Quiz 2 Module 3- Labor Law Review

I.

1. No. The hotel has no legal grounds to deduct the food and lodging cost from
Andrea’s basic salary. The food and lodging cost partakes the nature of
supplements rather than facilities.

Facilities are items of expense necessary for the laborer’s and his family’s
subsistence while supplements constitute extra remunerations or special privileges
granted to laborers over and above their ordinary earnings. Facilities are granted
for the benefit of employees while supplements are given to the employees for the
benefit of the employer. Facilities can be deducted from wages while supplements
cannot be deducted from wages.

Further, before the value of facilities may be deducted from the employees’
wages, the following requisites must be present: a) there must be showing of proof
that such facilities were given customarily given by the trade or business; b) the
provision on deductibility of facilities must be voluntarily accepted in writing by
the employee; and c) the facilities must be charged a fair and reasonable value. The
mere availment of such is not sufficient to allow deduction from worker’s wages.

In this case, the food and lodging partakes the nature of a supplement. It is
granted to hotel employees for the benefit of the employer. The hotel employees
were given food and lodging in order for them not to go out of the hotel’s premises
in order to address and not to disrupt the operations of the hotel business. It is more
beneficial for the employer’s business. As supplements, it cannot be deducted from
the wages of the employees. Hence, the hotel has no legal grounds to deduct the
food and lodging cost from Andrea’s basic salary.
Quiz 2 Module 3- Labor Law Review

2. Andrea is entitled for a total of Php910.00 for rendering work during Good
Friday and rendering work on 10-11PM which also entitles her to night shift
differentials during such regular holiday.

Good Friday is declared as a regular holiday. Pursuant to Labor Code, if a

worker renders work during regular holiday, he is entitled for 200% of his daily
rate. In this case, Andrea rendered her services on Good Friday. As such, her daily
rate of Php400.00 shall be multiplied by 2 to get the Php800.00 salary for that day.

Andrea is likewise entitled for night shift differentials. Night Shift

differential of not less than 10% of the basic hourly rate shall be granted to
employees for the hours rendered between 10PM to 6 AM. This is to give premium
to night work when an employee is supposed to be sleeping and rest in accordance
with the law of nature. In this case, Andrea rendered work from 10PM -11PM
falling in a regular holiday. To determine her entitlement to night shift
differentials, her hourly rate of Php50 shall be multiplied by 2 because it is a
regular holiday and further multiplied to 110% in order to get Php110 as night shift
differentials for work rendered on 10PM-11PM during regular holiday.

Hence, Andrea is entitled to Php800 for work rendered during the holiday
and Php110 for work rendered on 10PM-11PM during regular holiday as night
shift differential pay for a total of Php910 for that day.
Quiz 2 Module 3- Labor Law Review

3. (same as u)
Quiz 2 Module 3- Labor Law Review

4. As the counsel for the Hotel A, my legal advice would be that Andrea’s
refusal to work on during such circumstance is tantamount to gross
insubordination. An employee cannot be compelled by employer to work beyond
the normal working hours, as a general rule. However, when the employee works
beyond the normal working hours, he is entitled to overtime pay. It must be agreed
upon by the employer and employee or at the very least must be known by the
employer.

In this case, Andrea is ordered by the supervisor to fill up for Anne who
failed to report due to accident while on her way to work. The order of the
supervisor necessitates the presence of Andrea on the work assuming no other
employee who will take charge for the hotel’s operations. In such case, it is a valid
prerogative of the employer to require the performance of work of an employee to
prevent serious obstruction or prejudice to the business or operations of the Hotel
A. Hence, the non-compliance of Andrea to the valid and lawful order of
supervisor is tantamount to gross insubordination.
Quiz 2 Module 3- Labor Law Review

II.

1. Yes. Pursuant to the Labor Code, the wage paid to any employee shall mean
the remuneration of earnings, however designated, capable of being expressed in
terms of money, whether fixed or ascertained on a time, task, piece, or commission
basis. This definition explicitly includes productivity allowance as part of wages.
While productivity allowances are, indeed, incentives or forms of encouragement
to inspire employees to put a little more industry on the jobs particularly assigned
to them, still these incentives are direct remunerations for services rendered.

In this case, Makisig’s productivity allowance shall be included because it is

considered as part of his wage. The nature of the work of Makisig as a medical
representatives and the reason for such type of remuneration for services rendered
demonstrate clearly that productivity allowances are part of a medical
representative’s wage or salary. Hence, it shall be included as part of wages.
Quiz 2 Module 3- Labor Law Review

2. The burden of proof for the payment of salary differentials, service incentive
leave pay, holiday pay and 13th month pay shall rests on the employer. It will be
the employer who has the burden to prove payment of the above claims
considering that it is the employer who is in possession of the personal records,
payroll’s files and other similar documents.

On the other hand, for claims on overtime pay, rest days, and premium on
holiday pays, the burden of proof shall be shifted to the employee as these claims
are not incurred by the workers in the ordinary course of business. The rendered
work is not within the regular hours or days of work. Thus, the burden of proof is
upon the employees to prove before the employer that they have rendered service
or work during holidays or rest days or rendered work in excess of the normal
working hours.

In this case, the monetary claims for overtime pay, rest days, and premium
on holiday pays shall be proven by Makisig. On the other hand, the employer has
the burden to prove the salary differentials, SIL, overtime pay and 13th month pay.
Quiz 2 Module 3- Labor Law Review

III.

I will rule in favor of Maliksi, the company bus driver. Maliksi is not
considered as field personnel. As such he is entitled to service incentive leave pay
and overtime pay. Field personnel are those who regularly perform their duties
away from the principal place of business of the employer and whose actual hours
of work in the field cannot be determined with reasonable certainty.

In here, Maliksi is not a field personnel as defined above because:

(1) Maliksi, as bus driver, is directed to transport his passengers at a

specified time and place;

(2) he is not given the discretion to select and contract with prospective
passengers;

(3) his actual work hours could be determined with reasonable certainty, as
well as his average trips per month; and

(4) the bus company supervised his time and performance of duties.

Bus drivers cannot be considered as field personnel because they are under
control and constant supervision of the bus companies while in the performance of
their work. Clearly, as bus drivers, they are left alone in the field with the duty to
comply with the conditions of the bus company, as well as to take proper care and
custody of the bus they are using. Bus drivers should be considered as regular
employees of the respondents because they perform tasks which are directly and
necessarily connected with the bus company’s business. Thus, Maliksi is entitled to
the benefits accorded to regular employees of the bus company, including overtime
pay and SIL pay.
Quiz 2 Module 3- Labor Law Review

IV.

Wage distortion refers to a situation where an increase in prescribed wage

rates results in the elimination of the quantitative differences in wage or salary
rates and resulted to a severe contraction of intentional quantitative differences in
wages or salary rates between and among employee groups in an establishment as
to effectively obliterate the distinctions embodied in such wage structure based on
the skills, length of service, or other logical bases of distinctions among the
employees.

The procedural remedies that can be availed of during wage distortion is that
the employer and employee can device a scheme as long as there is substantial
restoration of the intentional differences in the wage structure. The restoration
needs only to be substantial and need not be absolute restoration.

In organized firms, the employer and the union shall negotiate to correct the
distortion using the grievance procedures in the CBA or, if the dispute remains
unresolved, through voluntary arbitration.

On the other hand, in unorganized firms, the employers and workers

endeavor to correct the distortion. Any dispute is settled by conciliation through
the National Conciliation and Mediation Board, or if it remains unresolved, by
compulsory arbitration through the National Labor Relations Commission. The
employer is obliged to correct wage distortion and hence, it is not subject to strike.
Quiz 2 Module 3- Labor Law Review

V.

Minimum wage rate can be adjusted to a particular region through a

guidelines issued by the National Wages and Productivity Commission. First, a
petition is filed before the Regional Tripartite Wages and Productivity Board for
the fixing of wage. It is filed by any interested parties such as the employee sector.
The RTWPB may also initiate it motu proprio.

The criteria for minimum wage fixing are the following: a) needs of workers
and their families; b) capacity to pay; c) comparable wages and incomes and d)
equitable distribution of income and wealth along the imperatives of economic and
social development.

Second, when the petition is filed, a meeting or a hearing would be held

inviting the various labor sectors including the employees, the RTWPB and
industries affected. It will establish the needs of the workers in setting the
minimum wage. The public consultation should be concluded within 30 days from
the conclusion of the last hearing and 45 days from the initial hearing.

Third, in regards to minimum wage fixing, the RTWPB will be the one to
issue the wage order. The effectivity of such is 15 days from the last publication in
newspaper of general circulation. It may be assailed or appealed within 10 days
from last publication to the Commission.
Quiz 2 Module 3- Labor Law Review

VI.

Deposits for loss or damage to tools materials and equipment supplied by the
employer shall not be made except when the trade, occupation or businesses of the
employer recognizes or considers the practice of making deductions or requiring
deposits necessary or desirable.

The following are the requisites of deduction for loss or damage: a) the
employee is clearly shown to be responsible for the loss or damage; b) the
employee is given ample opportunity to show the cause why deduction should not
be made; c) the amount of the deduction is fair and reasonable and shall not exceed
the actual loss or damage; and d) the deduction from the employee‘s wage does not
exceed 20 percent of the employee‘s wages in a week.

Some employers may also require putting up of cash bonds. It is used to

answer for possible losses or damage that employer may sustain The requisites for
requiring the putting up of cash bonds are as follows: a) cash bonds may be put up
if it is a customarily practice of the trade or business of employer b) it must be fair
and reasonable; and c) there must be a regulation to that effect by the DOLE. If
none, the employer may address the issue back to the DOLE for a possible
issuance allowing posting of bond in that particular industry.