MENU

1.  HOW MUCH IS THE MINIMUM WAGE IN METRO MANILA?

      For the summary of current regional daily minimum wage rates, log on at http://nwpc.dole.gov.ph/.

 

2. WHAT IS THE BASIS FOR ENTITLEMENT TO COLA?

       A worker who is paid the basic pay, whether he worked or not, is entitled to the COLA. 

 

3. WHAT IS THE NORMAL HOURS OF WORK IN A DAY?

     The normal hours of work in a day is 8.

 

4. IS THERE A WEEKLY REST DAY FOR AN EMPLOYEE?

     There is a rest day of not less than 24 consecutive hours or 1 day for every 6 days of work which should be scheduled by the employer upon consultation with the employees.

 

5. HOW LONG IS THE MEAL PERIOD IN A DAY?

      Meal period is not less than 60 minutes or 1 hour time-off for regular meals of employees which is non-compensable. Rest periods or coffee breaks running from 5 to 20 minutes shall be considered compensable working time.

 

6. WHAT IS HOLIDAY PAY?

     Holiday pay refers to payment of the regular daily wage for any unworked regular holiday.For the list of regular holidays, log in at dole.gov.ph/pages/view/9

 

 7. WHAT IS THE CONDITION SO THAT AN EMPLOYEE WILL BE ENTITLED TO HOLIDAY PAY?

     He/She should be present on the workday immediately preceding the regular holiday; or

     He/She should be on leave of absence with pay on the day immediately preceding the regular holiday.

 

8.  HOW CAN AN EMPLOYEE BE ENTITLED TO THE TWO (2) SUCCESSIVE REGULAR HOLIDAYS?

    An employee can be entitled to two (2) successive regular holidays, like Holy Thursday and Good Friday if he/she works or is on leave of absence with pay on the day immediately preceding the first holiday.

 

9. HOW MUCH IS THE HOLIDAY PAY OF AN EMPLOYEE?

      For any unworked regular holiday, 100% of the employee’s daily wage rate (Basic pay + COLA).

      For work performed on a regular holiday, plus 100% or a total of 200% of the employee’s daily wage rate (Basic pay + COLA).

 

10. WHAT IS PREMIUM PAY?

       Premium pay refers to the additional payment for work within 8 hours on rest days or special days. For list of special days, log in at dole.gov.ph/pages/view/9

 

11. HOW MUCH IS THE PREMIUM PAY OF AN EMPLOYEE?

       Plus 30% of the daily basic rate or a total of 130% for work performed on rest day or special day.

       Plus 50% of the daily basic rate or a total of 150% for work performed on special day falling on the employee’s rest day.  

       Plus 30% of the daily basic rate or a total of 260% for work performed on a regular holiday falling on the employee’s rest day.

 

12. WHAT IS OVERTIME PAY?

       Overtime pay refers to the additional pay for work performed in excess of 8 hours a day.

 

13. HOW MUCH IS THE OT PAY OF AN EMPLOYEE?

       Plus 25% of the hourly rate for work performed in excess of 8 hours on ordinary day.

       Plus 30% of the hourly rate for work performed in excess of 8 hours on rest day, special day or regular holiday.

 

14. WHAT IS NIGHT SHIFT DIFFERENTIAL?

        Night shift differential refers to the additional compensation for work performed from 10:00 O’clock in the evening to 6:00 O’clock in the morning.

 

15. HOW MUCH IS THE NIGHT DIFFERENTIAL OF AN EMPLOYEE?

        Plus 10% of the hourly rate for work between 10:00 O’clock in the evening and 6:00 O’clock in the morning.

 

16. WHAT ARE THE LEAVE BENEFITS THAT AN EMPLOYEE IS ENTITLED TO UNDER EXISTING LAWS?

       a. 5 days service incentive leave with pay for employee who has rendered at least 1 year of service. (Article 95 of the Labor Code, as amended)

       b. Maternity Leave with pay of 60 days for normal delivery and 78 days for caesarian section delivery for every pregnant employee in the private sector, whether married or unmarried.  A female employee should be an SSS member and must have paid at least 3 monthly contributions within the 12-month period.  (RA 1161, as amended by RA 8282)

       c. 7 days Paternity Leave with pay for all married male employees in the private sector regardless of status of  employment, to allow the husband to lend support to his wife during her period of recovery and/or in nursing her newborn child, provided he is: (RA 8187)

        1.    An employee at the time of the delivery of his child;

        2.    Cohabiting with his spouse at the time that she gives birth or suffers a miscarriage;

        3.    Applied for paternity leave with his employer within a reasonable period of time; and

        4.    His wife has given birth or suffered a miscarriage.

     d. 7 days Solo Parent Leave with pay is granted to a solo parent to enable him/her to perform parental duties and responsibilities where physical presence is required provided he/she has: (RA 8972)

        1.    Rendered at least 1 year of service, whether continuous or broken which includes authorized absences and paid regular holidays;

        2.    Notified his/her employer that he/she will avail himself/herself of it, within a reasonable period of time; and

        3.    Presented Solo Parent Identification Card, which may be obtained from the DSWD office of the city or municipality where he/she resides.

      e. 10 days Leave with pay for Victims of Violence Against Women and their Children (VAWC) is granted to women employees who are victims of physical, sexual, psychological harm or suffering, or economic abuse. The leave benefit shall cover the days that the woman employee has to attend to medical and legal concerns, provided that: (RA 9262)

            The victim woman employee presents to her employer a certification from the barangay chairman (Punong Barangay) or barangay kagawad or prosecutor or the Clerk of Court that an action relative to the matter is pending.

        f. Special Leave for Women of maximum 2 months with full pay who have rendered continuous aggregate employment service of 6 months for the last 12 months, following surgery caused by gynecological disorders. (RA 9710) 

 

 17. WHEN CAN A WOMAN EMPLOYEE AVAIL OF SPECIAL LEAVE BENEFITS?

        A woman employee regardless of age and civil status, can avail of special leave benefits after she has undergone surgery due to gynecological disorder without prejudice to an employer allowing her to receive her pay before or during the surgery.

 

18. WHAT ARE SERVICE CHARGES?

        Service charges refer to the amount collected by hotels, restaurants and similar establishments.

 

19. WHO ARE ENTITLED TO SERVICE CHARGES?

        85% of the total of service charges shall be given to all rank-and-file employees and 15% may be retained by management to answer for losses and breakages and for distribution to managerial employees.

 

20. WHAT IS THE FREQUENCY OF DISTRIBUTION OF SERVICE CHARGES?

        It shall be distributed once every 2 weeks or twice a month at intervals not exceeding 16 days.

 

21. WHO ARE ENTITLED TO 13TH MONTH PAY?

        All rank and file employees are entitled to receive 13th month pay regardless of the nature of their employment and irrespective of the methods by which their wages are paid, provided they worked for at least one (1) month during a calendar year.

 

22. HOW MUCH IS THE REQUIRED 13TH MONTH PAY?

       The amount of 13th month pay shall at least be 1/12 of the total basic salary earned for the year which shall n include all earnings paid by his/her employer for services rendered but does not include allowances and other monetary benefits such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night shift differential, holiday pay and COLA.

 

23.  WHEN SHOULD THE 13TH MONTH PAY BE GIVEN?

        It should be given to the employees not later than December 24 of every year.

 

 24. WHAT IS RETIREMENT PAY?

        It is the amount given an employee who has reached the age of 60 years for optional retirement and 65 years old for compulsory and who has served the company for at least 5 years in the service.

 

25. HOW IS THE RETIREMENT BENEFITS COMPUTED?

       Minimum retirement pay = 22.5 days x daily rate x number of years of service

• Equal Work Opportunities for All

 

     The State shall protect labor, promote full employment, provide equal work opportunity regardless of gender, race, or creed; and regulate employee-employer relations.

      Male and female employees are entitled to equal compensation for work of equal value and to equal access to promotion and training opportunities. Discrimination against female employees is unlawful. It is also unlawful for an employer to require a condition of employment that a woman employee shall not get married, or to stipulate expressly or tacitly that a woman employee shall be deemed dismissed upon marriage.

     The minimum age of employment is 18 years for hazardous jobs, and 15 years for non-hazardous jobs. But a child below 15 maybe employed by parents or guardians in a non-hazardous job if the employment does not interfere with the child's schooling.

 

 • Security of Tenure

     Every employee shall be assured security of tenure. No employee can be dismissed from work except for a just or authorized cause, and only after due process.

     Just Cause refers to any wrongdoing committed by an employee including:

  1. serious misconduct
  2. willful disobedience of employers' lawful orders connected with work
  3. gross and habitual neglect of duty
  4. fraud or willful breach of trust
  5. commission of crime or offense against the employer, employer's family member/s or representative
  6. other analogous cases

      Authorized Cause refers to an economic circumstance not due to the employee's fault, including:

  1. the introduction of labor-saving devices
  2. redundancy
  3. retrenchment to prevent losses
  4. closure or cessation of business

     Due Process in cases of just cause involves:

  1. notice to employee of intent to dismiss and grounds for dismissal
  2. opportunity for employee to explain his or her side
  3. notice of decision to dismiss

      In authorized causes, due process means written notice of dismissal to the employee specifying the grounds, at least 30 days before the date of termination.

     The inability of a probationary employee to meet the employer's prescribed standards of performance made known to him or her at the time of hiring is also a just cause for dismissal.

 

 • Work Days and Work Hours  

     Work Day refers to any day during which an employee is regularly required to work. Hours of Work refer to all the time an employee renders actual work, or is required to be on duty or to be at a prescribed workplace. The normal hours of work in a day is 8 hours. This includes breaks or rest period of less than one hour, but excludes meal periods, which shall not be less than one hour.

      An employee must be paid his or her wages for all hours worked. If all or any part of his or her regular work hours falls between 10:00 p.m. to 6:00 a.m., a covered employee shall be entitled to a night shift pay in addition to his or her  pay for regular work hours. If he or she works for more than 8 hours in one day, he or she shall be entitled to overtime pay.

 

 • Weekly Rest Day  

     A day-off of 24 consecutive hours after 6 days of work should be scheduled by the employer upon consultation with the workers.

 

 • Wage and Wage-Related Benefits  

     Wage is the amount paid to an employee in exchange for a task, piece of work, or service rendered to an employer. This includes overtime, night differential, rest day, holiday and 13th month pay. It also includes the fair and reasonable value of board, lodging and other facilities customarily furnished by the employer.

      Wage may be fixed for a given period, as when it is computed hourly, daily or monthly. It may also be fixed for a specified task or result. If wage is for a fixed period, the minimum wage for a regular 8-hour workday shall not be lower than the minimum daily wage applicable to the place of work as determined by the Regional Tripartite Wage and Productivity Board having jurisdiction over workplace.

      If wage is paid by result, the worker shall receive at least the prescribed minimum wage for 8 hours of work. The amount may be increased or reduced proportionately if work is rendered for more or less than 8 hours a day.

      An employer cannot make any deduction from an employee's wage except for insurance premiums with the consent of the employee, for union dues, or for withholding taxes, SSS premiums and other deductions expressly authorized by law.

 

 • Payment of Wages

      Wages shall be paid in cash, legal tender at or near the place of work. Payment may be made through a bank upon written petition of majority of the workers in establishments with 25 or more employees and within one (1) kilometer radius to a bank. Payment shall be made directly to the employees.

      Wages shall be given not less than once every two (2) weeks or twice within a month at intervals not exceeding 16 days.

 

 • Employment of Women  

     Nightwork prohibition unless allowed by the Rules:

  • in industrial undertakings from 10PM to 6AM
  • in commercial/non-industrial undertakings from 12MN to 6AM
  • in agricultural undertakings, at night time unless given not less than 9 consecutive hours of rest

      Welfare facilities must be installed at the workplace such as seats, separate toilet rooms, lavatories, and dressing rooms.

      Prohibition against discrimination with respect to pay (i.e. equal pay for work of equal value), promotion, training opportunities, study and scholarship grants.

 

 • Employment of Children  

     Minimum employable age is 15 years. A worker below 15 years of age should be directly under the sole responsibility of parents or guardians; work does not interfere with child's schooling/normal development.

      No person below 18 years of age can be employed in a hazardous or deleterious undertaking.

 

 • Safe Working Conditions  

      Employers must provide workers with every kind of on-the-job protection against injury, sickness or death through safe and healthful working conditions.

     Jobs may be hazardous or highly hazardous. Hazardous jobs are those which expose the employee to dangerous environment elements, including contaminants, radiation, fire, poisonous substances, biological agents and explosives, or dangerous processes or equipment including construction, mining, quarrying, blasting, stevedoring, mechanized farming and operating heavy equipment. If you need further information on the provisions of the OSH Standards, please click here (OSH Standards) and LCP, Book IV

 

 • Right to Self-Organization and Collective Bargaining  

     The right to self-organization is the right of every worker, free of any interference from the employer or from government, to form or join any legitimate worker's organization, association or union of his or her own choice. Except those classified as managerial or confidential employees, all employees may form or join unions for purposes of collective bargaining and other legitimate concerted activities. An employee is eligible for membership in an appropriate union on the first day of his or her employment.

      Collective Bargaining involves two parties:

  1. the representative of the employer
  2. a union duly authorized by the majority of the employees within a bargaining unit called exclusive bargaining agent.

     It is a process where the parties agree:

  1. to fix and administer terms and conditions of employment which must not be below the minimum standards fixed by law
  2. to set a mechanism for resolving their grievances

      The result of collective bargaining is a contract called collective bargaining agreement (CBA). A CBA generally has a term of five years. The provisions of a CBA may be classified as political or economic. Political provisions refer to those which define the coverage of the CBA and recognize the collective bargaining agent as the exclusive representative of the employees for the term of the CBA. Economic provisions refer to all terms and conditions of employment with a monetary value. Economic provisions have a term of five years but may be renegotiated before the end of the third year of effectivity for the CBA.

 

 • EC Benefits for Work-Related Contingencies  

     The Employees' Compensation Program is the tax-exempt compensation program for employees and their dependents created under Presidential Decree No. 626 which was implemented in March 1975. The benefits include:

  • Medical benefits for sickness/injuries
  • Disability benefits
  • Rehabilitation benefits
  • Death and funeral benefits
  • Pension benefits

 * If you have questions regarding the subjects presented herein, please click here.(ECC Website)


• What does  safety and health in the workplace mean?

     Safety refers to the physical or environmental conditions of work which comply with prescribed Occupational Safety and Health (OSH) Standards and which allow the workers to perform the job without or within acceptable exposure limit to hazards. Occupational safety also refers to practices related to production and work process.

     Health means a sound state of the body and mind of the workers that enables the worker or employee to perform the job normally.

• What does OSH Standards mean? 

     OSH Standards are mandatory rules and standards set and enforced to eliminate or reduce occupational safety and health hazards in the workplace.

• What is the purpose of OSH Standards?

     OSH Standards aim to provide at least the minimum acceptable degree of protection that must be afforded to every worker in relation to the working conditions and dangers of injury, sickness or death that may arise by reason of the worker's occupation. The provision of OSH Standards by the State is an exercise of police power, with the intention of promoting the welfare and well-being of the workers.

• What are covered by the General OSH Standards?

     All establishments, workplaces and other undertakings are covered, including agricultural enterprises whether operating for profit or not, except:

     Residential places exclusively devoted to dwelling purposes.

• What does right to safe and healthful conditions of work mean? 

     It means that the worker shall be assured of effective protection against the danger of injury, sickness or death through safe and healthful working conditions.

• What is the minimum standard on safety and health in the workplace?

     The OSH Standards provide that every company shall keep and maintain its workplace free from work hazards that are likely to cause physical harm to the workers or damage to property. Thus, the worker is entitled to be provided by the employer with:

  • Appropriate seats, lighting and ventilation;
  • Adequate passageways, exits and fire fighting equipment;
  • Separate facilities for men and women;
  • Appropriate safety devices like protective gears, masks, helmets, safety boots, coats or first-aid kits;
  • Medicines, medical supplies or first-aid kits;
  • Free medical and dental services and facilities.

• What other safety requirements should employers provide their employees?

     Employers must provide their employees with the following instruments and/or working stations:

  • Appropriate protective equipment and clothing such as overall head coverings, goggles, gloves aprons and respirators;
  • A properly designed exhaust system and waste disposal, local exhaust or general ventilation to keep toxic fumes or gases, away from workers' breathing zone;
  • Adequate number of fire extinguishers in the workplace;
  • Designated safe smoking and welding areas far from combustible, flammable or explosive materials, containers filled with explosives or flammable substances, and containers that have held explosives or flammable materials;

• What safety measures must be observed within the premises of establishments

     Establishments must observe the following safety measures:

  • Building premises shall have adequate fire, emergency or danger signs and safety instructions of standard colors and sizes visible at all times;
  • Other visible signs that may be needed to direct the driver of motorized vehicle such as STOP, YIELD, and DO NOT ENTER, properly positioned within the compound of the establishment shall be used to increase safety especially during the night;
  • Handicapped employees shall be restricted only to designated workplaces. As far as practicable and feasible they shall be provided with facilities for safe and convenient movement within the establishment;
  • Good housekeeping shall be maintained at all times through cleanliness of building, yards, machines, equipment, regular waste disposal, and orderly arrangement of process operations, storage and filing materials;
  • Adequate dressing rooms, locker rooms, comfort rooms and lavatories separate for male and female workers shall be provided.

• Who enforces OSH Standards?

  The Secretary of Labor and Employment, through the Regional Director or his other authorized representative, enforces the OSH Standards in the exercise of visitorial and enforcement powers.

• What is visitorial power?

     Visitorial power refers to the authority to conduct inspections or investigations in the premises of an employer at any time of the day or night whenever work is being undertaken. This is necessary to determine violations or to enforce the rights of workers under the Labor Code. Under this power, the employer may be required to submit reports and other documents to determine any violation.


• What is enforcement power?

     Enforcement power refers to the authority of the Secretary or the Regional Director to order an erring employer, after due notice and hearing, to comply with labor standards and issue a writ of execution in case of non-compliance. If the violation poses grave and imminent danger to the health and safety of workers, suspension or cessation of the operations may be effected  within 24 hours from the issuance of the order.

• How are these Standards enforced?

     These standards are enforced through the inspectorate system. Thus, every employer shall provide to the Secretary or to  his/her duly authorized representative access to its premises or records at any time of the day or night whenever  there is work to determine and effect compliance.

     Every establishment or workplace shall be inspected at least once a year. However, special inspection visits may be authorized by the Regional Office to investigate work-related accidents, occupational illness or dangerous occurrences, conduct surveys, follow-up inspection recommendations, or to conduct investigations or inspections upon request of an employer, worker or labor union in the establishment.

• If a worker or representative of workers or any concerned person believes that such a violation of the OSH Standards exists which threatens with physical harm or poses imminent danger to life, what shall he do to correct the danger?

     The said worker or workers’ representative shall request the RO for an inspection of their area by giving full particulars or details regarding such violation or danger.

• What does the Regional Office do in such a case?

     The Regional Office evaluates the report and conducts a special inspection or investigation immediately in the subject establishment. The complainant is notified in writing of the outcome of such investigation.

• What is considered hazardous workplace?

     A workplace is deemed hazardous if:

 

  • The nature of the work exposes workers to dangerous environmental elements, contaminants or work conditions, including ionizing radiation, chemicals, fire, flammable substances, noxious components, and the like;
  • The workers are engaged in construction work, logging, fire-fighting, mining, quarrying, blasting, stevedoring, dock work, deep-sea fishing and mechanized farming;
  • The workers use or are exposed to heavy or power-driven machinery or explosive powder-actuated equipment;
  • The workers are engaged in the manufacture or handling of explosives and other pyrotechnic products;
  • The workers use or are exposed to biological agents such as bacteria, viruses and other parasites.

• What are the duties and responsibilities of the employers and the employees in relation to enforcement and compliance with OSH Standards in the workplace?

DUTIES OF THE EMPLOYERS

  • Adopt administrative policies on safety in accordance with the provisions of the Standards;
  • Report to the Regional Director or his/her duly authorized representative the policies adopted and the safety organization established;
  • Submit reports to the Regional Director or his/her duly authorized representative once in every three months on the safety performance, safety committee meetings and its recommendations and measures taken to implement the recommendation;
  • Act on recommended safety measures;
  • Provide access to appropriate authorities.

DUTIES OF THE EMPLOYEES

  • Follow safety policies;
  • Report unsafe conditions and practices to the Supervisor;
  • Serve as member of the Health and Safety Committee;
  • Cooperate with Health and Safety Committee;
  • Assist government agencies in the conduct of safety and health inspection.

• What is a Safety and Health Committee?

     A Safety and Health Committee is a group of employees or workers and management that plans and makes policies in all matters pertaining to safety and health in the workplace. All establishments are required to have a Safety and Health Committee.

• When shall an establishment organize a Safety and Health Committee?

     In every workplace, a Safety and Health Committee shall be organized within sixty days after the Standards take effect, and for new establishments, within one month from the date business starts operating. In both cases the Safety and Health Committee shall reorganize every January of the following year:

• What are the types and composition of a Safety and Health Committee?

     The types and composition of the Safety and Health Committee shall be organized according to the number of employees or workers in a workplace. To view RULE 1040, please click here

• What are the duties of the Safety and Health Committee?

     Safety and Health Committee shall:

  • Plan and develop accident prevention programs in the workplace;
  • Inspect workplace to detect unsafe conditions;
  • Review reports of inspection, results of accident investigations and implementation of accident prevention program;
  • Conduct safety meetings at least once a month;
  • Submit reports to the manager/owner on its meetings and activities;
  • Provide necessary assistance to government inspecting authorities in the proper conduct of activities relating to enforcement of the provisions of the Standards;
  • Train workers in safe work habits and procedures;
  • Develop and maintain a disaster contingency plan and organize such emergency service units as may be necessary to handle disaster situations pursuant to the Emergency Preparedness Manual for Establishments of the Office of Civil Defense

click!

 

What is “13th month pay”?

  It is a mandatory benefit provided to employees pursuant to Presidential Decree No. 851 which requires employers to grant 13th month pay to all its rank and file employees.

 

What is “bonus”?

 Bonus is an amount granted to an employee in excess of what the law requires as a reward or incentive for achieving a goal and/or contributing to the success of the employer’s business. Unlike 13th month pay, a bonus is given out of the employer’s generosity and is not a demandable and enforceable obligation, unless when it has been made part of the wage or made the subject of an express agreement.

 

Who are covered or entitled to the 13th month pay?

 All rank-and-file employees who have worked for at least one (1) month during the calendar year, are entitled to receive 13th month pay regardless of the nature of their employment and irrespective of the methods by which their wages are paid. 

 

Who are rank-and-file employees?

 All employees not considered managerial employees are considered rank-and-file employees.  A managerial employee is one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees, or to effectively recommend such managerial actions.

 

Are there employers who are exempted from paying 13th month?

 Yes.  The following employers are exempted from paying 13th month pay under PD 851:

 a)  The government and any of its political subdivisions, including government-owned and controlled corporations, except those corporations operating essentially as private subsidiaries of the Government;

 b)   Employers who are already paying their employees 13th month pay or more in a calendar year or its equivalent at the time of the issuance of PD 851;

 c)   Employers of persons in the personal service of another in relation to such workers; and

 d)   Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing specific work, irrespective of the time consumed in the performance thereof, except those workers who are paid on piece-rate basis, in which case the employer shall grant such workers the required 13th month pay.

 

How is 13th month pay computed?

 The 13th month pay shall not be less than 1/12 of the total basic salary earned by an employee within a calendar year. To illustrate:

  Total basic salary earned for the year  =  proportionate 13th month pay

                                             12 months

 

Are maternity leave benefits included in the computation of 13th month pay?

 No. Maternity leave benefits are not included in the computation of 13th month pay.

 To illustrate, assuming that a female employee is receiving a monthly salary of P10,000.00 and was on maternity leave from June 1 to July 31, 2013:

 
 
January             -  P10,000.00                             P100,000.00  =  P8,333.33

 February           -  P10,000.00                               12 months

 March               -  P10,000.00

 April                  -  P10,000.00    

 May                  -  P10,000.00

 June                  -  on maternity leave

 July                   -  on maternity leave

 August              -  P10,000.00

 September         -  P10,000.00

 October             -  P10,000.00

 November         -  P10,000.00

 December         -  P10,000.00

                             P100,000.00

  P8,333.33 is the proportionate 13th month pay of a female employee who was on maternity leave from June 1 to July 31, 2013.

 

What does “basic salary” comprise of?

  “Basic salary” shall include all remunerations or earnings paid by an employer to an employee for services rendered but does not include allowances and monetary benefits which are not considered or integrated as part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits, overtime, premium, night differential and holiday pay, and include cost-of-living allowances.  However, these salary-related benefits should be included as part of the basic salary in the computation of the 13th month pay if by individual or collective agreement, company practice or policy, the same are treated as part of the basic salary of the employees.

 

When should the 13th month pay be paid?

  It should be paid not later than December 24 of each year. An employer, however, may give to his employees one-half of the 13th month pay before the opening of the regular school year and the other half on or before the 24th day of December of every year.

 

Are resigned or separated/terminated employees entitled to 13th month pay? 

  Yes.  An employee who has resigned or whose services were terminated at any time before the time for payment of 13th month is still entitled to the benefit.

 

How much is the 13th month pay of a resigned or separated/ terminated employee?

  The 13th month pay of a resigned or separated/terminated employee is in proportion to the length of time he or she has worked during the year, reckoned (a) from the time she has starting working during the calendar year or (b) the time the last 13th month pay was given, up to the time of his/her resignation or separation/termination from the service.

 

Thus, if he/she worked only from January to September, his/her 13th month pay shall be equal to 1/12 of his total basic salary earned during that period

 

What is visitorial and enforcement power of the Secretary of Labor and Employment?

 

            These two complementary powers to administer and to enforce the law are conferred by the Labor Code of the Philippines, as amended, on the Secretary of Labor and Employment or his duly authorized representatives, i. e., the DOLE Regional Directors.

            The visitorial grants to said DOLE officials, including labor and employment  officers, access to employer's records and premises at any time of the day or night whenever work is being undertaken therein, and the right to copy there from such records, to question any employee and investigate any fact, condition or matter which may be necessary to determine violations or which may aid in the enforcement of the Labor Code and of any labor law, wage order or rules and regulations issued pursuant thereto (Art. 128 (a).

            The enforcement power  to issue compliance orders to give effect to the labor standards provisions of the Labor Code and other labor legislation based on the findings of labor and  employment officers or industrial safety engineers made in the course of inspection, and to issue writs of execution to the appropriate authority for the enforcement of their orders, except in cases where the employer contests the findings of the labor and employment  officers and raises issues supported by documentary proofs which were not considered in the course of inspection." (Art. 128 (b).

 

What is Labor Standards?

 

             LABOR STANDARDS refer to the minimum requirements prescribed by existing laws, rules and regulations relating to wages, hours of work, cost of living allowance and other monetary and welfare benefits, including occupational, safety and health standards.

 

How does one initiate a complaint for violations of labor standards laws, rules and regulations?

 

            If employer-employee relationship still exists, any aggrieved employee may file a complaint, regardless of the amount of monetary claims, before the DOLE regional office, or its provincial field offices, which has territorial jurisdiction over the workplace.

            On the other hand, if employer-employee no longer exists, either:

1.      before the DOLE regional office, provided, that the claim involves recovery of wages and other monetary claims and benefits, including legal interest, provided further, the following requisites are present: a) the claim is presented by an employee, or a person employed in domestic or household service, or house helper; b) the claim arise from employer-employee relations; c) the claimant does not seek reinstatement; and d) the aggregate money claim of each claimant does not exceed P5,000.00; or

2.      before the Regional Arbitration Branch of the National Labor Relations Commission, in the absence of any of the above enumerated requisites pursuant to Article 217 of the Labor Code, except claims for employees’ compensation, social security, medicare and maternity benefits.

 

What happens after the filing of a complaint before the DOLE regional office?

 

            All such complaints for violation of labor standards law, rules and regulations, including safety and health, shall immediately be forwarded to the Regional Director who shall refer the case to the appropriate unit in the Regional Office for assignment to a Labor and Employment Officer (LEO) for field inspection (Section 2, Rule II of the Rules on the Disposition of Labor Standards Cases in the Regional Offices). 

 

What is a Notice of Inspection Results?

 

            A "Notice of Inspection Results" refers to the inspection form duly accomplished and issued by the labor and employment officers or industrial safety engineers to the employer/s or any representative/s and the employee/s or any representative/s after the completion of the inspection. The notice shall specify the violations discovered, if any, together with the officers recommendation and computation of the unpaid benefits due each worker with notifications that said notice shall be posted conspicuously in the premises of the workplace, and removal thereof by the employer or by any of the workers shall be penalized in accordance with Article 288 of the Labor Code, as amended and that any question on the noted findings shall be submitted to the regional office concerned within five (5) working days from receipt thereof, otherwise an order of compliance shall be issued.

 

When can plant-level restitution be effected?

 

            Where the employer has agreed to make the necessary restitutions of violations discovered in the course of inspection, such restitutions may be effected at the plant-level within five (5) calendar days from receipt of the inspection results by the employer or his authorized representative.

            Plant-level restitutions may be effected for money claims not exceeding Fifty Thousand Pesos (P50,000.00). A report of the restitutions shall be immediately submitted to the Regional Director for verification and confirmation. In case the Regional Director finds that the restitutions effected at the plant-level are not in order, he may direct the TSSD Chief to check the correctness of the restitution report.

            Restitutions in excess of the aforementioned amount shall be effected at the Regional Office or at the worksite subject to the prior approval of the Regional Director. (Section 7, Rule II of the Rules on the Disposition of Labor Standards Cases in the Regional Offices)

 

What is a valid compromise agreement/ release, waiver, or quitclaim?

 

            Should the parties arrive at an agreement as to the whole or part of the dispute, said agreement shall be reduced in writing and signed by the parties in the presence of the Regional Director or his duly authorized representative (Section 8, Rule II of the Rules on the Disposition of Labor Standards Cases in the Regional Offices).

            The law looks with disfavor on releases, waivers, and quitclaims by employees who have been inveigled or pressured into signing them by unscrupulous employers seeking to evade their legal responsibilities and frustrate just claims of employees. However, in certain cases, the same is given effect if the employer is able to prove the following requisites, to wit: (1) the employee executes a deed of quitclaim voluntarily; (2) there is no fraud or deceit on the part of any of the parties; (3) the consideration of the quitclaim is credible and reasonable; and (4) the contract is not contrary to law, public order, public policy, morals or good customs, or prejudicial to a third person with a right recognized by law.

 

When should hearing be conducted?

 

            Where no proof of compliance is submitted by the employer after seven (7) calendar days from receipt of the inspection results, the Regional Director shall summon the employer and the complainants to a summary investigation. In regular routine inspection cases, however, such investigation shall be conducted where no complete field investigation can be made for reasons attributable to the fault of the employer or his representatives, such as those but not limited to instances when the field inspectors are denied access to the premises, employment records, or workers of the employer (Section 11, Rule II of the Rules on the Disposition of Labor Standards Cases in the Regional Offices).

 

When should a compliance order be issued?

 

            If the Regional Director finds after hearing that violations have been committed, he shall issue an Order directing the employer to restitute other corrective measures within ten (10) calendar days upon receipt of the Order and to submit proof of compliance. The Order shall specify the amount due each worker and shall include the computations on which the Order was based (Section 18, Rule II of the Rules on the Disposition of Labor Standards Cases in the Regional Offices).

How to assail a compliance order issued by the Regional Director?

 

            The aggrieved party may assail the order of the Regional Director by filing a motion for reconsideration or an appeal pursuant to the Rules on the Disposition of Labor Standards Cases in the Regional Offices.

            A motion for reconsideration from the Order of the Regional Director is filed within seven (7) calendar days from receipt of a copy thereof. A motion for reconsideration filed beyond the seven-day reglementary period shall be treated as an appeal if filed within the ten-day reglementary period for appeal, but subject to the requirements for the perfection of an appeal. Further, no second motion for reconsideration shall be entertained (Section 19, Rule II of the Rules on the Disposition of Labor Standards Cases in the Regional Offices).

            An appeal from the Order/Resolution of the Regional Director shall be filed within ten (10) calendar days from receipt thereof; otherwise, the same shall be rendered final and executory.

 

Where to file an appeal?

 

            The appeal shall be filed in five (5) legibly typewritten copies with the Regional Office which issued the Order. The appeal shall not be deemed perfected if it is filed with any other office or entity (Section 3, Rule IV of the Rules on the Disposition of Labor Standards Cases in the Regional Offices).

 

What are the requirements for filing an appeal?

 

            The appeal shall be filed within ten (10) calendar days from receipt of a copy of the assailed order/resolution and subject to the following mandatory requirements:

a)      It shall be under oath and accompanied by a memorandum of appeal which shall state the date appellant received the Order/Resolution, and the grounds relied upon and the arguments in support thereof (Section 4(a), Rule IV of the Rules on the Disposition of Labor Standards Cases in the Regional Offices).

b)      In case said Order/Resolution involves a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Secretary of Labor and Employment in the amount equivalent to the monetary award in the order/resolution appealed from (Article 128 (b) of the Labor Code of the Philippines, as amended by Republic Act No. 7730). No motion for the reduction of appeal bond is  allowed under the Rules.

 

What is Labor Standards Enforcement Framework (LSEF)?

 

            To remedy severe shortage of labor inspectors and to build a culture of compliance among employers based on voluntariness instead of compulsion, the Department of Labor and Employment issued Department Order No. 57-04, also called the Labor Standards Enforcement Framework (LSEF) which involves three approaches: 1) self-assessment; 2) inspection; and 3) advisory service. Also, under D.O. No. 57-04, the DOLE may delegate to local government units the conduct of technical safety inspection required under Article 165 of the Labor Code.

 

What is Self-assessment approach?

 

            Self-assessment is a voluntary mode applicable to and encouraged in establishments with at least 200 workers and is unionized establishments with certified collective bargaining agreement, regardless of the number of workers. The employers of these establishments will be provided with a checklist in the first quarter of every year. Within a month after receipt of such checklist, a committee composed of the employer and the employee representatives shall accomplish the same which shall be submitted to the concerned DOLE regional office not later than five (5) days from assessment.

 

What is a training and inspection approach?

 

            An inspection approach is the conduct of inspection in all workplaces with 10-199 workers which shall be undertaken by labor inspectors based on the following inspection priorities:

1.      Existence of complaints, imminent danger or imminent occurrence of accidents and illnesses/injuries;

2.      Highly hazardous and hazardous workplaces;

3.      Construction sites; and

4.      Establishments employing women/child workers.

 

What is an advisory service approach?

 

            This approach shall be undertaken in workplaces with less than 10 workers and those registered as barangay micro-business enterprises (BMBEs). The conduct of training and advisory visits (TAVs) by the DOLE regional offices is designed to assist small and micro establishments to improve their productivity, thereby facilitating their eventual compliance with labor standards.

 

 

RSS feeds

feed-image