CONDITIONS OF EMPLOYMENT; WORKING CONDITIONS AND REST PERIODS;

WEEKLY REST PERIODS, HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE

CHARGES (Articles 91-96)

 Read:
 Articles 91-96
 Rules III to VI, Book III, Rules to Implement the Labor Code

 Mercury Drug Co., Inc. v. Dayao, G.R. L-30452, September 30, 1982

 Waiver of rest day premium declared illegal.

 “The petitioner's contention that its employees fully understood what they signed
when they entered into the contracts of employment and that they should be bound
by their voluntary commitment's is anachronistic in this time and age.”

 “The Mercury Drug Co., Inc., maintains a chain of drugstores that are open every
day of the week and, for some stores, up to very late at night because of the nature
of the pharmaceutical retail business. The respondents knew that they had to work
Sundays and holidays and at night, not as exceptions to the rule but a part of the
regular course of employment. Presented with contracts setting their compensation
on an annual basis with an express waiver of extra compensation for work on
Sundays and holidays, the workers did not have much choice. The private
respondents were at a disadvantage insofar as the contractual relationship was
concerned. Workers in our country do not have the luxury or freedom of declining
job openings or filing resignations even when some terms and conditions of
employment are not only onerous and inequitous but illegal. It is precisely because
of this situation that the framers of the Constitution embodied the provisions on
social justice (Section 6, Article II) and protection to labor (Section 9, Article II) in
the Declaration of Principles And State Policies.”

 Lagatic v. NLRC; GR 121004, January 28, 1998.

 “In addition to the above, the labor arbiter and the NLRC sanctioned respondent's
practice of offsetting rest day or holiday work with equivalent time on regular
workdays on the ground that the same is authorized by Department Order 21,
Series of 1990. As correctly pointed out by petitioner, said D.O. was misapplied in
this case. The D.O. involves the shortening of the workweek from six days to five
days but with prolonged hours on those five days. Under this scheme, non-payment
of overtime premiums was allowed in exchange for longer weekends for
employees. In the instant case, petitioner's workweek was never compressed.
Instead, he claims payment for work over and above his normal 5½ days of work
in a week. Applying by analogy the principle that overtime cannot be offset by
undertime, to allow off-setting would prejudice the worker. He would be deprived
of the additional pay for the rest day work he has rendered and which is utilized to
offset his equivalent time off on regular workdays. To allow Cityland to do so would
be to circumvent the law on payment of premiums for rest day and holiday work.”

 Holidays

 RA 9849

 Asian Transmission Corporation v. Court of Appeals, et al., 425 SCRA 478

  Holiday pay is a legislated benefit enacted as part of the Constitutional imperative
that the State shall afford protection to labor. Its purpose is not merely "to prevent
diminution of the monthly income of the workers on account of work interruptions.
In other words, although the worker is forced to take a rest, he earns what he
should earn, that is, his holiday pay." It is also intended to enable the worker to
participate in the national celebrations held during the days identified as with great
historical and cultural significance. Independence Day (June 12), Araw ng
Kagitingan (April 9), National Heroes Day (last Sunday of August), Bonifacio Day
(November 30) and Rizal Day (December 30) were declared national holidays to
afford Filipinos with a recurring opportunity to commemorate the heroism of the
Filipino people, promote national identity, and deepen the spirit of patriotism.
Labor Day (May 1) is a day traditionally reserved to celebrate the contributions of
the working class to the development of the nation, while the religious holidays
designated in Executive Order No. 203 allow the worker to celebrate his faith with
his family.

 San Miguel Corp. v. Court of Appeals; GR 146775, January 30, 2002.

 Re: Entitlement of Non-Muslims in Muslim areas to holiday pay for Muslim holidays.

 Union of Filipro Employees v. Vivar, Jr.; GR 79256, January 20, 1992

 The petitioner maintains that the period between 8:00 a.m. to 4:00 or 4:30 p.m.
comprises the sales personnel's working hours which can be determined with
reasonable certainty.

 The Court does not agree. The law requires that the actual hours of work in the
field be reasonably ascertained. The company has no way of determining whether
or not these sales personnel, even if they report to the office before 8:00 a.m. prior
to field work and come back at 4:30 p.m., really spend the hours in between in
actual field work.

 in deciding whether or not an employee's actual working hours in the field can be
determined with reasonable certainty, query must be made as to whether or not
such employee's time and performance is constantly supervised by the employer.

 The divisor assumes an important role in determining whether or not holiday pay
is already included in the monthly paid employee's salary and in the computation
of his daily rate.

 Wellington Investment and Manufacturing Corp. V. Trajano, et al.; G.R. No. 114698,
July 3, 1995

 Leyte IV Electric Cooperative, Inc. v. LEYECO IV Employees Union-ALU; G.R. No.

157775. October 19, 2007.

 Producers Bank v. NLRC. G.R. No. 100701. March 28, 2001

 SIL

 Sugue v. Triumph International (Phils), Inc. GR 164804 & 164784, January 30, 2009.

 It is worth stressing that in the grant of vacation and sick leave privileges to an
employee, the employer is given leeway to impose conditions on the entitlement
 to the same as the grant of vacation and sick leave is not a standard of law, but a
prerogative of management. It is a mere concession or act of grace of the employer
and not a matter of right on the part of the employee. Thus, it is well within the
power and authority of an employer to deny an employee's application for leave
and the same cannot be perceived as discriminatory or harassment.

 Service Charges

 Where a restaurant or similar establishment does not collect service charges but
has a practice or policy of monitoring and pooling tips given voluntarily by its
customers to its employees, the pooled tips should be monitored, accounted, and
distributed in the same manner as the service charges. (2012 Handbook on
Workers’ Statutory Monetary Benefits)

 Other Leave Benefits

 Maternity Leave Benefit under SSS Law (see Section 14-A, RA 8282)
 Sickness Leave Benefit under SSS Law (see Section 14, RA 8282)
 Paternity Leave (see RA 8187)
 Solo Parent Leave (see RA 8972)
 Leave for Victims of Violence Against Women and their Children (see RA 9262)
 Special Leave Benefit for Women (see RA 9710)