Labor Code of the Philippines Book III: Conditions of Employment Title I: Working Conditions and Rest Periods Chapter

I - Working Hours a.) Normal hours of work - maximum of 8 hrs per day "Hours worked" - All time during duty and when prescribed to work (short meals bet work are included) b.) Meal Periods - not less than 60 mins c.) Night Shift Differential - not less than ten percent (10%) of his regular wage for each hour of work performed between ten oclock in the evening and six oclock in the morning. d.) Overtime Work beyond 8 hours of work additional compensation of 25% of daily wage for a regular day, 30% during holidays e.) Undertime work is not offset by overtime work f.) Emergency Overtime Work - only when a) the country is at war b) job is necessary to prevent loss of property or in case of imminent danger to public safety c) urgent work on machines to avoid serious damage d) prevent damage to perishable goods e) completion of work started before the 8th hour is necessary to prevent serious obstruction "Regular Wage" - cash wage only w/o deduction on acct of facilities provided by the employer Chapter II: Weekly Rest Periods a.) Right to weekly rest day - 24hrs or more after every six days of consecutive normal work days; employee may prefer a specific day only if the reason is religion b.) When employer may require work on a rest day only under these circumstances: a) the country is at war b) job is necessary to prevent loss of like or property or in case of imminent danger to public safety c) urgent work on machines to avoid serious damage d) prevent damage to perishable goods e) completion of work started before the 8th hour is necessary to prevent serious obstruction f) Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment. c.) Work during rest day - 30% of daily wage during scheduled rest; Where such holiday work falls on the employees scheduled rest day, he shall be entitled to an additional compensation of at least fifty per cent (50%) of his regular wage. Chapter III: Holidays, Incentive Leaves and Service Charges

a.) Right to holiday pay. a. Every worker shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than ten (10) workers; b. The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate; and c. As used in this Article, "holiday" includes: New Years 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. b.) Right to service incentive leave a. If the employee has been employed for at least a year, he/she is entitled to an incentive leave of 5 days with pay c.) Service charges All service charges collected by hotels, restaurants and similar establishments shall be distributed at the rate of eighty-five percent (85%) for all covered employees and fifteen percent (15%) for management. The share of the employees shall be equally distributed among them. In case the service charge is abolished, the share of the covered employees shall be considered integrated in their wages. TITLE II: Wages Chapter II: Minimum Wage Rates a.) Minimum wage rates DAILY MINIMUM WAGE RATES National Capital Region (NCR) a/ Per Wage Order No. NCR-17 b/ Effective: 3 June 2012 Upon Effectivity: Sector/Industry Non-Agriculture Agriculture (Plantation and Non Plantation) Private Hospitals with bed capacity of 100 or less Retail/Service Establishments employing 15 workers or less Manufacturing Establishments regularly employing less than 10 worker Effective 01 November 2012: Basic Wage COLA New Basic Wage After COLA Integration P 426.00 P 389.00 P 389.00 P 389.00 P 389.00 COLA P 20.00 P 20.00 P20.00 P20.00 P 20.00 New Minimum Wage Rates P 446.00 P 409.00 P 409.00 P 409.00 P 409.00

Sector/Industry Non-Agriculture Agriculture (Plantation and Non Plantation) Private Hospitals with bed capacity of 100 or less Retail/Service Establishments employing 15 workers or less Manufacturing Establishments regularly employing less than 10 workers

After COLA Integration P 426.00 P 389.00 P 389.00 P 389.00 P 389.00

COLA Effective Effective 1 November 3 June 2012 2012 P 20.00 P 10.00 P 20.00 P10.00 P20.00 P20.00 P 20.00 P10.00 P10.00 P 10.00

Minimum Wage Rates P 456.00 P 419.00 P 419.00 P 419.00 P 419.00

b.) prohibition against elimination or dimunition of benefits c.) Payment by results Chapter III PAYMENT OF WAGES a.) Forms of payment - no employer must pay by means of promissory notes, vouchers, coupons, tokens, tickets, chits even upon the request of the employee b.) Time of payment - twice a month; once every 2 weeks with at most 16 days interval c.) Place of payment shall be made near the place of undertaking d.) Direct payment of wages - unless during emergencies (written authorization is needed); or when the worker died Chapter IV: Prohibitions regarding wages a) No interference in disposal of wages b) no deductions unless insured, with his consent, by the employer; authorized by DOLE; union dues (right to check-off has been recognized) c) withholding of wages d) deduction to ensure retainment or employment e) denial to pay by the employer due to a filing of complaint by the employee Chapter V WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION a. ) Standards/Criteria for minimum wage fixing. The regional minimum wages shall be as nearly adequate as is economically feasible to maintain the minimum standards of living necessary for the health, efficiency and general well-being of the employees within the framework of the national economic and social development program. b . ) Freedom to bargain. c . ) Non-diminution of benefits

Title III WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES

Chapter I EMPLOYMENT OF WOMEN a.) Nightwork Prohibitons -women are not allowed to work from 10pm - 6am b.) Exceptions: a.) In cases of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disasters or calamity, to prevent loss of life or property, or in cases of force majeure or imminent danger to public safety; b.) In case of urgent work to be performed on machineries, equipment or installation, to avoid serious loss which the employer would otherwise suffer; c.) Where the work is necessary to prevent serious loss of perishable goods; d.) Where the woman employee holds a responsible position of managerial or technical nature, or where the woman employee has been engaged to provide health and welfare services; e.) Where the nature of the work requires the manual skill and dexterity of women workers and the same cannot be performed with equal efficiency by male workers; f.) Where the women employees are immediate members of the family operating the establishment or undertaking; and g.) Under other analogous cases exempted by the Secretary of Labor and Employment in appropriate regulations. c.) Facilities for women a.) Provide seats proper for women and permit them to use such seats when they are free from work and during working hours, provided they can perform their duties in this position without detriment to efficiency; b.) To establish separate toilet rooms and lavatories for men and women and provide at least a dressing room for women; c.) To establish a nursery in a workplace for the benefit of the women employees therein; and d.) To determine appropriate minimum age and other standards for retirement or termination in special occupations such as those of flight attendants and the like. d.) Maternity Leave Benefits -must have worked for atleast 6 months: 2 wks prior to due date (with presentation of a medical certificate); 4 weeks after normal delivery or abortion (with full pay) -extended leave will be unpaid and allowed only for the first four (4 deliveries) e.) Discriminations are prohibited - favoring males for promotion, training opportunities, study and scholarship; lesser compensation for women f.) Stipulation against marriage g.) Prohibited acts discharge a pregnant woman or discharging in fear that the woman may get pregnant again h.) classification of women workers workers in any night club, cocktail lounge, massage clinic, bar or similar establishments under the effective control or supervision of the employer for a substantial period of time are considered as employees Chapter II EMPLOYMENT OF MINORS a.) Minimum employable age Age 15 and below not allowed to work except under direct supervisory of parent/guardian Age 15 to 18 can work in an appropriate amount of time and regulations Below 18 - not allowed to work in hazardous environments

b.) child discrimination is prohibited Chapter III EMPLOYMENT OF HOUSEHELPERS a.) Contract of domestic service b.) Minimum wage separate from lodging, food and medical assistance c.) Assignment to non-household work. No househelper shall be assigned to work in a commercial, Industrial or agricultural enterprise at a wage or salary rate lower than that provided for agricultural or nonagricultural workers as prescribed herein. d.) Opportunity for education. e.) Treatment of househelpers provide food, lodging, medical assistance just and humane treatment Computation of Wages The salaries and wages of your employees depend on whether you pay them on a monthly or daily basis. Monthly-paid employees are those whom you pay every day of the month, including unworked rest days, special days and regular holidays. Daily-paid employees are those whom you pay for days actually worked and on unworked regular holidays. The EMR (equivalent monthly rate) of your employees is computed as follows: Monthly Paid Employees The formula for the EMR of monthly paid employees is: EMR = (Applicable Daily Rate x 365)/12 The factor of 365 days consists of: 302 ordinary working days, 51 rest days, 10 regular holidays, and 2 special days. Daily-paid employees: The EMR of daily-paid employees depends on whether they are required to work on rest days and holidays. The EMR of employees who are required to work every day including Sundays or rest days, special days and regular holidays is: EMR = (Applicable Daily Rate x 391.50)/12 The factor of 391.5 days consists of: 302 ordinary working days, 20.60 (9 regular holidays x 200% plus one regular holiday/Sunday*260%), 66.3 (51 rest days x 130%), 2.6 (2 special days x 130%). The EMR of employees who do not work and are not considered paid on Sundays or rest

daysis: EMR = (Applicable Daily Rate x 314)/12 The factor of 314 days consists of: 302 ordinary working days, 10 regular holidays, 2 special days (if actually worked, equivalent to 2.6 days). The EMR of employees who do not work and are not considered paid on Saturdays and Sundays or rest days EMR = (Applicable Daily Rate x 262)/12 The factor of 262 days consists of: 250 ordinary working days, 10 regular holidays, 2 special days (if actually worked, equivalent to 2.6 days). Factor of 260 maybe used if the 2 special days are not worked and are not considered paid.