Santwani, Cinderella D.
Dr. Eric Villamar
BSA 11 -01
Assignment – Midterm
August 15, 2013
EMPLOYEES RIGHTS AND BENEFITS
The 1987 Philippine Constitution recognizes and guarantees the following rights of workers: 1. Self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law 2. Security of tenure, humane conditions of work, and a living wage 3. Participation in policy and decision-making processes affecting the workers’ rights and benefits as provided by law 4. A just share in the fruits of production vis-à-vis the right of the employer to reasonable returns on investments
Terms and Conditions
1. Minimum Wage
Under the Philippines’ minimum wage law, the minimum wage rate varies from one region of the country to another and is set by the relevant Regional Tripartite Wages and Productivity Board. Under the most recent wage order for the National Capital Region (i.e., Metro Manila), effective 1 November 2012, the minimum gross basic wage is PHP426 per day plus cost of living allowance of PHP30 per day. 2. Work Hours and Overtime
The normal hours of work should not exceed eight hours a day. An employee who renders work in excess of eight hours a day is entitled to overtime pay equivalent to the applicable wage rate plus at least 25 percent thereof. The overtime rate will vary if the overtime work is rendered on a rest day, regular holiday or special day or during the period between 10 p.m. and 6 a.m. of the following day. However, certain classes of employees (called “exempt employees” in this publication) are not entitled to such overtime pay, namely: • government employees;
• managerial employees and officers or members of the managerial staff; • field personnel;
• members of the family of the employer who are dependent on him for support; • domestic helpers and persons in the personal service of another; and • employees who are paid by results, as determined by the Secretary of the Philippine Department of Labor and Employment (DOLE) in appropriate regulations.
Entitlement of employees to overtime pay depends on the nature of their duties and responsibilities. If the employees’ duties and responsibilities do not qualify them as exempt employees, they are entitled to overtime pay. Conversely, should these employees’ duties and responsibilities qualify them as exempt employees, they are not entitled to overtime pay. Furthermore, employers may not require employees to perform overtime work except in certain cases and provided appropriate compensation is paid. In practice, they ask employees to sign employment contracts where the employees agree to perform overtime work. 3. Night Shift Differential
This refers to additional compensation of at least 10 percent of an employee’s applicable wage rate, payable to employees (except exempt employees) who perform work between 10 p.m. and 6 a.m. of the following day. 4. Rest Day
An employer may require its employees to work six days per week. Employees, except exempt employees, are entitled to a rest period without pay of not less than 24 consecutive hours for every six consecutive normal working days. For work done on rest days, the employer should pay compensation equivalent to the applicable wage rate plus at least 30 percent thereof. The rate for work on a rest day will vary if the rest day work is rendered on a regular holiday or a special day or during the period between 10 p.m. and 6 a.m. of the following day. Moreover, employers may not require employees to work during their scheduled rest day except in certain cases and provided appropriate compensation is paid. In practice, they ask employees to sign employment contracts where the employees agree to perform work outside their normal work schedule. 5. Regular Holiday
There are 12 regular holidays, namely:
New Year’s Day (1 January)
Maundy Thursday (movable...
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