I. Non-diminution of benefits c. Who are not entitled/Who are not covered by the 13th M.P.
- Prohibits employers from eliminating or reducing the benefits Law
received by their employees provided such benefits are based on 1. MANAGERIAL EMPLOYEES any of the following: - Except: when they are so granted under an employment 1. Express policy; contract or a company policy or practice. 2. Written contract; or 2. GOVERNMENT and any of its political subdivisions, including 3. Company practice. GOCCs a. Requisites: it must be shown that the- - Except: those corporations operating essentially as 1. Grant of benefit is founded on policy or has ripened into a private subsidiaries of the government practice over a long period; 3. EMPLOYERS ALREADY PAYING THEIR EMPLOYEES 13th 2. Practice is consistent and deliberate ; M.P. or more in a calendar year or its equivalent at the time of 3. Practice is not due to error in the construction or the issuance of the Revised Guidelines. application of a doubtful or difficult question of law; and 4. EMPLOYERS OF THOSE WHO ARE PAID ON PURELY 4. Diminution or discontinuance is done unilaterally by the COMMISSION, BOUNDARY OR TASK BASIS, and THOSE employer. WHO ARE PAID A FIXED AMOUNT FOR PERFORMING A b. Exceptions to Non-diminution of benefits SPECIFIC WORK, irrespective of the time consumed in the 1. Correction of error; performance thereof. 2. Negotiated benefits; - Except: where the workers are paid on piece-rate basis, 3. Wage order compliance; in which case, the employer shall be covered by the 4. Benefits on reimbursement basis; Revised Guidelines insofar as such workers are 5. Reclassification of position; concerned. 6. Contingent benefits or conditional bonus; and - Workers paid on piece-rate basis: Those who are paid 7. Productivity incentives a standard amount for every piece or unit of work produced that is more or less regularly replicated without II. 13th Month Pay Law regard to the time spent in producing the same. a. Nature d. How computed - Additional income granted to employees who are receiving the - Minimum Amount: Not less than 1/12 of the total basic same. salary earned by an employee within a calendar year. - Purpose is to increase real wages of the workers - Basic Salary: 1/12 of the employee’s standard monthly wage - It is based on wage BUT NOT part of wage multiplied by their length of service within a given calendar b. Coverage year. - Under the law, all employers are required to pay ALL THEIR - Minimum Period of Service: Employee should have worked for RANK-AND-FILE EMPLOYEES, a 13th Month Pay not later at least one month during a calendar year. than 24 December of every year. e. What are included in the computation - Domestic Workers are entitled under RA 10361 (Kasambahay 1. Total basic salary which includes: Law) - all remuneration or earnings paid by the employer for - Extras, casuals, adn seasonal employees are entitled. services rendered Labor Standards Finals Reviewer Atty. Buyco 2019-2020 Arimao | 1! - does not include allowances and monetary benefits c. Minimum wage rates prescribed by law shall be the basic cash such as cash equivalent of unused vacation and sick wages without deduction therefrom of whatever benefits, leave credits, maternity leave, overtime, premium, night supplements or allowances which the employees enjoy free of differential and holiday pay, premiums for work done on charge aside from the basic pay. rest days and special holidays and COLA. d. Statutory minimum wage rates refer to the lowest basic wage - except: these salary related benefits should be included rates that an employer can pay his workers, as fixed by the in the computation of 13th M.P. if by individual or CB Regional Tripartite Wages and Productivity Boards (RTWPBs), agreements, company practice or policy, the same are which shall not be lower than the applicable statutory minimum treated as part of basic salary. wage rates. 2. Commission part of basic salary - commission paid in addition e. COLA refers to the level of prices relating to a range of everyday to to the basic salary and has a clear direct or necessary items or the cost of purchasing the goods and services which are relation to the amount of work actually done by the employee. included in an accepted standard level of consumption. It is a - Note: benefit to cover increases in the cost of living. i. Commission is NOT part of basic salary if it is in f. No work, no pay principle - this is the general rule. addition to the basic salary and is in the nature of a - Exception is when it was the employer who unduly prevented productivity bonus. the employee from working despite his ableness, willingness, ii. If employee is paid on commission basis only: and readiness to work, or in cases where the employee is EXCLUDED from receiving 13th M.P. locked out, illegally dismissed, or suspended.
III. Rules on Wages g. Wage vs. Salary
a. Attributes of Wage: 1. remuneration or earnings, however designated, for work done Wage Salary or to be done or for services rendered or to be rendered; compensation for manual skill or compensation for higher or superior 2. capable of being expressed in terms of money, whether fixed labor level or employment or ascertained on a time, task, piece or commission basis, or other method of calculating the same; GR: not subject to execution or Not exempt from execution or 3. payable by an employer to an employee under a written or ganishment (Art. 1708, CC) garnishment (applies to unwritten contract of employment for work done or to be done EX: debts incurred for food, shelter, commission and other or for services rendered or to be rendered; and clothing and medical attendance remuneration received by a 4. includes the fair and reasonable value, as determined by the managerial employee. DOLE Secretary, of board, lodging, or other facilities customarily furnished by the employer to the employee. b. Wage rate includes COLA as fixed by the RTWPB but excludes other wage related benefits such as OT pay, bonuses, night shift differential pay, holiday pay, premium pay, 13th M.P., leave benefits, among others.
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Atty. Buyco 2019-2020 Arimao | !2 i. Payment of Wages (Arts. 102-105) h. Facility vs. Supplement 1. Form: Only in legal tender; Payment in check or money order shall be allowed when such manner is customary on the date of Facilities Supplements effectivity of the Labor Code. 2. Direct Payment of Wages includes articles or services for means extra remuneration or - GR: direct payment to the workers to whom they are due. the benefit of the employee or his special privileges or benefits - EX: (a) In cases of force majeure; and family but does not include tools of given or received by the laborers (b) Where the worker has died, then payment is made to trade or articles or services over and above their ordinary primarily for the benefit of the earnings or wages. his heirs without necessity of intestate proceedings. employer or necessary to the 3. Burden of proof, in case of alleged non-payment: Employer conduct of the employer’s business. has burden of proving payment. 4. Other requirements: IRR requires the employer to keep a items of expense necessary for the Not deductible from wage payroll, it must show the length of time to be paid, the pay rate, laborer’s and his family’s existence the amount actually paid, and the employee should sign the and subsistence which form part of payroll. the wage and when furnished by the employer, are deductible 5. Time of payment: therefrom. - At least every 2 weeks or twice a month at intervals not exceeding 16 days. Can only be deducted from wage Main difference between F&S: the - No employer shall make payment with less frequency than if: purpose it serves. once a month. 1) facilities customarily furnished - Payment on a daily basis is allowed, but discourage because it by trade; Food supplied to crew members is inconvenient for the employer. 2) acceptance in writing by the is a supplement because it is a employee necessary matter in the - If task cannot be completed within 2 weeks, condition of 3) facilities charged at a fair and maintenance of the health and payment; reasonable value efficiency of the crew during (a) payment made at intervals of not exceeding 16 days, voyage. in proportion to the amount of work completed; Subsidized meal: subsidy shall not (b) final settlement is made upon completion of work be less than 30% of the fair and 6. Place of Payment reasonable value of the facility, but 1. GR: shall be at or near the place of undertaking. not more than 70% of the fair and 2. EX: allowable in a place other than the workplace, only in reasonable value thereof. instances where - (a) It cannot be effected therein due to deterioration of peace and order conditions, or of actual or impending emergencies caused by fire, flood, epidemic, or other calamity rendering payment thereat impossible;
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Atty. Buyco 2019-2020 Arimao | 3 ! (b) When employer provides free transportation to the - For loss or damage; employees back and forth; - For agency fees from non-union members who accept the (c) Under any analogous circumstances; benefits under the CBA negotiated 3. NOTE: No employer shall pay his employees in any bar, night - Union service fee or day club, drinking establishment, massage clinic, dance - Deductions with written authorization of the employee for hall, or other similar places where games are played with payment to third person stakes of money or things representing money - Deductions for value of meal and facilities - EX: For persons working in the said places. - Deductions for premiums of SSS, PhilHealth, employees’ 4. Payment through banks: allowed under written compensation and Pag-Ibig permission of the majority of the employees. - Withholding tax - Companies with 25 or more employees; - Withholding of Wages due to debt to the employer which is - Place of business is within 1km radius to a commercial, already due. rural, or savings bank. - Deductions ordered by the Court - Upon request of employee or union, the bank shall issue - Salary deductions of a member of a cooperative a certificate of record of payment of wages of a particular 6. Deposit Requirement (Art. 114) worker or workers for a particular payroll. - GR: Deductions from the employee’s wages may be made for j. Prohibitions regarding wages cash bonds or deposits. However, the employer is not allowed 1. Article 112 of the Labor Code: Non-interference by the to unilaterally immpose upon its employees the giving of cash employer in the disposal by employees of their wages. bonds or deposits. - No employer is allowed to interfere with the freedom of any - EX: To justify such imposition, the employer should first prove employee to dispose of his wages or to oblige them to patronie that it falls under either: any store or avail any services of a person. a. That it is engaged in such trades, occupations or 2. Wages not subject to execution or attachment. business where the practice of making deductions or - Except when it is made for debts incurred for food, shelter, requiring deposits is a recognized one; or clothing, and medical assistance. b. That the cash bond or deposit is necessary or 3. Prohibition on employee to make any deductions from the desirable as determined by the DOLE Secretary in wage without knowledge or authorization of the employee. appropriate rules and regulations. 4. Permissible Deductions from Wages (Art. 113) c. Labor Advisory No. 11, s. 2014: the practice of - worker is insured with his consent by the employer, and the allowing deductions or requiring deposits from deduction is to recompense the employer for the payment of employees to answer for reimbursement of loss or premium. damage on tools, materials, or equipment supplied by - union dues, where the right of the worker or his union to check- the employer is recognized or allowed in private off has been recognized by the employer or authorized in security agencies, as the only recognized and writing by the individual worker concerned; reasonable industry practice given the nature of the - employer is authorized by law or regulations issued by the service/business. DOLE Secretary. - Due Process is required before deduction from deposit: 5. Other Permissible deductions (Art. 114): - Conditions to be observed: Labor Standards Finals Reviewer Atty. Buyco 2019-2020 Arimao | 4 ! a. The employee concerned is shown to be responsible 1) Request the employer to correct the alleged distortion for the loss or damage; 2) Employer can either: b. The employee is given reasonable opportunity to (a) Increase wage across the board; or show cause why deductions should not be made; (b) Proportionate increase; c. The amount of such deduction is fair and reasonable (c) Application of formula for resolving wage distortion and shall not exceed the actual loss or damage; and d. Wage distortion must take place only within a region because d. The deduction from the wages of the employees does wage orders are implemented per region (jurisprudence) not exceed 20% of the employee’s wages in a week. e. Wage distortion is not a proper ground to be invoked in support - Amount of deposit allowed: the maximum amount shall not exceed of a strike or lockout. the employee’s one month basic salary. - Disputes arising from wage distortion resulting from wage orders - Such may be deducted from the employee’s wages in an amount issued by the RTWPBs which are alleged in the notice of strike or not exceeding 20% of the employee’s wages in a week. notice of lockout should be referred to the Labor Arbiter if not - Refund of deposit: full amount shall be returned to the employee settled within 10 calendar days of conciliation by the NCMB. within 10 days from his/her separation from the service. f. Wage distortion, when correctible - The employer cannot legally be obligated to correct “wage IV. Wage Distortion distortion” if the increase in the wages and salaries of the newly- a. It contemplates a situation where an increase in prescribed wage hired employees was not due to a prescribed law or wage order rates results in either of the following: but due to increases it voluntarily granted to them. 1. Elimination of the quantitative differences in rates of wages or - This would discourage an employer to adjust salary rates of a salaries; or particular group of employees for fear that it would result to a 2. Severe contraction of intentional quantitative differences in demand by all employees for a similar increase, especially if the wage or salary rates between and among employee groups in financial conditions of the business cannot address an across the an establishment as to effectively obliterate the distinctions board increase. embodied in such wage structure based on the ff. criteria: g. Formula for resolving wage distortion (a) skills; (b) length of service; or Minimum wage/Actual Salary = % x Prescribed increase = Distortion (c) other logical bases of differentiation. Adjustment b. Elements of Wage Distortion 1) An existing hierarchy of positions with corresponding salary h. Wage distortion, how rectified rates; 1. In organized establishments - where the application of any 2) A significant change in the salary rate of a lower pay class prescribed wage increase by virtue of a wage order issued by the without a concomitant increase in the salary rate of a higher RTWPB results in distortions of the wage structure within an one; establishment, the employer and the union should negotiate to 3) The elimination of the distinction between the two levels; and correct the distortions. 4) The existence of the distortion in the same region of the (a) Resolved through grievance procedure under the CBA; country. (b) If unresolved, through voluntary arbitration; c. Wage Distortion (Process of Correction) Labor Standards Finals Reviewer Atty. Buyco 2019-2020 Arimao | 5 ! (c) Unless agreed upon by the parties in writing, such dispute 4. Requirements of economic and social development should be decided by the Voluntary Arbitrator or panel of Voluntary Arbitrators within 10 days from the time said VI. Job Contracting and Labor-Only Contracting dispute was referred to voluntary arbitration. a. Two kinds of Labor-Only Contracting: (DO 174-17) 2. In unorganized establishments - in cases where there are no 1. No substantial capital or investments in the tools and equipments and collective agreements or recognized labor unions, the employers work is necessary and desirable to the business of the principal; or and workers should endeavor to correct such distortions. 2. Principal exercises control over the worker (a) Settled through the National Conciliation and Mediation b. Labor-only contracting is illegal - prohibited under the law because it Board (NCMB) deprives the employees to be recognized as regular employees, or from (b) If it remains unresolved after 10 days of conciliation, acquiring security of tenure due to the intercession of a third party which should be referred to any of the Labor Arbiters of the is the labor contractor. appropriate branch of the NLRC. c. Permissible Job Contracting/ Legitimate Job Contracting (c) NLRC shall conduct continuous hearings and decide the A person is considered engaged in legitimate job contracting or dispute within 20 days from the time said dispute is subcontracting if the following conditions concur: submitted for compulsory arbitration. (a) The contractor or subcontractor carries on a distinct and independent 3. Effect of pendency of wage distortion dispute - It shall not in business (he is a businessman) and undertakes to perform the job, any way delay the applicability of any increase in prescribed wage work or service on its own account and under its own responsibility rates pursuant to the provisions of the wage order. according to its own manner and method; (b) Contractor is free from the control and direction of the principal in all V. Wage Orders matters connected with the performance of the work except as to the a. refers to the order promulgated by the RTWPB (Regional Board) pursuant results thereof; to its wage fixing authority. (c) The contractor or subcontractor has substantial capital or investment; b. “Prescribed increases or adjustments” refer to the amount of and increases or adjustments in the wage rate of workers fixed by the (d) The service agreement between the principal and contractor or RTWPB, which the employer is mandated to pay upon effectivity of a subcontractor assures the contractual employees entitlement to all wage order. labor and occupational safety and health standards, free exercise of c. When proper to issue wage order the right to self-organization, security of tenure, and social and welfare - Whenever conditions in the region so warrant, the Regional Board benefits investigate and study all pertinent facts and based on the prescribed standards and criteria, shall proceed to determine whether a wage order should be issued. - Any wage order shall take effect after 15 days from its complete publication in at least 1 newspaper of general circulation in the region. d. Factors to consider for minimum wage fixing: 1. Needs of workers and their families 2. Capacity to pay (of employers) 3. Comparable wages and incomes Labor Standards Finals Reviewer Atty. Buyco 2019-2020 Arimao | 6 ! d. Extent of liability of principal for non-payment of wages and other - Art. 106 defines a contractor or subcontractor. Based on the definition, legal obligations: the party which contracts with the principal is the “contractor” while the party which subcontracts with the contractor is called a “subcontractor”. Legitimate Job Labor-Only Contracting - Contracting should therefore be correlated to the contractor while the Contracting word subcontracting should be used in relation to the subcontractor. As to Payment of Wages Principal and legitimate Principal and labor only - But with DO 174-17, the terms may now be used interchangeably. job contractor contractor 1) Contracting/Subcontracting refers to an arrangement whereby a - joint and several - solidarily liable to the principal agrees to farm out to a contractor the performance or obligation to ensure labor only contractor’s completion of a specific job or work within a definite or predetermined that the employees are employees in the period, regardless of whether such job or work is to be performed or paid their wages. same manner and completed within or outside the premises of the principal. extent that the As to other legal Principal is not principal is liable to the 2) Contractor refers to any person or entity engaged in a legitimate obligations responsible for any employees directly contracting or subcontracting arrangement providing services for a claim made by the hired by him. specific job or undertaking farmed out by a principal under a Service contractor’s employees Agreement. Main Difference The law creates an The law creates an f. Three parties involved employer-employee employer-employee - Trilateral relationship refers to the relationship in a contracting relationship for a limited relationship for a arrangement where there is a: purpose: to ensure that comprehensive 1) service contract for a specific job, work or service between the the wages of the purpose: to prevent principal and the contractor; contractor’s employees circumvention of labor 2) an Employment Contract between the contractor and its are paid. laws, thus, the principal employees. and labor only contractor - Parties are: are solidarily liable for 1) Principal - refers to any natural or juridical entity whether an employer ALL RIGHTFUL CLAIMS or not who puts out or farms out a job or work to a contractor; of the employee 2) Contractor 3) Contractor’s Employee - refers to the employee of the contractor hired e. Dept. Order 174-17 is the IRR of the above articles. to perform or complete a job or work farmed out by the principal - Dept. Circular No. 01-17 was issued to clarify the non-applicability of pursuant to a Service Agreement with the latter. DO174-17 to BPO, KPO, LPO, IT infrastructure outsourcing, app dev’t, g. Rights of contractors’ employees hardware/software support, medical transcription, animation services, 1) Security of tenure back office operations/support, and the construction industry. 2) Safe and healthful working working conditions; - PRRD issued EO 51-18 which seeks to implement only Art. 106 out of 3) Labor Standards such as but not limited to service incentive leave. the four mentioned, of the Labor Code on contractualization. rest days, overtime pay, holiday pay, 13th month pay, and separation e. Terms pay.; 4) Retirement benefits under the SSS or retirement plans of the contractor/subcontractor; Labor Standards Finals Reviewer Atty. Buyco 2019-2020 Arimao | 7 ! 5) Social security and welfare benefits; - employees still in - applies to past and Workers involved 6) Self-organization, collective bargaining and peaceful concerted service present employees at activities including the right to strike. - Employer-employee the time the complaint h. Violation of said rights: principal deemed as the direct employer of the relationship is a is filed, without employees of the contractor or subcontractor; it is a finding that the condition sine qua non demand for contractor/subcontractor is engaged in labor-only contracting. (pre-requisite) reinstatement (if not, case will be under Labor Arbiter’s VI. Administration and Enforcement Power of the DOLE vs. Adjudication of jurisdiction) - purely seeking a employment related disputes (Comparing Arts. 128 and 129 of the Labor money claim for a Code) value not exceeding P5,000, whether or not Admin and Adjudication of there exists an Enforcement Power of employment related employer-employee DOLE disputes relationship at the time (Art. 128) (Art. 129) - no maximum monetary - amount of mmoney Jurisdictional Limits Nature and Subject of - inspection of - adjudication thru amount for the claim must not exceed Proceedings establishments and summary proceedings exercise of P5,000 issuance of orders tom after notice and enforcement power - Note: if claim exceeds compel compliance hearing of claims for P5000 or there is a with labor standards wages and benefits claim for - enforcement of labor - proceedings regarding reinstatement: file with legislation in general monetary claims which NLRC for hearing and - proceedings are therefore involve only decision of the Labor offshoots of labor standard laws Arbiter (Art. 224) inspections done by - initiated by sworn - Secretary of Labore or - Regional director or any Officers designated labor officers complaints filed by any any of his duly duly authorized hearing interested party. authorized officer of the DOLE. representatives, who may or may not be Regional Directors.]
Atty. Buyco 2019-2020 Arimao | !12 2. Voluntary Coverage - Monthly pension: is a lifetime cash benefit paid to a retiree who a) Non-working spouse of the SSS member; has paid at least 120 monthly contributions to the SSS prior to the b) OFWs after termination of their employment overseas can continue semester of retirement. to pay their contributions; - Lump sum amount: is granted to a retiree who has not paid the c) Filipino permanent migrants, including Filipino immigrants, required 120 monthly contributions. It is equal to the total permanent residents and naturalized citizens of their host countries. contributions paid by the member and the employer including interest. C. SSS Benefits: - Qualifications: 1. Sickness (a) has made 120 monthly contributions and is either - Daily cash allowance paid for the number of days a member is (b)60 years old and already separated from employment or unable to work due to sickness or injury has ceased to be self-employed; or - Member paid at least 3 monthly contributions in the 12month (c) 65 years old (thus entitled for as long as he lives to the period preceding the semester of sickness and is confined therefor monthly pension) for more than 3 days in a hospital or elsewhere with the approval of - Option to receive first 18 monthly pensions in lump sum discounted the SSS. at a preferential rate of interest to be determined by the SSS. - In no case shall the daily sickness benefit be paid longer than 120 - 60 years old without 120 monthly contribution requirement is days in 1 calendar year entitled to: lump sum benefit equal to the total contributions paid by - Daily sickness benefit shall not be paid for more than 240 days on him and on his behalf. Provided he is separated from employment account of the same confinement and is not continuing payment of contributions to the SSS. - Employee shall notify his employer of sickness or injury within 5 - Re-employment or Resumption of Self-employment: monthly calendar days after the start of his confinement. Unless such pension suspended upon re-employment, of a member who is less confinement is in a hospital or the employee became sick or was than 65 year old. He and his employer shall then be subject again injured while working or within the premises of the employer, to employee’s and employer’s contributions (RA 11199 notification is not necessary. - Death of retired member: primary beneficiaries shall be entitled to - When notification is necessary, the confinement shall be deemed receive the monthly pension; If there are no primary beneficiaries to have started not earlier than the 5th day immediately preceding and he dies within 60 days from the start of his monthly pension, the date of notification. his secondary beneficiaries shall be entitled to a lump sum - 100% reimbursement by SSS to employyer of the daily benefits: equivalent to the total monthly pensions corresponding to the Employer should notify the SSS of the confinement within 5 balance of the 5 year guaranteed period, excluding the calendar days preceding after notification from employee. If dependent’s pension. notification is made after the 5th calendar day, then the employer - Monthly pension of member retiring after 60 years old: It shall will only be reimbursed for each day of confinement starting from be the higher of either: (a) the monthly pension computed at the the 10th calendar day immediately preceding the date of earliest time he could have retired had he been separated from notification to the SSS. employment or ceased to be self-employed, plus all adjustments - Failure to notify the SSS: the employer shall have no right to thereto; or (b) the monthly pension computed at the time when he recover the corresponding daily allowance he advanced to the actually retires. employee member as required by the law. - Additional benefits: 13th month pension payable every 2. Maternity Leave December. Hospitalization benefits under Philhealth if they have - See rule on maternity leave provided under RA 111210 contributed 120 monthly Medicare contributions. 3. Retirement 4. Unemployment Insurance or Involuntary Separation - Cash benefit paid either through a monthly pension or lump sum - Granted to a member who is not over 60 years old amount - Who has paid at least 36 months contributions, 12 months of which should be in the 18 month period immediately preceding the involuntary unemployment or separation Labor Standards Finals Reviewer Atty. Buyco 2019-2020 Arimao | 1! 3 - Monthly cash payments equivalent to 50% of the average montly - Without 36 monthly contributions: primary or secondary salary credit for a maximum of 2 months. beneficiaries are entitled to a lump sum benefit equivalent to the - Can be claimed once every 3 years monthly pension times the number of monthly contributions paid to 5. Disability the SSS or 12 times the monthly pension, whichever is higher. - Permanent total disability benefit of monthly pension: available - Other benefits: 13th mont pension payable every December and to members who paid at least 36 months contributions prior to the the funeral benefit. semester of disability. - Without 36 months contributions, he shall be entitled to a lump 7. Funeral sum benefit equivalent to the monthly pension times the number of - P12,000 shall be paid in cash or in kind to help defray the cost of monthly contributions paid to the SSS or 12 times the monthly funeral expenses upon the death of a member, including pension, whichever is higher. permanently disabled member or retiree. - Re-employment or resumption of self-employment earlier than 1 year from the disability, or has received a lump sum: shall be subject to compulsory coverage and considered a new member. XVII. New Occupational health and safety law - Monthly pension and their dependent’s pension shall be A. IRR suspended upon: - re-employment or resumption of self-employment; or - recovery from disability; or XVIII. New Service Charge Law - failure to present himself for examination at least once a year upon notice by the SSS. XIX. Workers’ preference in case of insolvency of or bankruptcy of the - Permanent Total Disabilities: employer - Complete loss of both eyes; - Loss of two limbs at or above the ankle or wrists; - Permanent complete paralysis of two limbs; In case of bankruptcy or liquidation of the employer’s business, the unpaid wages - Brain injury resulting to incurable imbecility or insanity; and and other monetary claims of the employees shall be given first preference and - Such cases as determined and approved by the SSS. shall be paid in full before the claims of government and other creditors may be - Permanent Partial Disabilities: paid (Art.110, LC; Sec.7, Rule VIII, Book II). - Occurs before 36 months contributions have been paid prior to the semester of disability: percentage of lump sum benefit described in the preceding paragraph with due XX. Limitation on attorney’s fees in labor related cases regard to the degree of disability as the Commission may determine. ART.111. ATTORNEY’S FEES - Occurs after 36 monthly contributions have been paid a) In cases of unlawful withholding of wages the culpable party may be prior to the semester of disability: benefit shall be assessed attorney’s fees equivalent to 10% of the amount of wages percentage of the lump sum benefit with due regard to the recovered. degree of disability as the Commission may determine. b) It shall be unlawful for any person to demand or acept, in any 6. Death judicial or administrative proceedings for the recovery of the wages, - Cash benefit either in monthly pension or lump sum paid to the attorney’s fees, which exceed 10% of the amount of wages recovered. beneficiaries of a deceased member. Under this article, attorney’s fees are awarded as indemnity to the prevailing party. - Upon death of member who paid at least 36 monthly It is imposed upon the losing party by the adjudicator. Such award cannot exceed contributions prior to the semester of death: primary 10%. But outside of that, as between the lawyer and the client, the attorney’s fees beneficiaries entitled to pension. may exceed 10% on the basis of quantum meruit (or as much as he deserves). - Without primary beneficiaries: secondary beneficiaries shall be entitled to a lump sum equivalent to 36 times the monthly pension. Labor Standards Finals Reviewer Atty. Buyco 2019-2020 Arimao | 1! 4