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VI. WAGES - Coggle Diagram

- - - - 4. MINIMUM WAGE
        
        5. PAYMENT OF WAGES
        
        6. BONUS
        
        7. MANNER OF WAGE PAYMENT
        
        8. NON-DIMINUITION
        
        9. FAIR DAY PAY
        
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        SUPPLEMENTS & OTHER BENEFITS AT TIME OF LC NOT TO BE IMPAIRED
        ● Art. 100, LC: Prohibition against elimination or diminution of benefits:
        ○ Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.
        
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        MANAGEMENT PREROGATIVE ALLOWS
        
        DEMOTIONS
        
        DIMINUITIONS BY DEMOTIONS
        CLASS NOTES:
        ● Demotions are allowed, it is management prerogative
        ● Not incompatible w/ diminution of benefits
        ● What happens to salary? Not a violation even if his salary is reduced due to demotion
        
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        EMPLOYEES ENTITLED TO 13THM MONTH PAY REGARDLESS OF MANNER OF WAGE PAYMENT
        Presidential Decree No. 851, as amended by Memorandum Order No. 28, provides that employees are entitled to the thirteenth-month pay benefit regardless of their designation and irrespective of the method by which their wages are paid.||| (Jackson Building Condominium Corp. v. National Labor Relations Commission, G.R. No. 111515 (Resolution), [July 14, 1995], 316 PHIL 399-404)
        
        "BONUS" ACT OF LIBERALITY OF THE GIVER
        IN ADDITION TO WHAT IS ORDINARILY RECEIVED OR STRICTLY DUE
        ● “A “bonus” is a gratuity or act of liberality of the giver. It is something given in addition to what is ordinarily received by or strictly due the recipient”
        
        NOT DEMANDABLE AND ENFORCEABLE
        ● “Generally, a bonus is not a demandable and enforceable obligation.
        
        TO BE ENFORCEABLE
        
        PROMISED BY EMPLOYER
        
        EXPRESSLY AGREED BY PARTIES (CBA/CONTRACT)
        For a bonus to be enforceable, it must have been promised by the employer and expressly agreed upon by the parties”
        
        WAGES SHALL NOT BE PAID BY:
        
        PROMISSORY NOTES
        
        VOUCHERS
        
        COUPONS
        
        TOKENS
        
        CHITS
        
        NON-LEGAL TENDER
        ARTICLE 102. Forms of Payment. — No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when expressly requested by the employee.
        
        CHECK/MONEY ORDER ALLOWED ONLY IF:
        
        CUSTOMARY BY TIME OF LC
        
        SPECIAL CIRCUMSTANCES SPECIFIED IN:
        a. REGULATIONS BY SOLE
        b. CBA
        Payment of wages by check or money order shall be allowed when such manner of payment is customary on the date of effectivity of this Code, or is necessary because of special circumstances as speciAed in appropriate regulations to be issued by the Secretary of Labor and Employment or as stipulated in a collective bargaining agreement
        
        CHECK/MONEY ORDER ALLOWED IF:
        
        BANK/FACILITY FOR ENCASHMENT
        a. 1KM FROM WORKPLACE
        There is a bank or other facility for encashment within a radius of 1 km from the workplace
        
        NO BENEFIT OF ER/AGENT
        a. DIRECTLY/INDIRECTLY
        b. FROM ARRANGEMENT
        The employer or any of his agents or representatives does not receive any pecuniary benefit directly or indirectly from the arrangement;
        
        REASONABLE TIME TO WITHDRAW
        a. DURING BANKING HOURS
        b. IF DONE DURING WORKING HOURS, CONSIDERED COMPENSABLE HOURS
        The employees are given reasonable time during banking hours to withdraw their wages from the bank which time shall be considered as compensable hours worked if done during working hours; and
        
        WRITTEN CONSENT, IF NO CBA
        The payment by check is with the written consent of the employees concerned if there is no collective agreement authorizing the payment of wages by bank checks.
        
        TIME OF PAYMENT
        Art. 103. Time of Payment:
        
        ONCE EVERY 2 WEEKS
        ○ Wages shall be paid at least once every two weeks of twice a month at intervals not exceeding 16 days.
        
        NOT LESS THAN ONCE A MONTH
        ○ No employer shall make payment with less frequency than once a month.
        
        EXCEPT IF FORCE MAJEURE
        ○ If on account of force majeure or circumstances beyond the employer’s control, payment of wages on or within the time herein provided cannot be made:
        UPON END OF FORCE MAJEURE, PAY
        ■ Employer shall pay the wages immediately after such force majeure or circumstances have ceased.
        
        IF WORK CANNOT BE COMPLETED IN
        2 WEEKS, WITH NO CBA OR
        ARBITRATION AWARD
        
        NOT EXCEEDING 16 DAY-INTERVALS
        
        PROPORTIONAL TO WORK COMPLETED
        
        FINAL SETTELEMENT UPON COMPLETION
        ○ The payment of wages of employees engaged to perform a task which cannot be completed in two weeks shall be subject to the following conditions, in the absence of a CBA or arbitration award:
        ■ That payments are made at intervals not exceeding 16 days, in proportion to the amount of work completed;
        ■ That final settlement is made upon completion of the work.
        
        WHERE: AT OR NEAR PLACE OF UNDERTAKING
        Art. 104 Payment of wages shall be made at or near the place of undertaking except as otherwise provided by such regulations as the Secretary of Labor and Employment may prescribe under conditions to ensure greater protection of wages.
        
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        EVEN IF EMPLOYEE
        EXPRESSLY REQUESTS IT
        
        DECIDED BY RTWB
        
        Decided by regional tripartite wage board
        DIVIDED INTO AGRICULTURAL AND NON-AGRICULTURAL MINIMUM WAGE
        Divided into agricultural and non-agricultural minimum wage
        
        ● Common exceptions:
        
        Household/domestic helpers
        
        Home workers (needle work)
        
        Establishments registered w/ National Cottage Industries
        
        Workers in duly registered cooperative
        
        Workers employed by establishments registered as a barangay micro business enterprise (BMBE)
      - THEY'RE THE SAME
    - - "BACKWAGES WITHOUT QUALIFICATION AND DEDUCTION" MEANS:
        
        NO DEDUCTION FOR THEIR EARNINGS ELSEWHERE
        
        UNQUALIFIED BY WAGE INCREASE OF CO-WORKERS UNDISMISSED
        The term 'backwages without qualification and deduction' means that the workers are to be paid their backwages fixed as of the time of the dismissal or strike without deduction for their earnings elsewhere during their layoff and without qualification of their wages as thus fixed; i.e., unqualified by any wage increases or other benefits that may have been received by their co-workers who are not dismissed or did not go on strike.
        
        REGIONAL DIRECTORS ARE AUTHORIZED TO ASSESS & EVALUATE FAIR & REASONABLE VALUE OF FACILITIES
        
        UPON PETITION OF INTERESTED PARTY
        
        CUSTOMARILY FURNISHED FACILITY
        DOLE Order No. 4 (1988) ○ In the interest of the public service so requiring and in line with the decentralization policy of this Department, Regional Directors are hereby authorized, on petition of any interested party, to assess and evaluate the fair and reasonable value of meals, housing and other facilities customarily furnished by employers to their employees and issue appropriate Facility Evaluation Orders authorizing deductions of the cost of such facilities from the wages of employees availing thereof.
        
        ALSO AUTHORIZES
        
        ISSUANCE OF FACILITY EVALUATION ORDERS
        a. AUTHORIZING DEDUCTIONS OF
        COSTS OF FACILITIES
        issue appropriate Facility Evaluation Orders authorizing deductions of the cost of such facilities from the wages of employees availing thereof.
      - CANNOT BE DEDUCTED FROM WAGE OF EMPLOYEE
        ■ Cannot be deducted from wage of employee
      - FREE MEALS FOR MAINTENANCE OF HEALTH & EFFICIENCY OF CREW = NOT FACILITY
        The free meals were"not as part of their wages but as a necessary matter in the maintenance of the health and efficiency of the crew personnel during the voyage",
        (12444)
    - - FACILITIES = THINGS NECESSARY FOR EMPLOYEE/HIS FAM'S EXISTENCE.
        Facilities - Items/things that are necessary for employee’s or his family’s existence
        
        CAN BE DEDUCTED IF:
        
        PROOF IT IS PROVIDED
        
        CUSTOMARY
        ■ Can be deducted from wage of employee if it meets three requirements:
        ● 1) Proof that it must be provided and is customary in the industry to be provided
        
        VOLUNTARILY ACCEPTED
        a. IN WRITING BY EE
        2) Deductible facilities must be voluntarily accepted in writing by the employee ○ Written proof he accepted and voluntarily received ○ Ideally every time it is given to him, because burden of proving is on employer
        
        FAIR & REASONABLE VALUE
        ● 3) Facilities must be charged at fair and reasonable value
        
        DOLE-APPROVED
        ○ Note: the DOLE must approve (ex. Approved / estimated fees for meals)
        
        FORM PART OF THE EMPLOYEE'S
        BASIC WAGE (12444)
        
        INTENT/PURPOSE MAY DETERMINE
        FACILITY vs SUPPLEMENT
        SUSTENANCE v. GRATUITOUS
        ○ Not wrt to type or kind but purpose
        ■ It is case to case basis. The same benefit can be a facility for a rank-and-file employee but a supplement for a high ranking executive
        ○ Ex #1. Is food for the employer or for benefit of employee?
        ■ If it’s for sustenance of employee - Facility
        ■ Or if it’s for employer’s benefit/just because employer wants to give it - Supplement
        ○ Ex #2: Manila Polo Club membership
        ■ Employer gives it to u to network w potential clients - Supplement
        ○ Ex #3: Stay-in rank and file employee (lives in premises of employer)
        ■ Provide him a sack of rice and bedding
        ■ Even if you don’t provide him the meal/rice, he still has to go out and eat -Facility
        ○ Goes along with principle that one cannot deduct from wage of employee except for very specific circumstances
      - NOT FACILITIES:
        
        TOOLS OF THE TRADE
        
        TRADE/ARTICLES/SERVICE
        a. PRIMARILY BENEFITTING ER or
        NECESSARY TO CONDUCT ER'S BUSINESS
        but excluding tools of the trade or articles or service primarily for the benefit of the employer or necessary to the conduct of the employer’s business
        
        EVIDENCE OF SUPPLEMENT:
        
        NOT SUBJECT TO TAX
        ○ That subject allowances were for the benefit and convenience of PICOP was supported by the fact that they were not subjected to withholding tax
  - - - EMPLOYEE = ANY INDIVIDUAL EMPLOYED BY EMPLOYER
        ○ “Employee” includes any individual employed by an employer.
        
        "AGRICULTURE" INCLUDES:
        
        FARMING
        a. CULTIVATION
        b. TILLAGE OF SOIL
        c. DAIRYING
        d. PRODUCTION
        e. CULTIVATION
        f. GROWING
        g. HARVESTING
        ○ “Agriculture” includes farming in all its branches and, among other things, includes cultivation and tillage of soil, dairying, the production, cultivation, growing and harvesting of any agricultural and horticultural commodities, the raising of livestock or poultry, and any practices performed by a farmer on a farm as an incident to or in conjunction with such farming operations,
        
        "EMPLOY" = SUFFER/PERMIT WORK
        ○ “Employ” includes to suffer or permit to work.
        
        MANUFACTURING or PROCESSING IS NOT AGRICULTURE
        
        SUGAR
        
        COCONUTS
        
        ABACA
        
        TOBACCO
        
        OTHER FARM PRODUCTS
        but does not include the manufacturing or processing of sugar, coconuts, abaca, tobacco, pineapples or other farm products.
        
        OWNERS/MEMBERS OF COOPERATIVE NOT EMPLOYEES
        A cooperative is by its nature different from an ordinary business concern being run either by persons, partnerships, or corporations. Its owners and/or members are the ones who run and operate the business while the others are its employees.||| (Benguet Electric Cooperative, Inc. v. Ferrer-Calleja, G.R. No. 79025, [December 29, 1989], 259 PHIL 1230-1239)
  - - - "SHARES" AND "SELF-EMPLOYED" CAN STILL MEAN THERE ARE WAGES
        Thus, the weekly stipends “shares” in the service surplus given by Asiapro to its owners-members were in reality wages, as...
        
        NOT LOWER THAN PRESCRIBED BY LAW = EVINCES WAGES
        ...the same were equivalent to an amount not lower than that prescribed by existing labor laws, rules and regulations, they be registered with SSS (petitioner) as self-employed and to remit their contributions.
    - - EXCEPTIONALLY,
        ALLOWANCE IS PART OF WAGE IF:
        For an allowance to be considered part of wage, the following should be considered:
        
        CUSTOMARILY FURNISHED
        a. REGULARLY, NOT TEMPORARY
        (1)is it customarily furnished (it should be regularly furnished and not temporary)
        
        FALLS UNDER BOARD, LODGING, OR OTHER FACILITIES
        (2) does it fall under ‘board, lodging or other facilities’
        
        "FAIR AND REASONABLE VALUE" AS DETERMINED BY SOLE
        (3) is it ‘fair and reasonable value’ as determined by the Sec of Labor
        (Millares v. NLRC)
      - SALESMAN'S COMMISSIONS
        FORM PART OF WAGES
        Iran v. NLRC: Commissions (incentives and forms of encouragement to inspire employees) are direct remunerations for services rendered. The nature of the work of a salesman and the reason for such type of remuneration for services rendered demonstrate clearly that commissions are part of a salesman’s wage/salary. ●
        EVEN IF BENEFICIAL TO CORPORATION
        The fact that this salary structure works for the benefit of the corporation in that salesmen would be moved to greater enterprise and diligence and close more sales in the expectation of increasing their sales commissions, does not change the character of such commissions as being part of the salary or wage paid.