MODULE NO.

5
LABOR STANDARDS AND SOCIAL LEGISLATION
Academic year 2020-2021

MODULE SUMMARY
The broad purpose of this third module is to help you understand the different
concepts about wages: Minimum wage rates; Payment of wages; Prohibitions
regarding wages; Wage studies; Wage Agreements; and Wage determination under
Book Three, Title II of the Labor Code.

MODULE AIMS

 To provide student with knowledge and understanding of the technical

definition of the following terms: wage, wage distortion, commission,
facilities, supplements, gratuity, allowance, bonus, 13th month pay and
statutory minimum wage.
 To provide students with knowledge and understanding of the difference
between wage and salary, attributes of wage, other forms of remuneration,
computation of statutory minimum wage, and the mechanics on payment of
wages.
 To provide students with knowledge and understanding on the different
prohibitions regarding wages, worker preference in case of bankruptcy and
wage recovery.

LEARNING OUTCOMES
By the end of the module, students should be able to:
  Demonstrate knowledge and understanding of the attributes of wages,
concepts on payment of wages and the prohibitions regarding wages.
 Explain the technical definition of certain terms relating to Wages in general
and other forms of remuneration.

PERFORMANCE STANDARD
1. The student must be able to answer the guide questions that will be provided.
2. The student must have read all the assigned cases and be able to discuss the
relevant issue of the case and how the Court resolved the issue.

COURSE CONTENT

5.09 Wages
A. In General (See Arts. 97-119, Labor Code; Book III, Rules VII-VIII, Rules to
Implement the Labor Code

 Coverage – Arts. 97 (b), (c) (e), 98

-Phil. Fisheries Development Authority v. NLRC, 213 SCRA 621 (2012)
“Government Agency”
 Wage – Art. 97 (f), Labor Code; Art III, Constitution
- Chavez v. NLRC, 448 SCRA 478 (2005) “Definition”
- Aklan Electric Cooperative, Inc. v. NLRC, 323 SCRA 258 (2000) “Fair
Day Pay”
- Bankard Employers Union v. NLRC, 423 SCRA 148 (2004)
“Discrimination”
- Millares v. NLRC, 305 SCRA 500 (1999) “Facilities and Supplements”
- Iran v. NLRC289 SCRA 433 (1998) “Cash Wage / Commissions”
- Equitable Banking Corp. v. Sadac 490 SCRA 380 (2006) “Wages and
Salary”
- Plastic Town Center Corp. v. NLRC, 172 SCRA 580 (1998) “Gratuity
and Wages”
- Agabon v. NLRC, 422 SCRA 573 (2004) “13th Month Pay”
B. Payment of Wages (See Arts. 102-104, Labor Code, Sec. 7, R.A. No. 6772)

 Form of Payment – Art. 102

- Lopez Sugar Corp. v. Franco, 458 SCRA 515 (2005) “Full Payment”
- Chavez v. NLRC, 448 SCRA 478 (2005) “Payroll Payment”
- Congson v. NLRC, 243 SCRA 260, (1959) “Cash Wage”
 - Karasia, Inc. v. Corono, 437 SCRA 184 (2004) “Payroll Entries”
 Time of Payment – Art. 103
 Place of Payment – Art. 104 (Rel. to Labor Advisory on Payment of
Salaries Thru ATM)
 Direct Payment – Art. 105
 Contractor / Sub-Contractor – Arts. 106-109
C. Prohibition Regarding Wages

 Non-Interference / Disposal of Wages – Art. 112

 Wage Deduction – Arts. 113-117
- Apocada v. NLRC, 172 SCRA 442 (1989) “Wage Deduction”
 Check-off – Art. 113 (b)
- Manila Trading and Supply Co. v. Manila Trading Labor Association, 93
Phil 288 (1953) “Check-off”
 Deposit – Arts. 114-115
- Five J Taxi v. NLRC, 235 SCRA 556 (1994) “Deposit”
 Withholding of Wages – Art. 116; Record Keeping – Art. 119
- Special Steel Corp. v. Villareal, 434 SCRA 19 (2004) “Garnishment /
Attachment”
-South Motorist Enterprises v. Tosoc, 181 SCRA 386 (1990) “Record
Keeping”
D. Other Forms of Remuneration

 Service Charges – Art. 96, Labor Code (Rel to DOLE Department

Order No. 206 Series of 2019)
- Maranaw Hotels, etc. v. NLRC 303 SCRA 540 (1999) “Concept of
Service Charge”
- Ace Navigation Co., Inc. v. Court of Appeals, 338 SCRA 7(2000) “Tips”
 Thirteenth Month Pay (Pres. Decree No. 851)
- Kings of Kings Transport, Inc v. Mamac, 526 SCRA 116 (2007)
“Coverage”
- JPL Marketing Promotions v. Court of Appeals, 463 SCRA 136 (2005)
“Wage Difference”
- Achilles Manufacturing Corp. v. NLRC, 244 SCRA 750 (1995)
“Terminated Employees”
- Honda Phils. Inc. v. Samahan ng Malayang Manggagawa sa Honda,
460 SCRA 186 (2005) “Basic Wage / Commissions”
- Kamaya Farms, Inc. v. NLRC, 177 SCRA 160 (1989) “14th Month Pay”
- Davao Fruits Corp. v. Associated Labor Unions, 225 SCRA 562 (1993)
“Diminution”
 Bonus
- Asian Transunion Corp. v. Court of Appeals, 425 SCRA 478 (2004)
“Management Function”
- American Wire and Cable Daily Rated Employees Union v. American
Wire and Cable Co., Inc. 457 SCRA 684 (2005) “Nature of Bonus / When
Demandable”
 E. Wage Recovery, Liabilities and Work Preference

 Liability of Employer and other Parties (Employer, Independent

Contractor and Sub-contractor and Labor Only Contracting) – Arts.
106-109
- Manila Electric Co. v. Banamira, 463 SCRA 331 (2005) “Liabilities”
 Worker Preference / Bankruptcy – Art. 110, Labor Code; Arts. 1707,
2241, 2242, 2244, New Civil Code
- Baranga v. Asset Privatization Trust, 473 SCRA 690 (2005) “Work
Preference”
- Rubberworld (Phils.), Inc. v. NLRC, 336 SCRA 433 (2000)
“Receivership”
 Wage Recovery and Attorney’s Fees – Arts. 128, 129, 217, 111
- Placewell International, etc. v. Camote 492 SCRAA 761 (2006)
F. Minimum Wages (See Arts. 126-127, Labor Code; Book III, Rule IX, Rules to
Implement the Labor Code; R.A. No. 6727)

 Wages and the Constitution (Art. XIII, Sec. 3)

- Atok Big Wedge Mining Co., Inc. v. Atok Big Wedge Mutual Benefit
Association, 92 Phil. 755 (1953) “Minimum Wage”
- Phil. Apparel Workers Union v. NLRC, 106 SCRA 444 (1981) “Effect of
Inability to Pay”
- People v. Gatchalian, 104 Phil. 664 (1959) “Beneficiaries”
 Agencies for Wage Fixing Machinery (National Wages and
Productivity Commission – Arts. 120, 121, 126; Regional Tripartite
Wages and Productivity Board – Arts. 122, 126)
- Nasipit Lumber Co. v. NLRC, 289 SCRA 339 (2003) “Functions”
 Area Minimum Wages and Criteria – Art. 124
 Wage Order – Arts. 123-124
- Employers Confederation of the Phil. V. National Wages and
Productivity Commission, 201 SCRA 759 (1991) “Methods of Fixing”
- Nasipit Integrated, etc. v. Nasipit, etc. 556 SCRA 150 (1998) “Agency
Authority”
- Cagayan Sugar Milling Co. v. Secretary, 284 SCRA 150 (1998)
“Requirements Validity”
- Lambo v. NLRC, 317 SCRA 420 (1999) “Piece Worker”
 Effect on Benefits – Art. 100
- Arco Metal, etc. v. Samahan, etc. 554 SCRA 110 (2008)

TEACHING AND LEARNING ACTIVITIES

A lecture on the topics covered by the course content will be provided by the
professor and the students are encouraged to participate by asking questions and
providing insights to the topics beings discussed. A consultation hour every class
will be conducted for the students to validate their learning through personal
research on the topics under this module.

ASSESSMENT / TASK
1. A type written answers to the guide questions provided in this module must be
submitted.
2. A type written case digest must be submitted on or before the due date set. (All
given cases in the Course Content of this Module).
3. The assigned student to recite / report on the case must be able to explain the
relevant issues of the case and the Court Ruling.

REFERENCES / RESOURCES

 PRESIDENTIAL DECREE NO. 442 OF 1974, AS AMENDED AND

RENUMBERED
 ANY LABOR LAW BOOKS WITH ANNOTATIONS