Republic of the Philippines
Department of Labor and Employment
National Wages and Productivity Commission
REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARD
National Capital Region
RULES IMPLEMENTING WAGE
ORDER NO.
NCR-14
RULE I
GENERAL PROVISIONS
Pursuant to
Section
6, Rule IV of the National Wages and Productivity Commission Guidelines
No.
01-2007, otherwise known as the Amended Rules of Procedure on Minimum
Wage
Fixing and Section 23 of Wage Order No. NCR – 14, the following Rules
are
hereby issued for the guidance and compliance by all concerned:
Section 1. TITLE
. This shall
be known
as “The Rules Implementing Wage
Order No. NCR – 14”.
Section 2.
DEFINITION
OF
TERMS. As used in these Rules:
a.
Order –
means Wage
Order No. NCR – 14.
b.
Department
-means the
Department of Labor and Employment.
c.
ommission –
means the
National
Wages and Productivity Commission.
d.
Board
– means the
Regional
Tripartite Wages and Productivity Board –
National Capital Region.
e.
Regional Office
– refers to
the
regional office of the Department of Labor and Employment in the
National
Capital Region.
f.
National Capital
Region
– covers the Cities of Caloocan, Las Piñas, Makati, Mandaluyong,
Manila,
Marikina, Malabon, Muntinlupa, Navotas, Parañaque, Pasay, Pasig,
Quezon, San
Juan, Taguig and Valenzuela, and the Municipality of Pateros.
g.
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
activity
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.
h.
Establishment –
refers to an
economic
unit, which engages in one or predominantly one kind of economic
activity at a
single fixed location.
For
purposes of determining eligibility for exemption, establishments under
the
same owner/s but separately registered with the Securities and Exchange
Commission (SEC), Department of Trade and Industry (DTI) or Cooperative
Development Authority (CDA) as the case may be, irrespective of their
location,
shall be treated as individual and distinct establishments.
i.
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 Guidelines, retail establishments
must be
regularly employing not more than 10 workers.
j.
Service Establishment
– refers to
an entity
principally engaged in the sale of services to individuals for his own
or
household use and is generally recognized as such. For purposes
of this
Guidelines, service establishments must be regularly employing not more
than 10
workers.
k.
Distressed
Establishments
– refer to establishments which meet the criteria enumerated in Section
3A of
the National Wages and Productivity Commission (NWPC) Guidelines No. 02
Series
of 2007, otherwise known as the “Amended Rules on Exemption from
Compliance
with the Prescribed Wage Increases/Cost of Living Allowances Granted By
the
Regional Tripartite Wages and Productivity Boards.”
l.
Micro and Small
Indigenous Exporters
–
refer to
persons or entities licensed to do business in the
Philippines, engaged directly or indirectly in the production,
manufacture or
trade of export products using indigenous or native raw materials which
earn at
least fifty percent (50%) of their normal operating revenues from the
export
sales. Provided, furthermore, that the employment size or
capitalization is in
accordance with the DOLE policy or SMED Resolution No. 01, Series of
2003,
respectively.
m.
Barangay Micro
Business Enterprise (BMBE)
–
refers to any
business entity or
enterprise granted a Certificate of Authority under Republic Act No.
9178,
otherwise known as the Barangay Micro Business Enterprises Act of 2002.
n.
Establishments with
Total Assets of Not More Than Three Million Pesos
(P3,000,000.00 )
–
refers to
establishments whose total assets, including those arising from loans
but
exclusive of the land on which the business entity’s office, plant and
equipment are situated, are not more than Three Million (P3,000,000.00)
and
said establishments are not registered as BMBEs.
o.
Paid-up capital
– refers to
the
total amount of shareholder capital that has been paid by
shareholders.
p.
Capital –
refers to the
paid-up
capital at the end of the last full accounting period in the case of
corporations or total invested capital at the beginning of the period
under
review, in the case of partnerships and single proprietorships.
q.
Capital Impairment –
refers to the
diminution of capital due to accumulated losses.
r.
Stockholders’ Equity
– refers to
the
residual interest in the assets of an entity that remains after
deducting its
liabilities. It is total assets minus total liabilities. It
is the
same as equity and net worth.
s.
Full Accounting
Period
– refers to a period of twelve (12) months of business operations.
t.
Interim Period –
refers to a
financial
reporting period shorter than a full financial year (most typically a
quarter
or half-year).
u.
Deficit
– refers to the negative balance of the
retained earnings account of a corporation. Retained earnings represent
the
cumulative balance of periodic earnings, dividend distributions, prior
period
adjustments and other capital adjustments.
v.
Total Assets –
refers to
things of
value owned by the business such as cash, machines, building and land
which can
be measured or expressed in money terms.
w.
Net Loss –
refers to
actual loss
suffered by a company after deducting expenditures including overhead
and
interest charges from revenues.
x.
Financial Statement –
refers to a
written
report which quantitatively describes the financial health of a
company.
This includes the following: balance sheet, income statement,
statement
of changes in equity, cash flow statement and notes to financial
statement.
y.
Stock Corporation –
refers to one
organized for profit and issues shares of stock to its members.
z.
Non-stock, Non-profit
Organization –
refers
to one organized principally for public purposes such as charitable,
educational, cultural or similar purposes and does not issue shares of
stock to
its members.
aa.
Partnership –
refers to an
association of two or more persons who bind themselves to contribute
money,
property or industry to a common fund with the intention of dividing
the
profits among themselves or for the exercise of a profession.
bb.
Single Proprietorship
– refers to a
business unit owned
and controlled by only one person.
cc. Cooperative – refers to
a duly
registered association pursuant to R.A. 6938 (Cooperative Code of the
Philippines) and other laws.
dd.
Cost of Living Allowance (COLA) – refers to the
cost of living
allowance prescribed by the Board for covered private sector workers
and
employees in the National Capital Region.
ee.
Wage Distortion – refers to 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.
ff.
Quasi-banks – refers to institutions such as
investment houses
and financing companies performing quasi-banking functions as defined
by the
Bangko Sentral ng Pilipinas.
gg.
Conservatorship
–
refers
to a remedy resorted to by the Monetary Board in case a bank or
quasi-bank is
in a state of continuing inability or unwillingness to maintain
condition of
liquidity deemed adequate to protect the interests of the depositors
and
creditors. A conservator is appointed to manage the establishment in
order to
restore its viability.
hh.
Receivership/liquidation – refers to a remedy
resorted by the
Monetary Board in case a bank or quasi-bank is (a) unable to pay its
liabilities as they become due in the ordinary course of business; (b)
has
insufficient realizable assets as determined by the Bangko Sentral ng
Pilipinas
to meet its liabilities; (c) cannot continue in business without
involving
probable losses to its depositors or creditors; or (d) has willfully
violated a
cease and desist order under Sec. 37 that has become final involving
acts or
transactions which amount to fraud or dissipation of the assets of the
institution.
ii.
Under Corporate Rehabilitation – refers to
establishments that
are placed under a rehabilitation receiver by a court of competent
jurisdiction.
RULE
II
NEW MINIMUM WAGE
RATES
Section 1. AMOUNT OF
INCREASE.
Effective 14 June 2008, all minimum wage workers in the private
sector
in the National Capital Region shall receive an increase of Twenty
Pesos
(20.00)
per day consisting of Fifteen Pesos (P15.00) Basic
Wage and
Five Pesos (P5.00) Cost of Living Allowance.
Section 2.
MINIMUM WAGE RATES EFFECTIVE 14 June 2008.
The new daily minimum
wage rates in the National Capital Region shall be as follows:cralaw:red
INDUSTRY/SECTOR
|
Minimum Wage Under
W. O.
NCR-13 |
Basic Wage Under
W. O.
NCR-14 |
Cost of Living Allowance Under
W. O.
NCR-14 |
Total
|
Non-Agriculture |
362 |
15.00 |
5.00 |
382.00 |
Agriculture (Plantation and
Non-Plantation) |
325 |
15.00 |
5.00 |
345.00 |
Private Hospitals with bed capacity of
100 or less |
325 |
15.00 |
5.00 |
345.00 |
Retail/Service Establishments employing
15 workers or less |
325 |
15.00 |
5.00 |
345.00 |
Manufacturing Establishments regularly
employing less than 10 workers |
325 |
15.00 |
5.00 |
345.00 |
Section
3.
MINIMUM WAGE RATES EFFECTIVE 28 AUGUST 2008.
The Five Pesos
(P5.00) COLA shall be automatically integrated into the Basic Wage on
28 August
2008. The minimum wage rates in the National Capital region shall
therefore be as follows:
INDUSTRY/SECTOR
|
Minimum Wage Under
W. O.
NCR-13 |
Adjusted Basic Wage under
W.O. NCR-14
|
Total
|
Non-Agriculture |
362 |
20.00 |
382.00 |
Agriculture
(Plantation and Non-Plantation) |
325 |
20.00 |
345.00 |
Private Hospitals
with bed capacity of 100 or less |
325 |
20.00 |
345.00 |
Retail/Service
Establishments employing 15 workers or less |
325 |
20.00 |
345.00 |
Manufacturing
Establishments regularly employing less than 10 workers |
325 |
20.00 |
345.00 |
Section 4. COVERAGE.
The wage
increase
prescribed herein shall apply to all minimum wage earners in the
private sector
within the Region, regardless of their position, designation or status
and
irrespective of the method by which their wages are paid.
This
Wage Order shall
not cover household or domestic helpers; persons in the personal
service of
another, including family drivers; and workers of registered Barangay
Micro
Business Enterprises (BMBEs) with Certificates of Authority.
Section 5. BASIS OF MINIMUM
WAGE RATES.
The minimum wage rates prescribed under this Order shall be for the
normal
working hours which shall not exceed eight (8) hours of work a day.
Section 6.
APPLICATION
TO
PRIVATE EDUCATIONAL INSTITUTIONS. In the case of private
educational
institutions, the share of covered workers and employees in the
increase in
tuition fees for School Year 2008-2009 shall be considered as
compliance with
the increase prescribed herein. However, payment of any shortfall in
the wage
increase set forth herein shall be covered starting School Year
2009-2010.
Private
educational
institutions, which have not increased their tuition fees for School
Year
2008-2009, may defer compliance with the provisions of this Wage Order
until
the beginning of School Year 2009-2010.
In
any case, all private educational institutions shall implement the
increase
prescribed herein starting School Year 2009-2010.
Section 7.
APPLICATION TO CONTRACTORS.
In case of
contracts for construction projects, security,
janitorial and other similar services, the increase in the minimum wage
prescribed herein shall be borne by the principal or client of the
contractor
and the contract shall be deemed amended accordingly as mandated
under
Section 6, R.A. 6727.
In
the event,
however, that the principal or client fails to pay the prescribed wage
rates,
the construction/service contractor shall be jointly and severally
liable with
his principal or client.
Section 8.
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 for workers paid by results shall be computed in accordance
with the
following steps:
a. Amount
of Increase in AMW*
---------------------------------------
= X
100 = %
increase
Previous AMW
20.00
x
100 = 5.52%
362.00
b. Existing
rate/piece x % increase = Increase in rate/piece;
Existing
rate/piece x
0.0552 = Increase in rate/piece
c. Existing
rate/piece + Increase in rate/piece = Adjusted rate/piece
*Where
AMWis the
Applicable Minimum Wage rate.
The
wage rate of
workers who are paid by results shall be continue to be established in
accordance with Article 101 of the Labor Code, as amended and its
implementing
rules and regulations.
Section 9. WAGES OF
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 this Order. All recognized learnership and apprenticeship agreements
entered
into before the effectivity of the Order shall be considered
automatically
modified in so far as their wage clauses are concerned to reflect the
adjustments prescribed under the same Order.
All
qualified
handicapped workers shall receive the full amount of the minimum wage
rate
prescribed herein pursuant to Republic Act No. 7277, otherwise known as
the
Magna Carta for Disabled Persons.
Section 10.
SUGGESTED FORMULA IN DETERMINING THE EQUIVALENT
MONTHLY
REGIONAL MINIMUM
WAGE RATES.
Without
prejudice to
existing company practices, agreements or policies, the following
formula may
be used as guides in determining the equivalent monthly minimum wage
rates:
a. For those who
are required
to work everyday including Sundays or rest days, special
days and regular holidays:
Equivalent
Monthly Applicable
Daily Wage Rate
(ADR) x 392.50 days
Rate (EMR)
=
------------------------------------------------------------
12
months
Where
392.50 days :
299 days
– Ordinary working
days
22 days
– Regular holidays
67.6 days
– 52 rest days x
130%
3.90 days
– 3 special days x
130%
----------
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:
ADR x 365 days
EMR
= ------------------------
12 months
Where 365
days :
299 days Ordinary
working days
52 days 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:
ADR x 313 days
EMR
= ------------------------
12 months
Where
313 days :
299 days Ordinary
working 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 Sundays or rest days:
ADR x 261 days
EMR
= ------------------------
12 months
Where 313
days :
247 days Ordinary
working days
11 days
Regular holidays
3 days Special holidays
--------
261 days Total
equivalent number of days/year
Section 11.
MOBILE
AND BRANCH
WORKERS. The minimum wage rates of workers, who, by the 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 in
or
outside the National Capital Region shall be those applicable in the
place
where they are stationed.
Section 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 rates
applicable
therein.
Section 13. APPEAL TO
THE COMMISSION.
Any party aggrieved by this Wage Order may file a Notice of Appeal to
the
Commission through the Board within ten (10) calendar days from the
publication
of the Order. Pursuant to Section 5, Chapter III of the Rules
Implementing R.A. 6727, the Commission shall decide the appeal within
sixty
(60) calendar days from the date of filing. The Notice of Appeal
shall be
accompanied by a Memorandum of Appeal, which shall state the grounds
relied
upon, and the arguments in support of the appeal.
Section 14. EFFECT OF
APPEAL.
The filing of the appeal does not operate to stay the effectivity of
the Wage
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 that such Order is affirmed.
RULE
III
EXEMPTIONS
Section 1.
WHO MAY
BE
EXEMPTED. Upon application with and as determined by the Board,
based on
compliance with the criteria and requirements in the applicable rules
and
regulations, the following may be exempted from the applicability of
this
Order:
1.
Distressed
establishments;
2.
Establishments
whose Total Assets including those arising from loans but exclusive of
the land
on which the particular business entity’s office, plant and equipment
are
situated, are not more than P3Million;
3.
Retail/Service
establishments employing not more than ten (10) workers;
4.
Establishments
adversely affected by natural calamities;
5.
Micro and small
indigenous exporters as certified by the Export Development Council.
Section
2.
CRITERIA
FOR
EXEMPTION. In order to determine whether an applicant establishment
is
qualified for exemption, the following are the criteria:
A.
Distressed
Establishments
1. For
Corporations/ Cooperatives
a.
Full Exemption
a.1.
When the deficit, as defined in Section I (N) of NWPC Guidelines No.
02, Series
of 2007, as of the last full accounting period immediately preceding
the
effectivity of the Order amounts to 20% or more of the paid-up capital
for the
same period; or
a.2.
When an establishment registers capital deficiency i.e., negative
stockholders'
equity, as of the last full accounting period immediately preceding the
effectivity of the Order.
b.
Partial
Exemption
b.1. When
the deficit, as defined in Section I (N)
of the abovementioned Guidelines, as of the last full accounting period
immediately preceding the effectivity of the Order amounts to at least
10% but
less than 20% of the paid-up capital for the same period.
c.
Conditional
Exemption
c.1.
When the actual net loss as of the interim period immediately preceding
the
effectivity of the Order amounts to at least 25% of total assets
2.
For Single
Proprietorships/Partnerships
a.
Full
Exemption:
a.1.
When the accumulated net losses 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;
or
a.2.
When an establishment registers capital deficiency i.e., negative
net worth as of the last full accounting period
immediately
preceding the effectivity of the Order.
b.
Partial
Exemption:
b.1.
When the accumulated net losses for the last two (2) full accounting
periods
immediately preceding the effectivity of the Order amounts to at least
10% but
less than 20% of the total invested capital at the beginning of the
period
under review.
c.
Conditional
Exemption
c.1.
When the actual net loss as of the interim period immediately preceding
the
effectivity of the Order amounts to at least 25% of total assets.
3.
For
Non-stock, Non-profit Organizations
a.
Full
Exemption:
a.1.
When the accumulated net losses 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;
or
a.2.
When an establishment registers capital deficiency i.e., negative fund
balance/members' contribution as of the last full accounting period or
interim
period, if any, immediately preceding the effectivity of the Order.
b.
Partial
Exemption:
b.1.
When the accumulated net losses for the last two (2) full accounting
periods
immediately preceding the effectivity of the Order amounts to at least
10% but
not more than 20% of the fund balance/members' contribution at the
beginning of
the period.
c.
Conditional
Exemption:
c.1.
When the actual net loss as of the interim period immediately preceding
the
effectivity of the Order amounts to at least 25% of total assets.
4.
For Banks and
Quasi-banks
a.
Under
receivership/liquidation
Exemption
may be granted to a bank or quasi-bank under receivership or
liquidation when
there is a certification from the Bangko Sentral ng Pilipinas that it
is under
receivership or liquidation as provided in Section 30 of RA 7653,
otherwise
known as the New Central Bank Act.
b.
Under
controllership/conservatorship
A
bank or quasi-bank under controllership/ conservatorship may apply for
exemption as a distressed establishment under Section 3 A of this
Guidelines.
5.
Establishments
Under Corporate Rehabilitation
When
there is an order from a court of competent jurisdiction that it is
under
rehabilitation as provided in Section 6 Rule IV of the Interim Rules of
Procedure on Corporate Rehabilitation (2000).
B.
Establishment
whose Total Assets including those arising from loans but exclusive of
the land
on which the particular business entity’s office, plant and equipment
are
situated, are not more than P3Million
Exemption
may be
granted to an establishment whose total assets are not more than
P3Million
when:
1.
Its total
assets
during the current year of effectivity of the Order amount to not more
than
Three Million Pesos (P3,000,000.00).
2.
Total Assets
refer to
all kinds of properties, real or personal used for the conduct of
business,
including proceeds of loans, but excluding the land on which the
particular
business entity’s office, plant and equipment are situated.
3.
Establishment
is not
registered as a Barangay Micro Business Enterprise (BMBE)
C
. Retail/Service
Establishments Regularly Employing Not More Than Ten (10) Workers
Exemption
may be
granted to a retail/service establishment when:
1.
It is engaged
in the
retail sale of goods and/or services to end users for personal or
household
use.
2.
It is
regularly
employing not more than ten (10) workers regardless of status, except
the
owner/s, for at least six (6) months in any calendar year.
D.
Establishments
Adversely Affected by Natural Calamities
1.
The
establishment
must be located in an area declared by a competent authority as under a
state
of calamity.
2.The natural
calamities, such as earthquakes, lahar flow, typhoons, volcanic
eruptions,
fire, floods and similar occurrences, must have occurred within 6
months prior
to the effectivity of the Order.
3.
Losses
suffered by
the establishment as a result of the calamity that exceed the insurance
coverage should amount to 20% or more of the stockholders' equity as of
the
last full accounting period in the case of corporations and
cooperatives, total
invested capital in the case of partnerships and single proprietorships
and
fund balance/members' contribution in the case of non-stock non-profit
organizations.
Only
losses or damage to properties directly resulting from the calamity and
not incurred as a result of normal business operations shall be
considered.
4. Where
necessary, the
Board or its duly authorized representative shall conduct an ocular
inspection
of the establishment or engage the services of experts to validate the
extent
of damages suffered
E.
Micro and small
indigenous exporters as certified by the Export Development Council
(EDC)
Exemption
may be
granted to micro and small indigenous exporter when:
1.
It is
licensed to do
business in the Philippines;
2.
It engages
directly
or indirectly in the production, manufacture or trade of export
products;
3.
It is
certified
by the EDC as an exporter using indigenous materials;
4.
At least
fifty
percent (50%) of its revenues is earned from export sales;
5.
The main
component of
its product is made of native raw materials;
6.
The
employment size
or capitalization should be in accordance with the criteria of micro or
small
under the DOLE policy (Micro – 1 to 9 workers; Small – 10 to 99
workers) and
SMED Resolution No. 1, Series of 2003, (Micro – P3M and below;
Small –
over P3M but not more than P15 M) respectively
Section
3. DOCUMENTS
REQUIRED
The
following supporting
documents shall be submitted together with the application:
For All
Categories of
Exemption
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 a
circular giving general notice of the filing of the application to all
the
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.
A.
For
Distressed Establishments
1.
For corporations,
cooperatives, single proprietorships, partnerships, non-stock,
non-profit organizations.
a.
Full or
Partial
Exemption
a.1.
Audited financial statements (together with the Auditor's opinion and
the
notes thereto) for the last two (2) full accounting periods
"received" by the appropriate government agency.
b.
Conditional
Exemption
b.1.
Audited
financial statement (together with the Auditor's 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.
b.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.
2.
For Banks and
Quasi-banks
Certification
from
Bangko Sentral ng Pilipinas that it is under Conservatorship or
receivership/
liquidation.
3.
For Establishments Under Corporate Rehabilitation
Order
from a court of
competent jurisdiction that the establishment is under rehabilitation.
B.
For
Retail/Service Establishments Employing Not More Than
Ten (10) Workers:
1.
Affidavit from employer stating the following:
1.
It is a
retail/service establishment.
2.
It is
regularly
employing not more than ten (10) workers for at least six months in any
calendar year.
2. Business
Permit for the current year from the appropriate government agency.
C.
For
Establishments Adversely Affected by Natural Calamities
1.
Affidavit
from the
General Manager or Chief Executive Officer of the establishment
regarding the
following:
a.
Date and type
of
calamity
b.
Amount of
losses/damages suffered as a direct result of the calamity
c.
List of
properties
damaged/lost together with estimated valuation
d.
For
properties that
are not insured, a statement that the same are not covered by insurance
2.
Copies of
insurance
policy contracts covering the properties damaged, if any.
3.
Adjuster’s
report for
insured properties.
4.
Audited
financial
statements for the last full accounting period preceding the
effectivity of the
Order stamped received by the appropriate government agency.
D.
For
Establishments which Total Assets including those arising from loans
but
exclusive of the land on which the particular business entity’s office,
plant
and equipment are situated, are not more than P3Million
1.
Business
permit from
the appropriate government agency/ies.
2.
Sworn
Statement
stating that its total assets are not more than P3Million and
enumerating the
properties being used in the conduct of the business, whether real or
personal,
with its corresponding values and reflecting the following information
i).
Date of
acquisition
ii).
Acquisition cost
iii).
Depreciated
value
3. Copy of Loan
Contract
and duly notarized Certification of Amortization Payments on the loan
(if any)
4.
Duly
notarized copy
of Contract of Lease for assets used in the conduct of business covered
by
lease agreement (if any).
E.
For Micro
and Small Indigenous Exporters
1.
Application
letter
under oath.
2.
Affidavit
from the
employer stating the principal economic activity, number of workers,
total
assets, list of forward contracts entered into stating the name of
foreign
buyers or principals and their addresses, date of contracts, delivery
or
shipping dates and amount of volume of order.
3. Certification
from
any appropriate government agency that the company earns at least fifty
percent
(50%) or more export sales.
4.
Irrevocable
letters
of credit/Proof of payment from principal.
5.
Notarized
purchase
orders.
6.
Proof of
acceptance
of the latest purchase order.
7.
Bills of
lading/delivery receipts
8.
Certification
from
Export Development Council that the company is an exporter using
indigenous
materials.
9.
Sworn
Statement that
its product is made of native raw materials and stating other
specifications of
the product.
10. Articles
of Incorporation from the Securities and Exchange Commission (SEC) or
Registration document from the DTI.
The
Board may require
the submission of other pertinent documents to support the application
for
exemption.
Section
4. EXTENT AND
DURATION OF EXEMPTION.
A.
Full
Exemption of one (1) year from effectivity of the Order shall be
granted to all
categories of establishments that meet the applicable criteria for
exemption
under Section 3 A of NWPC Guidelines No. 02 series of 2007.
B.
Partial
exemption of 50% from effectivity of the Order with respect to the
amount or
period of exemption shall be granted only in the case of distressed
establishments under Section 3 A of NWPC Guidelines No. 02 series of
2007.
C.
Conditional
exemption of one (1) year from effectivity of the Order shall be
granted only
in the case of distressed establishments under Section 3 A of NWPC
Guidelines
02 series of 2007. The conditional exemption shall be confirmed,
as follows:
c.1.
For Corporations
When
deficit as defined in Section I (N) of the abovementioned Guidelines,
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
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
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 wage
increases due
them under the Order, retroactive to the effectivity of the Order.
SECTION
5. ACTION ON
APPLICATION FOR EXEMPTION
Upon
receipt of an
application with complete documents, the Board shall take the following
steps:
a.
Notify the
DOLE
Regional Office having jurisdiction over the workplace of the pendency
of the
application requesting that action on any complaint for non-compliance
with the
Order be deferred pending resolution of the application by the Board.
b.
Request the
DOLE
Regional Office to conduct ocular inspection, if necessary, of
establishments
applying for exemption to verify number of workers, nature of business
and
other relevant information.
c.
Act and
decide on the
application for exemption with complete documents, as much as
practicable,
within 45 days from the date of filing. In case of contested
application, the
Board may conduct conciliation or call hearings thereon.
d.
Transmit the
decision
of the Board to the applicant establishment, the workers or president
of the
union, if any, and the Commission, for their information; and the DOLE
Regional
Office concerned, for their implementation/enforcement.
The
Board may create a Special Committee with one representative from each
sector to expedite processing of applications for exemption.
SECTION 6.
APPLICATION FOR PROJECTS/BRANCHES/DIVISIONS
Where
the exemption
being sought is for a particular project/branch/division not separately
registered and licensed, the consolidated audited financial statements
of the
establishment shall be used as basis for determining its distressed
condition.
SECTION
7. 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.
SECTION
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/allowance as provided for under the Order
retroactive to
the date of effectivity of the Order plus simple interest of one
percent (1%)
per month.
SECTION
9. PROCEDURES
ON EXEMPTION
A.
For
Filing of Application
1.
An
application, in
three (3) legible copies may be filed with the appropriate Board by the
owner/manager or duly authorized representative of an establishment, in
person
or by registered mail.
The
date of mailing shall be deemed as the date of filing.
Applications
for exemption filed with the DOLE regional, district or provincial
offices are
considered filed with the appropriate Board in the region. The Office
where the
application for exemption was filed shall transmit the application
together
with all the pertinent documents to the appropriate board for action
and
consideration
2.
Applications
for all
categories shall be filed not later than 75 days from publication of
the
approved implementing rules of the Order, provided that all the
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.
3.
The
application shall
be under oath and accompanied by complete supporting documents as
enumerated
under Section 4 of NWPC Guidelines 02 series of 2007
B.
For
Filing of Opposition
Any
worker or, if
unionized, the union in the applicant establishment, may file with the
appropriate Board within fifteen (15) days from receipt of the notice
of the
filing of the application, an opposition to the application for
exemption
stating the reasons why the same should not be approved, furnishing the
applicant a copy thereof. The opposition shall be in three (3) legible
copies,
under oath and accompanied by pertinent documents, if any.
C.
For Filing
of Motion for Reconsideration
The
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 within the reglementary period prescribed in NWPC Guidelines
No. 02,
Series of 2007.
D.
For Filing
of Appeal to the Commission
1.
Appeal
– Any party aggrieved by the decision of the
Board may file a Notice of 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
Notice of 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.
The
appeal shall not be deemed perfected if it is filed with any office or
entity
other than the Board.
No
motion for extension of time to file an appeal shall be entertained.
2.
Grounds for
Appeal
– An appeal may be filed on any of the
following grounds:
a.
Non-conformity with the prescribed guidelines and/or procedures on
exemption;
b.
Prima facie evidence of grave abuse of discretion on the part of the
Board; or
c.
Questions of law.
3.
Opposition
– The appellee may file with the Board his
reply or opposition to the appeal within ten (10) days from receipt of
the
appeal. Failure of the appellee to file his reply or opposition shall
be
construed as waiver on his part to file the same.
4.
Transmittal
of
records
– Within five (5) days upon receipt
of
the reply or opposition of the appellee or after the expiration of the
period
to file the same, the entire records of the case which shall be
consecutively
numbered, shall be transmitted by the Board to the Commission.
RULE
IV
CREDITABLE
INCREASE
Section
1. ORGANIZED
ESTABLISHMENTS.
Wage increases granted by an employer in an organized establishment
within
three (3) months prior to the effectivity of the Order may be credited
as
compliance with the prescribed increase set forth therein; Provided
that an
agreement to this effect has been forged between the parties or a
provision in
the collective bargaining agreement allowing creditability exists.
In
the absence of
such an agreement or provision in the CBA, any increase granted by the
employer
shall not be credited as compliance with the increase prescribed in
this Order.
Section
2.
UNORGANIZED ESTABLISHMENTS.
In
unorganized establishments, wage increases granted by
the employer within five (5) months prior to the effectivity of the
Order may
be credited as compliance.
Section
3. CREDITABLE
INCREASES GIVEN IN THE FORM OF ALLOWANCES.
Where the
increase given by the
employer is in the form of allowances, the employer shall integrate the
amount
of Fifteen Pesos (P15.00) into the basic wage of the workers and on 28
August
2008, the Five Peso (5.00) COLA prescribed in the Wage Order
shall be
integrated into the basic wage.
However,
if the
amount of the increase is greater than the increase granted under the
Wage
Order, the employer has the option to integrate partially or in full
the
allowances earlier given provided the amount integrated to the basic is
in
compliance with the Wage Order. In the event of partial integration,
any excess
maybe retained as allowances.
Section
4. CREDITABLE
INCREASES GIVEN LESS THAN THE PRESCRIBED ADJUSTMENTS.
In case the
increases
given are less than the prescribed adjustments, the employer shall pay
the
difference. Such increases shall not include anniversary increases,
merit wage
increases, and those resulting from the regularization or promotion of
employees.
RULE
V
SPECIAL
PROVISIONS
Section
1. EFFECT ON
EXISTING WAGE STRUCTURE
. In
accordance with Article 124 of the Labor Code, 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, such dispute shall be decided by the voluntary arbitrator 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.
Pursuant to
existing rules, any dispute arising there from 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 any
dispute arising from a wage distortion shall not in any way delay the
applicability of the increase prescribed in the Order.
Section
2. COMPLAINTS
FOR NON-COMPLIANCE
.
Complaints for non-compliance with the Order shall be filed with the
Regional
Office of the Department and shall be the subject of enforcement
proceedings
under Articles 128 and 129 of the Labor Code, as amended.
Section
3. CONDUCT OF
INSPECTION BY THE DEPARTMENT.
In
accordance with existing rules, 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/organized establishments, Department inspectors shall always
be
accompanied by the president or other responsible officer of the
recognized
collective bargaining unit or of any interested union. In the case of
non-unionized/non-organized establishments, a worker representing his
fellow
employees in the establishment 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.
Section
5.
NON-DIMINUTION OF BENEFITS.
Nothing in
this Order shall be
construed to eliminate or in any way diminish, or as authorizing the
reduction
of any existing wage rates, allowances, benefits and supplements of any
form
under existing laws, decrees, issuances, executive orders, and/or under
any
contract or agreement between the workers and employers, or employer
practices
or policies, being enjoyed at the time of the promulgation of this
Order.
Section
6.
PROHIBITION AGAINST INJUNCTION.
No
preliminary or permanent injunction
or temporary restraining order may be issued by any court, tribunal or
other
entity against any proceeding before the Board as provided for under
Article
126 of the Labor Code, as amended.
Section
7
. 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.
Section
8. PENAL
PROVISION.
Pursuant to the provisions of Section 12 of Republic Act No. 6727, as
amended
by Republic Act No. 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 not less than Twenty-Five
Thousand Pesos
(25,000.00) nor more than One Hundred Thousand Pesos (100,000.00) 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 the Order shall not be entitled to the
benefits
provided 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 imposable under the
aforementioned 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
director or
partner.
Section
9. REPORTING
REQUIREMENT.
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, 2009 and every year thereafter in accordance
with
the form prescribed by the Commission.
Section
10.
SEPARABILITY
CLAUSE. If any provision or part of these Implementing Rules is
declared
unconstitutional, or in contrast with existing laws, the other
provisions or
parts thereof shall remain valid.
Section
11. REPEALING
CLAUSE.
All
orders, issuances, rules and regulations or parts thereof inconsistent
with the
provisions of the Wage Order and this Implementing Rules are hereby
repealed,
amended or modified accordingly.
Section
12.
EFFECTIVITY.
These Rules shall take effect on 14 June 2008.
Done in the
City of
Manila, Philippines, 02 June 2008.
(Sgd.) JESSIE
L. AGUILAR
Labor Representative |
(Sgd.)
VICENTE LEOGARDO, JR.
Employer Representative |
|
|
|
|
(Sgd.)
GERMAN N. PASCUA, JR.
Labor Representative |
(Sgd.)
ALBERTO R. QUIMPO
Employer Representative |
|
|
|
|
(Sgd.)
MA. THERESA L. PELAYO
Vice-Chairperson |
(Sgd.) MYRNA
CLARA B. ASUNCION
Vice-Chairperson |
|
|
|
|
|
|
(Sgd.)
RAYMUNDO G. AGRAVANTE
|
Chairperson |
|
Approved this
17th day of June, 2008 |
|
(Sgd.)
MARIANITO D.
ROQUE
DOLE Secretary |
|