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Labor Law

The document outlines various labor standards in the Philippines, including basic pay, overtime premiums, night shift differentials, holiday premiums, and the mandatory 13th month pay. It emphasizes the legal requirements for employee compensation and benefits, such as paid leaves for maternity, paternity, and solo parents, ensuring job security and financial stability. These standards aim to protect workers' rights and promote a healthy work-life balance.

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319 views4 pages

Labor Law

The document outlines various labor standards in the Philippines, including basic pay, overtime premiums, night shift differentials, holiday premiums, and the mandatory 13th month pay. It emphasizes the legal requirements for employee compensation and benefits, such as paid leaves for maternity, paternity, and solo parents, ensuring job security and financial stability. These standards aim to protect workers' rights and promote a healthy work-life balance.

Uploaded by

alexa marie wp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Labor Law receives for working beyond their

regular working hours, typically


8.9.1. Explain and apply labor calculated as a percentage
standards on the aspect of: increase on top of their regular
hourly rate, with higher premiums
often applied for work done on
8.9.1.1 BASIC PAY
holidays or rest days; in the
In terms of labor standards, Philippines, this means an
"basic pay" is the lowest amount employee working past 8 hours on
that an employer is legally a regular workday receives a 25%
obligated to pay an employee for increase on their regular rate,
their regular working hours. This is while working on a holiday or rest
usually determined by the day results in a 30% increase on
minimum wage laws of a region, their regular rate.
guaranteeing that all workers
receive a basic level of
compensation regardless of their 8.9.1.3 NIGHT SHIFT
DIFFERENTIAL
industry or job title. It serves as the
basis for an employee's salary and A "night shift differential"
excludes extra benefits like in labor standards refers to a
commissions, overtime pay, or mandatory additional pay given to
allowances. Minimum Wage employees who work during
Requirement is the most crucial designated night hours, typically
aspect of basic pay is that it must between 10:00 PM and 6:00 AM,
meet the minimum wage set by which is usually calculated as a
the relevant regional Tripartite percentage (like 10%) of their
Wages and Productivity Board, regular hourly wage for each hour
which varies depending on the worked during that period; this is a
location and cost of living in a legal requirement under the
particular area. Philippine Labor Code, specifically
Article 86, ensuring that employees
working night shifts receive extra
8.9.1.2 OVERTIME PREMIUM compensation for the disruption to
their normal sleep cycle.
"Overtime premium" under labor
standards refers to the additional
compensation an employee
Compute total night shift
pay: Multiply the night shift
Key points about night shift
differential rate by the number
differential:
of hours worked during the
Legal basis: In the Philippines, night shift period.
the right to a night shift
differential is enshrined in
Article 86 of the Labor Code, 8.9.1.4 HOLIDAY PREMIUM
making it mandatory for
employers to provide this
A "holiday premium" in
additional pay to eligible
labor standards refers to the
employees.
additional pay an employee
Percentage rate: The standard receives when they work on a
night shift differential is usually designated holiday, which is
set at 10% of the employee's typically calculated as a
regular hourly wage for every percentage increase on top of their
hour worked during the night regular daily wage. According to
shift period. the Philippine Labor Code,
employees working on a regular
Night shift hours: The holiday are entitled to 200% of
designated night shift hours are their regular daily wage for the first
generally considered to be eight hours worked, essentially
between 10:00 PM and 6:00 AM. meaning a 100% premium on top
How to apply night shift of their regular pay.
differential: Identify eligible Key points about holiday
hours: Determine which hours of premium:
an employee's work schedule
fall within the 10:00 PM to 6:00 Entitlement: Employees are
AM period. normally entitled to a holiday
premium if they are obliged to
Calculate the night work on a regular holiday, as
differential rate: Multiply the defined by legislation or
employee's regular hourly wage presidential proclamation.
by 10% to get the night shift
differential rate per hour. Calculation: To determine the
holiday premium, double the
employee's regular daily
compensation by 200% for the Department of Labor and
first eight hours worked on a Employment (DOLE).
holiday.

Overtime on a holiday: If an
Key points about 13th
employee works overtime on a
month pay:
holiday, the extra
compensation is typically Legal basis: The
calculated using an additional requirement for 13th month
premium on top of the holiday pay is stipulated in
rate. Presidential Decree No. 851.
Rest day coincides with the Who is entitled: All rank-
holiday: If a holiday comes on and-file employees,
an employee's customary rest regardless of their position,
day, they are entitled to an designation, or employment
additional premium for status, are entitled to receive
working on their rest day, 13th month pay.
which is often calculated as a
Calculation: The amount of
percentage increase above the
13th month pay is calculated
holiday pay.
by dividing the employee's
total basic salary earned
during the calendar year by
8.9.1.5 13TH MONTH PAY
12.
In the Philippines, the "13th Payment deadline: The
month pay" is a mandatory 13th month pay must be
benefit stipulated by law, where given to the employee no
all rank-and-file employees in later than December 24th of
the private sector are entitled to each year.
receive an amount equivalent to
one-twelfth (1/12) of their total
basic salary earned within a
8.9.1.6 LEAVES
calendar year, which must be
paid no later than December Labor standards regarding
24th each year; this is leaves are guidelines set by labor
mandated under Presidential laws and regulations that ensure
Decree No. 851, enforced by the workers have a right to take time
off for various reasons, without fear
of losing their job or being A labor standard designed to
penalized. These standards aim to support fathers (or partners) by
promote a healthy work-life granting them time off from work
balance and protect workers’ to assist with the care of their
rights. newborn child, support their
partner after childbirth, and bond
with their child. This leave is
8.9.1.7 SERVICE INCENTIVE typically shorter than maternity
LEAVE leave but is an essential part of
promoting gender equality in
A form of paid leave that caregiving and providing fathers
employees are entitled to after a with the opportunity to take part in
certain period of service with an the early stages of their child's life.
employer. It is typically mandated
by labor laws in many countries to
provide workers with a paid time
off, in addition to their regular 8.9.1.10 PATERNAL LEAVE FOR
vacation or sick leave. This leave is SOLO PARENT
intended to reward long-term
employees and encourage job A vital labor standard that
loyalty. recognizes the unique challenges
faced by single parents in caring
for their children. It provides
8.9.1.8 MATERNITY LEAVE additional leave and support to
individuals who are raising a child
A critical labor standard aimed alone, either due to circumstances
at protecting the health, well- such as separation, divorce, the
being, and rights of employees death of a partner, or choosing to
who give birth. It provides women become a single parent. Labor laws
with time off from work to recover that provide parental leave for solo
from childbirth and to care for their parents aim to help these
newborn child. Labor standards individuals manage both work and
around maternity leave help family responsibilities while
ensure that women can manage ensuring their financial security
the demands of both their health and job protection.
and family responsibilities without
sacrificing their job security or
income.

8.9.1.9 PATERNITY LEAVE

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