General Labor Standards 2009-12-03 + Larger Font | - Smaller Font
What You Need To Know For more information on the minimum wage rate per Region, please visit National Wages and Productivity Commission website to view wage orders per region.
Minimum Wage The current daily minimum wage for employees in the National Capital Region (NCR) is PhP382.00, per Wage Order No. NCR-14 granting a wage increase of PhP20.00 per day effective 28 August 2008.
Premium Pay Premium Pay refers to the additional compensation required by law for work performed within eight (8) hours on non-working days, such as rest days and special days.
Special Days (e.g. Special (Non-Working) Holiday) H oliday) Special Days During special days, the principle of "no work, no pay" applies and on such other special days as may be proclaimed by the President or by the Congress. Workers who were not required or permitted to work on those days are not by law entitled to any compensation. This, however, is without prejudice to any voluntary practice or provision in the Collective Bargaining Agreement (CBA) providing for payment of wages and other benefits for days declared as special days even if unworked. Executive Order No. 203 as amended by Republic Act No. 9492 lists down three (3) special days that shall be observed in the country: • • •
Ninoy Aquino Day All Saint's Day Last day of the year
Monday Nearest Aug. 21 November 1 December 31
Holiday Pay Holiday Pay refers to the payment of the regular daily wage for any unworked regular holidays. Regular Holidays Every employee covered by the holiday pay rule is entitled to his daily basic wage for any unworked regular holiday. This means that the employee is entitled to at least 100% of his basic wage even if he did not report for work, provided he is present or is on leave of absence with pay on the work day immediately preceding the holiday. Under Executive Order No. 203, as amended by RA 9492, there are eleven (11) regular holidays, namely: • • • • • • • • • • •
New Year's Day Maunday Thursday Good Friday Araw ng Kagitingan Labor Day Bonifacio Day Independence Day National Heroes Day Christmas Day Rizal Day E'dl Fi'tr
January 1 Movable dates Movable dates April 9 May 1 November 30 June 12 last Sunday of August December 25 December 30 Movable dates
Overtime Pay Overtime Pay refers to the additional for work performed beyond eight (8) hours a day.
Night Shift Differential Night Shift Differential refers to the additional compensation of ten percent (10%) of an employee's regular wage for each hour of work performed between 10:00PM and 6:00AM.
Computation of Wages
Computation of wages is governed by the following rules: Computing Overtime: On Ordinary Days Plus 25% of the hourly rate multiplied by the number of hours. On a rest day, special day or regular holiday Plus 30% of the hourly rate on said days multiplied by the number of hours. Computing pay for work done on: A special day (130% x basic pay) A special day, which is also a scheduled rest day (150% x basic pay) A regular holiday (200% x basic pay) A regular holiday, which is also a scheduled rest day (260% x basic pay) Computing Night Shift Premium Where Night Shift is a Regular Work: On Ordinary day (110% x basic hourly rate) On a rest day, special day, regular holiday (110% of regular hourly rate for a rest day, special day, regular holiday) Computing Overtime on Night Shift: On ordinary day (110% x overtime hourly rate) On rest day, special day or regular holiday (110% x overtime hourly rate for rest days, special days, regular holidays) Computing 13th Month Pay: Total basic salary earned for the year exclusive of allowances, overtime, holiday, and night shift differential pay divided by 12 months = 13th month pay.
Service Incentive Leave Every employee who has rendered at least one (1) year of service is entitled to a yearly service incentive leave of five (5) days with pay. This benefit does not apply to the following: * government employees * domestic helpers and persons in the personal service of another * managerial employees * field personnel and those whose time and performance is unsupervised by the employer * those already enjoying this benefits * those enjoying vacation leave with pay of at least five (5) days * those employed in establishments regularly employing less than ten (10) employees
Meaning of "one year of service" The phrase "one year of service" of the employee means service within 12 months, whether continuous or broken, reckoned from the date the employee started working. The period includes authorized absences unworked weekly rest days, and paid regular holidays. Where by individual or collective agreement, practice or policy, the period of working days is less than 12 months, said period shall be considered as one year for the purpose of determining entitlement to the service incentive leave. Availment/Commutation to Cash The service incentive leave may be used for sick and vacation leave purposes. The unused service incentive leave is commutable to its money equivalent at the end of the year. In computing, the basis shall be the salary rate at the date of commutation. The availment and commutation of this benefit may be on a pro rata basis.
Paternity Leave Paternity leave is granted to all married male employees in the private sector, regardless of employment status, (e.g. probationary, regular, contractual, projectbased) the purpose of which is to allow the husband to lend support to his wife during her period of recovery and/or in the nursing of her newborn child. The leave shall be for seven (7) days, with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board, if any, provided that his pay shall not be less than the mandated minimum wage. Availment of the paternity leave may be after the delivery, without prejudice to an employer's policy of allowing the employee to avail of the benefit before or during the delivery, provided that the total number of days shall not be more than seven (7) days for each covered delivery.
Maternity Leave Every pregnant woman in the private sector, whether married or unmarried is entitled to maternity leave of (60) days in case of normal delivery ,abortion or miscarraige, or seventy-eight (78) days in case of caesarian section delivery with benefits equivalent to 100% of the average daily salary credit of the employee as defined under the Social Security Law
Parental Leave for Solo Parents Parental leave for solo parents is granted to any solo parent or individual who is left alone with the responsibility of parenthood to enable him/her to perform parental duties and responsibilities where physical presence is required. The parental leave in addition to leave privileges under existing laws, shall be for seven (7) work days every year, with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board, if any, provided that his/her pay shall not be less than the mandated minimum wage. Emergency and contingency leave provided under a company policy or a collective bargaining agreement shall not be credited as compliance with the parental leave provided under Republic Act No. 8972.
Leave for Victims of Violence Against Women and Their Children (VAWC) VAWC leave is granted to private sector women employees who are victims as defined in Republic Act No. 9262. The leave benefit shall cover the days that the women employee has to attend to medical and legal concerns. In addition to other paid leaves under existing labor laws, company policy, and/or collective bargaining agreement, the qualified victim employee shall be entitled to a leave of up to ten (10) days with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board, if any.
Service Charges Employees of employers collecting service charges are entitled to an equal share in the 85% of the total of such charges, except managerial employees. The remaining 15% of the charges may be retained by the management to answer for losses and breakages and for distribution to managerial employees, at the discretion of the management in the later case. Service charges are collected by most hotels and some restaurants, night clubs, cocktail lounges, among others.
Separation Pay Separation pay is given to employees in instances covered by Articles 283 and 284 of the Labor Code. An employee's entitlement to separation pay depends on the reason or ground for the termination of his services. An employee may be terminated for just cause (i.e. gross and habitual neglect of duty, fraud or
commission of a crime) and other similar causes as enumerated under Article 282 of the Labor Code and generally, may not be entitled to separation pay. On the other hand, where the termination is for authorized causes, separation pay is due.
13th Month Pay All employers are required to pay their rank and file employees regardless of the nature of their employment and irrespective of the method by which their wages are paid provided they worked for at least one (1) month during a calendar year. 13th Month Pay should be given to the employees not later than December 24 of every year.
The Worker’s Basic Rights
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 employeeemployer 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. 2. 3. 4. 5.
seri seriou ous s misco miscond nduc uctt willful disobedie disobedience nce of employers' employers' lawful lawful orders orders connected connected with with work gross gross and and habitu habitual al negle neglect ct of of duty duty fraud fraud or will willful ful bre breach ach of of trust trust commission commission of crime crime or or offense offense against against the employer, employer, employer's employer's family family member/s or representative 6. other other analo analogo gous us cases cases
Authorized Cause refers to an economic circumstance not due to the employee's fault, including:
1. 2. 3. 4.
the introd introducti uction on of laborlabor-sav saving ing devic devices es redu edundanc ancy retrench retrenchmen mentt to to prev prevent ent losses losses closure closure or cessati cessation on of business business
Due Process in cases of just cause involves: 1. notice to to employee employee of intent to to dismiss dismiss and grounds for dismissal dismissal 2. opportu opportunity nity for for employe employee e to explain explain his his or her side side 3. notic notice e of decis decision ion to to dismi dismiss ss
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., he or she shall be entitled to a night shift pay in addition to his or her regular work hours, or work for more than 8 hours in one day, he or she shall be entitled to overtime pay, except when he or she is classified as managerial or field personnel, or is one who works in the personal service of another, or is one who is paid by result. An employee may not be compelled to work overtime except during war, emergencies, disasters or calamities; when urgent repairs need to be undertaken; when work is necessary to preserve perishable goods, avoid serious obstruction or prejudice to the employer's business; or take advantage of favorable weather conditions.
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 the employer. 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 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, 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 of age. A worker below 15 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 non-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.
Right to Self-Organization 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, 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 represe representat ntative ive of the the emplo employer yer 2. a union duly authorized authorized by the majority of the employees employees within within a bargaining unit called exclusive bargaining agent.
It is a process where the parties agree: 1. to fix and and administer administer terms and conditions conditions of employm employment ent which which must not not be below the minimum standards fixed by law 2. to set a mechan mechanism ism for for resolvin resolving g their griev grievance ances s
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 affectivity 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
Rights to Safe and Health Conditions of Work
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 the police power, with the intention of promoting the welfare and wellbeing 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; • 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 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 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 other authorized representative, enforces the OSH Standards in the exercise of victorial and enforcement powers.
What is visitorial power? Visitorial power refers to the authority to conduct inspections or investigations at 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 affected may be 24 hours from the issuance of the order to determine whether or not the suspension or cessation of the operations shall be lifted.
How are these Standards enforced? These standards are enforced through the inspectorate system. Thus, every employer shall give to the Secretary or his/her duly authorized representative access to its premises or records at any time of the day or night when 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 an 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 physical harm or poses imminent danger to life, what shall he do to correct the danger?
The said worker or workers’ representative shall request an inspection with the Regional Office in 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 are considered hazardous work place? 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 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 report 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 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.
What are the duties of the Safety and Health Committee? The 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 and implementation of accident prevention program; • Conduct safety meetings at least once a month; • Submit report 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.
