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LABSTAN SEPTEMBER 19 [00:38:44-00:58:06] thumbmark as the case may be, at the end of the line opposite

his name where a blank space shall be provided for the


… So if the drive is found to be liable, don’t make him pay 20 thousand, purpose. His signature shall be made in ink or his thumbmark
as that is a replacement cost. Take note, if later on you’re representing placed with the use of the regular stamping ink and pad.
a complainant who damaged equipment. Atty. Bata had handled a
case where the bulldozer fell into a deep ravine. If he damaged a Note: Take particular interest in this.
bulldozer & is then asked to replace it, then he cannot be made to do
so. Chapter V
WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION
Article. 116. Withholding of wages and kickbacks prohibited. It shall Article. 120. Creation of National Wages and Productivity
be unlawful for any person, directly or indirectly, to withhold any Commission. There is hereby created a National Wages and
amount from the wages of a worker or induce him to give up any part Productivity Commission, hereinafter referred to as the Commission,
of his wages by force, stealth, intimidation, threat or by any other which shall be attached to the Department of Labor and Employment
means whatsoever without the worker’s consent. (DOLE) for policy and program coordination. (As amended by
Republic Act No. 6727, June 9, 1989).
Situation: The security agency X is working at is located in Davao City.
His manager assigned him to Don Marcelino, Davao Occidental. Before the passage of R.A. No. 6727 during Marcos’ time, the salaries
Disliking the distance, X asked the manager if he can continue working were increased through presidential decrees. Now, when the Cory
in Davao. The manager agreed, provided that X will give the manager government took over, R.A. No. 6727 was passed. They made National
part of his salary in exchange. Wages and Productivity Commission.

The said agreement is not allowed. There are 2 entities:


1. National Wages and Productivity Commission
Article. 117. Deduction to ensure employment. It shall be unlawful to 2. Regional Tripartite Wages and Productivity Board (RTW –
make any deduction from the wages of any employee for the benefit [Ready to Wear] PB Atty. Bata’s mnemonic)
of the employer or his representative or intermediary as consideration
of a promise of employment or retention in employment. The Regional Tripartite Wages and Productivity Board fixes the
minimum wage.
Article. 118. Retaliatory measures. It shall be unlawful for an  Atty. Bata brought an example of a wage order. Wage Order 20 is
employer to refuse to pay or reduce the wages and benefits, the recent wage order applicable in Region XI. It was signed by
discharge or in any manner discriminate against any employee who Raymundo G. Agravante, Regional Director of DOLE,
has filed any complaint or instituted any proceeding under this Title or
has testified or is about to testify in such proceedings. The said Wage Order:
 Upon the effectivity of the new wage order, the new minimum
wage rate for the sector Non-Agriculture/Industrial/Commercial
Some employers do this. If their working file a complaint for
and Retail/Service employing more than 10 Workers is now
underpayment of wages, the said employers retaliate by not releasing
₱396.00.
the money on time. This is especially common in cases where
 For Retail/Service employing Not More than 10 workers it will be
employees form a union, & the employer gets mad at the employees
₱381.00.
for doing so.
 Agriculture will be ₱391.00.
o Atty. Bata does not understand why the minimum wage of
Article. 119. False reporting. It shall be unlawful for any person to
workers in the agricultural sector is lower, when the needs of
make any statement, report, or record filed or kept pursuant to the
the worker is the same. He proposes that it might be because
provisions of this Code knowing such statement, report or record to
of the lower capacity of the employer to pay the wages.
be false in any material respect.

CURRENT DAILY MINIMUM WAGE RATES


Reminder: These shorter articles – make sure to read them. REGION XI, DAVAO REGION a/
Per Wage Order No. RTWPB-XI-20b/
In the IRR, what are the records the employer must keep? (Effective: 16 August 2018)
Rule X
ADMINISTRATION AND ENFORCEMENT
SECTION. 6. Payrolls. — SECTOR/INDUS MINIMUM WAGES
a. Every employer shall pay his employees by means of payroll TRY
wherein the following information and data shall be Und Under Wage Order No. RB XI-20
individually shown: er in two (2) tranches:
1. length of time to be paid; W. First Tranche – ₱30.00
2. the rate of pay per month, week, day or hours, piece, O. Second Tranche – ₱26.00
etc.; No. Total Increase – ₱56.00
3. the amount due for regular work; RB
4. the amount due for overtime work; XI- Effective Effective
5. deductions made from the wages of the employees; 19 August 16, February 16,
and 2018 2019
6. amount actually paid.
b. Every employee in the payroll shall sign or place his Am New Am New
Mini Mini / Tagum, Panabo, Mati, and the Provinces of Davao del Sur,
oun oun
mu mu Davao del Norte, Davao Oriental, and Compostela Valley.
t of t of
m m
Incr Incr Grants the following increases:
Wag Wag b
eas eas  ₱1,000.00 in cities and first class municipalities
e e /
e e  ₱500.00 in other municipalities
Rate Rate

Non- Issued on 30 October 2017; published at Sun Star Davao on 01


Agriculture/Indu December 2017.
₱37 ₱39
strial/Commerci ₱34
₱30 0.00 ₱26 6.00 POSTED: 22 November 2018
al and 0.0
.00 (340 .00 (370
Retail/Service 0
+30) +26)
employing more There are prior instances where the labor sector refused to sign the
than 10 Workers wage order because they do not agree that it will be the only increase
in the amount of minimum wage. However, since there are only 2 labor
₱36 ₱39 representatives & the majority will sign the wage order, the same will
₱33
₱30 5.00 ₱26 1.00 be approved.
Agriculture 5.0
.00 (335 .00 (365
0
+30) +26) Article. 121. Powers and functions of the Commission. The
Commission shall have the following powers and functions:
Retail/Service ₱35 ₱38
₱32
employing Not ₱30 5.00 ₱26 1.00 a. To act as the national consultative and advisory body to the
5.0
More than 10 .00 (325 .00 (355 President of the Philippines and Congress on matters relating
0
workers +30) +26) to wages, incomes and productivity;
 
b. To formulate policies and guidelines on wages, incomes and
Covers the Cities of Davao, Digos, Island Garden of Samal, productivity improvement at the enterprise, industry and
Tagum, Panabo, Mati, and the Provinces of Davao del Sur, national levels;
a/
Davao del Norte, Davao Oriental, and Compostela Valley.
  c. To prescribe rules and guidelines for the determination of
appropriate minimum wage and productivity measures at the
Provides the following: regional, provincial, or industry levels;
 ₱56.00/day basic wage increase to be given in
two (2) tranches: d. To review regional wage levels set by the Regional Tripartite
b/ Wages and Productivity Boards to determine if these are in
 ₱30.00 effective August 16, 2018
accordance with prescribed guidelines and national
 ₱26.00 effective February 16, 2019
development plans;
 

e. To undertake studies, researches and surveys necessary for


Issued on 27 June 2018; published at Sun Star Davao on 01
the attainment of its functions and objectives, and to collect
August 2018.
and compile data and periodically disseminate information on
UPDATED: 22 November 2018 wages and productivity and other related information,
including, but not limited to, employment, cost-of-living, labor
costs, investments and returns;
MINIMUM WAGE RATES FOR DOMESTIC WORKERS
  f. To review plans and programs of the Regional Tripartite
CURRENT MINIMUM WAGE RATES FOR DOMESTIC WORKERS Wages and Productivity Boards to determine whether these
REGION XI, Davao Regiona/ are consistent with national development plans;
Per Wage Order No. RBXI-DW-01b/
(Effective December 16, 2017) g. To exercise technical and administrative supervision over the
Regional Tripartite Wages and Productivity Boards;
New
Minimum
Minimum h. To call, from time to time, a national tripartite conference of
Wage Amount
Wage representatives of government, workers and employers for
Area/Location under of
Rate the consideration of measures to promote wage
R.A. No. Increase
upon rationalization and productivity; and
10361
effectivity
i. To exercise such powers and functions as may be necessary
Cities and first to implement this Act.
class ₱2,000.00 ₱1,000.00 ₱3,000.00
municipalities The Commission shall be composed of the Secretary of Labor and
Employment as ex-officio chairman, the Director-General of the
Other National Economic and Development Authority (NEDA) as ex-
₱1,500.00 ₱500.00 ₱2,000.00 officio vice-chairman, and two (2) members each from workers’
municipalities
and employers’ sectors who shall be appointed by the President of
a
Covers the Cities of Davao, Digos, Island Garden of Samal, the Philippines upon 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, Each Regional Board shall be composed of the Regional Director of
and who shall serve for a term of five (5) years. The Executive the Department of Labor and Employment as chairman, the
Director of the Commission shall also be a member of the Regional Directors of the National Economic and Development
Commission. Authority and the Department of Trade and Industry as vice-
chairmen and two (2) members each from workers’ and employers’
The Commission shall be assisted by a Secretariat to be headed by sectors who shall be appointed by the President of the Philippines,
an Executive Director and two (2) Deputy Directors, who shall be upon the recommendation of the Secretary of Labor and
appointed by the President of the Philippines, upon the Employment, to be made on the basis of the list of nominees
recommendation of the Secretary of Labor and Employment. submitted by the workers’ and employers’ sectors, respectively,
and who shall serve for a term of five (5) years.
The Executive Director shall have the same rank, salary, benefits
and other emoluments as that of a Department Assistant Each Regional Board to be headed by its chairman shall be
Secretary, while the Deputy Directors shall have the same rank, assisted by a Secretariat. (As amended by Republic Act No. 6727,
salary, benefits and other emoluments as that of a Bureau June 9, 1989)
Director. The members of the Commission representing labor and
management shall have the same rank, emoluments, allowances So, it is the RTWPB who fixes the amount of the minimum wage
and other benefits as those prescribed by law for labor and subject to the rules & regulations promulgated by the NWCP.
management representatives in the Employees’ Compensation
Commission. (As amended by Republic Act No. 6727, June 9, The IRR of the wage orders shall be approved by the Secretary of Labor
1989)
as the Chairman of the National Wages & Productivity Board.

QN: What was the purpose for which the RTWB was created?
A: The intention was to rationalize wages, first, by providing for full-
Article. 122. Creation of Regional Tripartite Wages and
time boards to police wages round-the-clock, and second, by giving the
Productivity Boards. There is hereby created Regional Tripartite
boards enough powers to achieve this objective.
Wages and Productivity Boards, hereinafter referred to as Regional
Boards, in all regions, including autonomous regions as may be
established by law. The Commission shall determine the If you are following the news, you might be aware that some
offices/headquarters of the respective Regional Boards. members of the labor sector wanted PRRD to increase the wage
salary. He replied that we already have a law for that; we already
The Regional Boards shall have the following powers and have the RTWPD. If it’s too small, then go to Congress. There is a
functions in their respective territorial jurisdictions: mechanic regarding how increase the minimum wage.

a. To develop plans, programs and projects relative to Article. 123. Wage Order. Whenever conditions in the region so
wages, incomes and productivity improvement for their warrant, the Regional Board shall investigate and study all
respective regions; pertinent facts; and based on the standards and criteria herein
prescribed, shall proceed to determine whether a Wage Order
b. To determine and fix minimum wage rates applicable in should be issued. Any such Wage Order shall take effect after
their regions, provinces or industries therein and to fifteen (15) days from its complete publication in at least one (1)
issue the corresponding wage orders, subject to newspaper of general circulation in the region.
guidelines issued by the Commission; In the performance of its wage-determining functions, the
Regional Board shall conduct public hearings/consultations, giving
c. To undertake studies, researches, and surveys notices to employees’ and employers’ groups, provincial, city and
necessary for the attainment of their functions, municipal officials and other interested parties.
objectives and programs, and to collect and compile
data on wages, incomes, productivity and other related Any party aggrieved by the Wage Order issued by the Regional
information and periodically disseminate the same; Board may appeal such order to the Commission within ten (10)
calendar days from the publication of such order. It shall be
d. To coordinate with the other Regional Boards as may be mandatory for the Commission to decide such appeal within sixty
necessary to attain the policy and intention of this Code; (60) calendar days from the filing thereof.

e. To receive, process and act on applications for The filing of the appeal does not stay the order unless the person
exemption from prescribed wage rates as may be appealing such order shall file with the Commission, an
provided by law or any Wage Order; and undertaking with a surety or sureties satisfactory to the
Commission for the payment to the employees affected by the
f. To exercise such other powers and functions as may be order of the corresponding increase, in the event such order is
necessary to carry out their mandate under this Code. affirmed. (As amended by Republic Act No. 6727, June 9, 1989)

Implementation of the plans, programs, and projects of the Note: Read Article 123 as the procedure is here.
Regional Boards referred to in the second paragraph, letter (a) of
this Article, shall be through the respective regional offices of the Wage Fixing Procedure
Department of Labor and Employment within their territorial To conduct public hearings/consultations, giving notices to
jurisdiction; Provided, however, That the Regional Boards shall employees’ and employers’ groups, provincial, city and municipal
have technical supervision over the regional office of the officials and other interested parties.
Department of Labor and Employment with respect to the
implementation of said plans, programs and projects.
Issuance of Wage Order. — Within thirty (30) days necessary Implementing Rules and Regulations,
after conclusion of the last hearing, the Board not later than ten (10) days from the issuance of a
shall decide on the merits of the petition, and Wage Order.1
where appropriate, issue a wage order
establishing the regional minimum wage rates to The Secretary of Labor and Employment shall act
be paid by employers, which shall in no case be on the Implementing Rules within a period of
lower than the applicable statutory minimum wage twenty (20) days from receipt of the said
rates. The Wage Order may include wages by Implementing Rules by the Commission. Once
industry, province or locality as may be deemed approved, the Board shall cause the publication of
necessary by the said Board: Provided, however, the Implementing Rules and Regulations in at least
That such wage rates shall not be lower than the one (1) newspaper of general circulation in the
regional minimum wage rates unless expressly region.
specified in the Wage Order. The Board shall
furnish the National Wages and Productivity Review of Wage Order. — The Commission may
Commission a copy of the decision on the petition review the Wage Order issued by the Board motu
or the Wage Order. proprio or upon appeal. An appeal may be filed on
the following grounds:
Contents of Wage Order. — A Wage Order shall
specify the region, province or industry to which (1) Non-conformity with prescribed
the minimum wage rates prescribed under the guidelines and/or procedure;
Order shall apply and provide exemptions, if any,
subject to guidelines issued by the Commission. (2) Questions of law

Wage orders are applicable throughout the region where the RTWPD is (3) Grave abuse of discretion.
located. Still, employers seldom participate in the deliberation of wage
orders. The appeal does not stay the order unless the
 So, the minimum wage is now ₱396.00. Wage orders are usually appellant files adequate surety.
released on May 1. Before that, there will be consultations & it
might be increased to ₱425.00. 1. Atty. Bata does not understand why it is the Secretary of
 While the amount is negligible to you, for employers this is a big Labor who has to make the IRR, when if you examine the IRR,
amount as they will have far-reaching implications. There is a it merely reiterates what is already in the wage order. He
domino effect in all expenses. Regardless of the increase of the thinks that it is another form of control being exercised over
salary, the productivity might still not increase while labor costs the provinces.
do. It is hard to balance with increasing the wages of the workers. 2. In Azucena’s book, he explains more eloquently that RTWPB
approved the wage order & it is not the NWPC.
Atty. Bata is yet to see an appeal regarding wage order increases. As a
labor lawyer, he is also obliged to monitor the activities of the QN: Distinguish the power of the NWPC & the RTWPB.
government agencies involved in their cases. Still, he has never been A: The answer is above.
aware of an appeal.
Take note:
Frequency of Wage Order. — Any Wage Order
issued by the Board may not be disturbed for a
period of twelve (12) months from its effectivity,
and no petition for wage increase shall be
entertained within the said period. In the event,
however, that supervening conditions, such as
extraordinary increases in prices of petroleum
products and basic goods/services, demand a
review of the minimum wage rates as determined
by the Board and confirmed by the Commission,
the Board shall proceed to exercise its wage fixing
function even before the expiration of the said
period.

Effectivity of Wage Order. — A Wage Order shall


take effect fifteen (15) days after its publication in
at least one (1) newspaper of general circulation in
the region.

Implementing Rules/Regulations of the Wage


Order. — The Board shall prepare, for approval of
the Secretary of Labor and Employment, upon
recommendation of the Commission, the

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