Labor Standards Preliminary Exam

Social Justice

Is the promotion of the welfare of all the people, the adoption by the government of measures calculated to insure economic stability of all the component elements of society thru the maintenance of proper economic equilibrium in the interrelations of the members of the community, constitutionally, thru the adoption of measures legally justifiable, or extra constitutionally, thru the exercise of the power of the government, based on the time-honored principle of salus populi est suprema lex

Labor Standards

The minimum requirements prescribed by existing laws, rules, and regulations and other issuances relating to wages, hours of work,   allowances, and other monetary and welfare benefits, including those set by occupational safety and health standards.

Labor Relations

• Relationship between the employer and employees

• Mechanisms by which the terms and conditions of employment are negotiated and, adjusted, and enforced

• Interactions and processes on how rights and duties are exercised, how agreements are reached, and how workplace relationship is enhanced

Welfare Legislation

These are welfare benefits provided for by law in case of displacement, among others. This is also founded on Social Justice as well.

Section 6 of R.A. 8042: Recruitment and Placement

Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract services, promising or advertising for employment abroad, whether for profit or not, when undertaken by a non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines: Provided, That any such non-licensee or non-holder who, in any manner, offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged

Apprentice

• Is a worker who is undergoing on-the-job practical training supplemented by related theoretical instruction in an "___________" occupation.

• The goal is to provide a systematic, long-term training program that enables an individual to acquire a specific skilled trade or occupation.

• More than three months but not exceeding six months

• Allowance must not be less than 75% of the applicable minimum wage

Learner

• A worker hired as a trainee in a semi-skilled or other industrial occupation that is "non-apprenticeable." The occupation can be learned through practical on-the-job training in a relatively short period.

• This program aims to provide practical training for semi-skilled jobs where no experienced workers are available, and the employment of learners is necessary to prevent the curtailment of job opportunities.

• Must not exceed three months

• Allowance must not be less than 75% of the applicable minimum wage

Person with Disability

• is a person "suffering from restriction of different abilities, as a result of a mental, physical, or sensory impairment, to perform an activity in the manner or within the range considered normal for a human being.

• The primary objective of the law is to provide for the rehabilitation, self-development, and self-reliance of ____ and their full integration into the mainstream of society.

• Entitled to the same terms, conditions, compensation, and benefits as a non-disabled worker performance of the job for which they are being trained

The Contract of Employment

A relationship premised on voluntary agreement

The “Employee” agrees to render some work or service in favor of the “Employer”

In consideration of wages or salaries under reasonable rules and regulations

1. Selection

2. Payment

3. Dismissal

4. Control

The Four-Fold Test in Employer-Employee Relationship

• Managerial

• Supervisory and Confidential Employees and Members of Managerial Staff

• Rank and File Employees

Classification of non-agricultural workers as to the nature of responsibilities as defined in Book III of the Omnibus Rules Implementing the Labor Code

• Regular

• Casual

• Seasonal

• Probationary

Classification as to Tenureship

• Apprentice

• Learner

• Handicap

• Minors

• Homeworkers

• Working Scholars

• Domestic Servants

Special Workers

• Government Employees

• Managerial Employees if;

1. Their primary duty is the management of the establishment

2. They direct the work of two or more employees

3. They have the authority to hire or fire employees of lower rank

• Officers or Members of a Managerial staff if;

1. Working directly related to the management policies of their employer

2. Regularly exercise discretion and independent judgment; (Regularly Assist the Proprietor, Execute Special Training, Experience, or Knowledge, and Execute Special Assignments and Tasks)

• Domestic Servants

• Workers who are paid by results, like takay, pakiao, or task basis

• Non-Agricultural Personnel who regularly perform their duties away from the branch office of the employer

The provisions of the rule of hours of work shall apply to all employees in all establishments and undertakings, whether operated for profit or not, except to those specifically exempted under section 2 hereof;

Normal Hours of Work

• Not to exceed 8 hours a day

• 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

Waiting Time

• If waiting is an integral part of work, or the employee is required or engaged to wait.

• If an employee is required to remain on call in the employer’s premises or so close thereto that he/she cannot use the time effectively and gainfully for his/her own purpose.

1. Outside of the regular work hours

2. Voluntary

3. Employee does not perform productive work

NOT working time if the following conditions are met:

1. Non-Manual Work in Nature

2. Establishment Regularly operates not less than 16 hours a day

3. Urgent work to be performed on machinery, equipment, or installations

4. Prevent a serious loss of perishable goods

Exceptions where a compensable meal break of not less than 20 minutes. may be given:

Not less than 24 consecutive hours after every 6 consecutive normal workdays

Weekly Rest Periods

Flexible Work Arrangements

Refer to alternative arranged schedules other than the traditional or standard work hours.

1. Compressed Workweek

2. Reduction of Workdays

3. Rotation of Workers

4. Forced Leave

5. Broken-Time Schedule

6. Flexi-Holidays Schedule

Kinds of Flexible Work Arrangements

Compressed Workweek

Refers to one where the normal workweek is reduced to less than six days, but the total number of work hours of 48 hours per week shall remain.

Reduction of Workdays

Refers to one where the normal workdays per week are reduced, but should not last for more than six months

Rotation of Workers

Refers to one where the employees are rotated or alternately provided work within the workweek

Forced Leave

Refers to one where the employees are required to go on leave for several days or weeks utilizing their leave credits if there are an

Broken-Time Schedule

Refers to one where the work schedule is not continuous but the work-hours within the day or week remain

Flexi-Holidays Schedule

Refers to one where the employees agree to avail the holidays at some other days provided there is no diminution of existing benefits as a result of such arrangement

Republic Act No. 9178

Barangay Micro Business Enterprises

(BMBEs) Act of 2002

This act encourages the formation and growth of barangay micro business enterprises by granting them incentives and other benefits.

It is defined as any business enterprise engaged in the production, processing, or manufacturing of products, including agro-processing, as well as trading and services, with total assets of not more than P3 million.

Payment by check or through ATM

Forms of Payment

Not less often than once every 2 weeks or twice a month at intervals not exceeding 16 days

But, if the job is paid by results and takes more than two weeks to finish, workers must still be paid every 16 days based on how much work they’ve already completed.

Time of Payment

At or near the place of undertaking

Payment in another place is allowed only on the following instances:

1. Payment cannot be near the place of work due to deterioration of peace and order

2. The employer gives free transportation to employees back and forth

Place of Payment

Any bar, drinking establishments, massage clinic, dance hall, or other similar places in where games are played with stakes of money or things representing money

No employer shall pay his employees in ___________________________

1. Non-Interference in Disposal of Wages

2. Withholding of Wages

3. Deduction to Ensure Employment

4. Retaliatory Measures

5. False Reporting

Prohibitions on Wages and Non-Diminution of Benefits

The Principle of Non-Diminution of Benefits

Any benefit and supplement being enjoyed by employees cannot be reduced, diminished, discontinued or eliminated by the employer

Benefits and Supplement

Are compensations given to employees in addition to regular salaries or wages. Some are legally required, e.g., social security benefits, Medicare, retirement benefits, maternity benefits, service incentive leave, etc. Other benefits are offered by the employer as an incentive to attract and retain employees, as well as increase employee morale and improve job performance.

Supplements

Constitute extra remuneration or special privileges or benefits given to or received by the laborers over and above their ordinary earnings or wages. 

Facilities

Are items of expense necessary for the laborer’s and his family’s existence and subsistence so that by express provision of law (Sec. 2[g]), they form part of the wage and when furnished by the employer are deductible therefrom, since if they are not so furnished, the laborer would spend and pay for them just the same

1. Authorized by law or in case of court order

2. With the written authorization of the employees for payment to a third person and the employer agrees to do so

The employer should not make any deductions from wages of employees except;

1. Employee is clearly shown to be responsible for the loss or damage

2. Employee is given reasonable opportunity to show cause why deduction should not be made

3. Amount of deduction is fair and reasonable and not exceed the actual loss or damage

4. Deduction from salaries does not exceed 20% of the employee’s wage

Deposits/Deductions for Loss or Damages

Overtime Pay

additional compensation for work performed beyond 8 hours

Premium Pay

Additional compensation for work performed within 8 hours on a special day or rest day

• Ninoy Aquino Day — Monday nearest Aug. 21

• All Saints Day — November 1

• Last Day of the Year — December 31

National Special Days (RA 9492)

Holiday Pay

Payment of regular daily wage for any unworked regular holiday

Equivalent to 25% of the hourly rate of 100% or total of 125% per hour

Overtime pay for work on an ordinary day

Equivalent to 30% of the hourly rate of 130% or a total of 169% per hour

Overtime pay for work on rest days or non-working special holidays

Equivalent to 30% of the hourly rate of 150% or a total of 195% per hour

Overtime pay for work on rest days, which are also non-working special holidays

Equivalent to 30% of the hourly rate of 200% or a total of 260% per hour

Overtime pay for work on legal (regular) holidays

Equivalent to 30% of the hourly rate of 260% or a total of 338% per hour

Overtime pay for work ono legal (regular) holidays falling on employee’s rest day

Stipulated Overtime Rates

Generally, the premium pay for work performed on the employee’s rest days or on special non – working holidays or legal (Regular) holidays days are included as part of the regular rate of the employee in the computation of overtime pay for any overtime work rendered on said days, especially if the employer pays only the minimum overtime rates prescribed by law. The employees and the employer, however, may stipulate in their individual or collective agreement the payment of overtime rates higher than those provided by law and exclude the premium payments in the computation of overtime pay.

New Years day - January 1

Maundy Thursday - Movable Date

Good Friday - Movable Date

Araw ng Kagitingan - Monday nearest April 9

Labor Day - Monday Nearest May 1

Independence Day - Monday nearest June 12

National Heroes Day - Last Monday of August

Bonifacio Day - Movable nearest Nov 30

Eidul Fitr - Movable Date

Christmas Day - December 25

Rizal Day - Monday nearest December 30

Regular Holidays RA 9492