LABOR CODE Flashcards
What does labor law govern?
The rights and duties of the employer and employees regarding terms and conditions of employment and labor disputes arising from collective bargaining.
Who has the duty to enforce the Labor Code?
DOLE
To whom does the Labor Code apply?
All workers, whether agricultural or non-agricultural.
Name one exception to the applicability of the Labor Code.
Government employees (covered by the Civil Service Law)
Define ‘Field Personnel’.
Non-agricultural employees who regularly perform duties away from the principal place of business, with hours of work in the field that cannot be determined with reasonable certainty.
Give an example of field personnel.
Outside sales personnel, agents on commission basis, or insurance field agents.
What are ‘Workers Paid By Results’?
Workers who are paid based on the results of work performed or the number of units produced, rather than hours worked.
What does Article 83 of the Labor Code state?
The normal hours of work shall not exceed eight in a day.
Can there be a workday of less than 8 hours?
Yes, the law imposes a maximum number of hours and not a minimum.
What is a part-time worker’s wage based on?
Proportionate to the number of hours worked.
What are broken hours in the context of working hours?
Minimum normal 8 working hours need not be continuous and can be divided into segments, provided the total is 8 hours.
What is a compressed workweek?
An exception allowing an employee to work for more than 8 hours in a workday but not to exceed 12 hours.
What are the requirements to implement a compressed workweek?
Supported by majority of employees, safety certification for hazardous work, and notification to DOLE Regional Office.
What does Article 84 state about hours worked?
Hours worked include all time an employee is required to be on duty or at a prescribed workplace.
Are rest periods considered hours worked?
Yes, short rest periods of 5 to 20 minutes are considered compensable working time.
What is the treatment of brownouts lasting less than 20 minutes?
They shall be treated as worked or compensable hours.
Is waiting time considered as working time?
Yes, if it is an integral part of the employee’s work.
Differentiate between ‘Engaged to Wait’ and ‘Waiting to be Engaged’.
‘Engaged to Wait’ is compensable, while ‘Waiting to be Engaged’ is not.
Are preliminary and postliminary activities compensated?
Yes, if controlled or required by the employer and for the employer’s benefit.
Is travel time compensated as working time?
Normal travel from home to work is not compensated; travel that is part of the employee’s principal activity is compensated.
Can sleeping time be compensated?
Yes, if it does not interrupt work or there is an agreement to that effect.
Are lectures and training programs compensated?
No, if attendance is outside regular hours, voluntary, and no productive work is performed.
What does Article 85 state about meal periods?
Employers must give employees at least 60 minutes for regular meals.
What is the night shift differential rate?
At least 10% of the regular wage for work performed between 10 PM and 6 AM.
What is the additional compensation for overtime work?
Regular wage plus at least 25% of the hourly rate.
What is the general rule regarding working on holidays?
Employees are entitled to at least an additional 30% of their regular wage.
What are the conditions under which emergency overtime work may be required?
National emergency, preventing loss of life or property, urgent machine work, preventing loss to perishable goods.
What is the right to a weekly rest day?
A rest period of not less than 24 consecutive hours after every 6 consecutive normal work days.
What is the compensation for working on a rest day?
At least an additional 30% of the regular wage.
List two examples of special non-working days.
- Chinese New Year
- EDSA People Power Revolution Anniversary
What is required to be entitled to holiday pay?
Must be present on the day before the holiday or on leave with pay.
How are the rates computed for working days, holidays, and overtime?
Based on a formula that multiplies the type of working day by specific factors.
What is the right to service incentive leave?
Every employee who has rendered at least one year of service is entitled to service incentive leave.
What is the formula to compute an employee’s pay including overtime?
(281.25 + 103.125) * 2.6 = 999.375
This calculation includes regular pay and night shift differential for overtime.
What is the total compensation if an employee’s base pay is 600 and the computed overtime is 999.375?
Total compensation = 1560 + 999.375 = 2559.375 pesos
Total compensation includes base pay and calculated overtime.
How is overtime pay calculated for 3 hours at a rate of 75 pesos?
Overtime pay = (3 hours) * (1.25) * (75) = 281.25
The 1.25 factor represents the overtime rate.
What is the formula to compute overtime pay with night shift differential?
Overtime pay = (1 hour) * (1.25) * (1.1) * (75) = 103.125
The 1.1 factor represents the night shift differential.
What is the right to service incentive leave according to Article 95?
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
This entitlement does not apply to certain employees such as those in small establishments.
What are the exceptions to the service incentive leave provision?
Exceptions include:
* Employees already enjoying the benefit
* Employees enjoying vacation leave with pay at least five days
* Employees in establishments with less than ten employees
* Establishments exempted by the Secretary of Labor
The Secretary of Labor considers the viability or financial condition of the establishment.
What happens to unused service incentive leave at the end of the year?
The service incentive leave shall be commutable to its money equivalent if not used or exhausted at the end of the year
This ensures that employees receive compensation for any unused leave.
What is the definition of 13th month pay?
A monetary benefit equivalent to the monthly basic compensation received by an employee, computed pro-rata based on the number of months worked
It is given before December 24 and is based on the basic salary of the worker.
Who are the exceptions to receiving 13th month pay?
Exceptions include:
* Government employees
* Employees paid purely on commission basis
* Employees already receiving 13th month pay
* Managers
* Seafarers
These groups are not entitled to the 13th month pay benefit.
