Republic of the
Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT
National Wages and
Productivity Commission
Regional Tripartite Wages and
Productivity Board No. IV-A
City of Calamba, Laguna
RULES
IMPLEMENTING WAGE
ORDER NO. IVA – 12
Annex
- A
Annex
- B
Pursuant to Section 6, Rule IV of the
NWPC Amended Rules of Procedure on Minimum Wage Fixing and Section 26
of Wage Order No. IV-A-12, the following rules are hereby issued for
the guidance and compliance by all concerned:
RULE I - GENERAL PROVISIONS
Section 1. TITLE.
This Rules shall be known as “Rules
Implementing
Wage Order No. IV A-12”;
Sec. 2.
DEFINITION OF TERMS. As used in this Rules,
(a) “Order”
means Wage Order
No. IVA – 12;
(b) “Board”
means the
Regional Tripartite Wages and Productivity Board of Region IVA;
(c) “Commission”
means the
National Wages and Productivity Commission;
(d) “Department”
means the
Department of Labor and Employment;
(e) “Region
IVA” or
CALABARZON covers the Provinces of Cavite, Laguna, Batangas, Rizal,
Quezon, and the Cities of Cavite, Tagaytay, Trece Martirez, Calamba,
San Pablo, Sta. Rosa, Batangas, Lipa, Tanauan, Antipolo and Lucena, per
Executive Order 103;
(f) “Growth
Corridor Area” or
areas rapidly urbanizing and industrializing parts of the Region,
covering the Cities and Municipalities of Bacoor, Carmona, Cavite City,
Dasmariñas, Gen. Mariano Alvarez, Gen. Trias, Imus, Kawit,
Rosario, Silang, Tagaytay City, Tanza and Trece Martires City in
Cavite; Biñan, San Pedro, Cabuyao, Calamba City, Los
Baños, San Pablo City, Sta Cruz and Sta. Rosa City in Laguna,
Batangas City, Bauan, Lipa City, San Pascual, Sto. Tomas and Tanauan
City in Batangas; Antipolo City, Cainta, Rodriguez, Tanay and Taytay,
in Rizal; Lucena City in Quezon;
(g) “Emerging
Growth Area” or
areas with rural and agricultural resource potential located at/or near
the rapidly urbanizing and industrializing parts of the Region,
covering the Municipalities of Indang, Naic, Noveleta and Ternate in
Cavite; Paete and Pakil, in Laguna; Balayan, Calaca, Calatagan, Lemery,
Mabini, Nasugbu, Rosario, and San Jose, San Juan and Taysan in
Batangas; Angono, Binangonan, Pililia, San Mateo and Teresa in Rizal;
Candelaria, Sariaya and Tiaong in Quezon;
(h) “Resource
Based Area” or
areas with predominantly rural and agricultural resource potential far
from regional and Metro Manila markets, covering the Municipalities of
Alfonso, Amadeo, Gen Aguinaldo, Magallanes, Maragondon and
Mendez-Nuñez, in Cavite; Alaminos, Bay, Calauan, Cavinti, Famy,
Kalayaan, Liliw, Luisiana, Lumban, Mabitac, Magdalena, Majayjay,
Nagcarlan, Pagsanjan, Pangil, Pila, Rizal, Sta. Maria, Siniloan and
Victoria in Laguna; Agoncillo, Alitagtag, Balete, Cuenca, Ibaan,
Laurel, Lian, Lobo, Malvar, Mataas na Kahoy, Padre Garcia, San Luis,
San Nicolas, Sta Teresita, Taal, Talisay, Tingloy and Tuy in Batangas;
Baras, Cardona, Jala-Jala and Morong in Rizal; Agdangan, Alabat,
Atimonan, Buenavista, Burdeos, Calauag, Catanauan, Dolores, Gen. Luna,
Gen. Nakar, Guinayangan, Gumaca, Infanta, Jomalig, Lopez, Lucban,
Macalelon, Mauban, Mulanay, Padre Burgos, Pagbilao, Panukulan,
Patnanungan, Perez, Pitogo, Plaridel, Polilio, Quezon, Real, Sampaloc,
San Andres, San Antonio, San Francisco, San Narciso, Tagkawayan,
Tayabas and Unisan in Quezon;
(i) “Minimum
Wage Rates”
refer to the lowest wage rate(s), as fixed by the Board, that an
employer is obliged to pay his workers;
(j) “Non-Agriculture”
refers
to establishments and industries other than agriculture and retail or
service, regardless of employment size;
(k) “Agriculture”
refers to
farming in all its branches and among others, includes the cultivation
and tillage of the soil, production, cultivation, growing and
harvesting of any agricultural or horticultural commodities, dairying,
raising of livestock or poultry, the culture of fish and other aquatic
products in farms or ponds, and any activities performed by a farmer or
on farm as an incident to or in conjunction with such farming
operations, but does not include the manufacturing and/or processing of
sugar, coconut, abaca, tobacco, pineapple, aquatic or other farm
products;
(l) “Plantation
Agricultural Enterprise”
is one engaged in agriculture with an area of more than twenty four
(24) hectares in a locality or which employs at least twenty (20)
workers. Any other agricultural enterprise shall be considered as
"Non-Plantation Agricultural Enterprise";
(m)“Cottage/Handicraft
Establishment”
is one engaged in an economic endeavor in which the products are
primarily done in the home or such other places for profit which
requires manual dexterity and craftsmanship and whose capitalization
does not exceed P 1.5M (in conformity with SMED Resolution No. 3,
series of 1995) regardless of previous registration with the defunct
NACIDA;
(n) “Retail
Establishment”
refers to an entity principally engaged in the sale of goods to end
users for personal or household use. A retail establishment that
regularly engages in wholesale activities loses its retail character.
For purposes of this Implementing Rules, retail establishments must be
regularly employing not more than 10 workers;
(o) “Service
Establishment”
refers to an entity principally engaged in the sale of services to
individuals for their own or household use and is generally recognized
as such. For purposes of this Implementing Rules, service
establishments must be regularly employing not more than 10 workers;
(p) “Barangay
Micro Business Enterprise”
refers to any business entity or enterprise granted a Certificate of
Authority under Republic Act No. 9178;
(q) “Productivity
Based Schemes”:
“Productivity
Improvement Program”
refers to any intervention or scientific process designed to involve
everyone in the organization in improving productivity through more
efficient use/optimization of resources, on time production and
delivery of quality goods and services that satisfy the requirements of
the customer, such as: good housekeeping, quality circles, cost
reduction, work simplification/process improvement, management control
system, among others. It focuses on four (4) major areas of concern:
a)
quality improvement;
b) competitive
pricing;
c) on time
delivery;
d)
safe and healthy work environment;
“Gainsharing
Scheme” refers
to a system defining the manner or arrangement by which employees and
company/employers share the financial gains arising from improved
productivity and profitability based on predetermined set of policies,
criteria and formula that governs both parties in interpreting and
implementing the same.
(r) “Exporter”
means any
person, natural or juridical, licensed to do business in the
Philippines, engaged directly or indirectly in the manufacture or trade
of products or services which earn at least fifty percent (50%) of its
normal operating revenues from the sale of its products or services
abroad for foreign currency. In the case of indirect exporters, the
requirement that products or services be sold “abroad for foreign
currency “ shall not apply as, by the very nature of their business,
the sale of their products or services takes place in the Philippines
and such indirect exporters are usually paid in Philippine currency;
(s) “New
Business Enterprise”
refers to an establishment, including non-profit institutions,
established within two (2) years from effectivity of the Wage Order
based on the latest registration with the appropriate government agency
such as SEC, DTI, CDA and Mayor’s Office;
(t) “Distressed
Establishment”
refers to an establishment which meets the criteria enumerated in
Sec. 3A of the National Wages and Productivity Commission (NWPC)
Guidelines No. 02 S. 2007, known as Amended Rules on Exemption from
Compliance with the Prescribed Wage Increases/Cost of Living Allowances
Granted by the Regional Tripartite Wages and Productivity Boards;
(u) “Notice
to Workers (NTW)”
is a document that informs workers of the filing for
exemption/deferment of the applicant –firm with the Board. The NTW
shall be under oath and shall contain information on the application
and its supporting documents filed with the Board. The proper recipient
of the NTW shall be the following; a.) union president, in case of
organized establishments or b.) worker’s representative, in case of
non-unionized establishment;
(v) “Acknowledgement
Receipt (AR)”
is a document that shows that the NTW was received by the proper
recipient. The AR shall be under oath and shall contain information on
the recipient, his\her union affiliation, his/her company
position/designation and/or information on what interest he/she
represents. The recipient is deemed responsible for informing
co-workers on the content of the NTW and shall answer of
misrepresentation should they arise.
RULE II - NEW MINIMUM WAGE RATES
Sec. 1.
AMOUNT OF INCREASE. The amount of increase in the minimum
wage rates of all workers and employees in the private sector in the
region effective September 27, 2007 are as follows:
-
Growth Corridor Area P 10.00 - 13.00
-
Emerging Growth Area P 8.00 - 9.00
-
Resource Based Area P 6.00
Sec. 2. NEW MINIMUM WAGE
RATES. The new daily minimum wage rates of private workers
and employees in Region IVA effective September 27, 2007 are as follows:
AREAS
|
Non- Agriculture |
Agriculture
|
Cottage
|
Retail
& Service Establishment employing not more than 10 workers
|
Plantation
|
Non-Plantation
|
GROWTH
CORRIDOR AREA
|
300.00
|
275.00
|
255.00
|
263.00
|
195.00
|
EMA/1
|
CAVITE
Bacoor,
Imus
|
LAGUNA
Biñan,
San Pedro
|
RIZAL
Cainta,
Taytay
|
CAVITE
Carmona,
Cavite City, Dasmariñas, Gen. Trias, Rosario |
282.00
|
257.00
|
237.00
|
245.00
|
177.00
|
LAGUNA
Cabuyao,
Calamba City, Los Baños,San Pablo City, Sta. Cruz, Sta. Rosa.
|
RIZAL
Antipolo
City
|
CAVITE
Kawit,
Silang, Tagaytay City, Tanza, Trece Martirez |
277.00
|
252.00
|
232.00
|
240.00
|
174.00
|
BATANGAS
Batangas
City, Bauan, Lipa City, San Pascual, Sto. Tomas, Tanauan City
|
QUEZON
Lucena
City |
EGA/2
|
277.00
|
252.00
|
232.00
|
240.00
|
172.00
|
CAVITE
General Alvarez |
RIZAL
Rodriguez,
Tanay |
EMERGING
GROWTH AREA
|
260.00
|
235.00
|
215.00
|
223.00
|
159.00
|
BATANGAS
Balayan,
Calaca, Calatagan, Lemery, Mabini, Nasugbu, Rosario, San Jose |
RIZAL
Angono,
Binangonan, San Mateo |
QUEZON
Candelaria, Sariaya |
CAVITE
Indang,
Naic, NoveletaTernate |
249.00
|
224.00
|
204.00
|
212.00
|
146.00
|
LAGUNA
Paete, Pakil |
BATANGAS
San
Juan |
RIZAL
Pililia
|
QUEZON
Tiaong
|
RBA/3
|
244.00
|
219.00
|
199.00
|
207.00
|
145.00
|
BATANGAS
Taysan
|
RIZAL
Teresa
|
RESOURCE
BASED AREA
|
242.00
|
217.00
|
197.00
|
205.00
|
143.00
|
CAVITE
Alfonso, Amadeo, Gen. Aguinaldo, Magallanes, Maragondon, Mendez-Nunez |
LAGUNA
Alaminos,
Bay, Calauan, Cavinti, Famy, Kalayaan, Liliw, Luisiana, Lumban,
Mabitac, Magdalena, Majayjay, Nagcarlan, Pagsanjan, Pangil, Pila,
Rizal, Sta Maria, Siniloan, Victoria |
BATANGAS
Agoncillo,
Alitagtag, Balete, Cuenca, Ibaan, Laurel, Lian, Lobo, Malvar, Mataas na
Kahoy, Padre Garcia, San Luis, San Nicolas, Sta. Teresita, Taal,
Talisay, Tingloy, Tuy |
RIZAL
Baras, Cardona, Jala-Jala, Morong |
QUEZON
Agdangan,
Alabat, Atimonan, Buenavista, Burdeos, Calauag, Catanauan, Dolores,
Gen. Luna,
Gen. Nakar, Guinayangan, Gumaca, Infanta, Jomalig, Lopez, Lucban,
Macalelon, Mauban, Mulanay, Padre Burgos, Pagbilao, Panulukan,
Patnanungan, Perez, Pitogo, Plaridel, Polilio, Quezon, Real, Sampaloc,
San Andres,
San Antonio,
San Francisco,
San Narciso, Tagkawayan, Tayabas, Unisan |
224.00
|
204.00
|
184.00
|
192.00
|
136.00
|
EMA1/ Reclassified Extended
Metropolitan Area to Growth Corridor AreaEGA2/ Reclassified Emerging
Growth Area to Growth
Corridor AreaRBA3/ Reclassified Resource Based Area to Emerging
Growth Area
All
workers covered by the Order receiving less than the prescribed minimum
wage(s) shall be adjusted at least to the new daily minimum wage rates
prescribed herein.
Sec. 3.
COVERAGE. The minimum wage rates prescribed under the
Order shall apply to all minimum wage workers and employees in all
private establishments in Region IV-A regardless of their position,
designation or status of employment and irrespective of the method by
which their wages are paid. Not covered by this Wage Order are
household or domestic helpers, persons employed in the personal service
of another, including family drivers and workers of Barangay Micro
Business Enterprises (BMBEs) with Certificates of Authority, pursuant
to R. A. 9178.
Sec. 4.
BASIS OF MINIMUM WAGE RATES. The minimum wage rates
prescribed herein shall be for the normal working hours, which shall
not exceed eight hours work a day.
Sec. 5.
APPLICATION TO WORKERS PAID BY RESULTS. All workers paid by
results, including those who are paid on piecework, takay, pakyaw, or
task basis, shall receive not less than the applicable minimum wage
rates prescribed under the Order for the normal working hours which
shall not exceed eight (8) hours work a day, or a proportion thereof
for work of less than the normal working hours.
The adjusted
minimum wage rates of workers paid by results shall be computed in
accordance with the following steps:
a) Amount of increase
in AMW
------------------------------------ x 100 = %
increase;
Previous
AMW
b) Existing rate/piece
x % increase = Increase in rate/piece;
c) Existing rate/piece
+ Increase in rate/piece = Adjusted rate/piece
Where: AMW is the
applicable minimum wage rate.
The wage rates
of workers who are paid by results shall be continued to be established
in accordance with Article 101 of the Labor Code, as amended and its
Implementing Regulations.
Sec. 6.
PRODUCTIVITY BASED SCHEMES. In order to enhance the
competitiveness of business, both labor and management are encouraged
to adopt productivity improvement schemes such as: good housekeeping,
quality circles, labor management cooperation, among others at the
company level, set up the mechanisms for productivity improvement
programs and gain sharing schemes. An advisory guidelines is contained
in this Implementing Rules attached as Annex B.
Sec. 7.
APPLICATION TO SPECIAL GROUPS OF WORKERS. Wages of
apprentices and learners shall in no case be less than seventy five
percent (75%) of the applicable minimum wage rates prescribed in the
Order. Apprenticeship shall be guided by the Kasanayan at Hanapbuhay
Program – an Apprenticeship and Employment Program of the Department of
Labor and Employment.
All recognized
learnership and apprenticeship agreements entered into before the
effectivity of the Order shall be considered automatically modified
insofar as their wage clauses are concerned to reflect the adjustments
prescribed under the Order.
All qualified
handicapped workers shall receive the full amount of the minimum wage
rate prescribed herein pursuant to R.A. 7277.
Sec. 8.
APPLICATION TO PRIVATE EDUCATIONAL INSTITUTIONS. In the
case of private educational institutions, the share of covered workers
and employees in the increase of tuition fees for school year 2007-2008
shall be considered as compliance with the wage increase prescribed in
this Order. However, payment of any shortfall in the prescribed
increase set forth in this Order shall be covered starting SY
2008-2009.
Private
educational institutions, which have not increased their tuition fees
for SY 2007-2008, may defer compliance with the provisions of the Order
until the beginning of SY 2008-2009. In any case all private
educational institutions shall implement the prescribed increase in the
Order starting SY 2008-2009.
Sec. 9.
APPLICATION TO CONTRACTORS. In the case of contracts for
construction projects and for security, janitorial and similar
services, the prescribed increase in the wage rate of covered workers
shall be borne by the principals or clients of the construction/service
contractor and the contracts shall be deemed amended accordingly. In
the event, however, that the principals or clients fail to pay the
prescribed wage rates, the contractors shall be jointly and severally
liable with the principals or clients.
For contracts
entered into by registered BMBEs, their non coverage to the payment of
the minimum wage does not in anyway extend to the principals or clients
of the said BMBE.
Sec. 10.
APPLICATION TO MOBILE, BRANCH AND TRANSFERRED EMPLOYEES.
Mobile and
Branch Employees
The minimum wage
rates of mobile 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 or outside the Region shall be those
applicable in the place where they are stationed or based.
Transfer
of Personnel
The transfer of personnel to areas
outside the Region or from a high rate city/municipality to a lower
rate city/municipality shall not be a valid ground for the reduction of
the wage rates being enjoyed by the workers prior to such transfer.
Workers transferred to other Regions or from a lower rate municipality
to a higher rate municipality shall be entitled to the minimum wage
rates applicable therein.
RULE III - DEFERMENT
Section 1.
DEFERMENT FOR EXPORT ESTABLISHMENTS. Upon application with
and as determined by the Board, establishments in the export industry
which earn at least fifty percent (50%) of their normal operating
revenues from export sales and whose product pricing is computed using
labor costs based on previous mandated rates, may be granted deferment
from the Order but such deferment shall not to exceed one year.
These conditions
shall be verified based on predominant and accepted documents used in
the industry that should show applicant entered into contracts before
October 5, 2007, but these contracts shall be concluded, that is,
produced and delivered, and consequently paid for between the periods
October 5, 2007 to October 4, 2008.
Sec. 2.
APPLICATION FOR DEFERMENT. Application for deferment shall
be filed not later than seventy–five (75) days from the date of
publication of the approved Rules Implementing this Order, provided
that all required documents in support of the application must be filed
within the said 75-day filing period and that no further extension of
filing and submission of required documents shall be allowed. The date
of mailing shall be the date of filing.
Documents Required:
-
Application letter under oath with
attendant information on the firm’s principal economic activity, amount
of total assets, date of start of operation, the regular number and
names of workers with their corresponding salaries and wages and dates
of employment, certificate of compliance with the prescribed minimum
wage under Wage Order immediately preceding the new Wage Order; and
-
Proof of notice of filing of the
application to the President of the union/contracting party if one is
organized in the establishment, or if there is no union, a copy of the
circular giving general notice of the filing of application to all
workers in the establishment. The proof of notice, which may be
translated in the vernacular, shall state that the workers’
representative was furnished a copy of the application with all the
supporting documents. The notice shall be posted in a conspicuous place
in the establishment.
Additional Supporting Documents
Required:
Direct
Exporters
-
Proof of 50% Export Sales Status.
-
Contracts with Foreign Buyers/s entered
into before October 5, 2007, but for production, delivery and
subsequent payment between the periods October 5, 2007 to October 4,
2008.
-
Invoices, Bills of Lading, Confirmed
Inward Letters of Credit, Lading Certificate and other Commercial
documents with reference to the contracts described above.
Indirect Exporters
-
Certification from Consignee/s that
export products consigned were in fact sold by consignee/s.
-
Proof of 50% Export Sales Status of
Consignee/s
-
Contracts with Consignee/s entered into
before October 5, 2007, but for production, delivery and subsequent
payment between the periods October 5, 2007 to October 4, 2008.
-
Purchase Orders, Invoices, Receipts and
other Commercial Documents with reference to contracts described above.
Sec. 3.
BASIS AND DURATION OF DEFERMENT. The allowable length of
period of deferment grant shall be based on the weighted value or
volume of each specific contract with the time and/or expected time of
receipt of payment of each specific contract in proportion to the total
contract value or volume for a one year period.
Sec. 4.
EFFECT OF FILING OF APPLICATION FOR DEFERMENT. Whenever an
application for deferment has been filed with the Regional Board,
action by the Regional Office of the Department of Labor and Employment
on any complaint for alleged non-compliance with the Order shall be
deferred pending resolution of the application for deferment by the
Regional Board.
Sec. 5.
EFFECT OF DISAPPROVED APPLICATION FOR DEFERMENT. In the
event that an application for deferment is not granted, covered workers
and employees shall receive the appropriate compensation due them as
provided for in the Order plus interest of one percent (1%) per month
retroactive to the effectivity of the said Order or from the period not
covered by the grant of deferment, whichever is applicable.
Sec. 6.
MOTION FOR RECONSIDERATION. An aggrieved party may file
with the Board a motion for reconsideration of the decision on the
application for exemption within ten (10) days from its receipt and
shall state the particular grounds upon which the motion is based, copy
furnished the other party and the DOLE Regional Office concerned.
No
second motion for reconsideration shall be entertained in any case. The
decision of the Board shall be final and executory unless appealed to
the Commission.
RULE IV - EXEMPTION
Section 1.
EXEMPTION. Upon application with and as determined by the
Regional Board in accordance with the applicable rules and regulations,
New Business Enterprises and Distressed Establishments as defined in
the NWPC Guidelines No. 02 S. 2007 “Amended Rules on Exemption from
Compliance with the Prescribed Wage Increases/Cost of Living Allowances
Granted by the Regional Tripartite Wages and Productivity Boards” may
be exempted from compliance with the Order. The criteria for exemption
for these exemptible categories shall be those provided for in the said
Amended Rules on Exemption except, in the case of Distressed
Establishments, only full or partial exemption may be allowed.
1. New Business Enterprise (NBE)
Documents Required:
-
Application letter under oath with
attendant information on the firm’s address of economic activity,
principal economic activity and product/s, date of start of operation
provided it is registered with appropriate government agency, amount of
total assets/investments, number of employees employed with the
corresponding basic salaries/wages;
-
Proof of notice of filing of the
application to the President of the union/contracting party if one is
organized in the establishment, or if there is no union, a copy of the
circular giving general notice of the filing of application to all
workers in the establishment. The proof of notice, which may be
translated in the vernacular, shall state that the workers’
representative was furnished a copy of the application with all the
supporting documents. The notice shall be posted in a conspicuous place
in the establishment;
-
Business Permit or Certificate of
registration with appropriate government agency such as SEC, DTI, CDA,
Mayors Office; and
-
Certification (if any) issued by Special
Economic Zones.
2. Distressed Establishment
Documents Required:
-
Application letter under oath with
attendant information on the firm’s address of economic activity,
principal economic activity and product/s, amount of total assets, date
of start of operation, regular number and names of workers with their
corresponding basic salaries and wages and dates of employment,
certificate of compliance with the prescribed minimum wage under Wage
Order immediately preceding the new Wage Order;
-
Proof of notice of filing of the
application, to the President of the union/contracting party if one is
organized in the establishment, or if there is no union, a copy of the
circular giving general notice of the filing of application, to all
workers in the establishment. The proof of notice, which may be
translated in the vernacular, shall state that the workers’
representative was furnished a copy of the application with all the
supporting documents. The notice shall be posted in a conspicuous place
in the establishment;
-
Full or Partial Exemption. Audited
financial statements (together with the Auditor’s opinion and the notes
thereto) for the last two (2) full accounting periods preceding the
effectivity of the Order (2005-2006) filed with and stamped “received”
by the appropriate government agency; and
Sec. 2. SUBMISSION OF OTHER
DOCUMENTS. The Board may require the submission of other
pertinent documents to support the application for exemption.
Sec. 3.
APPLICATION FOR EXEMPTION: Application for exemption shall
be filed not later than seventy–five (75) days from the date of
publication of the approved Rules Implementing this Order, provided
that all required documents in support of the application must be filed
within the said 75-day filing period and that no further extension of
filing and submission of required documents shall be allowed. The date
of mailing shall be the date of filing.
In
the case of New Business Enterprises, applications shall be filed not
later than sixty (60) days after the date of registration.
The
application shall be under oath and accompanied by complete supporting
documents as enumerated under Sec. 1 Rule IV of this Implementing
Rules.
Sec. 4.
EXTENT AND DURATION OF EXEMPTION. The extent and duration
of exemption shall be in accordance with Sec. 5 of the NWPC
Guidelines No. 02 S. 2007 except, in the case of Distressed
Establishments, only full or partial exemption may be allowed as
follows:
Full
exemption of one (1) year from effectivity of the Order shall be
granted to all exemptible categories of establishments that meet the
applicable criteria for exemption.
Partial
exemption of 50% from effectivity of the Order with respect to the
period of exemption shall be granted only in the case of distressed
establishments.
Sec. 5.
DISTRESSED PRINCIPAL. Exemption granted to a distressed
principal shall not extend to its contractor in case of contract (s)
for construction, security, janitorial and/or similar services with
respect to the employees of the latter assigned to the former.
Sec. 6.
ADOPTION OF PRODUCTIVITY IMPROVEMENT PROGRAMS.
Establishments granted exemption are required to adopt productivity
improvement initiatives or schemes to improve business viability. The
Board shall provide technical assistance in the development of a
productivity improvement program in the establishment.
Sec. 7.
EFFECT OF FILING OF APPLICATION FOR EXEMPTION. Whenever an
application for exemption has been filed with the Regional Board,
action by the Regional Office of the Department of Labor and Employment
on any complaints for alleged non-compliance with this Order shall be
deferred pending resolution of the application for exemption by the
Regional Board.
Sec. 8.
EFFECT OF DISAPPROVED APPLICATION FOR EXEMPTION. In the
event that the application for exemption is not approved, covered
workers shall be paid the mandated wage increase as provided for under
the Order retroactive to the date of effectivity of the Order plus
simple interest of one percent (1%) per month.
Sec. 9.
MOTION FOR RECONSIDERATION. An aggrieved party may file
with the Board a motion for reconsideration of the decision on the
application for exemption within ten (10) days from receipt of the
decision, stating the particular grounds upon which the motion is
based, copy furnished the other party and the Regional Office of the
Department.
No
second motion for reconsideration shall be entertained in any case. The
decision of the Board shall be final and executory unless appealed to
the Commission.
RULE V - WAGE DISTORTION
Sec. 1. WAGE
DISTORTION. 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.
Sec. 2.
CORRECTION OF WAGE DISTORTION. Where the application of any
prescribed wage increase by virtue of a Wage Order issued by the 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 arbitrator or panel of voluntary arbitrators within ten (10)
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 there from shall be settled through
the National Conciliation and Mediation Board and, if it remains
unresolved after ten (10) days of conciliation, shall be referred to
the appropriate branch of the National Labor Relation Commission
(NLRC). It shall be mandatory for the NLRC to conduct continuous
hearings and decide the dispute within twenty (20) 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 the Wage Order.
Sec. 3.
FORMULA. Advisory formulae to correct distortion are
contained in this Implementing Rules attached as Annex A.
RULE VI - APPEAL
Sec. 1.
APPEAL ON THE WAGE ORDER. Not later than ten (10) days from
the date of publication of the Order, any party aggrieved by a Wage
Order issued by the Board may appeal such Order to the Commission by
filing a verified appeal with the Board in three (3) printed legible
copies. The appeal shall be accompanied by a memorandum of appeal which
shall state the grounds relied upon, the arguments in support of the
appeal and the relief being sought.
The
Board shall serve notice of the appeal to concerned parties. Failure to
file an appeal within the reglementary period fixed under this Sec. or
to submit the required documents shall be a ground for dismissal of
the appeal.
A
motion for reconsideration on the Wage Order filed with the Board,
shall be treated as an appeal subject to the requisites for the
perfection of appeal under the NWPC Guidelines No. 01 Series of 2007.
An
appeal may be filed on the grounds of non-conformity with prescribed
guidelines and/or procedures, questions of law, and grave abuse of
discretion.
Sec. 2.
APPEAL ON EXEMPTION. Any party aggrieved by the decision of
the Board may file an appeal to the Commission, through the Board, in
two (2) legible copies, not later than ten (10) days from date of
receipt of the decision.
The
appeal, with proof of service to the other party, shall be accompanied
with a memorandum of appeal which shall state the date appellant
received the decision, the grounds relied upon and the arguments in
support thereof.
RULE VII - SPECIAL PROVISIONS
Sec. 1.
COMPLAINTS FOR NON-COMPLIANCE. Complaints for
non-compliance with the Order shall be filed with the Regional Office
of the Department having jurisdiction over the workplace and shall be
the subject of enforcement proceedings under Articles 128 and 129 of
the Labor Code, as amended.
Sec. 2.
NON-DIMINUTION OF BENEFITS. Nothing in the Order and in
this Rules shall be construed to reduce any existing wage rates,
allowances and benefits of any form under existing laws, decrees,
issuances, executive orders, and/or under any contract or agreement
between the workers and the employers.
Sec. 3.
PENAL PROVISION. Pursuant to provisions of Sec. 12 of RA
6727, as amended by RA 8188, any person, corporation, trust, firm,
partnership, association or entity which refuses or fails to pay the
prescribed increase in the Order shall be punished by a fine of not
less than Twenty-five Thousand pesos (P25,000.00) nor more than One
Hundred Thousand Pesos (P100,000.00) or imprisonment of not less two
(2) years nor more than four (4) years or both such fine and
imprisonment at the discretion of the court. Provided, that any person
convicted under the order shall not be entitled to the benefits
provided for under the Probation Law.
If
the violation is committed by a corporation, trust or firm,
partnership, association or any other entity, the penalty of
imprisonment shall be imposed upon the entity’s responsible officers,
including but not limited to the president, vice president, chief
executive officer, general managers, managing director or partner.
The
employer/s concerned shall be ordered to pay an amount equivalent to
double the unpaid benefits owing to the employees: Provided that
payment of indemnity shall not absolve the employer from criminal
liability imposable under this Act.
Sec. 4.
PROHIBITION AGAINST INJUNCTION. No preliminary or permanent
injunction or temporary restraining order may be issued by any court,
tribunal or other entity against and proceedings before the Commission
or Boards.
Sec. 5.
FREEDOM TO BARGAIN. The Order shall not be construed to
prevent workers in particular firms or enterprises of industries from
bargaining for higher wages and flexible working arrangements with
their respective employers.
Sec. 6.
REPORTING REQUIREMENTS. Any person, company, corporation,
partnership or any entity engaged in business shall submit a verified
itemized listing of their labor component to the Board not later than
January 31, 2008 and every year thereafter in accordance with the form
prescribed by the Commission.
Sec. 7.
REPEALING CLAUSE. All orders, issuances, rules and
regulations on wages, or parts thereof inconsistent with the provisions
of the Wage Order and this Rules are hereby repealed, amended or
modified accordingly.
Sec. 8.
SEPARABILITY CLAUSE. If any provision or part of the Order
and this Rules, or the application thereof to any person or
circumstance is held invalid or unconstitutional, the remainder of the
Order and this Rules or the application of such provision or part
thereof to other persons or circumstances shall not be affected thereby.
Sec. 9.
EFFECTIVITY. This Rules shall take effect on September 27,
2007.
Done this 7th
day of September 2007 in Calamba
City, Laguna, Philippines.
(Sgd) ATTY. RICARDO S. MARTINEZ, SR., CESO III
Chairperson
(Sgd.) SEVERINO C.
SANTOS
Vice-Chairperson |
(Sgd.) MARILOU Q.
TOLEDO
Vice-Chairperson |
|
|
(Sgd.) BENJAMIN P.
BASQUIÑAS, JR
Worker Representative |
(Sgd.) JUANITO S. FACUNDOWorker Representative |
|
|
TOOK NO PART
(Out of the Country)
RENATO B. ALMEDA
Employer
Representative |
(Sgd.) LUCILA C. TARRIELA
Employer Representative |
|
|
Approved this 1st of October,
2007, subject to the notations contained on pages 14 to 15 thereof. |
(Sgd.) ARTURO D. BRION
Secretary
DEPARTMENT OF LABOR AND EMPLOYMENT
|
NOTATIONS
ON THE RULES IMPLEMENTING
WAGE ORDER NO. IVA-12
1. On the following Sections/Rules:
a) Sections 1 and
2, Rule II. AMOUNT OF INCREASE and NEW MINIMUM WAGE RATES, respectively;
b) Sec. 1, Rule III.
DEFERMENT FOR
EXPORT ESTABLISHMENTS;
c) Sec. 9, Rule VII.
EFFECTIVITY.
The dates
indicated in these sections should be changed to
the actual date of effectivity.
2. On Sec. 1.2, Rule IV. EXEMPTION.
The
following should be added to the provision to read as follows:
"d. Conditional
Exemption
d.1
Audited financial statement (together with the Auditors opinion
and
the notes thereto)
for the last full accounting
period and interim quarterly
financial statement/s
for the period immediately preceding
the effectivity of the Order.
d.2 To confirm the
grant of conditional exemption,
audited financial statements for the
last full
accounting period, stamped "received" by the
appropriate government
agency, to be submitted within 30 days
from the lapse of the one-year
exemption period.
"e.
For Banks and Quasi-banks
Certification
from Bangko Sentral ng Pilipinas that it is under
receivership/liquidation.
"f. For
Establishments Under Corporate Rehabilitation
Order
from a court of competent jurisdiction that the establishments is under
rehabilitation."
3. On Sec. 4 (3rd paragraph),
Rule
IV
EXTENT AND DURATION OF EXEMPTION.
The
following provisions should be added to read as follows:
"Conditional
exemption of one (1) year from effectivity of the Order shall
be granted
only in the case of distressed establishments
under Sec. 3.A of the Amended
Rules on Exemption. The
conditional exemption shall be confirmed,
as follows:
c.1
For Corporations.
When
deficit as defined in Sec. 1(N),
Amended Rules on Exemptions, as of
the last full
accounting period amounts to 20% or more of the paid-up
capital for
the same period;
c.2
For Single Proprietorships And Partnerships
When
the net loss for the last two (2) full accounting periods
immediately preceding
the effectivity of the Order amounts to
20% or more of the total invested
capital at the
beginning of the period under review;
c.3
For Non-Stock, Non-Profit Organizations
When
the net loss for the last two (2) full accounting periods
immediately preceding
the effectivity of the Order amounts to
20% or more of the fund balance/members'
contribution at the beginning of the period.
In
the absence of such actual losses, the company shall pay its workers
the wageincreases
due them under the Order, retroactive to
the effectivity of the Order." |