertime Pay

@20A o 9egular 5ourly 9ate

@&?A o 9egular 5ourly 9ate

during 5olidays

6en Meal Period D ';

1. 9e8uired to stand by or

emergency $or%

2. !alled to $or% during meal

period

6ee%ly 9est Period

Determination of Weekly Rest Periods

Employer decides Employeeagrees

- Employee may coose i

preerence is because o

religion

- otiy 4 days beore

- 7 pre,udicial to Employer"

preerred 9est ay t$ice a

$ee%" Employers coice

t$ice a $ee%

!ce"tion to #$%Hour Workweek

1. /greed upon

- Excess o ? ours is

considered ';

2. 5ealt personnel

a. !ities)municipalities $it 1

??? ???@ population

b. 5ospitals $it bed capacity

o 1??@

7ncludes:

1. 9esident pysicians

2. urses

&. utritionists

. ieticians

0. Parmacists

3. *ocial $or%ers

4. aboratory tecnicians

F. Paramedical tecnicians

. Psycologists

1?.Mid$ives

11./ll oter ospital)clinic

personnel

!ompressed 6or%$ee%

F ours in less tan 3 days

- o '; pay

ormal !ompressed

6or%$ee% is 0 days

9egular 5oliday



&' Regular Holidays

1. e$ Hear BIan. 1C

2. Maundy ;ursday

&. Good riday

. /ra$ ng Jagitingan B/pr. C

0. abor ay BMay 1C

3. 7ndependence ay BIun. 12C

4. ational 5eroes ay Blast

Monday o /ugustC

F. Koniacio ay Bov. &?C

. !ristmas ay Bec. 20C

1?.9i<al ay Bec. &?C

( Muslim Holidays

1. Eidul itr BEnd o 9amadanC

2. Eidul /da Beast o te

*acrifceC

Com"ensation

Entitled to 5oliday Pay even

i Employee does not $or%

May be made to $or%

(Double pay)

/bsent te day beore D ot

entitled

/bsent beore successive

olidays D ot entitled or

bot days

*pecial 5olidays

@&?A

@0?A on rest day

)"ecial Holidays:

1. /ll *aints ay Bov. 1C

2. ecember &1

&. inoy /8uino ay B/ug. 21C

*ervice 7ncentive eaves

9endered at least one year

o serviceL 0 days

*ervice !arge

F0A or Employees

10A or Management

- ;o ans$er or losses and

brea%ages

- May be given to managerial

Employees

ot less tan once every t$o

$ee%s or t$ice a mont $it

gaps o 13 days

7 abolised" sare sall be

integrated in $agesL average

montly sare or te last 12

monts

eave Kenefts

Maternity Leave

ualifcations:

1. &-mont contribution

2. otice to Employer

&. ull payment o Maternity

Keneft sall be advanced by

Employer $itin &? days rom

application

. irst deliveries

/mount o Maternity Keneft:1. ormal: 1??A o average daily

salary credit or 3? days

2. !aesarian: 1??A o average

daily salary credit or 4F days

/*!: *um o 3 igest montly

salary credit N 1F?



!omputation:

1. Exclude semester o

contingency" count 12 monts

bac%$ards starting rom mont

beore semester

2. 7dentiy 3 igest M*!s

&. Get /*!

. Multiply by:

a. 3? i normal delivery

b. 4F i caesarian

Paternity

4 days $it ull pay to all

married males or 1st deliveries by la$ul spouse

!onditions:

1. 5e is Employee at time o

delivery

2. !oabiting $it spouse

&. /pplied or leave $itin

reasonable time or period set by

company or !K/

. 6ie as given birt or su+ered

miscarriage

ot commutable to cas

Penalty or violation:

- Pp 20 ???

- &? days O x O 3 monts

Chapter 4: Waes! Benets! and

Bonuses

6age renumeration payable by

Employer or services rendered or to

be rendered by Employee

- May be fxed or based on results

or time- Ky result: !ompensation" no

absence o Employer-Employee

9elationsip *ould be in terms o money

air and reasonable value

*acilities

acilities can be deducted rom $ages

- Employer sould not proft rom

acility- *ubsidi<e &?AL educt 4?A

9e8uirements or eduction:

1. Proo tat suc acility is

customarily urnised by tetrade

2. Provision o deduction must be

accepted in $riting by

Employee&. Must be carged at air and

reasonable value

)u""lement

'ver and above te $ageL cannot be

deducted

+onus

/mount paid to Employees or industry

and loyalty $ic contributed to te

success o te business and made

possible te reali<ation o profts

/ct o generosity by Employer

!annot be demanded as a rigt

Management prerogative

6en Konus is Part o 6age:

1. /dditional compensation $ic

Employer provided $itout any

conditions or payment2. !ompany practice)policyL long

and regular concession

1&t Mont Pay



Given to 9an%-and-ile Employees $o

ave $or%ed or at least 1 mont in

te calendar year

- ot given to managerial

Employees except $en

Managerial Employee alreadyen,oys 1&t Mont Pay by

agreement or by company

practice- 7 1&t Mont Pay en,oyed is

greater tan 1&t Mont Pay

re8uired" it cannot be reduced

Exemptions rom 1&t Mont Pay:

1. Government" its subdivisions"

government-o$ned or

controlled corporations" andprivate subsidiaries o te

government2. Employers already paying 1&t

mont pay or more in a

calendar year&. Employers o omestic 5elpers

or people in personal service o

anoter. Employers o Employees paid

purely on commission"

boundary" or fxed price or aspecifc $or% Bpa%ya$C

>Jasambaays" under te Katas

Jasambaay" are entitled to 1&t

mont pay

E8uivalent to 1&t Mont Pay:

1. !ristmas Konus2. Midyear Konus&. !as Konus. 'ter bonuses e8uivalent to at

least 1)12 o basic annual salary

Minimum /mount o 1&t Mont Pay:

ot less tan 1)12 o total basic salary

earned $itin a calendar year

- Kasic *alary sall include all

renumerations paid or services

rendered except:1. !as e8uivalent o unused

leaves2. 'vertime premium&. igt-sit di+erential. 5oliday pay0. !ost o living allo$ance

B!'/C

>i included in te basic salary

computation by agreement or

practice" it cannot be removed

Paid on or beore ecember 2 o

every year

- Q may be paid beore te starto te regular scool year" Q on

or beore ec. 2- re8uency: based on agreement

or !K/

Resigned or Terminated m"loyees

Entitled to 1&t Mont Pay in

proportion to lengt o time

- rom time started during te

calendar year to termination

May be demanded upon termination

Payment o 6ages

Must be in legal tender or currency

ot considered as $age:

1. Promissory notes2. =oucers&. !oupons. ;o%ens

0. ;ic%ets3. !its- Proibited by la$ even $en

expressly re8uested by

Employee

Payment y C-eck

9e8uirements:



1. Kan% or encasment acility

$itin 1 %m radius2. Employer does not receive any

pecuniary beneft rom

engagement&. Employees given reasonable

time to $itdra$L i done during

$or%ing ours" compensable

B';C. 6ritten consent o Employees

Payment y .TM

9e8uirements:

1. 6ritten consent2. 9easonable time to $itdra$&. 9eceive $age every t$o $ee%s

. /;M $itin 1 %m radius0. Rpon re8uest o Employee"

Employer sall issue record o

payment o $ages" benefts"

bonuses" and deductions or a

period3. o additional expense and

diminution o benefts4. Employer is liable in case la$

and rules are not ollo$ed

Time of Payment

1. 'nce every t$o $ee%s2. 7ntervals not exceeding 13 days&. 7n case o ortuitous event" ater

te event. ot less tan once a mont

Kan%ruptcy

- Employees ave 1st preerenceL

sall be paid beore debtors and

government

;as% $or%er

- 2 $ee%s or 13-day intervals" in

proportion to $or% done- inal settlement must be

immediately made upon

completion

Place of Payment

Made at or near te place o

underta%ing

Payment in oter places valid $en:

1. Ky reason o deterioration o

peace and order or impendingemergency

2. ree transportation is provided

by Employer&. /nalogous cases

Payment in bars" nigt clubs" etc. is

not allo$ed except $en Employee is

employed in te same place

irect Payment o 6ages

Except $en:

1. / member o te Employees

amily is autori<ed in $riting2. /utori<ed by existing la$s

$en recogni<ed by Employee

troug !K/ or individual

autori<ation in $riting&. orce ma,eure" special

circumstances to be determined

by 'E

Proibitions 9egarding 6ages

1. 7ntererence in isposal o

6ages- 'bliged or compelled to buy

rom Employer" or any

store)person2. 6age eductions- Except $en:

a. 7nsuranceb. Rnion duesc. Payment to &rd Persond. Payment to Employer

&. Ma%ing eposits or oss oramage

- Except $en te ollo$ing

conditions are ollo$ed:a. Employee is responsible or

damageb. Employee is give reasonable

opportunity to so$ $y



deduction sould not be

madec. air and reasonable amountL

does not exceed actual

amount o damaged. ot more tat 2?A o $age

in a $ee%. 6itolding o $ages and

%ic%bac%s0. eduction to ensure

employment3. 9etaliatory Measures4. alse 9eporting

/ttorneys ees

1?A o amount recovered

orced to litigate

6en bad ait $as so$n by

Employer

9ecovery o $ages: does not re8uire

proo o bad ait to be entitled to

/ttorneys ees

Employer 9ecords

Payrolls

a. engt o timeb. 9atec. /mount due or regular $or%d. /mount due or overtimee. eductions. /mount actually paid

>Must be open to investigation or

verifcation by 'E

Time Records of !ecutives

Managerial Employees" members o

managerial sta+" and feld personnelare not re8uired to %eep individual

time records

- ot entitled to overtime pay

Place of Records

7n or about te place o $or%

Preservation

/t least & years rom date o last entry

Minimum 6age and 6age

etermination

/ational Wages and Productivity

Commission 0Commission1

*ets guidelines or determining

minimum $age

/pproves minimum $age set by

9egional Koard

Regional Tri"artite Wages and

Productivity +oard 0Regional +oard1

etermines minimum $age per region+asic Cas- Wage

Kenefts" supplements" allo$ances

cannot be deducted

Meals B&?-4?C may be deducted $it

$ritten autori<ation

+y results

ot belo$ minimum $age or F ours

o $or%

Proportion tereo or $or%ing less

tan F ours

)"ecial 2rou"

/pprentices" learners" and

andicapped

40A o *tatutory Minimum 6age

Moile or +ranc- 34ces

Mobile: Minimum $age in domicile oread o(ce

Kranc: Minimum $age o place

stationed in

Transferees



ot a valid ground or deduction o

$age

Mont-ly Paid vs Daily Paid

Montly: Paid or rest days and

olidays

- B&30 x rateC N 12

aily: ays actually $or%ed Bexcept or

olidaysC

- o $or%" no pay

6age 'rder

May increase minimum $age or grant

!'/

E+ective 10 days ater publication inat least one ne$spaper o general

circulation

9egional Koard sall conduct public

earings and issue notices to

interested parties

Remedy of Persons .ggrieved:

/ppeal $itin 1? calendar days rom

publication

Koard sall decide $itin 3? days

/ppeal does not stop implementation

o order

6age istortion

i+erence bet$een t$o classes or

positions is negated

!lassifcations establises distinctions

on relevant or legitimate basis

Correction of Wage Distortion

9e-establis signifcant or substantial

gap Bnot istorical gapC

Chapter ": #he $iht to %elf&

'raniation and Colletive

Barainin

T-e Rig-t to )elf%3rgani5ation

6ncludes:

1. ;e rigt to organi<e or a(liate

$it a labor union or determine

$ic i t$o or more unions in

an establisment to ,oin2. Peaceul concerted activities or

te ollo$ing purposes:a. !K/ troug representatives

o teir o$n coosingb. Mutual aid # protection or

protection" promotion" or

enancement o rigts and

interests&. ;e rigt not to ,oin" a(liate

$it" or assist labor unions

T-e following m"loyees s-all -ave

t-e rig-t to self%organi5ation for

collective argaining:

1. 9an%-and-fle2. *upervisory: Possesses te

autority to act in te interest

o EmployerL re8uires use o

independent ,udgment&. Employees o religious"

caritable" medical" or

educational institutions

>commercial" industrial" agricultural

enterprises" and government-o$ned #

controlled corporations $itout

original carters under te

!orporation !ode

>9an%-and-fle Rnions are or ran%-

and-fle Employees onlyL *upervisory

Rnions are or supervisors only

T-e following m"loyees s-all -ave

t-e rig-t to self%organi5ation for

mutual aid and "rotection:

1. /mbulant2. 7ntermittent&. 7tinerant. *el-employed0. 9ural



3. 6itout defnite Employer

T-ree Ty"es of Managers:

1. irst-line Management irect operating Employees

*upervisors

Eligible to orm unions

2. Middle Management BManagers

"er se1 irect oter managers and

operating Employees irect activities to

implement organi<ations

policies Kalance demands o

superiors and capacities o

subordinates '; eligible

&. ;op Management BManagers "er

se1 'verall management

Manages interaction o

organi<ation $it its

environment '; eligible

Con7dential m"loyees

!onfdential Employees are tose $o

by teir positions or nature o $or% are

re8uired to assist or act in a fduciary

manner to managerial employees

1. /ssist or act in a confdential

capacity2. ormulate" determine" or

e+ectuate management policies

in te feld o labor relations

ot eligible to orm labor unions

Chapter *: Wor+in Conditions of%peial ,roup of Employees!

%peial Wor+ers! and -liens

6omen

*acilities for Women:

1. Proper seats or $omen

2. *eparate toilet rooms"

lavatories" and)or dressing

rooms&. ursery. Minimum age and standards or

retirement and termination in

special occupations

/ig-t Work Pro-iition Re"ealed

Pro-iitions on t-e m"loyment of

Women

1. iscrimination- 6it respect to terms and

conditions o employment

solely on te account o sexa. o$er compensation

b. avoring males overemales in promotion"

training opportunities"

and scolarsip grants2. *tipulation against marriage

a. Marriage Bor non-marriageC

as a condition or

employmentb. Rpon marriage" deemed

resigned or separatedc. /ctually dismissed"

discarged" or pre,udiced

because o marriage&. iscarge on /ccount o

Pregnancya. iscarge on account o

pregnancy or $ile on leave

or confnementb. iscarge or reuse

admission upon return or

ear tat se may again be

pregnant. enial o benefts

- 'r discarge to preventen,oyment o benefts

0. iscarge on account o

complaint or testimony

/nti-*exual 5arassment /ct

May be committed in te ollo$ing

environments:



1. 6or%-related2. Education-related&. ;raining-related

Work%Related

!ommitted by someone $o asmoral ascendency over te oter in a

$or% environment

6en someone re8uires sexual avor

regardless o acceptance

1. avor made as a condition or:a. 5iring or employmentb. !ompensation" terms"

conditions" promotions" or

privilegesc. 9eusal $ould limit

EmployeeL $ould deprive"

discriminate" or diminis

employment opportunity2. avor $ould impair Employees

rigts and privileges under labor

la$s&. avor $ould result in an

intimidating" ostile" or

o+ensive environment

ducation or Training%Related

!ommitted by someone $it moral

ascendency over te oter against

tese persons:

1. 'ne under te care" custody" or

supervision o te o+ender2. 'ne $ose education" training"

apprenticesip" or tutorsip is

entrusted to te o+ender

!ommitted in te ollo$ing instances:

1. avor made as a condition orpassing" granting o onors" or

scolarsip2. avor results in a ostile"

intimidating" or o+ensive

environment

Persons liable:

1. Employer2. Employees&. Manager. *upervisor0. /gent o Employer3. ;eacer

4. 7nstructorF. Proessor. !oac1?.;rainer11./ny person $it moral

ascendency over te victim

/lso included:

1. /ny person $o direct or

induces anoter to commit te

sexual crime

2. 'ne $o cooperates $itout$ic it $ould not ave been

possible

Duty of m"loyer or Head of 34ce

1. Prevent and deter commission

o suc crimes2. Provide procedures or

resolution" settlement" or

prosecution

Prevention and Resolution

1. Promulgate rules prescribing

procedures or investigation and

sanctions- 7n consultation $it and

,ointly approved by parties- 7ncludes guidelines or

proper decorum2. !reate committee on decorum

and investigation&. isseminate or post a copy o

te /nti-*exual 5arassment /ct/liens

/ny alien see%ing employment or

Employer $o desires to engage an

alien or employment sall secure an

employment permit rom 'E



Employment Permit may be issued to

non-resident alien or Employer ater

determination o te non-availability o

a person in te Pilippines $o is

competent" $illing" and able at time o

application to perorm services or$ic te alien is desired

o alien see%ing employment may

enter te Pilippines $itout securing

Employment Permit

/lien $it non-$or%ing visa may only

be employed ater securing

Employment Permit

Pro-iition against Transfer

/lien sould not transer ,obs $itoutprior approval rom 'E

Must be deported ater serving

sentence

)umission of List

Employer $it aliens sall submit list

$itin &? days o e+ective date o te

!ode

*all include:

1. ame2. !iti<ensip&. oreign and local addresses. ature o employment0. *tatus o stay

'E te determines eligibility

Re8uirements for m"loyment Permit

.""lication

&9 !urriculum =itae(9 !ontract o Employment9 esignation o 2 ilipino

Rnderstudies

.""roval of D3L +ased 3n:

&9 !ompliance $it re8uirements(9 9eport o Kureau irector on

non-availability9 /ssessment as to $eter

employment $ould redound to

national interest#9 /dmissibility as certifed by

!ommission o 7mmigration and

eportation;9 9ecommendation by Koard o

7nvestments in preerred areas

o investment or in accordance

to imperatives o economic

development<9 Payment o Employment Permit

ee

Duration

Minimum o 1 year unless sooner

revo%ed by 'E

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