5.

Minimum Wages and Wage Fixing Machinery

A. Minimum Wage

1. General Principles
a. Right to a living wage 2nd Par, Sec 3, Art XIII, 1987 Constitution It shall guarantee the rights of all workers to (1) self-organization, (2) collective bargaining and negotiations, and peaceful concerted activities, including the (3) right to strike in accordance with law. They shall be entitled to (4) security of tenure, (5) humane conditions of work, and (6) a living wage. They shall also (7) participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.

b. No work, No pay / A fair days wage for a fair days labor Azucena says: This maxim continues to govern the relation between labor and capital and remains a basic

factor in determining employees wages. If there is no work performed by the employee there can be no wage or pay unless the laborer was able, willing and ready to work but was prevented by management or was illegally locked out, suspended or dismissed.

SUGUE v TRIUMPH INTERNATIONAL PHILS (2009; Leonardo-De Castro, J.) QUICK FACTS: Sugue and Valderrama attended the hearing of the NLRC complaint for monetary claims during work hours and using company vehicle. Triumph charged the said absence to their vacation leave credits. HELD: It is not a discriminatory act and in fact, fair and reasonable to do so considering Sugue and Valderrama did not perform work for one-half day. Attending the hearing was not part of compensable time. They voluntarily absented themselves while the legality and propriety of their demands is not yet known, hence they should lose their pay during period of such absence. AKLAN ELECTRIC CORP v NLRC (2000; Gonzaga-Reyes, J.) QUICK FACTS: AKELCO temporarily transferred principal business operations from Lezo, Aklan to Kalibo, Aklan because of the imminent danger in said place. Workers willfully and maliciously refused to heed the lawful orders and issuances of GM. Under principle of no work, no pay they were considered as having abandoned their employment and on a mass leave. HELD: The age-old rule in governing relation between labor and capital of fair days wage for a fair days labor remains as the basic factor in determining employees wages. No work, no pay unless of course, laborer was able, willing and ready to work but was illegally locked out, suspended or dismissed or otherwise illegally prevented from working. Not fair to allow them to recover something they have not earned and could not have earned because did not render services at the Kalibo office during stated period. a. Equal pay for work of equal value Art 135 Discrimination prohibited It shall be unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of employment solely on account of her sex. The following are acts of discrimination: (a) Payment of a lesser compensation, including wage, salary or other form of remuneration and fringe benefits, to a female employees as against a male employee, for work of equal value. (b) Favoring a male employee over a female employee with respect to promotion, training opportunities, study and scholarship grants solely on account of their sexes. Criminal liability for the willful commission of any unlawful acts as provided in this Article or any violation of the rules and regulations issued pursuant to Sec 2 hereof shall be penalized as provided in Art 288 and Art 289 of this Code PROVIDED: The institution of any crim action under this provision shall not bar the aggrieved employee from filing an entirely separate and distinct action for money claims, which may include claims for damages and other affirmative reliefs. The actions hereby authorized shall proceed independently of each other. Art 248 (e) Unfair labor practices To discriminate in regard to wages, hours of work and other terms and conditions of employment in order to encourage or discourage membership in any labor organization. Nothing in this Code or in any other law shall stop the parties from requiring membership in a recognized CB agent as a condition for employment, except those employees who are already members of another union at the time of the signing of the CB agent. Employees of an appropriate bargaining unit who are not members of the recognized CB agent may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized CB agent, if such non-union members accept the benefits under the CBA PROVIDED: the individual authorization required under Art 242, par (o) shall not apply to the nonmembers of the recognized CBA

INTERNATIONAL SCHOOL ALLIANCE OF EDUCATION v QUISUMBING (2000; Ponente) QUICK FACTS: Different wages given to foreign-hires and local-hires. HELD: Should be the given same compensation because they have the same workload. After all, foreign-hires already enjoy benefits to which local-hires are not entitled (e.g. housing, pay vacation allowance). a. Form: agreement for compensation of services Art 97 (f) Wage paid to any employee 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 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 includes the fair and unreasonable value, as determined by the Labor Sec, of board, lodging, or other facilities customarily furnished by the employer to the employee Fair and reasonable value shall not include any profit to the employer, or to any person affiliated with the employer ARMS TAXI v NLRC (1993; Grino-Aquino, J.) QUICK FACTS: Culla was a garage supervisor, liaison man, dispatcher and mechanic and driver for Arms Taxi. He wants the promised 15% commission. HELD: He was not entitled to such commission because of delay in enforcement of alleged agreement.

a. Exemption from income tax RA 9504 (17 June 2008) 1. Coverage

Art 97 (b) Employer includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include: govt and all its branches, subdivisions & instrumentalities, all GOCC and institutions, as well as non-profit private institutions or organizations. Art 97 (c) Employee includes any individual employed by an employer Art 97 (e) Employ includes to suffer or permit to work Art 98 Application of Title This Title () shall not apply to: Farm tenancy or leasehold Domestic service Persons working in their respective homes in needle work or in any cottage industry duly registered in accordance with the law

Sec 3, Rule VII, Book 3 Coverage - This Rule shall not apply to the following persons: (a) Household or domestic helpers, including family drivers and persons in the personal service of another (b) Homeworkers engaged in needle work (c) Workers employed in any establishment duly registered with the National Cottage Industries and Development Authority in accordance with RA 3470 (), PROVIDED that such workers perform the work in their respective homes (d) Workers in any duly registered cooperative when so recommended by the Bureau of Cooperative Development and upon approval of the Labor Sec PROVIDED, that such recommendation shall be given only for the purpose of making the cooperative viable and upon finding and certification of said Bureau, supported by adequate proof, that the cooperative cannot resort to other remedial measures without serious loss or prejudice to its operation except through its exemption from the requirements of this Rule. The exemption shall be subject to such terms and conditions and for such period of time as the Labor Sec may prescribe. PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY v NLRC (1992; Gutierrez, Jr, J.) QUICK FACTS: Security guards PFDA wants salary increase in conformity with Wage Order No. 6. PFDA is a GOCC, does NLRC have jurisdiction? HELD & RATIO: Yes, because as an indirect employer through Odin Security Agency, he is jointly and solidarily liable for unpaid wages of the guards.

1. Minimum Wage
Reasons for having a MWR Promote productivity-improvement and gain-sharing measures to ensure a decent standard of living for the workers and their families Guarantee the rights of labor to its just share in the fruits of production Enhance employment generation in the countryside through industry dispersal Allow business and industry reasonable returns on investment, expansion and growth Affirm labor as a primary social economic force Determination of compliance with minimum wage Art 99 Regional Minimum Wages The minimum wage rates for agricultural and non-agricultural employees and workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and Productivity Boards. Art 61 Apprenticeship agreements, including the wage rates of apprentices, shall conform to the rules issued by the Labor Secretary. Apprenticeship agreements providing for wage rates below the legal minimum wage, which in no case shall start below 75% of the applicable minimum wage, may be entered into only in accordance with apprenticeship program duly approved by the Labor Secretary Art 75 (c) Learnership agreements shall include The wages or salary rates of the learners which shall begin at not less than 75% of the applicable minimum wage Art 80 (b) Employment agreement for handicapped workers shall include - rate to be paid the handicapped workers which shall not be less than 75% of the applicable legal minimum wage Sec 2, RA 7323 Sixty per centum (60%) of said salary or wage shall be paid by the employer in cash and forty per centum (40%) by the Government in the form of a voucher which shall be applicable in the payment for his tuition fees and books in any educational institution for secondary, tertiary, vocational or technological education. The amount of the education voucher shall be paid by the Government to the educational institution concerned within thirty (30) days from its presentation to the officer or agency designated by the Secretary of Finance. The voucher shall not be transferable except when the payee thereof dies or for a justifiable cause stops in his duties in which case it can be transferred to his brothers or sisters. If there be none, the amount thereof shall be paid his heirs or to the payee himself, as the case may be. Sec Sec Sec Sec 4, 5, 6, 7, Rule Rule Rule Rule VII, VII, VII, VII, Book Book Book Book 3 3 3 3

a.

IRAN v NLRC (1998; Romero, J.) QUICK FACTS: ISSUE: HELD & RATIO: b. Facilities and Supplements/Allowances

MILLARES v NLRC (1999; Bellosillo, J.) QUICK FACTS: ISSUE: HELD & RATIO: c. Cash Wage/Commission

SONGCO v NLRC (1990; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: BOIE TAKEDA v DE LA SERNA (1993; Ponente) QUICK FACTS: ISSUE: HELD & RATIO:

PHILIPPINE DUPLICATORS v NLRC (1995; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: d. Gratuity and Salary/Wages, Difference

PLASTIC TOWN CENTER v NLRC (1989; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: e. Effect on Benefits Art 100 Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code. DAVAO FRUITS CORPORATION v ASSOCIATED LABOR UNION (1993; Ponente) QUICK FACTS: ISSUE: HELD & RATIO: