Internship Webinar — Philippine Labor Standards, Wages & Employee Benefits

Opening Program & Administrative Reminders

• Students must:
  • Rename Zoom username in the format School – Name – Degree Program – Internship Number.
  • Turn cameras ON and use the Ayala-provided virtual background (downloadable from Canvas ➜ Modules).
  • Wear business / corporate attire.
• Schedule adjustments
  • Today (3rd Saturday class): 9 AM joint session for Internship 1 & 2.
  • Next Saturday: 2 PM ‑ Internship 2 only.
• Attendance link released right after the session.
• Five-minute break before moving to breakout rooms.

ILAP / IELAP Organizational Chart

• Industry-Academic Linkage, Alumni & Placement (ILAP/IELAP)
  • Dir. Ms. Samantha Sadora – Director, IELAP (FEU Tech Schools)
  • Coordinators
  • Ms. Alyssa (LPT) – FEU Alabang
  • Ms. Lisa Ann S. Alimbujogin – FEU Diliman
  • Associates
  • Mr. Harley Jefferson S. Limaan – ILAP Associate & MC
  • Ms. Jennifer A. P. – Internship 1 Adviser
  • Ms. Alessandra Maras-Peña Verde – Internship 2 Associate
  • Support
  • Ms. Paulines Garcia – Partnerships Coordinator
  • Ms. Lovely Joy M. Lienas – Alumni & Placement Coordinator

ILAP Virtual-Office Schedule (take screenshot)

Guest Speaker & DOLE Background

• Mr. Lionel P. Soriano
  • Registered Nurse (Tarlac State Univ.)
  • Senior Labor & Employment Officer / Labor Inspector – DOLE (10 yrs)
  • Designations: Sheriff & SEnA Desk Officer (SEADO)
  • Speaker for Labor & Employment Education Services (LEES)
• Core DOLE Functions
  1. Promote gainful employment (job fairs, Gov’t Internship Program, “TUPAD” for displaced workers, etc.).
  2. Develop human resources (seminars on livelihood, productivity, labor-management relations).
  3. Protect workers & promote welfare (labor inspection on General Labor Standards & Occupational Safety & Health Standards – OSHS).
  4. Maintain industrial peace via tripartite councils (employers, employees, government).

Philippine Labor Code Essentials

A. Employment Relationship & Contracts

• Employment relationship = legal link between employer & employee.
• Written contract recommended; on Day 1 an employee may already be deemed regular in some Supreme Court rulings.

B. Classification of Employees

C. Hours of Work

• Normal workday: 8 hrs (Art. 83-84).
• Rest / meal break: 60 min (non-compensable).
• Typical schematic: $8\text{ hrs on duty}+1\text{ hr meal}=9\text{ hrs onsite}$
• Short rest pauses (5-20 min AM/PM) are company policy.
• Weekly rest day: ≥ 24 consecutive hours; employer should honor religious preference (Art. 91).

D. Wages & Wage-Related Benefits

1. Definition: Payment for services rendered (Art. 97).
2. NCR Daily Minimum Wage (W.O. ☑ 25, effective 17 Jul 2024)
   • Non-Agriculture/Industrial: ₱ 645
   • Agriculture: ₱ 610
   • Retail & service (≤ 15 workers) / Manufacturing (< 10 workers): ₱ 608
3. Holiday & Premium Pay
   • Regular Holiday (no work): $100\%$ of daily wage.
   • Work on regular holiday: $200\%$ (double pay).
   • Special Non-Working Day (worked): $150\%$ (100 + 50%). *Rule: “No Work, No Pay” unless company grants.
4. Overtime Pay (Art. 87)
   • Ordinary day OT: +25 % x hrly rate.
   • OT on rest day / special day / regular holiday: +30 %.
5. Night Shift Differential (Art. 86)
   • Work between 10 PM – 6 AM: +10 % of wage for the hours within window.
6. 13th-Month Pay (PD 851)
   • Coverage: all rank-and-file employees ≥ 1 month service.
   • Formula: $\frac{\sum \text{Basic Salary (Jan-Dec)}}{12}$
7. Modes of Wage Payment: Cash, Check, ATM, or recognized e-wallets (e.g., GCash).
8. Deductions only when: (a) required by law, (b) employee consent, or (c) court/administrative order.

E. Statutory Leave Benefits

F. Security of Tenure & Termination

• No dismissal except for just cause or authorized cause + due process.

1. Just Causes (Art. 297 & DO 147-15)

   • Serious misconduct, willful disobedience, gross & habitual neglect, fraud/breach of trust, crime vs company/persons, analogous causes.
   • Twin-Notice Rule: (a) Notice to Explain ➜ employee reply / hearing, (b) Notice of Decision.

2. Authorized Causes (Art. 298-299)

   • Installation of labor-saving devices, redundancy, retrenchment to prevent losses, closure/cessation, incurable disease (> 6 mos), lack of assignment (security guards ≥ 6 mos; contracted workers ≥ 3 mos).
   • Notice: ≥ 30 days prior to effectivity.
   • Separation Pay
     • Redundancy / labor-saving: $1$ month per year of service.
     • Retrenchment / closure / disease / lack of assignment: $0.5$ month per year of service.
     • Fractions ≥ 6 mos → count as 1 yr.

G. Retirement Pay (Art. 302, RA 7641)

• Optional: ≥ 60 yrs & ≥ 5 yrs service.
• Compulsory: 65 yrs.
• Statutory formula: $\text{Retirement Pay} = \text{Daily Rate} \times 22.5 \times \text{Years of Service}$
  • 22.5 = 15 days + 5 days (service incentive) + 1/12 of 13th-month.

H. Social Legislation Contributions

• SSS, PhilHealth, Employees’ Compensation (EC) – shared employer/employee.

I. Occupational Safety & Health (OSHS)

• Hazardous / Highly Hazardous industries: construction, mining, quarrying, blasting, stevedoring, mechanized farming, heavy-equipment ops, etc.
• Employer must provide:
  • PPE (helmets, masks, safety shoes, etc.).
  • Adequate lighting, ventilation, exits, fire-fighting equipment.
  • Separate CRs for men & women.
  • First-aid kits, medical supplies, periodic medical/dental services.

J. Employer & Employee Duties

• Employer: reasonable care, safe workplace, compliance with labor & OSH standards, good faith dealings.
• Employee: exercise skills with care, obey lawful orders, act in good faith & loyalty.

K. DOLE Contact

• Hotline: 1349 / (02) 8400-3918
• NCR Manila Field Office: 8-244-1318
• Website: www.dole.gov.ph

Formulas & Numerical Examples

1. 13th-Month Example
   • Total salary (Jan–Dec): ₱ 480 000.
   • $\frac{480\,000}{12}=40\,000$ (13th-month pay).
2. Overtime on Ordinary Day
   • Daily rate = ₱ 645 ➜ hourly = $\frac{645}{8}=80.63$.
   • OT premium = $80.63 \times 1.25 = 100.79$ per OT hour.
3. Separation Pay (Redundancy)
   • Daily Rate = ₱ 800; Tenure = 5 yrs + 6 mos (→ 6 yrs).
   • $800\times30=24\,000 \text{ (Monthly)}$
   • Separation = $24\,000 \times 6 = 144\,000$.
4. Retirement Pay (Optional @ 60, Daily=₱ 645, Service = 5 yrs)
   • $645 \times 22.5 \times 5 = 72\,562.5$

Ethical & Practical Implications Discussed

• Ensuring fair compensation and safe conditions equips students for the “outside world.”
• Knowledge of rights & obligations prevents exploitation and cultivates harmonious labor relations.
• Industrial peace achieved through proactive compliance and tripartite dialogue.

Webinar Wrap-Up

• Certificates of Appreciation awarded to Mr. Soriano & DOLE.
• Recording of the talk available; certificates emailed by ILAP.
• Q&A clarified minimum wage (₱ 645 vs ₱ 610/₱ 608) and termination categories.
• Students encouraged to apply lessons during internships and future managerial roles.