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Week 2 - Labor Standards: Hours of Work, Wages & Benefits

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Week 2 Coverage Table

The table below mirrors the workbook's assigned cases for Week 2 and links each item to its digest page. Entries marked supra re-assign a case already digested earlier in the week; each re-assignment has its own digest page, angled to the new subtopic.
Class. records how the case actually stands to the subtopic it was assigned under — DIRECT (the Court squarely applies the doctrine), ANALOGOUS (it decides the point under a different provision or doctrine), REJECTED (the Court found the doctrine not established), INCIDENTAL (the doctrine is mentioned but the disposition rests elsewhere). Reciting a REJECTED case as if it were DIRECT inverts the holding.
#Assigned CaseTopic/SubtopicClass.Digest
1Paloma v. PAL, G.R. Nos. 148415 & 156764, July 14, 20081 — Covered employees; exceptions (Art. 82, Labor Code)ANALOGOUS
2Seafdec-Aqd v. NLRC, G.R. No. 86773, February 14, 19921 — Covered employees; exceptions (Art. 82, Labor Code)INCIDENTAL
3Malcaba v. ProHealth Pharma, G.R. No. 209085, June 6, 20181 — Covered employees; exceptions (Art. 82, Labor Code)ANALOGOUS
4De La Salle University Medical Center and College of Medicine v. Laguesma, G.R. No. 102084, August 12, 19981 — Covered employees; exceptions (Art. 82, Labor Code)INCIDENTAL
5National Sugar Refineries Corporation v. NLRC, G.R. No. 101761, March 24, 19931 — Covered employees; exceptions (Art. 82, Labor Code)DIRECT
6ClientLogic Philippines v. Castro, G.R. No. 186070, April 11, 20111 — Covered employees; exceptions (Art. 82, Labor Code)DIRECT
7Marby Food Ventures Corporation v. Dela Cruz, G.R. No. 244629, July 28, 20201 — Covered employees; exceptions (Art. 82, Labor Code)DIRECT
8Autobus Transport Systems v. Bautista, G.R. No. 156367, May 16, 20051 — Covered employees; exceptions (Art. 82, Labor Code)DIRECT
9Fair day's wage for a fair day's labor: Durabuilt Recapping Plant Company v. NLRC, G.R. No. L-76746, July 27, 19873.a — Normal hours of work (Arts. 83-84, Labor Code)ANALOGOUS
10Real losses: Linton Commercial Co. Inc. v. Hellera, G.R. No. 163147, October 10, 20073.b — Compressed work week (D.A. No. 2, s. 2004; D.A. No. 2, s. 2009)ANALOGOUS
11Sime Darby Pilipinas v. NLRC, G.R. No. 119205, April 15, 19983.c — Meal periods (Art. 85, Labor Code)ANALOGOUS
12Philippine Airlines v. NLRC, G.R. No. 132805, February 2, 19993.c — Meal periods (Art. 85, Labor Code)DIRECT
13Legahi v. NLRC, G.R. No. 122240, November 18, 19993.e — Overtime work (Arts. 87-90, Labor Code)ANALOGOUS
14Lagatic v. NLRC, G.R. No. 121004, January 28, 19983.e — Overtime work (Arts. 87-90, Labor Code)ANALOGOUS
15Workers paid by results: Labor Congress v. NLRC, G.R. No. 123938, May 21, 19983.i — Holiday pay (Art. 94, Labor Code)DIRECT
16Monthly paid employees: IBAAEU v. Inciong, G.R. No. L-52415, October 23, 19843.i — Holiday pay (Art. 94, Labor Code)DIRECT
17Wellington Investment and Manufacturing Corp. v. Trajano, G.R. No. 114698, July 3, 19953.i — Holiday pay (Art. 94, Labor Code)DIRECT
18Jose Rizal College v. NLRC, G.R. No. L-65482, December 1, 19873.i — Holiday pay (Art. 94, Labor Code)DIRECT
19JPL Marketing Promotions v. CA, G.R. No. 151966, July 8, 20053.j — Service incentive leave (Art. 95, Labor Code)DIRECT
20Auto Bus Transport System, Inc. v. Bautista, supra3.j — Service incentive leave (Art. 95, Labor Code)DIRECT
21Lourdes C. Rodriguez v. Park N Ride, Inc., G.R. No. 222980, March 20, 20173.j — Service incentive leave (Art. 95, Labor Code)DIRECT
22House of Sara Lee v. Rey, G.R. No. 149013, August 31, 20063.l — 13th month pay (P.D. No. 851; Revised Guidelines)DIRECT
23Honda Philippines, Inc. v. Samahan ng Malayang Manggagawa sa Honda, G.R. No. 145561, June 15, 20054.a — Wages: inclusions and exclusions (Art. 97[f], Labor Code)ANALOGOUS
24Bonuses: Atok-Big Wedge Mining Co. v. Atok-Big Wedge Mutual Benefit Association, G.R. No. L-5276, March 3, 19534.a — Wages: inclusions and exclusions (Art. 97[f], Labor Code)DIRECT
25Commissions: Asentista v. Jupp & Company, Inc., G.R. No. 229404, January 24, 20184.a — Wages: inclusions and exclusions (Art. 97[f], Labor Code)DIRECT
26Mayon Hotel Restaurant v. Adana, G.R. No. 157634, May 16, 20054.c — Wage increasesANALOGOUS
27Mayon Hotel and Restaurant v. Adana, supra4.d — Facilities and supplementsDIRECT
28Mabeza v. NLRC, G.R. No. 118506, April 18, 19974.d — Facilities and supplementsDIRECT
29Five J Taxi v. NLRC, G.R. No. 111474, August 22, 19944.e — Prohibitions regarding wages (Arts. 112-119, Labor Code)DIRECT
30SHS Perforated Materials, Inc. v. Diaz, G.R. No. 185814, October 13, 20104.e — Prohibitions regarding wages (Arts. 112-119, Labor Code)DIRECT
31Exception: Milan v. NLRC and Solid Mills, Inc., G.R. No. 202961, February 4, 20154.e — Prohibitions regarding wages (Arts. 112-119, Labor Code)DIRECT
32Mabeza v. NLRC, supra4.g — Wage distortion (Art. 124, Labor Code)INCIDENTAL
33Metropolitan Bank and Trust Company v. NLRC, G.R. No. 102636, September 10, 19934.g — Wage distortion (Art. 124, Labor Code)DIRECT
34Bankard Employees Union-Workers Alliance Trade Unions v. NLRC, G.R. No. 140689, February 17, 20044.g — Wage distortion (Art. 124, Labor Code)REJECTED
35Royal Plant v. Coca Cola, G.R. No. 198783, April 15, 20134.h — Non-diminution of benefits (Art. 100, Labor Code)REJECTED
36San Miguel Corp. v. Layoc, Jr., G.R. No. 149640, October 19, 20074.h — Non-diminution of benefits (Art. 100, Labor Code)REJECTED
37Vergara Jr. v. Coca-Cola Bottlers Philippines, G.R. No. 176985, April 1, 20134.h — Non-diminution of benefits (Art. 100, Labor Code)DIRECT
38Isolated instance: Del Rio v. DPO Philippines, Inc., G.R. No. 211525, December 10, 20184.h — Non-diminution of benefits (Art. 100, Labor Code)DIRECT
39Ripened company practice: Davao Fruits Corp. v. ALU, G.R. No. 85073, August 24, 19934.h — Non-diminution of benefits (Art. 100, Labor Code)DIRECT
40Consistent and deliberate: Standard Chartered Bank v. SCBEU, G.R. No. 165550, October 8, 20084.h — Non-diminution of benefits (Art. 100, Labor Code)DIRECT
41Error: Globe Mackay Cable and Radio Corporation v. NLRC, G.R. No. L-74156, June 29, 19884.h — Non-diminution of benefits (Art. 100, Labor Code)DIRECT
42Timely correction: Central Azucarera de Tarlac v. Central Azucarera de Tarlac Labor Union-NLU, G.R. No. 188949, July 26, 20104.h — Non-diminution of benefits (Art. 100, Labor Code)DIRECT
43Mutual agreement on diminution: Insular Hotel Employees Union-NFL v. Waterfront Insular Hotel Davao, G.R. Nos. 174040-41, September 22, 20104.h — Non-diminution of benefits (Art. 100, Labor Code)DIRECT
44JPL v. CA, supra5.a — Leaves: service incentive leave (Art. 95, Labor Code)DIRECT
Citation defects in the workbook list. The table above carries the verified citations. Item 5 — NASUREFCO is G.R. No. 101761, not "10176." Item 17 — the respondent is Undersecretary Trajano, not "Tajano," and the petitioner is Wellington Investment and Manufacturing Corp. Item 4 — the petitioner is De La Salle University Medical Center. Items 7, 13 and 14 — the workbook gives no date; Marby is July 28, 2020, Legahi November 18, 1999, and Lagatic January 28, 1998. Item 24 — "Bonues" is a typo for Bonuses. Item 34 — "Tade Unions" is a typo for Trade Unions. Item 43 — "Septmeber," and the docket is G.R. Nos. 174040-41 against Waterfront Insular Hotel Davao. Item 38 — the workbook repeats the respondent's name. Item 1 — Paloma was decided with G.R. No. 156764. Item 41 — the docket carries the L- prefix. Under item 5 of the syllabus the workbook also reads "Service Incentive Leve."
On item 32. Mabeza is re-assigned here for wage distortion, but the decision is an individual minimum-wage claim resolved under Art. 97(f). It says nothing about Art. 124, whose defect is relational — a mandated increase compressing the intended differentials between employee groups — and not mere underpayment. Recite it under 4.d, where it is DIRECT, and use it under 4.g only as the illustration of what wage distortion is not.
Four cases carry two subtopics this week. Auto Bus Transport (items 8 and 20), Mayon Hotel (items 26 and 27), Mabeza (items 28 and 32), and JPL (items 19 and 44). Each pair has its own digest page angled to the subtopic it was assigned under — the classification can differ between them, as it does for Mayon Hotel and Mabeza. Milan (item 31) is also Week 1, item 1.

Recitation Map

One line per case — what it is for, and the categorical holding.
CaseWhat it is forCategorical holding
Paloma v. PALThe "government employee" exclusion, tested by the original-charter rulePAL was never in the civil service; no vested right under E.O. No. 1077, and no law makes private-sector sick leave commutable
Seafdec-Aqd v. NLRCAn exclusion that operates on the employer, not the employeeAn intergovernmental organization is immune from local jurisdiction — the award is void, and Art. 82 is never reached
Malcaba v. ProHealth PharmaThe outer edge of "employee" from the corporate-law sideA by-law-created officer elected by the board is not an employee; the two managerial employees stayed inside
De La Salle University Medical Center v. LaguesmaCommingling under the old Art. 245 — a Book V case, not a Book III oneAffiliation with the same federation is not per se commingling; two conditions must concur
National Sugar Refineries v. NLRCBook III coverage decided functionally, not by Book V labelsSupervisors for bargaining purposes may still be "managerial staff" excluded by Art. 82
ClientLogic v. CastroManagerial-staff status as a matter of proofAll four cumulative elements of Sec. 2(c), Rule I, Book III must be shown; routinary authority is not enough
Marby Food Ventures v. Dela CruzField personnel — the second, forgotten requirementOff-site work alone does not exclude; hours must also be unascertainable, so timetabled drivers are covered
Autobus Transport v. BautistaThe two-part field-personnel test, and who supervises timeCompany inspectors and dispatchers made his hours ascertainable — not field personnel
Durabuilt v. NLRC"A fair day's wage for a fair day's labor" as a computation ruleBackwages run only over days the business actually operated; no work, no pay absent an illegal lockout
Linton Commercial v. HelleraWhat an employer must prove before cutting working daysLosses must be proved, substantial, and actual or imminent — a bad year is not enough
Sime Darby v. NLRCConverting a paid "on call" break into a real meal periodValid — pay attached only because the employee was still working; no diminution, no ULP
Philippine Airlines v. NLRCWhether the meal break is genuinely time off dutyIt is — nothing requires taking meals on the premises, and leaving is not abandonment if the employee returns on time
Legahi v. NLRCA seafarer's fixed contractual overtime allowanceThe allowance only fixes the rate; overtime must still be proved to have been actually rendered
Lagatic v. NLRCOffsetting premium work against time offNot allowed without a genuine compressed workweek — but the employee still recovers nothing without proof of work rendered
Labor Congress v. NLRCWhether piece-rate workers fall outside Book IIIThey do not — the exclusion reaches only field personnel and the unsupervised; pakyao repackers are covered
IBAAEU v. InciongAn implementing rule that enlarges the statute's exclusionsMonthly-paid employees are entitled to holiday pay; the rule and Policy Instruction No. 9 are void
Wellington v. TrajanoThe divisor that already accounts for every day of the yearA 314-factor monthly salary already pays every regular holiday; no "extra day" when one falls on a Sunday
Jose Rizal College v. NLRCFaculty paid per student contract hourNo pay for regular holidays programmed out in advance; but pay for special holidays and unscheduled cancellations
JPL Marketing v. CAWhether paying above minimum discharges the SIL obligationIt does not — a wage differential is not the same benefit; SIL runs from the second year of service
Auto Bus Transport v. BautistaCommission-paid employees and when SIL prescribesCommission basis alone does not exclude; prescription runs from refusal to pay on demand or separation
Rodriguez v. Park N RideWhy an unused leave year starts no clockSIL is commutable — the three-year period begins only on refusal after demand, or on separation
House of Sara Lee v. ReyWho the 13th month benefit is compulsory forRank-and-file only; a fiduciary supervisor is outside P.D. No. 851 as modified by M.O. No. 28
Honda Philippines v. SamahanA CBA benefit paid in full for years, then prorated after a strikeOnce paid unconditionally over years the practice vests under Art. 100; the deduction was invalid
Atok-Big Wedge v. Atok-Big Wedge Mutual Benefit Ass'nThe governing test for when a bonus is part of wageOnly if promised unconditionally; if it turns on profits or a productivity threshold it is a prize, not wage
Asentista v. JuppCommissions where the written contract is silentArt. 97(f) reaches remuneration on a commission basis under a written or unwritten contract — silence is no defense
Mayon Hotel Restaurant v. AdanaEnforcing the wage floor without citing Art. 99 or R.A. No. 6727"The payment of minimum wages is not dependent on the employer's ability to pay"; the employer bears the burden
Mayon Hotel and Restaurant v. AdanaThe three requisites for deducting facilitiesNone proved — and meals required for the employer's own convenience are supplements, never deductible
Mabeza v. NLRCBoard, lodging and utilities credited against the minimum wageDeductible only on proof of the three requisites, and never where the purpose is the employer's convenience
Five J Taxi v. NLRCWhat Art. 114 deposits may lawfully coverOnly loss of or damage to employer-supplied tools — a boundary-shortage deposit is unauthorised and refundable
SHS Perforated Materials v. DiazManagement prerogative against Art. 116Prerogative never includes withholding salary; the only lawful withholding is an Art. 113 deduction
Milan v. NLRC and Solid MillsThe standing exception to the Art. 116 prohibitionTerminal pay may be withheld pending return of company property — Art. 113 and Civil Code Art. 1706 supply the exception
Mabeza v. NLRC (wage distortion)What wage distortion is notAn individual underpayment claim is authority for nothing on Art. 124; distortion is a relational defect
Metrobank v. NLRCWhether a differential must vanish entirelySevere contraction suffices, and a CBA-fixed gap is an "intentional quantitative difference"; correction is not full restoration
Bankard Employees Union v. NLRCDistortion claimed from a voluntary increase in hiring ratesTwo Prubankers elements missing, and Art. 124's compulsion does not reach an increase the employer granted on its own
Royal Plant v. Coca ColaWhat counts as a "benefit" under Art. 100 at allChairs are outside the provision — Art. 100 protects only monetary benefits or those with a monetary equivalent
San Miguel Corp. v. Layoc, Jr.Whether overtime pay is a protected benefitIt is not — overtime is contingent on service actually rendered, and managerial employees are excluded from Title I anyway
Vergara Jr. v. Coca-ColaThe four-part test for a ripened company practiceOne conditional grant to a non-qualifying retiree, specially explained, is not long, regular, consistent and deliberate
Del Rio v. DPO PhilippinesAn isolated instance offered as practiceTwo specially-explained payments are not a practice; separation pay denied
Davao Fruits Corp. v. ALUPractice trumping what the law itself would allowSix years of voluntarily including excludible items in the 13th month base vested the benefit under Art. 100
Standard Chartered Bank v. SCBEUHow long "long, consistent and deliberate" isThirteen years of unobjected reimbursements qualified; switching insurers did not extinguish the benefit
Globe Mackay v. NLRCThe error exception to non-diminutionA genuine error on a doubtful question of law gives no vested right once corrected
Central Azucarera de Tarlac v. CAT Labor UnionThe limits of the error exceptionNo doubtful question existed, and thirty years is not a timely correction — the practice stands
Insular Hotel Employees Union v. WaterfrontDiminution the union itself proposedArt. 100 does not bar a bargaining agent from agreeing to reduce benefits — free collective bargaining includes the right to suspend it
JPL v. CAWhether unused SIL survives the end of employmentIt does — the money equivalent remains due even though the leave was never taken and no dismissal occurred

Study Notes

Article 82 is answered functionally, and sometimes not by Article 82 at all. NASUREFCO is the cleanest statement of the rule: an employee may be supervisory for Book V bargaining purposes and still be an "officer or member of the managerial staff" excluded from Book III, because the Book III test is the character of the work actually performed. ClientLogic turns that into a burden — all four cumulative elements of Sec. 2(c), Rule I, Book III must be proved, and a title will not do it. Marby and Autobus do the same for field personnel, whose definition has two limbs that are constantly collapsed into one: working away from the principal place of business and hours that cannot be determined with reasonable certainty. Three of the eight cases in this group never reach Art. 82 at all — Paloma decides civil-service coverage, Malcaba corporate-officer status, and Seafdec-Aqd the employer's immunity from local jurisdiction.
Non-diminution has two separate gates, and most of the nine cases fail at the first. Gate one: is the thing a "benefit" Art. 100 protects? Royal Plant says chairs are not, and Layoc says overtime pay is not, because it is contingent on service rendered. Gate two: has it ripened — given over a long period, regularly, consistently and deliberately? Davao Fruits (six years) and Standard Chartered (thirteen years) pass; Vergara and Del Rio fail on isolated, specially-explained grants. Globe Mackay and Central Azucarera frame the error exception from opposite sides: a genuine error on a doubtful question of law confers no vested right, but there must actually be a doubtful question, and thirty years is not a timely correction. Insular Hotel is the outlier worth remembering — Art. 100 does not stop a union from bargaining benefits down.
Wage distortion is relational; underpayment is not. Metrobank supplies the working rule — the differential need not vanish, severe contraction is enough, and a CBA-fixed gap counts as an intentional quantitative difference — while making clear that correction restores a substantial, not the identical, gap. Bankard is the boundary: no hierarchy of positions between old and new employees within the same level, and, more fundamentally, Art. 124's compulsory correction is triggered by a mandated increase, not by one the employer granted voluntarily. Mabeza, re-assigned here, is the trap — a minimum-wage case that decides nothing about Art. 124.
Service incentive leave prescribes differently from every other money claim. Auto Bus and Rodriguez both hold that because SIL is commutable, no cause of action arises when a leave year closes unused; the three-year period under Art. 306 begins only on the employer's refusal after demand for commutation, or on separation. JPL completes the picture from the other end: the money equivalent survives the employment relationship even where the employee was never dismissed and never took a day.
Where Week 2 hands off. De La Salle University Medical Center returns in Week 5 assigned to its actual holding on supervisory unions and Art. 245 (now Art. 255), where it is DIRECT rather than INCIDENTAL — the two digests should be read together.
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