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Labor Standards: Ib. Minimum Wage Rates
Labor Standards: Ib. Minimum Wage Rates
Update: Service charges – entitled now to 100% of the 2. Pag-Asa Steel Works, Inc. v. CA
Whether or not the company should grant the wage
increase under Wage Order by virtue of company practice.
IA. WAGES
1. Mayon Hotel & Restaurant v. Adana: NO. Wage Order is clear that it only applies to EEs
whose salary is less than 223.50. All of the EEs that
a. The employer simply cannot deduct the value time are receiving more than that.
from the employee's wages without satisfying the
following: [CVF] Even assuming the company will give it as a matter of
(a) proof that such facilities are customarily furnished practice, the same CANNOT ripen into a company
by the trade; practice because the same is an ACT OF
(b) the provision of deductible facilities is voluntarily LIBERALITY.
accepted in writing by the employee; and
(c) the facilities are charged at fair and reasonable Sevilla Trading Co. v. Semana --
value To constitute company practice, it must be:
a. Practice over a long period of time; and
Hence, cost of meals and snacks cannot be availed b. Must be consistent and deliberate despite
automatically (not deducted in this case) knowledge that it should not be given
Note: This is the one that In this case, it is a company practice when from 1975-
can be deducted upon 1981, the comapny includes in the computation of its
satisfying the elements. 13th month pay the premium on rest days and special
*It should be based on PURPOSE, not the KIND of holidays.
facility given.
3. Prubankers Assoc. v. Prudential Bank
b. The employer cannot exempt himself from The implementation of wage orders in one region but
liability to pay minimum wages because of poor not in others does NOT in itself necessarily result in
financial condition of the company Reason: The wage distortion Reason: There are different
payment of minimum wages is NOT dependent on necessities between regions
the employer's ability to pay.
Wage distortion: Situation where an increased in
2. Gaa v. CA: Under the Civil Code, only WAGES are prescribed wages resulted to “elimination” of
exempted from attachment and execution intentional quantitative differences among the
Wages Salary employees [CHER]
Compensation for Denotes a higher degree 1. An existing hierarchy of positions with
manual labor, , skilled or of employment, or a corresponding salary rates
unskilled, paid at stated superior grade of 2. A significant change in the salary rate of a lower
times, and measured by services, and implies a pay class without a concomitant increase in the salary
the day, week, month, or position of office: rate of a higher one
season, 3. The elimination of the distinction between the two
levels
3. Philex Gold Phil., Inc. v. Philex Bulawan 4. The existence of the distortion in the same region of
Supervisors Union: the country
“Equal pay FOR equal work”
Persons who work with substantially equal
qualification, skill, effort and responsibility [QSER], IC. PAYMENT OF WAGES
under similar conditions, should be paid similar 1. Aklan Electric Coop. v. NLRC
salaries EEs believe that they are illegally transferred although the
same was not made in bad faith
If an employer accords employees the same
position and rank, the presumption is that “No work, no pay”
these employees perform equal work. "Fair days wage for a fair days labor"
This is a (disputable) PRESUMPTION borne out of XPN: If EE is illegally locked out, suspended or
logic and human experience dismissed.
*In this case, the company failed to explain why the Both parties must prove their allegations through
EEs were treated unfairly. AFFIRMATIVE ALLEGATIONS
ISAE v. Quisumbing: Same. No proof that local hires 2. Five J Taxi v. NLRC
perform better than foreign-hires. Deposits for loss or damage
1
GR: Deposit for loss or damage should NOT be Q: What is the NUMBER OF HOURS required?
required GR: It should NOT exceed 8 hours a day for 6 days a
week
XPN: If TOB where the practice of making deposit is a
RECOGNIZED one XPN: Health personnel – who hold 8 hours a day for
5 days a week
3. Radio Communication Phils. V. SOL
Union service fee: Payment for representation of Otherwise, if 6 days, they are required to additional
union in behalf of the employee. 30% of their regular wage for the 6th day.
ID. PROHIBITIONS REGARDING Note: Article 83 does NOT prohibit less than 8 hours
of work. It only sets a max. number of hours of work.
WAGES
1. Commando Security Agency v. NLRC Q: How about OVERTIME?
Deducting an amount from EE’s salary as company’s It should be in EXCESS of the 8 hours
share for job procurement is NOT legal since it is
against public policy – no consent; not allowed by Basis for overtime pay: Based on regular basic pay
law
Reason for overtime payment: Because of the adverse
2. Apodaca v. NLRC effects upon him for staying longer
Can non-payment of stock subscription be OFFSET
against a money claim Pampanga Sugar Development v. CIR: Overtime pay
CANNOT be waived; otherwise, it will not be
No. Aside from the fact that the NLRC has no binding and will not bar claims for payment of
jurisdiction, an unpaid stock subscription can only be overtime
had when it is due and demandable such as when
there is a call made by the corporation for payment. XPNs:
a. If it is in exchange of certain valuable benefits
*** b. CWW provided that the total number of hours per
day should not exceed 12 hours
ART. 113. Wage Deduction. — No employer, in his There must be an agreement
own behalf or in behalf of any person, shall make any o If firms using substances, there
deduction from the wages of his employees, except: must be a certification from
[ICA]
accredited health and safety
organization
(a) In cases where the worker is insured with his
The DOLE should be notified
consent by the employer, and the deduction is to
recompense the employer for the amount paid by him
Note: Reversion to 8 hours is allowed as it is a
as premium on the insurance;
management prerogative provided that there is prior
notice
(b) For union dues, in cases where the right of the
worker or his union to checkoff has been recognized It is when NORMAL WORK WEEK IS REDUCED
by the employer or authorized in writing by the TO LESS THAN SIX DAYS BUT THE TOTAL
individual worker concerned; and NUMBER OF NORMAL WORK HOURS PER WEEK
SHALL REMAIN AT FORTY-EIGHT (48) HOURS.
(c) In cases where the employer is authorized by law
or regulations issued by the Secretary of Labor. Q: What is the rule on UNDERTIME?
Undertime is NOT offset by overtime
IIA. HOURS OF WORK NWSA v. NWSA Unions: Otherwise, that would place
Includes ALL TIME during which an EE is: the working schedule at the mercy of the EE.
a. Required to be on duty or to be at the workplace
b. EE is suffered to work/permitted to work The proper method should be to deduct the
undertime from the accrued leave BUT pay the
Note: Rest periods of short duration should be employee the overtime to which he is entitled.
counted, e.g. coffee break of 15 mins; meal periods of
less than 30 mins. Q: What is the rule on MEAL BREAKS?
Duty of every ER to give 60 minutes of meal break
XPNs (6): Not covered
a. Government EEs Nothing in the law that it should be made
b. Managerial EEs (Salazar v. NLRC) inside only
c. Field personnel (San Miguel Brewery v.
Democratic Labor Union – salesman NOT allowed for Meal period = Overtime work
overtime Reason: Payment is based on gross
When EEs are required to standby for
receipts)
emergency works (PanAm World Airways
v. PanAm Employees Assoc.) In the case, the
d. Members of the EEs who are dependent on him for
mechanics were required to stand by for
support
emergency work; that if they happened not
e. Domestic helpers and persons in the personal
to be available when called, they were
service of another
reprimanded by the leadman; that as in fact
f. Workers who are paid by results, e.g. piece
it happened on many occasions, the
workers, "pakiao"
mechanics had been called from their meals
2
or told to hurry Employees Association up pay on the day IMMEDIATELY
eating to perform work during this period. PRECEDING the holiday
3
b. Domestic EEs
Contra: Boie-Takeda Chemicals v. Dela Serna:
c. Managerial EEs Productivity bonuses are NOT commissions; hence,
not part of basic salary for purposes of computing 13 th
d. Field personnel whose work is unsupervised by the month pay Reasons: (a) Medical representatives are
ER not salesmen; (b) it partook the nature of a “profit-
sharing bonuses”
Bus Transport Systems, Inc. v. Bautista: This means
field personnel whose hours of work CANNOT be Q: When does pro-ration of 13th month pay apply:
determined with reasonable certainty. Only in case of RESIGNATION or SEPARATION
OF WORK; computation should be based on length of
Hence, bus drivers and conductors are NOT included service and not on actual wage earned by worker
because bus companies have the means to know their (Honda Phils. V. Samahan ng Malalayang
hours work because: Manggagawa)
a. There are inspectors along strategic places;
b. There is a mandatory checking once a week; Note: 14th month pay and others are management
c. They must be at a place of destination at a specified prerogatives.
time and place;
d. At every depot, there is always a dispatcher
XPNs:
a. Government EEs
b. Household EEs
c. EEs paid on commission basis