general labor standards presentation

8/12/2019 General Labor Standards Presentation

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Scope:minimum requirements pursuant

to provisions of Labor Code, OSHS, and

other allied legislations and their rules

and regulations.

Inc lude GLS wages, wage-related

benefits, hours as well as General

Occupational Safety and Health.

Labor Standards


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WAGES

Wage paid to any employee 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 or to be done, or for

services rendered and this includes the fair and

reasonable value as determined by the Secretary of

Labor, of board and lodging & other facilities

customarily furnished by an employer to the

employee.


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Fair and Reasonable Value

Meals and snacksnot more than 70% of the value ofthe meals and snacks enjoyed by the employees. The

remaining 30% has to be subsidized by the employer.

Ex.P50.00 x 70%= P35.00

P35.00 x 3meals = P105.00

P105.00 x 26 days = P2,730.00

Lodging the cost of operation and maintenance,including adequate depreciation plus reasonable

allowance (but not more than 5% interest of the

depreciated amount of capital OR the fair rental value.


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Who will determine the fair andreasonable value of the facilities?

Sec. 3, Rule VII-A, Book III of the IRR

The Secretary of Labor and Employment, or his

duly authorized representative, may from time totime fix in appropriate issuances the fair and

reasonable value of board, lodging and other

facilities customarily furnished by an employer.

Art. 97 (f) . . . . . . . . as determined by the

Secretary of Labor and Employment.


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Covered Workers

All Minimum Wage Earners in the private sector

in the National Capital Region regardless of their

position, designation or status and irrespective

of the method by which their wages are paid.

Exclusions

Household or domestic helpers

Persons in the personal service of another,

including family driver

Workers of registered Barangay Micro Business

Enterprises (BMBEs) with Certificate of

Authority


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Exemptible Categories

Retail/ service establishments employing notmore than 10 workers

Distressed establishments

Establishments facing potential losses

Establishments with total assets (including from

loans but exclusive of the land on which the

particular business entitys office, plant and

equipment are situated) are not more than

P3,000,000.00

EXEMPTION IS FOR A MAXIMUM PERIOD OF

ONE YEAR FROM EFFECTIVITY OF THE WAGE ORDER


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Creditable Increase

Unorganized Establ ishments

Increase granted within five (5) months prior toeffectivity of the Wage Order shall be creditable

as compliance

Organized Establ ishm ents

Creditability provision of the CBA will prevail

In both cases:

should not include anniversary, mer it increase

and those resu l t ing from the regular ization or

prom ot ion of employees.

should th e increase granted be less than the

prescr ibed adjustm ent, the employ er shal l pay

the difference.


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Payment of Wages

Forms of payment legal tender, check, ATM

Time of payment once every 2 weeks or twice

a month at intervals of not exceeding 16 days

Place of payment workplace

Direct payment of wages directly to the

workers to whom they are due


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Workers Paid by Result

Are those workers whose pay is calculated not on

the basis of time spent on the job but according to

the quantity and quality or the kind of work they

turn out.

The applicable Minimum Wage of workers paid by

results including those who are paid on piecework,

takay, pakyaw and task basis should not be less

than the applicable minimum wage rates for

normal working hours.


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Article 101 of LC: The Secretary of Labor shall

regulate the payment of wages by results, includingpakyaw, piecework and other non-time work, in

order to ensure the payment of fair and reasonable

wage rates, preferably through t ime and mot ion

studiesor in consultation with the reps of workersand employersorganizations.

Par. (a), Sec. 8, Rule VII, Book III of the IRR: On

petition of any interested party, or upon its initiative,

the DOLE shall use all available resources,including the use of time and motion studies x x x x

xto determine whether the employees x x x x x are

being compensated in accordance with the

prescribed minimum wage.

Payment by Results


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Two Kinds of Workers Paid by Results

1. Those whose time and performance is

supervised by the employer. (Piece rate-

generally done in the company premises as is

practiced in garment factories.)

2. Those whose time and performance is

unsupervised. (Pakyaw and takay which is

commonly practiced in the agriculturalindustry, e.g. in sugar plantat ions .)


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Are those covered by Apprenticeship/

Learnership Program duly approved by the

Technical Education and Skills Development

Authority(TESDA).

The applicable minimum wage should not be

less than seventy five (75%) of the applicable

statutory wage rates.

Apprentices/ Learners


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13thMonth Pay

A. Coverage:

All employers are required to pay their rank and file

employees

- regardless of the nature of their employment; and

- ir respect ive of the method by which their wages

are paid

- prov ided they wo rked for at least one (1) month

du ring a calendar year.


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B. Minimum Amount of 13thMonth Pay

Shall not be less than 1/12 of the total basic

salary earned by an employee within a

calendar year.

basic salary all remunerations or earnings for

services rendered.

- does not include allowances and monetary

benefits which are not considered or integrated

as part of the regular or basic salary.


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Total Basic Salary12 Months

13thMonth Pay

Shall be paid not later than December 24 of

each year. An employer, however, may give

to his employees one half (1/2) of the required

13th month pay before the opening of the

regular school year and the other half on orbefore the 24thof December of every year.

C. Time of Payment

D. Formula


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Additional compensation for work or service

rendered or performed in excess of 8 hours;

25%- ordinary working days;

30%- rest days, special days, andregular holidays;

No Overtime Pay if Compressed Workweek

Scheme is voluntarily adopted;

Undertime work not offset by overtime work.

Overtime Pay


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Not applicable to employees of retail and serviceestablishments regularly employing not more than 5

employees, managerial & field employees.

Not less than ten percent (10%) of the EEs regularwage for each hour of work performed between ten

oclockin the evening and six oclockin the morning.

Sample com putat ion:

P275.00/ 8 hrs. = P34.38 x 10% = P3.44

P3.44 + P34.38 = P37.82

Night Shift Differential Pay


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Not applicable to employees of retail and service

establishments regularly employing less than ten (10)

employees;

Domestic helpers & persons in the personal serviceof another;

Managerial employees; and

Field Personnel and other employees whose time andperformance is unsupervised by the employer like

task or contract basis, purely commission basis.

Regular Holiday Pay


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New Years Day - January 1

Maundy Thursday - Movable Date

Good Friday - Movable Date

EidulFitr - Movable DateAraw ng Kagitingan - Monday nearest April 9

Labor Day - Monday nearest May 1

Independence Day - Monday nearestJune 12

National Heroes Day - Last Monday of August

Bonifacio Day - Monday nearest Nov.30

Christmas Day - December 25

Rizal Day - Monday nearest Dec.30

Regular Holidays

Regular Holidays Under Republic Act 9492


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If worked - 200%of the regular wage

If unworked - 100%of the regular wage

Payment of Holiday Pay

Condi t ion for ent i t lement: the employee

should not have been absent without pay

on the last working day preceding the

regular holiday


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Special Holidays under RA 9492:

Ninoy Aquino Day ----- Monday nearest August 21

All Saints Day ------------ November 1

Last Day of the Year --- December 31

Payment:

- 30% based on the EEs regular wage

- 50% if the special day falls on the EEs rest day

Daily Paid EEs : No Work, No Payapplies

Special Holidays Premium Pay


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It shall be the duty of every employer, whetheroperating for profit or not, to provide each employee

a rest period of not less than twenty-four (24) hours

after every six (6) consecutive normal work days.

Payment:

- 30% based on the EEsregular wage

- 50% if the rest day is at the same timea special day

Daily Paid EEs :No Work, No Payapplies

Rest Day Premium Pay


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Applies to all employees of covered employers,

regardless of their positions, designations or

employment status, and irrespective of the method

by which their wages are paid, except managerialemployees.

Distr ibut ion: 85% - shall be distributed equally

among the covered employees and 15% for the

management.

Frequency of distribution.

Permanency of service charges.

Service Charges (Art. 96)


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Not less than sixty (60) minutes (no t com pensable)

If less than sixty (60) minutes, compensable but, in

no case, be less than twenty (20) minutes and only

in the following cases:

1. Non-manual work or does not involvestrenuous phy sical exert ion;

2. Operat ion no t less than s ixteen (16) hours a

day;

3. Emergencies, urgent wo rk - to avoid ser ious

losses; and

4. Necessary - to prevent ser ious losses of

per ishable goods.

Meal Periods


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Applies only to employees who have rendered at

least one (1) year service;

Except ions:

Those who are already enjoy ing the benefi t ;

Those enjoyin g vacation leave with pay for at

least five (5) days;

Those employed in establ ishm ents regu lar ly

emp loy ing less than ten (10) emp loyees.

Five (5) Days Service Incentive Leave Pay


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Commutable to its money equivalent if not used

or exhausted at the end of the year;

The basis of conversion shall be the salary rateat the date of commutation;

Vacation Leave and Sick Leave are not

mandatory or legally required; voluntary;employersdiscretion.

Five (5) Days Service Incentive Leave Pay


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(Republic Act. No. 1161 as amended by R. A. No.

8282 otherwise known as the SocialSecurity Law of

1997took effect on May 24, 1997.)

A female employee who has paid at least three (3)

monthly contributions in the twelve-month period

immediately preceding the semester of her

childbirth, or miscarriage shall be paid a daily

maternity benefit equivalent to one hundredpercent (100%) of her average salary credit for

sixty (60) days or seventy-eight (78) days in case of

caesarean delivery.

Maternity Leave


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Coverage Every married male employee in the private

sector shall be entitled to paternity leave

benefits of seven (7) days with full pay for the

first four (4) deliveries by his lawful spouse.

Paternity Leave


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A marr ied male employee shal l be enti t led to

paterni ty benefi ts p rovided that:

He is an employee at the time of delivery of his child;

He is cohabiting with his spouse at the time she

gives birth or suffers a miscarriage;

He has applied for paternity leave in accordance with

company rules after notification; and

His wife has given birth or suffered a miscarriage.

Condition for Entitlement ofPaternity Leave Benefits


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Employees shall be retired upon reaching the age

of 60 years or more but not beyond 65 years old.

The retirement benefits pursuant to Article 287 of

the LC, as amended under RA 7641 and RA 8558 are

distinct and separate from the benefits provided by

the SSS law.

The minimum retirement pay shall be equivalent toone-half month salary for every year of service, a

fraction of at least six (6) months being considered

as one whole year.

Retirement Pay

Coverage


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For the purpose of computing retirement pay, one-

half month salary shall include all of the following:

a. 15 days salary based on the latest salary;

b . cash equ ivalent o f 5 days o f SIL; and

c. on e-twelfth (1/12 of th e 13thmonth pay)

Other benefits may be included in the computation

of the retirement pay upon agreement of the

employer and the employee or if provided in CBA.

To il lus trate:

Minimum Retirement Pay = number of years in service

x one-half month salary


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Retirement under a

Collective Bargaining Agreement (CBA)

Any employee may retire or be retired by his

employer upon reaching the retirement age

established in the CBA or other applicable

agreement/contract and shall receive the retirementbenefits granted therein; provided, however, that

such retirement benefits shall not be less than the

retirement pay required under RA 7641 and provided

further that if such retirement benefits under the

agreement are less, the employer shall pay the

difference.


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Not less than twenty-four (24) consecutive

hours after every six (6) consecutive normal

work days;

Employer shall determine and schedule the

weekly rest day of his employees;

The employer shall respect the preference of

the employees based on religious grounds.

Weekly Rest Periods


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Government employees, managerial employees,

other officers or members of the managerial staff,

domestic servants, non-agricultural field personnel,

and members of the family of the employer.

Shall not exceed eight (8) hours a day.

Does not always mean continuous and

uninterrupted eight hours of work (broken hours).

Normal Hours of Work

Coverage Employees in all establishments and undertakings

whether for profit or not.

Exception


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Is a scheme where the generally observed six (6)days workweek of eight (8) hours per day is

shortened to five (5) days only. The Saturday or 6th

day work may either be evenly distributed over the

five (5) working days from Monday to Friday.

In the adoption of the compressed workweek, the

following concurring conditions should be met:

1. The employees volun tar i ly agree to work more thaneight hr s./day, the total in a week of which shal l not

exceed their normal weekly hours of w ork, pr ior to

adopt io n o f the CWW arrangements.

Compressed Workweek


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2. There wi l l be no dim inut ion whatsoever in the weekly o r

monthly take-home pay and fr inge benef i ts of the

employee.

3. I f an employee is permit ted or required to work in

excess of h is normal weekly hours of wo rk pr ior

to the adopt ion of the CWW scheme, all such

excess hou rs shal l be con sidered overt ime wo rk

and shal l be com pensated in accordance w ith the

prov is ions of the LC or appl icable CBA .

4. Approp r iate waivers with respect to overtime premium

pay for work performed in excess o f eight (8) hours a

day may be devised by the part ies to the agreement.

5. The ef fect iv i ty and im plementat ion o f the new workin g

t ime arrangements shal l be by agreement of th e part ies.

ContinuationCompressed Workweek


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EMPLOYERSadopting the compressed workweek

scheme provided herein shall submit a REPORT

to the Department of Labor and Employment or to

its nearest Regional Office not later than ten (l0)

daysfrom the adoption of the scheme.

ContinuationCompressed Workweek


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Issuance governing contracting and sub-contracting arrangements. These rules apply to all

parties of contracting and sub-contracting

arrangements where employer-employee

relationship exists. D.O. 18-02 requires registration

of contractors and sub-contractors for purposes of

establishing effective labor market information and

marketing.

This registration is different from registration of

establishment under Rule 1020 of Occupational

Safety and Health Standards.

Registration of Contractor/

Sub-contractor (D.O. 18-02)


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Separation pay is given to employees in instancescovered by Articles 283 and 284 of the Labor Code.

An employees 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 similarcauses as enumerated under Art. 282 of the LaborCode and generally may not be entitled to separation

pay. On the other hand, where the termination is for

authorized causes, separation pay is due.

Separation Pay (Art. 283-284)


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A. One month pay or one-half month pay per year of

service

An employee is entitled to receive as separationpay the equivalent to one (1) month pay, or one-half

(1/2) month pay whichever is higher for every year

of service, a fraction of at least six months being

considered as one (1) whole year, if his separation

from the service is due to any of the followingcauses:

1. Retrenchment to prevent losses, i.e. reduction

of personnel effected by management to prevent

losses;

2. Closure or cessation of operation of operation

of an establishment not due to serious losses or

financial reverses; and


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3. When the employee is suffering from a disease not

curable within a period of six (6) months and his

continued employment is prejudicial to his health or

to the health of his co-employees.

In no case will an employee get less than one (1)

month separation pay if the separation is due to the

above stated causes, and he has served for at least six

months.

Thus, if an employee had been in the service for at

least six (6) months but less than a year, he is entitled

to one (1) full months pay if his separation is due toany of the causes enumerated above. Service of one

year and above entitles the employee month pay for

every year of service, a fraction of at least 6 months

considered one year.


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c . Impossib le reinstatement of the employee to his

former or to a substant ial ly equivalent pos i t ion forreasons not attr ibutable to the fault of the

emp loyer, as when the reins tatement ordered by a

com petent author i ty canno t be implemented due

to closure or cessat ion of operat ions of the

establ ishment/ employer, or the po si t ion to wh ich

he is to be reins tated no longer exis ts and there is

no substant ia l ly equivalent posi t ion in the

establ ishment to which he can be assigned (per

Supreme Cou rt Decision ).


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Alien Employment Permit refers to the certificate

issued by the Director of the Regional Office

authorizing a resident alien to work in thePhilippines.

Copy of the AEP, if employing aliens shall be

kept at the workplace.

Alien Employment Permit


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Before an employer engages a child for

employment, he must first secure a work permit

from the Regional Office of the DOLE having

jurisdiction over the workplace.

Copy of Work Permit, if employing children less

than 15 years of age in the entertainment industry

shall be kept in the workplace.

Work Permit (for Children)


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The payroll must show the names, sex, wage or

salary, allowances and other salary related

benefits such as overtime pay, premium pay,

deductions for withholding tax, SSS premiums,

PAG-IBIG premium and other legal deductions,

and the signature of the employees;

Must be kept for a period of at least three (3)

years at the workplace.

Payrolls/ Daily Time Records


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Pursuant to RA 6727, employers are required

to submit to the Natl. Wages and Productivity

Board a list of their employees and thecorresponding information like length of

employment, status of employment and the

corresponding salary.

List of Labor Component

R i t ti ith SSS


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All employers must remember that their employees are

members of the SSS from the first day of employment,

hence they must keep copies of Registration of Employees

at the workplace.

All employers who failed to register their employees with

the SSS will deprive their employees the benefits due them

other than the maternity leave, such as: Cash incomebenefits for TTD, PP and PTD; sickness benefit; lifetime

monthly pension of members; dependent in case of death

of member; death benefit; funeral benefit; entitlement to

salary loan, housing loan and calamity loan. All employers must remember that their failure to register

their employees to the SSS and to remit the corresponding

premiums of said employees will make them criminally

liable under the SSS law.

Registration with SSS


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All employers shall remit to the PAG-IBIG Fund

Office the required contribution to the PAG-IBIG

Fund Office as provided by law.

Coverage under the

PAG-IBIG Fund Program

Relationship between Core Labor Standards ILO Conventions


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Core

Labor

Standards

Relationship between Core Labor Standards, ILO Conventions,

International and National Legislation/ Practice

Bureau of Working Conditions

ILO C ti
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1. Freedom of association and right to collective

bargaining; ILO Con vention 87 & 98

2. Elimination of all forms of forced labor;

ILO Con vent ion 29 & 105

3. Effective abolition of Child Labor;

ILO Con vent ion 138 & 182

4. Elimination of discrimination in respect of

employment and occupation; ILO c on ventio n 100 & 111

ILO Convent ions on

Four Core Labor StandardsCore

Labor

Standards

Source:ILO Handboo k on Core Labor StandardsBureau of Working Conditions

C f I t ti l L b
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1. Occupational Health and Safety (OHS)

2. Employment Promotion

3. Minimum Wages

4. Social Security5. Labor Administration

6. Protection of Migrant Workers

7. Working Hours for Young Workers

8. Industrial Relations

9. Specific Economic Sectors.

Coverage of International Labor

Standards

Source:ILO Handboo k on Core Labor StandardsBureau of Working Conditions
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Importance of Respect and Compliance to LS

1. Promotes decent work;

2. Has productivity-increasing effect;

3. Generates positive impact on economic and

social development, and good governance;

4. Contributes to poverty reduction.

Bureau of Working Conditions

Source:ILO Handbo ok o n Core Labor Standards


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