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Title II Wages Preliminary Matters Art.

97 Definitions Person- individual, partnership, association, corporation, business trust, legal representatives, or any organized group of persons. (ipac-bla) Employer- 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, subdivisions and instrumentalities, all government-owned or controlled corporations and institutions, as well as non-profit private institutions, or organizations Employee- any individual employed by an employer. Agriculture- farming in all its branches and, among other things, includes 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. 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, 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 and Employment, 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.

Wages - (Reviewer P.42)

-To be considered as wages, the renumeration should arise from a relationship of employer-employee Distinction between Salary and Wages Wages- comes from the Middle English word of wagen -compensation for manual labor, whether, skilled or unskilled, paid at states times and measured by day, week, month and season. -considerable pay for less and lower responsible character of employment Salary- comes from the Latin word of salarium -denotes a higher grades of employment or superior grade of services and implies a position of office -suggestive of higher and important service Significance of Distinction -whether or not the compensation of the employee would be subject to garnishment or attachment -Art. 1708 of the Civil Code exempts the laborers wage from execution, attachment except for debts incurred for food, shelter and clothing and medical attendance. Salary does not fall within this exemption. (Gaa vs CA) Basic pay -regular base pay of the employee. -excludes money received from different concepts like Christmas bonus, and other fringe benefits Facilities -Reviewer Page 43 and44 -If facilities are customarily furnished by the employer, they form part of wages. It must be based on regularity. If the grant is temporary, it does not form part of wages. Ex. Rice ration, housing, recreation facilities, medical treatment to dependents and school facilities, cost of water, light fuel Supplements -Reviewer Page 43 and 45

Ex. Vacation leave pay, overtime pay in excess of what has been required by law, sick, pension and death benefit, profit sharing, family allowances, Christmas bonus and reward for extra output. Criterion for distinction of the benefit -It is not with the kind of item but its purpose. If the purpose is primarily for the employers benefit, it is not considered as facility like transportation allowance, meals given free to crew members, tools of trade articles and services for the conduct of business of the employer. Sales Commission -where the EE relationship exists, sales commission form part of the wage or salary (Philippine Duplicators Inc. vs. NLRC and Songco vs. NLRC) Bonus -Reviewer Page 47-48 -General Rule: not demandable -Exceptions: it is a matter of right if: 1. it is a result of an agreement 2. it is made part of the wages (given in fixed amount without any condition and a company practice by virtue of its long and regular concession) 13th Month Pay -1/2 of the basic salary earned by the employee within a calendar year Basis for the computation of 13th Month Pay -only the basic salary should be considered -does not include cash equivalent of unused vacation and sick leave credits, overtime pay, premium pay for holidays and rest days, night shift, differential pay, holiday pay and cost of living allowances. -overload of pay of teachers is not part of basic salary Who are entitled to 13th month pay 1. All rank and file employees who have rendered at least one year of service 2. Employees who are paid on a piece-work basis 3. Paid a fixed guaranteed wage plus commission 4. Private school teachers (including faculty members of universities and colleges) who have rendered at least one year of service 5. Working in 2 or more private firms

6. Assigned or whose services are terminated before the time for payment of the 13th month pay Employers exempted from 13th Month Pay Law 1. Government 2. Employers already paying their employees a 13th month pay or more in a calendar year or its equivalent 3. Employers of household helpers and persons in the personal service of another 4. Employers who are paid purely on commission, boundary or task basis and those who are paid specific amount for performing specific work except where the workers are paid on a piece-rate basis. 13th month pay should be given not later than Dec. 24 or employer may opt to give of the 13th month pay before the opening of the regular school year and another half before Dec. 24. Payment of 13th month pay of resigned and terminated employees may be demanded by the employee upon the cessation of the employer-employee relationship. Employee may demand all the benefits due him upon the termination of EE relationship. 13th month pay not part of regular wage or basic salary. It is not included in the computation of 13th month pay. 14th month pay is a misnomer. It is called bonus in nature. Chapter II Minimum Wage Rates Art. 99 Regional Minimum Wages Minimum wage rates prescribed by Regional Tripartite Wages and Productivity Board. Basis of Minum Wage -normal working hours not exceeding 8 hours a day Methods employed in fixing minimum wage:

1. Floor-wage method- prescribes a determinate amount added to the statutory minimum wage 2. Salary ceiling method- prescribes wage adjustments only for employees receiving a certain denominated salary ceiling. (Reviewer Page 50)