ACYRFBT: Labor Law and SSS Law

Employees that are not covered by the Labor Code Standards

* Government employees

* Managerial employees

* Officers of the managerial staff

* Field personnel

* Persons in the personal service of another

* Domestic helpers

* Workers who are paid by results

* Members of the family of the employer who are dependent on him for support

Managerial Employees

Refer to those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof, and to other officers or members of the managerial staff.

Field Personnel

Shall refer to non-agricultural employees who regularly perform their duties away from the principal place of business or branch officer of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.

Not exceed 8 hours

The normal hours of work should ______________.

True

(True or False) Rest periods of short duration during working hours shall be counted as hours worked.

Not less than 60 minutes

The time allowance for meal periods.

Health Personnel

1. In a locality that has a population of at least 1M or in a hospital or clinic with a bed capacity of at least 100 regular hours of work is 8 hours a day for 5 days in a week.

2. Exception: when there are exigencies: the health personnel may be required to work for 6 days or 48 hours in a week, in which case they are entitled to additional compensation of 30% of their regular wage on the 6th day.

Nighshift Differential Pay

Refers to the additional compensation of not less than 10% of an employee's regular wage for every hour of work done between 10:00 PM and 6:00 AM, whether or not such period is part of the worker's regular shift.

Overtime Pay

Refers to the additional compensation for work performed beyond 8 hours.

25%

The overtime pay rate premium when work is rendered on the regular working day of the employee.

30%

The overtime pay rate premium when work is rendered on one's rest day or holiday.

Regular Wage

For purposes of computing overtime and other additional remuneration, this type of wage shall include the cash wage only, without deduction on account of facilities provided by the employer.

Work Day

Refers to the 24 hour period commencing from the time an employee regularly starts to work.

True

(True or False) Work in excess of the 8 hour shift must be within the same WORK day to be considered overtime.

True

(True of False) A compressed work week may be authorized when it is the EMPLOYEES THEMSELVES who proposed the compressed workweek.

Undertime not offset by overtime

Undertime work on any particular day shall not be offset by overtime work on any other day.

Emergency Overtime Work

Any employee may be required by the employer to perform overtime work in any of the following cases:

* When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive.

* When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity.

* When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damages to the employee or some other cause of similar nature.

* When the work is necessary to prevent loss or damage to perishable goods.

* Where the completion or continuation of the work stated BEFORE the eight hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer.

True

(True or False) The coverage of weekly rest periods and holiday/rest day pay do not apply to employees not covered Chapter III of the Labor Code.

Right to Weekly Rest Day

It shall be the duty of every employer, whether operating for profit or not, to provide each of his employees a rest period of NOT LESS THAN 24 CONSECUTIVE HOURS after every 6 consecutive normal work days.

Instances when employer may require work on a rest day

* In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity 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.

* To prevent loss or damages 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.

* Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.

30% of Regular Wage

The additional compensation rate given to an employee where he is made or permitted to work on his scheduled REST DAY.

30% of Regular Wage

The additional compensation rate given to an employee where he is made to work when the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled.

30% of Regular Wage

The additional compensation rate given to an employee where he is made to work on any SPECIAL HOLIDAY.

50% of Regular Wage

The additional compensation rate given to an employee where such holiday work falls on the employee's scheduled rest day.

Right to Holiday Pay

Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than 10 workers.

Twice the Regular Rate

The additional compensation rate given to an employee working on any regular holiday.

Regular Working Holidays

The following are regular working holidays:

1. New Year's Day - January 1

2. Maundy Thursday

3. Good Friday

4. Araw ng Kagitingan - April 9

5. Labor Day - May 1

6. Eid'l Fitr - Varies per year

7. Independence Day - June 12

8. Eid'l Adha - Varies per year

9. National Heroes Day - Last Monday of August

10. Bonifacio Day - November 30

11. Christmas Day - December 25

12. Rizal Day - December 30

12. The day designated by law for holding a general election

Situations when the employee is not entitled to holiday pay

1. If he was absent without pay on the day prior to a regular holiday.

2. If he was absent without pay on the day prior to successive regular holidays like Maundy Thursday and Good Friday.

3. If he was absent without pay on the day prior to his rest day or a special holiday that is followed by a regular holiday.

4. If he was absent without leave on the day prior to successive regular holidays but he worked on the first holiday, he is only entitled to holiday pay for the following day.

Regular Holiday

A type of holiday wherein such day is compensable even if unworked.

Special Holiday

A type of holiday wherein such day is not compensable if unworked.

Regular Holiday

A type of holiday wherein it is generally limited to the 10 enumerated in the Labor Code plus the two Muslim holidays.

Special Holiday

A type of holiday wherein it is not exclusive since a law or ordinance may provide for other special holidays.

Regular Holiday

A type of holiday wherein it is observed throughout the country.

Special Holiday

A type of holiday wherein it may be observed in only one locality.

Rate is twice if worked

The regular holiday wage rate.

130%

The special holiday wage rate.

Right to Service Incentive Leave

Every employee who has rendered at LEAST ONE YEAR OF SERVICE shall be entitled to a yearly service incentive leave of 5 days with pay.

5 days with pay

The number of days of a service incentive leave.

Exceptions to the right of service incentive leave

1. Those who are already enjoying the benefit herein provided.

2. Those enjoying vacation leave with pay of at LEAST 5 DAYS.

3. Those employed in establishments regularly employing less than ten employees or in establishments exempted from granting this benefit by the Secretary of Labor and Employment after considering the viability or financial condition of such establishment.

At least one year of service

Means for not less than 12 months, whether continuous or broken reckoned from the date the employee started working, including authorized absences and paid regular holidays unless the working days in the establishment as a matter of practice or policy, or that provided in the employment contract is less than 12 months, in which case said period shall be considered as one year.

True

(True or False) Part-time workers are entitled to the full benefit of the yearly 5 days of Service Incentive Leave.

Service Incentive Leave

Is a mandatory labor standard.

Vacation Leave/Sick Leave

Is a voluntary labor standard. It may result from employer's discretionary policy or CBA.

Service Incentive Leave

Intended to alleviate the economic condition of the workers for it acts as replacement for regular income that would not be earned during such instance.

Vacation Leave/Sick Leave

Intended to afford a laborer a chance to get a much needed rest to replenish his worn out energies and acquire new vitality to enable him to meet him to efficiently perform his duties and not merely to give him additional salary.

Service Incentive Leave

May not be waived.

Vacation Leave/Sick Leave

May be impliedly waived through acquiescence.

Service Incentive Leave

Commutable to cash.

Vacation Leave/Sick Leave

Can be made not commutable to cash.

Paternity Leave

Every married male employee in the private and public sectors shall be entitled to a PATERNITY LEAVE OF SEVEN (7) DAYS WITH FULL PAY for the first four (4) deliveries (including miscarriages) of the legitimate spouse with whom he is cohabiting.

Conditions for Paternity Leave

A. He is employed at the time of delivery of his child.

B. He has notified his employer of the pregnancy of his wife and her expected date of delivery (notification does not apply to miscarriages or abortion).

C. His wife has given birth, suffers a miscarriage or an abortion.

Availment for Paternity Leave

The paternity benefit set forth herein may be enjoyed by the qualified employee before, during, or after the delivery by his wife; provided, NOT LATER THAN SIXTY (60) DAYS AFTER THE DATE OF SAID DELIVERY.

True

(True or False) Paternity Leave is not convertible to cash.

Solo Parent Leave

Parental leave of not more than seven (7) working days every year shall be granted to any solo parent employee who has rendered service of at least one (1) year, which shall not be cumulative.

VAWC Victims' Leave

At any time during the application of any protection order, investigation, prosecution and/or trial of the criminal case, a victim of VAWC who is employed shall be entitled to a paid leave of upto 10 DAYS IN ADDITION TO OTHER PAID LEAVES.

True

(True or False) VAWC Victims' Leave is noncumulative and not convertible to cash.

Special Leave Benefits for Women

A woman employee having rendered continuous aggregate employment service of at least six (6) months for the last twelve (12) months shall be entitled to a special leave benefit of up to two (2) months with full pay based on her gross monthly compensation following surgery caused by GYNECOLOGICAL DISORDERS.

Wage

Shall mean the remuneration or earnings, however, designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done.

True

(True or False) Fair and Reasonable Value shall not include any profit to the employer, or to any person affiliated with the employer.

Fair Day's Wage for a Fair Day's Labor

The concept simply means that if there is no work performed by the employee, there can be no wage or pay unless the laborer was able, willing, and ready to work but was prevented by management or was illegally locked out, suspended or dismissed.

Facilities

Are items of expense necessary for the laborer's and his family's existence and subsistence. It is part of the wage and is deductible from it.

Supplements

Constitute extra remuneration or special privileges or benefits given to or received by the laborers over and above their ordinary earnings wages. It is independent of the wage and is not deductible from it.

Non-Diminution of Benefits

The rule provides that benefits being given to employees cannot be taken back or reduced unilaterally by the employer because the benefit has become part of the employment contract, written or unwritten.

Bonus

Is a supplement or employment benefit given under certain conditions, such as success of the business or greater production or output.

Bonus

It is an amount granted voluntarily to an employer for his industry and loyalty which is contributed to the success and realization of profits of the employer's business.

Bonus

Is not a demandable and enforceable obligation unless it was promised to be given without any conditions imposed for its payment in which case it is deemed part of the wage.

13th Month Pay

Refers to the additional income based on wage required by PD 851 which is equivalent to 1/12 OF THE TOTAL BASIC SALARY EARNED BY AN EMPLOYEE WITHIN A CALENDAR YEAR.

Payment of 13th Month Pay

Anytime not later than December 24.

Entitlement of 13th Month Pay

All rank and file employees regardless of their designation or employment status and irrespective of the method by which their wages are paid, are entitled to this benefit, provided, that they have worked for at least one (1) month during the calendar year.

True

(True or False) Free rice, electricity, cash, stock dividends, cost of living allowances cannot be valid substitutes for 13th month pay.

Social Security Law

(RA No. 1161, as amended by RA No. 8282, RA No. 11199 and RA No. 11210)

SSS

The Social Security System created by this Act.

Commission

The Social Security Commission

Employer

Any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business, industry, undertaking, or activity of any kind and uses there services of another person who is under his orders as regards the employment, except the Government.

Employee

Any person who performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such services, where there is an employer-employee relationship.

Self-Employed Professionals

Shall be both employee and employer at the same time.

Dependent

The legal spouse entitled by law to receive support from the member.

Dependent

The legitimate, legitimated, or legally adopted, and illegitimate child who is unmarried, not gainfully employed and has not reached twenty-one (21) years of age, or if over twenty-one (21) years of age, he is congenitally ill or while still a minor has been permanently incapacitated and incapable of self-support, physically or mentally.

Dependent

The parent who is receiving regular support from the member.

Compensation

All actual remuneration for employment, including the mandated cost of living allowance, as well as the cash value of any remuneration paid in any medium other than cash except the part of the remuneration received during the month in excess of the maximum salary credit.

Monthly Salary Credit

The compensation base for contributions and benefits as indicated in the schedule for Employee's Contributions.

Monthly

The period from one end of the last payroll period of the preceding month to the end of the last payroll period of the current month if compensation is on hourly,daily or weekly basis; if on any other basis, it shall mean a period of one month.

Contribution

The amount paid to the SSS by the employee and by his employer.

Employment

Any service performed by an employee for his employer. except:

1. Services where there is no employer-employee relationship.

2. Service performed in the employ of the Philippine Government or instrumentality or agency thereof.

3. Service performed in the employ of a foreign government or international organization, or their wholly-owned instrumentality. Provided, however, that this exemption notwithstanding, any foreign government, international organization or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with the Philippine Government for the inclusion of such employees in the SSS except those already covered by their respective civil service retirement systems.

4. Such other services performed by temporary and other employees which may be excluded by regulation of the Commission. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the service of said contractors.

Beneficiaries

The dependent spouse until he or she remarries, the dependent legitimate, legitimated or legally adopted, and illegitimate children, who shall be the primary beneficiaries of the member.

Dependent Illegitimate Children

Shall be entitled to fifty percent (50%) of the share of the legitimate, legitimated or legally adopted children. In the absence of the dependent legitimate, legitimated or legally adopted children of the member, his/her dependent illegitimate children, such beneficiary shall be entitled to one hundred percent (100%) of the benefits.

Dependent parents

In the absence of the legal spouse, legitimate children, and illegitimate children, shall be the secondary beneficiaries of the member.

True

(True or False) In the absence of all of the foregoing, any other person designated by the member shall be his/her secondary beneficiary.

Contingency

The retirement, death, disability, injury or sickness and maternity of the member.

Average Monthly Salary Credit

The result obtained by dividing the sum of the last sixty (60) monthly salary credits immediately preceding the semester of contingency by sixty (60), or the result obtained by dividing the sum of all the monthly salary credits paid prior to the semester of contingency by the number of monthly contributions paid in the same period, whichever is greater. Provided, that the injury or sickness which caused the disability shall be deemed as the permanent disability for the purpose of computing the average monthly salary credit.

Average Daily Salary Credit

The result obtained by dividing the sum of the 6 highest monthly salary credits in the twelve-month period immediately preceding the semester of contingency by 180.

Semester

A period of two consecutive quarters ending the quarter of contingency.

Quarter

A period of three consecutive calendar months ending on the last day of March, June, September, and December.

Replacement Ratio

The sum of twenty percent and the quotient obtained by dividing three hundred by the sum of three hundred forty and the average monthly salary credit.

Credited Years of Service

For a member covered prior to January 1985 minus the calendar year of coverage plus the number of calendar years in which six (6) or more contributions have been paid from January 1985 up to the calendar year containing the semester prior to the contingency.

For a member covered in or after January 1985, the number of calendar years in which six (6) or more contributions have been paid from the year or coverage up to the calendar year containing the semester prior to the contingency.

Member

The worker or the self-employed mandatorily covered by this Act.

Self-Employed

Any person whose income is not derived from employment.

Net Earnings

Net income before taxes plus non-cash charges such as depreciation and depletion appearing in the regular financial statement of the issuing or assuming institution.

Fixed Charges

Recurring expenses such as amortization of debt discount and rentals for leased properties, including interest on funded and unfunded debt.

1. All employees not over sixty years of age; and

2. Their employers

The compulsory coverage of SSS.