Labor Law and Social Legislation › Labor Relations › Right to Self-organization

1. Coverage

A. Conditions of Employment (part 1 of 4)

Covered Employees; Exceptions – Labor Code, art. 82; Omnibus Rules Implementing the Labor Code, Book III, Rule I, secs. 1-2

Labor Code, art. 82

Article 82. Coverage. The provisions of this Title shall apply to employees in all establishments and undertakings whether for profit or not, but not to government employees, managerial employees, field personnel, members of the family of the employer who are dependent on him for support, domestic helpers, persons in the personal service of another, and workers who are paid by results as determined by the Secretary of Labor in appropriate regulations.

As used herein, "managerial employees" refer to those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof, and to other officers or members of the managerial staff.

"Field personnel" shall refer to non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.

Omnibus Rules Implementing the Labor Code, Book III, Rule I, secs. 1-2

SECTION 1. General statement on coverage. — The provisions of this Rule shall apply to all employees in all establishments and undertakings, whether operated for profit or not, except to those specifically exempted under Section 2 hereof.

SECTION 2. Exemption. — The provisions of this Rule shall not apply to the following persons if they qualify for exemption under the conditions set forth herein:

(a) Government employees whether employed by the National Government or any of its political subdivision, including those employed in government-owned and/or controlled corporations;

(b) Managerial employees, if they meet all of the following conditions:

(1) Their primary duty consists of the management of the establishment in which they are employed or of a department or sub-division thereof.

(2) They customarily and regularly direct the work of two or more employees therein.

(3) They have the authority to hire or fire employees of lower rank; or their suggestions and recommendations as to hiring and firing and as to the promotion or any other change of status of other employees, are given particular weight.

(1) The primary duty consists of the performance of work directly related to management policies of their employer;

(2) Customarily and regularly exercise discretion and independent judgment; and

(3) (i) Regularly and directly assist a proprietor or a managerial employee whose primary duty consists of the management of the establishment in which he is employed or subdivision thereof; or (ii) execute under general supervision work along specialized or technical lines requiring special training, experience, or knowledge; or (iii) execute, under general supervision, special assignments and tasks; and

(4) Who do not devote more than 20 percent of their hours worked in a work week to activities which are not directly and closely related to the performance of the work described in paragraphs (1), (2) and (3) above.

(d) Domestic servants and persons in the personal service of another if they perform such services in the employer’s home which are usually necessary or desirable for the maintenance and enjoyment thereof, or minister to the personal comfort, convenience, or safety of the employer as well as the members of his employer’s household.

(e) Workers who are paid by results, including those who are paid on piece-work, “takay,” “pakiao” or task basis, and other non-time work if their output rates are in accordance with the standards prescribed under Section 8, Rule VII, Book Three of these regulations, or where such rates have been fixed by the Secretary of Labor and Employment in accordance with the aforesaid Section.

(f) Non-agricultural field personnel if they regularly perform their duties away from the principal or branch office or place of business of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.

Hours of work
Normal hours of work – Labor Code, arts. 83-84; Omnibus Rules Implementing the Labor Code, Book III, Rule I, secs. 3-4

Labor Code, arts. 83-84

Article 83. 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, nutritionists, dietitians, pharmacists, social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital or clinic personnel.

Article 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.

Omnibus Rules Implementing the Labor Code, Book III, Rule I, secs. 3-4

SECTION 3. Hours worked. — The following shall be considered as compensable hours worked:

(a) All time during which an employee is required to be on duty or to be at the employer’s premises or to be at a prescribed work place; and

(b) All time during which an employee is suffered or permitted to work.

SECTION 4. Principles in determining hours worked. — The following general principles shall govern in determining whether the time spent by an employee is considered hours worked for purposes of this Rule:

(a) All hours are hours worked which the employee is required to give his employer, regardless of whether or not such hours are spent in productive labor or involve physical or mental exertion.

(b) An employee need not leave the premises of the work place in order that his rest period shall not be counted, it being enough that he stops working, may rest completely and may leave his work place, to go elsewhere, whether within or outside the premises of his work place.

(c) If the work performed was necessary, or it benefited the employer, or the employee could not abandon his work at the end of his normal working hours because he had no replacement, all time spent for such work shall be considered as hours worked, if the work was with the knowledge of his employer or immediate supervisor.

(d) The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be considered working time either if the imminence of the resumption of work requires the employee’s presence at the place of work or if the interval is too brief to be utilized effectively and gainfully in the employee’s own interest.

Meal periods – Labor Code, art. 85; Omnibus Rules Implementing the Labor Code, Book III, Rule I, sec. 7

Labor Code, art. 85

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.

Omnibus Rules Implementing the Labor Code, Book III, Rule I, sec. 7

SECTION 7. Meal and Rest Periods. — Every employer shall give his employees, regardless of sex, not less than one (1) hour time-off for regular meals, except in the following cases when a meal period of not less than twenty (20) minutes may be given by the employer provided that such shorter meal period is credited as compensable hours worked of the employee:

(a) Where the work is non-manual work in nature or does not involve strenuous physical exertion;

(b) Where the establishment regularly operates not less than sixteen (16) hours a day;

(c) In case of actual or impending emergencies or there is urgent work to be performed on machineries, equipment or installations to avoid serious loss which the employer would otherwise suffer; and

(d) Where the work is necessary to prevent serious loss of perishable goods.

Rest periods or coffee breaks running from five (5) to twenty (20) minutes shall be considered as compensable working time.

Night-shift – Labor Code, art. 86; Omnibus Rules Implementing the Labor Code, Book III, Rule II, secs. 1-6

Labor Code, art. 86

Article 86. Night shift differential. Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning.

Omnibus Rules Implementing the Labor Code, Book III, Rule II, secs. 1-6

SECTION 1. Coverage. — This Rule shall apply to all employees except:

(a) Those of the government and any of its political subdivisions, including government-owned and/or controlled corporations;

(b) Those of retail and service establishments regularly employing not more than five (5) workers;

(d) Managerial employees as defined in Book Three of this Code;

(e) Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.

SECTION 2. Night shift differential. — An employee shall be paid night shift differential of no less than ten per cent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning.

SECTION 3. Additional compensation. — Where an employee is permitted or suffered to work on the period covered after his work schedule, he shall be entitled to his regular wage plus at least twenty-five per cent (25%) and an additional amount of no less than ten per cent (10%) of such overtime rate for each hour or work performed between 10 p.m. to 6 a.m.

SECTION 4. Additional compensation on scheduled rest day/special holiday. — An employee who is required or permitted to work on the period covered during rest days and/or special holidays not falling on regular holidays, shall be paid a compensation equivalent to his regular wage plus at least thirty (30%) per cent and an additional amount of not less than ten (10%) per cent of such premium pay rate for each hour of work performed.

SECTION 5. Additional compensation on regular holidays. — For work on the period covered during regular holidays, an employee shall be entitled to his regular wage during these days plus an additional compensation of no less than ten (10%) per cent of such premium rate for each hour of work performed.

SECTION 6. Relation to agreements. — Nothing in this Rule shall justify an employer in withdrawing or reducing any benefits, supplements or payments as provided in existing individual or collective agreements or employer practice or policy.

Overtime work – Labor Code, arts. 87-90; Omnibus Rules Implementing the Labor Code, Book III, Rule I, secs. 8-10

Labor Code, arts. 87-90

Article 87. Overtime work. Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five percent (25%) thereof. 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 on a holiday or rest day plus at least thirty percent (30%) thereof.

Article 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. Any employee may be required by the employer to perform overtime work in any of the following cases:

When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive;

The reference to the National Assembly is read as Congress under the 1987 Constitution (Art. VI, Sec. 1); see also Omnibus Rules Implementing the Labor Code, Book III, Rule I, Sec. 10(a).

When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;

When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage to the employer or some other cause of similar nature;

When the work is necessary to prevent loss or damage to perishable goods; and

Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer.

Any employee required to render overtime work under this Article shall be paid the additional compensation required in this Chapter.

Article 90. Computation of additional compensation. For purposes of computing overtime and other additional remuneration as required by this Chapter, the "regular wage" of an employee shall include the cash wage only, without deduction on account of facilities provided by the employer.

Omnibus Rules Implementing the Labor Code, Book III, Rule I, secs. 8-10

SECTION 8. Overtime pay. — Any employee covered by this Rule who is permitted or required to work beyond eight (8) hours on ordinary working days shall be paid an additional compensation for the overtime work in the amount equivalent to his regular wage plus at least twenty-five percent (25%) thereof.

SECTION 9. Premium and overtime pay for holiday and rest day work. — (a) Except employees referred to under Section 2 of this Rule, an employee who is permitted or suffered to work on special holidays or on his designated rest days not falling on regular holidays, shall be paid with an additional compensation as premium pay of not less than thirty percent (30%) of his regular wage. For work performed in excess of eight (8) hours on special holidays and rest days not falling on regular holidays, an employee shall be paid an additional compensation for the overtime work equivalent to his rate for the first eight hours on a special holiday or rest day plus at least thirty percent (30%) thereof.

(b) Employees of public utility enterprises as well as those employed in non-profit institutions and organizations shall be entitled to the premium and overtime pay provided herein, unless they are specifically excluded from the coverage of this Rule as provided in Section 2 hereof.

(c) The payment of additional compensation for work performed on regular holidays shall be governed by Rule IV, Book Three, of these Rules.

SECTION 10. Compulsory overtime work. — In any of the following cases, an employer may require any of his employees to work beyond eight (8) hours a day, provided that the employee required to render overtime work is paid the additional compensation required by these regulations:

(a) When the country is at war or when any other national or local emergency has been declared by Congress or the Chief Executive;

(b) When overtime work is necessary to prevent loss of life or property, or in case of imminent danger to public safety due to actual or impending emergency in the locality caused by serious accident, fire, floods, typhoons, earthquake, epidemic or other disaster or calamities;

(c) When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage to the employer or some other causes of similar nature;

(d) When the work is necessary to prevent loss or damage to perishable goods;

(e) When the completion or continuation of work started before the 8th hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer; or

(f) When overtime work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon.

In cases not falling within any of these enumerated in this Section, no employee may be made to work beyond eight hours a day against his will.

Compressed work week, flexible work arrangement, alternative work arrangements, telecommuting program – DOLE D.A. No. 02-04; DOLE D.A. No. 02-09; DOLE D.A. No. 04-10; R.A. No. 11165, secs. 3-5

Labor Organizations or Workers’ Associations

Employees eligible to form or join a labor organization for collective bargaining; managerial employees may not join, assist, or form one, and supervisory employees may organize separately from rank-and-file employees
Government employees of corporations created under the Corporation Code
Supervisory Employees
Aliens with valid working permits
Security personnel

Coverage

General Rule: All establishments and undertakings, whether for profit or not (Labor Code, Art. 293)

Exception: Government, its political subdivisions, including GOCCs with original charter (IRR Labor Code, Sec. 1, Rule 1, Book VI)

Eligibility

General Rule: All employees in the private sector, regardless of their position, designation, or status, and irrespective of the method by which their wages are paid (IRR R.A. No. 7641, Sec. 1)

Exceptions:

Employees covered by the Civil Service Law;
Domestic Helpers and Persons in the Personal Service of Another; and
Employees in Retail, Service, and Agricultural Establishments or Operations Regularly Employing Not More Than 10 Employees (IRR R.A. No. 7641, Sec. 2)

Coverage:

This benefit applies to all employees,

Voluntary

Spouses who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or employment which is subject to mandatory coverage. Land-based and sea-based OFWs are subject to compulsory SSS coverage [Sec. 9-B, RA 11199].

Any foreign government, international organization or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with the Philippine Government for the inclusion of such employees in the SSS except those already covered by their respective civil service retirement systems [Sec. 8(j)(4), RA 7877].

Coverage

This Act applies to all domestic workers employed and working within the country.

Coverage:

General Rule: Applies to ALL employees.

Exceptions:

Those of the government and any of the political subdivision, including government owned and controlled corporation;
Those of retail and service establishments regularly employing less than ten (10) workers;
Domestic helpers and persons in the personal service of another;
Managerial employees as defined in Book Three of the Code;
Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.cralaw(IRR Labor Code, Sec. 1, Rule IV, Book III)

Coverage

General Rule: Applies to ALL employees.
Exceptions:
Those of the government and any of the political subdivision, including government owned and controlled corporation;
Those of retail and service establishments regularly employing less than ten (10) workers;
Domestic helpers and persons in the personal service of another;
Managerial employees as defined in Book Three of the Code;
Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.(IRR Labor Code, Sec. 1, Rule IV, Book III)
Regular Holidays
New Year’s Day – Jan. 1
Maundy Thursday – Movable Date
Good Friday – Movable Date
Araw ng Kagitingan – April 9
Labor Day – May 1
Independence Day – June 12
Nat’l Heroes Day – Last Mon. of Aug.
Bonifacio Day – Nov. 30
Eid al Fit’r – Movable Date
Eid al Adha – Movable Date
Christmas Day – Dec. 25
Rizal Day – Dec. 30
Special Days
Ninoy Aquino Day – August 21
All Saints’ Day – Nov. 1
Last Day of the Year – Dec. 31
Special Non-Working Days
Special Public Holidays
Special National Holiday

Coverage

All employees of covered employers, regardless of their positions, designations or employment status, and irrespective of the method by which their wages are paid.

EXCEPT to managerial employees