Events
A Saturday outing, a team-building day at a resort, a planning workshop dressed up as a retreat: most companies run at least one a year. Whether that time counts as work matters to HR and to the budget, because working time is paid time. The Labor Code and its implementing rules decide it, and the answer turns on three conditions.
What counts as working time in the Philippines?
Article 84 of the Labor Code says hours worked include “all time during which an employee is required to be on duty or to be at a prescribed workplace” and “all time during which an employee is suffered or permitted to work”. A required outing at a set venue can fall under the first part.
When is a company event not working time?
The Labor Code’s implementing rules answer it for meetings and training, and the Supreme Court has quoted the rule in full. Attendance at “lectures, meetings, training programs, and other similar activities shall not be counted as working time if all of the following conditions are met”:
| Condition | What the rule says | At a company outing |
| Timing | “Attendance is outside of the employee’s regular working hours” | Inside the working day it is paid time anyway; the question is evenings and rest days |
| Choice | “Attendance is in fact voluntary” | No penalty for skipping, and no attendance check that counts against anyone |
| No work | “The employee does not perform any productive work during such attendance” | Workshops, planning sessions and presentations are productive work |
All three have to hold. Miss one, and the time counts. Team building is usually run like training, so the same three conditions are the safe test for an outing. The rule is reproduced in the Supreme Court’s 2019 decision in G.R. No. 209735.
What does it cost if the outing counts?
Then the Labor Code’s pay rules apply to the time, the same as any other work.
→ On a rest day. Work on an employee’s scheduled rest day earns “an additional compensation of at least thirty percent (30%) of his regular wage” under Article 93.
→ Beyond eight hours. Overtime is paid at the “regular wage plus at least twenty-five percent (25%) thereof” under Article 87. On a rest day, hours beyond eight are paid at the rate of the first eight hours “plus at least thirty percent (30%) thereof”.
→ A better contract wins. Where a collective bargaining agreement or employment contract sets a higher premium, Article 93 says the employer pays the higher rate.
→ Not everyone is covered. The hours-of-work rules do not apply to some employees, including “managerial employees” and “field personnel”, under Article 82.
Payroll does the exact computation. What the event team needs is the answer: does this day count, or not.
How do you plan an outing that stays voluntary?
→ Pick the day on purpose. An outing inside the working day avoids the question. A Saturday one needs the three conditions to hold, or the premium in the budget.
→ Make voluntary real. No penalty for skipping, no attendance sheet that feeds a review, and an invitation that says so.
→ Keep work out of it. A planning session, a workshop or a presentation is productive work. Run it as a work session on a workday, and keep the outing an outing.
→ Brief the planner early. The day, the hours, whether attendance is required and what is on the program all change the run of show and the venue.
The HR line
Before the venue is booked, get one line from HR in writing: is this outing working time or not, and why. The program and the budget follow from it.
General information from the Labor Code of the Philippines (Presidential Decree No. 442, as amended) and its implementing rules as quoted by the Supreme Court in G.R. No. 209735 (17 July 2019). It is not legal advice; check with HR or counsel for your case.
Who should plan the day?
A team that runs company events. PUNX is an events company in Makati: 50-plus people, founded 2023, running activations and events for GCash, Sun Life and PRU Life UK. Whoever you hire, give them HR’s answer on working time first; it shapes the day.
FAQ
Is a company outing considered working time in the Philippines?
It depends on three conditions from the Labor Code’s implementing rules: attendance is outside the employee’s regular working hours, attendance is in fact voluntary, and no productive work is done. If any one of them is not met, the time counts as working time.
Do employees get paid for a mandatory team building on a Saturday?
If Saturday is their scheduled rest day and attendance is required, the time counts as work, and work on a rest day earns at least 30% on top of the regular wage under Article 93 of the Labor Code.
Is a strategy workshop at an outing working time?
Yes. If employees do productive work during it, the third condition fails and that time counts as working time.
Do these rules cover managers?
The Labor Code’s hours-of-work rules do not apply to some employees, including managerial employees and field personnel, under Article 82.
Related
Brand activation and events — what PUNX runs, and how
Company Christmas party planning — what to book, and when
Venue ocular inspection — what to check before you sign
Planning a company day?
Send us the date, the headcount and HR’s answer on working time. We will build the day around it.
Start a project ↗