Category Archives: Salaries and Benefits Rules

Ebooks on Night Shift and Overtime Pay and Leave Benefits

Title:    All you need to know about… Employee Leave Benefits Leave Benefits Ebook

 Synopsis:     “Leave Benefits” refer to absences an employee is allowed to take for various reasons, authorized by law.  It is called a benefit because ordinarily, an employee who avails of a leave benefit is entitled to go on leave and still get paid while on a time off.  Otherwise, all other absences may not be paid by the employer under the “No Work, No Pay” policy of labor laws.

The new book on leave benefits by Atty. Elvin B. Villanueva is a compact yet complete guide on Leave Benefits and is available in ebook form, which makes it even easier to read. 

With an ebook, you save time when looking for what you need and get the exact legal provisions because everything that you need to know has been sifted, lifted and packaged in this electronic pocket guide. This book is also ideal for people on the go. 

 Author Atty. Elvin Villanueva discusses the topic complete with the latest laws and rules and cites actual cases decided by the Supreme Court,  in a language easily understood by the ordinary reader.   

Ebook Topics:  

  • Service Incentive Leave,
  • Maternity,
  • Paternal,
  • Gynecological leave,
  • VAWC leave and other employee leave benefits required by law. 

 Price:  Php397.00 per eBook, ordered and  delivered online. Click here to order your copy.

Author:  Atty. Elvin Villanueva, LVS Publishing

Also available, Ebook on Night Shift and Overtime Pay. Click here to order your copy.

Can a Company Retire Employees Below Legal Age Limit?

As a rule, the compulsory age of retirement is 65 while optional retirement starts at 60.  Employers, however, are allowed to enter into agreements for early retirement below these age limits but they must be able to show, if questioned later, that their retirement plans or agreements were voluntarily accepted by the employees.

Without proof of voluntary consent, a retirement made on the basis of this early retirement plan may be considered invalid as a “deprivation of property without due process of law.”

This was the Supreme Court’s decision in a case where a company retired its former clerk-typist at the age of 47 on the basis of a non-contributory retirement plan which gave the company the option to retire employees who have rendered at least 20 years of service.

After finding that the retirement plan was not embodied in a CBA or in any employment contract or agreement freely consented by the employee, the Supreme Court ruled that  the early retirement was invalid and constituted illegal dismissal.  (Cercado vs. UNIPROM, Inc. GR No. 188154, Oct. 13, 2010)

About 13th Month Pay

When the last quarter or ‘-ber’ months of the year come in, thoughts of 13th month pay enter the minds of both employers and employees.  This mandatory payment under a specific law (PD851) generally covers all rank and file employees who have worked for at least one (1) month during the calendar year.

Read more about it here.

Who are considered managerial employees

Night shift differential pay is additional pay given to all employees with certain exceptions such as managerial employees and officers and members of managerial staff.

For purposes of determining exceptions to the night shift differential pay, the following are considered managerial employees, they meet the following conditions:

  1. Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof.
  2. They customarily and regularly direct the work of two or more employees therein.
  3. They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing, and promotion, or any other change of status of other employees are given particular weight.

The following are considered officers or members of a managerial staff, if they perform the following duties and responsibilities:

  1. Primarily perform work directly related to management policies of their employer
  2. Customarily and regularly exercise discretion and independent judgment
  3. regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or  execute, under general supervision, work along specialized or technical   lines requiring special training, experience, or knowledge; OR  execute, under general supervision, special assignments and tasks, and
  4. Do not devote more than 20% of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs 1, 2 and 3.

Rationale Behind Night Shift Differential Pay

Workers and employees who work at specified night shift hours are entitled to additional pay known as night shift differential because of the recognized ill effects of working late at night.

Scientists have long studied how disrupting the normal sleep cycle (where people sleep at night and go out during the day) is increasingly linked to serious diseases such as hypertension, heart attack and certain cancers.

The Supreme Court adopted the general view that night work is undesirable both from the management and employee’s points of view for quite some time. One case decided in 1948 cites the following paragraph obtained from Commons & Andrews “Principles of Labor Legislation” in the case of Shell Company of the Philippine Islands:

           “The lack of sunlight tends to produce anemia and tuberculosis and to predispose him to other ills.  Night work brings increased liability to eyestrain and accident.  Serious moral dangers also are likely to result from the necessity of traveling the street alone at night, and from the interference with normal home life.”

In a much later case, the Supreme Court still cited the same quoted paragraph and added that it is only fair that the employee is compensated for the inconvenience of working at night.  (Association of International Shipping Lines, Inc. et al vs. United Harbor Pilots’ Association of the Philippines, Inc. GR 172029, Aug. 06, 2008).

Guide on Wage Order and Minimum Wage (Philippines)

Wages or salaries are the amounts workers or employees receive as compensation from employers for the work they regularly perform.  While business owners and workers are allowed to agree on specific amounts as salaries, these must not be lower than the minimum wage set by the Regional Tripartite Wages and Productivity Boards (RTWPBs).

What are wage orders?

Minimum wages vary depending on the industry and location (region) of the business.  Regional Wage Orders specify:

-        the daily minimum wage rates and

-        exemptions from compliance

Wage increases occur when Wage Orders are issued.  These affect all private sector workers and employees receiving the daily minimum wage rates or those receiving up to a certain daily wage ceiling.

But not everyone may be entitled to the minimum wage.

There are exceptions such as househelpers and family drivers as well as companies that are granted limited exemptions.

What happens when a company or business pays its employees or workers salaries or wages below the minimum amount set by law?

Wage orders should not be ignored as stiff fines and the penalty of imprisonment  may be imposed upon an employer who refuses or fails to pay the prescribed increases or adjustments in the wage rates.

But what about Wage/salary distortion?

Companies often follow salary pay scales or pay grades according to differentiate work roles, positions and levels. Occasionally, mandated wage increases elevate salaries of lower positions so that the salary of a Grade Level One position may become equal to the salary of the next higher rank.  In this case, what should the employer do?  Assuming the company has decided to address wage distortion, how should he go about it?

This Guide includes various formulae in resolving wage distortion and demonstrates each with an example. It also presents a solution for companies that are unionized.

Exemptions from wage orders

Some employers may be exempt from compliance with minimum wage orders. But in certain instances, a prior application for exemption must first be obtained through application and approval.  If the application is disapproved, at what point should the company pay its employees the minimum wage? From the date of the application or from the date of disapproval?

These and other related issues are discussed in the Guide on Wage Orders and Minimum Wage. The eBook version now includes:

-        the latest Wage Order No. NCR-16 granting P22.00 COLA

-        updated list of regional wage rates as of July 1, 2011

-        Labor Advisory dated July 07, 2011 on the treatment of COLA in regular holiday pay

Ebook version (2011 revised edition) on Wage Orders and Minimum Wage guide is now available at ManilaBookSales.Com at Php 597.00.

Guide to Wage Order and Minimum Wage Law in the Philippines