usa labor standards 2 2009

7/31/2019 USA Labor Standards 2 2009

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Normal Hours of Work

NORMAL HOURS: EIGHT (8) HOURS within workday

Hours of Work determine only the rates of pay, not theexistence of an ER-EE relationship

When payment of wages and benefits is not time-based, thelabor standard does not apply.

Workers/Employees Not Covered

1. government employees2. managerial employees3. officers and members of the managerial staff

4. field personnel5. members of the family of the employer who are dependenton him for support

6. domestic helpers7. persons on the personal service of another8. workers paid by result


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HOSPITAL PERSONNEL: EIGHT (8) HOURS for FIVE (5) DAYS forhealth personnel in cities and municipalities with a populationof at least 1,000,000 or in hospitals or clinics with a bedcapacity of at least 100 beds; the 40-hour workweek is

designed to reduce health risks due to exposure to patientswith contagious diseases. In exigencies, health personnel maybe required to work for SIX (6) DAYS or FORTY-BGHT (48 HOURSbut they shall be paid an additional 30% of their regular wageon the sixth day.

REDUCTION OF WORK HOURS: as a general rule a reductionwhich would involve the corresponding diminution of paycannot be done unilaterally.

COMPRESSED WORK WEEK: Reducing the workweek byprolonging the daily work hours without payment of overtime

may be allowed provided the employees consent, there is nodiminution of pay and such is approved by the POLE.


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Hours Worked

Principles and Rules

1. All hours worked which the employee is required to be onduty or at the prescribed workplace and all the time,which an employee is suffered or permitted to work.

2. An employee need not leave the premises of theworkplace in order that his rest period shall not becounted, it being enough that he stops working, may restcompletely and may leave his workplace, to go elsewherewhether within or outside the premises of his workplace.

3. If the work performed was necessary or benefited theemployer, or me employee could not abandon his work atthe end of his normal working hours because he had noreplacement, all time spent for such work shall beconsidered as hours worked, if the work was with the

knowledge of his employer or Immediate supervisor.4. The time during which an employee is inactive by reason

of interruptions in his work beyond his control shall beconsidered time worked if the imminence of theresumption of work requires the employee's presence atthe place of work or if the interval is too brief to be utilized

effectively and gainfully in the employee's own interest.


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WAITING TIME: This is considered hours worked if waiting is

an integral part of his work and the employee Is required orengaged by the employer to wait; or if the employee isrequired to remain on call in the employer's premises or closethereto that he cannot use the time effectively and gainfullyfor his own purpose.

TRAVEL TIME: normal travel time from home to work is notcompensable; however if the employee receives anemergency call outside his regular working hours and isrequired to travel to his regular place of work or to some otherwork site, all the time spent in such travel is worked time.


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ASSEMBLY TIME: where the assembly time is so structured,both as to duration and purpose. Into the workday, as to be anIntegral part thereof, since the time was used to check

attendance, to give out work assignments and to brief theworkers on their respective tasks, the same may beconsidered worked time.

ATTENDANCE AT MEETINGS: Attendance is not consideredhours worked when the attendance is outside of the

employee's regular working hours, attendance is, in fact,voluntary, and the employee does not perform any productivework during such attendance.

POWER OUTAGE: Compensable if for short duration (20minutes); if more, not compensable if the employees can

leave their workplace or go elsewhere within or without thework premises; and, the employees can use the timeeffectively for themselves. The employer may extend the workhours outside the regular schedules to compensate for theInterruptions without obligation for overtime pay.


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MEAL/BREAK PERIODS: ONE (1) HOUR for regular meals;Rest periods or coffee breaks running from 5-20 minutes shallbe considered compensable time.

Shortened Meal Break Requisites:1. The employees voluntarily agree in writing to a shortened

meal period and are willing to waive the overtime pay forsuch shortened meal period;

2. There will be no diminution whatsoever in the salary andother fringe benefits of the employees existing before theeffectivity of the shortened meal period;

3. The work of the employees does not involve strenuousphysical exertion and they are provided with adequatecoffee breaks;

4. The value of benefits is equal to the compensation duethem for the shortened meal period;

5. Overtime pay will become due and demandable if everthey are permitted or made to work beyond 4:30 pm.

6. The arrangement is of temporary duration.


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NIGHT SHIFT DIFFERENTIAL (ARTICLE 86): an additionalTEN (10%) PERCENT of regular pay for work between 10:00 PM-6:00 AM

Employees not entitled to night shift differential:

1. Those of the government and any of its politicalsubdivisions, including government-owned and/orcontrolled corporations;

2. Those of retail and service establishments regularlyemploying not more than 5 workers;

3. Domestic helpers and persons in the personal service ofanother;

4. Managerial employees as defined in Book III of the LaborCode;

5. Field personnel and other employees whose time andperformance are unsupervised by the employer, includingthose who are engaged on task or contract basis, purelycommission basis, or those who are paid a fixed amountfor performance thereof.


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OVERTIME WORK: Work beyond EIGHT (8) HOURS onordinary working days shall be paid an additional TWENTY-FIVE (25%) PERCENT of the regular wage; THIRTY (30%)PERCENT of his holiday/rest day rate, on regular/special

holidays and rest days. Proof of overtime work is required forthe employee to be entitled to payment.

Employees not entitled to overtime pay

1. government employees;2. managerial employees;3. non-agricultural field personnel;4. members of the family of the employer who are

dependent upon him for support;5. domestic helpers and persons in the personal service of

another;6. workers who are paid by results (such as those paid on

piece rate basis)


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No Off-setting of undertime with overtime (Art. 88)

Refusal to render overtime work agreed upon in the CBA maybe deemed a strike.

Waiver of overtime pay is not allowed.

Exceptions:

when the waiver is made in consideration of benefits andprivileges which may be more than what will accrue tothem in overtime pay

compressed workweek:


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Overtime Work

Work exceeding eight (8) hours of employees

24-hour workday Plus 25%/30% of basic/premium rate

No off-setting of undertime/overtime

Basis of computation is cash wage only

Emergency Overtime Work may be required

under the conditions set forth in Art. 89. Waiver of Overtime Pay not allowed, except:

In consideration of better benefits

Compressed Workweek

Fixed Overtime

Refusal to render overtime work agreed upon inthe CBA may be deemed a strike.


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Rest Day

Rest period is 24 consecutive hours after every six (6)consecutive normal work days

Employees preference for religious reasons

Premium Pay 30% / 50% for special holiday work onemployees rest day

CBA may stipulate for higher rates


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Right to Weekly Rest Day

Employers are to provide every employee a rest period ofnot less than twenty four (24) consecutive hours after everysix (6) consecutive normal work days

Emergency Rest Day work may be required under theconditions set forth in Art. 92.


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Compensation for

Rest Day, Sunday or Holiday Work

For work done on rest day, and special holidays orspecial day, the employer must pay the employee:

1. regular remuneration

2. premium pay of 30% of the regular remuneration

An employees rest day can be any day of the week;work on Sunday, if it is not the employees rest day, doesnot give any extra pay, unless the law on holiday pay isapplicable

Article 93 Article 94

REST DAY / SPECIAL HOLIDAYPAY: additional THIRTY(30%) PERCENT of regularpay for working on theagreed rest day{130%).

REGULAR HOLIDAY: additionalONE HUNDRED (100%)PERCENT of regular wage(200%).


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Employees not entitled to Holiday Pay:

1. Those of the government and any of its political

subdivisions, including government-owned and/orcontrolled corporations;2. Those of retail and service establishments regularly

employing less than 10 workers;3. Domestic helpers and persons in the personal service of

another;

4. Managerial employees as defined in Book III of the LaborCode;5. Field personnel and other employees whose time and

performance are unsupervised by the employer, includingthose who are engaged on task or contract basis, purelycommission basis, or those who are paid a fixed amount

for performing work irrespective of the time consumed inthe performance thereof.


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Rule on two successive Regular Holidays

Where there are 2 successive regular holidays, like HolyThursday and Good Friday, an employee may not be paid forboth holidays if he absents himself from work on the dayimmediately preceding the first holiday, unless he works onthe first holiday, in which case he is entitled to his holiday payon the second holiday (Section 10, Rule IV, Book III,Implementing rules and Regulations)

Employees who are on leave with pay are entitled to holidaypay. And where the day immediately preceding the holiday isthe scheduled rest day of the employee, he shall be deemedto be on leave of absence on that day, n which case he shallbe entitled to the holiday pay if he worked on the dayimmediately preceding the rest day (Section 6, Rule IV, Book

III, Implementing rules and Regulations)


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Holiday Work

LEGAL HOLIDAY PAY (ARTICLE 94); for the unworkedELEVEN (11) HOLIDAYS under EO 203, the employee isentitled to his regular pay.

Premium pay is 200% of basic wage

Employee must be present on day immediatelypreceding regular holiday unless on leave of absencewith pay

Excluded are retail/service establishments with lessthan ten (10) workers


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Holiday Work

Regular Holidays

New Years Day January1

Maundy Thursday Movable

Good Friday Movable

Araw ng Kagitingan April 9Labor Day May 1

Independence Day June 12

National Heroes Day Last Sunday (August)

Bonifacio Day November 30Eidul Ftr Movable

Christmas Day December 25

Rizal Day December 30


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Holiday Work

Special Days

Nationwide Special Days

November 1 - All Saints Day

December 31 - Last Day of the Year

Special Non-Working Holidays Special Public Holidays

Special National Holidays

Special Working Holiday

Workers are entitled only to their regular basicwage for work on this day

Day is actually considered a regular working day


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Premium Pay for Rest Day/Holiday Work REST DAY / SPECIAL HOLIDAY PAY: additional THIRTY (30%)

PERCENT of regular pay for working on the rest day (130%).

SPECIAL HOLIDAY and REST DAY PAY: where the specialholiday is also the employee's rest day, he shall be entitled toan additional FIFTY (50%) PERCENT of his regular pay (150%).

There are two kinds of special holidays, national and local.On National Special Holidays (November I," December 31)and Local Special Holidays (Lopez Jaena, Evelio Javier) theprinciple of no work, no pay" applies.

Local Special Holidays, unless declared as non-working", aregenerally regular working days and the employee is onlyentitled to his regular pay if he works.


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REGULAR HOLIDAY: additional ONE HUNDRED (100%) PERCENTof regular wage (200%).

REGULAR HOLIDAY and REST DAY: additional ONE HUNDRED

SIXTY (160%) PERCENT of regular wage (260%).

DOUBLE HOLIDAY: additional TWO HUNDRED (200%) PERCENT ofregular pay(300%)


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Service Incentive Leave

SERVICE INCENTIVE LEAVE (ARTICLE 95): FIVE (5) DAYS leave withpay, convertible to cash if unused. Benefit no longer applies ifthe employee is already enjoying Vacation Leave with Pay forat least five (5) days.

The employee shall be entitled to SIL only after one (1) year ofservice, unlike the 13th Month Pay, the computation of whichshould begin from the start of employment


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Maternity Leave (SSS)

Paternity Leave (RA No. 8187)

Married male employee

7 days, 1st 4 deliveries, lawful wife

Solo Parents (RA No. 8972) Parental Leave, 7 days

Flexible Work Schedule

Battered Woman Leave (RA No. 9262)

10 days, extendible as necessary Certification from prosecutor or Brgy officials that

application for protection order has been filed


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Service Charges

(ARTICLE 96):

The Service Charges collected by, hotels,restaurants and similar establishments shall bedistributed at the rate of EIGHTY-FIVE (85%) PERCENT toall covered employees and FIFTEEN (15%) PERCENT toManagement.

In case the Service Charge is abolished, theshare of the employees based on the 12-month

average preceding the abolition shall be integrated totheir salary.


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13th-Month Pay

ONE-TWELFTH (1/12) total annual earnings on basic salary;"Commissions" are considered part of the basic salary if theseare direct remuneration for services rendered. Right accruesfrom the fist day of employment

Additional income based on wage but not part of the wage

All rank-and-file employees regardless of their designation oremployment status and irrespective of the method by whichtheir wages are paid, are entitled to this benefit, provided thatthey have worked for at least one month during the calendar

year

If the employee worked for only a portion of the year, the 13thmonth pay is computed pro rata (in proportion to the length oftime he worked during the year)


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Non-Diminution of Benefits

Article 100

Concept:

Benefits given to employees cannot be taken back orreduced unilaterally by the employer

Employer Practice / Policy

Grant of benefit over a long period of time

Practice is consistent and deliberate Practice not due to error in construction or application


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The employer erroneously computed the wage increases givento the employees. Upon the discovery thereof, the employermade salary deductions to recover the overpayment. Does the

employers act violate the principle of non-diminution ofbenefits?

No. Diminution of benefits is the unilateral withdrawal by theemployer of benefits already enjoyed by the employees. There

is diminution of benefits when it is shown that: (1) the grant orbenefit is founded on a policy or has ripened into a practiceover a long period; (2) the practice is consistent and deliberate;(3) the practice is not due to error in the construction orapplication of a doubtful or difficult question of law; and (4) thediminution or discontinuance is done unilaterally by theemployer.

TSPIC CORPORATION VS. TSPIC EES UNION , G.R. No. 163419,Feb.. 13, 2008

Pa ment of Wages


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Payment of Wages

Forms of Payment (Art. 102)

Payment must be in legal tender only

Time of Payment (Art. 103)

Wages shall be paid at least once every two(2) weeks ortwice a month at intervals not exceeding sixteen (16) days

Place of Payment (Art. 104)

Wages shall be made at or near the place of undertaking,except as otherwise provided by such regulations as theSecretary of Labor may prescribe under conditions to ensuregreater protection of wages

Direct Payment of Wages to Worker(Art 105)

Force Majeure, to authorized representative Death, to heirs without need of intestate proceedings


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Job / Labor-Only Contracting(Arts. 106-109)

Indirect Employer / Solidary Liability

Principal deemed indirect employer and solidarily liable withcontractor for wages and other benefits of latters employees

Principal still liable even he paid proper wages/benefits to thecontractor

Contractor may recover from Principal only if he has paidemployees

Principal is not liable for illegal dismissal, other violations,

unless there is conspiracy

J b/L b C t ti


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Job/Labor Contracting

Permissible Job Contracting

The contractor carries on an independent business and

undertakes the contract work on his own account under hisown responsibility according to his own manner and method,free from control and direction of his employer or principal inall matters connected with the performance of the workexcept as to the results thereof.

The contractor has substantial capital or investment in the

form of tools/equipment, machineries, work premises andother materials, which are necessary in me conduct ofbusiness.

Conditions for Permissible Job Contracting

1. The contractor must be duly licensed by DOLE.2. There should be a written contract between the contractor

and the principal that will assure the employees at leastthe minimum labor standards and benefits provided byexisting laws.


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Prohibited Activities

1. Labor-only contracting;

2. Contracting out of work or service performed by unionmembers that interferes with, restrains or coercesemployees in the exercise of their right to self-organization;

3. Contracting out of work that will either displace employeesof the principal employer or reduce their work hoursand/or take-home pay;

4. Contracting out of work or service that is directory relatedto the business and operation of the employer during theexistence of a labor dispute involving his employees,regardless of whether the dispute directly involves workstoppages, except when authorized by competentauthority when justified by public Interest;

5. Contracting out with recruitment, placement or any otheragency which is not duly licensed as contractor; and

6. Contracting out of positions vacated by regular employee.


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JOB CONTRACTING LABOR-ONLY CONTRACTING

There is no employer-employee

relationship between theprincipal and the employees

of the contractor

Employer-employee

relationship exists

The principal Is considered onlyan "indirect'' employer under

Article 107 of the Labor Code

The principal is considered thedirect employer under

Article 106 in Labor-onlyContracting

The principal in Job Contractingis made jointly and severally

liable only, for the payment of

wages. Other claims are notincluded.

The principal in JobContracting is made jointlyand severally liable for the

payment of wages, andOther claims are included.

The contractor provides specificservices or undertakes a

specific job

What is provided is onlymanpower or personnel to

work for the principal.


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Workers Preference(Art. 110)

Preferred Credit, for unpaid wages and other moneyclaims in the event of bankruptcy

Not a lien on specific property/ies of the employer

Enforced during judicial proceedings for declaration ofbankruptcy and liquidation of properties.


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Prohibition Regarding Wages

NON-INTERFERENCE IN DISPOSAL (ARTICLE 112): force or obligeemployee to purchase merchandise or property fromemployer or make use of employer's service or store.

WAGE DEDUCTION (ARTICLE 113): no deduction except forpremium for insurance; union dues and authority to check-off

with consent employee; when authorized by law or theSecretary of Labor.

DEPOSIT FOR LOSS/DAMAGE (ARTICLES 114-115): no depositfrom which to deduct loss or damage of tools, materials, orequipment supplied by employer except when such deposits

are customary or authorized by business practice, or isnecessary or desirable as may be determined by theSecretary of Labor. Deductions can be made only after dueprocess and the employee's responsibility therefore isestablished.


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WITHHOLDING OF WAGES/KICKBACKS (ARTICLE 116):

withholding of wages by force, stealth, intimidation, threats,etc.

DEDUCTION TO ENSURE EMPLOYMENT (ARTICLE 117): deductionas consideration of a promise of employment or retention ofemployment

RETALIATORY MEASURES (ARTICLE 118): refusal to pay orreduction of pay as retaliation for the filing of complaint orgiving of testimony by the employee against the employer.

FALSE REPORTING (ARTICLE 119): making false statements,

reports or records regarding wages.


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LABOR STANDARDSConditions of Employment

Wages

Labor Law Review (2008)

Stellex Law Review Center


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BASIC LABOR STANDARDS

Minimum Wage

Overtime Pay

Rest Day Premium Pay

Premium Pay for Holiday Work

Holiday Pay

Night Shift Differential Service Incentive Leave Pay

13th Month Pay

Maternity / Paternity Leave

Solo Parents Leave

Battered Womans Leave SSS Contributions

Retirement Pay


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Basic Principles on Wages

No Work, No Pay (A fair days wage for a fair days labor)

Equal Pay for Equal Work

Ability to Pay Minimum Wage Immaterial

Non-diminution of benefits

Statutory benefits are apart from Contractual benefits


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The Calendar Year

301 (2) Working Days *

51 (2) Rest Days **

11 Regular Holidays *

2 Special Days **

365 (6)

* Paid Days by Law

** Not Paid, unless by Contract

or Employer Policy


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Daily / Monthly Paid

Monthly-Paid paid/deemed paid for all days, whetherworked or unworked. Factor for wage conversion is 365 days

Daily-Paid paid only for actual work days. Factor for

wage conversion is 313, 301, 262, 251

Difference is that unworked Rest Days are paid days forMonthly-Paid employees.

The rule is that employees are Daily-Paid.


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Wages

WAGE includes remuneration or earnings, howeverdesignated, capable of being expressed in terms of money,whether fixed or ascertained on a time, task, piece, orcommission basis, or other method of calculating the same,which is payable by an employer under a written or unwritten

contract of employment for work done or to be done, or forservices rendered or to be rendered and includes the fair andreasonable value, as determined by the Secretary of Laborand Employment, of board, lodging and other facilitiescustomarily furnished by the employer to the employee.


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Wages

Article 97(f): Definition

Remuneration or earnings for work done orservices rendered

Capable of being expressed in money,whether fixed or ascertained (time, task,piece or commission basis

Includes facilities and Supplements


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Facilities / Supplements

Facilities

Items of expense necessary for workers and familysexistence and subsistence.

Part of wage if supplied by employer

Supplements

Extra remuneration, special privileges/benefits overand above basic wages

Distinction:

A facility is deductible from basic wage; asupplement is addition to basic wage. The purpose,not the kind, determines the nature of the item


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Facilities

Customarily furnished

Voluntarily accepted in writing by worker Charged at fair / reasonable value

70% of value of meals

Cost of operation / maintenance


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Supplements

Allowances

Commissions Bonus

Part of basic wage by agreement / contract /employer policy


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BONUS

It is a supplement or employment benefit given undercertain conditions.

It is an amount granted voluntarily to an employee forhis industry and loyalty which contributed to the successand realization of profits of the employers business; an actof generosity.

It is not demandable and enforceable obligation; butit becomes so when it is made part of the wage orcompensation

It is part of the wage if it is an additional

compensation which the employer promised to givewithout any conditions imposed for its payment but if it ispaid only if profits are realized or a certain amount ofproductivity achieved, it cannot be considered part of thewage


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Wages

Basic / Minimum Wage

Time-Based: factor is 8 hours, set by law

Productivity: rate, based on time and motion studiesfactoring minimum wage

Cash wage plus facilities

Compensation Package

Basic wage and supplements, based on contract or

company policy


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Minimum Wage Rates

Minimum Wage means the lowest wage rate fixed by thelaw that an employer can pay his employees

Paying less than the minimum wage is illegal and thecomplaint may be brought before the DOLE regional office orthe Labor Arbiter


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Methods of Wage Fixing

1. FLOOR METHOD: an amount Is designated as the floorminimum below which the wage is illegal. Those receivingwages above the floor minimum do not get an increase.

2. SALARY CEILING: the wage increase is given to those who

are receiving wages below the salary ceiling. Those above theceiling do not benefit from the wage increase.

3. EXEMPTION FROM WAGE INCREASES: An application maybe filed with the Regional Tripartite Productivity Wage Board(RTPWB) by; distressed employers, new business enterprises,

retail/service establishments employing not more than 10employees, establishments adversely affected by naturalcalamities.


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May the RTWPB disregard the Floor-Wage or the Salary-Ceiling method to fix the minimum wage rates?

No. there are two ways of fixing the minimum wage: the "floor-wage" method and the "salary-ceiling" method.

The RTWPB did not set a wage level nor a range to which awage adjustment or increase shall be added. Instead, it

granted an across-the-board wage increase of P15.00 to allemployees and workers of Region 2. In doing so, the RTWPBexceeded its authority by extending the coverage of theWage Order to wage earners receiving more than theprevailing minimum wage rate, without a denominated salaryceiling.

Metrobank vs. NWPCG.R. No. 144322, February 6, 2007


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Under what conditions may a retail/service establishment beexempted from the coverage of the minimum wage law?

For a retail/service establishment to be exempted from

the coverage of the minimum wage law, it must be shown thatthe establishment is regularly employing not more than 10workers and had applied for exemptions with and as

determined by the appropriate Regional Board.

C. Planas Commercial vs. NLRCG.R. No. 121696, Feb. 11, 1999


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Wage Studies, Wage Agreements and WageDetermination

National Wages and Productivity Commission

-prescribes rules and guidelines for the determinationof appropriate wages in the country

Regional Tripartite Wages and Productivity Boards

-determines and fixes minimum wage ratesapplicable in their region, provinces or industriestherein and to issue the corresponding wage orders,

subject to guidelines issued by the Commission


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Wage Order

- an order issued by the Regional Board whenever theconditions in the region so warrant after investigating andstudying all pertinent facts and based on the standards andcriteria prescribed by the Labor Code, the Regional Boardproceeds to determine whether to issue the same or not.

- it shall take effect after 15 days from its complete publicationin at least one newspaper of general circulation in the region

- Only one Wage Increase every 12 months

St d d /C it i f Mi i W Fi i


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Standards/Criteria for Minimum Wage Fixing

1. The demand for living wages;2. Wage adjustment vis--vis the consumer price index;3. The cost of living and changes or increases therein;4. The needs of workers and their families;5. The need to induce industries to invest in the countryside;6. Improvements in standards of living;

7. The prevailing wage levels;8. Fair return of the capital invested and capacity to pay of

employers;9. Effects on employment generation and family income;

and

10.The equitable distribution of income and wealth along theimperatives of economic and social development.


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Prohibition against Injunction

- No preliminary or permanent injunction or temporaryrestraining order may be issued by any court, tribunal, orother entity against any proceedings before theCommission or the Regional Boards.

Administration and Enforcement


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Administration and EnforcementVisitorial / Enforcement Power

(Art. 128)

1) Visitorial Power

- Power of the Secretary of Labor or his duly authorized

representatives to have access to employers records andpremises at any time whenever work is being undertakentherein, and the right to copy therefrom, to question anyemployee and investigate any fact, condition or matterwhich may be necessary to determine violations or whichmay aid in the enforcement of the Labor Code and of anylabor law, wage order, or rules and regulations.

) Enforcement Power


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)

Power to issue Compliance Orders for violation of laborstandards and occupational health and safety standards.

Issue writs of execution for underpayment of wages /benefits

Employer may contest inspection results within 7days and if evidentiary issues are involved,indorsement to the NLRC

order stoppage of work or suspension of operationsfor non-compliance of occupation and healthstandards when such poses grave and imminentdanger to the health and safety of the workers in the

workplace.

Hearing shall be conducted to determine whetherorder will be lifted or not.

Recovery of Wages, Simple Money claims


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y g p yand Other Benefits

(Art. 129)

1. The claim is presented by an employee or a personemployed in domestic or household service, or ahousehelper;

2. The claim arises from employer-employee relations;

3. The claimant does not seek reinstatement;4. The aggregate money claim of each employee or

househelper does not exceed P5,000.00.

If there is question of reinstatement, or if the claimants

demand exceeds P5,000.00, the labor arbiter has jurisdictionover the case arising from employer-employee relations,pursuant to Art. 217

EXCEPTION : Claims for employees compensation, socialsecurity, Philhealth and maternity benefits

ART 128 ART 129


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ART. 128 ART. 129

Whoexercisespower

The Sec. of Laboror any dulyauthorized

representative

Only the Regional Directoror authorized hearing

officers

MattersCovered

All matters affected bythe Labor Code or

any labor law

Money claims andbenefits

Amount ofclaim

No limit Aggregate claim of eachcomplainant should not

exceed P5,000.00

Nature ofdecision/Appeal

Administrative;appealable to the

Sec. of Labor

Adjudicatory; appealableto the NLRC within Five

(5) Days


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complaint for routine inspection was filed by certain

employees. While the case was pending, the employees were

dismissed. Does the DOLE Director still have jurisdiction overthe case since there is no more employer-employeerelationship?

Yes. Jurisdiction is determined as f the date of the filing of the

complaint. The DOLE Director retains jurisdiction even thecomplaining employees had been already been dismissed.

Rizal Security & Protective Services Inc.vs. Maraan

GR No. 124915, Feb. 18, 2008

W Di t ti


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Wage Distortion

Nature

Mandated wage increase results in ELIMINATION ofquantitative differences in the rates of pay; or SEVERECONTRACTION of intentional quantitative difference in wagerates between and among employee groups in anestablishment as to EFFECTIVELY OBLITERATE the wagedistinctions in such wage structure based on SKILLS/ LENGTH

OF SERVICE and OTHER LOGICAL BASES OF DIFFERENTIATION.

EffectIn organized establishments, the distortion shall be

resolved through the grievance machinery and voluntaryarbitration; in unorganized establishment, the distortion shall

be the subject of mediation by the NCMB and compulsoryarbitration by the NLRC.The correction of the distortion does not require that the

previous difference be restored in exactly the same amount. Itis enough that a substantial difference is achieved.


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Wage Distortion

Distortion issues are considered on regional basis;disparity of pay scales for the same or comparable jobsin different regions, not wage distortion

Wage adjustments voluntarily initiated by employer notsubject to wage distortion charge


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Working Conditions for Special Groups ofEmployees

Employment of Women

Maternity Leave (RA 7322)

Leave with pay for SIXTY (60) DAYS, for Normal

delivery, SEVENTY-EIGHT (78) DAYS for Caesarianoperation, for the first FOUR. (4) deliveries, for pregnantwomen whether married or unmarried.

Paternity Leave (RA 8187)

Leave with pay for SEVEN (7) DAYS for the first FOUR(4) deliveries of the legitimate spouse with whom he iscohabiting.

Acts of Discrimination


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Acts of Discrimination

1. DISCRIMINATION PROHIBITED (ARTICLE 135)

-payment of lesser compensation, favoring maleworkers for promotion, training, study andscholarship grants. Criminal action may be institutedunder this provision.

2. PREGNANCY (ARTICLE 137)

-discharge or refuse admission back to workaccount of pregnancy.

3. SPECIAL EMPLOYMENT (ARTICLE 138)

-women working in nightclubs, massageparlors, cocktail lounge and similar establishmentsunder the effective control or supervision of theemployee for a substantial period of time shall beconsider an employee of said establishments.


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Stipulation against Marriage (ARTICLE 136)

-unlawful to require as condition for employment that a

woman shall not get married, or to stipulate that upon gettingmarried she shall be deemed resigned, or separated, or todischarge, discriminate or otherwise prejudice a woman onaccount of marriage.

Prohibited Acts1. To deny any woman employee the benefits provided for

or to discharge any woman employed by him for thepurpose of preventing her from enjoying any of thebenefits provided under the LC;

2. To discharge such woman on account of her pregnancy;and

3. To discharge or refuse the admission of such woman uponreturning to her work for fear that she may again bepregnant.

Is a No Spouse / Anti Nepotism policy as a condition for


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Is a No-Spouse / Anti-Nepotism policy as a condition forhiring or continuous employment valid? What is thereasonable business necessity rule?

Yes, provided it is a Bona Fide Occupational Qualification.There must be a compelling business necessity for which noalternative exists other than the discriminatory practice. Tojustify a bona fide occupational qualification, the employermust prove two factors: (1) that the employment

qualification is reasonably related to the essential operationof the job involved; and, (2) that there is a factual basis forbelieving that all or substantially all persons meeting thequalification would be unable to properly perform theduties of the job. The reasonableness of the policy

(reasonable business necessity rule) is to be considered inthis light.

Star Paper Corp. v. SimbolG.R. No. 164774, Apr 12/06

Is the policy of a pharmaceutical company prohibiting its


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p y p p y p gemployees from marrying employees of any competitorcompany valid?

Pedro was a Med-Rep of Glaxo in Cam. Sur. He fell in love andlater married Betsy, Branch Coordinator of Astra, Glaxoscompetitor. Even before their marriage, Pedro was reminded of apossible conflict of interest that was proscribed by Glaxos policywhich was stressed in Pedros employment contract. He was thenadvised that should they marry, he had to inform Glaxo which ofthem should resign from his or her job. As he chose not tp comply,Pedro was transferred to Butuan City. He defied the transfer andsued for constructive dismissal.

Petitioner contends that the policy against employees marrying

employees of competitor companies violates the equalprotection clause of the Constitution because it creates invaliddistinctions among employees on account only of marriage, andthat the policy restricts the employees right to marry.


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Glaxo argues that considering the nature of its business,the prohibition is based on valid grounds. It has agenuine interest to ensure that its employees avoid any

activity, relationship or interest in any competitorcompany that may conflict with their responsibilities tothe company or which may influence their actions anddecisions and consequently deprive Glaxo of legitimateprofits.

The policy is also aimed at preventing a competitorcompany from gaining access to its secrets, proceduresand policies.

Glaxo also asserts that the policy does not prohibit

marriage per se but only proscribes existing or futurerelationships with employees of competitor companies,and is therefore not violative of the equal protectionclause.

Held: Glaxo has a right to guard its trade secrets manufacturing


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Held: Glaxo has a right to guard its trade secrets, manufacturingformulas, marketing strategies and other confidential programsand information from competitors,

The prohibition against personal or marital relationships withemployees of competitor companies upon is reasonable underthe circumstances because relationships of that nature mightcompromise the interests of the company. In laying down theassailed company policy, Glaxo only aims to protect its interests

against the possibility that a competitor company will gain accessto its secrets and procedures.

Glaxos right to protect its economic interests cannot be denied.The Constitution recognizes the right of enterprises to adopt andenforce such a policy to protect its right to reasonable returns oninvestments and to expansion and growth.

Duncan Assn. of Detailmen v. Glaxo Wellcome Inc.G.R. No. 162994, September 17, 2004

RA 7877


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RA 7877(Sexual Harassment Act of 1995

Section 3. Work, Education or Training-related SexualHarassment Defined.

Work, Education or Training-related SexualHarassment is committed by an employer, employee,manager, supervisor, agent of the employer, teacher,instructor, professor, coach, trainor, or any other personwho, having authority, influence or moral ascendancyover another in a work or training or educationenvironment, demands, requests, or otherwise requires

any sexual favor from the other, regardless of whetherthe demand, request, or requirement for submission isaccepted by the object of said Act.


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a) In a work-related or employment environment, sexualharassment is committed when:

1. The sexual favor is made as a condition in the hiring or inthe employment, re-employment or continuedemployment of said individual, or in granting saidindividual favorable compensation, terms conditions,promotions, or privileges, or the refusal to grant the sexualfavor results in limiting, segregating or classifying the

employee which in any way would discriminate, depriveor diminish employment opportunities or otherwiseadversely affect said employee;

2. The above acts would impair the employees rights orprivileges under existing labor laws; or

3. The above acts would result in an intimidating, hostile, oroffensive environment for the employee.


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E l t f Mi


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Employment of Minors

Minimum Employable Age (Art. 139)

Below 15 years, or when child works directly for hisparents or guardians and the employment does notinterfere with his schooling

between 15-18 years, only at such hours and days asdetermined by the Secretary of Labor

below 18 years, cannot be employed in hazardous or

deleterious undertakings as determine by Secretary ofLabor.


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SPECIAL PROTECTION AGAINST CHILD ABUSE(RA 7658)

GENERAL PROHIBITION: below 15 years, cannot work in any public or private

institutions.

UNDER SUPERVISION OF PARENTS:

employment does not endanger child's life, safety, healthand morals; does not impair normal development; and,employer, parent or guardian provides child with primaryand secondary education prescribed by DECS.

PUBLIC ENTERTAINMENT/CINEMA/TV:

employment does not involve ads or commercialspromoting alcoholic beverages, Intoxicating drinks,tobacco or its by-products, or exhibiting violence; writtencontract approved by DOLE; conditions in 6.5.2.2 aboveare met.

usa labor standards 2 2009

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