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BOOK THREE CONDITIONS OF EMPLOYMENT Title I Working Conditions and Rest Periods right of control test where the

person for whom the services are performed reserves the right to control not only the end to be achieved but also the means to be used in reaching such end. Four-fold test: selection and engagement of the employee payment of wages power of dismissal control test not covered by Book 3, of Labor Code: Government employees refers to those employed by the National Government or any of its political subdivisions including those employed in government-owned or controlled corporations the are governed by the Civil Service Law government owned or controlled corporations with original charter governed by civil service law without original charter governed by the Labor Code Managerial employees they refer to those who meet the ffg conditions: their primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof they customarily and regularly direct the work of two or more employees therein they have the authority to fire or hire other employees of lower rank they are employed by virtue of their special training or expertise, experience or knowledge and for positions which require the exercise of independent judgment and discretion. officers and member of the managerial staff they are exempted if they perform the ffg duties and reponsibilities duties that consists in the performance of work directly related to management policies of their employers they customarily exercise discretion and independent judgment they regularly and directly assist a proprietor or managerial employee they do not devote more than 20% of their hours in a workweek to activities which are not directly or closely related to the abovementioned their powers are not subject to evaluation, review and final action by the department heads and other higher executives of the company field personnel refers to non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer members of the family of the employer who are dependent on him for support includes husband and wife, parents and children, other descendants and ascendants, brothers and sisters domestic helpers and/or persons in the personal service of another those who performs services in the employer's home which are usually necessary or desirable for the maintenance and enjoyment thereof minister to the personal comfort, convenience, or safety of the employer as well as the members of his employer's household workers paid by result payment of this type of worker is determined by the results of the work performed or the number of units produced piece work task work

(Art. 83) Normal Hours of Work day workday of 24 hours beginning at the same time each calendar day week workweek of 168 consecutive hours; 7 consecutive 24 hours; beginning at the same hour and the same calendar day each calendar week. The 8-hour work requirement does not preclude the employer to produce the working hours, provided that there is no concomitant reduction in pay. Purposes: protect the health of the workers assure adequate leisure to workers in order to enable them to lead richer and more fruitful lives spread employment shifts: 1st shift 8am to 4pm 2nd shift 4pm to 12mn 3rd shift 12mn to 8am effects of shorter working hours: increase in work output improved health of workers decrease in the amount of voluntary absenteeism reduce of rate and severity of industrial accidents increase mechanization and improved methods greater pressure for employees to be more productive and efficient promotion of good citizenship alleviating unemployment (Art. 84) compensable hours worked all time during which an employee is required to be on duty or to be at the employer's premises or to be at a prescribed place all time during which an employee is suffered or permitted to work principles in determining hours worked: (Art. 85) Meal periods General rule: Employees are entitled to at least 1 hour time-off regular meals which can be taken inside or outside company premises exception: (at least 20 minutes meal period) where the work is non-manual in nature where an establishment regularly operates not less than 16 hours a day in case of actual or impending emergencies or there is urgent work to be performed on machineries, installations, or equipments to avoid serious loss which the employer would otherwise suffer where the work is necessary to prevent serious loss of perishable goods coffee breaks (5 to 20mins.)are considered as compensable working time. Where the lunch period is spent predominantly for the employer's benefit, and cannot be utilized in the employee's own intersts, such time constitutes work time. (31 Am. Jur. 881) shortened meal period is not compensable. conditions on arrangements on shorten meal time at employee's request: the employees voluntarily agree in writing to a shortened meal period of 30 mins and are willing to waive overtime pay for such shortened meal period there will be no diminution whatsoever in the salary and other fringe benefits of the employees the work of the employees does not involve strenuous physical exertion and they are provided with adequate breaks in the morning and afternoon (Art. 86) Night Shift Differential Rationale of night shift differential: y night work cannot be regarded as desirable, either from the point of view of the employer or the wage earner. y Burden of proof of payment for nigh shift differential rests on the employer. y Night shift differential cannot be waived. It is founded on public policy, hence cannot be waived (Art. 87) Overtime Work overtime compensation additional pay for service or work rendered or performed n excess of 8 hours a day by the employees in employment covered by the 8-hour labor law. Computed my multiplying the overtime hourly rate by the number of hours worked in excess of eight hours. Amount equivalent to his regular wage plus at least 25% thereof

Rationale: to encourage employers to dispense with such works thus providing the employees an opportunity to satisfy their mental, moral, and spiritual needs. Entitlement to overtime pay must first be established by sufficient proof that said overtime work was actually /performed before an employee may avail of said benefit. For seamen, the criterion in determining Won they are entitled to overtime pay is that whether they actually rendered service in excess of said number of hours right to claim overtime compensation cannot be waived because it is in the category of benefits and it is governed by law not by agreement of the parties. Principles of estoppel and laches are not applicable when the tour of duty of the employee is at night time, the receipt of overtime pay will not preclude the right to night differential pay. The latter is payment for work done while the other is payment for the excess of the regular 8hour work. Chinese overtime a system of overtime payment in which salaried employee's regular rate is calculated by dividing his salary by the total number of hours he work. Thus, the greater the number of hours, the lower the rate of pay per hour unduly reducing the take home pay of the employee. Day 24-hour period which commences from the time the employee starts to work. (Art. 88) Undertime not Offset by Overtime purpose: allowing this would result to unfairness. Employer: will be exempt from paying additional pay for overtime work Employee: would be allowed to schedule his working hours at will thereby destroying the regular working schedule. (Art. 89) Emergency Overtime Work /compulsory overtime work: When the country is at war or when any other national or local emergency has been declared by Congress or the Chief Executive; When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity; When there is urgent work to be performed on machines, installation or equipment, in order to avoid serious loss or damage to the employer or some other cause of similar nature; When the work is necessary to prevent loss or damage to perishable goods; Where the completion or continuation of the work started before the 8th hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer. If the worker willfully refuses to perform overtime work in any of the instances specified by law, he may be legally dismissed on the ground of insubordination. (Art. 90) Computation of Additional Compensation Regular wage All payments which the parties have agreed shall be received during the work week, including piecework wages, differential payments for working at undesirable times, and the cost of board and lodging customarily furnished the employee. (NAWAS ruling) said ruling was superseded in subsequent decisions of the SC in the computation of overtime pay, the premium pay for work done on Sundays, holidays and at night inclusing fringe benefits, which are ocassionally and not regularly received and not by all employees SHOULD NOT be added to the basi pay. Such inclusion into the regular or basic pay militates agaisnt the basic rationale of overtime pay, which simply is the extra compensation for the additional work done beyond that contemplated in the employment contract. Regular wage DO Not include COLA, longevity pay of other fringe benefits which item constitutes extra pay or additions to the regular or basic pay regularity and continuity test of the benefits enjoyed by the employees condition precedent before such additional payments or benefits are taken into account. (NAWASA ruling, already superseded) regular base pay excludes money received by an employee in different concepts, such as Christmas bonus and other fringe benefits.

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