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Labor-code

The document outlines various articles of the Labor Code of the Philippines regarding work hours, overtime pay, and employee rights. It specifies that normal work hours should not exceed eight hours a day, with additional compensation for overtime, night shifts, and work on holidays or rest days. Furthermore, it details the types of employment, probationary status, and the rights of employees, including the right to a weekly rest day and service incentive leave.
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0% found this document useful (0 votes)
5 views

Labor-code

The document outlines various articles of the Labor Code of the Philippines regarding work hours, overtime pay, and employee rights. It specifies that normal work hours should not exceed eight hours a day, with additional compensation for overtime, night shifts, and work on holidays or rest days. Furthermore, it details the types of employment, probationary status, and the rights of employees, including the right to a weekly rest day and service incentive leave.
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Article 83.

Work Hours:

● Article 83 of the Labor Code enunciates that the normal hours of work of any employee shall not
exceed eight (8) hours a day. This is exclusive of the one (1) hour lunch break. The Supreme Court
explained the rationale of this provision to safeguard the welfare of employees and to minimize
unemployment.

● 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, nutritionists, dietitians, pharmacists,
social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants
and all other hospital or clinic personnel.

ART. 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.

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 minutes time-off for their regular meals
● The employee is entitled to a 1 hour break which is unpaid. Usually, a 9 hour-work time would be
composed of 8 hours of work and 1 hour of break.
● The 1 hour break time can be broken down into portions (eg. two 15 mins break, 30 mins break).
● For employees working in offices, they would get a complete 1 hour break time.

Article 86: Night-shift differential

Every employee shall be paid a night shift differential of not less than ten percent of his regular
wage for each hour of work performed between ten o’clock in the evening and six o’clock in the
morning
● If the employee has a working time from 10pm - 6am, he/she is entitled to night differential pay.
● The differential is computed every hour within the 10pm-6am shift.
● Hourly shift + 10%

Article 87: OVERTIME WORK


The Labor Code of the Philippines governs overtime pay in the Philippines, setting standards and
conditions for employees who work beyond regular hours, providing a legal framework for compensation.

Legal Basis and Criteria


Article 87 of the Labor Code
- Any employee shall be paid for overtime work at a rate not less than their regular wage plus at
least 25%.
- For work done beyond eight hours on holidays and rest days, the rate is even higher—no less
than the regular wage plus at least 30%.

Eligibility of Regular Employees


Regular employees are generally eligible for overtime pay, but certain types of field personnel and
managerial employees are generally exempt from this rule, as per Article 82 of the Labor Code.

Calculation of Overtime Pay


The calculation of overtime pay involves multiplying the hourly rate by the number of hours worked
beyond the standard work period, then increasing this amount by the Labor Code percentage to ensure
fair compensation for extra effort and time.

Overtime hours, beyond 8 hours daily:


Overtime rate = Regular hourly wage x 125%

Overtime hours, beyond 8 hours during a holiday


Overtime rate = Rate of the first eight hours on a holiday or rest day x 130%

ART. 88. Undertime Not Offset by Overtime.

● Undertime work on any particular day shall not be offset by overtime work on any other day.
● Permission given to the employee to go on leave on some other day of the week shall not exempt
the employer from paying the additional compensation required in this Chapter.

Article 89: Emergency Overtime Work


• Overtime Work, refers to work completed after the standard eight-hour workday. It is permissible in
some situations, such as emergencies. Workers who put in extra time have the right to overtime
pay that is at least 25% of their base pay for the first two hours and 50% for the remaining hours.
• Emergency Overtime, refers to work performed beyond regular working hours due to unforeseen
events or circumstances that pose a threat to life, property, or the environment. Examples of
these include natural disasters, fires, accidents, and other similar situations

While Article 85 doesn't explicitly address emergency overtime, it's crucial to understand its relationship to
other provisions of the Labor Code.
• Mandatory Meal Period: Article 85 provides employees a minimum of one hour for lunch. The
length of this lunch break may be reduced or eliminated in an emergency, but managers still
need to make sure that workers get enough sleep and food.
• Overtime Compensation: Employees are entitled to the specified overtime pay when they work
beyond regular hours, including during emergency situations. This is an essential safety
measure to stop workers from being exploited in difficult situations.
• Health and Safety: Emergency situations may call for overtime work, but companies have a duty
to put their workers' health and safety first. As much as possible, safe working conditions,
appropriate diet, and enough sleep should be maintained.

ARTICLE 90 Computation of Additional Compensation

● In calculating the additional compensation such as overtime pay, the regular wage of an
employee should be received in its full amount without deduction of any non-cash benefits or
facilities provided by the employer.

Article 91. Right to weekly rest day.


● Employers must provide employees with a 24-hour rest period after six consecutive workdays.
● Employers can schedule rest days, but must accommodate employee’s religious based request
for specific day off.

Article 92 - WHEN EMPLOYER MAY REQUIRE WORK ON A REST DAY


The employer may require his employees to work on any day:

(a) 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;

(b) In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious
loss which the employer would otherwise suffer;

(c) In the event of abnormal pressure of work due to special circumstances, where the employer cannot
ordinarily be expected to resort to other measures;

(d) To prevent loss or damage to perishable goods;

(e) 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

(f) Under other circumstances analogous or similar to the foregoing as determined by the Secretary of
Labor.

Article 93. Compensation for rest day, Sunday or holiday work.

● 30% additional pay for working on a scheduled rest day.


● 30% additional pay for working on Sundays and holidays when regular workdays/rest days
cannot be scheduled.
● 30% additional pay for working on a special holiday.
● 50% additional pay if the special holiday coincides with a scheduled rest day.
● Employers must pay a higher premium if stipulated in a collective bargaining agreement or
employment contract.

ARTICLE 94. Right to holiday pay.

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.

ARTICLE 95 Right to service incentive leave.

(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.

Article 281 of the Labor Code in the Philippines pertains to the probationary employment status of
workers.

Purpose:
• The probationary period is like a trial phase where employers check if a new worker is a good fit for
the job.

Duration:
• This trial phase can last up to six months. If you’re still on probation after that, your status should be
reviewed.

Rights:
• Even though you're on probation, you still have important rights. For example,you should be treated
fairly and get benefits like holiday pay and overtime if those are part of the job.

Evaluation:
• During the probationary period, you should get feedback from your employer on how you’re doing.
The feedback should be honest and based on clear standards.

Termination:
• If the employer decides not to keep you after the probationary period, they need to give you a valid
reason and inform you before the period ends.
• You have the right to question the dismissal if you think it’s unfair.

Conversion to Regular Status:


• If you meet the job’s standards during your probation, you should be made a regular employee. This
usually means more job security and additional benefits

Types of Employment
There are five different types of employment in the Philippines, the following are the recognized types
of employment: (1) regular; (2) casual; (3) project; (4) seasonal; (5) fixed-term; and (6)probationary.
These are determined by the nature and/or existence of activities that an employee is required to
perform. The employer establishes the terms and conditions of the employment contract, which
should be structured according to the legal provisions set by Philippine labor laws and regulations.

Fixed-Term Employment
Fixed-term employment is valid when:

(a) the fixed period of employment was knowingly and voluntarily agreed upon by the employer and
employee without any force, duress, or improper pressure being brought to
bear upon the employee and absent any other circumstances vitiating his consent; or
(b) it satisfactorily appears that the employer and the employee dealt with each other on
more or less equal terms with no moral dominance exercised by the former or the latter. (See
Caparoso, et al. v. Court of Appeals, G.R. No. 155505, 15 February 2007)

Project Employment
• Project employment contemplates an arrangement whereby “the employment has been fixed for a
specific project or undertaking whose completion or termination has been determined at the time of
the engagement of the employee.” (Article 280, Labor Code of the Philippines)
• Since the employee’s services are coterminous with the project, the services of the project
employees are legally and automatically terminated upon the end or completion of the project.

Seasonal Employment
• Seasonal employment applies “where the work or service to be performed is seasonal in nature and
the employment is for the duration of the season.” (Article 280, Labor Code of the Philippines)
• Season employees may also be considered regular employees, thus: “[f]arm workers generally fall
under the definition of seasonal employees. We have consistently held that seasonal employees may
be considered as regular employees. Regular seasonal employees are those called to work from time
to time. The nature of their relationship with the employer is such that during the off-season, they are
temporarily laid off; but reemployed during the summer season or when their services may be needed.
They are in regular employment because of the nature of their job,and not because of the length of
time they have worked.” (Gapayao v. Fulo, et al., G.R. No. 193493, 13 June 2013)

Regular and Casual Employment


• Pursuant to Article 280 of the Labor Code of the Philippines (“Labor Code”), the primary standard
that determines regular employment is the reasonable connection between the
particular activity performed by the employee and the usual business or trade of the employer; the
emphasis is on the necessity or desirability of the employee’s activity. Thus, when the employee
performs activities considered necessary and desirable to the overall business scheme of the
employer, the law regards the employee as regular.
• In addition, the Labor Code also considers as regular employment a casual arrangement when the
casual employee’s engagement has lasted for at least one year, regardless of the engagement’s
continuity. The controlling test in this arrangement is the length of time during which the employee is
engaged. (See Universal Robina v. Acibo, G.R. No. 186439, 15 January 2014)

REFERENCES:
https://ndvlaw.com/hours-of-work-of-employees/

https://lawphil.net/statutes/presdecs/pd1974/pd_442_1974.html

Department of Labor and Employment. (1974, May 1). Labor code of the
Philippines - dole.
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Yatco, N. (2023, April 18). Questions about Philippine Labor & Employment
Laws. Sprout
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YouTube. (2022, October 22). DOLE BREAK TIME ARTICLE 85 LABOR
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https://lawphil.net/statutes/presdecs/pd1974/pd_442_1974.html

https://kittelsoncarpo.com/labor-employment/types-of-employment/

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