Philippine labor laws that employers must know

Knowing laws on labor and employment is vital to one’s business because a minor violation could lead you to big trouble. Most employers, especially those who do not have legal counsel, violate these laws usually not because they intend to, but because of sheer ignorance. Unfortunately, ignorance of the law does not excuse them from complying with it. Companies have closed shop after their employees slapped them with labor suits which ended up with these companies paying huge amounts of money representing unpaid wages or benefits and damages. To avoid being in the same situation, the following are relevant laws which you should always bear in mind as you go about your business and deal with your employees: Read more

Overtime pay laws and computation in the Philippines

Man is not a machine. At the end of the day, he has to rest to rejuvenate and prepare himself for tomorrow’s work. That is why labor standard laws in many countries set up maximum hours of work for employees. In the Philippines, our Labor Code fixed the maximum at eight (8) hours a day (see Article 83, Labor Code of the Philippines) for six consecutive work days (Article 91, LCP). If the employee works beyond eight hours, the employer is required to pay an additional compensation equivalent to the employee’s regular wage plus at least twenty-five percent (25%) of such regular wage. The rate is increased to thirty percent (30%) if the worker renders overtime on a holiday or rest day. (Article 87, LCP).   Read more