Sequence of Presentation
1. Employer-employee Relationship
2. Labor Standards 3. Wages
4. Hours Worked
5. RA 9178
determining the existence of employer-employee relationship, the elements that are generally considered are the following:
The selection and engagement of the
employee; The payment of wages; The power of dismissal; and
The employer’s power to control the
employee with respect to the means and methods by which the work is to be accomplished. It is so-called “control test” that is the most important element.
(“Brotherhood” Labor Unity Movement of the Philippines, et al. vs. Zamora, G.R. No. 48645, Jan. 7, 1987.)
Shall refer to the minimum requirements
prescribed by existing laws, rules and regulations and other issuances relating to wages, hours of work, cost of living allowances and other monetary benefits, including those set by Occupational Safety and Health Standards.
is any remuneration or earnings, however
designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other methods of calculating the same, which is payable by an employer to an employee under a written or
unwritten contract of employment for work
done, or for services rendered or to be rendered. In some cases, it includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, on board, lodging and other facilities customarily furnished by the employer.
Payment of Wages
Wages shall be paid in cash, legal tender
at or near the place of work Payment may be made through a bank upon written petition of majority of the workers in establishments with 25 or more employees and within one kilometer radius to a bank Payment shall be made directly to the employees
Payment of Wages
Wages shall be given not less than once every two
weeks or twice within a month at intervals not exceeding 16 days Preference of workers’ money claims over government and other creditors in case of bankruptcy or liquidation of business Labor- only contracting is prohibited and the person contractor is considered merely as an agent of the employer
The new minimum wage rates shall cover all workers
in the Region regardless of their position, designation or status and the method by which their wages are paid, including learners and apprentices, except household and domestic helpers or persons in the personal service of another and workers of registered Barangay Micro-business Enterprises with certificates of authority.
Basis of Minimum Wage
The basis of the minimum wage
rates prescribed by the law shall be the normal working hours of eight (8) hours a day.
Recommended Computation of the Equivalent Monthly Rate (EMR) of MonthlyPaid and Daily-Paid Employees
For monthly-paid employees:
It is generally understood that factor 365 days in a year is used in determining the equivalent annual and monthly salary of monthly-paid employees. To compute their EMR, the procedure is as follows:
Applicable Daily Rate x 365 12
where 365 days/year = 300 ordinary working days 51 rest day** 11 regular holidays 3 special days ______ 365 Total equivalent no. Of days in a year
** For workers whose rest days fall on Sunday, the number of rest days in a year is reduced from 52 to 51 days, the last Sunday of August being a regular holiday under Executive Order No. 203.
For daily-paid employees:
The following factors and formula may be used in computing the EMR of different groups of daily-paid employees for purposes of entitlement to minimum wages and allied benefits under existing laws.
a) For those who are required to work everyday including Sundays or rest days, special days and regular holidays: :
Applicable Daily Rate x 392.80 = EMR 12
where 392.80 days/year = 300 20 2.6 66.30 3.90 _____ 392.80 days ordinary working days days ten regular holidays x 200% days one regular holiday falling on last Sunday of August x 200% + (30% of 200%) 51 rest days x 130% 3 special days x 130% Total equivalent number of days in a year
For those who do not work and are not considered paid on Sundays or rest days
Applicable Daily rate x 314 = EMR 12
where 314 days/year = 300 days - Ordinary working days 11 days - Regular holidays 3 days - Special days (if considered paid; if actually worked, this is equivalent to 3.9 days) _____ 314 Total Equivalent number of days in a year * For purposes of computation, said holiday although still a rest day for them is included in the eleven regular holidays. For workers whose rest days do not fall on Sundays, the number of rest day is 52 days as there are 52 weeks in a year.
For those who do not work and are not considered paid on Saturdays and Sundays or rest days
Applicable Daily Rate x 262 = EMR 12
where 262 days/year
= 248 11 3
ordinary working days regular holidays special days (if considered paid; if actually worked, this is equivalent to3.9 days*)
____ 262 Total equivalent number of days in a year
Minimum Wage of Apprentices & Learners
Wages of apprentices, learners and shall in no case be less than seventy five percent (75%) of the applicable statutory wage rates. Apprentices and learners are those who are covered by apprenticeship/learners agreements duly approved by this Department.
Minimum Wage of House Helpers (R. A. 7655)
The minimum compensation of P800.00 a month is required for house helpers in Manila, Quezon, Pasay and Caloocan, Makati, Mandaluyong, Pasig, Muntilupa Cities and in the municipalities of San Juan, Navotas, Malabon, Paranaque, Las Pinas, Marikina, Valenzuela, Taguig and Pateros in Metro Manila and in highly urbanized cities. P550.00 a municipalities. month for those in other
House helpers who are receiving at least one thousand pesos (P1,000.00) a month shall be covered by the Social Security System.
Effect of Reduction of Workdays on Wages
In situations where the reduction in the number of regular working days is resorted to by the employer to prevent serious losses such as when there is a substantial slump in the demand for his goods or services or when there is lack of raw materials, the employer may deduct the wages corresponding to the days taken off from the workweek, consistent with the principle of “no work, no pay”. This is, of course, without prejudice to an agreement or policy, which provides otherwise.
Basic Wage of Special Groups of Workers
Apprentices and learners shall in no case receive
less than 75% of the applicable minimum wage rate prescribed in the Order. A recognized learnership and apprenticeship agreements entered into before the effectivity of the Order shall be considered as automatically modified insofar as their wage clauses are concerned to reflect the minimum wage rate prescribed under the Order.
Mobile and Branch Workers
The statutory minimum wage rates of workers,
who by nature of their work have to travel, shall be those applicable in the domicile or head office of the employer. The minimum wage rates of workers working in branches or agencies of establishments within the Region shall be those applicable in the place where they are stationed.
Transfer of Personnel
The transfer of personnel to areas outside
the Region shall not be a valid ground for the reduction of the wage rates being enjoyed by the workers prior to such transfer. The workers transferred to the other Regions with higher wage rates shall be entitled to the minimum wage rates applicable therein.
Retail establishment is one primarily engaged in
the sale of goods to end-users or personal or household use. A retail establishment that regularly engages in wholesale activities loses its retail character. Service establishment is one primarily engaged in the sale of service to individuals for their own or household use and is generally recognized as such.
Capital refers to paid-up capital at the end of the
last full accounting period in the case of corporations, the total invested capital at the beginning of the period under review in the case of partnerships and single proprietorship or the fund balance/members’ contribution at the beginning of the period under review in case of non-stock non-profit organizations.
HOURS WORKED The normal hours work of any covered employee shall not exceed eight (8) hours a day.
Hours Work Include
ALL Time during which an employee
is required to be on duty or to be at the prescribed workplace, and ALL Time during which an employee is suffered or permitted to work.
PRINCIPLES IN DETERMINING HOURS WORKED
IF the employee is required by his/her employer,
(regardless if hours are spent in productive labor or may involve physical or mental exertion). REST PERIOD within or outside work premises (5-20 min. or as allowed). IF work was necessary or it benefited the employer or the employee could not leave his/her work, IF, the work was with the knowledge of the employer or immediate supervisor.
PRINCIPLES IN DETERMINING HOURS WORKED
Work interruptions beyond the control of
employee and a. Immediate resumption of work requires the employee’s presence, and b. Interval is too brief.
PRINCIPLES IN DETERMINING HOURS WORKED
Waiting time or working while on call. Required attendance of the employee by the employer in lectures, meetings, training. Shortened regular meal break (not <20min.).
REPUBLIC ACT NO. 9178
“Barangay Micro Business Enterprises (BMBEs) Act 2002.”
Refers to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated shall not be more than Three Million Pesos (P3, 000,000.00). The above definition shall be subject to review and upward adjustment by SMED Council, as mandated under Republic Act No. 6977, as amended by Republic Act No. 8289.
Registration and Fees
The Office of the Treasurer of each city or municipality shall register the BMBEs and issue a Certificate of Authority to enable the BMBE to avail of the benefits under this Act. Any such application shall be processe within fifteen (15) working days upon submission of complete documents. Otherwise, the BMBEs shall be deemed registered.
Registration and Fees * The Municipality or City Mayor may appoint a
BMBE Registration Officer who shall be under the Office of the Treasurer. *Local government units (LGUs) are encourage to establish a One-Stop Business Registration Center to handle the efficient registration and processing of permits/licenses of BMBEs. *Likewise, LGUs shall make a periodic evaluation of the BMBEs’ financial status for monitoring and reporting purposes.
Registration and Fees
*The LGUs shall issue the Certificate of Authority
promptly and free of charge. However, to defray the administrative costs of registering and monitoring the BMBEs, the LGUs may charge a fee not exceeding One Thousand Pesos(P1,000.00). *The Certificate of Authority shall be effective for a period of two (2) years, renewable for a period of two (2) years for every renewal.
Who are Eligible to Register
person, natural or juridical, or cooperative, or association, having the qualifications as defined in Section 3(a) hereof may apply for registration as BMBE.
INCENTIVES AND BENEFITS
Exemption from Taxes and Fees – All BMBEs shall be exempt from income tax arising from the operations of the enterprise.
The LGUs are encouraged either to reduce the amount of local taxes, fees and charges imposed or to exempt the BMBEs from local taxes, fees and charges
b) Exemption from the Coverage of Minimum Wage Law. – The BMBEs shall be exempt from the coverage of the Minimum Wage law: Provided, That all employees covered under this Act shall be entitled to the same benefits given to any regular employee such as social security and healthcare benefits.