TOPIC 2: BASIC PRINCIPLES livelihood income for day to day

Rights of the workers in relation to labor sustenance.

standards. CONSEQUENCES
 PH Constitution provides for the SOCIAL  Promote unity in
rights of workers in general. the family
CONSTITUTIONAL RIGHTS OF  Promote
WORKERS IN GENERAL togetherness in
1. Right of workers to just and the family because
humane conditions of work it will have means
2. Security of tenure to support
3. Collective bargaining and POLITICAL  Stability of the
negotiation society will depend
4. Self-organization upon the citizen’s
5. Living wage jobs whether they
6. Peaceful/lawful concerted activities could get
7. Participate in policy and decision- themselves
making process employed.
a. JMM: Check which are the  Chaos in the
rights of workers in relation society because of
to labor standards the commission of
RIGHTS OF WORKERS IN RELATION crimes
TO LABOR STANDARDS ARE: ECONOMIC  Financial stability
1. Human conditions encourages
2. Living wage income
3. Just share in the fruits of
production SOURCES OF LABOR STANDARDS
1. LAW ITSELF – Labor Code PD 442
2 ASPECTS OF LABOR STANDARDS o It’s the law that provides
1. Protective – protect health, safety Labor standards
and well-being of the workers 2. ADMINISTRATIVE ORDERS
2. Meliorative – expands the flow of o Issued by DOLE
income o Source of protective and
Purpose: Remedial and Humanitarian
meliorative rights
Support
o Various department orders,
- Provide minimal conditions of the
it prescribes guidelines
employee
which protects workers
Impact: Improve the condition of the
because without such it
workers and their families.
would be an invitation for
- Improves the working conditions of
abuse.
the working man by disallowing
3. EMPLOYMENT CONTRACTS
from regulating the worker to work
o Provides for monthly
beyond the allowed minimum
hours of work, unless there is a compensation, benefits,
valid and justifiable cause or allowances
reasons to do so. o Meliorative standards in
- Provides for compensation on rest form of employee benefits
days, holidays, additional 4. COMPANY POLICY
compensation o Statements or declarations
Essence: It will bring about social, made by employer usually
economic, and political consequences. in written form
Without LABOR STANDARDS, families will o May be found in company
be broken because of poverty because memos, handbooks,
they will no longer have the means of announced unilaterally and
 forms part, even if there is Employer makes an offer of
no express consent from employment. The offer is accepted by
the worker. the employee unconditionally then there
 May be found in is a meeting of minds and essential
written manuals. Ex. elements of a contract is perfected.
There is a written Because the contract is consensual in
policy that every nature. Perfected by mere consent.
December the There is no need for written contract if
worker will be deemed perfected by the consent. In
entitled to 1 sack of some cases, contract of employment is
rice. done orally or verbally. There is nothing
 IF there is no wrong with that as long as there is a
written policy, it will meeting of minds and the essential
be company practice. elements of the contract, it is deemed
But remember for it perfected. Of course, in an employment
to constitute a contract, once the offer is accepted then
practice, there must the terms and conditions of employment
be a proof that an are placed in writing. Just need
employer’s conduct formality because perfection of the
or behavior covered contract will arise even before the
it in a period of time. formalization of the contract of
NOT simply just a 1 employment or before putting it in
time grant to writing.
constitue company
practice. Dapat IS A CONTRACT OF EMPLOYMENT
matagal and CONSIDERED A CONTRACT OF
customarily provided ADHESION?
by the employer  There have been cases that is how
even though not the contract of employment is
written. described by the SC. As I have
o Implied acceptance – if said, the offer of employment
employee continues to work comes from the employer. And,
5. COMPANY PRACTICES only thing an employee has to do is
o Refers to customary or to: agree, accept and affix the
established mode or signature.
conduct of the employee  Similar to an insurance policy
fixing the benefits of the contract, for example, a contract of
employee employment is a contract of
o Unlike practices, this is a adhesion.
non-verbal pattern of  In case of doubt – apply the LC
conduct of an employer provision that it should be decided
over a period of time in favor of the employee.
o Repeated practices by the Notwithstanding, that the labor
employer code says doubt in the
 Ex. Worker got sick interpretation and employment and
and still got paid by doubt in the implementation of the
the employer, such law and the IRR, this principle shall
that, this has been also apply with regards to the
done already by the interpretation and implementation
employer over a long of a contract of employment.
period of time. APPLY BY ANALOGY
PERFECTION OF AN EMPLOYMENT  Rule on the construction of the
CONTRACT labor law – applicable to:
 o Contracts or agreements of - Know who exercises it. Employer or
employment employee?
o Collective bargaining - In selecting and engaging, does
o Evidences presented in the the employer have the power to
labor proceeding prescribe the qualifications for a
 BACK TO THE RULE: job? Is that a management
IN FAVOR OF prerogative? Can that be exercise
WORKER BECAUSE by the employer absolutely? Or are
CAPITAL AND LABOR there limitations provided by the
DO NOT STAND IN Labor Code and other laws
EQUAL FOOTING. Payment of wages
DOES THE PERFECTION OF A - When you speak of wages are you
CONTRACT OF EMPLOYMENT GIVES referring to a salary? Are they one
RISE TO THE E-E RELATIONSHIP? or the same? Is that for services
 NO. It does not give rise. In rendered or for labor rendered or
perfection of the employment payment of results of one’s own
contract, we apply the civil law. In labor?
determining the E-E relationship Power of discipline/dismissal
we have the 4-fold test. Perfection - Who exercises? Is it absolute or
of an employment contract is not regulated by law? Is it not you
the same to the commencement of must comply with substantive and
the E-E relationship. The E-E procedural due process before you
relationship shall commence once can terminate employment? Does
there is a fulfillment of the 4-FOLD that constitute a regulation or
TEST. Perfection of the contract prerogative to discipline or dismiss
only precedes to the E-E orders?
relationship. Power of control
 FOUR-FOLD TEST includes: - Is that the most conclusive test in
o Selection and engagement determining that an employer-
o Payment of wages employee relationship exists? And
o Power of discipline the power of exercising control is
that the means and manner of
o Power of control
performing once job or service or is
IS IT POSSIBLE THAT UPON
that in the results? Or is it both?
PERFECTION THE E-E RELATIONSHIP
TN: in those cases as when there is no
WILL COMMENCE?
written contract, and several positions –
 There is a possibility if it happens
what would be the better tests? The four-
simultaneously. Wherein you are
fold test or the economic-reality test.
offered a job, right then and there
What is the so called economic test? What
you started working and then get
evidence is needed to establish that the E-
paid compensation. And you are
E exists?
subject to control and at the same
WHY IS IT IMPORTANT?
time you are subjected to discipline
because in LS, it will apply only in an
then in this situation you could say
employment relationship. (Read each of
that there is a perfection of an
the assigned cases on this topic because
employment contract which
its very important). LABOR STANDARDS
coincides with the employer-
CANNOT APPLY WHEN THERE IS AN
employee relationship.
ABSENCE OF E-E RELATIONSHIP
POINT: They are not the same.
Very popular topic in the BAR:
FOUR-FOLD TEST
 There is a basketball court, a
 Not found in the Labor Code.
referee and a player. When the
 Initiated by SC in various cases.
referee says foul. Is there an E-E
Selection and engagement
 Relationship between basketball
association and referee?
 In an insurance company?
Insurance agents paid by way of
commission. Real estate agents?
Doctors? Doctor specialists?
Also determine the characteristics of
employer-employee relationship to
distinguish it from contractorship. You go
to a clinic in ayala – look for a dentist – u
selected the dentist – pay the dentists – is
there an E-E relationship? Or independent
contractorship?
You go to a law office to consult matters
or notarized is there an E-E relationship?
Or independent contractorship?
What are the characteristics of
employment? Is that economic
dependence by one over the other? Is
there a subordination in a work
relationship? Is that the one who offers
services? Is that subject to control with
regards to the means and manner of
performing his job? Is it independent RS?
Or E-E RS?
A professional, to whom does it offer his
services? Is it to a particular person like
an employment relationship? Or does it
offer its services to the public? In an
employment relationship does the worker
possess any skills, experience or is it more
in an ICRS? What payment of services do
you pay for an ICRS?
MAKE YOUR OWN OUTLINE ON THE
CHARACTERISTICS OF AN ICRS AND EERS
TN: DO on Talents with regards to
working conditions of television industry
because the workers are different from
talents. If this is the case will the EERS
exists? Or will it be governed by the Civil
Law and nor Labor Code.
-In some cases employer deny
relationship because the EERS carries
more duties and responsibilities as well as
obligations in the labor laws.
BTW-also determine or distinguished the
principal agent relationship.
TOPIC 3: HIRING OF EMPLOYEES
 The first element of the 4-fold test
is selection of employees.
TN: not conclusive but only
indicative of the
relationship.
 Mere fact that a person is
selected and engage, he
may or may not be an
employee. It will have to
depend on the other
application of the 4-fold
test.
 Selection and Engagement of
employees
 Power or right to hire
 Not absolute
 In hiring, an employee is
simply a management
prerogative, it is not found
in the labor code because
such right is inherent in the
management.
 Not absolute and subject to
limitations provided by law.
LIMITATIONS PROVIDED BY LAW
1. LIMITATIONS IN THE LABOR
CODE OF THE POWER TO HIRE
PROHIBITION ON STIPULATION
AGAINST MARRIAGE
 Art. 134 of the Labor Code
 A woman has the right to give or
not get married at all.
 Employer can’t require a woman to
get married because this
stipulation is contrary to public
policy.
 Non-marriage or common law
relationship is an illegal
relationship.
Basis: It is the State who cares in having
marriage. The State promotes marriage
before having a family. If we will allow
stipulation against marriage, then we will
have a society where women will have
partners but without the benefit of marriage.
We will have a situation where what exists
is not a marriage relationship but a common
law relationship. But so far as the law is
concerned, the State has to be consistent to
its policy that considers marriage as an
inviolable social institution. Therefore, the
State encourages couples to get married. If
you allowed employers to impose that 7. Hunting, trapping, and related
stipulation, women will not have the services
opportunity to march at that red carpet and 8. Manufacturing of alcoholic
wear the wedding gown. beverages, tobacco
9. Security and investigation

UNFAIR LABOR PRACTICES

 Employer is prohibited from
requiring a person that an
employee shall not join a labor 2. SPECIAL LAWS
organization.  ANTI SEXUAL HARRASSMENT
 Imposition is contrary to public ACT (RA 7877)
policy, and against the constitution o Employer cannot ask special
because the Constitution favor as a condition of
guarantees every worker’s right to employment if such
self-organization which includes condition is provided then
the right to form, join, or resist to that would be illegal.
a labor organization. o This law carries criminal
liability.
PROHIBITION AGAINST CHILD  MAGNA CARTA FOR DISABLED
EMPLOYMENT BELOW 18 PERSON (RA 7277) SEC 32
o Employee cannot
TN: prohibition is only insofar as the discriminate into hiring a
hazardous workplaces. qualified disabled person by
reason of his disability.
General rule: No children below 15 years o Emphasis on the qualified
old shall be employed disabled person.
 Limitation  PHILIPPINE AIDS CONTROL
 Violation constitutes criminal TEST (RA 8504)
liability of the employer o Employer cannot
 Children can only be employed discriminate into hiring
provided that the system is not based on the actual
hazardous in nature. perceived or suspected HIV
Exceptions: status of an individual.
a. When he works directly under the  RESPONSIBLE PARENTHOOD
sole responsibility of his parents or AND THE REPUBLIC HEALTH
guardian and employment does not ACT (RA 10354)
interfere with his schooling. o An employer is prohibited
b. Employed for such number of from suggesting, regulating,
hours and such period of days or causing any applicant to
determined by SOLE. submit himself to
c. Not hazardous or deleterious in sterilization or use of
nature modern methods of family
planning or not use such
DO 149-16 provides for hazardous methods as a condition of
workplaces. employment or deprivation
INDUSTRIAL CLASSIFICATIONS: of employment benefits.
1. Mining and quarrying o Employer cannot violate the
2. Construction woman’s right to her status
3. Transportation and storage by violating this particular
4. Water supply law
5. Forestry and logging
6. Fishing and aquaculture
  Ex. In a catholic
establishment you
cannot tell your
employees to go out
and multiply, you
cannot suggest,
cause, or deny such
methods.
o The number of children
should not be a ground of
non-hiring. Questioning an
applicant how many
children is not allowed
because the employer may
deny you because of the
number of your children.
o Employer is also prohibited
from asking whether you
are pregnant or not as a
condition of an employment
or a termination of
employment
o JMM: very important to
document consent forms
unless it is or are the
grounds which are
authorized by law.
 EXPANDED MATERNITY LEAVE
ACT – SSS LAW (RA 11210)
o Prohibition of employment
of a woman in order to not
provide for the benefits
under the law, are
restrictions and limitations
to the right to hire.
TOPIC 4: WAGES AND WAGE FIXING
Under the Labor Code, does it require the
employer to compensate the employee for
his services or labor rendered? YES
It would be contrary to public policy if an
employee works for an employer without
being compensated.
WAGES
- Art. 97 of the Labor Code defines
Wages
- Basically, when you speak of
wages, we refer to the
remuneration for the services
rendered. It includes the fair and
reasonable value of facilities as
may be determined by the Sec. of
Labor.
- Wages do not only include the cash
component but also the facilities.
Are WAGES and SALARY the same?
That issue has been settled by the SC in
one case. The 2006 case of Equitable
Bank Corporation. The SC emphasized for
the purposes of the Labor Code, the
distinction between Salary and Wage is
merely semantics. Both refer to one and
the same meaning. That is a reward or
recompense for services performed.
Separation pay- cash remuneration for
services rendered while still employed
until severance of his employment
Salary and wage can be used
interchangeably. If you want to make a
distinction between the two, we have Art.
1708 of the Civil Code which exempts the
laborer’s wages from execution or
attachment except for debts incurred for
food, shelter, clothing and medical
attendance.
In the old case of Gaa, way back in 1985,
the SC had the occasion to limit the
exemption from execution and
garnishment the laborer’s wages. That is
where the distinction matters.
For academic discussion, wages refer to
compensation for manual labor, skilled or
unskilled. On the other hand, salary
denotes a higher grade of employment
like that of white-collar job workers from
that of blue-collar job workers.
Wages is not simply limited to the cash
component. It also includes the fair and
reasonable value of the facilities because
the law allows the employer to deduct the
value of the facilities from the employee’s
wage to determine compliance with the
existing laws regarding payment of
minimum wages.
Are facilities the same as
supplement?
NO, supplements are different and refer to
extra remuneration or special privileges or
benefits given to or received by the
laborer over and above his earnings and
wages. Such as overtime, premium pay
etc.
Under the Labor Code, when you speak of
supplements, they are not deductible.
What are deductible are the facilities.
There are cases decided by the SC where
the court was confronted with several
issues whether certain provisions like
board and lodging, food allowance
provided by the employer to the workers,
will qualify as facilities or supplement. If
they are found to be part of the facilities,
they can be considered part and parcel of
the employee’s wage for purposes of
determining compliance with the
prescribed daily minimum wage.
Some of these cases were resolved by the
court in 2010, in the case of SIP Good
house, 2011 –SNL International Table
Specialist. Such an issue cannot be
avoided especially if the employers
provide these provisions to their workers.
What is the real test? The SC came up
with the PURPOSE TEST. The giving of
these articles or goods by the employer to
the workers are intended primarily for the
benefit of the workers and that is
primarily the purpose under the purpose
test. Then, these goods or articles may
qualify as facilities.
The mere fact that they qualify as facilities
does not necessarily mean that they are
deductible. For facilities to be deductible
there are 3 requisites prescribed by
existing DOLE regulations to make these
facilities deductible.
The 2013 Department Order 126-13
entitled “Revised Guidelines on the
Conduct of Facility Evaluation”.
The DOLE is telling the employers that
when you provide your employees with
articles, goods, and services, the
employer while in the exercise of his
management prerogative can fix a value
of this articles, goods, and services, it is
much better if the employer goes through
the Facility Evaluation. If the facility
evaluation that the amount fixed by the
employer is fair and reasonable then the
employer will not incur any liability.
Ex. the employer provides certain meals,
but the meals are fixed by the employer
unilaterally without a facility evaluation.
Like at P 60 but the fair and reasonable
value had it gone through a facility
evaluation is only P40, then that would in
effect expose the employer to possible
liability for the wage difference. The
employer has liability in case he
overvalues the articles, goods, and
services it provides the workers.
The DOLE has a system in getting the
facility evaluation order. You can find the
procedure under the mentioned
Department Order. For the purposes of
your review, you may want to recall that
when you speak of facility evaluation- it
refers to the evaluation conducted by the
Regional Tripartite Wages and Productivity
Board to determine the fair and
reasonable value of facilities furnished by
the employer to his employees.
It is not DOLE who conducts the
evaluation. It is the RTWPB. The RTWPB
is a different organization created
under the Wage Rationalization Act.
This D.O. governs the conduct of facility
evaluation by the RTWPB of facilities
provide by the employer to the workers
excluding supplements. Supplements
cannot be the subject of evaluation by the
RTWPB because they are not deductible
from the employee’s wage.
The D.O. mentioned will give you a clear
illustration and example of what is meant
by facilities. When you speak of facilities,
it refers to articles, goods, services,
provided by the employer for the benefit
of the employee or his/her family. Ex.
meals, housing, fuel, electricity, gas, for
personal use of the employee. There are
also facilities such as transportation
furnished by the employer to the
employee between work and home where
travel time does not constitute
compensable hours work. Other articles
and services given primarily for the
benefit of the employee. The
enumeration under the D.O. is not
exclusive.
PURPOSE TEST- used to see if the articles
or services qualify as facilities or not
PROCESS INVOLVED IN FACILITY
EVALUATION
1. File an application for facility
evaluation with the RTWPB having
jurisdiction over the workplace
WHO MAY FILE? A union,
individual worker, order or
manager of an establishment
 If the articles and services are - The D.O. provides for the
provided for by the employer for enforcement power of the Sec. of
the first time, the RTWPB requires DOLE under Art. 128 of the Labor
that before the introduction of the Code. The Regional Director of the
proposed facilities, an application DOLE may also exercise the
must be filed with them. visitorial enforcement power.
When articles and services are
If before the passage of this provided by the employer and they
department order, the employer qualify as facilities, does it
has been providing their employees automatically mean that they are
with meals, housing for dwelling deductible from the employees’
purposes, then the application may wages?
be filed anytime. - NO, not necessarily. They are
only deductible form the
What is the end result of such employees’ wages if there are
application? compliance with the three
- The Regional Director of DOLE can requisites provided by the rules.
issue a facility evaluation order. REQUISITES:
You file the application to the
RTWPB, but the officer 1. The facility subject of
authorized to issue a facility valuation are customarily
evaluation order is the Regional furnished by the employer
Director of DOLE. - If the articles or goods provided
- If the parties affected are not by the employer primarily for the
happy with the facility evaluation workers’ benefit are customarily
order, the department order also furnished by the employer
provides for an appeal process. You - customary- has been given for a
can appeal to the National Wages period of time, consistently, and
and Productivity Commission. The deliberately
appeal will never stay the order
issued by the Regional Director of 2. The deductibility value of
DOLE. the facilities must have
- If there is a facility evaluation been voluntarily accepted
order, it will be effective until it is by the employee.
revoked or suspended, revised, or - If the employer, in providing
reviewed by the RTWPB. articles and services to the
workers, have fixed a value of
2. The rule requires that when there these facilities, there must be proof
is a facility evaluation order, the that the workers concerned
employers must post on the must have voluntarily accepted
bulletin board or in a in writing the deductibility of
conspicuous place the facility the value of the facilities.
evaluation order and submit proof Without this requirement, then the
of posting to the RTWPB. facilities cannot be deducted from
the employees’ wage and cannot
How does the law ensure that be considered part and parcel of
the employer will faithfully the workers’ wages.
comply, that the workers 3. The facilities must be
involved would be able to know charged at fair and
whether the employer’s reasonable value
compliant? - If the employer provides the
workers articles, goods and
services, and the employer has
 overvalued these facilities and
consider them deductible from the
employees’ wage, then the
employer will assume the risk
(if it turns out that the value is not
fair and reasonable) the employer
will have to answer or be held
liable for the difference of what
should’ve been the fair and
reasonable values for these
facilities.
- The remedy of the employer or
worker would just be to file a
complaint against the employer for
overvaluing the facilities.
- It is much safer for the employer
to secure a facility evaluation
order.
PART 2 MODULE 4
The definition of wages is found in Art. 97
of the Labor Code. In that definition, aside
from what it means, it also includes the
methods of fixing compensation. When
the employer pays the worker his wages,
the law also allows the employer
depending on the circumstances, on how
to pay his workers. This is what is known
as methods of fixing compensation.
Under the Labor Code, we have payment
based on time, job or task, based on pace
rate, based on commission. The
enumeration of the methods is not
exclusive. There are also other methods
such as payment based on boundary
which is very prevalent in the employment
of taxi drivers. We also have another
method applicable to drivers and
conductors in public utility transport
industry. Under existing Department
regulations, they may be paid partly fixed
and partly performance based.
The employer is not at liberty to choose
any of these methods. The method must
be appropriate and applicable depending
on the type of business or industry that
the employer belongs to.
When you refer to payment based on time
or a worker who is paid based on time,
once the agreed filed of work is completed
the compensation is earned and becomes
due regardless of the result.
Under the L.C., hours of work it refers to
all the time that an employee is required
to be on duty at the prescribed workplace.
If you are a bank teller, you are required
by the bank to be on duty from 9AM to
4PM. The whole hours from 9-4 excluding
the 1 hour meal period shall be considered
as hours work. In that situation, the
employer can pay you based on time.
Even if there are no bank clients from 9-
11, if you are paid based on time at the
end of your work schedule, the
compensation is already deemed earned,
whether you’ve accomplished anything or
not.
If you pay your workers based on time,
the existing DOLE regulations would
classify you into two:
 Monthly paid worker
 Daily paid worker
It will now depend on the divisor used by
the employer in arriving to the estimated
equivalent monthly rate to determine if
you are considered as a monthly paid
worker or a daily paid worker. Do not
confuse yourself with the frequency of
payment. Frequency has nothing to do in
determining whether the worker paid on
time is monthly or daily paid worker. You
have to look at the devisor used.
For monthly paid workers, you are
supposed to be paid 365 days in a year.
The divisor used is 365. You multiply
the daily rate with 365 divided by 12 and
you come up with the estimated
equivalent monthly rate of the employee.
A daily paid worker is paid for the day’s
actual work except when it is a regular
holiday. Although he doesn’t work, he gets
paid with what we call holiday pay. There
are diff. divisors used.
Example (daily paid worker)
- The establishment operates from
M-Sat. and there is no work on
Sunday, the divisor used is 313.
You multiply 313 with the daily
rate and divide it by 12. You come
up with the estimated equivalent
monthly rate of the worker.
- The establishment operates from
M-F only. No work on Sat. and
Sunday. The recommended divisor
is 261.
The existing handbook on statutory
workers’ wages will guide you on the diff.
divisors. There is a breakdown of theses
divisors. The breakdown will tell you how
many days consist the ordinary working
days, how many days are paid regular
days and how many days are paid special
days. There is a breakdown provided
under the handbook of statutory
workers’ wages issued by DOLE.
If you are a daily paid worker, the
principle of “no work, no pay” will
generally apply. This is very relevant
because if you are a daily paid worker, for
days you don’t render work you don’t get
paid unless you are able and ready to
work but you were illegally suspended,
locked out, or dismissed. The principle of
“No Work, No Pay” is very relevant to
daily paid workers especially with this
pandemic situation. When certain
establishments were not allowed to
operate during the ECQ, since it is neither
the fault of the employer or employee, the
principle of ‘no work, no pay’ will apply
and each pf the parties will have to bear
his losses. The employer cannot operate,
he suffers loss and the employee cannot
report to work and he doesn’t earn his
wages. Pantay lng yon.
If you look at the cases decided by the
SC, the 2007 case of Leyte Electric
Cooperative, the 1995 case of Wellington
Investment, the 2006 case of Arellano
University Workers’ Union, these case use
different divisors. In coming up with the
equivalent monthly rate of their worker,
the applicability of the right divisor is very
important. Because if you use the wrong
divisor, it will turn out that you may be
underpaying your workers which will
result to a possible liability on the part of
the employer.
There is also a case involving monthly
paid workers where the divisor used is
365 in paying the workers and decided to
revert into a lesser divisor. There was an
issue whether that is allowed by law. In
the labor code, there is a principle against
the diminution of benefits, so when you
change the divisor it will also affect the
monthly rate of the worker. If it results to
the underpayment of the worker, it will
give rise to a cause of action on the part
of the employee against the employer.
Does the principle of “No Work, No
Pay” apply to monthly paid workers?
Yes, in the 2004 case of ODANGO, the
SC was quite emphatic in enunciating that
the principle of ‘no work, no pay’ also
covers monthly paid workers especially
when they are absent without pay. Why
would you pay them for all those days
they are not working especially when they
are absent without pay? There must be
corresponding deduction or adjustment in
their wages. There is nothing that
prevents the application of that equitable
principle likewise to monthly paid workers
in the instances that they are absent
without pay.
Payment based on Job or Task
If the employer decides to cement a 1km
road and hires workers to do that, that is
a job or task and the employer may agree
with the workers to pay the latter a fixed
amount based on that particular job or
task without regard to the number of
actually hours spent by these workers in
the performance or completion. Payment
based on a job or a task means that a
plot or fixed sum is paid for each and
particular job or task completed
without regard to the number of
hours actually spent in the
performance or completion. A worker
paid based on the job or task may
properly qualify as a worker paid by
results.
If you are a worker paid by result, there
are certain labor standards that do not
apply to you. In most cases, if you are
paid based on job or task, the assumption
is you get paid more compared to a time-
based worker. If the employer is engaged
in the manufacture of furniture, perhaps a
single piece of furniture a standard
amount is fixed for every unit produced
without regard for the time spent. If that
is the case, you are deemed paid on a
piece work or piece rate basis. If you
are a piece rate worker and your time
and performance is not supervised by the
employer, then you may also be qualified
as a worker paid by result. As a worker
paid by result, you do not enjoy
certain standards because you are
excluded from entitlement thereof.
A piece rate worker may or may not
be a worker paid by result. A piece rate
worker may also be supervised on his
time and performance, and if that were
the case he is not excluded from
entitlement of labor standards under the
labor code.
The importance of determining the
method of basing compensation is also
found with regard to the method of fixing
your compensation whether you’re
entitled to certain labor standards such as
overtime pay, premium pay, holiday pay,
service incentive leave, and if workers
paid by results are excluded to the
entitlement of these labor standards.
Cases decided by the SC will illustrate to
you examples of workers who are paid in
a piece rate such as the 1999 case of
Lambo Tailors, they were classified as
workers paid on a piece rate basis.
A ‘pakyaw’ or a task basis
arrangement defines the manner of
payment and not the relationship
between the parties. This principle is
very important because workers who are
paid in pakyaw or job or task basis, there
are issues that are raised such as if they
are employees or not. The employer
cannot raise an issue that they are
not employees simply because of the
method of fixing their compensation.
Payment based on a job or task, payment
based on a piece rate, does not determine
the existence of employer and employee
relationship. We still go back to the four-
fold test or the two-tier test explained
earlier. It will not define the relationship
of the parties but will spell out the manner
of payment.
Payment based on Commission
- Parties agreeing to a certain
percentage or fractions of the
proceeds resulting from sale
This is very common in salesmen and as
held in the 1990 case of Song Co, and in
the 1996 San Miguel Jeepney Services
case involving drivers and dispatchers. We
have mentioned the 4 methods of fixing
compensation. The list is not exclusive.
Payment by Boundary
How do you know whether you are
paid based on boundary?
Under the boundary system, a fixed
amount is remitted by the driver to the
owner operator and gets to earn the
amount in excess thereof. For example,
the driver using the beaker of the owner
operator the driver pays P 1500. Any
amount he earns in excess of P1500 will
be considered his compensation. The 2011
case of Caung jr., the SC said that under
the boundary system, that if there are
many passengers, then the driver will
benefit from it. More passengers, more
earnings in the part of the driver.
This commission based of fixing
compensation also has its upside and
downside because in the past up to the
present, there are PUVs where the drivers
are paid based on commission, so they
drive very fast to get more passengers
and that resulted to accidents. The DOLE
even came up with a department order
applicable to drivers and conductors of the
PUV industry because accidents were very
common since those drivers were paid
based on commission.
Under the Department order, there goes
another method which was the partly-
fixed partly performance based payment.
I am referring to Department Order
118-12 Series of 2012 way back of Jan
13, 2012 applicable to drivers and
conductors in the PUV transport industry.
Get a hold of a copy and it will tell you
how they are paid (partly- fixed, partly-
performance based). The fixed
component would have to be mutually
agreed by the employer and the
driver and the conductor but such
should not be lower than the
applicable daily wage. The partly
fixed compensation must also include
the payment of wage related benefits.
The performance based component
would depend on two factors under the
department order: 1) business
performance or the revenue or
ridership- more passengers and the
employees earn more 2) safety
performance- less accidents, then you
earn more. When the DOLE issued this
order, it was challenge before the SC. It
was assailed to be unconstitutional. Read
the case involving the Provincial Bus
Operators where the SC En Banc ruled
on the constitutionality of this department
order.
Revised Guidelines on the Conduct of
Time and Motion Study DOLE D.O.
125-13 issued on April 1, 2013
This is applicable to all workers of micro-
small and medium enterprises who are
paid results including pakyaw, piece work,
and other non-timed work pursuant to
Art. 101 of the Labor Code. The
employer should not commit a mistake in
fixing the compensation of the workers if
they were to be paid on a pakyaw, piece
rate, or non-times work. If the workers
are underpaid, then that becomes a
money claim and the employer may be
sued for the recovery of that money claim.
There is also a procedure defined under
this department order wherein a union, an
individual worker, even an owner or
manager of an establishment may file an
application for the conduct of time and
motion study still with the Regional
Tripartite Wages and Productivity Board.
The end result there is the RTWPB
through the Regional Director of DOLE,
being the chairperson of the board, is
expected to issue a piece rate and
production standard order.
If the establishment hires workers and
these workers are paid on a pakyaw, piece
rate, or non-time work basis, he DOLA
prescribes a procedure on the conduct of
time and motion studies. The employer
may unilaterally fix the amount per piece
or per pakyaw, but if there is a mistake or
an underpayment of wages, then it is the
liability of the employer to pay for the
wage differences. The requirement of
publication and enforcement more or less
is the same in the conduct of facility
evaluation.
Equal Pay for Equal Work Principle
Remember the Equitable Principle of ‘No
work, No pay’ also known as the ‘Per
Day’s Wage for a Per Day’s Labor’.
Corollary to that, we also have another
equitable principle initiated in the 2000
case International School Alliance of
Educators involving ‘Equal Pay for Equal
Work’. There was a bar exam question on
what are these principles of equal pay for
equal work. The international school case
involved Filipino teachers and foreign
teachers where in the latter were paid
more than the Filipino teachers. There was
an issue on whether there was a violation
on the equal pay for equal work principle.
Minimum Wage
Minimum wage is fixed by the RTWPB
pursuant to the Wage Rationalization
Act. When the board fixes the minimum
wage, it may be subject to review by the
National Wages and Productivity
Commission. Review and study the
composition of the RTWPB and the NWPC.
The regional director heads the RTWPB
while the Secretary of the DOLE is the
head of the NWPC. There is a tripartism in
the composition because there is a
representative from the public sector, the
private/ employer sector, the employee
sector usually represented by a federation
or a national union.
What is the policy of the state in
fixing the minimum wage?
One policy that is spelled out under the
law is to rationalize the fixing of
minimum wage. It is very inequitable to
have the minimum wage applicable to all
the regions. Why is it inequitable? There is
always a difference in socio-economic
factors in every region. For example, the
cost of living in NCR is higher than the
cost of living of Region X or XII. The board
is left to decide how much should be the
minimum wage applicable to that region.
Another policy under the law is the
promotion of collective bargaining as
a primary mode of settling wages. The
right to collective bargaining and
negotiation is available to workers who
have exercised the right to self-
organization. Referring to workers who
are members of the union, a certified
union, they can exercise the right to
collective bargaining and negotiation.
If there is anyone interested in the
increase of the prevailing minimum wage,
there is also a step by step procedure. The
Revised Rules of Fixing Minimum Wage
where you file your application and the
petition for wage increase will have to
undergo publication, public hearing,
and expect the board to issue a wage
order. It is not at all times that the board
will grant a wage increase. There are
occasions in the past particularly Region
VII that the board had denied the petition
for wage increase.
A wage order is an order promulgated by
the board pursuant to its wage fixing
power. For the wage order to be effective,
it requires publication and within 1
year from the effectivity of that wage
order, the rules will not allow another
petition to be filed except under
extraordinary circumstances such as
an increase in the prices of basic goods or
fuel, then the board may entertain
another petition within that 1 year period.
Can an individual worker file a
petition for wage increase?
NO, under the existing the rules there re
persons who are authorized. An employer
may file but I have yet to see situation
where the employer would want to see a
minimum wage increase. A duly registered
federation or union since it has a juridical
personality can also file a petition. In
Region VII for example, I noticed that the
federation that usually files for a wage
increase is the Associated Labor Union-
Trade Union Congress of the Philippines
(ALU-TUCP). It’s one of the largest
federation or national union we have in
this country.
It is not uncommon that when there is a
petition for a wage increase filed to the
board employers would oppose. There was
one time our office lawyered for a large
employer’s organization and at that time I
was tasked to drop a position paper
opposing for the wage increase. For due
process purposes, during the hearing we
filed our position paper and the board
deliberated on it and eventually
deliberated to grant the petition or not.
Sometimes when you ask for a P50 wage
increase the board will only grant half of it
or none at all.
In fixing the minimum wage by the board,
the board has to consider several factors
and cost of living condition. That is why
among the members of the board you can
find there members form the DTI, NWPC,
agencies charged with assessing the
economic conditions of the country like
NEDA or National Economic Development
Authority.
In fixing minimum wage, the board has
to consider the right of the employer.
The employer has the right to a
reasonable return of investment and
expansion and growth. That right of the
employer has to be considered. It is not
always one-sided to grant the wage
increase because a very unreasonable
wage increase will result to the stoppage
or closure of operations of the
establishment which will violate the
employer’s right to reasonable return on
his investment and to expansion and
growth. That was exemplified in the
2004 case Duncan Association of
Detailman.
WAGE DISTORTION
When the board issues a wage order, it is
not avoidable that a wage distortion may
happen. The definition is very long. For
the purposes of the BAR examination,
what you have to remember are the 4
requisites to constitute wage
distortion:
(Check the case of Prubankers
Association. 1999)
 When the board issues a wage
order and results into a wage
distortion. The law provides a
remedy. The procedure in resolving
that remedy would depend on
whether the establishment is
organized or unorganized.
UNORGANIZED – establishment
does not have a recognized
bargaining union or collective
bargaining agreement
ORGANIZED – there is a certified
and recognized bargaining agent or
collective bargaining agreement
Ex. An establishment has a wage order
issued by the board and the workers
believe that while there is an adjustment
on the salary of the lower pay class there
is no concomitant increase in the salary of
the higher pay class which resulted in the
elimination or civil contraction. In that
case, the workers have a cause of action
for wage distortion.
If the wage distortion is not properly
resolved despite the procedure provided
by law, the wage distortion may be the
subject of a compulsory arbitration before
the LA or voluntary arbitration before a
voluntary arbitrator. In other words, it
may end up with arbitration.
Employees should not hesitate to seek
redress from their grievances if you
believe that as a result of a wage order
there exists a wage distortion.
It is difficult to prove because you don’t
know the salary of the employees in the
establishment because there is a
hierarchy of position. Ex. If there is a
severe elimination or contraction between
the rank and file employees and the
supervisors, then there could be a cause
of action for wage distortion.
 Wage distortion must exist in a
particular region.
Do not compare the Regions with each
other. The wage distortion should just be
in that particular region.
Our regional tripartite board, in fixing the
wages, the SC came up with methods
of determining wages found in the
2007 case of Metropolitan Bank and
the earlier case of Employers’
Confederation in 1991.
TWO methods:
1) Floor wage method – the most
common method of creating wage
distortion because when there is a
minimum wage the board will only fix the
amount and add it to the prevailing
2) Salary ceiling method – what is
acceptable; the board will fix an amount
and that will apply to certain employees
receiving a denominated salary ceiling
In the 2004 case of Bankard
Employees Union, if the increase in the
hiring rate is brought about by the
employer voluntarily and unilaterally even
without increasing the salary rate of all
employees, there exists no wage
distortion. Why? The increase of the salary
was not brought about by the issuance of
a wage order. It was done voluntarily and
unilaterally by the employer.
You must know various situations where
there are wage distortions and situations
where there are no wage distortions.
When the board issues a wage order
fixing the minimum wage, the wage
order will ONLY benefit those workers
who are receiving below the
prescribed daily wage. It is not across
the board. It will not be granted to all
employees. It is only applicable to
employees who are receiving below the
minimum wage.
In the 2006 PAG-ASA Steel Works
case, there is no right to wage increase if
the employees are receiving above the
minimum wage.
What is the liability of the employer if
he fails to comply with the wage
order?
If the wage order is affirmed by the
NWPC, the wage order becomes final and
executory (can still be subject to appeal
up until the SC) the employer is expected
to comply. Failure or refusal to comply,
under our existing law, will mean liability
on the part of the employer including
criminal liability. Take note of the so-
called double indemnity which is a
penalty imposed upon an erring employer
or an employer who fails and refuses to
comply with a valid wage order.
Double Indemnity Rule- Department
Order 10 Series of 1998
In the 2009 Philippine Hoteliers Inc., this
department regulation was cited.
While the board has the power to fix the
minimum wage through the issuance of a
wage order, the law also allows
exemptions from the wage order
either by application or by operation
of law.
 BY APPLICATION- entitles certain
establishments to apply for
exemption
Ex. A distressed retail or service
establishment employing not more
than 10 workers can apply with the
RTWPB for an exemption from the
wage order.
 BY OPERATION OF LAW – under
the labor code- domestic workers
are exempted from the wage order
because they are paid a monthly
wage and not a daily wage.
 In fact, we have wage orders fixing
the monthly wage of domestic
workers under the Batas
Kasambahay.
Module 5: Wage enforcement and
recovery
Primary Framework to ensure
compliance with Labor law:
Issuance of the Wage order, Fixing
the Minimum wage
Question: How do we know if the
companies will comply with the wage
order? How do we know if they will adjust
the wages in compliance to the wage
order?
2 enforcement tools in the recovery of
wages:
The Labor code has reposed, no
less than upon the Sec of the DOLE
or his duly authorized
representative –the Regional
Director, the power to visit the
establishment and once visited
and violation is found, the
enforcement power will come
into play to ensure that the
establishment to abide with the
wage order.
Ex. Visit the establishment;
inspect: check the records of
employment/ check the payroll to
see if correct wages are paid, if
violation is found, order to comply;
if it provides payment of wages,
order to pay; if still will not pay,
issue a writ of execution on your
properties in order to satisfy the
judgement.
1. Visitorial and Enforcement Power
(Art. 128 of Labor Code)
2. Recovery of Simple Money Claims
(Art. 129 of Labor Code)
 Ex. If an employee is
underpaid or not paid at all,
amount does not exceed 5k,
no claim for reinstatement,
he may file before the RD
for the recovery of the
simply money claims
(simple because the amount
does not exceed 5k) –
Procedure: summary in
nature
Importance: An employee can
resort to the enforcement tools in
order to recover their wages,
Applicable Department Regulation: DO-
183 series of 2017: The Revised Rules on
the Administration and Enforcement of
Labor Laws; R.A 11058: Strengthens
compliance with Occupational Safety and
Health Standards.
Art 128 includes the enforcement power of
DOLE Secretary to ensure compliance with
Occupational Safety and Health
Standards. (You should be able to
understand clearly its scope and nature of
its power and distinguish it from the bona
fide suspension of operations which is
initiated not by DOLE but rather than the
employer)
1. Visitorial and Enforcement
Power (Art. 128 of Labor Code)
Why would DOLE exercise this power?
Obviously to ensure compliance, not only
the minimum wage but also the
compliance by the employer of the Labor
Standards and other Labor related
benefits provided by the special laws. And
also, the power includes to ensure
compliance with Occupational Safety and
Health Standards. (complaint ba ang
company while doing its operations?)
Ex. There is an ongoing
construction and the building
collapsed and then death resulted.
That is within the visitorial power
of the Sec of DOLE/RD to suspend
the operation or part of the
operation so as not to endanger
the lives of the employees and the
also the public.
What can you find under this provision?
Case: 2012 case of People’s broadcasting
service, the Bombo Radyo Phils.
Issue: W/N the Sec. of DOLE/ the RD can
exercise visitorial enforcement power and
in the course thereof determine the
existence of employer-employee
relationship?
We all know that the determination
of the existence of employer-
employee relationship, that is
 within the power, original and
exclusive of the Labor Arbiter.
In this case, the issue was raised if it is
within the competence and authority to
determine the existence of employer-
employee relationship and assuming that
it finds that the relationship exists – W/N
the findings would be final and binding, or
W/N the decision is temporary or tentative
in nature.
Ruling: The SC ruled that the DOLE is
fully empowered to determine the
existence of employer-employee
relationship BUT subject to judicial
review – not review by the NLRC but
judicial review, the court of law. The
findings of Sec of DOLE/ the RD is not just
temporary or tentative but final, binding
and conclusive. The SC also ruled that
there is no limitation imposed by law, the
DOLE does not need to seek the NLRC’s
determination.
This case is quite interesting because the
decision of the SC is to the contrary. But
upon the Motion for Reconsideration, the
SC reconsidered and came up with a more
definite pronouncement. (please take note
of that)
R.A 11058 (focus on Sec 23)
The employer may be made to pay the
wages during a work stoppage if it is
brought about by an imminent danger
which is caused by the fault of the
employer.
General Rule: No work no pay
Exception: If the work stoppage
was found by DOLE to be brought
about by an imminent danger was
caused by the fault of the
employer.
Is the employer obliged to pay its workers
even though they are not doing work? –
Sec 23 of RA 11058.
In this new law, there is also an
presumption of fault. If the work stoppage
order issued by the Sec. of DOLE is
secondary to an imminent danger which
would imperil the lives of the workers, the
law presumes that the employer is at
fault. Of course the presumption is
rebuttable – if the employer will be able to
prove that there is no fault on his part,
then the presumption is rebutted.
On the other hand, if the stoppage of the
operation of the establishment is ordered
not by the DOLE but rather by another
agency of Gov’t, like DENR. There is one
SC case that the “no work, no pay” be
applied during the stoppage of operation.
The law refers to the power of the Sec of
DOLE and NOT to other agencies of the
Gov’t. (Case: (2008) National minds and
allied workers)
Another principle you need to
consider under this topic is the:
“Close now, hear later” process.
Closure of the establishment after notice
and hearing, or immediate closure which
is “Close now, hear later” process.
Is it within the power of DOLE to order the
closure of operation then hear the
establishment later? Your right to be
heard will come later.
Under a Department circular No. 3, series
of 2009, which involves the guidelines on
the procedure, foreclosure of
establishment or firm or business under
RA 9231. If for example the establishment
is engaged in worst forms of child labor,
Ex. The hotels or karaoke bar, they
are engaged in lewd shows of
minors, the DOLE has the power to
order the closure and hear later
the establishment.
It is obvious why it is allowed: 1.
An exercise of the police power of
the State (alangan naman na
papasayawin mo nang hubad ang
mga minors then ask the
establishment later to explain.
Sarhan muna natin to prevent
further injury to these minor
children, then let the
establishment to explain later.)
General Rule: The closure should
be done after notice and hearing
Exception: immediate closure if
there is violation of the worst
forms of child labor.
Another important principle: Can the
Sec of DOLE/RD exercise visitorial
enforcement power if there is no
employer-employee relationship?
NO! Kung wala nang employer-employee
relationship then the appropriate remedy
there is for the aggrieved workers to file
their complaint with the appropriate
branch of the NLRC which has jurisdiction
over their cases. The law contemplates an
employer-employee relationship still exists
in order to exercise the visitorial-
enforcement power.
In the case of Bombo Radyo, SC
enumerated two instances where the
employer-employee relationship does not
exist.
1. When the employer-employee
relationship has ceased.
a. Resignation
b. Termination
If there is violation of the minimum
wage, of labor standards of these
workers, their remedy is to file
their complaint with the
appropriate branch of the NLRC
which has jurisdiction over their
cases or the DOLE as the case
maybe on simple money claims
(depending on the amount of his
claims) and NOT to go to the DOLE
for it to exercise its visitorial-
enforcement power.
2. No such relationship has ever
existed.
a. The employer denies that
this person working for him
is his employee. – The
claimant must prove first
the existence of such
employer-employee
relationship, and if not
proven, we can safely say
that no such relationship
exist. Thus the visitorial-
enforcement power cannot
be invoked by the DOLE.
Art. 128 is a very good mechanism in the
recovery of wages.
Case (2009): Valiadares case
The worker did not litigate to get what
legally belongs to him. The whole
enforcement machinery of DOLE exists to
ensure expeditious delivery to him free of
charge.
What does that mean? Normally If you
have a money claim against an employer,
you consult a lawyer, engage a lawyer, file
a complaint and be represented by a
lawyer – in short you have to spend
money for payment of the lawyer
services.
In Art. 128, hindi na kailangan. There are
various modes of implementation: ex.
routine inspection. The DOLE by itself,
using its all resources and machinery will
try to recover the wages for the workers
who are entitled to it. The workers will
now see the award din their favor through
the “Compliance order” by the DOLE to
initiate recovery of wages. No expense out
on the part the workers, all they need is
just to report to the DOLE that there is a
violation. In this particular law, the
workers do not need to disclose their
identities in order for the DOLE to conduct
a routine inspection.
If there is no routine inspection, we also
have the complaint inspection – another
mode of implementation. Wherein the
worker passes a complain to the DOLE
and based on this complaint, they will
conduct a visit inspection of the
establishment. If the DOLE finds out that
the establishment is in violation, it will
order the employer to pay the
complainant’s wages, at NO expense on
the part of employee, except just simply
file the complaint and attend the
mandatory conferences.
Another important principle: The
Exception clause. Not in all instances
can the DOLE retain jurisdiction under
Art 128. There may be an instance
that the DOLE is divested of
jurisdiction.
Under this exception clause, if the findings
of the DOLE are contested by the
employer – by raising issues supported by
documentary proof which were not
considered in the course of inspection and
under the exception clause, the DOLE is
divested of jurisdiction.
Where will the claim goes? It will be
referred to the appropriate branch of
NLRC for compulsory arbitration. Why?
Because under the exception clause, if the
DOLE is divested of jurisdiction, it could
no longer try and hear and resolve the
claim.
That doctrine was initiated in the 2009
case of Metyor (?)
In Art. 129, on recovery of simple money
claims, in order for the RD will have
jurisdiction, there are requisites:
1. The claimant is an employee or
a domestic worker.
2. The claim must not exceed 5k.
3. The claimant who is no longer
employed does not claim
reinstatement.
4. The claim arose from employer-
employee relationship.
If these 4 requisites are present, the RD
of DOLE can assume jurisdiction to try,
hear and resolve the case. Under our
existing Rules of Procedure, the decision
of the RD is appealable not to the Sec of
DOLE but to the NLRC. In Art. 128,
compliance order of the RD may be
appealed to the Sec. of DOLE. If it is the
Sec. of DOLE who issues the compliance
order, after a motion of reconsideration is
denied will become final and executory.
The remedy there is through Petition for
Certiorari under Rule 65 to the CA, then
CA to SC.
If you are listening, different yung
procedure and appellate process involving
cases arising from Art 128 and 129 of the
Labor code.
Remember that when the RD of DOLE
tries and hears the case, he is exercising
quasi-judicial power whether it be Art 128
or 129 of the Labor code. That is why his
decision order is subject to review.
Do not confuse yourself with the exercise
of quasi-legislative power whenever the
Regional Tripartite Wages Input Activity
Board issues a wage order. When the
board issues an order, it is the exercise of
a quasi-legislative power and not a quasi-
judicial power.
Get the copy of the D.O 183 Series of
2017: Revised Rules on the Administration
and Enforcement of Labor Laws
Three modes of Implementation:
1. Routine Inspection
2. Complaint Inspection
3. Occupational Safety and Health
Standard Investigation
Under this DO, you have to know who will
be the authorized representative of the
employer and the employees if it were an
organized establishment or unorganized.
If organized establishment, the
representative of the employees will
be the one designated by the sole
exclusive bargaining agent. If no
union, the representative will be any
rank and file employee or
representative from any of the ff
committees in successive order: Labor
Management council, Compliance
Committee, Safe and Health Committee or
Family Welfare Committee. What is the
importance of that?
Here is an establishment operating
who had employed a lot of
workers. There is an inspection to
be done by DOLE; purpose of visit
is the determination of compliance
with labor standards. Who will
represent the employees if all are
busy? The representative will
depend if the establishment is
organized or not. (refer above bold
words)
You will have to remember under this DO:
the conduct of the routine inspection.
There are priority establishments. DOLE
will not waste its time to inspect all
establishments.
Ex.
1. Those engaged in hazardous work
– construction companies, mining
and quarrying companies
2. Those employing children. Can
children be employed? Yes. Those
in non-hazardous workplace.
3. Those engaged in contracting
arrangements – the establishment
decides to outsource a certain
function to a third party or
contractor. There could be issues
of violation by the contractor, ex.
Labor only contractor – supplying
workers in violation of the labor
standards law.
 4. Those employers employing 10 or
more workers.
In my opinion and experience, many
violators are those employing 10 or less
workers. They are not priority
establishments but they are mostly the
violators.
Under this DO, there are instances
when a complaint inspection may be
initiated.
ex. 1. When there is a sena-referral. –
One employee claims that he is underpaid,
he files a complaint with single entry
appoint desk officer – the sena desk
officer can make a referral to the DOLE for
the conduct of the complaint inspection.
2. Anonymous complaint – you can
write a letter to the DOLE and
request for the conduct of a
complaint inspection based on your
anonymous complaint.
3. There is a request in a conciliation–
mediation proceeding to NCMB to
validate or verify violation of Labor
Standards. The NCMB may also
accept complaints on violation of
Labor standards. They could
request the DOLE to verify
violation of Labor Standards.