Labor Standards Law Flashcards
“A DECREE INSTITUTING A LABOR CODE, THERBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND ENSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE.
: PD 442
PD 442 was signed into law
May 1, 1974
PD 442 took effect on…
November 1, 1974
This Code shall take effect _ months after its promulgation
6
Ordinary Sense: is understood as the physical toil although it does not necessarily exclude the application of skill, thus, there is skilled and unskilled labor; work; service General Sense: it is the exertion of human being by his mental or physical effort towards production of goods or services. Technical Sense: the working class or workingmen
Labor
The familiar knowledge of any art or science, united with readiness and dexterity in the execution or performance of the application such art or science to practical purposes.
Skill
It is broader than labor; covers all forms of physical or mental exertion or both combined, for the attainment of some object other than recreation or amusement per se.
Work
Broader than employee; refer to self-employed people and those working in the service and under the control of another, regardless of rank, title, or nature of work.
Worker
A salaried person working for another who controls or supervises the means, manner, or method of doing the work
Employee
Refers to the extraction of work or services from any person by means of enticement, violence, intimidation or threat, use of force or coercion, including deprivation of freedom, abuse of authority or moral ascendancy, debt bondage or deception.
Slavery
The worker is owned by another at his free disposal
Slavery
Worker, by customary right to his Lord, owes certain service
Serfdom
Enforced labor of serfs on the fields of the landowners, in return for protection and the right to work on their leased fields.
Serfdom
A free person who offers his services to others subject to nobody’s will
Free artisanship
The same with modern independent contractorship wherein an independent contractor is engaged in a business separately distinct from the principal, the performed job, work or service, and works according to his own means and methods, free from the control and direction of the principal except as to the results thereof.
Free artisanship
Governed by Article 1713 of the Civil Code
Free Artisanship
A person offers his services to another under an employment contract for which such service is paid by wages.
Wage System
The same with modern employer-employee system where there is an employee under the control and supervision of an employer as to the means, manner or method of which the work is to be accomplished including the result thereof and is paid for the work done in terms of wage.
Wage System
Systems of labor which are recognized in the Philippines.
Wage System and Free artisanship
FOUR SYSTEMS OF LABOR
Slavery; Serfdom; Free Artisanship; and Wage System
Those who have less in life should have more in law.
Social Justice
The state shall promote social justice in all phases of national development.
The state affirms labor as a primary social economic force. Therefore, it shall protect the rights of workers and promote their welfare.
Article II, sec 10 of the Constitution
Three fields of labor law
Labor Standards Law; Labor Relations Law, Social or Welfare Legislation
Sets out the minimum terms, conditions, and benefits of employment that employers must provide or comply with and to which workers are entitled as a matter of legal right.
Labor Standards Law
The minimum requirements prescribed by existing laws, rules and regulations and other issuances relating to wages, hours of work, cost of living allowances and other monetary and welfare benefits, including those set by occupational safety and health hazards. (Section 7, Rule I, Rules on the Disposition of Labor Standards Cases – September 16, 1987)
Labor Standards Law
Defines the status, rights, duties, as well as the institutional mechanism that govern the individual and collective interactions between employers, employees, and their representatives
Labor Relations Law
Refers to the interactions between the employers and employees or their representatives and the mechanism by which the employment standards are negotiated, adjusted and enforced.
Labor Relations Law
Process the terms, benefits and conditions to improve the same through collective bargaining or negotiation.
Labor Relations Law
Law governing the employer-employee relation while the latter is not at work due to the hazard arising from employment.
Social or Welfare Legislation
Refers to a broader category of law that protects or promotes the welfare of society or segments of it in furtherance of social justice.
Social or Welfare Legislation
The ____ is the lead agency in enforcing labor laws and it possesses rule-making power in the enforcement of the Code.
DOLE
Article 8 NCC: _________ applying or interpreting the laws or the Constitution shall form a part of the legal system of the Philippines.
Judicial decisions
Decisions of administrative bodies like the NLRC ____ form part of the legal system of the Philippines.
do not
BASIS OF ENACTING LABOR LAWS
POLICE POWER; SOCIAL JUSTICE; PROTECTION TO LABOR CLAUSE; DOCTRINE OF INCORPORATION
Article II, Section 2, Constitution: The Philippines renounces war as an instrument of national policy, adopts the generally accepted principles of international law as part of the law of the land, and adheres to the policy of peace, equality, justice, freedom, cooperation, and amity with all nations
DOCTRINE OF INCORPORATION
Cite at least 5 International Labor Organization (ILO) Conventions:
- C87 Freedom of Association and Protection of the Right to Organize to Convention (1948)
- C99 Minimum Wage Fixing Machinery Convention (1951)
- C105 Abolition of Forced Labor Convention (1957)
- C17 Workmen’s Compensation (1925)
- C149 Tripartite Consultation Convention (1976)
Article XIII, Section 3, 1987 Constitution. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all
PROTECTION TO LABOR CLAUSE
The promotion of the welfare of all the people, the adoption by the government of measures calculated to insure economic stability of all the component elements of society through the maintenance of proper economic and social equilibrium in the interrelation of the members of the community, constitutionally through the adoption of measures legally justifiable, or extra-constitutionally through the exercise of powers, underlying the exercise of all governments on the time honored principle of “salus populi est suprema lex”. (Dr. Jose P. Laurel)
Social Justice
The law is geared towards the concern of labor because our legislators realize that social and economic imbalance between the employer and employee.
Social Justice
All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations shall be resolved in favor of labor
Social Justice
Inherent power of the state to enact legislations that may interfere with personal liberty or property in order to promote the general welfare of the people (General Welfare Clause)
POLICE POWER
Consists of imposition of restraint upon liberty or property and in order to foster the common good.
POLICE POWER
Power to regulate personal liberty or property rights.
POLICE POWER
LIMITATIONS IN THE ENACTMENT OF LABOR LAWS
NON-IMPAIRMENT CLAUSE; EQUAL PROTECTION CLAUSE; PROHIBITION AGAINST INVOLUNTARY SERVITUDE; DUE PROCESS CLAUSE
Article III, Section 10. No law impairing the obligation of contracts shall be passed.
NON-IMPAIRMENT CLAUSE
Congress could not pass laws which would impair the obligations of the parties, however, the same can pass laws to regulate the obligations and contracts.
NON-IMPAIRMENT CLAUSE
Article III, Section 1. No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.
EQUAL PROTECTION CLAUSE
Individuals similarly situated must be treated equally under the3 law.
EQUAL PROTECTION CLAUSE
Article III, Section 18(2). No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have been duly convicted. (e.g. anti-trafficking in persons act, forced labor, slavery)
PROHIBITION AGAINST INVOLUNTARY SERVITUDE
“Strike, but hear me first.”
DUE PROCESS CLAUSE
SOURCES OF LABOR LAWS
The Labor Code , PD 442; Judicial decisions ; Rules and regulations issued by administrative agencies ; employment contracts; company policies, etc
Primary Sources of Labor Laws
a) Constitution
b) Statutes ( NCC, RPC, Special Laws)
c) Supreme court decisions
Article 5 Labor Code: Rules and regulations. - The Department of Labor and other government agencies charged with the administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing rules and regulations. Such rules and regulations shall become effective _______________ .
fifteen (15) days after announcement of their adoption in newspapers of general circulation.
______is indispensable.
Publication
Rules and regulations are still valid even if no publication, however, it is ____________
unenforceable
Sec. 18. When Laws Take Effect.
Laws shall take effect after fifteen (15) days following the completion of their publication in the Official Gazette or in a newspaper of general circulation, unless it is otherwise provided.
PARTIES TO EMPLOYMENT CONTRACT
- Employer
- Employee
- State
- Public
It refers to the representation of workers and employers sectors in decision and policy making bodies of the government.
Tripartism
Tripartism is a representation of three sectors in policy-making bodies of the government. What are these?
- public or the government
- employees
- workers
“The state shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all.” What is the reference?
ART XIII, Section 3, par 1
CONSTITUTIONAL AND STATUTORY RIGHTS OF WORKER in relation to Labor Standards
- Humane conditions of work.( ART XIII, Sec 3 par 2)
- Living wage.( ART XIII, Sec 3 par 2)
- Just share in the fruits of production..( ART XIII, Sec 3 par 4)
CONSTITUTIONAL AND STATUTORY RIGHTS OF WORKERS IN RELATION TO LABOR RELATION
- Self-organization
- Collective bargaining and negotiations
- Peaceful concerted activities including the right to strike in accordance with law.
- Security of tenure
- Participate in policy and decision making processes affecting their rights and benefits as maybe provided by law.
RIGHTS OF WORKERS Workers cannot be dismissed without just and authorized causes
Security of tenure
RIGHTS OF WORKERS Workers shall be made regular after 6 months probation unless a different period is agreed upon by the worker and the employee
Security of tenure
Normal working hours of _____ hours a day
eight (8)
Meal and rest period: meal break of __________shall be considered compensable working time
less than one hour
Wage and wage related benefits
A. Minimum Wage
B. Holiday Pay – one day for every regular holiday even if unworked subject to certain conditions
C. Premium pay for work within 8 hours on:
- Special Rest Day - 30% of the basic daily rate
- Rest Day falling on a Special Day - plus 50%
- Rest day falling on a Regular Holiday - plus 30% of the 200% of the basic daily rate
Overtime pay
Ordinary days: ___% of the basic hourly rate
25%
Overtime pay
Special/rest/holiday: ___% of the regular hourly rate on said days
30%
Night shift differential pay _% of the basic or regular rate between ___ and ____
10%; 10pm and 6am
Service incentive leave ___ days with pay per year after ___ year of service
5; one
Service charges ___ % (distribution to rank and file employees); ___% (losses, breakages, distribution to managerial employees)
85%; 15%
Separation pay ___month pay for every year of service for ______________.
1/2 ; authorized causes of separation
13th month pay ____ of the total basic salary earned within the calendar year
1/12
Shall be paid in cash, legal tender, at or near the place of work
Payment of wages
May be made through a bank upon written petition of majority of the workers in establishments with 25 or more employees and within one kilometer radius to a bank
Payment of wages
Shall be made direct to the employees
Payment of wages
Shall be given not less than once every 2 weeks or twice within a month at intervals not exceeding 16 days
Payment of wages
Minimum employable age is ___ age
15
A worker below 15 should be directly under the sole responsibility of __________; work does not interfere with child’s schooling and normal development
parents or guardians
No person below eighteen can be employed in _______________ .
No person below eighteen can be employed in hazardous or deleterious undertaking
A contract between workers and employers on terms and conditions of employment which are OVER and ABOVE those mandated by law
Collective Bargaining
An employee can join a ______ on the very first day of his employment
union
Employees can form organizations such as union and welfare committee
Self-organization and collective bargaining
SSS Benefits
maternity sickness disability retirement death
ECC benefits for work-related contingencies
medical benefits for sickness and injuries
disability benefits
rehabilitation
death and funeral
2 ASPECTS OF LABOR STANDARDS
Meliorative Labor Standard & Protective Labor Standard
- Intended to expand the flow of income or benefits to workingman that are required for a decent living.
overtime pay
premium pay
Meliorative Labor Standard
Intended to protect harsh and oppressive conditions of work that inimical to health, safety and wellbeing of the workers. ex. Protect the health and safety and the well-being of the workers ; Prescribed hours of work
Protective Labor Standard
PURPOSE OF LABOR STANDARDS
Remedial and humanitarian
Other 6 SOURCES OF LABOR STANDARDS
Employment Contract; Company Policies and Practices; Administrative Order of DOLE; Compulsory or Voluntary Arbitration; Collective Bargaining Agreement or CBA; Statutes
Can also be a source of Labor Standard because it provides terms and conditions of employment prescribed by law.
Collective Bargaining Agreement or CB
The award given to the party, it is another source of a labor standard
Compulsory or Voluntary Arbitration
Also prescribes the terms and conditions of employment. x Ex. Compressed workweek
Administrative Order of DOLE
Could be unwritten, deliberately granted by employer for a long period of time, although it is not a policy but consistently and deliberately provided to workers such as vacation with pay. 3
Practices
Art 97b _____ includes any person directly or indirectly in the interest of an employer in relation to an employee and shall include the Government and all its branches, subdivision and instrumentalities, all government-owned or controlled corporations and institutions, as well as non-profit private institutions, or organizations.(expanded definition)
Employer
Art 97c. ______ includes any individual employed by an employer.
“Employee”
Art 212e. ______ includes any person acting in the interest of an employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as employer.
“Employer”
Art 212f. ________ includes any person in the employ of the employer. The term shall not be limited to the employees of a particular employer, unless this code so expressly states. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment.(expanded definition)
“Employee”
CONCEPT OF EMPLOYER-EMPLOYEE RELATIONSHIP
It is in personam, involves the rendition of personal service by the employee, and partakes of master and servant relationship.
May be NATURAL OR JURIDICAL, a single proprietorship, a partnership or a corporation.
EMPLOYER
The Government is an employer within the meaning of the Labor Code in Labor Standards.
So, a government agency with an original charter contracts with a security agency to supply security guards, and this security agency is unable to pay the wages of its guards.
Q: Is principal government agency considered jointly and severally liable with the security agency? Will Article 106-109, LC apply to them? Can the guards file with the labor complaint with the nearest arbitration branch of the NLRC and sue both the security and government agency?
YES, the Labor Code will govern. The government agency cannot move for the dismissal of the complaint for lack of jurisdiction on the part of the Labor Arbiter and say that they are governed by the Civil Service Law Rules and Regulations. The government agency contracted the services of an independent contractor, so they are considered principals. Therefore the LC will govern regarding the monetary claims of the security guards.
A motion to dismiss filed by the government agency in the above-cited example will not prosper on the ground that the Labor Arbiter has no jurisdiction, because the term “Employer” includes government agencies. It does not make any qualifications whether it is one with or without original charter.
is always a NATURAL PERSON [may include Filipino citizens or foreigners
EMPLOYEE
Dumon Sari-sari Store (single proprietorship).
Q: Who is considered the employer?
Wilbert Dumon will be the employer, because the sari-sari store does not have a separate juridical personality. So, if Dumon is made a defendant in a labor case, the caption will be - “Employee vs. Wilbert Dumon, doing business under the name and style of Dumon Sari-sari Store.”
Hiring of employees
For Foreigners – What provision applies?
Art. 40-42, PD 442 applies
Hiring of employees
Filipino- What provision applies?
there is none. The Constitution and the Labor Code encourage the employment of Filipinos.
Of those corporations owned by foreigners, if they want to employ alien as their employees, the following requirements must be complied with:
- Such domestic or foreign companies should obtain a permit form the DOLE ( Alien Employment Permit) at the nearest regional office
- There must be a determination of the non- availability of a person in the Philippines, who is competent, able, willing at the time of application to perform the services for which the alien is desired.
FOUR-FOLD TEST
- Selection and engagement of employees
- Payment of wages
- Power of dismissal
- Power of control over employee’s conduct and over the means and methods by which the work is to be accomplished
Why is it important to determine whether the relationship between the parties is that of employer and employee or that of principal and independent contractor or of principal-agent?
To determine what laws will govern the rights and liabilities of the parties, and what tribunal will have jurisdiction over their disputes.
TWO-TIERED TEST
(1) the putative employer’s power to control the employee with respect to the means and methods by which the work is to be accomplished and
(2) the underlying economic realities of the activity or relationship.
How to determine that a person is economically dependent?
- Number of years in the company
- Reported to SSS, good indicator of treating him as an employee.
- Registered in the payroll
- Identification card
- Company uniform
relationship governed by the Labor Code
Employer-Employee Rel
relationship governed by the Civil Code
Principal-Agent Rel
An employer cannot go to court and get an
injunction to compel a person to become his employee. If at all, the employee can only exercise the prerogative to invite that
person and to hire him if he so desires. In that sense, the right to hire is essentially a __________________.
management prerogative
It is an act of the employer according to his own judgment or discretion to regulate his business. This includes hiring, transfer,
dismissal, etc.
MANAGEMENT PREROGATIVE
LIMITATIONS ON MANAGEMENT PREROGATIVE
Law
Contract or CBA
Principles of fair play and justice
RIGHTS OF MANAGEMENT
Right to ROI
Right to prescribe rules
Right to select employees
Transfer or discharge of employees
The exercise of the right or prerogative to hire is ________. It is regulated by law
NOT ABSOLUTE
The exercise of the right or prerogative to hire is NOT ABSOLUTE. It is regulated by law.
What are the LIMITATIONS?
- Special Laws
- Contract
- Basic principles of equity and fair play
It shall be unlawful for an employer to require as a condition of employment or continuation of employment that a
woman employee shall not get married or to stipulate expressly or tacitly that upon getting married, a woman
employee shall be deemed separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman
employee merely by reason of her marriage.
Art. 136. Prohibition Against Stipulation of Marriage
Applies to the compensation for manual labor, skilled or unskilled, paid at stated times, and measured by the day, week, month, or season.
WAGE
Indicates inconsiderable pay for a lower and less responsible character of employment.
WAGE
Denotes a higher degree of employment or a superior grade of services, and implies a position or office.
SALARY
Suggestive of a larger and more permanent or fixed compensation for more important service.
SALARY
Our SC reached the same conclusion, the words “wages” and “salary” are in essence __________.
synonymous
Is there an instance outside labor law when wage and salary is distinguished?
Yes. In Article 1708 of the Civil Code where wage and salary are distinguished with regards to execution and attachment.
Shall include articles or services for the benefit of the employee or his family but shall not include tools of the trade or articles or service primarily for the benefit of the employer or necessary to the conduct of the employer’s business.
FACILITIES
Are items of expense necessary for the laborer’s and his family’s existence and subsistence so that by express provision of law, they form part of the wage and when furnished by the employer are deductible therefrom, since if they are not so furnished the laborer would spend and pay for them just the same.”
FACILITIES
REQUISITES FOR FACILITIES TO BE CONSIDERED AS AN INTEGRAL PART OF AN EMPLOYEE’S WAGE (deductibility)
- Must be customarily furnished by the employer to the employee;
- Must be charged at fair and reasonable value; and
- The provision on deductible facilities must be voluntarily accepted by the employee in writing.
Test use to determine if it is a facility or not.
Purpose test
constitute extra remuneration or special privileges or benefits given to or received by the laborers over and above their ordinary earnings or wages.”
SUPPLEMENTS
are items of expense necessary for the laborer’s and his family’s existence and subsistence.
Facilities
NWPC
National Wages and Productivity Commission
RTWPB
Regional Tripartite Wages and Productivity Board
minimum wage rates prescribed by law or wage order without deducting therefrom whatever benefits, supplements or allowances which the employees enjoy free of charge aside from the basic pay.
Cash Wage
The laborer’s wages shall not be subject to execution or attachment, except for debts incurred for food, shelter, clothing and medical attendance.
Art 1708 CC
METHODS OF FIXING COMPENSATION
A. Time [daily and monthly paid workers]
B. Commission
C. Job or task basis
D. Piece-rate basis [payment by results
2 CLASSIFICATIONS OF EMPLOYEES BASED ON TIME SPENT
- Daily-paid
2. Monthly-paid
Those employees who are paid on the days actually worked except unworked regular holidays when they are paid their basic wage if they are present or a leave with pay on the working day preceding the regular holiday.
DAILY-PAID EMPLOYEES
REMEDY FOR DOWNSIZING
Compressed workweek
Reduce working days
Temporary suspension of operations of not more than 6 months (no work no pay)
Paid everyday of the month including unworked rest days, special days and regular holidays. It is the standard compensation rate for managerial personnel, professionals, administrative employees and other white collar workers, including clerical employees and higher grade skilled workers.
MONTHLY-PAID EMPLOYEES
A flat or fixed sum for each particular job or task completed, without regard to the number f hours actually spent in the performance or completion.
JOB OR TASK RATE
IMPORTANCE: this law which amended the labor code will tell us the different government agencies involved in the fixing of wages and also how to resolve wage distortion(procedure in case wage distortion results in fixing wage)
RA 6727 WAGE RATIONALIZATION ACT
Hereinafter referred to as the Commission, which shall be attached to the Department of Labor and Employment (DOLE) for policy and program coordination. (As amended by Republic Act No. 6727, June 9, 1989).
National Wages and Productivity Commission
the power to prescribe rules and guidelines for the determination of appropriate wages in the country.
National Wages and Productivity Commission
NWPC is composed of:
- Ex-Officio Chairman Secretary of DOLE
- Ex-Officio Vice-Chairman Director-General of NEDA
- Two (2) members each from Worker and Employer sectors
- The Executive Director shall also be a member of the Commission
Shall be appointed by the President of the Phil upon recommendation of the Secretary of DOLE
Executive Director and 2 Deputy Directors
hereinafter referred to as Regional Boards, in all regions, including autonomous regions as may be established by law. The Commission shall determine the offices/headquarters of the respective Regional Boards.
Regional Tripartite Wages and Productivity Boards
Composition of RTWPB
Chairman Regional- Director of DOLE
Vice-Chairmen
Regional Director of NEDA Regional Director of DTI
Two (2) members each from workers and employers sectors
Each Regional Board to be headed by its Chairman shall be assisted by a Secretariat
shall mean a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation
Wage Distortion
refers to the Order promulgated by the Board pursuant to its wage fixing authority.
Wage Order
Procedures in Minimum Wage Fixing
Motu Proprio by the Board
By Virtue of a Petition Filed
Whenever conditions in the region, province or industry so warrant, the Board may, ________or as directed by the Commission, initiate action or inquiry to determine whether a wage order should be issued. The Board shall conduct public hearings in the manner prescribed under this Rule and Rule III. The Board may also conduct consultations with concerned sectors/ industries
motu proprio
PROPER PARTY to file for a petition
Legitimate labor organization or the employer
Any Wage Order issued by the Board may not be disturbed for a period of ____________ from its effectivity, and no petition for wage increase shall be entertained within the said period.
twelve (12) months
Remedy for the issuance of Wage Order
Appeal to NWPC not later than ten (10) days from the date of publication of the Order.
Valid grounds for appeal:
(a) non-conformity with prescribed guidelines and/or procedures;
(b) questions of law;
(c) grave abuse of discretion.
Does it suspend the effectivity of the Wage Order?
No, post a bond equivalent to the increase embodied in the wage order if you want it suspended.
Section 4. Period to Act on Appeal. The Commission shall decide on the appeal within ____ days from the filing of said appeal.
sixty (60)
MINIMUM WAGE FIXING PROCEDURE FLOW (Motu Proprio by RTWPB )
Publication/Notice of Hearing
OPPOSITION
ISSUANCE OF WAGE ORDER
APPEAL TO NWPC
Publication shall be made at least ___days before the date of initial hearing
15
Any interested party may file his opposition ______ initial hearing
on or before
WO Takes effect ___days after publication
15 days
Is the lowest wage rate fixed by law that an employer can pay his workers. (definition of terms IRR of RA6727)
STATUTORY MINIMUM WAGE
means all the remuneration or earnings paid by an employer to a worker for services rendered on normal working days and hours but does not include cost-of-living-allowances, profit sharing payments, premium payments, 13th month pay or other monetary benefits which are not considered as part of or integrated into the regular salary of the workers on the date the act became effective. (definition of terms IRR of RA6727)
BASIC WAGE
the exploiting of workers at wages so low as to be insufficient to meet the bare cost of living
Sweating System
To act as the national consultative and advisory body to the President of the Philippines and Congress on matters relating to wages, incomes and productivity
NWPC
To develop plans, programs and projects relative to wages, incomes and productivity improvement for their respective regions;
RTWPB
TWO METHODS OF DETERMINING WAGES
Floor wage method
Salary Ceiling method
method which involves the fixing of a determinate amount to be added to the prevailing statutory minimum wage rates.
Floor wage method
the wage adjustment was to be applied to employees receiving a certain denominated salary ceiling.
Salary Ceiling method
No Wage Order issued by any regional board shall provide for wage rates lower than the statutory minimum wage rates prescribed by Congress
Art. 127 LC. Non-Diminution of Benefits.
EXEMPTION FROM WAGE ORDERS
. Distressed establishments
- New business enterprises (NBEs)
- Retail/Service establishments employing not more than ten (10) workers
- Establishments adversely affected by natural calamities
EXEMPTION UNDER THE LABOR CODE (ART.98)
- Farm tenancy or leasehold;
- Domestic service;
- Persons working in their respective homes in needle work
- Persons working in any cottage industry duly registered in accordance with law
hereinafter referred to as BMBE, refers to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00
Barangay Micro Business Enterpris
To formulate policies and guidelines on wages, incomes and productivity improvement at the enterprise, industry and national levels;
NWPC
When does wage distortion happen?
It happens when the employer grants an increase only to a certain group of employees drastically reducing or eliminating the normal salary differential or gap.
Refers to a firm or a company where there is a recognized or certified exclusive bargaining agreement.
ORGANIZED ESTABLISHMENT
–where there is no recognized union or collective bargaining agreement
UNORGANIZED ESTABLISHMENT
WAGE DISTORTION RESOLUTION FLOWCHART for Organized Establishments
Negotiation
Grievance Machinery
Voluntary Arbitration under CBA
WAGE DISTORTION RESOLUTION FLOWCHART for Unorganized Establishments
Negotiation
CONCILIATION UNDER THE NCMB
COMPULSORY ARBITRATION UNDER THE LABOR ARBITER
Reference of a labor dispute to a third party for determination on the basis of evidence and arguments presented by such parties, who are bound to accept the decision.
LABOR ARBITRATION
Arbitration may be classified on the basis of obligation on which it is based, it may either be:
- VOLUNTARY ARBITRATION
2. COMPULSORY ARBITRATION
Defined as a contractual proceeding whereby the parties to any dispute or controversy in order to obtain a speedy and inexpensive final disposition of the matter, select a judge of their own choice and by consent, submit their controversy to him for determination.
VOLUNTARY ARBITRATION
Any person accredited by the Board as such; or Any person named or designated in the CBA by the parties to act as their voluntary arbitrator; or One chosen, with or without the assistance of the NCMB, pursuant to selection procedure agreed upon in the CBA; or Any official that may be authorized by the Sec of Labor to act as voluntary arbitrator upon the written request and agreement or the parties to a labor dispute
VOLUNTARY ARBITRATOR
Process of settlement of labor disputes by a government agency [or by other means provided by the government] which has the authority to investigate and to make award which is binding on all the parties.
COMPULSORY ARBITRATION
SEC. 4. Period of appeal. — The appeal shall be taken within ______ days from notice of the award, judgment, final order or resolution, or from the date of its last publication, if publication is required by law for its effectivity, or of the denial of petitioner’s motion for new trial or reconsideration duly filed in accordance with the governing law of the court or agency a quo. Only one (1) motion for reconsideration shall be allowed.
fifteen (15)
RA 6727 [amended by RA 8188]
Section 12. Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in accordance with this Act shall be punished by a fine not less than ________________ or both such fine and imprisonment at the discretion of the court: Provided, That any person convicted under this Act shall not be entitled to the benefits provided for under the Probation Law.
Twenty-five thousand pesos (P25,000) nor more than One hundred thousand pesos (P100,000) or imprisonment of not less than two (2) years nor more than four (4) years,
Failure or refusal to pay mandatory wage increase is considered a criminal offense under ________, approved on June 11, 1996.
Republic Act No. 8188
refer to the amount of increase or adjustment in the wage rate of workers fixed by the Board which the Employer is mandated to pay upon effectivity of a wage order
Prescribed increases or Adjustments”
refer to the prescribed wage rates which the employer failed to pay upon the effectivity of a wage order exclusive of other wagerelated benefits.
Unpaid Benefits
refers to the payment to a concerned employee of the prescribed increases or adjustments in the wage rates, which was not paid by an employer in amount equivalent to twice the unpaid benefits owing to such employee.
Double Indemnity
refers to the inspection form duly accomplished and issued by the labor standards enforcement officer to the employer or his representative after the completion of the inspection.
Notice of Inspection Result
refers to the order issued by the regional director, after due notice and hearing conducted by himself or a duly authorized hearing officer finding that a violation has been committed and directing the employer to pay the amount due each worker within ten (10) calendar days from receipt thereof.
“Compliance order
The computation for double indemnity as herein defined shall start from__________as indicated in the wage order.
the effectivity of the prescribed increases or adjustments
The Secretary of Labor and Employment or his duly authorized representatives, including labor regulation officers, shall have access to employer’s records and premises at any time of the day or night whenever work is being undertaken therein, and the right to copy therefrom, to question any employee and investigate any fact, condition or matter which may be necessary to determine violations or which may aid in the enforcement of this Code and of any labor law, wage order or rules and regulations issued pursuant thereto.
Visitorial and enforcement power. –
An order issued by the duly authorized representative of the Secretary of Labor and Employment under this Article may be appealed to the latter. In case said order involves a monetary award, an appeal by the employer may be perfected only ________________________duly accredited by the Secretary of Labor and Employment in the amount equivalent to the monetary award in the order appealed from. (As amended by Republic Act No. 7730, June 2, 1994)
upon the posting of a cash or surety bond issued by a reputable bonding company
Within __________ hours, a hearing shall be conducted to determine whether an order for the stoppage of work or suspension of operations shall be lifted or not. In case the violation is attributable to the fault of the employer, he shall pay the employees concerned their salaries or wages during the period of such stoppage of work or suspension of operation.
twenty-four
Upon complaint of any interested party, the Regional Director of the Department of Labor and Employment or any of the duly authorized hearing officers of the Department is empowered, through summary proceeding and after due notice, to hear and decide any matter involving the recovery of wages and other monetary claims and benefits, including legal interest, owing to an employee or person employed in domestic or household service or househelper under this Code, arising from employer-employee relations: Provided, That such complaint ___________________: Provided further, That the aggregate money claims of each employee or househelper ________________.
does not include a claim for reinstatement
does not exceed Five thousand pesos (P5,000.00)
The Regional Director or hearing officer shall decide or resolve the complaint within __________ calendar days from the date of the filing of the same.
thirty (30)
Any decision or resolution of the Regional Director or hearing officer pursuant to this provision may be appealed on the same grounds provided in Article 223 of this Code, within__________ from receipt of a copy of said decision or resolution, to the National Labor Relations Commission which shall resolve the appeal within________ from the submission of the last pleading required or allowed under its rules.
five (5) calendar days
ten (10) calendar days
Does the Labor Code confer this Visitorial Power to be exercised by the Regional Director?
YES. The Regional Director is the duly authorized representative of the SOLE.
Except as otherwise provided under this Code, the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the case by the parties for decision without extension, even in the absence of stenographic notes, the following cases involving all workers, whether agricultural or non-agricultural:
Unfair labor practice cases;
Termination disputes;
If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of pay, hours of work and other terms and conditions of employment;
Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee relations
Cases arising from any violation of Article 264 of this Code, including questions involving the legality of strikes and lockouts;
