Basic Labor

Law
Affecting
Employer-
Employee
Relationship
By: Emiree Q. Palad
Philippine Labor Code
Stands as the law governing
employment practices and
labor relations in the Philippines.
Philippine Labor Code
 Divided into seven (7) books:
1. Pre-Employment
2. Human Resource Development Program
3. Conditions of Employment
4. Health, Safety and Social Welfare
Benefits
5. Labor Relations
6. Post-Employment
7. Transitory and Final Provisions
Philippine Labor Code
 Book I - Pre-Employment
- Deals with the recruitment and placement
of workers to promote and maintain a state of full
employment through improved manpower training,
allocation, and utilization including regulating the
employment of aliens, and the establishments of a
registration and/or work permit system, and to insure
careful selection of Filipino workers for overseas
employment in order to protect the good name of
the Philippines abroad.
Philippine Labor Code
 Book II - Human Resource Development
Program
- its objective is to develop human
resources, establish training institutions, and
formulate such plans and programs that will
ensure efficient allocation, development, and
utilization of the nation’s manpower and
thereby promote employment and accelerate
economic and social growth.
Philippine Labor Code
 Book III - Conditions of Employment
- Includes provision on working
conditions and rest periods that deals with
hours of work, weekly rest periods, holidays,
service incentives leaves, and service
charges.
Philippine Labor Code
 Book IV – Health, Safety and Social Welfare
Benefits
- Covers medical, dental, and occupational
health and safety, employees’ compensation, and
State Insurance Fund including the provisions for
medical care as amended and adult education.

 Selected Provisions from Book IV of the Labor

Code
 Art. 156 – First-aid treatment
 Art. 157 – Emergency medical and dental services
Philippine Labor Code
 Book V – Labor Relations
- It gives a comprehensive discussion on
labor organization, collective bargaining
agreements, grievance machinery and
voluntary arbitration, conciliation and
mediation, strikes and lockouts.
- It includes act of unfair labor practices
that both the employer and labor
organizations may commit.
Philippine Labor Code
 Book VI – Post-Employment
- A security of tenure law updating
R.A. No. 1052 and R.A. No. 1787 known as
the Termination Pay Law.
- It also deals with the different labor
laws pertaining to resignation, layoff, and
retirement from the service.
Philippine Labor Code
 Book VII – Transitory and Final Provisions
- Includes penal provisions and
liabilities, prescription of offenses and
claims, and transitory and final provisions
LABOR LAW FOR LEADERS

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State Policy on Labor
 To promote and emphasize the primary of
free collective bargaining and
negotiations, including voluntary
arbitration, mediation and conciliation, as
modes of settling labor or industrial
disputes;
 To promote free trade unionism as an
instrument for the enhancement of
democracy and the promotion of social
justice and development;
State Policy on Labor
 To foster the free and voluntary
organization of a strong and united labor
movement;
 To promote enlightenment of workers
concerning their rights and obligations as
union members and as employees;
 To provide an adequate administrative
machinery for the expeditious settlement
of labor or industrial disputes;
State Policy on Labor
 To ensure a stable but dynamic and just
industrial peace; and
 To ensure the participation of workers in
decision and policy making process
affecting their rights, duties, and welfare.
General Labor Standards
a. Minimum Wage
- shall be those prescribed by the
Regional Tripartite Wages and Productivity
Board.
- Estimated Equivalent Monthly Rate
(EEMR)
Applicable Daily Rate x 365

12
General Labor Standards
b. Premium Pay
- refers to additional compensation for
work performed within 8 hours on non-work
days, such as rest days and special days.

c. Night Shift Differential

- refers to the additional 10%
compensation to the regular employee for
each hour work performed between 10:00
pm to 6:00 am.
General Labor Standards
d. Right to Holiday
- 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.
- every employee is entitled to at least
100% of his basic wage even if he did not
report for work, provided he is present or is on
leave of absence with pay on the work day
immediately preceding the holiday.
General Labor Standards
e. Overtime Pay
- refers to additional pay for work
performed beyond eight (8) hours a day.
- additional compensation for
overtime work of at least 25% on a regular
work day.
- additional compensation for
overtime work of at least 30% on a holiday
day.
Computation of Wages
 Computing Overtime Pay
- On Ordinary Days:
Plus 25% of the hourly rate x no. of hours

- On a Rest Day, Special Day, or Regular

Holiday
Plus 30% of the hourly rate x no. of hours
Computation of Wages
 Computing pay for work done on:
- A special day (130% x basic pay)
- A special day, which is also a
scheduled rest day (150% x basic pay)
- A regular holiday (200% x basic pay)
- A regular holiday, which is also
scheduled rest day (260% x basic pay)
Computation of Wages
 Computing Night Shift Premium where
Night Shift is a Regular Work:
- On ordinary day (110% x basic hourly
rate)
- On rest day, special day, or regular
holiday (110% of regular hourly rate for
a rest day, special day, or regular
holiday)
Computation of Wages
 Computing Overtime on Night Shift:
- On ordinary day (110% x overtime
hourly rate)
- On rest day, special day, or regular
holiday (110% x overtime hourly rate
for rest days, special days, or regular
holidays)
Computation of Wages
 Computing 13th Month Pay
- Total basic salary earned for the year
exclusive of allowances, overtime, holiday,
and night shift differential pay divided by 12
months.
General Labor Standards

f. Right to Service Incentive Leave

- Every employee who has rendered at least
1 year of service is entitled to a yearly service
incentive of 5 days with pay.

g. Availment/Commutation to Cash
- The service incentive leave may be used
for sick and vacation leave purposes. The unused
service incentive leave is commutable to its
money equivalent at the end of the year. In
computing, the basis shall be the salary rate at the
end of the commutation.
General Labor Standards
h. Paternity Leave
- granted to all married male
employees in the private sector, regardless
of employment status (e.g., probationary,
regular, contractual, project-based)
- The purpose is to allow the husband
to lend support to his wife during her period
of recovery and/or in the nursing of her new-
born child
General Labor Standards
i. Maternity Leave
- Every pregnant woman in the private
sector, whether married or unmarried, is
entitled to a maternity leave of 60 days in
case of normal delivery, abortion, or
miscarriage; or 78 days in case of caesarean
section delivery with benefits equivalent to
100% of the average daily salary credit of the
employee as defined under the Social
Security Law.
General Labor Standards
i. Maternity Leave
- Republic Act 11210 known as 105-Day
Expanded Maternity Leave Law is an Act of
increasing the maternity leave period to one
hundred five (105) days for female workers
with an option to extend for an additional
thirty (30) days without pay, and granting an
additional fifteen (15) days for solo mothers.
General Labor Standards
j. Parental Leave for Solo Parents
- granted to any solo parent or
individual who is left alone with the
responsibility of parenthood to enable
him/her to perform parental duties and
responsibilities where physical presence is
required.
- in addition to leave privileges under
existing laws, shall be for 7 days every year,
with full pay.
General Labor Standards
k. Leave for Victims of Violence against
Women and their Children (VAWC)
- granted to private sector women
employees who are victim as defined in
Republic Act No. 9262. The leave benefit
shall cover the days that the women
employee has to attend to medical and
legal concerns.
General Labor Standards
l. Service Charges
- Employees of employer collecting
service charges are entitled to an equal share
in the 85% of the total charges, except
managerial employees.
- Service charges are collected by most
hotels, and some restaurants, night clubs,
cocktail lounges, among others.
General Labor Standards
m. Separation Pay
- given to employees in instances by
Articles 283 and 284 of the Labor Code. An
employee’s entitlement to separation pay
depends on the reason or ground for the
termination of his/her services.
General Labor Standards
n. 13th Month Pay
- All employers are required to pay
their rank-and-file employees regardless of
the nature of their employment and
irrespective of the method by which their
wages are paid provided they worked for at
least 1 month during a calendar year.
The Worker’s Basic Rights
 Equal Work Opportunities for All
- The state shall protect labor, promote
full employment, provide equal work
opportunity regardless of gender, race or
creed; and regulate employee-employer
relations.
The Worker’s Basic Rights
 Security of Tenure
- Every employee shall be assured
security of tenure. No employee can be
dismissed from work except for a just or
authorized cause, and only after due
process.
The Worker’s Basic Rights
 Just
cause refers to any wrongdoing
committed by an employee including:
 Serious misconduct
 Wilful disobedient of employers’ lawful orders
connected with work
 Gross and habitual neglect of duty
 Fraud or wilful breach of trust
 Commission of crime or offense against the
employer, employer’s family member/s or
representative
 Other analogous cases
The Worker’s Basic Rights
 Due process in cases of just cause
involves:
 Notice to employee of intent to dismiss and
grounds for dismissal
 Opportunity for employee to explain his or
her side
 Notice of decision to dismiss
The Worker’s Basic Rights
 Authorized cause refers to an economic
circumstances not due to the employee’s
fault, including:
 Introduction of labor saving devices
 Redundancy
 Retrenchment to prevent losses
 Closure or cessation of business
The Worker’s Basic Rights
 Workdays and Work Hours
- Workdays refers to any day during
which an employee is regularly required to
work.
- Hours of work refer to all the time an
employee renders actual work.
The Worker’s Basic Rights
 Weekly Rest Day
- It shall be the duty of the employer,
whether operating for profit or not, to
provide each of his employees a rest period
of not less than 24 consecutive hours after
every 6 consecutive normal days.
The Worker’s Basic Rights
 Wage and Wage-related Benefits
- Wage is the amount paid to an
employee in exchange for a task, piece of
work, or service rendered to an employee.
- This includes overtime, night
differential, rest day, holiday and 13th month
pay.
The Worker’s Basic Rights
 Payment of Wages
- Wages shall be paid in cash, legal
tender at or near the place of work.
- Wages shall be given not less than
once every 2 weeks or twice within a month
at intervals not exceeding 16 days
The Worker’s Basic Rights
 Employment of Women
- Women are not allowed to work at night
unless allowed by the rules:
 In industrial undertakings from 10 pm to 6 am.
 In commercial/non-industrial undertakings from
midnight to 6 am.
 In agricultural undertakings, at night time unless
given not less than 9 consecutive hours of rest.
The Worker’s Basic Rights
 Employment of Children
- Minimum employable age is 15 years
of age. A worker below 15 should be
directly under the sole responsibility of
parents or guardians; work does not
interfere with child’s schooling or normal
development.
The Worker’s Basic Rights
 Right to Self-organization and Collective
Bargaining
- The right to self-organization is the
right of every worker, free of any
interference from the employer or from
government, to form or join any legitimate
worker’s organization, association, or union
of his or her own choice.
The Worker’s Basic Rights
 Collective bargaining involves 2 parties:
 the representative of the employer
 a union daily authorized by the majority of
employment within a bargaining unit called
exclusive bargaining agent.
- it is the process where the parties agree:
 to fix and administer terms and conditions of
employment which must not be below the
minimum standards fixed by law
 to set mechanism for resolving their grievances
Department of Labor and
Employment (DOLE)
 the national government agency mandated
to formulate and implement policies and
programs, and serves as the policy-advisory
arm of the Executive Branch in the field of
labor and employment.
 consists of the Office of the Secretary, 7
bureaus, 6 services, 16 regional offices, 12
attached agencies, and 38 overseas offices
with a full manpower complement of 9,806 as
of May 2011.
Thank you.