Professional Documents
Culture Documents
AZUCENA)
Title 2 WAGES
Chapter 1
Art 97. Definitions
a.) Person an individual, partnership, association, corporation, business trust,
legal representative, or any organized group of persons
b.) Employer any person acting directly/indirectly in the interest of an ER in
relation to an EE & shall include the Govt & all its branches, subd., &
instrumentalities, all govt-owned/-controlled corps. & institutions, as well as
non-profit private institutions/orgs.
c.) Employee - any individual employed by an ER
d.) Agriculture includes farming in all its branches, and among other things,
includes the cultivation & tillage of soil, dairying, the production, cultivation,
growing & harvesting of any agricultural & horticultural commodities, the
raising of livestock or poultry, and any practices performed by a farmer on a
farm as an incident to or in conjunction with such farming operations, but
does not include the manufacturing or processing of sugar, coconuts, abaca,
tobacco, pineapples or other farm products.
e.) Employ includes to suffer or permit to work
f.) Wage paid to any EE; shall mean the remuneration or earnings, however
designated, capable of being expressed in terms of money, whether fixed or
ascertained on a time, task, piece, or commission basis, or other method of
calculating the same, w/c is payable by and ER to an EE under a
written/unwritten contract of ENT for work done or to be done, or for services
rendered and includes the fair and reasonable value, as determined by the
Sec of Labor, of board, lodging, or other facilities customarily furnished by the
ER to the EE.
Includes commissions the recompense compensation/reward of an
agent, salesman, executor, trustee, receiver, factor, broker or bailee, when
the same is calculated as a percentage on the amt of his transactions or on
the profit of the principal
Sonco v NLRC: Zuelig was made to pay the terminated EE (due to
retrenchment), separation pay based not only on the basic salary, but also on
the commissions, transpo & emergency living allowances. Even if
commissions were in the form of incentives or encouragement, still these
commissions are direct remunerations for services rendered w/c contributed
to the increase of income of the ER. The nature of work of a salesman & the
reason for such type of remuneration for services rendered demonstrate that
commissions are part of their wage or salary. (Some salesmen do not receive
any basic salary but depend on commissions & allowances or commissions
alone, although an EE-ER relationship exists).
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Snacks
70% - deducted from wages (must be authorized in writing)
30% - subsidized by the ER
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Wages
Compensation for manual labor,
skilled/unskilled, paid at stated
times, and measured by the day,
week, month, or season
Indicates considerable pay for a
lower and less responsible
character of ENT
Has a less extensive meaning
than salary; being ordinarily
restricted to sums paid as hire or
reward to domestic or menial
servants and to sums paid to
artisans, mechanics, laborers, and
Salary
Denotes a higher degree of ENT,
or a superior grade of services,
and implies a position or office
Suggestive of a larger and more
permanent or fixed compensation
for more important service
Compensation of clerks, officers of
pub corps, and pub offices.
o
o
Facilities
Include articles or services for the
benefit of the EE or his family but
shall NOT include tools of the
trade or articles or service
primarily for the benefit of the ER
or necessary to the conduct of the
ERs business
Wage-deductible
Benefit/privilege part of the
laborers basic wages,
Supplements
o
o
Not wage-deductible
Benefit/privilege given to the EE
w/c constitutes an extra
renumeration above & over his
basic or ordinary earning or wage
Agricultural Work
Work on the soil and its harvests
o
o
Lower rate
(Agricultural EEs)
o
o
Industrial Work
When the harvests are processed
into finished product or
transformed to another product
Higher rate
(industrial EEs)
Agricultural Activities
Preparation of the soil, planting of ramie stalks and transporting them to the
stripping sheds, stripping the fibers w/ the use of decorticating machines run
by electricity, drying the wet fibers, passing them through the brusher to
cleanse them of impurities and baling the fiers for the market
Planting & harvesting sugar cane & other chores incidental to ordinary
farming operations
Tillage of the soil, raising of crops including discovery of plant pests and
their eradication by means of insecticides
Fishpond business
farmhands employed to cultivate the vegetable garden of a non-agricultural
corp are not agricultural workers
Art 98. This title shall NOT apply to:
1. Farm tenancy or leasehold;
2. Domestic service
3. Persons working in their respective homes in needle work or
4. In any cottage industry duly registered in accordance w/ law.
5. BMBE (according to atty. )
Chapter 2 MINIMUM WAGE RATES
Art 99. REGIONAL MINIMUM WAGES
The minimum wage rates for agricultural and non-agricultural EEs and workers in
each and every region of the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards
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Statutory Minimum Wage the lowest wage rate fixed by law that an ER
can pay his workers. Compensation w/c is less than such minimum rate is
considered an underpayment that violates the law.
determined for each region by the regional wage boards
provided w/ margin to take care of contingencies, such as increase of
prices of commodities and increase in wants and to provide means for
a desirable improvement in EEs mode of living (A persons needs
increase as his means increase.)
Effects:
1. Benefits all wage earners by setting a floor below w/c their pay cannot fall
2. raises the standard of competition among ERs, since it would protect the fairminded ER from the competition of the ER who pays his workers a wage below
subsistence;
3. is a pre-req. to the adoption of the SSS, w/c requires contributions from EEs
themselves
Ability to pay immaterial
ER cannot exempt himself from liability to pay minimum wages
because of poor financial condition of the company
The payment of minimum wage not being dependent on the
employers ability to pay.
Lack of funds is not a valid defense because the payment of minimum
wage is a mandatory statutory obligation
EEs not estopped to sue for difference in amount of wages
the acceptance by an EE of the wages paid him w/o objection does not give
rise to estoppel precluding him from suing for the difference bet the amt.
received and the amt. he should have received pursuant to a valid minimum
wage law
Exemptions to the coverage of the Rule on minimum wages
1. Household or domestic helpers, including family drivers and persons in the
personal service of another;
2. Homeworkers engaged in needle-work;
3. Workers employed in any establishment duly registered w/ the National Cottage
Industries and Devt Authority in accordance w/ RA 3470 provided that such workers
perform the work in their respective homes;
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Fringe benefits all allowances & monetary benefits w/c are not
considered/integrated as part of the basic salary
The items excluded by the decree may be included through established practice
or agreement binding on the ER
Q: Are commissions included in the computation?
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Ph Duplicators Inc v NLRC: the sales commission earned by the sales men
constitute part of their compensation, considering that the ER pays them a
small fixed/guaranteed wage; the greater part being composed of the
sales/incentive commissions earned on actual sales closed by them
Boie-Takeda Case: the commissions paid to medreps were excluded from the
term basic salary because these were paid to them as productivity
bonuses. They are generally tied to the productivity or capacity for revenue
production of a corp; such bonuses closely resemble profit-sharing payments
and have no clear direct or necessary relation to the amt of work actually
done by each indiv EE.
The commissions pd by Boie to its medreps could not have been sales commissions.
Medreps are not salesmen; they do not effect any sale of any article at all. They are
EEs engaged in the promotion of pharmaceutical products or med devices
manufactured by their ER. They promote such products by visiting identified
physicians & inform such physicians orally/w/ the aid of brochures, of the existence
& chem composition of the pharma product. The addts payments given to them
were not in fact commissions but rather in the nature of profit-sharing bonuses.
Guaranteed wage/commission EEs whose income is guaranteed by way of wages
and/or commissions are entitled to a 13thMP based on their earnings that include
commissions.
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Overtime work
Work rendered in excess of the
normal working hrs. of 8 in a day
Overload work
May be performed either w/in or
outside 8 hrs. in a day
Proportionate 13thMP
- an EE who has resigned or was dismissed at any time before the time for payment
of the 13thMP is entitled to this monetary benefit in proportion to the length of time
he worked during the year. unless otherwise stipulated in the CBA
Distressed Employer exempted from paying 13thMP upon prior authorization
from the Sec of DOLE
Difference of opinion in the computation of 13thMP is a nonstrikeable issue. a
strike held on this ground is illegal.
Govt Employees not covered by 13thMP
Seafarers not covered by 13thMP; because they are contractual, not regular
EEs. Their ENT is governed by their Contract of Enlistment w/c was approved by the
POEA. It does not provide for 13thMP.
GR: PD 851 exempts from payment of 13thMP ERs of those who are paid a
fixed amt for performing specific work, irrespective of time consumed in the
perf thereof,
except where the workers are paid on piece-work basis (those who are paid
a standard amt for every pc/unit of work produced that is more/less regularly
replicated, w/o regard to the time spent in producing the same) in w/c case
the ER shall grant the 13thMP to such EEs.
The piece-rate worker should have rendered at least 1 month work/service
during the calendar yr.
Promissory notes
Vouchers
Coupons
Tokens
Tickets
Chits
Any obj other than legal tender
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EXC: Payment by check or money order may be allowed if the same is:
1. Customary on the date of effectivity of the LC;
2. Necessary because of special circs as determined by the Sec of Labor;
3. Stipulated in the CB; or
4. Where the ff conditions are met
a.) There is a bank or other facility for encashment w/in 1km
radius;
b.) The ER, or any of his agents or reps, does not rcv any
pecuniary benefit directly/indirectly from the arrangement;
c.) The EEs are given reasonable time during banking hrs to
withdraw their wages from the bank w/c time shall be
considered as compensable hours worked if done during
working hrs; and
d.) The payment by check is w/ the written consent of the EEs
concerned if there is no CBA authorizing the payment of wages
by bank checks.
GR:
1. . At least once every 2 weeks; or
2. 2. Twice a month at intervals not exceeding 16 days.
EXCEPTION:
1. In case of force majeure or other circs beyond the ERs control, payment must be
made immediately after such occurrence has ceased.
2. If engaged to perform a task w/c cannot be completed in 2 weeks and in the
absence of CBA or arbitration award.
a.) Payment shall be made at intervals not exceeding 16 days, in proportion to
the amt of work completed;
b.) That final settlement is made upon completion of work.
Art 104. PLACE OF PAYMENT
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GR: Wages shall be paid directly to the workers to whom they are due.
Exceptions:
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Principal- refers to any ER, whether person or entity including the govt
agencies and govt-owned and controlled corporations, who/which puts out or
farms out a job, service or work to a contractor.
II. Contractor/subcontractor- refers to any person or entity, including a
cooperative, engaged in a legitimate contracting or subcontracting
arrangement providing either services, skilled workers, temporary workers or
a combination of services to a principal under a Service Agreement.
III. Contractual workers-include on employed by a contractor to perform or
complete a job, work or service pursuant to a Service Agreement with a
principal.
Laws applicable between:
BUT ER-EE Relationship will exist bet the Principal & the Workers where the
contracting arrangement is not legitimate, as in labor-only contracting
Elements of Independent Contractor Job Contracting
1. The sub/contractor carries on a distinct and independent business and
undertakes to perform the job on his own account and under his own responsibility,
according to its own manner and method and free from the control & direction of
the principal in all matters connected w/ the performance of the work except to the
results thereof;
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- EEs may resign from their jobs to become contractors to their former ER, but the
latter should cease controlling the means & method of doing the work allegedly
contracted, otherwise, the result is LOC.
Summary of Prohibited Labor Contracting
1. Labor-only contracting;
2. Contracting that terminates the ENT of regular EEs, or reduces their work hrs, or
reduces/splits a bargaining unit, if such contracting out is not done in GF & not
justified by business exigencies;
3. Contracting w/ a Cabo person/s or labor group w/c, in the guise of a labor org,
supplies workers to an ER w/ or w/o any monetary or other consideration whether in
the capacity of an agent of the ER or as an ostensible independent contractor;
4. Contracting w/ in-house agency;
5. Contracting because of a strike/lockout;
6. Contracting that constitutes ULP under Art 248.
JOB CONTRACTING
LABOR-ONLY CONTRACTING
The ER/principal is merely an indirect ER, by operation of law, of his contractors EEs
The ER/principal is treated as direct ER of the contractors EEs in all instances
(contractor
is deemed agen of the ER)
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Basis:
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Wage-fixing order by the board does not need prior approval by the
Commission.
What requires is to conduct a public hearing over the petition to decide with
3o days after last hearing and to furnish the commission a copy of the
decision on the petition or the wage order.
What need prior approval are the Implementing rules and regulations which
the board has to prepare within 10dys from the issuance of the wage order.
APPEAL NWPC guidelines allow any party aggrieved by a wage order to appeal in
to the commission within 10 days after the publication.
Article 121 (c ) and (d) and article 122(b) clearly grant the NWPC not the RTWPB,
the power to prescribe the rules and guidelines for the determination of minimum
wage and productivity measures. While the RTWPB has the power to issue wage
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Living Wage
Consumer price index
Cost of living
Needs of workers and their families
Induce industries to invest in countryside
Improvements in standards of living
Prevailing wage levels
Fair return of capital
Effects on employment generation and family income
Equitable distribution of income and wealth
Where the application of any prescribed wage increase resulted to wage distortions
the ER and union shall negotiate to correct the distortions.
Any dispute arising from Wage distortion: (ORGANIZE)
Collective bargaining agreement
Voluntary arbitration decide disputes within 10 calendar days from the time said
disputes was
referred to VA
National conciliation and Mediation Board if it remains unresolved, after 10
calendar days of conciliation
NLRCmandatory within 20 C.D. from time said dispute is submitted
to compulsory arbitration.
TN The pendency of a dispute arising from a wage distortion shall not in any way
delay the applicability of any increase in prescribed wage rates pursuant to the
provisions of law or wage order.
Wage distortion situation where an increase in prescribed wage rates results in the
elimination or severe contraction of intentional quantitative differences in wage of
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Regional director can enforce a labor standards law even if the compliance issue is
not raised in the complaint. (Aboitiz Shipping v. dela Serna)
Double Indemnity
Fine of double prescribed wage increase when employer refuses or fails to pay
prescribed adjustment in wage rates. (RA 6727).
Based on unpaid benefits, where benefits defined to be prescribed wage rates which
employer failed to pay upon effectivity of wage order, exclusive of other wafe
related benefits.
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Art. 129. Recovery of wages, simple money claims and other benefits
Money claims arising from complaint/routine inspection
Regional director refers case to Labor Standards and Welfare Officer for field
inspection. LSWO to submit report to Regional Director through the Chief of the
Labor Standards Enforcement Division (LSED) with 24 hrs after investigation or
within a reasonable period as determined by Regional Director.
Restitution
Plant Level restitution may be effected for money claims not exceeding P50T.
Report submitted to Regional Director for verification and confirmation.
Compromise agreement
In writing, signed by parties in the presence of Regional Director or his duly
authorized rep.
Hearing
Where no proof of compliance submitted by employer after 7 days from receipt of
inspection, Regional director to summon employer & complainants to a summary
investigation.
Enforcement under Art 128 are beyond injunctive power of an inferior court.
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Most call centers are exempt DOLE Secretary exemption (under Art 131 (g))
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Discrimination prohibited
solely on account of her sex
RA 7192 provides that the state recognizes the role of women in nation-bldg and
shall ensure the fundamental equality before the law of women and men. The State
shall provide women rights and opportunities equal to that of men. To attain this
policy: (1) substantial portion of Official Devt Funds set aside & utilized by agencies
to support programs & activities for women; (2) All govt depts. Ensure that women
benefit equally & participate directly in devt programs & projects of said depts.; and
(3) All depts. And agencies shall review & revise regulations, circulars, issuances
and procedures to remove gender bias therein.
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3)
Refuse admission of such woman upon returning to work for fear that she
may again be pregnant
PT&T v. NLRC
Similar to the Zialcita case except that the employer did not admit that the
employee was dismissed because she was married. The cause of the dismissal, the
employer insisted, was her dishonesty in stating in the job application that she was
single though in fact she was not.
PT&Ts policy that married women are not qualified for employment in PT&T is not
only in derogation of the provisions of Art 136 on the right of women to be free from
any kind of stipulation against marriage in connection with her employment, but it
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Sexual Harassment
RA 7877
Victim may be male or female.
work related
(2)
education related
(3)
training related
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