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G.

Minimum Wages and Wage Fixing Machinery


Reference: Art. 96-119; Omnibus Rules, Book III, Rules VII-VIII

1. Minimum Wage, Art. 99; Consti., Art. XIII, Sec. 3

a. Coverage, Arts. 97 (b) (c) (e), 98; Wage Order No. NCR-21, Sec. 2
Philippine Fisheries Development Authority v. NLRC, 213 SCRA 621 (1992)

b. Rules
1) Definition
Chavez v. NLRC, supra
2) No Work, No Pay (A fair day’s wage for a fair day’s labor)
Aklan Electric Corp., Inc. v. NLRC, 323 SCRA 259 (2000)
3) Equal Pay for Work of Equal Value
International School Alliance of Educators v. Quisumbing, supra
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Bankard Employers Union v. NLRC, 423 SCRA 148 (2004)
4) Form: Agreement for Compensation of Services
Arms Taxi v. NLRC, 219 SCRA 306 (1993)

c. Minimum Wage
1) Determination of Compliance with Minimum Wage
Iran v. NLRC, 289 SCRA 433 (1998)
2) Facilities and Supplements/Allowances
Millares v. NLRC & PICOP, 305 SCRA 500 (1999)
3) Cash Wage/Commission
Songco v. NLRC, 183 SCRA 610 (1990)
Boie Takeda v. De la Serna, 228 SCRA 329 (1993)
Philippine Duplicators v. NLRC, 241 SCRA 380 (1995)
4) Gratuity and Salary/Wages, Difference
Plastic Town Center corp. v. NLRC, 172 SCRA 580 (1989)
5) Effect on Benefits
Davao Fruits Corporation v. Associated Labor Union, 225 SCRA 562 (1993)

2. Wage Fixing Machinery

Reference: Wage Rationalization Act (RA 6727); Art. 120-127; Omnibus Rules, Book III, Rule IX; Wage
Order No. NCR-21 effective Oct. 5, 2017

a. Rationale for Wage Rationalization, RA 6727, Sec. 2

b. Agencies in Wage Fixing Machinery


1) National Wages and Productivity Commission, RA 6727, Sec. 3; Arts. 120, 121, 126
2) Regional Tripartite Wages and Productivity Board, RA 6727, Sec. 3; Arts. 122, 126
Nasipit Lumber Co. v. NLRC, 289 SCRA 667 (1998)

c. Standards/Criteria for Minimum Wage Fixing, RA 6727, Sec. 3; Art. 124

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d. Wage Order, Arts. 123, 124

3) Methods of Fixing
a) Floor Wage method
b) Salary – Ceiling Method
Employers Confederation of the Phil. V. National Wage and Productivity Commission, 201 SCRA 759
(1991)

4) Validity
Cagayan Sugar Milling Co. v. Secretary, DOLE, 284 SCRA 150 (1998)

5) Wage Distortion
Prubankers Association v. Prudential Bank & Trust Co., 302 SCRA 74 (1999)

3. Wage Payment and Protection


a. Form of Payment, Art. 202; Civil Code, Art. 1705; Rule VIII, Secs. 1, 2
Congson v. NLRC, 243 SCRA 260 (1995)
b. Time of Payment, Art. 103, Sec. 3
c. Place of Payment, Art. 104, Sec. 4; See Labor Advisory on Payment of Salaries Thru Automated Teller
Machines (ATM)
d. Person to Pay, Art. 105, Secs. 5, 6
Bermiso v. Escano, Inc., 105 Phil. 231 (1959)

4. Wage Prohibitions
a. Wage Interference in Disposal of Wages, Art. 112; Rule VIII, Sec. 9
b. Wage Deduction, Art. 113; Rule VIII, Sec. 10
Apodaca v. NLRC, 172 SCRA 442 (1989)
Nina Jewelry Manufacturing of Medal Arts, Inc. v. Montecillo, G.R. No. 188169, Nov. 29, 2011
c. Requirement to make Deposits for Loss or Damage, Arts. 114, 115; Rule VIII, Sec. 11
Dentech Manufacturing Corp. NLRC, 172 SCRA 588 (1989)
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Five J Taxi v. NLRC, 235 SCRA 556 (1994)
d. Withholding of Wages, Art. 116; Civil Code, Art. 1706
e. Deduction to Ensure Employment, Art. 117
f. Retaliatory Measures, Art. 118
g. False Reporting, Art. 119; Rule X, Sec. 13
h. Keeping of Employee’s Records in a Place other than the Workplace
South Motorists Enterprises v. Tosoc, 181 SCRA 386 (1990)
i. Garnishment/Execution, Civil Code, Art. 1708
GAA v. Court of Appeals, 140 SCRA 304 (1985)
Special Steel Corp. v. Villareal, 434 SCRA 19 (2004)

5. Work Preference in the Event of Bankruptcy, Art. 110; Book III, Rule VIII, Sec. 7; civil Code, Arts. 1207,
2241 (6), 2242 (3), 2244 (2)
Republic v. Peralta, 150 SCRA 37 (1987)
Manila Banking Corp. v. NLRC, 279 SCRA 602, 621-642 (1997)

6. Wage Recovery/Jurisdiction, arts. 128, 129, 217, 111; Book III, Rule X, Secs. 1-5

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Cirineo Bowling Plaza v. Gerry Sensing, supra
San Miguel Corporation v. Court of Appeals, supra
Guico v. Sec. of Labor, 298 SCRA 667 (1998)

H. Thirteenth Month Pay

1. History of the Law


Dentech Mfg. Corp. v. NLRC, supra

2. Coverage
Archilles Manufacturing Corp. v, NLRC, 244 SCRA 750 (1995)
Ultra Villa Food Haus v. Geniston, 309 SCRA 17 (1999)

3. Rationale, PD 851, Whereas Clauses and LImitations

4. Amount and Date of Payment


a. Basic Wage/Commissions
Boie Takeda v. Dela Serna, Supra
Iran v. NLRC, supra
Honda Philippines Inc. v. Samahan ng Malayang Manggagawa sa Honda, 460 SCRA 186 (2005)
b. Substitute Payment
Framanlis Farms, Inc. v. NLRC, 171 SCRA 87 (1989)
c. 14th Month Pay
Kamaya Port Hotel v. NLRC, 177 SCRA 160 (1989)
d. Diminution
Davao Fruits Corp. v. Associated Labor Unions, supra

I. Bonus

1. Nature
Philippine Duplicators Inc. v. NLRC, 241 SCRA 380 (1995)

2. Definition; When Demandable


Marcos v. NLRC, 248 SCRA 146 (1995)
Business Information Systems and Services, Inc. v. NLRC, 221 SCRA 9 (1993)Philippine Appliance Corp.
v. Court of Appeals, 430 SCRA 525 (2004)
American Wire and Cable Daily Rated Employees Union v. American Wire and Cable Co., Inc., 457 SCRA
684 (2005)

J. Burden of proving payment of monetary claims rest on the employer; ratio: pertinent personnel files,
payrolls, etc. are in the custody of the employer
Jolo’s Kiddie Carts/Fun4Kids v. Caballa, G.R. No. 230682, Nov. 29, 2017
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