Based on the Philippine Labor Code

1. Rights and Responsibilities
of Employees Based on the
Labor Law of the
Philippines

2. Employer-Employee Relationship
The Power to Hire
The Power to Pay Wages
The Power to Control the Work
The Power to Fire

3. Types of Employees According to the PH
Laws
 Regular Employees
 Probationary Employees
 Fixed Term Employees
 Project Employees
 Casual Employees

4. CONDITIONS OF
EMPLOYMENT

5. Hours of Work
Coverage: rank-and-file employees of private
companies and non-government institutions (Art. 82)
Exceptions:
Managerial Employees
Domestic Helpers
Field Personnel
Employees of Their Family Businesses
Paid By Results Workers

6. Hours of Work (Art. 84)
all time during which an employee is required
to be on duty or to be at a prescribed
workplace
all time during which an employee is suffered
or permitted to work.

7. Hours of Work
Normal Hours of Work: 8 hours per day (Art.
83
6 days a week (Art. 91)
 1 rest day for every 6 consecutive work days
(Art. 91)

8. Give Me a Break

9. Hours of Work
5 – 20 minute Coffee Breaks (paid) (Section
7 Rule I of IRR Labor Code)
Waivable as per management prerogative
1 – at least 1 hour (60 minutes) Lunch Break
(unpaid)
Can be included as per company’s generosity

10. Hours of Work
Overtime Pay: Additional 25% of hourly pay
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, rendered 10 hours work today.
8 hours = 1,000.00
Hourly Rate (1,000 / 8) = 125 per hour
2 hours overtime = [125 + (125 * 25%)] * 2
= 312.50
Total Pay for Today: PhP 1,312.50

11. “Night Owl” Employee

12. Hours of Work
Night Differential Pay: Additional 10%,10 PM – 6 AM
Example: Juan dela Cruz, who earns PhP 1,000.00
daily, worked from 3 PM to 12 MN.
8 hours = 1,000.00
Hourly Rate (1,000 / 8) = 125 per hour
2 Hours Night Differential  (125 * 10%) * 2
= 25.00
Total Pay for Today  PhP 1,025.00

13. Hours of Work
Night Differential Pay: Additional 10%,10 PM – 6 AM
Example: Juan dela Cruz, who earns PhP 1,000.00
daily, worked from 9 PM to 6 AM.
8 hours = 1,000.00
Hourly Rate (1,000 / 8) = 125 per hour
7 Hours Night Differential  (125 * 10%) * 7
= 87.50
Total Pay for Today  PhP 1,087.50

14. Hours of Work
 Example: Juan dela Cruz, who earns PhP 1,000.00 daily,
worked from 5 PM to 5 AM.
8 hours = 1,000.00
Hourly Rate (1,000 / 8) = 125 per hour
4 Hours Night Differential 10 PM – 2AM
(125 * 10%) * 4 = 50.00
3 Hours Overtime and Night Differential 2 AM – 5PM
{125+[125 * (10%+ 25%)]} * 3 = 506.25
Total Pay for Today  PhP 1,556.25

15. Time-In Grace Period:
What Does the Law Say?

16. Hours of Work
Time In Grace Period is NOT required by law
but a management prerogative.

17. Flexi-Time:
What Does the Law Say?

18. Hours of Work
Flexi-time is NOT prohibited by law and a
management prerogative, provided that no
other provisions will be violated.

19. Requiring Work on a Rest Day:
Legal or Illegal?

20. Work During Rest Days
Answer: Legal under Special Circumstances
(Art. 92)
 In case of actual or impending emergencies caused by serious
accident natural disasters or calamities to prevent loss of life and
property, or imminent danger to public safety;
 In cases of urgent work to be performed on the machinery,
equipment, or installation, to avoid serious loss which the
employer would otherwise suffer;
 In the event of abnormal pressure of work due to special
circumstances, where the employer cannot ordinarily be
expected to resort to other measures;

21. Work During Rest Days
Answer: Legal under Special Circumstances
(Art. 92)
 To prevent loss or damage to perishable goods;
 Where the nature of the work requires continuous operations and the
stoppage of work may result in irreparable injury or loss to the
employer; and
 Under other circumstances analogous or similar to the foregoing as
determined by the Secretary of Labor and Employment

22. Work During Rest Days or Special Non-
Working Holidays
Additional 30% to the daily wage
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, worked during his rest day
1000 * 130% = PhP 1,300.00
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, worked on a special non-working
holiday
1000 * (130%) = PhP 1,300.00

23. Work During Rest Days and Special
Non-Working Holidays
Additional 50% to the daily wage
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, worked during his rest day which
happened to be a special non-working holiday
1000 * 150% = PhP 1,500.00

24. Special Non-Working Holidays
 EDSA People Power Revolution Anniversary
February 25*
 Black Saturday April 8
 Ninoy Aquino Day August 21
 All Saints' Day November 1
 Feast of the Immaculate Conception of Mary
December 8
 Last Day of the Year December 31

25. Special Non-Working Holidays
 Additional Special (Non-Working) Day January 2*
 Additional Special (Non-Working) Day November
2*
 Chinese New Year
 Islam Holidays (Eid’l Adha and Eid’l Fit’r)
 Sandwiched Days (ex. October 31, 2022)

26. Work During Special Working Holiday
No Additional Compensation
 i.e. November 2, 2022 and December 24, 2022 as
declared by PRRD
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, worked on a special working
holiday
PhP 1,000.00

27. Work During Rest Days and Special
Working Holidays
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, worked during his rest day which
happened to be a special working holiday
1000 + (1000 * 30%) = PhP 1,300.00

28. Regular Holidays
 New Year’s Day – January 1
 Araw ng Kagitingan - April 9
 Maundy Thursday
 Good Friday
 Labor Day – May 1
 Independence Day - June 12

29. Regular Holidays
 National Heroes Day - last Monday of August*
 Bonifacio Day - November 30
 Christmas Day - December 25
 Rizal Day - December 30

30. Work During Regular Holidays
2x of the daily wage, except for those retail
and service establishments with less than 10
employees
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, worked during a regular holiday
1000 * 2 = PhP 2,000.00

31. Work During Double Regular Holidays
3x of the daily wage, except for those retail
and service establishments with less than 10
employees
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, worked during double regular
holidays
1000 * 3 = PhP 3,000.00

32. Work During Rest Days and Regular
Holidays
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, worked during his rest day which
happened to be a regular holiday
(1000 * 200% * 130%) = PhP 2,600.00

33. Work During Rest Days and Double
Regular Holidays
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, worked during his rest day which
happened to be double regular holidays
(1000 * 300% * 130%) = PhP 3,900.00

34. Work During Rest Days and Double
Regular Holidays
Example: Juan dela Cruz, who earns PhP
1,000.00 daily, worked during his rest day which
happened to be double regular holidays, and
with a 2-hour overtime.
(1000 * 300% * 130%) = PhP 3,900.00
(125 * 2 * 300% * 130% * 130%) = PhP 1,267.50
 3,900.00 + 1,267.50 = 5,167.50

35. Wage Payment
 Form: Legal Tender only – no promissory notes, vouchers,
tickets, tokens, chits, gift certificates (Art. 102)
 Time: Once in every 2 weeks or twice a month with an
interval not exceeding 16 days (Art. 103)
 Place: at or near the workplace (Art. 104)
 Mode: Direct Payment except in force majeure or
employees’ death (Art. 105)

36. Prohibitions on Wages
 Non-interference in disposal of wages (Art. 112)
 Wage Deduction (Art. 113) except:
 Insurance with the company with employees’ consent
 Union dues
 Authorized by DOLE Secretary
 Limitations– payment of loss or damage only after the employee’s side
was heard and established clear grounds of the accountability. (Art. 115)
 Withholding of wages and kickbacks (Art. 116)
 Retaliatory Measures (Art. 118)

37. Leaves and Offsetting
 Service Incentive Leaves (Art. 95)
 Availed only after 1 year of service
 5 paid leaves
 In excess, out of company generosity

38. Maternity Leave
 Sec. 14-A of Republic Act No. (“R.A.”) 1161 (Social Security
Law), as amended by R.A. No. 7322, R.A. No. 8282 and R.A.
No. 11210
 105 Calendar Days – Normal or Caesarean Delivery
 60 Calendar Days – Miscarriages or Emergency Termination of
Pregnancy
 + 30 Days of Leave Without Pay
 +15 Days for Solo Parents With Pay

39. Maternity Leave
 Requirements
Payment of at least 3 months within the 12-month period
preceding the semester of childbirth or miscarriage
Properly notified her employer of her pregnancy and probable
date of childbirth

40. Paternity Leave
 7 Calendar Days (Not Working Days)
 Requirements
Married to the Pregnant Woman
Cohabiting with the Pregnant Woman unless in special justifiable
circumstances
Up to 4th Child only

41. Solo Parent Leave
 7 Working Days
 Requirements
At least 6 months in service (Expanded Solo Parent Act)
Solo Parent ID issued by the DSWD

42. Special Benefit Leave for Women
 Magna Carta for Women
 Female Surgeries for Gynecological Disorders
 Up to 2 Months of Paid Leaves
 Requirements
At least 6 months of continuous aggregate service for 12 months
prior the surgery
Certification by a competent physician

43. VAWC Leave
 Violence Against Women and Children (“VAWC”) Act (R.A. No.
9262)
 Purpose: Medical Check-up, Protection Order, Court
Appearances and other VAWC-related cases
 Up to 10 Days of Paid Leaves
 Requirement: Certification from the Punong Barangay,
prosecutor, or clerk of court that there is a pending action under
this law

44. Additional Leaves Granted by the
Employer
 Not required by Law
 Out of Company’s Generosity
 Examples: Wedding Leave, Bereavement Leave, Study Leave,
Summer Vacation Leave, Christmas Leave

45. Employee Benefits
 5 Service Incentive Leaves (unless the company has more)
 Other Legal Leaves
 SSS (GSIS)
 PhilHealth
 Pag-Ibig
 13th Month

46. 13th Month vs. Christmas Bonus
13th Month
 Required by Law
 1/12 of monthly salary (less
absences)
 on or before Dec. 24
 Non-taxable up to PhP 90K
Christmas Bonus
 Not required by Law but the root
concept of 13th month pay
 Any amount as per company’s
generosity
 In Cash or In Kind
 Non-taxable up to PhP 90K

47. NOTES
LEAVE != WORK-FROM-HOME (Republic Act No.
11165 Telecommuting Law)
OVERTIME != OFFSET (Art. 88)
Prohibition against elimination or diminution of
benefits (Art. 100)

48. Employment Termination
 Termination by Employer
 Just Cause (Art. 282) – i.e. serious misconduct, willful disobedience,
negligence of duties, crime (due process)
Authorized Cause (Art. 283) – redundancy, retrenchment,
installation of technology, closure (entitled to separation pay)
 Voluntary Resignation (Art. 285)
Render at least 30 days before exit unless with just cause (e.g.
mistreatment of employers) that can be implemented
immediately

49. Employment Termination
Suffering Disease (Art. 284)
Work might worsen his condition
Fellow Employees may be put to risk
Untreatable disease within 6 months

50. Employment Termination
Separation Pay
One-half OR One month salary for every year of service,
whichever is higher
A fraction of at least 6 months is considered 1 year

51. Employment Termination
Separation Pay
Example: Juan dela Cruz, with a salary of PhP 20K,
worked for ABC for 8 months and got retrenched
 One month salary 20,000 versus One-half month for
every year of service (8 months is rounded off to 1 year)
10,000
Decision: PhP 20,000.00

52. Employment Termination
Separation Pay
Example: Juan dela Cruz, with a salary of PhP 20K,
worked for ABC for 9 years and 6 months and got
retrenched
 One month salary 20,000 versus One-half month for
every year of service (9 months is rounded off to 1 year)
50,000
Decision: PhP 50,000.00

53. Employment Termination
Suspensions are a punishment due to policy violation
thus, unpaid.
Preventive suspensions are not a punishment but an
allowable time to relieve the employee from work that
may affect or cause prejudice during investigation.

54. Employment Termination
Preventive suspensions
30 days - unpaid
 Extension after 30 days – paid
Dismissal – removal from service (due process)
Reinstatement – return to post without diminution of
benefits and privileges

55. Employment Termination
WHEN IN DOUBT, THE LAW IS IN FAVOR OF THE
LABOR (EMPLOYEE).
LAW SUPERSEDES ANY CONTRACT.

56. THANK YOU!