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    San Miguel vs. Dlo

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    Zen Razon-Olandesca
    1. The San Miguel Brewery appealed a decision that its outside sales personnel were entitled to overtime pay under the Eight-Hour Labor Law. 2. The Court held that the Eight-Hour Labor Law does not apply to employees paid on a commission basis, regardless of hours worked, as their earnings depend on their industry and ability. 3. As the outside sales personnel received fixed salaries plus variable commissions based on sales, they were considered paid on a commission basis and therefore not entitled to overtime under the Eight-Hour Labor Law.

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    San Miguel vs. Dlo

    Uploaded by

    Zen Razon-Olandesca
    245 views2 pages
    1. The San Miguel Brewery appealed a decision that its outside sales personnel were entitled to overtime pay under the Eight-Hour Labor Law. 2. The Court held that the Eight-Hour Labor Law does not apply to employees paid on a commission basis, regardless of hours worked, as their earnings depend on their industry and ability. 3. As the outside sales personnel received fixed salaries plus variable commissions based on sales, they were considered paid on a commission basis and therefore not entitled to overtime under the Eight-Hour Labor Law.

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    1. The San Miguel Brewery appealed a decision that its outside sales personnel were entitled to overtime pay under the Eight-Hour Labor Law. 2. The Court held that the Eight-Hour Labor Law does not apply to employees paid on a commission basis, regardless of hours worked, as their earnings depend on their industry and ability. 3. As the outside sales personnel received fixed salaries plus variable commissions based on sales, they were considered paid on a commission basis and therefore not entitled to overtime under the Eight-Hour Labor Law.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    245 views2 pages

    San Miguel vs. Dlo

    Uploaded by

    Zen Razon-Olandesca
    1. The San Miguel Brewery appealed a decision that its outside sales personnel were entitled to overtime pay under the Eight-Hour Labor Law. 2. The Court held that the Eight-Hour Labor Law does not apply to employees paid on a commission basis, regardless of hours worked, as their earnings depend on their industry and ability. 3. As the outside sales personnel received fixed salaries plus variable commissions based on sales, they were considered paid on a commission basis and therefore not entitled to overtime under the Eight-Hour Labor Law.

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    SAN MIGUEL BREWERY, INC., vs.

    DEMOCRATIC LABOR
    • Its motion for reconsideration having been denied by the
    ORGANIZATION, ET AL., industrial court en banc, which affirmed the decision of the
    court a quo with few exceptions, the San Miguel Brewery, Inc.
    G.R. No. L-18353 July 31, 1963 interposed the present petition for review.

    • The pertinent facts as are follows:


    After the morning roll call, the employees leave the plant of the company to go on their
    FACTS: respective sales routes either at 7:00 a.m. for soft drinks trucks, or 8:00 a.m. for beer
    trucks. They do not have a daily time record. The company never require them to start
    their work as outside sales personnel earlier than the above schedule.
    • On January 27, 1955, the Democratic Labor Association filed
    complaint against the San Miguel Brewery, Inc. embodying 12 The sales routes are so planned that they can be completed within 8 hours at most, or that
    demands for the betterment of the conditions of the employees could make their sales on their routes within such number of hours variable
    employment of its members. The company asked for the in the sense that sometimes they can be completed in less than 8 hours, sometimes 6 to 7
    hours, or more. The moment these outside or field employees leave the plant and while in
    dismissal of the complaint their sales routes they are on their own, and often times when the sales are completed, or
    when making short trip deliveries only, they go back to the plant, load again, and make
    • At the hearing held sometime in September, 1955, the union another round of sales. These employees receive monthly salaries and sales commissions in
    variable amounts. The amount of compensation they receive is uncertain depending upon
    manifested its desire to confine its claim to its demands for their individual efforts or industry. Besides the monthly salary, they are paid sales
    overtime, night-shift differential pay, and attorney's fees. commission that range from P30, P40, sometimes P60, P70, to sometimes P90, P100 and
    P109 a month, at the rate of P0.01 to P0.01-½ per case.

    • Presiding Judge Jose S. Bautista, who was commissioned to


    receive the evidence, rendered decision expressing his disposition
    with regard to the points embodied in the complaint.
    ISSUE/HELD: Whether or not outside or field sales personnel are entitled
    to the benefits of the Eight-Hour Labor Law. NO
    1. To overtime compensationthat the provisions of the Eight-Hour
    Labor Law apply to the employees concerned for those working in
    the field or engaged in the sale of the company's products outside RATIO:
    its premises and consequently they should be paid the extra
    compensation accorded them by said law in addition to the monthly
    salary and commission earned by them, regardless of the meal
    • Eight-Hour Labor Law only has application where an
    employee or laborer is paid on a monthly or daily basis, or
    allowance given to employees who work up to late at night.
    is paid a monthly or daily compensation, in which case, if he
    is made to work beyond the requisite period of 8 hours, he
    2. To employees who work at night that they be paid their should be paid the additional compensation prescribed by
    corresponding salary differentials for work done at night prior to law. This law has no application when the employee or laborer
    January 1, 1949 with the present qualification: 25% on the basis of is paid on a piece-work, "pakiao", or commission basis, regardless
    their salary to those who work from 6:00 to 12:00 p.m., and 75% to of the time employed.
    those who work from 12:01 to 6:00 in the morning.
    REASON (,”)? His earnings in the form of commission based on
    3. To work done during Sundays and holidays that the employees the gross receipts of the day. His participation depends upon his
    concerned be paid an additional compensation of 25% as provided for industry so that the more hours he employs in the work the
    in Commonwealth Act No. 444 even if they had been paid a compensation greater are his gross returns and the higher his commission
    on monthly salary basis.

    Zenaida Resuma Razon


    Hours of Work
    Labor Law
    • Jewel Tea Co. v. Williams

    “The reasons for excluding an outside salesman are fairly apparent. Such
    salesman, to a greater extent, works individually. There are no restrictions
    respecting the time he shall work and he can earn as much or as little, within the
    range of his ability, as his ambition dictates. In lieu of overtime he ordinarily
    receives commissions as extra compensation. He works away from his
    employer's place of business, is not subject to the personal supervision of his
    employer, and his employer has no way of knowing the number of hours he
    works per day.”

    • The employees concerned are paid a fixed salary for their month
    of service, such as Benjamin Sevilla, a salesman, P215; Mariano
    Ruedas, a truck driver, P155; Alberto Alpaza and Alejandro
    Empleo, truck helpers, P125 each, and sometimes they work in
    excess of the required 8-hour period of work, but for their extra
    work they are paid a commission which is in lieu of the extra
    compensation to which they are entitled.

    • The record shows that these employees during the period of their
    employment were paid sales commission ranging from P30, P40,
    sometimes P60, P70, to sometimes P90, P100 and P109 a month
    depending on the volume of their sales and their rate of
    commission per case. And so, insofar is the extra work they
    perform, they can be considered as employees paid on piece
    work, "pakiao", or commission basis.

    • We are, therefore, of the opinion that the industrial court erred in


    holding that the Eight-Hour Labor Law applies to the employees
    composing the outside service force and in ordering that they be
    paid the corresponding additional compensation.

    Zenaida Resuma Razon


    Hours of Work
    Labor Law

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