Conditions of Employment

&
Rest Periods
By:
Mariel D. Banosan
 Conditions of Employment
Article 82, Labor Code
General rule: Applies to all employees in all establishments and
undertakings, whether operated for profit or not.
Except: 6. Workers paid by results
1. Government employees 7. Field personnel
2. Managerial Employees 8. Members of the family of
3. Other officers or members of the employer
a managerial staff 9. Retail and service
4. Kasambahay establishments employing
less than 10 workers*
5. Persons in the personal
service of another
 Conditions of Employment
Compensable Hours Worked

“No Work, No Pay”

“A fair day’s wage for a fair day’s labor”
 Conditions of Employment
Compensable Hours Worked:
1. When an employee is required to be on duty or be at the employer’s
premises; and
2. When an employee is suffered or permitted to work.
 Conditions of Employment
Compensable Hours Worked
In the case of Union Carbide Labor Union v. Union Carbide
Philippines, Inc (1992), the Supreme Court emphasized that the
employer retains the management prerogative, whenever exigencies of
the service so require, to change the working hours of its employees.
 Conditions of Employment
Normal Hours of Work
The general rule is the total number of working hours shall not exceed
eight (8) hours. Any hours in excess thereof is considered overtime
work.
 Conditions of Employment
Work Day; Work Week
“Work day” means the twenty—four consecutive-hour period which
commences from the time the employee regularly starts to work.

“Work Week” is a week consisting of 168 consecutive hours or seven

consecutive 24-hour work days.
 Conditions of Employment
Hours of Work; Part-time Workers
Wages and allowances of part-time workers shall not be less than the
compensable time that they actually rendered work.

Part-time workers are not entitled to the benefits for the hours that they
did not render work.

“No Work, No Pay, No Allowance”

 Conditions of Employment
Broken Hours; Reduction of Eight-Hour
The normal 8 working hours do not always mean continuous and
uninterrupted 8 hours of work.

The employer, in its prerogative is not prohibited from reducing the 8-

hour normal working time provided that no corresponding reduction is
made on the wage or salary.
 Conditions of Employment
Compressed Work Week
When a normal workweek is reduced to less than six (6) days but the
total number of work-hours (48hours) per week remains.

Normal workday is increased to more than eight (8) hours but not to
exceed twelve (12) hours, without overtime premium.
 Conditions of Employment
Compressed Work Week; How to Avail
1. Express and voluntary agreement of majority of the covered
employees or their representatives; and

2. In consideration of health and safety matters as certified by the

accredited health and safety organization or practitioner.
 Conditions of Employment
Compressed Work Week; Effects
1. Work beyond 8 hours will not be compensable by overtime
premium;
2. Employees are entitled to meal periods of not less than 60 minutes;
and
3. Will not result in diminution of existing benefits.
 Conditions of Employment
Reduction of Working Days due to Losses
In order to prevent serious losses due to causes beyond the control of
the employer, reduction of working days is valid.

This is more humane and in keeping with sound business operation than
the outright termination of services or total closure of the enterprise.
 Conditions of Employment
Regular Working Days of Hospital or Clinic Personnel

When the hospital or clinic personnel have completed the 40-hour/5-day

workweek, they are entitled to a full weekly wage for seven (7) days.
 Conditions of Employment
Power Interruptions; Effects
Not exceeding 20 minutes More than 20 minutes

Compensable working hours Compensable when used

whether or not used productively
productively
 Conditions of Employment
Meal Periods

General Rule: Not less than 1 hour time-off for regular meals.
Employee shall be free to do anything he wants, except to work.
 Conditions of Employment
Meal Periods; Shortening Not Less than 20 minutes;
When Compensable
Not less than 20 minutes and is credited as compensable hours:
1. Non-manual work;
2. Regularly operates for not less than 16 hours a day;
3. Actual or impending emergencies; and
4. To prevent serious loss of perishable goods.
 Conditions of Employment
Meal Periods; Shortening Not Less than 20 minutes;
When Not Compensable
1. Employees voluntarily agree in writing;
2. Work does not involve strenuous physical exertion; and
3. The effectivity is for a temporary duration.
 Conditions of Employment
In the case of Sime Darby Pilipinas v. NLRC, where the employer
changed the meal period from 30 minutes (paid) to 1 hour (not paid), the
Supreme Court said that such new work schedule fully complies with
the daily work period of 8 hours considering that during the new meal
period of 1 hour, the employees are free to do whatever they want, and
are not required to work.
 Conditions of Employment
Night Shift Differential
When an employee is required to work between 10:00 p.m. and 6:00
a.m., he is entitled to 10% of his regular wage for each hour of work.
 Conditions of Employment
Overtime Work
Work rendered after or beyond the 8-hour work.

25% On ordinary day

30% + 30% On a rest day or on a special day
30% + 50% On a rest day which falls on a special day
30% + 100% On a regular holiday
30% + 160% On a rest day which falls on a regular holiday
 Conditions of Employment
Overtime Work
General Rule: No employee may be compelled to render an overtime work
against his will.
Exception:
1. Country is at war or in cases of national emergency;
2. When necessary to prevent loss of life or property;
3. There is urgent work to be performed;
4. Necessary to prevent loss of perishable goods;
5. Completion or continuation of work is necessary; and
6. Necessary to avail of a favorable weather.
 Conditions of Employment
Overtime Work; Some Principles
Overtime pay is NOT subject to waiver.
Undertime cannot offset overtime.
Seafarers are entitled to overtime pay.
Overtime pay cannot result to a wage distortion.
 Rest Periods
Weekly Rest Periods
At least 24 consecutive hours after every 6 consecutive normal work
days.

Employer’s Prerogative to Schedule Rest Period, except for religious

grounds.
 Rest Periods
Weekly Rest Periods; When Required to Work
1. In case of actual or impending emergencies or force majeure;
2. Urgent work to be performed;
3. In the event of abnormal pressure of work;
4. To prevent serious loss of perishable goods;
5. When the nature of work permits; and
6. When necessary to avail of favorable weather.
 Rest Periods
Weekly Rest Periods; Some Principles
1. Written notices;
2. Waiver of compensation for work on rest days is not valid; and
3. Rest days cannot be offset by regular workdays.
 Holidays
Regular Holidays

1. New year’s day; 7. Labor Day;

2. Maunday Thursday; 8. Independence Day;
3. Good Friday; 9. National Heroes Day;
4. Eidul Fitr; 10. Bonifacio Day;
5. Eidul Adha; 11. Christmas Day; and
6. Araw ng Kagitingan; 12. Rizal Day
 Holidays
Regular Holiday Pay; Some Principles
1. When regular holiday falls on a Sunday, the following Monday shall
not be a holiday, unless proclaimed.

2. When there are 2 successive regular holidays:

i. Employee will not be paid for both if he is absent on the day immediately
preceding the first holiday;
ii. If not withstanding the above, the employee works on the first holiday, he is
entitled to the second holiday.
 Holidays
Regular Holiday Pay; Some Principles
3. Two regular holiday falling on the same day:
i. If unworked, 200% of the 2 regular holidays; or
ii. If worked, 200% of the regular holidays plus premium of 100% for work on
that day for a total of 300% of the daily wage.
 Holidays
Holidays; Some Principles
1. Right to Holiday Pay of Teachers;
o Private teachers will not be paid for holidays during semestral break but shall be paid
for holidays Christmas break.

2. Right to Holiday Pay of Piece Workers;

o Holiday pay should not be less than his average daily earnings.

3. Right to Holiday Pay of Seasonal Workers; and

4. Right to Holiday Pay of Seafarers.
 Holidays
Holidays; Some Principles
Monthly paid workers are not excluded
Non-muslims are entitled to Muslim holiday pay
General elections is deemed a regular holiday, unless declared as
special
Offsetting of holiday work with work on regular days is not allowed.
 Holidays
Special Holidays

1. Ninoy Aquino Day;

2. All Saint’s Day;
3. Feast of Immaculate Concepcion; and
4. Last Day of the Year
 Holidays
Regular Holidays v. Special Holidays
Regular Holidays Special Holidays
Employee worked Paid 200% of his daily wage Paid additional compensation of
not less than 30% of his basic pay

Paid additional compensation of

not less than 50% of his basic
compensation if falls on his rest
day
Employee did not work Paid 100% of his daily wage “No work, no pay”
 Service Incentive Leave
Every employee who has rendered at lease 1 year of service is entitled
to a yearly service incentive leave of 5 days with pay.

Should start a year after commencement of service.

 Service Incentive Leave
Some principles
Kasambahays are now entitled to SIL
Part-time workers are entitled to the full benefit
Curious Animal Doctrine
 Service Charges
Coverage; Distribution
Establishments collecting service charges, such as hotels, restaurants,
lodging houses, etc.

85% - distributed equally among the covered employees;

15% - to management.
 13 Month Pay
th

Coverage; Distribution
All rank and file employees are entitled.
Kasamabahays are entitled.

Managerial employees are excluded, unless they are granted a contract

or a company policy or practice so permits.
 13 Month Pay
th

Minimum Period; Minimum Amount

The employee should have worked for at least 1 month.

Amount should not be less than 1/12 of the total basic salary earned by
an employee.
 13 Month Pay
th

Some Principles
 The commission, in order to be included in the computation, should
be part of the basic salary.
 Basic salary does not include allowances and other monetary benefits
which are not considered as part of the regular salary, unless the
collective bargaining agreement or company practice/policy permits.
Casual and seasonal employees are entitled to 13th month pay