QUIZ 4

1. What is a 14th month pay?

- Basically a bonus and therefore, gratuitous in nature. There is no law mandating the payment of 14th month
pay.
2. What is meant by “statutory minimum wage”?
- SMW refers to lowest basic wage rate fixed by law that an ER can pay his worker.
3. How is the minimum wage fixed?
- the minimum wage rates for agricultural and non-agricultural workers and EEs every region shall be those
prescribed by the RTWPB which shall be no case lower than SMW.
4. What is the basis of the computation of the “statutory minimum wage”?
- Normal working hrs which shall not be more than 8 hrs a day.
5. What is the principle of non-elimination or non-diminution of benefits?
- it mandates that reduction or diminution by ERs of any benefits, supplements or payments, as provided by
the law, individual agreements or CBA between workers or ERs, is not allowed.
6. What is a “wage order”?
- refers to order promulgated by RTWPB pursuant to its wage fixing authority.
7. When is “wage order” necessary?
- Whenever conditions in a particular region so warrants, the RTWPB shall investigate and study all pertinent
facts and based on standards and criteria prescribed, it shall proceed to determine whether wage order should
be issued.
8. When does a “wage order” become effective?
- Any order shall take effect 15 days from its complete publication in at least 1 newspaper of general circulation
in the region.
9. What is the mode of appeal from” wage order” issued by the RTWPB?
- Any party aggrieved by the wage order issued by RTWPB, may appeal such order to the NWPC within 10 days
from the publication of such order. The filing of appeal does not stay the order or suspend the effectivity
thereof unless the person appealing such order shall file with the commission, an undertaking with a surety
or sureties satisfactory to the commission for the payment to the EE affected by the order of the
corresponding increase, in the event such order is approved.
10. What are the standards/criteria for minimum wage fixing?
- the regional board shall consider the ff:
1. demand for living wages;
2. wage adjustment vis-avis the CPI;
3. the cost of living and changes or increases therein;
4. needs of workers and their families;
5. need to induce industries to invest in the countryside;
6. improvements in the standard of living;
7. the prevailing wage levels;
8. fair return of the capital invested and capacity to pay of ERs;
9. effects om the employment generation and family income; and
10. the equitable distribution of income and wealth along the imperatives of economic and social development.
11. What is wage “distortion”?
- Is a situation where an increase in the prescribed wage rate results in the elimination or severe contraction of
intentional quantitative differences in wage or salary rates between and among EE groups in an establishment
as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service,
or other logical basis or differences.
12. What are the forms of payment of wages?
A. GR: paid in legal tender and the use of tokens, PN, vouchers or other forms alleged to represent legal tender
is prohibited.
B. XCP:
1. Payment through ATM:
1.1 with written consent of EEs concerned
1.2 EEs are given reasonable time to withdraw their wages from bank facility which time, if done during
working hrs, shall be considered compensable hrs worked.
1.3 The system shall allow workers to receive wages within the period and in the amount prescribed
under the LC, as amended.
1.4 There is a bank or ATM facility within a radius of 1 km to the work place.
1.5 Upon request of EE, the ER shall issue a record of payment of wages, benefits and deductions for a
particular period;
1.6 There shall be an additional expenses and no diminution of benefits and privileges as a result of ATM
system of payment.
1.7 The ER shall assume responsibility in case the wage protection provisions of law and regulations are
not complied with under the arrangement.
2. payment by check or money order (the foregoing conditions on existence of bank facility should also
concur)
- Pay slips as evidence of payment. (statement of monthly gross income)
Ideally, signatures of EE should appear in the payroll as evidence of actual payment. However, absence of such
signatures does not necessarily mean that the amount due the EEs was not received. It is a substantial proof of
actual payment.
 -Payroll
Every ER is required to pay his EEs by means of payroll. It shows EE’s rate of pay, deductions made, and the amount
actually paid to the EE.
13. What is the time of payment of wages?
- GR: wages shall be paid not less than often once every 2 weeks or twice a month at intervals not exceeding
16 days. No ER shall make payment less frequency than once a month.
- XPN. When payment cannot be made with such regularity due to FJ, or circumstances beyond the ER’s control.
14. What is the place of payment of wages?
A. GR: shall be at or near the place of undertaking.
B. XCP:
1. When payment cannot be effected by reason of deterioration of place and order conditions or by reason
of actual or impending emergencies (fire, flood);
2. ER provides free transportation to the EE back and forth;
3. Under any other analogous circumstances.
C. Payment of wages in bars, massage clinics or nightclubs is prohibited except in the case of persons employed
in said places.
D. Payment through banks- allowed in businesses and other entities with 25 or more EEs and located within 1kn
radius to a commercial, savings or rural bank.
15. To whom should wages be paid?
A. GR: Wages shall be paid directly to the workers to whom they are due.
B. XCP:
1. ER is authorized in writing by the EE to pay his wages to a member of his family.
2. Payment through another person is allowed when authorized under existing law, including payments for
insurance premiums of the EE and union dues where the right to check-off has been recognized by the ER
in accordance with a CBA or authorized in writing by the ind’l EEs concerned.
3. In case of death of the EE, in which case, the same shall be paid to his heirs without necessity of intestate
proceedings.
16. What is contracting or subcontracting?
Arrangement whereby a principal agrees to put out or farm out with a contractor or subcontractor the
performance or completion of a specific job, work or service within a definite or predetermined period regardless
of whether such job, work or service is to be performed or completed within or outside the premises of a principal.
-Employment and independent contracting, distinguished.
- an independent contractor is one who carries on a distinct and independent business and undertakes to perform
the job, work, or service on its own account. The independent contractor enjoys independence and freedom from
the control and supervision of his principal, an employee is subject to the ER’s power to control the means and
methods by which the EE’s work is to be performed and accomplished. The primary standard for determining
regular employment is the reasonable connection between the particular activity performed by the EE in relation
to the usual trade or business.
17. Who are the parties to a contracting or subcontracting legitimate?
1. Principal- employer who puts out a job, service, or work to a contractor or subcontractor, whether or not the
arrangement is covered by written contract.
2. Contractor or subcontractor- any person or entity engaged in a legitimate contracting or subcontracting
arrangement.
3. Contractual workers- includes one employed by a contractor or subcontractor to perform or complete a job,
work, or service pursuant to an arrangement between the latter and a principal called “contracting” or
“subcontracting”.
18. When is contracting and subcontracting legitimate?
1. The C/S carries on a distinct and independent business and undertakes to perform a job, work, or service on its
own account and under its own responsibility. He is free from control and directions of the principal in all matters
connected with the performance.
2. The C/S has substantial capital or investment; and
3. The agreement b/n P and C/S assures the contractual EEs’ entitlement to all labor and occupational safety and
health standards, free exercise of the right to self-organization, security of tenure, and social and welfare
benefits.
19. What is permissible contracting or subcontracting arrangement?
20. What are the prohibited acts in the law on contracting and subcontracting?
1. Labor-only contracting;
2. Contracting out of work which will either displace EEs of the P from their jobs or reduce their regular working
hrs;
3. Contracting out of work with a “cabo”.
4. Taking undue advantage of the economic situation or lack of bargaining strength of the contractual EE or
undermining his security of tenure, basic rights or circumventing the provisions of regular employment in any
of the ff instances:
a. Requiring them to perform fxns which are currently being performed by the regular EEs of the principal;
b. Requiring them to sign, as a precondition to employment or continued employment, an antedated
resignation letter, blank payroll;
c. Requiring him to sign a contract fixing the period of employment to a term shorter than the term of the
contract between the P, C and S;
5. Contracting out of a job, work or service through an in-house agency;
6. “ ” ” ” directly related to the business of the P by reason of a strike or lockout,
whether actual or imminent;
7. “ ” ” ” when not justified by the exigencies of the business.