MODULE 6Atty. Harve B. Abella, Esq.

Art. 85 Meal Periods• Not less than 60 mins. Non-compensable EXC. When EE

is required to work while eating• May be less than 60 mins but not less than 20 mins and

the shortened mealtime must be with full pay, under the ff circumstances:• Work is non-manual• Establishment regularly operates not less than 16 hours a day• In cases of actual or impending emergencies• Work is necessary

IF LESS THAN 20 MINS, IT BECOMES ONLY A REST PERIOD AND IS THUS CONSIDERED AS WORK TIME

Art. 85 Meal Periods• GEN. RULE: MEAL TIME IS NOT COMPENSABLE• Exceptions:

• Where the lunch period or meal time is predominantly spent for the employer’s benefit

• Where it is less than 20 mins

• NOTE: the EE must be completely relieved from duty. Otherwise, it is compensable hours worked

Art. 85 (cont)• SHORTENED MEAL BREAK UPON EE’S REQUEST

• EES may request that their meal period be shortened so that they can leave work earlier than the previously established schedule. Such shortened meal time is not compensable

• REQ:• EES voluntarily agree in writing and waive OTP• No diminution in salary and other fringe benefits• Work is not strenuous and they are provided with adequate

coffeebreaks• Value of benefits is equal to the compensation due them• OTP will become due and demandable if ever they are permitted to

work beyond 4:30• The arrangement is temporary

Art. 86 NIGH SHIFT DIFFERENTIAL• CONCEPT:• Additional compensation of not less than 10% of the EE’s

regular wage for every hour of work done between 10pm and 6AM, whether or not such period is part of the worker’s shirt

• NOTE:• If work done between 10PM AND 6AM is Overtime Wor, then

the 10% night shift differential shall be based on the OT rate

• RATIONALE: given as premium for working at a time when the EE is supposed to sleep and rest in accordance with the law of nature.

• NSD is not waivable: founded on public policy

Sample illustrations• 1. WITHOUT OT• [(10% regular wage per hour) x no. of hours worked

performed between 10pm – 6:pm]

• Step 1: Get hourly wage rate • -daily wage divided by number of hours worked

• P800 / 8 hours = P100

• Step 2. Compute wage between 6pm-2am• 8 hours x P100 = P800

• Step 3. Compute NSD• (10% x P100) x 4 hours = P40

Daily wage P 800

Work Sched 6PM – 2AM

• COMPUTATION:

6pm – 10pm 4hrs x P100 = P400

10pm – 2am 4hrs x P100 400

NSD Pay 4 hours x P10 40

Total wage earned P840.00

Sample Illustrations• WITH OVERTIME• [(10% of OT wage per hour) x no. of hours of worked

performed between 10pm – 6am)

Step 1. Get hourly wage rate• -daily wage divided by the no. of hours worked• P800 / 8 hours = P100

• Step 2. Compute wage between 8AM – 5:00pm• 8 hours x P100 = P800

• Step 3. Compute OT Premium Pay between 5pm-12mn• [(25% of wage per hour) + wage page hour) x no. of OT hours

• (25% x P100) + 100 = P125• X no. of OT hours (5pm-12mn) x 7 hours = P875

Daily Wage P 800

Work Schedule 8AM – 5PM

OT 5PM – 12MN

• Step 4. Compute NSD• [(10% of OT wage per hour) x no. of hours of work

performed between 10pm – 6am• Ex. (10% x P125) x 2 hours = P24

COMPUTATION

8am – 6pm 8 hours x P100 P800

5pm – 12mn 7 hours x P125 875

NSD Pay 2 hours x P12.50 24

Total Wage Earned P1699.00

NSD vs OTPNSD OVERTIME PAY

Payment for work done during the night (10:00PM – 6:00AM)

Payment for the excess of the regular 8-hour work

10% of basic wage 25 or 30% of basic wage

NOTA BENE: The receipt of overtime pay will not preclude the payment of NSDNARIC vs NARIC Workers Union, 105 Phil 891

ART. 87, Overtime Work• CONCEPT

• Additional compensation for work performed beyond eight (8) hours within the worker’s 24-hour workday regardless whether the work covers 2 calendar days

• RATIONALE• EE is made to work longer than what is commensurate with his

agreed compensation for the statutorily fixed or voluntarily agreed hours of labor he is supposed to do

• BASIS FOR COMPUTATION:• Regular Basic Wage: includes cash wage only, without any

deduction on account of any facilities provided by the employer (Art. 90 LCP)

RATES• A. OT WORK on regular workday

• EE is paid for the OTW on additional compensation equivalent to his regular wage plus at least 25% thereof;

• B. OT Work on Holiday or rest day• OTW performed on a holiday or rest day shall be paid an additional

compensation equivalent to the rate of the first 8 hours on a holiday or rest day plus at least 30% thereof;

CONDITIONS FOR ENTITLEMENT

1.Actual rendition of OTW

2.Submission of sufficient proof that work was actually performed; &

3.OTW is with the knowledge and consent of the employer

WAIVER OF OT PAY• Gen. Rule: OTP cannot be waived expressly or impliedly.

Any contrary stipulation is null and void as it is intended to benefit laborers and employees.

• EXCEPTION

1.Waiver made in consideration of benefits and privileges which may be more than what will accrue to them in OTP; and

2.COMPRESSED WORKWEEK

COMPUTATION SAMPLE

REGULAR WORK DAY (Example)•(Regular basic wage + 25% of regular basic wage)

Step1: Get hourly wage rate (daily basic wage divided by number of hours worked.

P800 / 8 hours = P100.00 per hour

DAILY WAGE P 800.00

WORK SCHED 8:00AM – 5:00PM(inclusive of 1 hour meal break)

OT 5:00PM – 10PM

Step2: Compute wage between 8:00am – 5:00pm8 hours x P100.00 = P800.00

Step3: Compute OT Premium Pay between 5:00pm-10PM

(25% x P100)+100 = P125X no. of OT hours (5pm-10pm) x 5 hours

P625.00

COMPUTATION: 8AM-5PM 8 hours x P100 P800.005PM-10PM 5 hours x P125 625.00TOTAL TAKE HOME PAY P1,425.00

TAKE HOME QUIZ

YELLOW SHEET, don’t use back portion. Show computation similar to the example1. LEGAL OR REGULAR HOLIDAYS

(Holiday wage rate + 30% of holiday rate (200%)

DAILY WAGE P800.00

WORK SCHED 8AM – 5PM INCLUSIVE OF 1 HOUR MEAL BREAK

OT JUNE 12 (independence day) 5PM – 10PM

2. REST DAYS OR SPECIAL HOLIDAYS

(rest day or special holiday wage rate + 30% of the rest day or special holiday wage rate 130%)

DAILY WAGE P800.00

WORK SCHED 8AM-5PM, inclusive of 1 hour meal break

OT Jan 23 Lunar New Year special holiday5:00pm – 10PM

3. SCHEDULED REST DAY WHICH IS ALSO A SPECIAL HOLIDAY

(rest day & special holiday wage rate + 30% of rest day & special holiday wage rate 150%)

DAILY WAGE P800.00

WORK SCHED 8AM-5PM, inclusive of 1 hour meal break

OT June 6 (araw ng kagitingan – special holiday COINCIDING with EE’s scheduled rest day)5:00pm – 10PM

4. SCHEDULED REST DAY WHICH IS ALSO A SPECIAL HOLIDAY

(rest day & special holiday wage rate + 30% of rest day & legal holiday wage rate (260%)

DAILY WAGE P800.00

WORK SCHED 8AM-5PM, inclusive of 1 hour meal break

OT May 1 (Labor Day – legal holiday COINCIDING with Ees scheduled rest day)5pm – 10PM

5. DOUBLE HOLIDAY

(double holiday wage rate + 30% of double holiday wage rate (300%))

DAILY WAGE P800.00

WORK SCHED 8AM-5PM, inclusive of 1 hour meal break

OT April 9 Araw ng Kagitingan & at the same time GOOD FRIDAY5pm – 10PM

Art.88 Undertime not Offset by OT• Offsetting of undertime work by overtime work whether on

the same day or any other day is prohibited by jurisprudence and statute.

• Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation.

• RATIONALE• EE’s regular pay rate is lower than OT rate. Offsetting the

undertime hours against the overtime hours would result in undue deprivation of the employee’s extra pay for overtime work.

Art. 89 Emergency OT• GEN. RULE: EE cannot be compelled to render OTW against

their will• EXCEPTIONS:• In times of war or any national or local emergency declared by

the Congress of the Chief Executive• To prevent loss or damage to life or property due to

emergencies and force majeure• Urgent work needed on machines and equipment• Necessary to preserve perishable goods• Prevent serious obstruction or prejudice to the business or

operations of the ER• Necessary to avail of favorable weather conditions where

performance or quality of work is dependent thereon