Labor Video

• Labor Standards


  Philippine laws that provide minimum requirements regarding work conditions, work hours, wages, benefits, and other employment conditions that are being implemented by management
• Labor Relations


  Goal is to strike the proper balance between protection of workers rights vs. the exercise of management prerogatives by the employer in accordance with law and to achieve industrial peace
• Industrial peace allows the company to be more productive and for workers to earn their living
• State Protection of Labor


  • Afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all
  • Guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including right to strike in accordance with law
  • Security of tenure, humane conditions of work, and a living wage
• Workers cannot be arbitrarily fired by managers or employers
• Workers have the right to participate in policy and decision-making processes affecting their rights and benefits
• The state shall promote the principle of shared responsibility between workers and employers to foster industrial peace
• The state shall protect the rights of labor (workers) to its just fruits of production and the right of enterprises (employers) to reasonable returns on investments
• Labor Code


  The state shall afford protection to labor, and all doubts in implementation and interpretation of the Law will be resolved in favor of labor or employees
• Statutory Benefits of Workers


  • Existence of an employer-employee relationship (4-fold test: selection and engagement, payment of wages, power of dismissal, power to control the employee's conduct)
  • Number of workers employed (1-5, 1-9, 10 or more)
  • Nature of the employment (Agricultural, Retail/Service)
• Minimum Wage


  The lowest amount of wage that an employer should pay an employee, the law provides a minimum, not the maximum, and employer and employee can negotiate a higher pay
• Exemptions to Minimum Wage


  • Distressed establishments
  • New business enterprises
  • Retail/service establishments employing not more than 10 workers
  • Establishments adversely affected by natural calamities
• No Work, No Pay Policy


  A fair day's wage for a fair day's labor, applies if the cessation of work is voluntary (e.g. strike), does not apply if the non-rendering of service was involuntary (e.g. lockout)
• Overtime, Holiday, Premium, Night Shift Differential Pay

  • Overtime work: additional compensation equivalent to wage plus 25%
  • Work on a holiday or rest day: additional compensation of rate for the first 8 hours plus 30%
  • Work on a rest day: additional compensation of at least 30% of regular wage
  • Work on a special holiday: additional 30% of wage
  • Work on a regular holiday: if not working, paid regular daily wage, if working, additional 100%
  • Night Shift Differential: not less than 10% of regular wage for each hour of work between 10 PM to 6 AM
• Salary Differential should be paid by the employer if money claims are based on salary differential, service incentive leave, holiday pay, and 13th month pay, while the burden of proof is on the employee if money claims are based on overtime and premium for holidays and rest days
• 13th Month Pay and Bonus


  1/12 of the basic salary of an employee within a calendar year, paid not later than December 24 every year, companies can no longer remove benefits that have become a management practice
• Service Leave, Maternity Leave, Magna Carta for Women

  • Service Incentive Leave: every employee who rendered at least 1 year of service shall be entitled to yearly SIL of five days with pay
  • Special Leave Benefits for Women: 2 months with full pay for surgery caused by gynecological disorders for women employees with at least 6 to 12 months of continuous aggregate service
• Paternity, Solo Parent, VAWC Leave


  • Paternity Leave: 7 days with full pay for the first 4 deliveries of the legitimate spouse
  • Parental Leave (Solo Parent): not more than 7 working days every year for solo parent employees with at least 1 year of service
  • VAWC Victims: paid leave of absence up to 10 days in addition to other paid leaves, can be extended by court order
• Expanded Maternity Leave


  • 105 days paid leave for live birth, 7 days transferrable to the father, additional 15 days for solo parents, can avail additional 30 days leave without pay, 60 days paid leave for miscarriages or emergency termination of pregnancy
• Retirement Pay


  Retirement age: 60 to 65, compulsory retirement age: 65, must have served at least five years, retirement pay: 1/2 month salary for every year of service
• Separation Pay


  • For installation of labor-saving devices or redundancy: 1 month pay for every year of service, if less than one year: 1 month pay
  • For retrenchment and closures: 1/2 month pay for every year of service, if less than one year: 1 month pay
  • Employers are not compelled to pay separation pay if they close due to serious business losses or financial reverses (burden of proof on employer)
• SSS, Pagibig, and PhilHealth

  SSS: government-mandated deductions for retirement income, Pag-IBIG: contributions for housing, PhilHealth: contributions for healthcare, higher salary = higher contributions