The New Regional Wage Order:
Other Labor and Employment
issues affecting Private Schools.
By: Atty. Mary Lorraine A. Macasa
LEO III-LLCO
DOLE Region XI
Under Wage Order No. RB XI-19
Under Wage Order No. RB XI-18
SECTOR/INDUSTRY
NonAgriculture/Industri
al/Commercial and
Retail/Service
employing more
than 10 workers
AGRICULTURE
RETAIL/SERVICE
Employing not more
than 10 workers
Effective December 16, 2016
Basic
wage
COLA
Minimum Basic Wage
Wage Rate
(MWR)
P312.00
P 5.00
P 317.00
P 302.00
P 5.00
P 307.00
P 281.00
P 5.00
P 286.00
Effective
May 1, 2017
COLA
Minimum
Wage Rate
(MWR)
New
Minimum
Wage with
COLA
integration
P 335.00
P 5.00
P 340.00
P 340.00
(335+5)
P330.00
(302 +28)
P 310.00
(281 +29)
P 5.00
P 335.00
P 5.00
P 315.00
P 335.00
(330 +5)
P 325.00
(310+10+5)
Coverage:
-Domestic workers or kasambahay covered by
Batas Kasambahay ( R.A. 10361);
-- Family Drivers;
--Persons employed in the personal service of
another; and
-- workers registered under the Barangay Micro
Business Enterprises (BMBE) Law (R.A. 9178) and
as also provided under the Go Negosyo Act of 2013.
The share of covered workers & employees in the increase in
tuition fees for SY 2016-2017 shall be considered as compliance.
-However, payment of any shortfall in the MWR shall be
covered starting SY 2017-2018.
Those who have not increased their tuition fees for SY 20172018 may defer with compliance until the beginning of SY 20172018.
In any case, implementation of the increase shall be
implemented starting SY 2017-2018
.
If organized: settle the dispute through grievance procedure
provided in the CBA. If it remains unresolved, negotiate
through voluntary arbitration.
If unorganized: the employers and the workers shall endeavor
to correct such distortions. Such dispute shall be settled
through National Conciliation and Mediation Board (NCMB)
and if it remains unresolved after 10 calendar days, the same
shall be referred to National Labor Relations Commission
(NLRC).
Complaints shall be filed with the Office of DOLE
having jurisdiction over the workplace and shall be
subject to the mandatory 30-day conciliation and
mediation process under the Single Entry Approach
(SEnA). If settlement fails, the case becomes subject of
enforcement proceedings under Articles 128 and 129 of
the Labor Code.
-FINE of not less than P25,000.00 nor more than
P100,000.00; or
--IMPRISONMENT of not less than 2 years nor more
than 4 years or BOTH such fine and imprisonment at
the discretion of the Court.
The employer concerned shall be ordered to pay an
amount equivalent to double the unpaid benefits
owing to the employees. The payment of
indemnity shall NOT absolve the employer from
the criminal liability imposable under Republic
Act 8188.
SENA refers to an administrative approach to provide a
speedy, impartial, inexpensive and accessible
settlement procedure of all labor issues or conflicts to
prevent them from ripening into full blown disputes.
Conciliation-mediation process shall be utilized as
immediate intervention to effect amicable settlement
among the differing parties.
1.Termination or suspension of employment issues;
2.Claims for any sum of money, regardless of
amount;
3.Intra-union and inter-union issues except
Petition for Certification Election, after exhaustion
of administrative remedies;
4. Unfair Labor Practice;
5.Closures,
retrenchments,
redundancies,
temporary lay-offs;
6. OFW cases;
7. Occupational Safety and Health Standards issues except
those involving imminent danger situation;
8. Issues arising from other labor and related issuances (OLRI);
9. Any other claims arising from employer-employee
relationship; and
10. Cases falling under the administrative and quasi-judicial
legislation of all DOLE offices and attached agencies, including
NLRC, except:
a. Notices of strikes or lockouts, or preventive mediation
cases which shall remain with the NCMB;
b. Issues arising from the interpretation or implementation
of the CBA and those arising from interpretation of
enforcement of company personnel policies which should be
processed through the grievance machinery and voluntary
arbitration.
c. Issues involving violations of the following permits,
licenses or registrations:
1. Alien Employment Permit (AEP);
2. PRPA authority or license;
3. Working Child Permit (WCP) and violations of
Republic Act No. 9231 (Anti-Child Labor Law);
4. Registration under DOLE DO 18-02;
5. POEA issued licenses under the Migrant Workers’
Act, as amended;
6. Professional license issued by the PRC;
7. TESDA accreditations; and
8. Other similar permits, licenses or registrations
issued by the DOLE or its attached agencies.
Modes of Implementation of the LLCS:
1. JOINT ASSESSMENT- refers to the process of
evaluating compliance with Labor Laws and social
legislation jointly undertaken by the Labor Laws
Compliance Officer (LLCO) and the representatives
of the employer and the employees using the
prescribed Assessment Checklist.
2. COMPLIANCE VISIT- refers to the act of
validating compliance with Labor Laws and
Social Legislation by the Secretary of Labor
and Employment or his/her duly authorized
representative either on his/her own initiative
or based on a complaint.
3. OCCUPATIONAL SAFETY AND HEALTH
STANDARDS INVESTIGATION (OSHI)- refers
to the process of determining the existence of
imminent danger, dangerous occurrence, and
accident resulting in disabling injury or other
analogous circumstances within the workplace
based on a report or information.
4. SPECIAL ASSESSMENT OF VISIT OF
ESTABLISHMENTS (SAVE)- refers to the
process of evaluating compliance with Labor
Laws and Social Legislation for policy
formulation.
Salient features:
1. Substantial Capital- refers to paid-up capital
stock/shares at least Five Million Pesos
(P5,000,000.00) in the case of corporations,
partnerships and cooperatives; in the case of single
proprietorship, a net worth of at least Five Million
Pesos (P5,000,000.00).
2. Registration Fee- One Hundred Thousand Pesos
(P100,000.00).
3. Validity of Certificate of Registration- 2 years.
The Department Order also reiterated the Absolute
Prohibition
against Labor-Only Contracting,
an
arrangement where:
•1. The Contractor or subcontractor has no substantial
capital; or
a. The Contractor or subcontractor does not have
investments in the form of tools, equipment, machineries,
supervision, work premises among others, and
b. The contractor’s or subcontractor’s employees
recruited and placed are performing activities which
are directly related to the main business operation of
the principal; or
2. The Contractor or subcontractor does not exercise
the right to control over the performance of the work
of the employee.
LABOR LAW ISSUES APPLICABLE TO PRIVATE
SCHOOL TEACHERS:
On holiday pay: Private School teachers, including faculty
members of colleges and universities, may not be paid for the
regular holidays during semestral vacations. They shall,
however, be paid for the regular holidays during Christmas
vacation.
On Probationary period of employment: A Probationary Period
of not more than 3 years in the case of the school teaching
personnel and not more than 6 months for non-teaching
personnel shall be required for employment in all private
schools. A school personnel who has successfully undergone the
probationary period herein specified and who is fully qualified
under the existing rules and standards of the school shall be
considered permanent.
WHETHER OR NOT A TEACHER’S OVERLOAD PAY
SHOULD BE CONSIDERED IN THE COMPUTATION
OF HIS OR HER 13TH MONTH PAY.
In the case of Letran Faculty and Employees
Association vs. NLRC and Colegio de San Juan de
Letran Calamba, Inc., the Court categorically ruled
that overload pay may not be included as basis for
determining a teacher’s 13th month pay.
Under Presidential Decree 851 and its implementing
rules, the basic salary of an employee is used as the
basis in the determination of his/her 13th month pay.
What are deemed not part of the basic salary?
1. COLA;
2. Profit Sharing payments; and
3. All allowances and monetary benefits which are
notconsidered or integrated as part of the regular
basic salary of the employee at the time of the
promulgation of the Decree on December 16, 1975.