Week 4 - Conditions of Employment Flashcards
Are the provisions of Book III Title I Working Conditions and Rest Periods applicable to all employees?
No. Under Art. 82 of the Labor Code, The provisions of Book III Title I Working Conditions and Rest Periods do not apply 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.
What are the provisions under Book III Title I Working Conditions and Rest Periods of the Labor Code?
- Art. 82. Coverage;
- Art. 83. Normal Hours of Work;
- Art. 84. Hours Worked;
- Art. 85. Meal Periods;
- Art. 86. Night-Shift Differential;
- Art. 87. Overtime Work;
- Art. 88. Undertime Not Offset by Overtime;
- Art. 89. Emergency Overtime Work;
- Art. 90. Computation of Additional Compensation;
- Art. 91. Right to Weekly Rest Day;
- Art. 92. When Employer May Require Work on a Rest Day;
- Art 93. Compensation for Rest Day, Sunday or Holiday Work;
- Art. 94. Right to Holiday Pay;
- Art. 95. Right to Service Incentive Leave; and
- Art. 96. Service Charges.
Who are “managerial employees” according to the Art. 82 of the Labor Code?
Under Art. 82 par.2: “’[M]anagerial 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.”
What are the conditions in order to deem an employee a managerial employee?
In Penaranda v. Baganga Plywood, the Court explained the conditions in order to deem the employee a managerial employee. According to the Court:
“The Implementing Rules of the Labor Code state that managerial employees are those who meet the following conditions:
(1) Their primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof;
(2) They customarily and regularly directed the work of two or more employees therein;
(3) They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to the hiring and firing and as to the promotion or any other change of status of other employees are given particular weight.” [Penaranda v. Baganga GR No. 159577].
Does the designation as “manager” render an employee a managerial employee?
No. In Asia Pacific Chartering v. Farolan, the Court, citing Paper Industries Corp. v. Laguesma, stated:
“Managerial employees are ranked as Top Managers, Middle Managers and First Line Managers. The mere fact that an employee is designated ”manager” does not ipso facto make him one-designation should be reconciled with the actual job description of the employee for it is the job description that determines the nature of employment.”
Are managerial employees paid by the hour?
No. In National Waterworks & Sewage Authority v. NWSA Consodliated Unions, the Court said that managerial employees are not paid by the hour. According to the Court, “The philosophy behind the exemption of managerial employees from the 8-Hour Labor Law is that such workers are not usually employed for every hour of work but their compensation is determined considering their special training, experience or knowledge which requires the exercise of discretion and independent judgment, or perform work related to management policies or general business operations along specialized or technical lines. For these workers it is not feasible to provide a fixed hourly rate of pay or maximum hours of labor.” [National Waterworks & Sewage Authority v. NWSA Consodliated Unions GR No. L-18938].
Art. 82 par. 2. Coverage. — (xxx xxx) As used herein, “managerial employees” refer to those whose […] in which they are employed or of a […] thereof, and to other […].
Art. 82 par. 2. Coverage. — (xxx xxx) 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.
Who are “field personnel” according to the Labor Code?
“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. [Art. 82 Labor Code].
Does the performance of work outside the branch office render an employee a “field personnel”?
No. According to the case of Auto Bus Transport Systems, Inc. v. Bautista, the Court held “[T]he definition of a ‘field personnel’ is not merely concerned with the location where the employee regularly performs his duties but also with the fact that the employee’s performance is unsupervised by the employer. […] [F]ield personnel are those who regularly perform their duties away from the principal place of business of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty. Thus, in order to conclude whether an employee is a field employee, it is also necessary to ascertain if actual hours of work in the field can be determined with reasonable certainty by the employer. In so doing, an inquiry must be made as to whether or not the employee’s time and performance are constantly supervised by the employer.” [Auto Bus Transport Systems, Inc. v. Bautista GR No. 156367; cited in Far-East Agricultural Supply v. Lebatique].
Why did the Court hold that the fishermen employed under Mercidar Fishing Corp. in Mercidar Fishing Corp v. NLRC were regular employees instead of being field employees?
The Court held that the fishermen were regular employees and not field employees because the employees were still under the effective control and supervision of the company, being that the employees had no choice but to stay on the vessel. Thus, the Court said:
“[D]uring the entire course of their fishing voyage, fishermen employed by petitioner have no choice but to remain on board its vessel. Although they perform non-agricultural work away from petitioner’s business offices, the fact remains that throughout the duration of their work they are under the effective control and supervision of petitioner through the vessel’s patron or master as the NLRC correctly held.” [Mercidar Fishing Corp v. NLRC GR No. 112574].
Why are employees working on a piece-work basis exempted from overtime pay?
In Red V Coconut Products Ltd. v. CIR, the Court, citing Lara v. Del Rosario, explained why piece-workers are exempted from the Eight-Hour Labor Law. The Court stated “[T]he philosophy underlying the exclusion of piece workers from the Eight-Hour Labor Law is that said workers are paid depending upon the work they do ‘irrespective of the amount of time employed’ in doing said work.” [Red V Coconut Products Ltd. v. CIR GR No. L-21348].
What is the Normal Hours of Work?
Labor Code. Art. 83. Normal Hours of Work. – The normal hours of work of any employee shall not exceed eight (8) hours a day.
Are mealtime breaks considered working time and therefore compensable?
It depends on whether or not the employee’s work is not continuous and that during the meal time break, employees can leave the working place and rest completely. If they can, then it is not considered as working time. However, if they cannot, then it is considered working time, and is compensable.
In National Development Company v. CIR, the Court held “The idle time that an employee may spend for resting and ruing which he may leave the spot or place of work through not the premises of his employer, is not counted as working time only where the work is broken or is not continuous. […] ‘such time for eating can only be segregated or deducted from his work, if the same is not continuous and the employee can leave his owrking place and rest completely.”
What are the normal work hours of health personnel?
Labor Code. Art. 83. par. 2. Normal Hours of Work. – (xxx xxx) 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.
What is Compressed Work Week?
Compressed Work Week is an alternative arrangement whereby the normal workweek is reduced to less than six (6) days but the total number of normal work hours per week shall remain at 48 hours. The normal workday is increased to more than eight hours without corresponding overtime premium. This concept can be adjusted accordingly in cases where the normal workweek of the firm is five day. [DOLE Dep’t Advisory No. 02 (2004), Implementation of Compressed Workweek Schemes.].
What is the maximum number of work hours per day in a Compressed Workweek set-up?
12 hours.
“Unless there is a more favorable practice existing in the firm, work beyond eight hours will not be compensable by overtime premium provided the total number of hours worked per day shall not exceed twelve (12) hours. In any case, any work performed beyond 12 hours a day or 48 hours a week shall be subject to overtime premium.
