KINDS OF LEAVES

• Right to holiday pay


  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
• Compensation for working on a holiday

  The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate
• Regular holidays


  • New Year's Day
  • Maundy Thursday
  • Good Friday
  • the ninth of April
  • the first of May
  • the twelfth of June
  • the fourth of July
  • the thirtieth of November
  • the twenty-fifth of December
  • the day designated by law for holding a general election
• The list of regular holidays in paragraph c is obsolete
• To receive holiday pay, the employee should meet certain conditions explained in Book III, Rule IV of the Implementing Rules
• The listed regular holidays apply nationally, in Christian and non-Christian areas, to covered workers regardless of faith
• Service incentive leave


  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
• Exceptions to service incentive leave

  • Those already enjoying the benefit
  • Those enjoying vacation leave of at least five days
  • Those employed in establishments regularly employing less than ten employees
  • Establishments exempted from granting this benefit by the secretary of Labor after considering the viability or financial condition of such establishment
• Service charges


  All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of eighty five percent (85%) for all covered employees and fifteen percent (15%) for management. The share of the employees shall be equally distributed among them. In case the service charge is abolished, the share of the covered employees shall be considered integrated in their wages
• Wage


  Remuneration or earnings, however designated, (legal tender) 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
• Fair and reasonable value


  Shall not include any profit to the employer or to any person affiliated with the employer
• Apprentice wage rates


  Shall in no case fall below 75% of the applicable minimum wage
• Learner wage rates


  Shall begin at not less than 75% of the applicable minimum wage
• Handicapped worker wage rates

  Shall not be less than 75% of the applicable minimum wage
• All recognized learnership and apprentice agreements shall be considered automatically modified insofar as their wage clauses are concerned to reflect the prescribed wage rates set by the Regional Tripartite and Wages Productivity Board
• Facilities


  Items of expense necessary for the laborer's and his family's existence and subsistence. They form part of the wage and when furnished by the employer are deductible therefrom since if they are not furnished, the laborer would spend and pay for them just the same i.e. meals; housing for dwelling purposes; fuel including electricity, gas, water for the non-commercial personal use of the employee; and other articles and services given primarily for the benefit of the worker or his family
• Supplements


  Extra remuneration or special privileges or benefits given to or received by the worker over and above his ordinary earnings or wages. Granted for the convenience of the employer
• The criterion in determining whether an item is a supplement or facility is not so much with the kind of benefit or item given, but its purpose
• If the employer fails to prove that an item is a facility, then it is a supplement and once given, a supplement cannot be eliminated or diminished
• Lodging is not customarily furnished by the employer to his employees. The deduction of P5.00 per day for board charges is not with the written consent of the employee
• Basic salary


  The rate of pay for a standard work period, exclusive of such additional payment as bonuses and overtime
• Emergency cost of living allowances are considered part of regular wage
• If a company cannot pay a living wage, it has no business operating at the expense of the lives of the workers
• Gratuity


  That paid to the beneficiary for past services rendered purely out of the generosity of the giver or grantor. While it may be enforced once it forms part of a contractual undertaking, the grant of such benefit is not mandatory so as to be considered a part of labor standard law
• The minimum wage law directly benefits the lowly paid employees who receive inadequate wages on which they support themselves and their families
• 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
• Unless agreed otherwise, statutory benefits are apart from contractual benefits
• Benefits voluntarily given cannot be unilaterally withdrawn by the employer
• The company has the right to change the basis of the payment of the wages of the workers, but they cannot be deprived of benefits they were already enjoying at the time of such change
• Wage rationalization


  To ensure decent standard of living for the workers and their families, to guarantee the rights to its just share in the fruits of production, to enhance employment generation in the countryside through industry dispersal, and to allow business and industry reasonable returns on investment, expansion and growth
• National Wages and Productivity Commission

  Acts as the national consultative and advisory body to the President and Congress on matters relating to wages, incomes and productivity, formulates policies and guidelines on wages, incomes and productivity improvement, prescribes rules and guidelines for the determination of appropriate minimum wage and productivity measures, reviews regional wage levels set by the Regional Tripartite Wages and Productivity Boards
• No preliminary or permanent injunction or temporary restraining order may be issued by any court, tribunal or any entity against any proceedings before the Commission or the Regional Boards
• Regional Tripartite Wages and Productivity Boards


  Develop plans, programs and projects relative to wages, incomes and productivity improvement, determine and fix minimum wage rates applicable in their region, provinces or industries, receive, process and act on applications for exemption from prescribed wage rates
• The ECOLA (emergency cost of living allowance) now forms part of regular wage
• Standards/criteria for minimum wage fixing

  • The demand of living wages
  • Wage adjustment vis-à-vis the consumer price index
  • The cost of living and changes and their families
  • The need to induce industries to invest in the countryside
  • Improvements in the standard of living
  • The prevailing wage levels
  • Fair return of the capital invested and capacity to pay of employers
  • Effects on employment generation and family income
  • The equitable distribution of income and wealth along the imperatives of economic and social development
• Whenever conditions in the region so warrant, the Regional Board shall investigate and study pertinent facts and, based on the standards and criteria prescribed, shall proceed to determine whether a wage order should be issued
• Factors to consider when determining wages

  • The Need To Induce Industries To Invest In The Countryside
  • Improvements In The Standard Of Living
  • The Prevailing Wage Levels
  • Fair Return Of The Capital Invested And Capacity To Pay Of ER‟s
  • Effects On Employment Generation And Family Income
  • The Equitable Distribution Of Income And Wealth Along The Imperatives Of Economic And Social Development
• Wages shall include wages varying within industries, provinces or localities if in the judgment of the Regional Board conditions make such local differentiation proper and necessary to effectuate the purpose of this title
• Wage Order


  1. Regional Board investigates and studies pertinent facts

  2. Based on standards and criteria, determines whether a wage order should be issued

  3. Conducts public hearings, consultations, giving notices to EE‟s and ER‟s groups, provincial, city and municipal officials and other interested parties
• Any party aggrieved by the wage order issued by the Regional Board may appeal such order to the Commission within 10 calendar days from the publication of such order. It shall be mandatory for the Commission to decide such appeal within 60 calendar days from the filing thereof