Book 3

• 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
• Managerial employees


  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


  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
• The normal hours of work of any employee shall not exceed eight hours a day
• Health personnel in cities and municipalities with a population of at least one million or in hospitals and clinics with a bed capacity of at least (100) shall hold regular office hours for eight (8) hours a day, for 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 (30%) of their regular wage for work on the sixth day
• Health personnel


  Resident physicians, nurses, nutritionists, dietitians, pharmacists, social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital or clinic personnel
• Hours worked


  All time during which an employee is required to be on duty or to be at a prescribed workplace, and all time during which an employee is suffered or permitted to work
• Rest periods of short duration during working hours shall be counted as hours worked
• 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
• 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
• Undertime work on any particular day shall not be offset by overtime work on any other day
• Any employee may be required by the employer to perform overtime work in certain cases such as war, national or local emergency, preventing loss of life or property, urgent work on machines, preventing loss of perishable goods, or completing work started before the eighth hour
• It shall be the duty of every employer, whether operating for profit or not, to provide each of his employees a rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days
• The employer may require his employees to work on their rest day in certain cases such as emergencies, urgent work on machinery, abnormal pressure of work, preventing loss of perishable goods, or continuous operations
• Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least (30%) of his regular wage
• When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage for work performed on Sundays and holidays
• Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30%) of the regular wage of the employee, and where such holiday work falls on the employee's scheduled rest day, he shall be entitled to an additional compensation of at least fifty per cent (50%) of his regular wage
• 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 who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay
• All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of 85% for all covered employees and fifteen percent 15% for management
• Person


  An individual, partnership, association, corporation, business trust, legal representatives, or any organized group of persons
• Employer


  Includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include the government and all its branches, subdivisions and instrumentalities, all government-owned or controlled corporations and institutions, as well as non-profit private institutions, or organizations
• Employee


  Includes any individual employed by an employer
• Agriculture


  Includes farming in all its branches and, among other things, includes cultivation and tillage of soil, dairying, the production, cultivation, growing and harvesting of any agricultural and horticultural commodities, the raising of livestock or poultry, and any practices performed by a farmer on a farm as an incident to or in conjunction with such farming operations, but does not include the manufacturing or processing of sugar, coconuts, abaca, tobacco, pineapples or other farm products
• Employ


  Includes to suffer or permit to work
• Wage


  The remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for services rendered or to be rendered and includes the fair and reasonable value
• This Title shall not apply to farm tenancy or leasehold, domestic service and persons working in their respective homes in needle work or in any cottage industry duly registered in accordance with law
• The minimum wage rates for agricultural and non-agricultural employees and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards
• Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code
• The Secretary of Labor and Employment shall regulate the payment of wages by results, including pakyao, piecework, and other non-time work, in order to ensure the payment of fair and reasonable wage rates, preferably through time and motion studies or in consultation with representatives of workers' and employers' organizations
• No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when expressly requested by the employee
• Wages shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen days
• Payment of wages shall be made at or near the place of undertaking, except as otherwise provided by such regulations as the Secretary of Labor and Employment may prescribe under conditions to ensure greater protection of wages
• Wages shall be paid directly to the workers to whom they are due, except in cases of force majeure rendering such payment impossible
• Place of payment


  Payment of wages shall be made at or near the place of undertaking, except as otherwise provided by such regulations as the Secretary of Labor and Employment may prescribe under conditions to ensure greater protection of wages
• Direct payment of wages


  Wages shall be paid directly to the workers to whom they are due, except in cases of force majeure rendering such payment impossible or under other special circumstances, or where the worker has died
• Contractor or subcontractor fails to pay the wages of his employees

  The employer shall be jointly and severally liable with his contractor or subcontractor to such employees to the extent of the work performed under the contract
• Labor-only contracting


  The person supplying workers to an employer does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, and the workers recruited and placed by such person are performing activities which are directly related to the principal business of such employer. In such cases, the person or intermediary shall be considered merely as an agent of the employer who shall be responsible to the workers in the same manner and extent as if the latter were directly employed by him.
• Indirect employer


  Any person, partnership, association or corporation which, not being an employer, contracts with an independent contractor for the performance of any work, task, job or project