Co-Maker Liability in Bank Loans: Defenses and How to Recover from the Principal Borrower

Philippine context · employees in the private sector (unless stated otherwise) · based on the Labor Code of the Philippines and its implementing rules, as amended


1) Weekly Rest Day: Your Core Right

  • Minimum rest: At least 24 consecutive hours of rest after six consecutive normal workdays.

  • Who sets the day? The employer generally schedules rest days.

    • Religious grounds: You may request your preferred day based on religious beliefs; employers should respect this when feasible.
  • Who’s covered? Rank-and-file and most non-managerial employees. The hours-of-work rules (including premium pay and overtime) do not apply to:

    • Managerial employees and their staff who act with substantial discretion;
    • Field personnel whose hours cannot be determined with reasonable certainty;
    • Family members dependent on the employer for support working in the enterprise;
    • Domestic workers (covered by the Domestic Workers Act/Kasambahay Law, which separately guarantees 24 consecutive hours weekly rest).

Tip: If you’re “field personnel,” you still have a right to a weekly rest day, but premiums for hours of work typically don’t apply.


2) When Can You Be Required to Work on a Rest Day?

Employers may require work on a rest day in limited cases, such as:

  • Actual or impending emergencies (accident, fire, flood, typhoon, earthquake, epidemic) or to prevent loss of life/prop­erty;
  • Urgent work on machines/equipment to avoid serious loss;
  • Abnormal pressure of work due to special circumstances;
  • Perishable goods or seasonal work requiring continuous operations;
  • Collective bargaining agreements (CBA)/company policies that validly cover rest-day work.

Outside these, rest-day work should be voluntary or mutually agreed.


3) Pay Rules for Work on Rest Days

Below are standard minimums. A CBA or company policy may provide better (but not worse) terms.

A. Basic Premiums (first 8 hours)

  • Work on a Rest Day: +30% of your basic wage for the first 8 hours. Effective rate: 130% of basic.

  • If the Rest Day coincides with a Special Non-Working Day (SNWD): +50% of basic for first 8 hours if worked on a SNWD; if it’s also your rest day, many payrolls apply +50% then +30% of that day’s rate (effectively 150% × 130% = 195%). Check your policy/CBA—this is a common, DOLE-aligned formula.

  • If the Rest Day falls on a Regular Holiday: Regular holiday work is 200% of basic for first 8 hours; if it’s also your rest day, common practice adds +30% of the holiday rate200% × 130% = 260%.

Note: Holiday rules (regular vs. special) are distinct statutes. Always check the official holiday calendar each year.

B. Overtime on Rest Days

  • Overtime (beyond 8 hours) on a Rest Day: Add +30% of the hourly rate of the day (i.e., of the 130% rest-day rate). Effective multiplier: 130% × 130% = 169% per overtime hour.

  • Overtime on Rest Day + Special Day: (SNWD 150%) × 130% for OT hours → 195% per OT hour.

  • Overtime on Rest Day + Regular Holiday: (Regular 200%) × 130% for OT hours → 260% per OT hour.

C. Night Shift Differential (if applicable)

  • For hours worked between 10:00 p.m. and 6:00 a.m., add at least 10% of the hourly rate of the day (stacked on top of rest-day/holiday multipliers).

4) Sample Computations

Assume:

  • Daily rate: ₱800 (8 hours) → Hourly rate: ₱100.

a) Worked 8 hours on a rest day Pay = 8 hrs × ₱100 × 130% = ₱1,040

b) Worked 10 hours on a rest day (2 hours OT)

  • First 8 hrs: ₱100 × 130% × 8 = ₱1,040
  • OT hrs: ₱100 × 169% × 2 = ₱338
  • Total: ₱1,378

c) Worked 8 hours on a rest day that is a Regular Holiday Pay = 8 × ₱100 × 260% = ₱2,080


5) Delayed Salary/Wages: What Counts as “Delay”?

  • Frequency: Wages must be paid at least twice a month, at intervals not exceeding 16 days (many employers pay on the 15th and 30th/31st).
  • Form: Legal tender or through authorized bank/ e-wallet arrangements with no cost to the employee and with accessible payout.
  • Payslips: Provide details of earnings and deductions every pay day.
  • Deductions: Only those required by law (tax, SSS, PhilHealth, Pag-IBIG), or authorized in writing by you, or those allowed by regulations (e.g., union dues, wage advances, verified company loans with your consent). Unauthorized deductions and “deposit requirements” are unlawful.
  • Withholding/forfeiture: Employers cannot withhold wages as punishment or for losses without due process and strict legal bases.

A delay exists if paydays pass beyond the allowed interval without full payment of wages earned (absent a lawful, narrowly-defined exception).


6) What You Are Entitled To If Salary Is Delayed

  • Full unpaid wages for the period;
  • Premiums/OT/holiday/rest-day differentials you actually earned;
  • Legal interest (currently 6% per annum in jurisprudence) from the time of judicial or extrajudicial demand until full payment;
  • Penalties/fines may be imposed on the employer by authorities for labor standards violations;
  • Damages (e.g., moral/exemplary) may be awarded by courts/commissions in cases of bad faith.

7) Practical Steps if Your Salary Is Delayed

  1. Document everything. Keep contracts, schedules, time sheets, screenshots of payroll notices, bank statements, messages, and your computations.

  2. Ask in writing. Send HR/payroll a dated email or letter stating the amount and periods unpaid and requesting payment within a reasonable time.

  3. Escalate internally. Copy your supervisor and HR head; check if others are similarly affected.

  4. Conciliation-Mediation (SEnA). File a Request for Assistance with the DOLE Regional/Field Office where the employer is located. SEnA is a quick, non-adversarial, mandatory first step aimed at settlement within a short window.

  5. DOLE Compliance/Inspection Route. For ongoing standards violations (e.g., systemic non-payment, underpayment, illegal deductions), DOLE may conduct inspections and issue Compliance Orders compelling payment.

  6. NLRC/Labor Arbiter Case. If unresolved—particularly if claims are disputed, involve termination, or require adjudication—file a case with the National Labor Relations Commission (NLRC). You can claim unpaid wages, differentials, damages, and interest.

  7. Prescription (deadlines).

    • Money claims arising from employment (unpaid wages, premiums, differentials): 3 years from when the cause of action accrued. File before the 3-year mark.
    • Claims purely for reinstatement/wrongful dismissal follow a different period; for delayed salary issues, focus on the 3-year window.

8) Common Edge Cases & Clarifications

  • “No work, no pay.” True for regular and special days when not worked—unless you’re on regular holidays (entitlement rules differ) or your CBA/company policy grants pay even if unworked.
  • Absences overlapping paydays. Employers may process pro-rated pay. But delaying earned wages beyond the legal interval is not justified by administrative backlogs.
  • Cash flow problems of the company are not a legal excuse for late wages.
  • Resignation/clearance: Employers must pay final pay within a reasonable time (DOLE guidance commonly cites 30 days absent a shorter CBA/policy). Unpaid final pay can be pursued via SEnA/NLRC.
  • Allowances & benefits: Contractual or legally-mandated allowances (e.g., COLA where applicable) form part of wage computations when mandated by law/IRR. Company-granted benefits follow your policy/CBA.
  • Offsetting rest-day work with another rest day: Permitted only with your consent and consistent with policy/CBA; premium pay still generally applies unless there is a valid arrangement granting equivalent or better benefit.

9) Employer Compliance Checklist (for HR/Payroll)

  • Post and follow an official payroll calendar (≤16-day intervals).
  • Issue itemized payslips each payday.
  • Keep timekeeping accurate and auditable.
  • Apply correct multipliers for rest day, special/regular holiday, OT, and night differential (stacked properly).
  • Maintain written authorizations for any non-statutory deduction.
  • Train payroll on holiday/rest-day overlaps (e.g., rest day + regular holiday = 260% for first 8 hours, etc.).
  • Observe SEnA protocols and cooperate with DOLE if issues arise.

10) Quick Reference: Multipliers (Minimums)

Situation (first 8 hours) Effective Rate vs. Basic
Ordinary workday 100%
Rest day 130%
Special Non-Working Day (SNWD) 150% (if worked)
SNWD that is also your Rest Day 195% (150% × 130%)
Regular Holiday 200%
Regular Holiday that is also your Rest Day 260% (200% × 130%)

Overtime add-on (per hour beyond 8):

  • Ordinary day: +25% of the hourly rate of the day → 125% per OT hour.

  • Rest day/SNWD/Regular Holiday: +30% of the hourly rate of the day.

    • Rest day OT example: 130% × 130% = 169% per OT hour.
    • Regular Holiday on Rest Day OT: 200% × 130% = 260% per OT hour.

Night shift differential: +10% of the hourly rate of the day for work between 10:00 p.m.–6:00 a.m.


11) How to Compute Your Own Claim (Step-by-Step)

  1. Confirm your basic daily and hourly rates.
  2. Categorize each day worked: ordinary, rest day, SNWD, regular holiday, overlaps.
  3. Apply correct multipliers for the first 8 hours; then compute OT and NSD if any, stacking on the rate of the day.
  4. Sum all periods and deduct only lawful/authorized deductions.
  5. Prepare a demand letter itemizing amounts and attaching your worksheet/time records.

12) Simple Demand Template (You Can Copy)

Subject: Demand for Payment of Wages and Differentials To: [Employer/HR/Payroll] Date: [____]

I am requesting immediate payment of my wages and differentials for the periods [dates], totaling ₱[amount], computed as follows: – Regular wages: ₱[ ] – Rest day premium: ₱[ ] – Overtime: ₱[ ] – Holiday pay/premiums: ₱[ ] – Night shift differential: ₱[ ] – Less lawful deductions: ₱[ ] Total due: ₱[ ]

Please release payment within [5] working days of receipt. Otherwise, I will seek assistance from DOLE (SEnA) and, if necessary, file an action to recover my claims with interest.

Sincerely, [Your Name]


13) Bottom Line

  • You’re guaranteed one full weekly rest day; working on it costs extra (premiums), and the multipliers increase when rest days overlap with holidays and overtime or night work.
  • Delayed salary beyond lawful pay intervals is a labor standards violation. You can document, demand, conciliate (SEnA), and ultimately file to recover your wages, premiums, and interest.

If you want, I can turn your specific timesheets and payslips into a clean claim worksheet with correct multipliers and a ready-to-send demand letter.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.