Republic of the
Philippines
Department
of Labor and Employment
National Wages and
Productivity Commission
REGIONAL
TRIPARTITE WAGES AND PRODUCTIVITY BOARD
Region VII, Central
Visayas
RULES IMPLEMENTING WAGE
ORDER NO. ROVII-13
Pursuant to Section 6, Rule
IV of the NWPC Revised Rules of Procedure on Minimum Wage Fixing and
Section 22 of Wage Order No. ROVII-13, the following Rules are hereby
issued for guidance and compliance by all concerned.cralaw:red
Rule I
General Provisions
Section 1. This
Rules shall be known as the “Rules
Implementing Wage Order No. ROVII-13”.cralaw:red
Sec. 2.
Definition of Terms. As used in this rules:
a) “ORDER”means
Wage Order No. ROVII-13;
b) “COMMISSION” refers to the National Wages and Productivity
Commission;
c) “BOARD” means the Regional Tripartite Wages and
Productivity Board, Region VII;
d) “DEPARTMENT” means the Department of Labor and Employment;
e) “REGION VII” is the geographic area in Central Visayas
covering the Provinces of Cebu, Bohol, Negros Oriental and Siquijor and
its component cities;
f) “AGRICULTURE” refers to farming in all its branches and
among others, include the cultivation and tillage of the soil,
production, cultivation, growing and harvesting of any agricultural and
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 a 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;
g) “BARANGAY MICRO-BUSINESS ENTERPRISE (BMBE)” refers to any
registered business entity or enterprise granted a Certificate of
Authority pursuant to Republic Act 9178;
h) “CLASS A” refers to the Cities of Carcar, Cebu, Danao,
Lapulapu, Mandaue, Naga and Talisay and the Municipalities of
Compostela, Consolacion, Cordova, Liloan, Minglanilla, and San Fernando
or (expanded Metro Cebu);
i) “CLASS B” refers to the Cities of Toledo and Bogo and the
rest of the municipalities in the Province of Cebu except the
municipalities in the Islands of Bantayan and Camotes;
j) “CLASS C” refers to the cities and municipalities in the
Provinces of Bohol and Negros Oriental;
k) “CLASS D” refers to the municipalities in the Province of
Siquijor and municipalities in the Islands of Bantayan and Camotes.
Rule II
Wage Increase
Section
1. Amount and Effectivity of Increase. Upon effectivity of
this Wage Order, the daily minimum wage rates of all private workers
and employees in the Non-Agricultural and Agricultural sector except
Sugar and Sugar Mills in the region shall be increased by Nine Pesos
(P9.00) per day for Class A areas, and Five Pesos (P5.00) per day for
Class B, Class C areas and Class D areas.
Sec.
2. Application to Sugar Industry. Upon effectivity of this
Order, the daily minimum wage rates of workers in Agriculture (Sugar)
and Sugar Mills in all areas shall be increased by Five (P5.00) per day.
Sec.
3. Coverage. a). The
wage increase prescribed in the Order shall apply to all private sector
minimum wage workers and employees in the Region whether agricultural
or non-agricultural, regardless of their position, designation, or
status and irrespective of the method bywhich their wages are paid.
b). Not covered from
the provisions of the Order are household or domestic helpers, workers
employed in the personal service of another, including family drivers
and workers of duly registered Barangay Micro-Business Enterprises with
Certificates of Authority.
Sec. 4. New Minimum Wage Rates.
a)
The new daily minimumwage rate in the region for each area
classificationincluding agriculture sugar and sugar millsshall be as
follows:
Area
Classification |
Non - Agriculture |
Agriculture |
Sugar
Mills
|
Non-Sugar |
Sugar
|
Class A |
P250.00 |
P232.00 |
P200.00 |
P220.00 |
Class B |
230.00 |
215.00 |
Class C |
220.00 |
200.00 |
Class D |
205.00 |
185.00 |
b). Wages of all workers and employees whose rates are less than the
prescribed minimum wage rates pursuant to Sections 1 and 2 of the Order
shall be adjusted accordingly.
Sec. 5. Basis
of Minimum Wage Rates. The minimum wage rates prescribed
herein shall be for the normal working hours, which shall not exceed
eight (8) hours work per day.cralaw:red
Sec. 6.
Application to Private Educational Institutions.
a) Inthe case of
private educational institutions,the share of covered workers and
employeein the increase in tuition fees for SchoolYear 2007-2008 shall
be considered as compliancewith the increase prescribed herein.
However,payment of
any shortfall in the wage increaseset forth herein
shall be covered startingSchool Year 2008-2009.
b)
Privateeducational institutions which have not increasedtheir tuition
fees for the School Year 2007-2008 may defer compliance with the
increase prescribedherein until the beginning of School Year2008-2009.
c) In any
case,private educational institutions shall implement the increase
herein starting School Year 2008-2009.
Sec.
7. Application to Contractors. Inthe case of contracts for
construction projectsand for security, janitorial services,
theprescribed wage increases shall be borne bythe principals or clients
of the construction/servicecontractors and the contract shall be
deemedamended accordingly. In the event, however,that the principal or
client fails to paythe prescribed wage rates, the
construction/servicecontractor shall be jointly and severallyliable
with his principal or client.
Sec.
8. Workers Paid by Results.
a). All workers
paid by results,including those who are paid on piecework,takay,
pakyaw, or task basis, shall receivenot less than the applicable
minimum wagerates prescribed under the Order for the normalworking
hours which shall not exceed eight(8) hours work a day, or a proportion
thereoffor work of less than the normal working hours.
b). The wagerates
of workers who are paid by results shallcontinue to be established in
accordance withArticle 101 of the Labor Code, as amendedand its
implementing rules and regulations.
c). The
adjustedminimum wage rates for workers paid by resultsshall be computed
in accordance with the followingsteps:
1. Amount of
increase in AMW*
------------------------------------
X 100 =
Percent increase;
Previous AMW
2. Existing
rate/piece X Percent increase= Increase in rate/piece.
3. Existing
rate/piece + Increase in rate/piece = Adjusted rate/piece
*
Where AMWis the applicable minimum wage rate.
Sec. 9. Wages
of Special Groups of Workers.
a) Wages
ofapprentices and learners shall in no casebe less than seventy-five
percent (75%) ofthe applicable minimum wage rates prescribed in the
Order.
b) All
recognized learnership and apprenticeship agreements entered into
before
the effectivity of theOrder shall be considered as
automatically modified insofar as their wage clauses are concerned to
reflect the adjustments prescribed under the Order.
c) All
qualified handicapped workers shall receive the full amount of increase
in this Order pursuant to R.A. 6727.
Sec. 10.
Suggested Formulae in Determining the Equivalent Monthly Regional
Minimum Wage Rates.
Without prejudice to existing company practices, agreements or
policies, the following formulae may be used in determining the
Estimated Equivalent Monthly Rate (EEMR) of employees:
a. |
For those
who are required to work everyday including Sundays or rest days,
special days and regular holidays: |
|
(EEMR) |
= |
Applicable Daily Wage Rate (ADR) x 392.50 days
----------------------------------------------------------------
12 |
|
|
Where 392.50
days : |
299 |
days |
ordinaryworking
days |
22 |
days |
regular
holidays x 200% |
67.60 |
days |
52 rest days
x 130% |
3.90 |
days |
3 special
days x130%
|
---------- |
392.50 |
days |
Total
equivalent number of days/year |
b.
|
For those
who do not work but are considered paid on rest days, special days and
regular holidays: |
|
(EEMR) |
= |
ADR x 365 days
-----------------------
12 |
|
Where 365
days : |
299 |
days |
ordinaryworking
days |
52 |
days |
Sundays/rest
days |
11 |
days |
regular
holidays |
3 |
days |
special days |
---------- |
365 |
days |
Total
equivalent number of days/year
|
c.
|
For those
who do not work and are not considered paid on Sundays or rest days: |
|
(EEMR) |
= |
ADR x 313 days
------------------------
12 |
|
Where 313
days: |
299 |
days |
ordinaryworking
days |
11 |
days |
regular
holidays |
3 |
days |
special days |
313 |
days |
Total
equivalent number of days/year
|
d. |
For those who do not work
and are
not considered paid on Saturdays and Sundays or rest days:
|
|
(EEMR) |
= |
ADR x 261days
-----------------------
12 |
|
Where 261
days: |
247 |
days |
ordinaryworking
days |
11 |
days |
regular
holidays |
3 |
days |
special days |
---------- |
261 |
days |
Total
equivalent number of days/year
|
Sec. 11.
Mobile and Branch Workers.
a) The
prescribedminimum wage rates of workers, who by natureof their work
have to travel, shall be thoseapplicable in the domicile or head
officeof the employer.
b) The minimum
wage rates of workers working in branches or agencies of establishments
within the Region shall be those applicable in the place wherethey are
stationed.
Sec.
12. Transfer of Personnel. The transfer of personnel to areas
outside the Region shall not be a valid ground for the reduction of the
wage rates being enjoyed by the workers prior to such transfer. The
workers transferred to other regions with higher wage rates shall be
entitled to the minimum wage rate applicable therein.
Sec.
13. Appeal to the Commission. Any party aggrieved by the Wage
Order may file an appeal with the Commission through the Board within
ten (10) calendar days from the publication of the Order. The
Commission shall decide the appeal within sixty (60) calendar days from
the date of filing. The appeal shall be accompanied by a memorandum of
appeal which shall state the grounds relied upon and the arguments in
support of the appeal.
Sec.
14. Effect of Appeal. The filing of the appeal does not
operate to stay the Order unless the party appealing such Order shall
file with the Commission an undertaking with a surety or sureties
satisfactory to the Commission for payment to employees affected by the
Order of the corresponding increase, in the event such Order is
affirmed.
Rule III
Exemption
Section
1. No Exemption. No exemption from compliance with this Wage
Order shall be allowed.
Rule IV
Special Provisions
Section 1.
Effect on Existing Wage Structure. Should any dispute arise
as a result of wage distortion, the employer and the union shall
negotiate to correct the distortions 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, the voluntary arbitrator shall decide such
dispute or panel of voluntary arbitrators within ten (10) calendar days
from the time said dispute shall have been referred to voluntary
arbitration.
In cases where there
are no collective bargaining 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, the same shall be referred to the
appropriate branch of the National Labor Relations Commission (NLRC).
The NLRC shall 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 wage distortion shall not in any way delay the
applicability of any increase prescribed in the Order.
Sec.
2. 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.
3. Conduct of Inspection by the Department. The Department
shall conduct inspections of establishments, as often as necessary, to
determine whether the workers are paid the prescribed wage rates and
other benefits granted by law or any Wage Order.
In the conduct of
inspection in unionized companies, Department inspectors shall always
be accompanied by the president or other responsible officer of the
recognized bargaining unit or of any interested union. In the case of
non-unionized establishments, a worker representing the workers in the
said company will accompany the inspector.
The workers’
representative shall have the right to submit his own findings to the
Department and to testify on the same if he does not concur with the
findings of the labor inspector.
Sec.
4. Non-diminution of Benefits. Nothing in the Order and in
this Rule 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.
5. Productivity-Based Wages. In order to sustain rising level
of wages and enhance competitiveness, businesses are strongly
encouraged to adopt productivity improvement schemes, such as time and
motion studies, good housekeeping, quality circles, labor-management
cooperation, as well as implement gain sharing programs. Accordingly,
the Regional Board shall provide the necessary studies and technical
assistance pursuant to RA 6971, the Productivity Incentives Act of 1990.
Sec.
6. Penal Provision. Any
entity that refuses or fails to pay any of the prescribed increases or
adjustments in the wage rates made in accordance with this Order shall
be punished in accordance with the provisions of Sec. 12, Art 127 of RA
6727 as amended by RA 8188, which providesas follows:
"Sec.
12. Any person, corporation, trust, firm, partnership, association or
entity which refuses or fails to pay any of the prescribed increases or
adjustments in the wage rates made in accordance with this Act shall be
punished by a fine not less than Twenty-five thousand pesos (P25,000)
nor more than One hundred thousand pesos (P100,000) or imprisonment of
not less than 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 this Act shall not be entitled to the
benefits provided for under the Probation Law.
"The
employer 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 the criminal
liability imposed under this Act.
"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 manager, managing directoror partner."
Sec. 7.
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 Boards.cralaw:red
Sec. 8.
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.cralaw:red
Sec. 9.
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.cralaw:red
Sec. 10.
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.cralaw:red
Sec. 11.
Separability Clause. If any provision or part of
the Order and this Rule, 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.cralaw:red
Sec. 12.
Effectivity of Rules. This rule shall take effect on November
11, 2007.cralaw:red
APPROVED: Done in the City of Cebu,
Philippines, this 30th day of September 2007.
(Signed) HIDELITO
S. PASCUAL
Member, Employer Sector |
(Signed) MARIANITO
B. VENTURA
Member, Labor Sector |
(Signed) CHARLES
M. STREEGAN
Member, Employer Sector |
(Signed) JOSE
A. BOQUECOSA JR.
Member, Labor Sector |
(Signed) MARLENE
CA. P. RODRIGUEZ
Vice Chairperson |
(Signed) ASTERIA
C. CABERTE
Vice
Chairperson |
(Signed)
ELIAS
A. CAYANONG
Chairperson |
Approved
this 19th day of November, 2007.
ARTURO D. BRION
Secretary, Department of
Labor and Employment
Chairman, National Wages
and Productivity Commission |
|