Welcome to our comprehensive guide on working hours in the Philippines. Our team of experts and HR consultants are here to provide you with all the information you need regarding labor and employment needs in the country. In this article, we will delve into the details of working hours, meal periods, overtime work, rest days, holiday pay, and more. Our aim is to equip you with the knowledge necessary to understand and comply with the labor laws in the Philippines.
Normal Working Hours
In accordance with Article 82 of the Labor Code of the Philippines, working hours apply to employees in all establishments and undertakings, whether for profit or not. However, certain categories of employees are excluded from these provisions, including government employees, managerial employees, field personnel, family members of the employer who depend on him for support, domestic helpers, persons who provide personal service to other people, and workers who are paid by results as determined by the Secretary of Labor in appropriate regulations.
For employees who fall under the scope of working hours, the normal hours of work should not exceed eight (8) hours a day, excluding the one (1) hour daily lunch break. It's important to note that Philippine laws do not prohibit work done for less than eight hours.
Working hours encompass all the time during which an employee is required to be on duty and/or at a prescribed workplace, as well as the time during which an employee is permitted to work. Additionally, rest periods of short duration during working hours are also considered as part of the working hours.
Every employer in the Philippines is mandated by the Labor Code to provide their employees with not less than sixty (60) minutes' time-off for their regular meals. This time-off is typically given during day shifts, usually around 12:00 PM.
Night Shift Differential Pay
Employees who perform work between 10:00 PM and 6:00 AM are entitled to receive a night shift premium of not less than 10% of their regular wage for each hour of work performed during this period.
Under certain circumstances, work may be performed beyond the regular eight hours a day. In such cases, the employee is entitled to receive additional compensation. This compensation consists of the employee's regular wage plus at least 25% thereof.
If work is performed beyond eight hours on a holiday or rest day, the employee shall be paid an additional compensation equivalent to the rate of the first eight hours plus at least 30% thereof.
Undertime Not Offset by Overtime
According to Article 88 of the Labor Code, undertime work on a business day cannot be offset by overtime work on any other day. The law discourages the offset because the hourly rate of overtime is higher than the hours missed when an employee works for less than eight hours. Therefore, permission given to an employee to go on leave for a day in a regular work week shall not exempt the employer from paying the additional compensation required for the overtime work done.
Emergency Overtime Work
There are several situations in which an employee may be required to perform overtime work. These include:
- When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive.
- When it is necessary to prevent loss of life or property in cases of imminent danger to public safety due to actual or impending emergencies in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or any other disaster.
- When there is urgent work to be performed on machines, installations, or equipment to avoid serious loss or damage to the employer or some other cause of a 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 eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer.
When the Employer May Require Work on a Rest Day
Under specific circumstances, the employer may require their employees to work on a rest day. These circumstances include:
- In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity to prevent loss of life and property or imminent danger to public safety.
- In cases of urgent work to be performed on machinery, equipment, or installation to avoid serious loss which the employer would otherwise suffer.
- In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures.
- To prevent loss or damage to perishable goods.
- Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer.
- Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.
Employee Rights to Weekly Rest Day, Holiday Pay, and Service Incentive Leave
Every employer in the Philippines has a duty to provide each of their employees a rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days. The employer has the authority to determine and schedule the weekly rest day of their employees, subject to collective bargaining agreements and rules and regulations provided by the Secretary of Labor and Employment. However, the employer must respect the preference of employees based on religious grounds when such preference is expressed.
Regarding holiday pay, every worker shall be entitled to receive their regular daily wage during regular holidays, except in retail and service establishments regularly employing fewer than ten workers. The employer may require an employee to work on any holiday, but in such cases, the employee shall be paid a compensation equivalent to twice their regular rate. The holidays covered under this provision include New Year's Day, Maundy Thursday, Good Friday, the ninth of April, the first of May, the twelfth of June, the fourth of July, the thirtieth of November, the twenty-fifth and thirtieth of December, and the day designated by law for holding a general election.
Furthermore, every employee who has rendered at least one year of service is entitled to a yearly service incentive leave of five days with pay. However, this provision does not apply to those who are already enjoying the benefit provided, those enjoying vacation leave with pay of at least five days, and those employed in establishments regularly employing less than ten employees or exempted from granting this benefit by the Secretary of Labor and Employment after considering the viability or financial condition of such establishment. It's important to note that any benefits granted in excess of the provided herein shall not be subject to arbitration, court, or administrative action.
Mandatory Compensation for Rest Day, Sunday, or Holiday Work
According to Article 93 of the Labor Code, when an employee is made or permitted to work on their scheduled rest day, they shall be entitled to receive additional compensation of at least thirty percent (30%) of their regular wage. This additional compensation is applicable for work performed on Sunday only when it is their established rest day.
In cases where the nature of the employee's work does not allow for regular work days and scheduled rest days, they shall be entitled to an additional compensation of at least thirty percent (30%) of their regular wage for work performed on Sundays and holidays.
Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30%) of the employee's regular wage. If such holiday work falls on an employee's scheduled rest day, they shall be entitled to an additional compensation of at least fifty percent (50%) of their regular wage.
For hotels, restaurants, and similar establishments, all service charges collected should be distributed at the rate of 85% for all covered employees and 15% for management. The share of the employees shall be equally distributed among them. In the event that service charges are abolished, the share of the covered employees shall be considered integrated into their wages.
We hope this comprehensive guide on working hours in the Philippines has provided you with the information you need to navigate the labor and employment landscape in the country. Our team of experts and HR consultants is always ready to assist you with any further inquiries or concerns. Stay informed about amendments and updates on Philippine labor laws and regulations to ensure compliance and alignment with mandatory employee benefits. Trust our unparalleled expertise in providing transparent advice to properly align your benefits and compensation packages with the labor laws in the Philippines. Contact one of our HR consultants or labor lawyers for more consultation on working hours in the Philippines.