Labor Standard Chapter 1 Wages Preliminary Matters Arts.

s. 97-98 Definitions: Employer = includes any person acting 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 governmentowned or controlled corporations and institutions, as well as non-profit private institutions, or organizations Employee = includes any individual employed by an employer Agriculture = includes farming in all its branches and, among other things includes the cultivation and tillage of soil, dairying, the production, cultivation, growing and harvesting of any agricultural and 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 Employ = includes to suffer or permit to work Wage = 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, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for services rendered or to be rendered and includes the fair and reasonable value, as determined by the Secretary of Labor, of board, lodging, or other facilities customarily furnished by the employer to the employee. o Wages v. salary Wages Applies to the compensation for manual labor, skilled or unskilled, paid at stated times, and measured by the day, week, month, or season Indicates inconsiderable pay for a lower and less responsible character of employment Restricted to sums paid as hire or reward to domestic or menial servants and to sums paid artisans, mechanics, labourers, and other employees of like class Less extensive meaning Includes commission Wagen

Salary Denotes higher degree of employment, or a superior grade of services Implies a position or office Suggestive of a larger and more permanent or fixed compensation for more important service Compensation of clerks, officers of public corporations, and public offices Includes earned sales commissions Solarium Wage includes facilities or commodities Art. 97 (f) wage includes the fair and reasonable value of board, lodging, or other facilities customarily furnished by the employer to the employee Sec. of Labor fix the fair and reasonable value of board, lodging and other facilities customarily furnished by employer Book III, Rule VII, Sec. 4 Meals and snacks = employer may deduct from the wages not more than 70% of the value o Such deductions must be authorized by employees in writing o Remaining 30% subsidized by the employer Lodging facility = determined to be the cost of operation and maintenance o Includes: adequate depreciation + reasonable allowance o Total is more than fair rental value: fair rental value = cost of the maintenance and operation o Rate of depreciation and depreciated amount = derived under good accounting practices Facilities v. supplements Facilities = includes articles or services for the benefit of the employee or his family o Wage-deductible State Marine Corporation and Royal Line, Inc. v. Cebu Seamens Association, Inc. o G.R. No. L-12444, Feb. 28, 1963 3 requirements before the value of a facility may be deducted from the employees wage (Mabeza v. NLRC): o Proof must be shown that such facilities are customarily furnished by the trade

The provision of deductible facilities must be voluntarily accepted in writing by the employee o Facilities must be charged at fair and reasonable value salaries excludes allowances Salary v. gratuity Gratuity = something given freely, or without recompense o A gift; something voluntarily given in return for a favor or services; a bounty; a tip o That w/c is paid to the beneficiary for past services rendered purely out of the generosity of the giver or grantor o A money benefit given to the workers whose purpose is to reward employees or labourers who have rendered satisfactory and efficient service to the company Fair days wage = fair days labor Where the failure of workers to work was not due to the employers fault = burden of economic loss suffered by the employees should not be shifted to the employer Equal pay = equal work Performing similar functions and responsibilities under similar working conditions = paid equally International School Alliance of Educators (ISAE) v. Hon. Leonardo A. Quisumbing, et. al. o G.R. No. 128845, June 1, 2000 Agricultural Work Defined in Art. 97(d) o Work on the soil and its harvests o 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 fibers for the market Planting and harvesting sugar cane and other chores incidental to ordinary farming operations Tillage of the soil, raising of crops including discovery of plant pests and their eradication o

by means of insecticides done in the Bureau of Plant Industry Experimental Station in Davao City Business of fishpond Employees of the International Rice Research Institute employed in direct farm operations in its experimental farm as well as employees in farm machinery shop, repair shop, carpentry shop, etc. Classification of worker depends on = nature of the work Industrial work = when the harvests are processed into finished product or transformed to another product