WAGES It is the remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time,

, task, piece, or commission basis, or other method of calculating the same, payable by an ER to an EE under a written or unwritten contract of employment: 1. For work done or to be done, for services rendered or to be rendered; and includes. 2. Fair and reasonable value of board, lodging, or other facilities customarily furnished by the ER to ES as determined by the SLE. Q: To whom does the title on wages apply? A: GR: It applies to all employees XPN: 1. Farm tenancy or leasehold; 2. Household or domestic helpers, including family drivers and persons working in the personal service of another; 3. Home workers engaged in needlework or in any cottage industry duly registered in accordance with law; 4. Workers in duly registered cooperatives when so recommended by the Bureau of Cooperative Development and upon approval of the Sec of Labor and Employment.

5. Workers of a barangay micro business enterprise (RA 9178) FACILITIES AND SUPPLEMENTS Q: Distinguish between facilities and supplement FACILITIES Items of expenses necessary for the laborers and his familys existence and subsistence SUPPLEMENTS Extra remuneration or special privileges or benefits given to or received by the laborers over and above their ordinary earnings or wages (Atok Big Wedge Mining Co. v. Atok Big wedge Mutual Benefit Assoc. )

NOTE: Does NOT include tools of trade or articles / services primarily for the benefit of the ER or necessary to the conduct of the ERs business. Forms part of Independent the wage wage Deductible from wage For the benefit of the worker and his family

of

Not wage deductible Granted for the convenience of the ER

Facilities For the benefit of the EEs subsistence. Supplements For the convenience of the ER Q: What is the criterion in determining whether an item is a supplement or facility? A: The criterion is not so much with the kind of the benefit or item (food,

lodging, bonus or sick leave) given, but its purpose. ( State Marine v. Cebu Seamans Assn) NOTE: In order that the cost be charged against the EE, the latters acceptance of such facilities be voluntary.

Considered pay for a lower and less responsible character of employment. GR: Not subject to execution XPN: Debts incurred for food, shelter, clothing and medical attendance. Payment of wages

Out gesture of a larger and more important service Subject execution to

Q: What are the requirements for deducting values for facilities? A: 1. Proof must be shown that such facilities are customarily furnished by the trade 2. The provision of deductible facilities must be voluntarily accepted in writing 3. The facilities must be charged at fair and reasonable value (Mabeza v. NLRC, G.R. No. 118506, April 18, 1997) Wages v. Salaries Gaa v.CA WAGE Compensation for manual labor (skilled or unskilled) also known as blue collared workers, paid at stated times and measured by the day, week, month or season SALARY Paid to white collared workers and denotes higher degree of employment or a superior grade of services and implies a position in office.

Bonus, not part of basic salary/wage Non-diminution of benefits Q: What is the concept diminution of benefits? of non-

A: GR: Benefits being given to the EEs cannot be taken back unilaterally by the ER because the benefit has become part of the employment contract, whether written or unwritten. XPN: To correct an error, otherwise, if the error is not corrected for a reasonable time, it ripens into a company policy and EEs can demand it as a matter of right. Q: When is applicable? the ND of benefits

A: It is applicable if it is shown that the grant of benefit: 1. Based on an express policy of the law; or 2. Has ripened into practice over a long period of time and the practice is consistent and

deliberate and is not due to an error in the construction/application of a doubtful or difficult question of law. No work no pay principle Q: What does a fair days wage for a days labor mean (no work no pay)? A: GR: If there is no work performed by the EE, w/o the fault of the ER, there can be no wage or pay. XPN: The laborer was able, willing and ready to work but was: 1. Prevented by management; 2. Illegally locked out; 3. Illegally suspended; 4. Illegally dismissed 5. Otherwise illegally prevented from working. ( Aklan electric Coop. v. NLRC ) Equal pay for equal work Prohibitions regarding wages (7) Art. 112-118 Q: What are the labor code provisions for wage protection?
A: Art. 112. Non-Interference in 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 properties from the empl oyer

or from any other person, or otherwise make u se of any store or service of such employer or any other person. Art. 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 (c)In cases where the employer is authorized b y law or regulations issued by the Secretary of Labor. Art. 114 No employer shall require his worker to make deposits from which deductions shall be made for the reimbursement of loss of or damage to tools, materials or equipments 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 in appropriate rules and regulations. Art. 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.

Art 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. Art 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 o r his representative or intermediary as consideration of a promise of employment or retention in employment or retention in employment. Art. 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 instituted any proceeding under this Title or has testified or is about to testify in such proceedings.

Allowable deductions Q: What is the rule in wage deductions? A: GR: It is strictly prohibited EXN: 1. Deductions for insurance premiums (Art.113) 2. Union dues in cases where the right of the worker or his union to check off has been recognized by the ER or authorized in writing by the individual worker concerned (Art. 113)

NOTE: Art. 241(o) provides that special assessments may be validly checked-off provided that there is an individual written authorization duly signed by every EE. 3. SSS, Medicare and Pag-ibig premiums 4. Taxes withheld 5. Deductions under Art. 114 for loss or damage to tools, materials or equipment 6. Deductions made with the written authorization of the EE for payment to a 3rd person. (Sec 13,Rule VII, Book III of the IRR) 7. Deductions as disciplinary measures for habitual tardiness (opinion dated March 10, 1975 of the SLE) 8. Agency fees under Art. 248 (e) 9. Deductions for value of meals and facilities freely agreed upon 10. In case where the EE is indebted to the ER where such indebtedness has become due and demandable. (Art. 1706, Civil Code) 11. In court awards, wages may be subject of execution or attachment, but only for debts incurred for food, shelter, clothing, and medical attendance. (Art. 1703, Civil Code) 12.