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TITLE II
Wages
Chapter 1
PRELIMINARY MATTERS
ARTICLE 97. Definitions. As used in this Title:
(a) Person means an individual, partnership, association, corporation,
business trust, legal representatives, or any organized group of persons.
(b) Employer includes any person acting directly or indirectly in the
interest of an employer in relation to an employee and shall include the
government and all its branches, subdivisions and instrumentalities, all
government-owned or controlled corporations and institutions, as well as
non-profit private institutions, or organizations.
(c) Employee includes any individual employed by an employer.
(d) 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, but does not include the manufacturing or
processing of sugar, coconuts, abaca, tobacco, pineapples or other farm
products.
(e) Employ includes to suffer or permit to work.
(f) Wage paid to any employee shall mean 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 calculating the same, which is payable by an employer to
an employee under a written or unwritten contract of employment for work
done or to be done, or for services rendered or to be rendered and includes
the fair and reasonable value, as determined by the Secretary of Labor and
Employment, of board, lodging, or other facilities customarily furnished by
the employer to the employee. Fair and reasonable value shall not include
any profit to the employer, or to any person affiliated with the employer.
Wages remunerations or earnings payable by an employer to
an employee for work done or to be done or for services
rendered or to be rendered.
- It should arise from employer-employee relationship
- Includes the fair and reasonable value of board, lodging, and
other facilities customarily furnished by the employer to the
employee
- Customarily founded on long-established and constant practice
connoting regularity
WAGES SALARY
Both refer to a reward or recompense for services performed
Compensation for manual labor, Denotes a higher grade of
skilled or unskilled, paid at stated employment, or a superior grade of
times and measured by the day, services and implies a position in
week, month, or season office
Indicates considerable pay for lower Suggestive of a higher and more
and less responsible character of important service
employment
Exempt from attachment or Not exempt
execution
Basic Wage regular base pay of an employee
Facilities items of expense necessary for the laborers and his
familys existence and subsistence
- The cost of facilities furnished by the employer may be deducted
or charged against an employee under the ff conditions:
1. The facilities must be customarily furnished by the trade
2. The provisions of deductible facilities must be voluntarily
accepted in writing by the employee
3. The facilities must be charged at fair and reasonable value
Supplements extra remuneration or special privileges or
benefits given to or received by the laborers over and above their
ordinary earnings or wages.
- Criterion whether a benefit is a supplement or a facility: purpose
- Purpose: primarily for the benefit of the employee, not
considered as facility
- Ex. Transportation allowance
- Sales Commission forms part of wage/salary where there exists
e-e relationship
Bonus an amount granted and paid to an employee for his
industry and loyalty which contributed to the success of the
employers business and made possible the realization of profits
- GR: not a demandable and enforceable obligation
- Exceptions:
1. If the grant thereof is the result of an agreement
2. If made part of the wages
Bonus is considered part of the wages:
a. If it is given in a fixed amount without any
condition, regardless of w/n profits are
realized
b. If it has ripened into practice by virtue of
its long and regular concession
- To be considered a regular practice, the giving of
bonus should have been done consistently, voluntarily
and deliberately over a long period of time.
13th month pay extra remuneration given to an employee in an
amount equivalent to 1/12 of the basic salary earned by an
employee within a calendar year
- In its computation, only the basic salary should be
considered
- Granted only to employees who has rendered at least
one month service
Overload excess of the normal or regular teaching load
- Extra pay not part of the basic salary, not included in
the computation of the 13th month pay
Entitled to 13th month pay:
1. Rank-and-file employees who have worked for at least 1
month during a calendar yr
2. Employees who are paid on piece-work basis
3. Employees who are paid a fixed or guaranteed wage plus
commission
4. Private school teachers who have worked at least 1 month
within the yr
5. Employees working in two or more private firms whether
on full-time or part-time basis
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6. Employees who resigned or whose services were
terminated before the payment of the 13th month pay
Employers exempted from the 13th month pay law:
1. The govt and any of its subsidiaries, including GOCCs,
except those corps operating essentially as private
subsidiaries of the govt
2. Those already paying their employees a 13th month pay or
more in a calendar yr or its equivalent
3. Employers of household helpers and persons in the
personal service of another in relation to such workers
4. Those paid purely on commission, boundary or task basis,
and those who are paid fixed amount for performing
specific work, except where the workers are paid on a
piece-rate basis
Time of payment of 13th month pay: December 24 of each yr
14th month pay gratuitous
ARTICLE 98. Application of Title. This Title shall not apply to farm tenancy
or leasehold, domestic service and persons working in their respective
homes in needle work or in any cottage industry duly registered in
accordance with law.
Exceptions on the application of the Coverage of the Law on
Wages:
1. Household or domestic helpers
2. Homeworkers engaged in needlework
3. Workers employed in any cottage industry duly registered
in accordance with law, if performed by workers in their
respective homes
4. Workers in any duly registered cooperative when so
recommended by the Bureau of Cooperative Development
and upon approval of the Secretary of DOLE
5. Farm tenancy or leasehold
Chapter 2
MINIMUM WAGE RATES
ARTICLE 99. Regional minimum wages. The minimum wage rates for
agricultural and non-agricultural employees and workers in each and every
region of the country shall be those prescribed by the Regional Tripartite
Wages and Productivity Boards. (As amended by Section 3, Republic Act No.
6727, June 9, 1989).
Purpose of the law: assure decent living conditions of the worker
Basis of minimum wage: not exceeding 8 hrs/day
Methods employed in fixing the minimum wage:
1. Floor-wage method
- Prescribes a determinate amount that would be
added to the prevailing statutory minimum wage
2. Salary-ceiling method
- Prescribes a wage adjustment that would apply only
to employees receiving a certain denominated salary
ceiling
Minimum wage varies from region to region
Factors to be considered in fixing the minimum wage:
1. Demand for living wages
2. Wage adjustment vis--vis consumer price index
3. Cost of living and changes or increase therein
4. The needs of workers and their families
5. The need to induce industries to invest on the countryside
6. Improvements in the standards of living
7. The prevailing wage levels
8. Faire retur of capital invested and capacity to pay the
workers
9. Effects on employment generation and family income; and
10. The equitable distribution of income and wealth along the
imperatives of economic and social development
Prohibitions on minimum wage fixed by law:
1. It cannot be waived (mandatory)
2. Not bargainable
Sanctions for failure or refusal to comply to pay the prescribed
wage increase:
1. Criminal liability 25k - 100k; 2-4 yrs
2. Double indemnity double the unpaid benefits owing to
employee
Agriculture farming activities in conjunction with farming
operations. It includes:
1. The cultivation or tillage of soil
2. Dairying
3. The production, cultivation, growing and harvesting of
agricultural and horticultural commodities; and
4. The raising of livestock or poultry
The minimum wage rate of agricultural workers is different from
that of non-agricultural
Agricultural employee a person who is employed in an
undertaking principally engaged in the foregoing activities
ARTICLE 100. 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.
When non-diminution of benefits is not violated:
1. The action does not result in the reduction or elimination of
benefits
2. If it deducts the fair and reasonable value of facilities
3. Where an employer reduces the bonuses it used to grant its
employees
The grant of benefits for a long period of time may ripen into a
company practice and create a vested right upon the employees.
To be considered as such, it should have been observed over a
long period of time, and must be shown to have been consistent
and deliberate.
ARTICLE 101. Payment by results. - (a) The Secretary of Labor and
Employment shall regulate the payment of wages by results, including
pakyao, piecework, and other non-time work, in order to ensure the
payment of fair and reasonable wage rates, preferably through time and
motion studies or in consultation with representatives of workers and
employers organizations.
Categories of workers paid by results:
1. Those whose time and performance are supervised by the
employer: control is over the manner as to how the work is
to be performed
2. Those whose time and performance are unsupervised by
the employer: control is over the result of the work
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Piece workers connote a laborer or worker with no fixed salary,
wages or remuneration but receiving as compensation from his
employer depending upon the work done or the result of the said
work irrespective of the amount of time employed
The compensation of workers paid by results should not be less
than the statutory minimum wage for an 8-hr work or a
proportion thereof for less than 8 hrs work
In the absence of such prescribed wage rates for piece-rate
workers, the ordinary minimum wage rates prescribed by the
RTWPB shall apply.
Chapter 3
PAYMENT OF WAGES
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. 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
specified in appropriate regulations to be issued by the Secretary of Labor
and Employment or as stipulated in a collective bargaining agreement.
Legal Tender that currency which has been made suitable by law for the
purpose of tender of payment of debts.
- All notes and coins issued by the Bangko Sentral ng Pilipinas are
legal tender
A check, whether a managers or ordinary, is not a legal tender
Payment of wages in legal tender, mandatory
- Purpose: to prevent the employee from being
shortchanged and to ensure that the compensation
given could be used by the employee for any purpose
that he wants
If an employer pays the wages in a medium other than legal
tender, it will not produce the effect of payment.
- Effect: it will not discharge the employer from liability
for unpaid wages
When payment of wages by check or money order is allowed:
1. When such manner of payment is customary on the date of
the effectivity of the LC
2. When so stipulated in a CBA
3. When there is a bank or other facility for encashment
within the radius of 1 km from the workplace, provided:
a. that the employer or any of his agent does not receive
any pecuniary benefit directly or indirectly from the
arrangement,
b. that the employees are given reasonable time during
banking hours to withdraw their wages from the bank
during company time,
c. that the employee consents to such an agreement, in
the absence of a collective agreement on the matter
ARTICLE 103. Time of payment. Wages shall be paid at least once every
two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.
If on account of force majeure or circumstances beyond the employers
control, payment of wages on or within the time herein provided cannot be
made, the employer shall pay the wages immediately after such force
majeure or circumstances have ceased. No employer shall make payment
with less frequency than once a month.
The payment of wages of employees engaged to perform a task which
cannot be completed in two (2) weeks shall be subject to the following
conditions, in the absence of a collective bargaining agreement or
arbitration award:
(1) That payments are made at intervals not exceeding sixteen (16) days, in
proportion to the amount of work completed;
(2) That final settlement is made upon completion of the work.
Frequency of Payment
GR: wages shall be paid not less than once every 2 weeks or twice
a month at intervals not exceeding 16 days
Exception: in cases of wages pertaining to task which cannot be
finished in 2 weeks, payment thereof shall be made at intervals
not exceeding 16 days in proportion to the amount of work
completed. Final settlement shall be made immediately upon
completion of work.
Delayed payment of wages may be excused on account of:
1. Force majeure events which arise from legitimate or
illegitimate acts of persons other than the employer, such
as war, robbery, etc
2. Circumstances beyond control fortuitous events
independent of human intervention, such as floods,
typhoons, earthquakes, and other natural calamities
Payment of wages should be made immediately thereafter
No work, no pay
- Exceptions:
Employee illegally:
a. locked out
b. Dismissed
c. Suspended
ARTICLE 104. Place of payment. 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.
Place of payment:
GR: at or near the place of undertaking
Exceptions:
1. Actual or impending emergencies caused by fire, flood, etc
rendering payment thereat impossible
2. When the employer provides free transportation back and
forth
3. Under any other analogous circumstances, provided that
the time spent by the employees in collecting their wages
shall be considered as compensable hours of work
Payment in recreational places prohibited
Payment through ATM, allowed under certain conditions
ARTICLE 105. Direct payment of wages. Wages shall be paid directly to the
workers to whom they are due, except:
(a) In cases of force majeure rendering such payment impossible or under
other special circumstances to be determined by the Secretary of Labor and
Employment in appropriate regulations, in which case, the worker may be
paid through another person under written authority given by the worker
for the purpose; or
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(b) Where the worker has died, in which case, the employer may pay the
wages of the deceased worker to the heirs of the latter without the
necessity of intestate proceedings. The claimants, if they are all of age, shall
execute an affidavit attesting to their relationship to the deceased and the
fact that they are his heirs, to the exclusion of all other persons. If any of the
heirs is a minor, the affidavit shall be executed on his behalf by his natural
guardian or next-of-kin. The affidavit shall be presented to the employer
who shall make payment through the Secretary of Labor and Employment or
his representative. The representative of the Secretary of Labor and
Employment shall act as referee in dividing the amount paid among the
heirs. The payment of wages under this Article shall absolve the employer of
any further liability with respect to the amount paid.
GR: Wages should be paid directly to the employee
Exceptions:
1. Where the employer is authorized in writing by the
employee to pay his wages to a member of the family
2. Where payment to another person of any part of the
employees wage is authorized by existing law
3. In case of death of employee
4. In case of force majeure
If a specific job was contracted by a group, payment of wages
may be coursed through the leader of the group
Payment of wages of an employee who has died: to the heirs
who should submit to the employer an affidavit attesting to their
relationship with their deceased and the fact that they are his
heirs, to the exclusion of all other persons.
ARTICLE 106. Contractor or subcontractor. Whenever an employer enters
into a contract with another person for the performance of the formers
work, the employees of the contractor and of the latters subcontractor, if
any, shall be paid in accordance with the provisions of this Code.
In the event that the contractor or subcontractor fails to pay the wages of
his employees in accordance with this Code, the employer shall be jointly
and severally liable with his contractor or subcontractor to such employees
to the extent of the work performed under the contract, in the same
manner and extent that he is liable to employees directly employed by him.
The Secretary of Labor and Employment may, by appropriate regulations,
restrict or prohibit the contracting-out of labor to protect the rights of
workers established under this Code. In so prohibiting or restricting, he may
make appropriate distinctions between labor-only contracting and job
contracting as well as differentiations within these types of contracting and
determine who among the parties involved shall be considered the
employer for purposes of this Code, to prevent any violation or
circumvention of any provision of this Code.
There is labor-only contracting where the person supplying workers to an
employer does not have substantial capital or investment in the form of
tools, equipment, machineries, work premises, among others, and the
workers recruited and placed by such person are performing activities which
are directly related to the principal business of such employer. In such cases,
the person or intermediary shall be considered merely as an agent of the
employer who shall be responsible to the workers in the same manner and
extent as if the latter were directly employed by him.
Contracting/subcontracting one whereby an employer engages
the services of a contractor to perform a certain work, task or job
on his account under his own responsibility free from the control
and direction of his employer in all matters except as to the
result of the work
- Not illegal per se. (refer to Arts. 106-107)
Requisites of valid contracting/ subcontracting:
1. The contractor or subcontractor must have a distinct and
independent business and must undertake to perform the
job, work or service on his account, under his own
responsibility, according to his own manner and method,
free from control and direction of the principal in all
matters connected with the performance of the work,
except as to the results thereof; and
2. The contractor or subcontractor must have substantial
capital or investment in the form of tools, equipment,
machineries, work premises and other materials which are
necessary in the conduct of the business
Substantial capital or investment: Php3M
Legal effect of legitimate contracting or subcontracting
: does not create an e-e relationship between himself
and the employees of the contractor
: The employees of the contractor remain the
contractors employees and his alone.
However, when the contractor fails to pay the wages of his
employees in accordance with the LC, the employer becomes
jointly and severally liable with his contractor for such wages to
the extent of the work performed under the contract
The party with whom an independent contractor deals with is
solidarily liable with the latter for unpaid wages, and only to that
extent and for that purpose that the latter is considered a direct
employer.
When contracting or subcontracting is illegal:
1. Labor-only contracting an arrangement whereby the
contractor who does not have substantial capital or
investment in the form of tools, equipment, machineries,
and work premises, merely recruits, supplies or places
workers only, to a principal employer to perform a job,
work or activity that is directly related to the main business
of the principal employer.
Elements:
a. The contractor supplies workers only to a
principal employer
b. The workers perform activities that are directly
related to the main business of the principal
c. The contractor does not have substantial capital
or investment to actually perform the job, work
or service under its own account or
responsibility.
Legal effect
: The law establishes an e-e relationship between the
principal employer and the employees of the
contractor
: The contractor is considered as a mere agent of the
principal employer, and therefore, both the principal
employer and the contractor are solidarily liable for all
rightful claims of the employees
2. Contracting out work with a cabo
Cabo refers to a person or group of persons or to a
labor group which, in the guise of a lab org, supplies
workers to an employer, with or without monetary or
other consideration, whether in the capacity of an
agent of the employer or as an ostensible
independent contractor.
3. Contracting out work through an in-house agency
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In-house agency refers to a contractor or - The principal decides the job or service to be
subcontractor engaged in the supply of labor which is contracted out, while the contractor undertakes to
owned, managed or controlled by the principal and perform the job or service, and the workers
which operates solely for the principal. accomplish the job or service
4. Contracting out work that is directly related to the business
or operation of the principal by reason of a strike or Factors determinative of independent contractorship:
lockout, whether actual or imminent
- A criterion for determining w/n there is labor-only 1. Whether the contractor is carrying on an independent
contracting and contemplates employees hired business
through a contractor or intermediary. 2. Nature and extent of work
Illegal only if the job, work, or service contracted is 3. Skill required
directly related to the business of the principal. 4. Term and duration of the relationship
5. Contracting out work when not done in good faith and not 5. Existence of a contract for the performance of a specified
justified by the exigencies of the business and the same piece of work
results in the termination of regular employees, reduction 6. Control and supervision of the work
of work hours, or reduction or splitting of the bargaining 7. Control of the premises
unit 8. The duty to supply the premises, tools, appliances, material
6. Contracting out work being performed by union members and labor; and
when such will interfere with, restrain or coerce employees 9. the mode, manner, and terms of payment
in the exercise of their right to self-organization
Illegal only when such will interfere with, restrain or Control factor in an independent contractorship: confined to the
coerce employees in the exercise of their right to self- results
organization. If an independent contractorship is not established, the
relationship would be regarded as a labor-only arrangement, in
Other prohibited activities: (badfaith) which case, the relationship of e-e will be deemed to exist
1. Requiring him to perform functions, which are currently between the principal and the employees of the contractor
being performed by the regular employees of the principal o Exceptions:
or of the contractor or of the subcontractor 1. Joint venture arrangement
2. Requiring him to sign as a precondition to employment or 2. Contract of agency
continued employment, an antedated resignation letter, a
blank payroll; a waiver of labstand including minimum Job contracting Labor-only contracting
wages and social or welfare benefits, or a quitclaim The contractor provides services The contractor provides man-power
releasing the principal contractor or subcontractor from any only
liability as to payment of future claims No e-e relationship exists between There exists an e-e relationship
3. Requiring him to sign a contract fixing the period of the employees of the contractor and created by law between the
employment to a term shorter than the term of the the principal employer principal employer and the
contract between the principal and the contractor or employees of the labor-only
subcontractor, unless the latter contract is divisible into contractor
phases for which substantially different skills are required The principal employer is considered Employer is considered a direct
and this is made known to the employee at the time of only an indirect employer employer
engagement. The principal employer and the The principal employer and the
contractor are solidarily liable only labor-only contractor are solidarily
for unpaid wages liable for all the rightful claims of
ARTICLE 107. Indirect employer. The provisions of the immediately the contractors employees
preceding article shall likewise apply to any person, partnership, association
or corporation which, not being an employer, contracts with an independent
contractor for the performance of any work, task, job or project. ARTICLE 108. Posting of bond. An employer or indirect employer may
require the contractor or subcontractor to furnish a bond equal to the cost
Independent contractor a person who carries on an of labor under contract, on condition that the bond will answer for the
independent business and undertakes the contract work on his wages due the employees should the contractor or subcontractor, as the
own account, under his own responsibility, according to his own case may be, fail to pay the same.
manner and method, free from the control and direction of his
employer or principal in all matters connected with the Purpose: intended to guarantee the payment of wages due the
performance f the work except as to the result thereof; and has employee should the contractor or subcontractor fail to pay the
substantial capital or investment in the form of tools, equipment, same
machineries, work premises, and other materials which are
necessary in the conduct of the business.
Mere absence of bond is not a controlling factor in determining ARTICLE 109. Solidary liability. The provisions of existing laws to the
whether a person is an independent contractor. contrary notwithstanding, every employer or indirect employer shall be held
Contractors and subcontractors are required to register with the responsible with his contractor or subcontractor for any violation of any
DOLE. Failure to register shall give rise to the presumption that provision of this Code. For purposes of determining the extent of their civil
the contractor is engaged in labor-only contract. liability under this Chapter, they shall be considered as direct employers.

Trilateral relationship exists in legitimate labor contracting Purpose: intended to facilitate, if not guarantee, payment of
workers wages, including the statutory minimum wage
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Extent of liability of indirect employer: payment of wages
The solidarity liability of an indirect employer is limited only to
the extent of the work performed under the contract
An indirect employer cannot be held liable for:
1. Backwages
2. Separation pay
3. Damages arising from the acts or omissions of his
independent contractor
The imposition of solidary liability does not preclude an indirect
employer from seeking reimbursement from the contractor for
whatever amount he pays to the contractors employees.
ARTICLE 110. Worker preference in case of bankruptcy. In the event of
bankruptcy or liquidation of an employers business, his workers shall enjoy
first preference as regards their wages and other monetary claims, any
provisions of law to the contrary notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before claims of the government and
other creditors may be paid. (As amended by Section 1, Republic Act No.
6715, March 21, 1989).
Applies only in case of bankruptcy or judicial liquidation of the
employer
Before the workers preference may be invoked, there must first
be a declaration of bankruptcy or judicial liquidation of the
employers business
Rationale: premised upon the very nature of a preferential right
of credit
Article 110 can only be invoked upon the institution of insolvency
or judicial liquidation proceedings. It does not apply to
rehabilitation proceedings because a company under
rehabilitation continues to operate, hence, its assets are not up
for distribution to creditors
3 general categories:
1. Special preferred credits (Articles 2241 and 2242 of the CC)
- Constitute liens or encumbrances on the specific
property to which they relate
- Must first be discharged out of the proceeds of the
property to which they relate, before ordinary
preferred creditors may claim to any part of such
proceeds
a. Claims for laborers wages, on the goods
manufactured or the work done
b. Claims of laborers, masons, mechanics and other
workmen, as well as architects, engineers and
contractors, engaged in the construction,
reconstruction or repair of buildings, canals or
other works, upon said buildings, canals, or
other works.
2. Ordinary preferred credits (Article 2244)
- Create no liens on specific property
- They simply create rights in favor of certain creditors
to have cash and other assets of the insolvent applied
in a certain consequence or order of priority
3. Common credits (Article 2245)
- Enjoy no preference
Article 110 does not constitute a lien on the property of the
insolvent debtor in favor of workers. It is just a preference of
credit in their favor a preference in application.
Preference of credits applies only to claims which do not attach
to specific properties, while a lien attaches to a particular
property.
The following monetary claims of workers falling within the ambit
of special preferred credits are to be paid only after the taxes on
the specific property involved have been paid:
a. Claims for laborers wages, on good
manufactured or the work done
b. Claims of laborers, masons and other workmen,
architects, engineers and contractors, engaged
in the construction, reconstruction or repair of
buildings, canals or other works, upon said
buildings, canals or other works
Mortgage is a special preferred credit
ARTICLE 111. Attorneys fees. (a) In cases of unlawful withholding of
wages, the culpable party may be assessed attorneys fees equivalent to ten
percent of the amount of wages recovered.
(b) It shall be unlawful for any person to demand or accept, in
any judicial or administrative proceedings for the recovery of
wages, attorneys fees which exceed ten percent of the amount of
wages recovered.
Attorneys fees may be awarded:
1. In cases of unlawful withholding of wages
2. In cases where the employee was forced to litigate with
third persons or incur expenses to protect his rights and
interest
Maximum amount of AFs: 10% of the amount of wages
recovered. 10% may be reduced if it is found to be utterly
excessive and unreasonable or when the questions involved are
neither novel nor difficult
AFs need not necessarily be borne by the losing party. It may be
ordered deducted from the total amount due the winning party.
Only lawyers are entitled to AFs.
- Exception: a lawyer member of the PAO
Chapter 4
PROHIBITIONS REGARDING WAGES
ARTICLE 112. Non-interference in disposal of wages. No employer shall
limit or otherwise interfere with the freedom of any employee to dispose of
his wages. He shall not in any manner force, compel, or oblige his employees
to purchase merchandise, commodities or other property from any other
person, or otherwise make use of any store or services of such employer or
any other person.
This article stresses the right of an employee to freely dispose of
his wages.
ARTICLE 113. Wage deduction. No employer, in his own behalf or in behalf
of any person, shall make any deduction from the wages of his employees,
except:
(a) In cases where the worker is insured with his consent by the employer,
and the deduction is to recompense the employer for the amount paid by
him as premium on the insurance;
(b) For union dues, in cases where the right of the worker or his union to
check-off has been recognized by the employer or authorized in writing by
the individual worker concerned; and
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(c) In cases where the employer is authorized by law or regulations issued by
the Secretary of Labor and Employment.
Purpose: to protect the employee from unwarranted practices
that diminish his compensation without his knowledge and
consent
Lawful deductions:
1. Insurance premiums
2. Unions dues
3. Agency fees (written authorization, not required)
4. Special assessments or extraordinary fees levied by a CB
agent against its members
5. Fair and reasonable value of facilities (there must be
voluntary acceptance by the employee)
6. Obligations of an employee with a third person (there must
be written authorization)
7. Cost of lost or damaged tools, materials or equipment
supplied by the employer to the employee in trades,
occupation or business where the practice of making
deductions is recognized
8. Due and demandable debt of an employee to his employer
9. Deductions made in compliance with writs of execution or
attachment against the employee for debts incurred for
food, shelter, clothing, and medical attendance
10. Income tax
11. Employees share in the premium contributions to the SSS
12. Employees share in the premium contributions to the
National Health Insurance Program; and
13. Employees share in the premium contributions to the
Home Development Mutual Fund
14. Deductions for absence or tardiness (no work, no pay)
15. Deductions for cost of uniforms (if requested or with the
consent of the employees. Otherwise, not deductible)
If the employer does not comply with its obligation to check-off
union dues and agency fees, it cannot be held liable for the union
dues and agency fees that it failed to deduct from the salaries of
the employees.
The employers failure to make requisite deductions may
constitute a violation of contractual commitment for which it
may incur liability for ULP.
The authorization to check-off union dues is co-terminus with the
union affiliation or membership of the employees
The employees acceptance of benefits resulting from the CBA
justifies the deduction of agency fees from his salary.
3 requisites for a valid check-off of special assessments or other
extraordinary expenses:
1. Written resolution by a majority of all the members at a
general membership meeting duly called for the purpose
2. Minutes of the meeting duly recorded by the secretary of
the union and attested to by the union president, with a list
of all members present, the votes cast, and the purpose of
the special assessment; and
3. Individual written check-off authorization by the employees
concerned
- Strict compliance is required
ARTICLE 114. Deposits for loss or damage. No employer shall require his
worker to make deposits from which deductions shall be made for the
reimbursement of loss of or damage to tools, materials, or equipment
supplied by the employer, except when the employer is engaged in such
trades, occupations or business where the practice of making deductions or
requiring deposits is a recognized one, or is necessary or desirable as
determined by the Secretary of Labor and Employment in appropriate rules
and regulations.
When an employer can require deposits for loss or damage:
1. When the employer is engaged in such trades, occupations
or business where the practice of making deductions or
requiring deposits is a recognized one; or
2. When necessary or desirable as determined by the
Secretary of Labor in appropriate rules and regulations
ARTICLE 115. Limitations. No deduction from the deposits of an employee
for the actual amount of the loss or damage shall be made unless the
employee has been heard thereon, and his responsibility has been clearly
shown.
Conditions for effecting deductions from deposits:
1. That the employee concerned is clearly shown to be
responsible for the loss
2. That the employee is given reasonable opportunity to show
cause why deduction should not be made
3. That the amount of such deductions is fair and reasonable
and shall not exceed the actual loss or damage; and
4. The deduction from the wages of the employee does not
exceed 20% of the employees wages in a week.
ARTICLE 116. Withholding of wages and kickbacks prohibited. - It shall be
unlawful for any person, directly or indirectly, to withhold any amount from
the wages of a worker or induce him to give up any part of his wages by
force, stealth, intimidation, threat or by any other means whatsoever
without the workers consent.
Acts prohibited:
1. Withholding any amount from the wages of a worker
2. Inducing an employee to give up any part of his wages by
force, stealth, intimidation, threat or by any other means
without the workers consent
Lawful withholding:
1. To set-off an employees due and demandable debt to the
employer; or
2. To comply with writs of execution or attachment against
the employee for debts incurred for food, shelter, clothing
and medical attendance
ARTICLE 117. Deduction to ensure employment. It shall be unlawful to
make any deduction from the wages of any employee for the benefit of the
employer or his representative or intermediary as consideration of a
promise of employment or retention in employment.
Scope of prohibition deduction from wages of an employee
from the benefit of the employer or his representative as
consideration of:
1. Promise of employment
2. Retention of employment
ARTICLE 118. Retaliatory measures. It shall be unlawful for an employer to
refuse to pay or reduce the wages and benefits, discharge or in any manner
discriminate against any employee who has filed any complaint or instituted
any proceeding under this Title or has testified or is about to testify in such
proceedings.
Significance: freedom accorded to an employee to assert his
rights under Title II, Book 3 of the LC, without fear of retaliation.
8|vmbt
ARTICLE 119. False reporting. It shall be unlawful for any person to make
any statement, report, or record filed or kept pursuant to the provisions of
this Code knowing such statement, report or record to be false in any
material respect.
Records required of an employer to keep:
1. Payrolls
2. Time records of employees
3. Time records of executives
4. Records of workers paid by results
All employment records of employees shall be kept and
maintained in or about the premises of the workplace, i.e., the
branch office or establishment, where the employees concerned
are regularly assigned.
Chapter 5
WAGE STUDIES, WAGE ARRANGEMENTS, AND WAGE DETERMINATION
ARTICLE 120. Creation of National Wages and Productivity Commission. -
There is hereby created a National Wages and Productivity Commission,
hereinafter referred to as the Commission, which shall be attached to the
Department of Labor and Employment (DOLE) for policy and program
coordination. (As amended by Republic Act No. 6727, June 9, 1989).
NWPC the advisory body to the President of the Philippines and
Congress on matters relating to wages, income, and productivity.
- It exercises the a technical and administrative
supervision over the RTWPB
Composition:
1. Ex-officio chairman Secretary of DOLE
2. Ex-officio Vice Chairman Director-General of the NWPC
3. Members:
i. Executive Director of the NWPC
ii. 2 members from the workers sector; and
iii. 2 member from the employers sector
The members representing the labor and management shall be
appointed by the President of the Philippines upon
recommendation of the Secretary of DOLE, on the basis of the list
of nominees submitted by the workers and employers sectors,
for a term of 5 yrs, and shall have the same rank, emoluments,
allowances, and other benefits as those prescribed by law for
labor and management representatives in the Employees
Compensation Commission.
ARTICLE 121. Powers and functions of the Commission. The Commission
shall have the following powers and functions:
(a) To act as the national consultative and advisory body to the President of
the Philippines and Congress on matters relating to wages, incomes and
productivity;
(b) To formulate policies and guidelines on wages, incomes and productivity
improvement at the enterprise, industry and national levels;
(c) To prescribe rules and guidelines for the determination of appropriate
minimum wage and productivity measures at the regional, provincial, or
industry levels;
(d) To review regional wage levels set by the Regional Tripartite Wages and
Productivity Boards to determine if these are in accordance with prescribed
guidelines and national development plans;
(e) To undertake studies, researches and surveys necessary for the
attainment of its functions and objectives, and to collect and compile data
and periodically disseminate information on wages and productivity and
other related information, including, but not limited to, employment, cost-
of-living, labor costs, investments and returns;
(f) To review plans and programs of the Regional Tripartite Wages and
Productivity Boards to determine whether these are consistent with national
development plans;
(g) To exercise technical and administrative supervision over the Regional
Tripartite Wages and Productivity Boards;
(h) To call, from time to time, a national tripartite conference of
representatives of government, workers and employers for the
consideration of measures to promote wage rationalization and
productivity; and
(i) To exercise such powers and functions as may be necessary to implement
this Act.
The Commission shall be composed of the Secretary of Labor and
Employment as ex-officio chairman, the Director-General of the National
Economic and Development Authority (NEDA) as ex-officio vice-chairman,
and two (2) members each from workers and employers sectors who shall
be appointed by the President of the Philippines upon recommendation of
the Secretary of Labor and Employment to be made on the basis of the list
of nominees submitted by the workers and employers sectors, respectively,
and who shall serve for a term of five (5) years. The Executive Director of the
Commission shall also be a member of the Commission.
The Commission shall be assisted by a Secretariat to be headed by an
Executive Director and two (2) Deputy Directors, who shall be appointed by
the President of the Philippines, upon the recommendation of the Secretary
of Labor and Employment.
The Executive Director shall have the same rank, salary, benefits and other
emoluments as that of a Department Assistant Secretary, while the Deputy
Directors shall have the same rank, salary, benefits and other emoluments
as that of a Bureau Director. The members of the Commission representing
labor and management shall have the same rank, emoluments, allowances
and other benefits as those prescribed by law for labor and management
representatives in the Employees Compensation Commission. (As amended
by Republic Act No. 6727, June 9, 1989).
The NWPC has the power to prescribe rules and guidelines for
the determination of appropriate minimum wage and
productivity measures at regional, provincial or industry levels. It
is also empowered to formulate policies and guidelines on wages,
incomes and productivity improvement at the enterprise,
industry and national levels.
ARTICLE 122. Creation of Regional Tripartite Wages and Productivity
Boards. - There is hereby created Regional Tripartite Wages and Productivity
Boards, hereinafter referred to as Regional Boards, in all regions, including
autonomous regions as may be established by law. The Commission shall
determine the offices/headquarters of the respective Regional Boards.
9|vmbt
The Regional Boards shall have the following powers and functions in their
respective territorial jurisdictions:
(a) To develop plans, programs and projects relative to wages, incomes and
productivity improvement for their respective regions;
(b) To determine and fix minimum wage rates applicable in their regions,
provinces or industries therein and to issue the corresponding wage orders,
subject to guidelines issued by the Commission;
(c) To undertake studies, researches, and surveys necessary for the
attainment of their functions, objectives and programs, and to collect and
compile data on wages, incomes, productivity and other related information
and periodically disseminate the same;
(d) To coordinate with the other Regional Boards as may be necessary to
attain the policy and intention of this Code;
(e) To receive, process and act on applications for exemption from
prescribed wage rates as may be provided by law or any Wage Order; and
(f) To exercise such other powers and functions as may be necessary to carry
out their mandate under this Code.
Implementation of the plans, programs, and projects of the Regional Boards
referred to in the second paragraph, letter (a) of this Article, shall be
through the respective regional offices of the Department of Labor and
Employment within their territorial jurisdiction; Provided, however, That the
Regional Boards shall have technical supervision over the regional office of
the Department of Labor and Employment with respect to the
implementation of said plans, programs and projects.
Each Regional Board shall be composed of the Regional Director of the
Department of Labor and Employment as chairman, the Regional Directors
of the National Economic and Development Authority and the Department
of Trade and Industry as vice-chairmen and two (2) members each from
workers and employers sectors who shall be appointed by the President of
the Philippines, upon the recommendation of the Secretary of Labor and
Employment, to be made on the basis of the list of nominees submitted by
the workers and employers sectors, respectively, and who shall serve for a
term of five (5) years.
Each Regional Board to be headed by its chairman shall be assisted by a
Secretariat.
(As amended by Republic Act No. 6727, June 9, 1989).
RTWPB composition:
a. Chairman regional director of the DOLE
b. Vice-chairman regional director of the NEDA
- Regional director of DTI
c. Members 2 from the workers sector
- 2 from the employers sector
Representatives of the workers and employers sector shall be
appointed by the President of the Philippines upon
recommendation of the Secretary of DOLE, and shall serve a term
of 5 yrs
The RTWPB exercises technical supervision over the regional
office of the DOLE with respect to the implementation of plans,
programs and projects relative to wages, incomes and
productivity improvement for their respective regions.
Minimum wage fixing is a function of the RTWPB
RTWPB has no power to promulgate rules and guidelines for the
determination of appropriate minimum wage and productivity
measures.
ARTICLE 123. Wage Order. Whenever conditions in the region so warrant,
the Regional Board shall investigate and study all pertinent facts; and based
on the standards and criteria herein prescribed, shall proceed to determine
whether a Wage Order should be issued. Any such Wage Order shall take
effect after fifteen(15) days from its complete publication in at least one (1)
newspaper of general circulation in the region.
In the performance of its wage-determining functions, the Regional Board
shall conduct public hearings/consultations, giving notices to employees and
employers groups, provincial, city and municipal officials and other
interested parties.
Any party aggrieved by the Wage Order issued by the Regional Board may
appeal such order to the Commission within ten (10) calendar days from the
publication of such order. It shall be mandatory for the Commission to
decide such appeal within sixty (60) calendar days from the filing thereof.
The filing of the appeal does not stay the order unless the person appealing
such order shall file with the Commission, an undertaking with a surety or
sureties satisfactory to the Commission for the payment to the employees
affected by the order of the corresponding increase, in the event such order
is affirmed. (As amended by Republic Act No. 6727, June 9, 1989).
A wage order takes effect after 15 days from its complete
publication in at least 1 newspaper of general circulation in the
region
Any party aggrieved by the Wage Order may appeal such order to
the NWPC within 10 calendar days from publication of such
order.
ARTICLE 124. Standards/Criteria for minimum wage fixing. The regional
minimum wages to be established by the Regional Board shall be as nearly
adequate as is economically feasible to maintain the minimum standards of
living necessary for the health, efficiency and general well-being of the
employees within the framework of the national economic and social
development program. In the determination of such regional minimum
wages, the Regional Board shall, among other relevant factors, consider the
following:
(a) The demand for living wages;
(b) Wage adjustment visvis the consumer price index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to pay of employers;
10 | v m b t
(i) Effects on employment generation and family income; and
(j) The equitable distribution of income and wealth along the imperatives of
economic and social development.
The wages prescribed in accordance with the provisions of this Title shall be
the standard prevailing minimum wages in every region. These wages shall
include wages varying with industries, provinces or localities if in the
judgment of the Regional Board, conditions make such local differentiation
proper and necessary to effectuate the purpose of this Title.
Any person, company, corporation, partnership or any other entity engaged
in business shall file and register annually with the appropriate Regional
Board, Commission and the National Statistics Office, an itemized listing of
their labor component, specifying the names of their workers and
employees below the managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under the terms prescribed
in the employment contracts, and their corresponding salaries and wages.
Where the application of any prescribed wage increase by virtue of a law or
wage order issued by any Regional Board results in distortions of the wage
structure within an establishment, the employer and the union shall
negotiate to correct the distortions. Any dispute arising from wage
distortions shall be resolved through the grievance procedure under their
collective bargaining agreement and, if it remains unresolved, through
voluntary arbitration. Unless otherwise agreed by the parties in writing, such
dispute shall be decided by the voluntary arbitrators within ten (10)
calendar days from the time said dispute was referred to voluntary
arbitration.
In cases where there are no collective agreements or recognized labor
unions, the employers and workers shall endeavor to correct such
distortions. Any dispute arising therefrom shall be settled through the
National Conciliation and Mediation Board and, if it remains unresolved
after ten (10) calendar days of conciliation, shall be referred to the
appropriate branch of the National Labor Relations Commission (NLRC). It
shall be mandatory for the NLRC to conduct continuous hearings and decide
the dispute within twenty (20) calendar days from the time said dispute is
submitted for compulsory arbitration.
The pendency of a dispute arising from a wage distortion shall not in any
way delay the applicability of any increase in prescribed wage rates pursuant
to the provisions of law or wage order.
As used herein, a wage distortion shall mean a situation where an increase
in prescribed wage rates results in the elimination or severe contraction of
intentional quantitative differences in wage or salary rates between and
among employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length of
service, or other logical bases of differentiation.
All workers paid by result, including those who are paid on piecework, takay,
pakyaw or task basis, shall receive not less than the prescribed wage rates
per eight (8) hours of work a day, or a proportion thereof for working less
than eight (8) hours.
All recognized learnership and apprenticeship agreements shall be
considered automatically modified insofar as their wage clauses are
concerned to reflect the prescribed wage rates. (As amended by Republic
Act No. 6727, June 9, 1989).
Wage distortion
- A situation where an increase in the prescribed wage rates
results in the elimination or severe contraction of intentional
quantitative differences in wage or salary rates between and
among employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure
based on skills, length of service, or other logical bases of
differentiation
- For wage distortion to exist, severe contraction is enough
- It presupposes an increase in the compensation of the lower
ranks in an office hierarchy without a corresponding raise for
higher-tiered employees in the same region of the country,
resulting in the elimination or the severe contradiction of the
distinction between the two groups.
Elements:
a. An existing hierarchy of positions with corresponding salary
rates
b. A significant change in the salary rate of a lower pay class
without a concomitant increase in the salary rate of a
higher one
c. The elimination or severe contraction of the distinction
between the two levels; and
d. The existence of the distortion in the same region of the
country
Procedure for correction of Wage Distortion:
a. In Unionized Establishments:
1. The employer and the union shall negotiate to correct
the distortions
2. If the negotiations fail, the matter shall be brought to
the grievance machinery under their CBA
3. If the grievance machinery fails to settle the dispute,
the matter shall be threshed out through voluntary
arbitration
b. In Non-Unionized Establishment:
1. The employers and the workers shall negotiate to
correct such distortions
2. If negotiations fail, the matter shall be brought to the
NCMB for conciliation
3. If condition fails, the dispute shall be referred to the
appropriate branch of the NLRC for compulsory
arbitration
Employers are obliged to file and register annually with the
appropriate RTWPB, NWPC and the NSO an itemized listing of
their workers and employees below the managerial level,
including learners, apprentices, and disabled/handicapped
workers and their corresponding salaries and wages.
ARTICLE 125. Freedom to bargain. No wage order shall be construed to
prevent workers in particular firms or enterprises or industries from
bargaining for higher wages with their respective employers.
(As amended by Republic Act No. 6727, June 9, 1989).
As a matter of policy, the State promotes collective bargaining as
the primary mode of settling wages and other terms and
conditions of employment.
ARTICLE 126. Prohibition against injunction. No preliminary or permanent
injunction or temporary restraining order may be issued by any court,
tribunal or other entity against any proceedings before the Commission or
the Regional Boards. (As amended by Republic Act No. 6727, June 9, 1989).
11 | v m b t
Reason: to enable the NWPC and the RTWPB to discharge their
functions smoothly, particularly in wage fixing which deserves
preferential consideration.
ARTICLE 127. Non-diminution of benefits. No wage order issued by any
regional board shall provide for wage rates lower than the statutory
minimum wage rates prescribed by Congress. (As amended by Republic Act
No. 6727, June 9, 1989).
The power of the RTWPB to determine and fix minimum wage is
a mere delegated power, and therefore, it should be exercised
within the limits of its authority.
It cannot set a wage rate lower than that prescribed by Congress
It can, however, order that the minimum wages fixed by it be
extended not only to minimum wage earners but also to those
who are already receiving more than the minimum up to a
certain denominated ceiling.
Chapter 6
ADMINITRATION AND ENFORCEMENT
ARTICLE 128. Visitorial and enforcement power. - (a) The Secretary of Labor
and Employment or his duly authorized representatives, including labor
regulation officers, shall have access to employers records and premises at
any time of the day or night whenever work is being undertaken therein,
and the right to copy therefrom, to question any employee and investigate
any fact, condition or matter which may be necessary to determine
violations or which may aid in the enforcement of this Code and of any labor
law, wage order or rules and regulations issued pursuant there to.
(b) Notwithstanding the provisions of Articles 129 and 217 of this Code to
the contrary, and in cases where the relationship of employer-employee still
exists, the Secretary of Labor and Employment or his duly authorized
representatives shall have the power to issue compliance orders to give
effect to the labor standards provisions of this Code and other labor
legislation based on the findings of labor employment and enforcement
officers or industrial safety engineers made in the course of inspection. The
Secretary or his duly authorized representatives shall issue writs of
execution to the appropriate authority for the enforcement of their orders,
except in cases where the employer contests the findings of the labor
employment and enforcement officer and raises issues supported by
documentary proofs which were not considered in the course of inspection.
(As amended by Republic Act No. 7730, June 2, 1994).
An order issued by the duly authorized representative of the Secretary of
Labor and Employment under this Article may be appealed to the latter. In
case said order involves a monetary award, an appeal by the employer may
be perfected only upon the posting of a cash or surety bond issued by a
reputable bonding company duly accredited by the Secretary of Labor and
Employment in the amount equivalent to the monetary award in the order
appealed from. (As amended by Republic Act No. 7730, June 2, 1994).
(c) The Secretary of Labor and Employment may likewise order stoppage of
work or suspension of operations of any unit or department of an
establishment when non-compliance with the law or implementing rules
and regulations poses grave and imminent danger to the health and safety
of workers in the workplace. Within twenty-four hours, a hearing shall be
conducted to determine whether an order for the stop page of work or
suspension of operations shall be lifted or not. In case the violation is
attributable to the fault of the employer, he shall pay the employees
concerned their salaries or wages during the period of such stoppage of
work or suspension of operation.
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or
otherwise render ineffective the orders of the Secretary of Labor and
Employment or his duly authorized representatives issued pursuant to the
authority granted under this Article, and no inferior court or entity shall
issue temporary or permanent injunction or restraining order or otherwise
assume jurisdiction over any case involving the enforcement orders issued in
accordance with this Article.
(e) Any government employee found guilty of violation of, or abuse of
authority, under this Article shall, after appropriate administrative
investigation, be subject to summary dismissal from the service.
(f) The Secretary of Labor and Employment may, by appropriate regulations,
require employers to keep and maintain such employment records as may
be necessary in aid of his visitorial and enforcement powers under this Code.
Powers of the Secretary of Labor and Employment:
1. Visitorial Power
2. Enforcement Power
3. Power to order suspension or stoppage of operations for
failure to comply with health and safety standards.
The Visitorial Power:
a. Inspect the records and premises of an employer
b. Copy pertinent records or documents
c. Question any employee; and
d. Investigate any fact, condition or matter for the purpose of
determining whether an employer is complying with labor
standards
- The visitorial power can be exercised at any time of the day or
night, whether work is being undertaken therein.
- It can be done on a routine bases, i.e., routine inspection or upon
request of an employee, i.e., complaint inspection
The Enforcement Power
- To issue compliance orders on the basis of findings of Labor
Standards and Welfare Officers (LSWO) made in the course of
inspection, that violation of labor standards has been committed.
- Writs of execution may be issued to enforce their orders
- Intended to provide the workers to immediate access to their
rights and benefits without being inconvenienced by arbitration
or litigation processes that prove to be not only nerve-wracking
but financially burdensome in the long run.
The visitorial and enforcement powers given to the Secretary of
DOLE or his duly authorized representatives is relevant to and
exercisable over establishments, not over individual employees
because what is sought to be achieved by its exercise is the
observance of, and/or compliance by, such establishment with
labor standards laws and regulations.
In case of an award rendered in the exercise of visitorial and
enforcement powers, the entire employees who are still working
with said establishments should benefit therefrom even if they
did not sign the complaint or request for inspection.
Remedies:
1. Motion for reconsideration , to be filed within 7 calendar days
from receipt of the order
2. Appeal to the Secretary of DOLE, to be filed within 10 calendar
days from receipt of the order
- A motion for reconsideration filed beyond the 7-day
reglementary period shall be treated as an appeal if filed within
the 10-day period for appeal, but subject to the requirements for
the perfection of an appeal.
12 | v m b t

Article 129 confers upon the Regional Director of the DOLE the
Limitations on the exercise of enforcement power: authority to hear and decide claims for unpaid wages and other
1. Contest the findings of the LSWO monetary claims and benefits filed by an employee or person
2. Raise issues supported by documentary proofs which were employed in domestic or household service, whose employment
not considered in the course of inspection has been terminated and who does not seek reinstatement
anymore.
Visitorial and Enforcement powers are not restricted by the
amount involved. Requisites:
1. The claim is purely for recovery of unpaid wages and other
Power to order suspension or stoppage of operations monetary claims and benefits
- Exercised where the condition obtaining in the workplace pose 2. The claim is filed by an employee, househelper or person
grave and imminent danger to the health and safety of workers employed on domestic or household service
in the workplace 3. The employee, househelper or person employed in
- In imminent danger cases, the employer may make the necessary domestic or household service has already been separated
rectification at the plant-level within 24 hours from the date of from service and does not seek reinstatement anymore
inspection 4. The aggregate money claims of each claimant does not
- In non-imminent danger cases, the LSWO shall determine the exceed 5k
reasonable period of compliance depending on the gravity of the - If the following requisites are not complied with, the case will fall
hazards. within the exclusive jurisdiction of the Arbitration Branch of the
- Within 24 hrs from the issuance of the order, a hearing shall be NLRC.
conducted with the assistance of the LSWO concerned to
determine whether the order shall be lifter or not. Remedy:
- The proceedings shall be terminated within 72 hours and a copy - Appeal to the NLRC within 5 calendar days from receipt of the
of the order of resolution shall be immediately furnished the decision
Secretary of DOLE
- If the stoppage or suspension is attributable to the fault of the Adjudicatory Power Enforcement Power
employer, the employees are entitled to their salaries or wages Basis Complaint filed by the Inspection result
during the period of such suspension of operations. employee
Subject matter Pure money claims Extends to violations of
ARTICLE 129. Recovery of wages, simple money claims and other benefits. occupational health and
Upon complaint of any interested party, the Regional Director of the safety standards
Department of Labor and Employment or any of the duly authorized hearing Workers involved Only to employees who Only to employees who
officers of the Department is empowered, through summary proceeding and have already been are still in service
after due notice, to hear and decide any matter involving the recovery of separated from service
wages and other monetary claims and benefits, including legal interest, and do not seek
owing to an employee or person employed in domestic or household service reinstatement
or househelper under this Code, arising from employer-employee relations: Amount involved Not exceeding 5k Not limited by amount
Provided, That such complaint does not include a claim for reinstatement: involved
Provided further, That the aggregate money claims of each employee or Appellate body NLRC Secretary of DOLE
househelper does not exceed Five thousand pesos (P5,000.00). The Regional Period to appeal Within 5 calendar days Within 10 calendar days
Director or hearing officer shall decide or resolve the complaint within thirty from receipt from receipt
(30) calendar days from the date of the filing of the same. Any sum thus
recovered on behalf of any employee or househelper pursuant to this Article
shall be held in a special deposit account by, and shall be paid on order of,
the Secretary of Labor and Employment or the Regional Director directly to
the employee or househelper concerned. Any such sum not paid to the
employee or househelper because he cannot be located after diligent and
reasonable effort to locate him within a period of three (3) years, shall be
held as a special fund of the Department of Labor and Employment to be
used exclusively for the amelioration and benefit of workers.

Any decision or resolution of the Regional Director or hearing officer

pursuant to this provision may be appealed on the same grounds provided
in Article 223 of this Code, within five (5) calendar days from receipt of a
copy of said decision or resolution, to the National Labor Relations
Commission which shall resolve the appeal within ten (10) calendar days
from the submission of the last pleading required or allowed under its rules.

The Secretary of Labor and Employment or his duly authorized

representative may supervise the payment of unpaid wages and other
monetary claims and benefits, including legal interest, found owing to any
employee or househelper under this Code. (As amended by Section 2,
Republic Act No. 6715, March 21, 1989).