LABOR LAW Therefore, part-time work, or a day’s work of

not less than eight hours, is not prohibited.

WEEK 3 MATERIAL
It is not prohibited to have normal
hours of work of less than eight hours a day.
Part I. Mandatory Benefits
What the law regulates is work hours exceeding
1. 8-Hour Work (Art. 83) Hours Worked eight - it prescribes the maximum but not the
2. Meal Period (Art. 85) minimum.
3. Night Shift Differential (Art. 86)
Art. 83 do not say that the normal hours
4. Overtime Pay (Art. 87)
of work is or should be eight hours but that it
5. Weekly Rest Period (Art. 91)
shall not exceed eight.
6. Premium Pay (Art. 93)
7. Holiday Pay (Art. 94) Broken Hours
8. Service Incentive Leaves (Art. 95)
Minimum normal 8 working hours fixed
Article 83. Normal hours of work. The normal by law need not be continuous to constitute the
hours of work of any employee shall not exceed legal working day. It may mean broken hours of
eight (8) hours a day. say, 4 hours in the morning and 4 hours in the
evening or variation thereof provided the total
Purpose of the 8-Hour Labor Law
of 8 hours is accomplished within the work day.
The Eight-hour Labor Law was enacted
Compressed workweek
not only to safeguard the health and welfare of
the laborer or employee, but in a way to It is a scheme where the normal
minimize unemployment by forcing employers, workweek is reduced to less than 6 days but the
in cases where more than 8-hour operation is total number of work-hours of 48 hours per
necessary to utilize different shifts of laborers or week shall remain.
employees working only for 8 hours each.
The normal workday is increased to
Rationale of 8 hours of work: more than 8 hours but not to exceed 12 hours,
without corresponding overtime premium. The
1. To safeguard the health and welfare of
concept can be adjusted accordingly depending
the laborer; and
on the normal workweek of the company.
2. To minimize unemployment by utilizing
different shifts (Manila terminal Co., Inc Requisites:
vs. CIR)
1. The scheme is expressly and voluntarily
Part-Time Work supported by majority of the employees
2. In firms using substances, or operating
Considering the purpose of the law, as
in conditions that are hazardous to
mentioned above, it is not prohibited to have
health, a certification is needed from an
“normal hours of work” of less than eight hours
accredited safety organization or the
a day. What the law regulates is work hours
firm’s safety committee that work
exceeding eight. It prescribes a maximum but
beyond8 hours is within the limit or
not minimum. Art. 83 does not say that the
levels of exposure set by DOLE’s
normal hours of work is or should be eight
occupational safety and health
hours but that it shall not exceed eight.
standards.
 3. The DOLE Regional office is duly but should not last for more than six (6)
notified. months.
2. Rotation of workers: where the
Valid Compressed work week:
employees are rotated or alternately
The validity of the reduction of working hours provided work within the workweek
can be upheld when the arrangement is: 3. Forced leave: where the employees are
required to go on leave for several days
1. Temporary or weeks, utilizing their leave credits if
2. It is a more humane solution instead of there are any.
a retrenchment of personnel; 4. Broken-time schedule: where the work
3. There is notice and consultations with schedule is not continuous but the
the workers and supervisors; number of work hours within the day or
4. A consensus is reached on how to deal week is not reduced.
with deteriorating economic conditions; 5. Flexi-holiday schedule: where the
and employees agree to avail themselves of
5. It is sufficiently proven that the the holidays on some other days,
company was suffering from losses. provided that there is no diminution of
Conditions where a “Compressed workweek” existing benefits as a result of such
schedule may be legally authorized as an arrangement.
exception to the 8-hour a day requirement Working Time:
under the labor code:
Working time is one during which an employee
1. The employee voluntarily agrees to it is actually working. It may include an instance
2. There is no diminution in their weekly when an employee is not actually working but
or monthly take home pay or fringe he is required to be present in the employer’s
benefits premises. Thus, the fact that he is required to
3. The benefits are more than or at least be present although not actually doing any
commensurate or equal to what is due work, is still deemed working time.
to the employees without the
compressed work week When Hours worked are Compensable:
4. Overtime pay will be due and
1. Employee is required to be on duty or
dependable when they are required to
to be at a prescribed workplace;
work on those days which should have
2. Employee is suffered or permitted to
ceased to be working days because of
work;
the compressed work week schedule.
3. Rest periods of short duration during
5. No strenuous physical exertion or that
working hours which shall not be more
they are given adequate rest periods.
than 20 minutes; and
6. It must be for a temporary duration as
4. Meal periods of less than 20 minutes
determined by the DOLE.
Note: Travel time, when beneficial to the
Types of Flexible working arrangements
employer is compensable (Rada vs. NLRC)
1. Reduction of workdays: Where the
Principles in determining hours worked:
normal work days per week are reduced
 1. All hours which the employee is 1. Waiting is an integral part of
required to give to his employer his work
regardless of whether or not such hours 2. The employee is required or
are spent in productive labor or involve engaged by the employer to
physical or mental exertion. wait; or
3. When an employee is
2. Rest period is excluded from hours required to remain on call in
worked, even if employee does not the employer’s premises or
leave his workplace, it being enough so close thereto that he
that: cannot use the time
a. He stops working effectively and gainfully for
b. May rest completely his own purpose.
c. May leave his workplace, to go
Travel Time:
elsewhere, whether within or
outside the premises of the 1. Travel from home to work
workplace.
General Rule: Normal travel from home to work
3. All time spent for work is considered is not working time.
hours worked if: Exceptions:
a. The work performed was necessary
b. If it benefited the employer a. Emergency call outside his regular
c. Or the employee could not abandon working hours where he is required to
his work at the end of his normal travel to his regular place of business or
working hours because he had no some other work site.
replacement b. Done through a conveyance provided by
d. Provided, the work was with the the employer.
knowledge of his employer or c. Done under the supervision and control
immediate supervisor of the employer.
d. Done under vexing and dangerous
4. The time during which an employee is circumstances.
inactive by reason of interruptions in his
work beyond his control shall be 2. Travel that is all in a day’s work - time
considered working time: spent in travel as part of the
a. If the imminence of the resumption employees principal activity.
of the work required the employees Example: Travel from job site to hob site
presence at the place of work; or during the work day, must be counted as
b. If the interval is too brief to be working hours.
utilized effectively and gainfully in
the employees own interest. Travel away from home

Rules on Hours Worked: General Rule:

A. Waiting Time: a. Travel that requires an overnight stay on

the part of the employee when it cuts
It shall be considered as working time if:
 across the employee’s workday is clearly provided that any of the following conditions
working time. are present:
b. The time is not only hours worked on
a. The employees can leave their work place or
regular workdays but also during
go elsewhere whether within or without the
corresponding working hours on non-
work premises; or
working days. Outside of these regular
working hours, travel away from home b. The employees can use the time effectively
is not considered working time. for their own interest.
Exception: During meal period or when
employee is permitted to sleep in adequate
facilities furnished by the employer.

Sleeping time

Whether sleeping time allowed an

employee will be considered as per his working
time will depend upon the express or implied
agreement of the parties.

In the absence of an agreement, it will

depend upon the nature of the service and its
relation to the working time.

Compensable: If sleeping time is subject to

serious interruption or takes place under
conditions substantially less desirable than
would be likely to exist at the employer’s home.

Not Compensable: If there is an opportunity for

comparatively uninterrupted sleep under fairly
desirable conditions.

It is compensable working time if the nature of

the employee’s work allows sleeping without
interrupting or prejudicing the performance of
his work.

Power Interruptions

- Brownouts of short duration but not

exceeding 20 minutes shall be treated as
worked or compensable hours whether used
productively by the employees or not;

- Brownouts running for more than

20minutes may not be treated as hours worked
 Week 4 20 minutes shall be considered as compensable
working time.
Meal Break, Overtime Pay, Night
Compensability of Meal periods during
Shift Differential overtime work:

A. Meal Break: Meal periods provided during overtime work

Duration: Every employer shall give his are compensable; since the 1 hours meal period
employees not less than 60 minutes or 1 hour (non-compensable) is not given during overtime
time-off for regular meals (Labor Code, Art. 85) work because the latter is usually for a short
period and to deduct from the same would
As a general rule, employees are reduce to nothing the employee’s overtime
entitled to at least one hour time-off for regular work. Thus, the 1 hour break for meals during
meals which can be taken inside or outside overtime should be treated as compensable.
company premises. For a full one-hour
undisturbed lunch break, the employees can Where Meal Periods are shortened:
freely and effectively use this hour not only for Compensable or not compensable?
eating but also for their rest and comfort which
1. Compensable – At the instance of the
are conducive to more efficiency and better
employer, when:
performance in their work. Since the employees
a. Work is non-manual in nature or does
are no longer required to work during this one-
not involve strenuous physical exertion;
hour lunch break, there is no more need for
b. Establishment regularly operates less
them to be compensated for this period. (Sime
than 16 hours a day;
Darby Philippines Inc. v. NLRC)
c. Work is necessary to prevent serious
loss of perishable goods
Non-Compensability of the Meal Period
d. Actual or impending emergency or
It is not compensable during a time-off.
there is urgent work to be performed on
The employee must completely relieved from
machineries and equipment to avoid
duty.
serious loss which the employer would
otherwise suffer
Compensable Meal Period
e. Establishment regularly operate less
It is compensable where the lunch
than 16 hours a day;
period or meal time:
f. Work is necessary to prevent serious
1. Is predominantly spent for the
loss of perishable goods;
employer’s benefit; or
g. Actual or impending emergency or
2. When it is less than 60 minutes.
there is urgent work to be performed on
machineries and equipment to avoid
Note: Where during a meal period, the
serious loss which the employer would
laborers are required to stand by for
otherwise suffer.
emergency
work, or where the meal hour is not one of
2. Not Compensable - Employee
complete rest, such is considered overtime
requested for the shorter meal time so
(Pan Am vs. Pan Am employees association).
that he can leave work earlier than the
Rest periods or coffee breaks running from 5 to
previously established schedule.
 Requisites: every work done, whether such work is part or
a. Employees voluntarily agree in not part of the worker’s
writing and are willing to waive regular shift. The covered period of night shift
OT pay for the shortened meal differential is the work performed between
period; 10PM until 6AM of the following day.
b. No diminution in the salary and
other fringe benefits of the The simplest formula to compute the night
employees which are existing shift differential is:
before the effectivity of the
shortened meal period. NSD = (Hourly rate * 10%) * number of hours
c. Work if the employees do not worked from 10PM to 6AM
involve strenuous physical
exertion and they are provided It is to be emphasized that the Labor Code only
with adequate coffee breaks in provides the minimum required payments. The
the morning and afternoon. employer or the union may have higher
d. Value of the proposed work premium through an agreement. It should be
arrangements is equal to or however, stated in the CBA the percentage of
commensurate with the agreed premium that has to be followed by the
compensation due them for the company.
shortened meal period as well
as the overtime pay for 30 General Rule: All employees are entitled to Nigh
minutes as determined by the Shift Differential
employees concerned;
e. Overtime pay will become due Exceptions:
and demandable after the new 1. Those of the government and any of its
time-schedule political subdivisions, including
f. Arrangement is of temporary government-owned and/or controlled
duration corporations;
2. Those of retails and service
Note: The implementing rules allow the meal establishments regularly employing not
time to be less than 60 minutes, under specified more than five (5) workers;
cases and in no case shorter than 20 minutes. 3. Domestic helpers and persons in the
personable service of another;
B. NIGHT SHIFT DIFFERENTIAL 4. Managerial employees
5. Field personnel and other employees
Article 86 of Philippine Labor Code states: whose time and performance is
unsupervised by the employer including
“Every employee shall be paid a night shift those who are engaged on task or
differential of not less than ten percent (10%) of contract basis, purely commission basis,
his regular wage for each hour of work or those who are paid a fixed amount
performed between ten o’clock in the evening for performing work irrespective of the
and six o’clock in the morning.” It shall be noted time consumed in the performance
that night shift differential shall be applied for thereof.
Where the night-time work of an employee different concepts such as Christmas bonus and
overlaps with overtime work, the receipt of other fringe benefits.
overtime pay does not preclude the receipt of It is computed by multiplying the overtime
night differential pay. The latter is night pay; the hourly rate by the number of hours in excess
former is payment beyond eight hour work. of eight.

Non-Waivability Note: Express instruction from the employer to

the employee to render overtime work is
General Rule: Waiver of NSD is against public not required for the employee to be entitled to
policy overtime pay; it is sufficient that the employee
is permitted or suffered to work. However,
Exception: Waiver is allowed if this will result to written authority after office hours during rest
higher or better benefits to employees. days and holidays are required for entitlement
to compensation.
Night Differential in Overtime Pay:
Rationale behind the OT pay:
If work is done between 10PM and 6AM is
overtime work, then the 10% NSD should be Employee is made to work longer than what is
based on the overtime rate. commensurate with his agreed compensation
for the statutory fixed or voluntarily agreed
When the tour of duty of an employee falls at hours of labor he is supposed to do. (PNB vs.
night time, the receipt of overtime pay will PEMA and CIR)
not preclude payment for work done during the
night and the other is payment for the excess of The reason behind the law requiring additional
the regular eight-hour work (Naric vs Naric compensation for work beyond the normal
workers union) working day is to encourage employers to
dispense with such work thus providing
As provided by the Labor Code, the table below employees an opportunity to satisfy their
shows the rate of night work pay and other mental, moral and spiritual needs. They may
compensation for certain days of work. For the have more hours to devote to reading,
matter of illustration, we are using the NCR amusement, and other recreational
Minimum Wage (WO No. NCR-14) as reference. activities necessary for their well-being.
Moreover, they could share longer hours in the
C. Overtime Pay company of their family, attending to spiritual or
religious needs. Law on overtime will surely
Overtime pay is the additional compensation of ease unemployment problem, for employees to
at least 25% on the regular wage for the work in other shifts necessary for the operation
service or work rendered or performed in excess of the business. (Shell Co. vs. NLU)
of 8 hours a day by employees or laborers in
employment covered by the 8 hour Labor Law. Condition for Entitlement to OT pay:
(Labor Code Art. 87)
Entitlement to OT pay must first be supported
Overtime pay is based on regular base pay by sufficient proof that said overtime work was
excluding money received by employee in
actually performed, before an employee may Private respondent appealed from the POEA’s
avail such benefit (Cagampanan vs. NLRC) Decision to the NLRC on August 24, 1987. On
March 16, 1988, the NLRC promulgated a
(Cagampanan vs. NLRC) Decision, REVERSING and SETTING ASIDE and
another one entered dismissing the cases for
FACTS: lack of merit.

On April 17 and 18, 1985, petitioners, all On May 8, 1988, petitioners filed an Urgent
seamen, entered into separate contracts of Motion for Reconsideration of the NLRC’s
employment with the Golden Light Ocean Decision but the same was denied by the NLRC
Transport, Ltd., through its local agency, private for lack of merit in its Resolution dated
respondent ACE MARITIME AGENCIES, INC. with September 12, 1988. Hence, this appeal from
their respective ratings and monthly salary the decision and resolution of the respondent
rates. Petitioners were deployed on May 7, NLRC.
1985, and discharged on July 12, 1986.
Thereafter, petitioners collectively and/or Petitioners allege that respondent Commission,
individually filed complaints for non-payment of NLRC, gravely abused its discretion or erred in
overtime pay, vacation pay and terminal pay reversing and setting aside the POEA decision
against private respondent. In addition, they and correspondingly dismissing the appeal of
claimed that they were made to sign their petitioners, allegedly in contravention of law
contracts in blank; that although they agreed to and jurisprudence.
render services on board the vessel Rio
Colorado managed by Golden Light Ocean Private respondent maritime company disclaims
Transport, Ltd., the vessel they actually boarded the aforesaid allegations of petitioners. The
was MV “SOIC I” managed by Columbus Solicitor General, arguing for public respondent
Navigation; and more so, petitioners de Castro NLRC, contends that:
and de Jesus charged that although they were
employed as ordinary seamen, they actually The NLRC did not abuse its discretion in the
performed the work and duties of Able Seamen. rendition of subject decision because the
evidence presented by petitioners in support of
Private respondent was furnished with copies of their complaint is by itself sufficient to back up
petitioners’ complaints and summons, but it the decision. The issue of the disallowance of
failed to file its answer within the reglementary overtime pay stems from an interpretation of
period. Thus, on January 12, 1987, an Order was particular provisions of the employment
issued declaring that private respondent has contract.
waived its right to present evidence in its behalf
and that the cases are submitted for decision. ISSUE:

On August 5, 1987, the Philippine Overseas Whether or not respondent Commission NLRC
Employment Administration (POEA) rendered a gravely abused its discretion or erred in
Decision DISMISSING petitioners’ claim for REVERSING the decision of POEA (in granting
terminal pay but GRANTED their prayer for leave overtime pay to petitioners equivalent to 30% of
pay and overtime pay. their basic pay)
 schedule. For the employer to give him
overtime
pay for the extra hours when he might be
HELD: No sleeping or attending to his personal chores or
even just lulling away his time would be
The NLRC cannot be faulted for disallowing the extremely unfair and unreasonable.
payment of overtime pay because it
merely straightened out the distorted Reiterated in the case of National Shipyards
interpretation asserted by petitioners and and Steel Corporation v. CIR (3 SCRA 890), the
defined the correct interpretation of the SC ruled:
provision on overtime pay embodied in the
contract conformably with settled doctrines on We cannot agree with the Court below that
the matter. Notably, the NLRC ruling on the respondent Malondras should be paid overtime
disallowance of overtime pay is ably supported compensation for every hour in excess of the
by the fact that petitioners never produced any regular working hours that he was on board his
proof of actual performance of overtime work. vessel or barge each day, irrespective of
whether or not he actually put in work during
Petitioners have conveniently adopted the view those hours. Seamen are required to stay on
that the “guaranteed or fixed overtime board their vessels by the very nature of their
pay of 30% of the basic salary per month” duties, and it is for this reason that, in addition
embodied in their employment contract to their regular compensation, they are given
should be awarded to them as part of a free living quarters and subsistence allowances
“package benefit.” They have theorized that when required to be on board. It could not have
even without sufficient evidence of actual been the purpose of our law to require their
rendition of overtime work, they would employers to pay them overtime even when
automatically be entitled to overtime pay. Their they are not actually working; otherwise, every
theory is erroneous for being illogical and sailor on board a vessel would be entitled to
unrealistic. Their thinking even runs counter to overtime for sixteen hours each day, even if he
the intention behind the provision. The contract spent all those hours resting or sleeping in his
provision means that the fixed overtime pay of bunk, after his regular tour of duty. The correct
30% would be the basis for computing the criterion in determining whether or not sailors
overtime pay if and when overtime work would are entitled to overtime pay is not, therefore,
be rendered. Simply, stated, the rendition of whether they were on board and cannot leave
overtime work and the submission of sufficient ship beyond the regular eight working hours a
proof that said work was actually performed are day, but whether they actually rendered service
conditions to be satisfied before a seaman could in excess of said number of hours.
be entitled to overtime pay which should be
computed on the basis of 30% of the basic Overtime Pay Rates:
monthly salary. In short, the contract provision
guarantees the right to overtime pay but the
entitlement to such benefit must first be
established. Realistically speaking, a seaman, by On an ordinary day, the overtime rate per hour
the very nature of his job, stays on board a ship is determined as follows:
or vessel beyond the regular eight-hour work
Let say the employee hourly rate is Php Under time not offset by Overtime
57.00/hour, then the overtime rate is Php 71.25
Php 71.56 = (Php 57.00 X 1.25%) Where a worker incurs under time hours during
his regular daily work, said under time hours
Basis of Computation should not be offset against the overtime hours
on the same day or on any other day.
Regular wage which includes the cash wage
only, without deduction on account of the Offsetting the overtime with under time and at
facilities provided by the employer (Labor Code the same time charging said under time to the
Art. 90) accrued leave is unfair and cannot be done.
(NAWASA vs. NWSA Consolidated Union.
Waiver of OT Pay
General Rule: The right to overtime pay cannot Emergency OT Work
be waived. The right is intended for the
benefit of the laborers and employees. Any General Rule: An employee may not be
stipulation in the contract that the laborer compelled to render OT work; OT work is
shall work beyond eight hours without voluntary.
additional compensation for the extra hours is
contrary to law and null and void. Exceptions:
1. When the country is at war or when any
The right cannot be waived, because while the other national or local emergency has
workers did not claim overtime compensation been declared by Congress or the
and they could not be held to have impliedly President;
waived such extra compensation for the obvious 2. When overtime work is necessary to
reason that they could not have expressly prevent loss of life or property, or in
waived it. case of imminent danger to public
safety due to actual or impending
Exceptions: emergency in the locality caused by
serious accident, fire, floods, typhoons,
1. When the alleged waiver of overtime earthquake, epidemic or other disaster
pay is in consideration of benefits and or calamities;
privileges which may be more than 3. When there is urgent work to be
what will accrue to them in overtime performed on machines, installations,
pay, the waiver may be permitted. or equipment, in order to avoid serious
2. Compressed Work Week loss or damage to the employer or
some other causes of similar nature;
Overtime Pay in a Compressed Workweek 4. When the work is necessary to prevent
Scheme loss or damage to perishable goods;
5. When the completion or continuation of
Any work performed beyond 12 hours a day or work started before the 8th hour is
48 hours a week shall be subject to OT Pay necessary to prevent serious
obstruction or prejudice to the business
or operations of the employer; or
 6. When overtime work is necessary to Exceptions:
avail of favorable weather or
environmental conditions where • CBA;
performance or quality of work is
• Rules and regulations as the
dependent thereon.
Secretary of Labor and employment
NOTE: There should be payment of additional
compensation. Employee’s refusal to obey the
provides;
order of the employer constitutes • Preference of employee based on
insubordination for which he may be subjected religious grounds– employee shall
to disciplinary action. make known his preference in
writing at least 7 days before the
desired effectivity of the initial rest
LABOR LAW day so preferred.
MATERIAL 5: REST PERIOD,
PREMIUM PAY, HOLIDAY PAY Exception to the exception on number 3:

Rest Periods Employer may schedule the WRD of his

choice for at least 2 days in a month if the
Right to weekly rest day – Every employer shall preference of the employee will inevitably
give his employees a rest period of not less than result in:
24 consecutive hours after every 6 consecutive
normal work days (IRR, Book II, Rule III, Sec. 3) • Serious prejudice to the operations
of the undertaking; and
Rest day not necessarily Sunday or Holiday
• The employer cannot normally be
expected to resort to other remedial
All establishments and enterprises may measures.
operate or open for business on Sundays
and holidays provided that the employees The employer is mandated to respect the
are given the weekly rest day and the choice of its employee as to their rest day
benefits provided under the law. based on religion.

Scope: It shall apply to all employers Right of the employee to know the
whether operating for profit or not, schedule of their WRDs:
including public utilities operated by private
persons. The employer shall make known rest period
by means of:
Person who determines the Weekly rest
day:
• Written notice
• Posted conspicuously in the
General Rule: Employer shall determine and
workplace
schedule the weekly rest day of his
employee.
 • At least 1 week before it becomes
effective Premium Pay

• It is the additional compensation for

Employee to work on his rest day: work rendered by the employee on days
when normally he should not be
General Rule: The employee cannot be working such as special holidays and
compelled by the employer to work on his rest WRDs.
day. • Refers to the additional compensation
required by law to be paid for work
Exceptions: performed within the regular eight (8)
hours on non-working days such as rest
• In case of actual or impending days and special holidays.
emergencies caused by serious • Refers to the regular wage combined
accident, fire, flood, typhoon, with the additional compensation of
earthquake, epidemic or other disaster 30% under Article 93 and 100% under
or calamity to prevent loss of life and Article 94.
property, or imminent danger to public
safety; Employer and Employee can agree on the rate
• In cases of urgent work to be performed of premium pay other than that provided by
on the machinery, equipment, or law.
installation, to avoid serious loss which
the employer would otherwise suffer; • Nothing shall prevent the employer and
• In the event of abnormal pressure of his employee or their representatives
work due to special circumstances, from entering into any agreement with
where the employer cannot ordinarily terms more favorable to the employee;
be expected to resort to other provided, it shall not be used to
measures; diminish any benefit granted to the
employees under existing laws,
• To prevent loss or damage to perishable
agreements and voluntary employer
goods;
practices.
• Where the nature of the work requires
continuous operations and the stoppage
of work may result in irreparable injury
or loss to the employer; and
• Under other circumstances analogous
or similar to the foregoing as
determined by the SOLE.

Employee volunteers to work on his rest day

under other circumstances:

• He may be allowed to do so, provided

he shall express it in writing subject to
additional compensation.
Rates of Compensation for Rest Day, Sunday or • Domestic Helpers and persons in the
Holiday Work: personal service of another;
• Employees engaged on task or contract
basis or purely commission basis;
• Members of the Family of the employer
who are dependent on him for support;
• Managerial employees and other
members of the managerial staff;
• Field personnel
• Employees paid fixed amount for
performing work irrespective of the
time consumed in the performance
thereof

Retail Establishments
• They are engaged in the sale of goods to
end users for personal or household
Holiday Pay use. (e.g, Grocery)

• Is a one-day pay given by law to an Service Establishment

employee even if he does not work on a
• They are engaged in the sale of services
regular holiday. to individual for their own or household
• The payment of the regular daily wage use. (e.g, TV repair shop)
for any unworked regular holiday.
• It is a premium given to employees Exemption of Retail/Service Establishments
pursuant to the law even if he has not
been suffered to work on a regular
holiday. It is limited to the 12 regular
holidays, also called legal holidays
listed by law. The employees should
not have been absent without pay on
the working day proceeding the regular
holiday.
Purpose of Holiday Pay:
Persons Entitled to Holiday Pay
• To secure the payment of undiminished
General Rule: All employees are entitled monthly income undisturbed by any
work interruption. In other words,
Exceptions: although the worker is forced to take a
rest, he earns what he should earn, that
• Government Employees is, his holiday pay. (JRC vs. NLRC)
• Retail and service establishments
regularly employing less than 10 • Holiday pay is primarily aimed at
workers; benefiting the daily-paid workers whose
 income is circumscribed by the principle
of “no-work, no pay.” Prior to the
enactment of Labor Code, daily paid
workers were not paid for unworked
regular holidays. On the other hand,
monthly-paid employees do not suffer
any reductions in pay for not working
during such holidays. The law on holiday
pay is thus conceived to be the Formula to compute wage on Holidays:
countervailing measure to partially
offset the disadvantages inherent in the
daily compensation system of
employment.

Legal Holiday
• It is a day designated or set apart by the
legislature, for a purpose within the
meaning of the term “holiday” in order
to commemorate an important event.

Regular Holidays

General Rule: They are compensable whether

worked or unworked subject to certain
conditions. They are also called legal holidays.

Exception: A legal holiday falling on a Sunday

creates no legal obligation for the employer to
pay extra, aside from the usual holiday pay, to
its monthly-paid employees.