EH 407:
Work which exposes children to physical, psychological
1. Cite one limitation on hiring employees under the Labor
Code.
2. Give example of special laws which set limitations on
hiring.
Note: No question regarding limitations under RPC -
7 people were called on these topics - 3.
Salary v Wage.
Is there a distinction?
4. What is wage order?
5. What is the role of NWPC? RTWPB? Composition?
3. Right to hire
I. 4 fold test (1) : Selection and Engagement of
Employees or Hiring.
Belongs to : Employer
a. Nature: right or Prerogative?
-It is merely a Management Prerogative.
Meaning: Business establishment has, among others, has
the right to control or direct its business , the right to its
fruits and the right to dispose the same, subject to the
regulations of the police power of the state.
Ex. Right to hire, dismiss, transfer, promote and demote,
lay down policies, establish working hours, organize and
reorganize, reasonable return on investment , expansion
and growth.
LB: Par. 4, Sec. 3 , Art. XIII, Consti:
- The state shall regulate the relations between workers
and employers recognizing the xxx right of enterprises to
reasonable returns of investments and to expansion and
growth.
Art. 428 of the Civil Code:
-The owner has the right to enjoy and dispose of a thing ,
without other limitations than those established by law.
LIMITATIONS:
A. Laws/ Special Laws
B. CBA/ Contract
C. Principles of Equity , fair play and justice
PROHIBITIONS PRIOR TO HIRING:
a. UNDER LABOR CODE
Summary:
1. ART.137 ( 139) Minimum Employable Age
2. ART. 134 (136) --- PROHIBITION AGAINST
STIPULATION OF MARRIAGE
3. 3. ART. 259 (248) UNFAIR LABOR PRACTICES
1. ART.137 ( 139) Minimum Employable Age
*. Classifies a workplace as Hazardous
LB: DO No. 004-99 Sec. 3
XXX
1.
or
sexual abuse, such as in:
a) lewd shows (stripteasers, burlesque dancers, and
the like)
b) cabarets
c) bars (KTV, karaoke bars)
d) dance halls
e) bath houses and massage clinics
f) escort service
g) gambling halls and places
Note: It is a criminal offense if you employ children below
18 in a Hazardous Work
LB: RA 9231
2. ART. 134 (136) --- PROHIBITION AGAINST
STIPULATION OF MARRIAGE
LB: Art. 1 Family Code
3. ART. 259 (248) UNFAIR LABOR PRACTICES
-to interfere with , restrain or coerce employees in the
exercise of their right to self-organization
- to require as a condition of eployment that a person or an
employee shall not join a labor organization or shall
withdraw from one to which he belongs
- to tinitiate or otherwise interfere with the formation or
administration of any labor organization
-to discriminate in regards to wages , hours of work and
other terms and conditions of employment in order to
encourage or discourage membership in any labor
organization.
- to violate CBA
B. SPECIAL LAWS
SUMMARY:
1. WORST FORMS OF CHILD LABOR
(Sec. 12&14 RA 7610 as AMENDED BYRA 7658 & RA
9231)
2. Guidelines in Assessing and Determining Hazardous
Work in Employment of Persons Below 18 y/o
( D.O NO. 65-04 S. 2004 &DOLE no. 149 S. 2016)
3. Employment in hazardous places
(DO. NO. 4 , s OF 1999 & dole MEMO Cir. No. 2, &
DOLE MEMCIRNo. 2-1998)
1. WORST FORMS OF CHILD LABOR
(Sec. 12&14 RA 7610 as AMENDED BYRA 7658 & RA
9231)
Sec. 12 Employment of Children
GR: Children below 15 y/o shall not be employed
Exception:
(1)- child works directly under the sole respt. of his
parents
- only members of the employers family are employed
- employment neither endangers his life, health and
morals
- parent or legal guardian shall provide the said minor with
the prescribed primary/ secondary education
(2) Childs employment or pariticipation in PUBLIC
ENTERTAINMENT is ESSENTIAL:
- employment contract is concluded by the childs parents/
legal guardian
- with express agreement of the child concered
- IF POSSIBLE w/ approval of the DOLE
*Where any of the cases the child is employed
Effect: Employer- shall first secure = a work permit from
DOLE
Sec. 14 Prohibition on the Employment of Children in
Certain Advertisements
(RA 7610)
Content:
2.Guidelines in Assessing and Determining Hazardous
Work in Employment of Persons Below 18 y/o
( D.O NO. 65-04 S. 2004 &DOLE no. 149 S. 2016)
3. Employment in hazardous places
(DO. NO. 4 , s OF 1999 & dole MEMO Cir. No. 2, &
DOLE MEMCIRNo. 2-1998)
Sec. 3. Hazardous ifconditions from Rule 1013 of the
OSHS has been confirmed
4. ANTI SEXUAL HARASSMENT ACT ( ra 7877)
Sec. 3 Work , Education or Training-related Sexual
Harassment defined
- sexual favor as a condition in he hiring , re-employment ,
promotion
- Work-related or in employment environment
This is committed when a person demands, requests, or
requires sexual favors from another person in exchange for
another thing such as hiring for employment, re-
employment, or continued employment, granting favorable
compensation, terms of conditions, promotions, or
privileges.
Refusal to accept sexual favors would mean
discrimination or deprivation of employment
opportunities.
Ex. e Civil Service Commission Resolution
Number 01-0940,
malicious touching
overt sexual advances
gestures with lewd insinuation
requests or demands for sexual favors, and lurid
remarks
use of objects, pictures or graphics, letters or
writing notes with sexual underpinnings
other forms analogous to the ones mentioned
5. Phil. Aids PRESERVATION AND CONTROL ACOT
0F 1998 ( RA 8504)
Sec. 35 Discrminiation in the wok
- post / pre employment discrimination based solely o
suspected HIV status is prohibited.
- Under the law, each employer shall ensure non-
discriminatory practices in the workplaces, such as
acquiring HIV testing, Labor and Employment Secretary
Rosalinda Dimapilis-Baldoz said.
- HIV testing should not be required as a precondition for
employment.
- the Occupational Safety and Health Center (OSHC) is
working to make more visible and extensive efforts in
reaching and informing workers on the dangers of risky
workplace behaviors that may lead to HIV/AIDS infection.
- The OSHC has intensified its HIV and AIDS prevention
and control campaign through the conduct of lectures,
training, and orientation in private companies. It has also
developed and disseminated information, education, and
communication materials on information on the basics of
HIV and AIDS prevention, transmission, and promotion of
non-discrimination against persons with HIV/AIDS.
- private companies, Baldoz urged them to implement
Department Order No. 102-10, Series of 2010, or the
Guidelines for the Implementation of HIV and AIDS
Prevention and Control in the Workplace Program.
- Private enterprises must have HIV and AIDS prevention
and control programs that should contain provisions for
educating workers on the basics of HIV and
AIDS, including the modes of transmission, ways of
avoiding infection, diagnosis, and treatment, she
said. "They should also implement non-discriminatory
policy and practices, ensure confidentiality of HIV status,
and work accommodation and arrangements.
- Under D.O. 102-10, the components of the HIV and
AIDS prevention and control workplace policy and
program should include advocacy, information, education,
and training; social policy; and diagnosis, treatment, and
referral services.
6. MAGNA CARTA FOR DISABLED PERSON
(Sec. 32 , title 3 RA 7277)
-NO discrimination against QUALIFIED disabled person
TITLE TWO RIGHTS AND PRIVILEGES OF
DISABLED PERSONS CHAPTER I
Employment
SECTION 5. Equal Opportunity for Employment
-No disabled persons shall be denied access to
opportunities for suitable employment.
-A qualified disabled employee shall be subject to the same
terms and conditions of employment and the same
compensation, privileges, benefits, fringe benefits,
incentives or allowances as a qualified able-bodied person.
-Five percent (5%) of all casual, emergency and contractual
positions in the Department engaged in social development
shall be reserved for disabled persons.
SECTION 6. Sheltered Employment
-the State shall endeavor to provide it by means of sheltered
employment.
-In the placement of disabled persons in sheltered
employment
>it shall accord due regard to the individual qualities,
vocational goals and inclinations to ensure a good working
atmosphere and efficient production.
SECTION 7. Apprenticeship
- Subject to the provision of the Labor Code as amended,
disabled persons shall be eligible as apprentices or learners;
Provided, That their handicap is not much as to effectively
impede the performance of job operations in the particular
occupation for which they are hired;
Provided, further, That after the lapse of the period of
apprenticeship if found satisfactory in the job performance,
they shall be eligible for employment.
SECTION 8. Incentives for Employer
(a) To encourage the active participation of the private
sector in promoting the welfare of disabled persons and to
ensure gainful employment for qualified disabled persons,
-adequate incentives shall be provided to private entities
which employ disabled persons.
(b). Private entities that employ disabled persons who meet
the required skills or qualifications, either as regular
employee, apprentice or learner,
= shall be entitled to an additional deduction, from their
gross income, equivalent to twenty-five percent (25%) of
the total amount paid as salaries and wages to disabled
persons:
7. General Banking Laws of 2000 ( sec. 55.5, RA 8791)
-no too lengthy probationary personnel in the manner
involving deposits
8. RESPONSIBLE PARENTHOOD & REPRODUCTIVE
HEALTH ACT. OF 2012
( RA 10354, SEC. 23 C
-employer should not suggest, require, influence or cause
any applicant for EMPLOYMENT to submit to sterilization
or any methods of family planning
9. ANTI-AGE DISCRIMINATION IN EMPLOYMENT
ACT (RA 10911) (DOLE D.O NO. 170 , S. 2017 , IRR)
- (RA 9208)
10. RA 7920 NEW ELECTRICAL ENGINEERING Law
11. RA 8495 PHIL. MECHANICAL ENG. ACT 1998
- the Philippine Society of Mechanical Engineers (PSMEs)
is positioned to make its loudest call for companies to
implement the law.
- to see to it that all establishments are hiring and
employing registered mechanical engineers in their
respective operations, otherwise they will face charges
based on the provisions of the law, said PSME vice
president for internal affairs Antonio Tompar.
- hich part of the provisions is for company owners,
manager or other person in charge of any mechanical
works, projects, or plants of 100 kilowatt or more shall post
or cause to be posted in a conspicuous place within such
plant or business, the original certificate or registration of
the engineer or engineers and of the certified plant
mechanics employed in such plant.
- REASON: Just like lawyers, doctors, and even drivers,
one can not practice without license. There are a lot of
companies now that are hiring and employing unlicensed
MEs, this pose danger to their operations, Tompar said.
- Article IV, Section 35 of RA 8495, otherwise known as
the Philippine Mechanical Engineering Act of 1998, states
that: "It is unlawful for any person to order or otherwise
cause the fabrication, construction, erection, installation or
alteration of any mechanical equipment, machinery or
process for any mechanical works, projects, or plants,
unless the designs, plans, layouts or specifications have
been prepared by or under the responsible charge of, and
duly signed and sealed by a professional mechanical
engineer."
- Based on a study, Tompar said only 10 percent of the total
establishment nationwide religiously implementing the law.
While 90 percent are violating the RA 5495.
We are now going into legal premise in strongly pursuing
violators. The only way to protect our industries and our
profession is to implement the law, he said.
C. OTHERS
SUMMARY:
1. INVOLUNTARY SERVITUDE
( Art. 1703 CC)
2. SLAVERY
( Art. 272)
3. EXPLOITATION OF CHILD LABOR
(Art. 273)
4. Services Rendered under compulsion in payment of
debs ( Art. 274)
5. EXPLOITATION OF MINORS
(RA 278)
6. ANTI-TRAFFICKING IN PERSONS ACT OF 2003
7. FORCED LABOR
1. INVOLUNTARY SERVITUDE
( Art. 1703 CC) FOR LC:
- no contract which constitutes involuntary servitude JURISPRUDENCE: Salary means recompense or
consideration made to a person for his pains or industry in
2. SLAVERY another mans business
( Art. 272) - fundamental idea of compensation for services rendered
-Penalty: PM < 10k
-P-S-K/DETAIN a human for just enslaving II. PRINCIPLES
A. Fair days wage for a Fair days Labor
3. EXPLOITATION OF CHILD LABOR -governs the rel. bet. Labor and capital
(Art. 273) - remains basis factor in determining employees wages
4. Services Rendered under compulsion in payment of GR:NO WORK NO PAY
debs ( Art. 274) EXC: prevented to work by management
-in order to require or enforce the payment of a debt , shall
compel to work for him B. EQUAL PAY FOR EQUAL WORK
5. EXPLOITATION OF MINORS - persons with the same/ equal:
(ART. 278) -qualification
- -skill
6. ANTI-TRAFFICKING IN PERSONS ACT OF 2003 -effort & resp.
(RA 9208) UNDER similar conditions
(RA 9208) =should be paid similar salaries, notwithstanding its
7. FORCED LABOR international character.

TOPIC 4- WAGES AND WAGE FIXING III. FACILITIES VS SUPPLEMENT

I. * Employer any person
- acting directly or indirectly
- in the interest of an employer
-in relation to an employee
-and shall include:
>the government & all its branches
> subdivisions & instrumentalities
> all govt. owned or controlled corpo. & ins
> non profit private inst. Or org.
* Employee any individual employed by an employer
LB: ART. 97 LC B& C
I. Wage and Salary
LB: Art. 98
a. Wage- compensation for manual labor, skilled or
unskilled
There are (2) components in wages:
1. cash (remuneration of earnings); and
2. fair and reasonable value of the facilities.
/BENEFITS/ALLOWANCES
A. FACILITIES- articles/ service for the benefit of the
employee / his family
- items of expense necessary for laborers and his familys
existence and subsistence
EFFECT: forms part of the wage and when furnished by
the employer =THEY ARE DEDUCTIBLE
LB: Book III , Rule 7 , Sec. 5
articles or services for the benefit of the employee or his
family but shall not include tools of the trade or articles or
services primarily for the benefit of the employer or
necessary to the conduct of the employers business.
STEPS /FACILITY OR NOT: (PWD)
1. Ascertain the purpose
2. Whose Benefit?
3. 2. Employee = deductible or not?(apply requisites of
deductibility.

REQUISITES FOR FACILITIES TO BE PART

b. Salary- denotes higher degree of employment
- superior grade of service
DISTINCTION- merely semantics (LC)
(CASE: Equitable Bank vs Sadac).
OF EMPLOYEES WAGE: (deductibility) F2V
1. Must be customarily furnished by the employer to
the employee
2. Charged at fare reasonable value
3. Provision on deductible facilities must be voluntarily
accepted by the employee in WRITING.
LB: RULE III Sec. 1 (D.O. NO. 126-13 S,2013)

FOR CC:regards with execution and attatchment
- for the purpose of Art. 1708 of CC
GR: ( wage shall not be subject to attachment)
EXC: debts incurred for food , shelter , clothing and
medical attendance
NOTE:
Exemption applies to WAGE only.
Exemption does NOT APPLY to SALARY.
*criterion= PURPOSE not the kind
-if all requisites are present
EFFECT: facilities may take place of the cash payment of
the employees wage
(exception to the GR that employees should be paid in legal
tender
B. SUPPLEMENTS
-constitutes extra remuneration or special privileges or
benefits given to or received by the laborer OVER AND
ABOVE EARNINGS OR WAGES. Relevance:
Ex. (Sec 4. (i) (D.O. NO. 126-13 S,2013)
1. Emergency medical , dental services Before: only Malacanang through PD
2. Shares of Capital stock of the employee in an employers
- does not take into consideration:
company
3. Paid vacation > capitalization of the employer
SUMMARY OF DISTINCTION > profit expected
FACILITIES VS SUPPLEMENTS (NPID) > cost of living in a particular area
1. Necessity for laborers & familys sustenance
2. Part/ Independent to wage SIDE COMMENT: market clearing price of labor is
3. Deductibility primarily determined on the basis of employers capacity to
REVISED GUIDELINES ON THE CONDUCT OF
pay rather than on the workers right to a living wage
FACILITY EVALUATION
- principle of living wage and that its planned
by: RTWPB
nationalization of minimum wage will lead towards the
(D.O. NO. 126-13 S,2013)
ultimate realization of this social objective. Workers, in the
Sec. 4(f) Family Eval- eval conducted by appropriate
first place, deserve not a minimum wage but a fair share in
RTWPB to determine the fair and reasonable value of
the product of their labor.
facilities furnished by the employer to his employees
Sec. 2 Liberal construction
We are looking forward to an instruction to all regional
Sec. 3 Scope: Only Facilities ; EXCLUDE supplements
wage boards to issue a uniform wage order that is based on
Implied: to be done by : (RTWPB)
Metro Manila rate. And we are, at the same time, looking
REGIONAL TRIPARTITE WAGES and
forward to a Palace-endorsed or certified bill in Congress
PRODUCTIVITY BOARDS
seeking the same and eventually the repeal of the existing
Sec. 4. Def of terms
Wage Rationalization Act.
NWPC National Wage and Productivity Commission
DOLE Regional office of DOLE
The NAGKAISA also strongly believe on the principle of
Cash Wage- min. wage rates prescribed by law w/o any
equal pay for equal work and work of equal value not just
deductions
on private sector workers but for those government
- aside from basic salary
employees who are in the same bind.
RULE V
Appeal Sec.2. Grounds:
, the NAGKAISA call on the government for the uniform
- Violation of Procedure
application and implementation of Salary Standardization
- Serious error in computing the monetary value of the
Law to all local government units (LGUs).
facility

WORKERSS LIEN
POLICIES OF THE STATE
Art. 1707 cc
1. To rationalize the fixing of the minimum wage
2. To promote productivity-imporvement and gain-sharing
measures to ensure a decent standard of living for the
EXCEPTION FROM EXECUTION OR ATTATCHMENT
workers and their family.
LB: ART. 1708 CC
3. To guarantee the rights of labor to its just share in the
Gr: Wages are not Subject of Execution
fruits of production
Exc: debts incurred for support
4. To enhance employment generations in the countryside
ex. Food, shelter, clothing, medical attendance
thorough industry dispersal..
5. To allow business and industry reasonable ROI ,
Art. 1709- not retain any tools owned by employee
expansion and growth

METHODS OF FIXING COMPENSATION

GOVT. AGENCIES INVOLVED:
T-C-J-P
1. NWPC -
A. TIME (daily/ monthly paid workers)
LB: Art. 120 LC
B. COMMISSION
Functions:
C. JOB / TASK BASIS
-(a) act as the National consultative and advisory body of
D. PIECE-RATE BASIS( payment by results)
the pres. & congress related to wages, incomes and
productivity
WAGE RATIONALIZATION ACT
-(b) formulate policies and guidelines on WIPI at the
(RA 6727)
enterprise , industry and national levels 1. Chairman
-(c) prescribe rules and regulations for the determination of -Regional Director of DOLE
appropriate Minimum wage and productivity measures at (Cebu: Elias A. Cayanong)
the regional . provincial or industry level .
xxxx CAVEAT: subject to the guidelines of NWPC
LB: Art. 121 (as amended by Art. 6727, June 9 , 1989) 2. Vice Chairman
-Regional Director of NEDA
Efren B. Carreon
COMPOSITION: Regional Director
1. Ex-officio Chairman (Cebu)
- Sec. of Labor -Regional Director of DTI
Present: Silvestre H. Bello III 3. Two members each from workers and employers sectors
2. Ex- officio Vice- Chairman 4. Each regional board to be headed by its chairman shall
- Director General of NEDA be assisted by a secretariat
(national economic and dev. Authority)
Ernesto M. Pernia
Socioeconomic Planning Secretary
3. Two members each from Worker and Employer Sectors REVISED RULES OF PROCEDURE ON MINIMUM
4. Executive Director WAGE FIXING
Secretariat: > Executive director
(NWPC GUIDELINES NOO. 001-95)
> 2 deputy directors
(m) wage distortion- increased in prescribed wage rates
results in the elimination of the quantitative differences in
wage or salary rates between and among employee groups
LB: Art. 121 (as amended by Art. 6727, June 9 , 1989)

REVISED GUIDELINES ON THE CONDUCT OF

TIME AND MOTION STUDY
B. Regional Tripartite Wages and Productivity Board
(D.O. NO. 125-13 S, 2013)
Power: exercises quasi-legislative power NOT quasi-
judicial -systematic determination of work methods and time
PROCEDURE: standards using various tools /technoloiges
Effect: Dec. of RTWPB is appealable to NWPC NOT CA
NWPC = no more appeal
-Remedy > Rule 65 (Grave Abuse, CA)
> Rue 45 ( Questions of Law , sc)
Grounds: POWER TO ISSUE WAGE ORDERS AND NATURE
> non-conformity with prescribed guidelines / procedures OF POWER
> question of law
LB: Art. 122(Board) & 120 (Creation of Comission) LC
>grave abuse of discretion
-wage orders issued by Board can cover only PRIVATE
SECTOR workers

NATURE:
-wage-fizing authority
- authorize to determine and fix the minimum wage rates in TWO METHODS OF DETERMINING WAGES
their respective regions , provinces and industries 1. Floor wage method:
-issue corresponding wage orders
- may issue wage orders which set the daily minimum wage
rates based on the standards or criteria set by ART. 124 of
the LC 2. Salary Ceiling Method:

COMPOSITION:

HOW IS WAGE FIXED:
Minimum Wage Fixing
Sec. 1 Conduct of wage and Productivity Studies
>subject to guidelines issued by Commission
> investigate and study all pertinent facts based on the
standards and criteria --- in determining WON WO
SHOULD BE ISSUED
Sec. 2. Criteria should nearly be adequate as is
economically feasible to maintain minimum standards
of living necessary for general well being of the workers
xxxx
Sec. 3. Procedures in Minimum Wage Fixing.
(a) Motu Proprio by the Board.
Whenever conditions in the region, province or industry so
warrant,
Effect: the Board may, motu proprio or as directed by the
Commission mandate action or inquiry to determine
whether a wage order should be issued.
> motu proprio or on motion of any party, consolidate these
- Board should conduct PUBIC HEARING/
CONSULTATION
(b) Wage Fixing by Virtue of a Petition Filed.
1. Form and Content of Petition. Any party may file a
verified petition for wage increase with the appropriate
Board in ten (10) typewritten legible copies which shall
contain the following:
XXXXX
2. Board Action.
If the petition conforms with the requirements prescribed in
the preceding sub-section b.1, the Board shall conduct
public hearings/consultations in the manner prescribed
herein, to determine whether a wage order should be
issued.
3. Publication of Notice of Petition/Public Hearing.
A notice of the petition and/or public hearing shall be
published in a newspaper of general circulation in the
region, and/or posted in public places as determined by the
Board.
>The notice shall include the name/s and address/es of the
petitioner/s, the subject of the petition and the date/s,
place/s and time of the hearings.
> The publication or posting shall be made at least fifteen
(15) days before the date of initial hearing and shall be in
accordance with the suggested form herein attached as
Annex "A".
4. Opposition.
Any party may file his opposition to the petition on or
before the initial hearing, copy furnished the petitioner/s.
The opposition shall be filed with the appropriate Board in
ten (10) typewritten legible copies which shall contain the
following:chanroblesvirtuallawlibrary
(a) name/s and address/es of the oppositor/s and
signature/s of authorized official/s;
(b) reasons or grounds for the opposition; and
(c) relief sought.
5. Consolidation of Petitions.
If there is more than one petition filed, the Board may,
for purposes of conducting joint hearings or proceedings to
expedite resolutions of petitions. Petitions received after
publication of an earlier petition need not go through the
publication/posting requirement.
6. Assistance of Other Government and Private
Organizations.
The Board may enlist the assistance and cooperation of any
government agency or private person or organization to
furnish information in aid of its wage fixing function.
HOW!!!
The Wage Order
The Regional Board shall investigate and study all pertinent
facts, and based on certain standards and criteria, shall
proceed to determine if theres a need to issue a Wage
Order, which naturally fixes the minimum wage in the
region. The Wage Order takes effect after 15 days from its
complete publication in at least 1 newspaper of general
circulation in the region. (Art. 123, Labor Code, as
amended by Republic Act RA 6727, also known as the
Wage Rationalization Act)
The Wage Order covers all private employees in the region.
Of course, government employees are not covered by the
increase prescribed in a Wage Order.
One-Year Period for Wage Increase
As a general rule, a Wage Order can only be issued once a
year, which means that there could only be one wage
increase every year. No petition for wage increase may be
entertained within the 12-month period from effectivity of
the Wage Order. By way of exception, however, a wage
increase within the 12-month period is allowed when there
is a supervening condition, such as an extraordinary
increase in prices of petroleum products and basic goods
and services. The Regional Wage Boards determines the
existence of supervening condition, to be confirmed by the
National Wages and Productivity Council (NWPC).
The Regional Wage Boards
The Regional Tripartite Wages and Productivity Boards
(RTWP), also referred to as the Regional Board or
Regional Wage Board, has the authority to determine and
fix minimum wage rates applicable in their regions,
provinces or industries therein, and to issue the
corresponding Wage Orders.
The Regional Wage Boards may initiate a new round of
study for minimum wage increase. It may do so, on its own,
even without a petition for wage increase.
Public hearings and consultations
The regional wage boards cannot issue a Wage Order
without conducting public hearings/consultations, giving
notices to employees and employers groups, provincial,
city and municipal officials and other interested parties.
Standards/criteria for minimum wage fixing
The level of wages under a Wage Order must be nearly
adequate as is economically feasible to maintain the
minimum standards of living necessary for the health,
efficiency and general well-being of the employees within
the framework of the national economic and social
development program. (Art. 124, Labor Code)
Among the relevant factors to be considered in fixing the
regional minimum wages are the following:
1. The demand for living wages;
2. Wage adjustment vis--vis the consumer price index;
3. The cost of living and changes or increases therein;
4. The needs of workers and their families;
5. The need to induce industries to invest in the
countryside;
6. Improvements in standards of living;
7. The prevailing wage levels;
8. Fair return of the capital invested and capacity to pay of
employers;
9. Effects on employment generation and family income;
and
10. The equitable distribution of income and wealth along
the imperatives of economic and social , development.
What is the composition of the RTWP?
Each Regional Board shall be composed of the Regional
Director of the Department of Labor and Employment
(DOLE) as chairman, the Regional Directors of the
National Economic and Development Authority (NEDA)
and the Department of Trade and Industry (DTI) as vice-
chairmen and two (2) members each from workers and
employers sectors who shall be appointed by the President
of the Philippines, upon the recommendation of the
Secretary of Labor and Employment, to be made on the
basis of the list of nominees submitted by the workers and
employers sectors, respectively, and who shall serve for a
term of five (5) years.
Freedom to bargain
The minimum wage provided in the Wage Order must be
observed by both the employer and the employee. In other
words, the employer cannot pay an amount lower than, and
the employee cannot legally demand an amount higher
than, the amount fixed in the Wage Order. However, both
the employees and employers in particular firms or
enterprises or industries are allowed to bargain or negotiate
for higher wages.
NEW NOTES!!
I. WAGE DISTORTION:
LB: ART. 124 Standard /Criteria for minimum wage fixing
Analysis: this happens only if the employee grants an
increase ONLY to a certain group of employees
= results in drastically reducing the differential gap of 2
different group of employees.
A ELELEMTS OF WAGE DISTORTION:Hp w/ Sr-Sc-
E-ED
a. Existing hierarchy of positions with corresponding
salary rates
b. Significant change in the salary rate of a lower pay class
w/ increase in the salary of a higher one
c. Elimination of the distinction between the two levels
d. Existence of distortion in the same region of the country
B. METHODS OF RESOLVING WAGE DISTORTION
LB: passage of art 114
Effect: law recognizes the validity of a Negotiated Wage
increase to correct Wage Distortion
LEGESLATIVE INTENT: both parties to seek solution
through voluntary negotiation
>instead of strikes
C. PROCEDURE
a. ORGANIZED: a firm or company where there is a
recognized /certified exclusive Bargaining Agreement
(1) dispute settled through GRIEVANCE PRODECURE
Grievance Machinery- detailed procedure on how the
parties will resolve a dispute arising from
> interpretation/implementation of CBA
> interpretation / enforcement of company personnel
pol\icies
*CBA has:
> Terms and Conditions
> Num of Hours to work
> Wage
> PROCEDURE FOR RESOLVING GRIEVANCE (
and chosen Arbitrator )
First, Parties will be submitted to VOLUNTARY
ARBITRATION
- dec. of VA is final and executory after 10 days from the
receipt of the copy of the decision by the parties
*1 MR allowed w/in 10 day period
*Since its F&E nature, only TRO from CA/SC will stay
the execution of the VAs
APPEAL TO CA FROM QUASI-JUDICIAL BODIES
LB: Rule 43
-appeal w/in 15 days form the notice of the award or
publication (if required by law) ,of denial of petitioners
motion for new trial or recom.
-only involves question of facts, of law or mic
-Correct Remedy: Review with motion to stay
RULE 43 - APPEALS FROM THE COURT OF TAX
APPEALS AND QUASI-JUDICIAL AGENCIES TO
THE COURT OF APPEALS
Scope. Rule 43 applies to appeals from judgments or
final orders of the:
Xxxx
Cases not covered. Rule 43 does not apply to judgments
or final orders issued under the Labor Code of the
Philippines i.e., Labor Arbiter, NLRC En Banc/Division.
Period of appeal. Fifteen (15) days.
Only one (1) motion for reconsideration shall be allowed.
Effect of appealThe appeal shall not stay the award,
judgment, final order of resolution sought to be reviewed
unless the Court of Appeals shall direct otherwise upon
such terms as it may deem just.
Remedy Integrate a motion for TRO in the petition for
review.
Submission for decision.If the petition is given due
course, the Court of Appeals may set the case for oral
argument or require the parties to submit memoranda
within a period of fifteen (15) days from notice.
RULE 45 - APPEAL BY CERTIORARI TO THE
SUPREME COURT
Time for filing; extension.The petition shall be filed
within fifteen (15) days from notice of the judgment or
final order or resolution appealed from, or of the denial of
the petitioners motion for new trial or reconsideration filed
in due time after notice of the judgment.
On motion duly filed and served, with full payment of the
docket and other lawful fees and the deposit for costs
before the expiration of the reglementary period, the
Supreme Court may for justifiable reasons grant
an extension of thirty (3\0) days only within which to
file the petition.
Due course; elevation of records.If the petition is given
due course, the Supreme Court may require the elevation of
the complete record of the case or specified parts thereof
within fifteen (15) days from notice.
LEGAL REMEDY OF THE DECISION OF THE VA
(1) File MR w/in 10 days from the receipt of the copy of
the decision
(2) to CA w/in 15 days from notice of the award
LB: Rule 43
* if appeal- dec will not stay cause VAs dec. is F&NA but
TRO w/ Writ of Preliminary injunction may be applied.
(See also Prohibition against Injunction Art. 126)
(3) Rule 45- SC
UNORGANIZED: no recognized union or Collective
Bargaining Agreement
*See Flow chart
4-a : VIOLATION OF WAGE ORDER
A. Double Indemnity and Imprisonment
LB: Sec 12, RA 6727
Sec 3- once the Sec. of labor and employment of the Reg.
Director has acquired jurisdiction over a violation pursuant
to visitorial and enforcement power vested
LB: ART 128 (B)
Effect: has the power to issue COMPLIANCE ORDER
S\ec 4 Computation of DI= start form the effectivity of
the prescribed increase or adjustments as indicated in the
WO
-ONLY LIMITED TO UNPAID benefits
JURISDICTION
1. Regular Courts- RA 7691
- RTC exclusive original jurisdiction in Civil Cases
2. Regional Director-ART. 128 visitorial and enforcement
power
3. Labor Arbiter- Art. 217 Jurisdiction of the Labor
Arbiters and the Commission
TOPIC 5: WAGE ENFORCEMENT AND RECOVERY
-TWO enforcement tools
> legal intterst
arising from employer-employee relationship
LIMITATION: does not claim for reinstatement and money
claim does not exceed 5k
RD: decide w/in 30 days from the date of filing
-Jurisdiction
LB: art. 129 & 224 (217)
-2011 NLRC Rules of Procedure(as amended)
-Appeal Procedure & Legal Remedies (as amended)
-Enforcement Power on Health / Safety of workers
LB: Art. 128 (c )
>distinguish form Bona Fide suspension of operations
LB: Art. 301 ( 286)
-DOLE /BWCs Occupational Health and Safety Standards
as amended >see DOLE dept. circular No. 3, S. 2009
-
TOPIC 6: WAGE PROTECTION

I.Primary Framework to ensure compliance with Labor

Laws.

A. Visitorial and Enforcement Power

LB: Art. 128 (A)as amended by RA 7730
WHO: -Secretary of Labor and Employment
- his duly authorized (Reg. Director)
- labor regulation officer
WHAT: shall have access to employers records and
premises
-right to copy
-to question any employee
-invetigate any fact, condition or mater which may be
necessary to determine violations or which may aid in the
enforcement of this code
WHEN: anytime of the day or night
-whenever work is being undertaken

SCOPE &LIMITATIONS:
-broad enough to cover any fact , condition or matter
related to the enforcement not only of the LC but any labor
law
--Unlimited by any amount of monetary liability involved
LB: Art. 128 (b)

-Jurisdictional Requirements

B. Simple Money Claims

LB: Art. 129 Recovery of wages , simple money claims and
other benefits.
*upon claimant of any party
WHO: Regional Director of DOLE
- any authorized hearing officers of the Dept.
WHAT- empowered
by: Summary Proceeding/ due notice
- to hear and decide any matter involving recovery of
>wages
>other monetary claims and benefits