Conditions of Employment

CONDITIONS OF EMPLOYMENT –
INTRODUCTION
Scope
• Coverage of provisions on conditions of employment:
• ART. 82. COVERAGE. The provisions of this Title shall apply to employees
in all establishments and undertakings whether for profit or not.
• XPNS:
• government employees
• managerial employees (including officers and members of the
managerial staff and supervisors, under implementing rules)
• field personnel
• members of the family of the employer who are dependent on him for
support
• domestic helpers
• persons in the personal service of another, and
• workers who are paid by results as determined by the Secretary of
Labor in appropriate regulations
GOVERNMENT EMPLOYEES
• The terms and conditions of their employment are governed by the Civil
Service Law.
• In case of government-owned or controlled corporations with original
charters, terms and conditions of employment may be governed by such
legislated charters.
• Government-owned or controlled corporations without original charters
and created under the Corporation Code are governed by the Labor Code.
MANAGERIAL EMPLOYEES AND MANAGERIAL STAFF

• Managerial Employees: as defined in the implementing rules
• 1. Their primary duty consists of the management of the establishment in
which they are employed or of a department or sub-division thereof.
• 2. They customarily and regularly direct the work of two or more employees
therein.
• 3. They have the authority to hire or fire employees of lower rank; or their
suggestions and recommendations as to hiring and firing and as to the
promotion or any other change of status of other employees, are given
particular weight (Sec. 2[b], Rule I, Book III, Rules Implementing the Labor
Code).
• OFFICERS OR MEMBERS OF MANAGERIAL STAFF:
• 1. Their primary duty consists of the performance of work directly related to
management policies of their employer;
• 2. They customarily and regularly exercise discretion and independent

judgment; and
• 3. They regularly and directly assist a proprietor or -- a managerial employee

whose primary duty consists of the management of the establishment in which
he is employed or subdivision thereof; or execute under general supervision
work along specialized or technical lines requiring special training, experience,
or knowledge; or execute, under general supervision, special assignments and
tasks; and
• 4. They do not devote more than 20 percent of their hours worked in a work
week to activities which are not directly and closely related to the performance
of the work described above (Sec. 2[c], Rule I, Book III, Rules Implementing the
Labor Code)
• Will include supervisors.
• Meaning, supervisors are not covered by the provisions on conditions of

employment.
• BUT under labor relations, supervisors are different from managers.

Supervisors are not considered part of the management and they are allowed to
form unions, BUT they cannot join rank-and-file unions
FIELD PERSONNEL
• Field personnel refers to non-agricultural employees who:
• 1. Regularly perform their duties away from the principal place of
business or branch office of the employer; and
• 2. Whose actual hours of work in the field cannot be determined with

reasonable certainty (Sec. 27, Rule II, Book III, Rules Implementing the
Labor Code).
• e.g. outside sales personnel, agents on commission basis, or insurance

field agents (San Miguel Brewery vs Democratic Labor Union, G.R. No. L-
18353, 31 July 1963); meter readers, medical representatives(Duka,
Labor Laws and Social Legislation, A Barrister’s Companion, 2016, p.
118).
• Bus drivers and conductors not considered field personnel. (Autobus

Transport System, Inc. V. Bautista, G.R No. 156367, 16 May 2005).
• Time of departure and arrival is known. (also during stop-overs)
• In every depot, there is always the dispatcher whose function is

precisely to see to it that the bus and its crew leave the premises at
specific times and arrive at the estimated proper time
MEMBERS OF THE FAMILY

• Members of the Family:
• They are exempted from the coverage, for the support given by the
employer may exceed the benefit for which an employee is entitled under
appropriate labor provisions. To cover them under Art.82, may create
labor problems that would eventually break-up the family, which is the
evil sought to be prevented.
• Note that the employee must be a member of the family of the employer
and he must be dependent on the employer for support.
DOMESTIC SERVANTS AND PERSONS IN THE PERSONAL SERVICE OF

ANOTHER
• Domestic Servants/Persons In The Personal Service Of Another are those
who:
• 1. Perform such services in the employer's home which are usually

necessary or desirable for the maintenance and enjoyment thereof; or
• 2. Minister to the personal comfort, convenience, or safety of the

employer as well as the members of his employer's household (Sec. 2[d],
Rule I, Book III, Rules Implementing the Labor Code).
• Note: They are not covered by this Title because terms and conditions
of employment are governed by the provisions of R.A. 10361
(Kasambahay Law).
• Note under Kasambahay Law:
• Domestic worker or "Kasambahay" refers to any person engaged in

domestic work within an employment relationship such as, but not
limited to, the following: general househelp, nursemaid or "yaya", cook,
gardener, or laundry person, but shall exclude any person who performs
domestic work only occasionally or sporadically and not on an
occupational basis.
• Domestic work refers to work performed in or for a household or

households.
• Note that even if the NATURE of the work is “domestic” if it is not performed
in or for a household or not in the service of the family of the employer, the
worker may be considered as covered by the provisions on conditions of
employment. (and not under the exclusion)
• A laundrywoman in staff houses of a company or within the premises of the

business of the employer, not actually serving the family of the employer, is a
regular employee. She is not included in the definition of domestic servants.
(Apex Mining Co. Inc. v NLRC, G.R. No. 94951, 22, April 1991).
WORKERS PAID BY RESULTS

• Workers who are paid by results include those who are paid on piece-work,
"takay," "pakiao," or task basis.
• Payment of this type of worker is determined by the results of the work

performed or the number of units produced, not the number of hours used in
the completion of the job or the time spent in production (Poquiz, 2012, p. 175)
• Tailors and similar workers hired in the tailoring establishment, although

paid weekly wages on piece-work basis, are employees and not independent
contractors, and accordingly, as regular employees paid on piece-rate basis,
they are not entitled to overtime pay, holiday pay, premium pay for
holiday/rest day and service incentive leave pay (Villaga v. NLRC, G.R. No.
75038, August 23, 1993)
WORKING CONDITIONS AND REST PERIODS

Art. 83 – Hours of Work
• Article 83. Normal hours of work. The normal hours of work of any employee shall not exceed eight in
a day. Health personnel in cities or municipalities with a population of at least one million or in hospitals
or clinics with a bed capacity of at least one hundred shall hold regular office hours for eight hours a day,
for five days a week, or a total of forty hours a week, exclusive of time for meals, except where the
exigencies of the service require that such personnel work for six days, forty-eight hours, in which case
they shall be entitled to an additional compensation of at least 30 percent of their regular wage for work
on the sixth day. For purposes of this Article, “health personnel” shall include: resident physicians,
nurses, nutritionists, dieticians, pharmacists, social workers, laboratory technicians, paramedical
technicians, psychologists, midwives, attendants and all other hospital or clinic personnel
• Normal hours of work = shall not exceed 8 hours a day*.

• *day = workday
• Workday is the 24-hour period which commences from the time the employee regularly starts
to work.
• Important IRT holiday pay, special non-working days, etc.
• Exception:
• Compressed workweek
• Note: Health Personnel = different rule in a work WEEK (not workday)
• Can the employer impose a workday of less than 8 hours?

• Yes. The eight-hour work requirement does not preclude the employer in the exercise of its
management prerogatives to reduce the number of working hours, provided that there is no
diminution of existing benefits. The law imposes a maximum number of hours and not a
minimum.
• This will constitute part-time work which is not prohibited under the Labor Code.
• NOTE: Under Art. 124 (LC), as amended by R.A. 6727, wage proportionate to part-time work is
recognized. The wage and benefits of a part-time worker are in proportion to the number of
hours worked
• Is the 8-hour workday required to be continuous?

• No. Minimum normal 8 working hours fixed by law need not be continuous to constitute the
legal working day. It may mean broken hours of 4 hours in the morning and 4 hours in the
evening, or any variation thereof provided the total of 8 hours is accomplished within the
workday.
COMPRESSED WORKWEEK
• What is a Compressed Workweek?
• This is an arrangement whereby the employee will work for more than 8 hours per workday
but shall not exceed 12 hours per workday nor 48 hours per week
• What are the requisites before a Compressed Workweek can be implemented by the employer?
• 1. The scheme is expressly and voluntarily supported by majority of the Employees
• 2. In firms using substances, or operating in conditions that are hazardous to health, a
certification is needed from an accredited safety organization or the firm’s safety committee
that work beyond 8 hours is within the limit or levels of exposure set by DOLE’s occupational
safety and health standards.
• 3. The DOLE Regional Office is duly notified (Department Advisory Order No. 2, Series of 2004).
ART. 84 – HOURS WORKED

• Article 84. Hours worked. Hours worked shall include
(a) all time during which an employee is required to be on duty or to be at a prescribed
workplace, and
(b) all time during which an employee is suffered or permitted to work. Rest periods of short
duration during working hours shall be counted as hours worked
ART. 83 – NORMAL HOURS OF WORK

• what is “hours worked” or “working time”?
• (a) All time during which an employee is required to be on duty or to be at the employer's
premises or to be at a prescribed workplace; and
• (b) All time during which an employee is suffered or permitted to work. (Section 3, Rule I,
Labor Code Implementing Rules and Regulation, Book III)
Art. 84 – Hours Worked
• Principles in determining hours worked:
• 1. All hours which the employee is required to give to his employer regardless whether such
hours are spent in productive labor or involve physical or mental exertion are considered hours
worked.
• 2. Rest period is excluded from hours worked, even if employee does not leave his workplace,
it being enough that:
• a. He stops working
• b. May rest completely
• c. May leave his workplace, to go elsewhere, whether within or outside the premises
of the workplace
• But note: Rest periods or coffee breaks running from five (5) to twenty (20)
minutes shall be considered as compensable working time. (IRR, Book III, Rule I,
Sec. 7)
• 3. If the work performed was necessary, or it benefited the employer, or the employee could
not abandon his work at the end of his normal working hours because he had no replacement,
all time spent for such work shall be considered 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 be considered working time:
• a. If the imminence of the resumption of the work requires the employees’ presence
at the place of work; or
• b. If the interval is too brief to be utilized effectively and gainfully in the employees
own interest
SOME RULES ON HOURS WORKED

• SECTION 5. Waiting time. — (a) Waiting time spent by an employee shall be considered as working
time if waiting is an integral part of his work or the employee is required or engaged by the employer to
wait. (b) An employee who is required to remain on call in the employer's premises or so close thereto
that he cannot use the time effectively and gainfully for his own purpose shall be considered as working
while on call. An employee who is not required to leave word at his home or with company officials
where he may be reached is not working while on call.
• When is waiting time considered working time?

• It shall be considered as working time if:
• 1. Waiting is an integral part of this work;
• 2. The employee is required or engaged by the employer to wait; or
• 3. When employee is required to remain on call in the employer’s premises or so close
thereto that he cannot use the time effectively and gainfully for his own purpose (IRR,
Book III, Rule I, Sec. 5)
Some rules on hours worked

• NOTE: An employee who is not required to leave word at his home or with company officials
where he may be reached is not working while on call (IRR, Book III, Rule I, Sec. 5(b)).
• The controlling factor is whether waiting time spent in idleness is so spent predominantly for
the employer’s benefit or for the employee’s.
• What is the difference between engaged to wait and waiting to be engaged?

• In engaged to wait, waiting is an integral part of the job; the time spent waiting is compensable, while
in waiting to be engaged, idle time is not working time; it is not compensable.
• Ex: • Engaged to wait - a company driver who waits while his boss attends meetings must be
compensated for his waiting time. • Waiting to be engaged – a bus driver who is scheduled to drive at
8am arrives at 7am. The bus driver is waiting to be engaged from 7am to 8am and is not entitled to
compensation.

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CONDITIONS OF EMPLOYMENT –

MANAGERIAL EMPLOYEES AND MANAGERIAL STAFF

• 2. They customarily and regularly exercise discretion and independent

• 3. They regularly and directly assist a proprietor or -- a managerial employee

• Will include supervisors.

• Meaning, supervisors are not covered by the provisions on conditions of

• BUT under labor relations, supervisors are different from managers.

• 2. Whose actual hours of work in the field cannot be determined with

• e.g. outside sales personnel, agents on commission basis, or insurance

• Bus drivers and conductors not considered field personnel. (Autobus

• In every depot, there is always the dispatcher whose function is

MEMBERS OF THE FAMILY

DOMESTIC SERVANTS AND PERSONS IN THE PERSONAL SERVICE OF

• 1. Perform such services in the employer's home which are usually

• 2. Minister to the personal comfort, convenience, or safety of the

• Note under Kasambahay Law:

• Domestic worker or "Kasambahay" refers to any person engaged in

• Domestic work refers to work performed in or for a household or

• A laundrywoman in staff houses of a company or within the premises of the

WORKERS PAID BY RESULTS

• Payment of this type of worker is determined by the results of the work

• Tailors and similar workers hired in the tailoring establishment, although

WORKING CONDITIONS AND REST PERIODS

• Normal hours of work = shall not exceed 8 hours a day*.

• Can the employer impose a workday of less than 8 hours?

• Is the 8-hour workday required to be continuous?

ART. 84 – HOURS WORKED

ART. 83 – NORMAL HOURS OF WORK

SOME RULES ON HOURS WORKED

• When is waiting time considered working time?

Some rules on hours worked

• What is the difference between engaged to wait and waiting to be engaged?

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