labor standards wages cases and doctrines

7/28/2019 Labor Standards Wages cases and doctrines

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WAGES It is the 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 method of calculatingthe same, payable by an ER to an EE

under a written or unwritten contract

of employment:

1. For work done or to be done,

for services rendered or to

be rendered; and includes.

2. Fair and reasonable value of

board, lodging, or other

facilities customarilyfurnished by the ER to ES as

determined by the SLE.

Q: To whom does the title on wages

apply?

A: GR: It applies to all employees

XPN:

1. Farm tenancy or leasehold;

2. Household or domestic helpers,

including family drivers and

persons working in the personal

service of another;

3. Home workers engaged in

needlework or in any cottage

industry duly registered in

accordance with law;

4. Workers in duly registeredcooperatives when so

recommended by the Bureau of

Cooperative Development and

upon approval of the Sec of

Labor and Employment.

5. Workers of a barangay micro

business enterprise (RA 9178)

FACILITIES AND SUPPLEMENTS

Q: Distinguish between facilities

and supplement

FACILITIES SUPPLEMENTS

Items of expensesnecessary forthe laborersand his familysexistence andsubsistence

NOTE: Does NOTinclude tools oftrade or articles/ servicesprimarily for thebenefit of theER or necessaryto the conductof the ERsbusiness.

Extraremuneration orspecial privilegesor benefits givento or received bythe laborers overand above theirordinary earningsor wages (AtokBig Wedge MiningCo. v. Atok Bigwedge MutualBenefit Assoc. )

Forms part ofthe wage

Independent ofwage

Deductible fromwage

Not wagedeductible

For the benefitof the workerand his family

Granted for theconvenience ofthe ER

Facilities For the benefit of the

EEs subsistence.

Supplements For the convenience

of the ER

Q: What is the criterion in determining

whether an item is a supplement or

facility?

A: The criterion is not so much with

the kind of the benefit or item (food,


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lodging, bonus or sick leave) given,

but its purpose. ( State Marine v. Cebu

Seamans Assn)

NOTE: In order that the cost be

charged against the EE, the lattersacceptance of such facilities be

voluntary.

Q: What are the requirements for

deductingvalues for facilities?

A:1. Proof must be shown that suchfacilitiesare customarily furnished by the trade2. The provision of deductiblefacilities mustbe voluntarily accepted in writing3.The facilities must be charged atfair and

reasonable value (Mabeza v. NLRC,G.R.No. 118506, April 18, 1997)

Wages v. Salaries

Gaa v.CA

WAGE SALARYCompensation formanual labor(skilled or

unskilled) alsoknown as bluecollared workers,paid at statedtimes andmeasured by theday, week, monthor season

Paid to whitecollared workersand denotes

higher degree ofemployment or asuperior grade ofservices andimplies a positionin office.

Considered payfor a lower andless responsiblecharacter of employment.

Out gesture of alarger and moreimportant service

GR: Not subject to

execution

XPN: Debtsincurred for food,shelter, clothingand medicalattendance.

Subject to

execution

Payment of wages

Bonus, not part of basic salary/wage

Non-diminution of benefits

Q: What is the concept of non-

diminution of benefits?

A: GR: Benefits being given to the EEs

cannot be taken back unilaterally by

the ER because the benefit has

become part of the employment

contract, whether written or unwritten.

XPN: To correct an error, otherwise, if

the error is not corrected for a

reasonable time, it ripens into a

company policy and EEs can demand

it as a matter of right.

Q: When is the ND of benefits

applicable?

A: It is applicable if it is shown that the

grant of benefit:

1. Based on an express policy of

the law; or

2. Has ripened into practice over a

long period of time and the

practice is consistent and


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deliberate and is not due to an

error in the

construction/application of a

doubtful or difficult question of

law.

No work no pay principle

Q: What does a fair days wage for a

days labor mean (no work no pay)?

A: GR: If there is no work performed

by the EE, w/o the fault of the ER,

there can be no wage or pay.

XPN: The laborer was able, willing and

ready to work but was:

1. Prevented by management;

2. Illegally locked out;

3. Illegally suspended;

4. Illegally dismissed

5. Otherwise illegally prevented

from working. ( Aklan electric

Coop. v. NLRC )

Equal pay for equal work

Prohibitions regarding wages (7)

Art. 112-118

Q: What are the labor code provisions

for wage protection?

A:Art. 112. Non-Interference in Disposalof Wages-Noemployer shall limit or otherwise interferewith thefreedom of any employee to dispose of hiswages.He shall not in any manner force, compelor obligehis employees to purchase merchandise,commodities or other properties from the employer

or from any other person, or otherwise make use ofany store or service of such employer orany otherperson.

Art. 113 Wage Deduction-No employer in

his ownbehalf or in behalf of any person, shallmake anydeduction from the wages of hisemployees,except:

(a) In cases where the worker is insuredwithhis consent by the employer, and thededuction is to recompense the employerfor the amount paid by him as premiumon the insurance;(b) For union dues, in cases where theright

of the worker or his union to check- offhas been recognized by the employer orauthorized in writing by the individualworker concerned; and

(c)In cases where the employer is authorized b

y law or regulations issued by

the Secretary of Labor.

Art. 114 No employer shall require his worker tomake deposits from which deductionsshall be

made for the reimbursement of loss of ordamageto tools, materials or equipments suppliedby theemployer; except when the employer isengaged insuch trades, occupations or business wherethepractice of making deductions or requiringdepositsis a recognized one, or is necessary, ordesirable asdetermined by the Secretary of Labor inappropriate rules and regulations.

Art. 115 Limitations-No deduction fromthedeposits of an employee for the actualamount ofthe loss or damage shall be made unlesstheemployee has been heard thereon, and hisresponsibility has been clearly shown.


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Art 116 Withholding of Wages andKickbacksProhibited-It shall be unlawful for anyperson,directly or indirectly, to withhold anyamount fromthe wages of a worker or induce him to

give up anypart of his wages by force, stealth,intimidation,threat or by any other means whatsoeverwithoutthe workers consent.

Art 117 Deduction to EnsureEmployment-It shall beunlawful to make any deduction from thewages ofany employee for the benefit of the employer or hisrepresentative or intermediary asconsideration ofa promise of employment or retention inemployment or retention in employment.

Art. 118 Retaliatory Measures-It shall beunlawfulfor an employer to refuse to pay orreduce thewages and benefits, discharge or in anymannerdiscriminate against any employee who hasfiledany complaint instituted any proceedingunder thisTitle or has testified or is about to testify

in suchproceedings.

Allowable deductions

Q: What is the rule in wagedeductions?A: GR: It is strictly prohibitedEXN:

1. Deductions for insurancepremiums (Art.113)

2. Union dues in cases wherethe right of the worker or hisunion to check off has beenrecognized by the ER orauthorized in writing by theindividual worker concerned(Art. 113)

NOTE: Art. 241(o) provides thatspecial assessments may bevalidly checked-off providedthat there is an individualwritten authorization duly

signed by every EE.3. SSS, Medicare and Pag-ibigpremiums

4. Taxes withheld5. Deductions under Art. 114 for

loss or damage to tools,materials or equipment

6. Deductions made with thewritten authorization of theEE for payment to a 3rd

person. (Sec 13,Rule VII,

Book III of the IRR)7. Deductions as disciplinary

measures for habitualtardiness (opinion datedMarch 10, 1975 of the SLE)

8. Agency fees under Art. 248(e)

9. Deductions for value of mealsand facilities freely agreedupon

10. In case where the EE is

indebted to the ER wheresuch indebtedness hasbecome due anddemandable. (Art. 1706, CivilCode)

11. In court awards, wagesmay be subject of executionor attachment, but only fordebts incurred for food,shelter, clothing, and medicalattendance. (Art. 1703, Civil

Code)12.

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