Subject: NCM 120

LABOR CODE
Article 281 (Probationary employment)
 Probationary employment is a period of time, no longer than six months, wherein the
employee undergoes a process of testing or observation by the employer.
 The six-month period may be extended if the employee has an apprenticeship agreement
wherein, he/she agreed to an extended probationary period.
 Within the six-month period the employee may be terminated due to a just cause or if
he/she fails to qualify as a regular employee after the six-month period.
 If the employee successfully undergoes the six-month period with no just cause for
termination and upholds the standards made known by the employer, then he/she will be
considered a regular employee.
Keypoints: (Analysis)
 Definition of Probationary Employment:
o It is a trial period for employees, lasting up to six months.
o During this time, the employee is subject to evaluation by the employer.
 Extension of Probationary Period:
o The six-month period can be extended if the employee has an apprenticeship
agreement.
o The agreement must specify an extended probationary period.
 Termination During Probation:
o The employee can be terminated within the probationary period for:
 Just cause (e.g., poor performance, misconduct).
 Failure to meet the criteria to become a regular employee.
 Outcome of Successful Completion:
o If the employee completes the probationary period without being terminated
for just cause and meets the employer's standards:
 The employee is then considered a regular employee.

ARTICLE. 83. NORMAL HOURS OF WORK

Normal Hours of Work - The normal hours of work of any employee shall not exceed eight (8)
hours a day.
 Normal Hours of Work - The normal hours of work of any employee shall not exceed
eight (8) hours a day. Health personnel in cities and municipalities with a population of at
least one million (1,000,000) or in hospitals and clinics with a bed capacity of at least one
hundred (100) shall hold regular office hours for eight (8) hours a day, for five (5) days a
week, exclusive of time for meals, except where the exigencies of the service require that
such personnel work for six (6) days or forty-eight (48) hours, in which case, they shall
be entitled to an additional compensation of at least thirty percent (30%) of their regular
wage for work on the sixth day. For purposes of this article, “health personnel” shall
include resident physicians, nurses, nutritionist, dieticians, pharmacist, social worker,
laboratory technicians, paramedical technicians, psychologists, midwives, attendants and
all other hospital or clinic personnel.

Keypoints: (Analysis)
 Location Criteria:
 Cities and municipalities with a population of at least 1,000,000
 Hospitals and Clinics with a bed capacity of at least 100.
 Regular Office Hours:
 Eight (8) hours a day.
 Five (5) days a week.
 Exclusive of meal times
 Extended Hours:
If required to work six (6) days or Forty-eight (48) hours a week:
 Entitled to additional compensation.
 At least thirty percent (30%) of their regular wage for work on the sixth day.
 Definition of Health Personnel:
 Includes resident physicians, nurses, nutritionists, dieticians, pharmacists, social
workers, laboratory technicians, paramedical technicians, psychologists, midwives,
attendants, and all other hospital or clinic personnel.

Article 85
 Meal periods - Subject to such regulations as the Secretary of Labor may prescribe, it
shall be the duty of every employer to give his employees not less than sixty (60) minutes
time-off for their regular meals. Short rest periods or 5 to 20 minute breaks, if provided,
 are considered paid time. Employees have the right to at least one hour off for regular
meals.
 Night shift - Every employee shall be paid a night shift differential of at least 10% of his
usual rate for each hour of work completed between 10:00 p.m. and 6:00 a.m.
 Overtime Work - Work may be carried out for more than eight 8 hours per day if the
employee is compensated for the extra time with an amount equal to his usual wage plus
at least twenty-five percent (25%) of it. Work performed after eight hours on a holiday or
rest day shall be compensated in an amount equal to the rate of the first eight hours plus
at least thirty percent (30%) thereof.
 Undertime offset by overtime - Undertime work on one day cannot be offset by
overtime labor on another day. Permission granted to the employee to go on leave on
another day of the week does not preclude the employer from paying the additional
salary. Undertime work on a business day cannot be compensated for by working
overtime the next day. The law prohibits the offset because when an employee works
fewer than 8 hours, the hourly rate of overtime is greater than the hours missed. This
means that if a person quits work early, he cannot be required to work overtime the next
day to compensate for those hours.
 Emergency overtime work - The employer may ask an employee to work overtime in
any of the following situations:
a. When the National Assembly or the Chief Executive declares a national or local
emergency, or when the country is at war;
b. When it is required to prevent loss of life or property, or in case of an imminent danger to
public safety owing to an actual or impending emergency in the area caused by serious
accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;
c. When there is urgent work to be done on machines, installations, or equipment in order to
avoid substantial loss or damage to the employer, or some other comparable cause;
d. When the work is required to prevent loss or damage to perishable items;
e. Where the completion or continuation of work begun before the eighth hour is required to
avoid serious disruption or prejudice to the employer's business or operations.

Keypoints: (Analysis)
 Meal Periods:
 Employers must provide employees with at least 60 minutes off for regular meals.
 Short rest periods (5 to 20 minutes) are considered paid time.
 Employees have a legal right to at least one hour off for regular meals.
 Night Shift Differential:
  Employees working between 10:00 p.m. and 6:00 a.m. must receive a night
shift differential.
 The differential is at least 10% of their usual hourly rate.
 Overtime Work:
 Employees may work more than 8 hours per day if compensated:
o Regular wage plus at least 25% for overtime.
o For work beyond 8 hours on a holiday or rest day:
 Regular rate for the first 8 hours plus at least 30% for additional hours.
* Undertime Offset by Overtime:
 Undertime on one day cannot be offset by overtime on another day.
 Leave on another day does not affect the additional salary payment.
 Undertime cannot be compensated by working extra hours the next day.
 The law prohibits such offset to ensure fair compensation for missed hours.
 Emergency Overtime Work:
 Employers may require overtime in certain situations:
o National or local emergency declared by authorities or during war.
o To prevent loss of life or property, or in imminent danger due to serious accidents,
disasters, or calamities.
o Urgent work needed on machines or equipment to avoid substantial loss or
damage.
o To prevent loss or damage to perishable items.
o To avoid serious disruption to the employer’s business or operations from
incomplete work.

Article 90
 Regular wage includes cash wage plus the facility value.
 No deduction for amenities supplied by the employer.
 Includes overtime and additional remuneration.
 Employees cannot work beyond eight hours a day against their will in non-enumerated
instances.
  Overtime rate should be based on regular wage, not cash wage only.
 While it is optional, there are circumstances in which working overtime is necessary.

Keypoints: (Analysis)
 Regular Wage Definition:
 Comprises both cash wage and facility value (e.g., housing, meals).
 Includes overtime and additional remuneration.
 Deductions for Amenities:
 No deductions are allowed for amenities or facilities provided by the employer.
 Work Hours Regulation:
 Employees cannot be forced to work beyond eight hours a day except in non-enumerated
instances (unspecified situations).
 Overtime Rate Calculation:
 Overtime pay should be calculated based on the regular wage (cash wage plus facility
value), not just the cash wage.
 Overtime Necessity:
 While working overtime is generally optional, there are specific circumstances where it
may be necessary.

Article 92
 In case of actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and
property, or imminent danger to public safety;
 In cases of urgent work to be performed on the machinery, equipment, or installation, to
avoid serious loss which the employer would otherwise suffer;
 In the event of abnormal pressure of work due to special circumstances, where the
employer cannot ordinarily be expected to resort to other measures;
 To prevent loss or damage to perishable goods;
 Where the nature of the work requires continuous operations and the stoppage of work
may result in irreparable injury or loss to the employer; and
 Under other circumstances analogous or similar to the foregoing as determined by the
Secretary of Labor and Employment.
Keypoints: (Analysis)
 Emergencies and Public Safety:
 Immediate response is required for emergencies caused by serious accidents, fire, flood,
typhoon, earthquake, epidemic, or other disasters.
 Objective is to prevent loss of life and property or imminent danger to public safety.
 Urgent Machinery or Equipment Work:
 Urgent work needed on machinery, equipment, or installations to avoid significant loss to
the employer.
 Such work is prioritized to prevent serious damage or disruption.
 Abnormal Work Pressure:
 Situations with abnormal work pressure due to special circumstances where normal
measures are insufficient.
 Employers must address these conditions promptly to manage the work volume.
 Perishable Goods Protection:
 Measures are required to prevent loss or damage to perishable goods, ensuring their
preservation.
 Continuous Operations Requirement:
 Work that necessitates continuous operations to avoid irreparable injury or loss if halted.
 Essential to maintain ongoing processes to avoid significant harm to the employer.
 Analogous Circumstances:
 Other situations similar to those described above, as determined by the Secretary of
Labor and Employment, may also justify immediate action.

Article 93
(a) Where an employee is made or permitted to work on his scheduled rest day, he shall be paid
an additional compensation of at least thirty percent (30%) of his regular wage. An employee
shall be entitled to such additional compensation for work performed on Sunday only when it is
his established rest day.
(b) When the nature of the work of the employee is such that he has no regular work days and no
regular rest days can be scheduled, he shall be paid an additional compensation of at least thirty
percent (30%) of his regular wage for work performed on Sundays and holidays.
(c) Work performed on any special holiday 77 shall be paid an additional compensation of at
least thirty percent (30%) of the regular wage of the employee. Where such holiday work falls on
the employee’s scheduled rest day, he shall be entitled to an additional compensation of at least
fifty per cent (50%) of his regular wage.
(d) Where the collective bargaining agreement or other applicable employment contract
stipulates the payment of a higher premium pay than that prescribed under this Article, the
employer shall pay such a higher rate.
Keypoints: (Analysis)
 Work on Scheduled Rest Day:
o Employees working on their scheduled rest day (e.g., Saturday or Sunday) must
receive an additional compensation.
o The additional compensation is at least 30% of the regular wage.
o For work on Sunday, the additional compensation applies only if Sunday is the
employee's established rest day.
 No Regular Work or Rest Days:
o For employees without regular work days or rest days:
 They must receive at least 30% additional compensation for work
performed on Sundays and holidays.
 Work on Special Holidays:
o Work on special holidays requires at least 30% additional compensation of the
regular wage.
o If the special holiday work falls on the employee’s scheduled rest day, the
additional compensation increases to at least 50% of the regular wage.
 Higher Premium Pay from Contracts:
o If a collective bargaining agreement or employment contract specifies a higher
premium pay rate than outlined in the regulations:
 The employer is obligated to pay the higher agreed-upon rate.

Article 94
(a) Every worker shall be paid his regular daily wage during regular holidays, except in retail
and service establishments regularly employing less than ten (10) workers;
(b) The employer may require an employee to work on any holiday but such employee shall be
paid a compensation equivalent to twice his regular rate; and
(c) As used in this Article, “holiday” includes: New Year’s Day, Maundy Thursday, Good Friday,
the ninth of April, the first of May, the twelfth of June, the fourth of July, the thirtieth of
November, the twenty-fifth and thirtieth of December and the day designated by law for holding
a general election.
Keypoints: (Analysis)
 Payment During Regular Holidays:
 Every worker is entitled to their regular daily wage on regular holidays.
 Exception: Retail and service establishments with fewer than ten employees are exempt
from this requirement.
 Work on Holidays:
 Employers can require employees to work on holidays.
 For such work, employees must be paid compensation equivalent to twice their regular
rate.
 Definition of “Holiday”:
 The term "holiday" includes the following:
o New Year’s Day
o Maundy Thursday
o Good Friday
o April 9 (Araw ng Kigitingan)
o May 1 (Labor Day)
o June 12 (Independence Day)
o July 4 (American Independence Day)
o November 30 (Bonifacio Day)
o December 25 (Christmas Day)
o December 30 (Rizal Day)
o Any day designated by law for a general election

Article 95
(a) Every employee who has rendered at least one year of service shall be entitled to a yearly
service incentive leave of five days with pay.
(b) This provision shall not apply to those who are already enjoying the benefit herein provided,
those enjoying vacation leave with pay of at least five days and those employed in
establishments regularly employing less than ten employees or in establishments exempted from
granting this benefit by the Secretary of Labor and Employment after considering the viability or
financial condition of such establishment.
(c) The grant of benefit in excess of that provided herein shall not be made a subject of
arbitration or any court or administrative action right to service incentive leave.
Keypoints: (Analysis)
 Entitlement to Service Incentive Leave:
 Employees with at least one year of service are entitled to a yearly service incentive
leave.
 The leave consists of five days with pay.
 Exemptions from Service Incentive Leave:
 This provision does not apply to:
o Employees who already receive the same or a similar benefit.
o Employees with vacation leave with pay of at least five days.
o Employees in establishments with fewer than ten employees.
o Establishments exempted by the Secretary of Labor and Employment based on
viability or financial condition.
 Limitations on Arbitration or Legal Action:
 The provision of service incentive leave beyond what is mandated cannot be the subject
of arbitration or legal or administrative actions.