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Other Type of Workers

The document discusses different types of workers that are exempted from labor standards in the Philippines. It focuses on two types of exempted workers: [1] piece-rate workers who are paid based on their output and [2] task-based workers who are paid upon completion of a task. It provides examples and clarifies that both types of workers are still covered by provisions on wages in the Labor Code, such as requirements for payment schedules and differentials.

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48 views4 pages

Other Type of Workers

The document discusses different types of workers that are exempted from labor standards in the Philippines. It focuses on two types of exempted workers: [1] piece-rate workers who are paid based on their output and [2] task-based workers who are paid upon completion of a task. It provides examples and clarifies that both types of workers are still covered by provisions on wages in the Labor Code, such as requirements for payment schedules and differentials.

Uploaded by

gemma acosta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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PAKIAO POWERS

The other group of workers that is exempted from the


labor standards is the group of the pakiao workers.

Two kinds: There is the piece rate worker and the


task- based worker.

1. Piece-rate workers: based on output in


uniform units and is paid on a fixed sum per
unit so that his basic income is dependent on
the industry that he holds.

A pakiao worker does not have working hours. He is


paid on a per piece basis.
The problem is, many employers use the piece-rate system to ART. 103. Time of payment. - Wages shall be paid
circumvent the minimum wage. at least once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days. If on account
HOW IS THE RATE PER PIECE DETERMINED? of force majeure or circumstances beyond the employer’s
control, payment of wages on or within the time herein
The piece rate is based on the productivity of the AVERAGE provided cannot be made, the employer shall pay
WORKER, not the slowest nor the fastest. (IRR of the wages immediately after such force majeure or
Labor Law) circumstances have ceased. No employer shall make
payment with less frequency than once a month.
If you are an average worker, the piece rate and your
productivity for 8 hours should be the same with the The payment of wages of employees engaged to perform a
minimum wage. If it is not the same, you are using the piece task which cannot be completed in two (2) weeks shall be
rate to circumvent the minimum wage. subject to the following conditions, in the absence of a
collective bargaining agreement or arbitration award:
If you are on a piece-rate basis, how do you know that the
employer is using the piece rate to circumvent?
(1) That payments are made at intervals not exceeding
sixteen (16) days, in proportion to the amount of work
The law says that you must ask for a TIME AND MOTION
completed;
STUDY by the Regional Office.
Let us say you agreed with the floor workers that you will pay
Suppose, you are timed worker, you are paid for reporting to
them 3,000 pesos for the cementing of the entire floor. After
work for 8 hours, can you be given a quota? You will not be
two weeks, the floor is not yet done, but only the
paid if you cannot finish a certain number of products.
pouring of cement is all that is left to do. The workers then
ask for compensation.
For example in TIMEX, they are paid more than
the minimum ward, they are paid for the time of 8 hours but
Are you obliged to pay when you agreed on a
you are given a quota. You are given a quota for
completion basis? YES. What is the basis of payment? It’s
purposes of meeting disciplinary ends. If you will not
completion. How far is the task from completion, 1/3, 2/3,
meet the quota, you are pulled out of the assembly line
4/5? That is the measure that you have to pay.
and you are retrained. Your wage will be that again of a
trainee. Is that correct?
REMEMBER:
When there is no uniform units of output, it is TASK-BASIS.
You can be given a quota if you are a timed-worker
for purposes of discipline BUT NOT for the Example: Drivers of Cargo Trucks to deliver goods. They are
purposes of measuring compensation. paid on the task to deliver.

Remember: Piece-rate: NO TIME, just your finished pieces,


RETAIL AND SERVICE ESTABLISHMENTS
multiplied by the rate.
WITH NOT MORE THAN 5 EMPLOYEES
Does a piece-rate nature of work determine whether there is
an employer-employee relationship? NO. Example: Sari-sari stores

In the case of DY KEH BENG vs. INTERNATIONAL Night-shift differentials are not applied if they employ
LABOR less than 5 employees. If you employ more than 5
and MARINE UNION OF THE PHILIPPINES, G.R. No. L-32245 employees, you have to pay night-shift differential equivalent
May 25, 1979, piece-rate work is not determinative of to 10% of the regular pay, for the time from 10 PM to 6 AM.
the legal characterization of the employer-employee
relationship. ART. 86. Night shift differential. - Every employee shall
be paid a night shift differential of not less than ten percent
2. Task-basis worker (10%) of his regular wage for each hour of work performed
between ten o’clock in the evening and six o’clock in
Example: You engage with several workers to cement the morning.
an
entire floor from “zero”. SERVICE vs. RETAIL ESTABLISHMENT

All workers whther time-based, etc, they are covered by the “Retail Establishment” is one principally engaged in the sale
provisions on wages by the Labor Code. of
goods to end-users for personal or household use.
Wages under the provision, are paid at least twice a month,
at intervals of not longer than 16 days.
Example: Sari-sari Store

“Service Establishment” is one principally engaged in the


sale
of service to individuals for their own or household use and is
generally recognized as such.

Example: Beauty Parlor, Massage Parlor

Problem:

You ordered an oyster soup in a restaurant. You realized that there is a pearl at the bottom of the soup.
The waiter then said that the pearl does not belong to you. It belongs to the restaurant.

Who has a better right to the pearl?

It depends on whether it is a service establishment. If it is a service establishment, there is no take-out. It


caters to the nutritional satisfaction to the client. You leave everything that is not essential to your
nutritional satisfaction. Just like the bones, the pearl cannot be eaten to satisfy you.

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