statutory

RA 6727 (Wage Rationalization Act)

RA 6727 (Wage Rationalization Act)

mandates the fixing of the minimum wages applicable to different sectors depending on the number of workers or capitalization or annual gross sales in some sectors.

the normal 8 hours a day

the basis of the minimum wage rates prescribed by law

Monthly-paid employees

those who are paid everyday of the month

Daily-paid employees

those who are paid on the days they actually worked and on unworked regular holidays.

Workers paid by results

those who are paid on piece rate

Wage of Apprentices and learners

In no case be less than 75% of the applicable minimum wage rates

Apprentices and learners

those who are covered by apprenticeship and learnership agreement duly approved by the TESDA.

salaried individuals earning annual gross compensation of P250

000 or below per year

1. Statutory minimum wage inclusive of the COLA;

2. Holiday Pay;

3. Overtime pay;

4. Night shift differential; and

5. Hazard pay.

Income of MWEs which are also be exempted from income tax

Holiday Pay

Refers to the payment of the regular daily wage for any unworked regular holiday

200% of daily minimum wage

If the employee worked on regular holidays

100% of daily minimum wage

If the employee didn't worked on regular holidays

260% of daily minimum wage

If the employee worked on regular holiday the falls on the his scheduled rest day.

200% of daily minimum wage

If two regular holiday falls on the same day. Even if the employee did not worked.

200% + 100% of daily minimum wage

If two holidays falls on the same day and the employee worked on the said day.

Premium Pay

Refers to the additional compensation for work performed within 8 hours on non-work days

100% + 30% of his basic wage

If the employee work on special holidays

100% + 50% of is basic wage

if the employee work on special holidays that falls on his scheduled rest day.

Base pay

the amount of money a salaried employee regularly earns before any additions or deductions are applied to their earnings.

Job evaluation

process of comparing a job against other jobs within the organization to determine the appropriate pay rate.

Pay compression

occurs when the pay of one or more employees is very close to the pay of more-experienced employees in the same job

Compensable factors

a value or trait that employers use to determine how much to pay an employee.

Wages

An amount of money paid to an employee at a specified rate per hour worked

Variable pay

a pay system in which an individual's compensation is contingent on performance

Direct compensation

Pay that is received by an employee

Indirect compensation

employee benefits provided as a form of compensation

Extrinsic rewards

tangible awards given to employees for successfully accomplishing something. (e.g. certificates

Intrinsic rewards

intangible award of recognition. (e.g. sense of achievement

Job design

Process of establishing employees roles and responsibilities and the systems and procedures that they should use or follow.

Job rotation

a job enrichment strategy that involves moving employees from one job to another

Job specification

a description of the qualifications necessary for a specific job

Performance Standards

Expectations of management translated into behaviors and results that employees can deliver.

On-the-job training (OJT)

training methods in which a person with job experience and skill guides trainees in practicing job skills at the workplace

Reinforcement

a process of strengthening desirable behaviors

Benchmarking

involves looking at the policies and practices of one organization

Onboarding

ongoing process that aims to prepare new employees for full participation in the organization

Outsourcing

process in which a company utilizes the services of the third party to take care of its HR functions.

Turn-over

replacing an employee with a new employee.

Work-life balance

minimization of work-related stress

Labor standards

the amount of labor time that is expected for the completion of a task.

Employer-Employee Relationship

the person for whom the services are performed reserves the right to control not only the end achieved

Four-fold Test to establish employer-employee relationship

the selection and engagement of the employee

Labor-only Contracting

arrangement where the contractor or subcontractor merely recruits

Job contracting

arrangement whereby a principal outsources a job

Private employment agency

An organization that helps people find jobs but charges a fee for the service

Private recruitment agency

any person or entity engaged in the recruitment and placement of workers for a fee which is charged directly against the workers or employers

temporary employment

Employment contact that lasts for a fixed time period.

Probationary Employment

one who

Regular employment

an employment for a definite and more or less extended period of time.

seasonal employment

A short-term job associated with a certain time of year.

Labor relations

All the matters arising out of employer-employee relationship involving the concerted action on the part of the workers which is usually related with right to self-organization

Handicapped Workers

those whose earning capacity is impaired by age or physical or mental deficiency or inhury

Managerial employees

those whose primary duties consist of the management of the establishment in which they are employed or of a department or subdivision thereof

Field Personnel

non-agricultural employees 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.

Solo Welfare Act of 2000

These refers to benefits granted to a solo parent to enable him/her to perform parental duties and responsibilities where physical presence is required. The claimant parent has to show that s/he is left alone with responsibility of parenthood.

13th Month Pay

1/12th of the basic salary of an employee within a calendar year.

collective bargaining

Negotiations between representatives of labor unions and management to determine pay and acceptable working conditions.

Collective Bargaining Agreement

contract executed upon request of either the employer or the exclusive bargaining representative of the employees

Grievance