WAGES

What is the difference between wage and salary under the New Civil Code?

Wage is paid to manual laborers and is generally protected from garnishment; salary is paid to white-collar workers and may be subject to execution, garnishment, or attachment.

Which case distinguishes wage and salary for purposes of Article 1708?

Gaa v. CA, G.R. No. L-44169, December 3, 1985.

Are wage and salary distinctions relevant in labor law?

Not significantly; in labor law, the distinction is considered mostly semantic.

What are supplements in labor law?

Extra remuneration or special privileges not deductible from wages; primarily for the employer's benefit.

What are facilities in labor law?

Items for the employee's and their family's subsistence, deductible from wages if voluntarily accepted in writing and charged fairly.

What test determines if a benefit is a facility or a supplement?

The Purpose Test.

According to the Purpose Test, when is a benefit a supplement?

If the benefit is clearly for the employer’s convenience.

According to the Purpose Test, when is a benefit a facility?

If the benefit is clearly for the employee’s or their family’s benefit.

What are the requirements before facilities can be deducted from wages?

They must be customary, voluntarily accepted in writing by the employee, and charged at a fair and reasonable value.

What are the twin attributes of wages?

Cash wages and facilities.

What is the definition of basic wage?

Remuneration for services rendered on regular working days and hours, excluding allowances and bonuses not integrated into salary.

What is wage distortion?

A reduction or elimination of pay differentials between employees of different ranks due to mandated wage increases.

What is the statutory minimum wage?

The lowest wage allowed by law that employers must pay their workers.

What are important notes on the statutory minimum wage?

It is mandatory, based on normal working hours, and applies to all workers including those paid by results.

How are minimum wage rates determined in the Philippines?

They are set by the Regional Tripartite Wages and Productivity Boards (Art. 99, Labor Code).

What is the principle of non-diminution of benefits?

Employers cannot unilaterally reduce or eliminate benefits already enjoyed by employees (Art. 100, Labor Code).

What are the requisites of diminution of benefits?

Benefit must be a consistent practice, not due to error, and the discontinuance must be unilateral.

What does "No Work, No Pay" mean?

If no work is performed, no wage is due, unless the employee was ready but prevented by the employer.

What is the exception to "No Work, No Pay"?

When the employee was able, willing, and ready to work but was illegally prevented (e.g., lockout, suspension, dismissal).

What is the principle of Equal Pay for Equal Work?

Employees with substantially equal skill, effort, and responsibility should be paid equally.

What case established the rule on equal pay and presumption of equal work?

International School Alliance of Educators vs. Quisumbing, G.R. No. 128845, June 1, 2000.

What is "Fair Wage for Fair Work"?

Compensation must be given for actual work rendered, unless illegally prevented from working.

SITUATION: Is a company car that can be used on company locations?

Supplements

SITUATION: a company car that can be brought home.

Facilities