REVIEW SESSION

WEEK 4
Labor Standards and Social Legislation
DYCBALsl313

1st Semester A.Y. 2020-2021

BSBA 3rd Year
Learning Objectives
• Summarize week’s 1 to 3 Topics
• Address concerns related to Weeks 1-3 topics
• Discuss Week 4 Wages
The Philippines’ Labor
Code was established to
provide a set of rules
and guidelines for both
employees and
employers.
TOPIC 1 INTRO TO LS
• Labor Standards serves as the legal basis in the
implementation of HR Practices
• HR Functions include: Recruitment and Selection,
Learning and Development, Compensation and
Benefits, Workplace Safety and Health and
Employee and Labor Relations
• all minimum standards are governed under the
Labor Code
• LABOR CODE law governing employment practices
and labor relations in the Philippines.
• Covers private sector
TOPIC 1 INTRO TO LS
• Labor Standards – Books 1-4
• Labor Relations- Books 5- 6
• Framework is on Government, Management
Prerogative and Workers Rights
Recruitment and Selection
Learning and Development
Compensation and Benefits
Employee Relations
Workplace Safety and Health
Organizational Development
TOPIC 2 ER AND EE
RELATIONSHIP
• The LC operates if there is an ER an EE
Relationship
• Ways to find out ER and EE Relationship
• 4 FOLD TEST
• ECONOMIC REALITY TEST
• TWO TIERED TEST ( MULTIFACTOR TEST)
 TOPIC 2 ER AND EE
RELATIONSHIP

Selection and Payment of The power of The employer’s

engagement of Wages Dismissal power to control
the employee with
employees respect to the
methods by which
the work is to be
accomplished
TOPIC 2 ER AND EE
RELATIONSHIP
TOPIC 2 ER AND EE
RELATIONSHIP
• ECONOMIC REALITY TEST
• employment relation exists between the parties is
the economic dependence of the worker on his
employer.
• TWO TIERED TEST (MULTI FACTOR TEST)
• The putative employer’s power to control the
employee with respect to the means and methods
by which the work is to be accomplished, and,
• The underlying economic realities of the activity or
relationship.
TOPIC 2 ER AND EE
RELATIONSHIP
• ECONOMIC REALITY TEST
• employment relation exists between the parties is
the economic dependence of the worker on his
employer.
• TWO TIERED TEST (MULTI FACTOR TEST)
• The putative employer’s power to control the
employee with respect to the means and methods
by which the work is to be accomplished, and,
• The underlying economic realities of the activity or
relationship.
 TOPIC 2 ER AND EE
RELATIONSHIP
• CATEGORIES OF EMPLOYMENT
REGULAR EMPLOYMENT NON REGULAR EMPLOYMENT
Probationary Employment
Regular by nature of work - Trial period of not exceeding 6months to determine fitness to be a
those who are engaged to perform regular employee
activities which are usually Project Employment
necessary or desirable in the usual -- An employee is hired for a specific project or phase of work and
There must be a determination of, or a clear agreement on, the
business or trade completion or termination of the project at the time the employee is
engaged.
Seasonal Employment
Regular by years of service - “where the work or service to be performed is seasonal in nature and the
those who have rendered at least employment is for the duration of the season.”
one year of service, whether Casual Employment *
continuous or broken, with respect work or service which is merely incidental to the business of the
to the activity in which they are employer, and that job, work or service is for a definite period made
known to the employee at the time of engagement.
employed.
Fixed Term Employment
renders service for a definite period of time and employment contract must
be terminated after such period expires
TOPIC 2 ER AND EE
RELATIONSHIP
TOPIC 3 HOURS OF WORK
• must not exceed eight (8) hours a day
• should be exclusive of the one (1) hour daily
lunch break.
• Philippine laws, however, do not prohibit work
done for less than eight hours.
• Working hours shall include:
• all time during which an employee is required to be
on duty and/or to be at a prescribed workplace;
• all time during which an employee is permitted to
work; and
• rest periods of short duration during working hours.
TOPIC 3 HOURS OF WORK
• MEAL TIME AS WORKING TIME
• TRAVEL TIME AS WORKING TIME
• ATTENDANCE TO TRAINING AS WORKING
TIME
• WAITING TIME AS WORKING TIME
TOPIC 3 HOURS OF WORK
• NIGHT WORK
• 10% night shift differential for work performed
from 10:00 PM to 6:00 AM
• OVERTIME WORK
• 25% additional to his regular wage for work
performed beyond eight hours a day.
• Work performed beyond eight hours on a holiday or
rest day shall be paid an additional compensation
equivalent to the rate of the first eight hours plus at
least 30% thereof.
TOPIC 3 HOURS OF WORK
• UNDERTIME
• Cannot be offset by overtime
• COMPRESSED WORKWEEK
• Department Advisory No. 4, S. 2010
TOPIC 4 WAGES
• Determination of minimum wage
TOPIC 4 WAGES
• Basic Principles under Wages
• No Salary below minimum wage
• Basic Principle in payment is NO WORK NO PAY.
• Payment of wage should be in a form of check or money.
• Wages shall be paid at least once every two weeks or twice a
month at intervals of not exceeding 16 days.
• Payment of wages shall be made at or near the place of
work.
• Payment of wages shall be directly paid to the workers whom
they are due.
• No employer in his own behalf or in behalf of any person shall
make any deduction from wages of his employees unless
there is a consent from the employee.
TOPIC 4 WAGES
• In payment of wages, it is important to know what type
of personnel based on the kind of salary given
• Two types :
• Monthly paid employee
• Daily rate employee
• In payment of wages factors vary based on kind of
salary given
• Pakyaw and Piece rate
• Payment by Results
• The wage rates of workers who are paid by results may be
determined through time and motion studies or consultation
with representatives of employers’ and workers’ organizations
in a tripartite called by the DOLE Secretary.
 Monthly Paid (those Daily Rate ( required Daily Paid (who do Daily Paid (who do
who are paid everyday to work everyday not work and are not work and are
of the month, including including, Sundays or not considered not considered
unworked rest days, rest days, special days paid on Sundays paid on Saturdays
special holidays and and regular holidays) or rest days ) and Sundays or
regular holidays) rest days )

FACTOR 365 DAYS 393.8 DAYS 313 DAYS 261 DAYS

FORMULA
TO GET THE
EEMR
ANNIE THE TEACHER IS A MARK THE NURSE IS DAILY JANE THE CALL CENTER BENJ THE HR ASSISTANT IS
MONTHLY PAID EMPLOYEE PAID EMPLOYEE WHO IS AGENT IS A DAILY PAID A DAILY PAID EMPLOYEE
REQUIRED TO WORK WHO WORK 6 DAYS A WORKING ON A FIVE DAY
EVERYDAY WEEK AND NOT PAID ON WORKWEEK BUT NOT
REST DAY CONSIDERED PAID ON OFF
DAYS

DAILY RATE = Php 800 /day DAILY RATE = Php 900/day DAILY RATE = Php 1000/day DAILY RATE = Php 1100/day

800 x 365 = Php 292,000 900 x 393.8= Php 354,420 1000x 313= Php 313,000 1100x 261= Php 287,100
12 12 12 12
EEMR = Php 24,333.33 EEMR = Php 29,535.00 EEMR = Php 26,083.33 EEMR = Php 26,083.33

MONTHLY RATE : Php MONTHLY RATE : Php MONTHLY RATE : Php MONTHLY RATE : Php
35,000 35,000 35,000 35,000

35,000 x 12 = Php420,000 35,000 x 12 = Php420,000 35,000 x 12 = Php420,000 35,000 x 12 = Php420,000

365 393.8 313 261

DAILY RATE = Php 1,150.68 DAILY RATE = Php 1,066.53 DAILY RATE = Php 1,341.85 DAILY RATE = Php 1,609.20