1. 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

2. Under Wage Order No. RB XI-18 Under Wage Order No. RB XI-19
SECTOR/INDUSTRY
Under Wage Order No. RB XI-18
Under Wage Order No. RB XI-19
Effective December 16, 2016
Effective May 1, 2017
Basic wage
COLA
Minimum Wage Rate
(MWR)
Basic Wage
Minimum Wage Rate (MWR)
New Minimum Wage with COLA integration
Non-Agriculture/Industrial/Commercial and Retail/Service employing more than 10 workers
P312.00
P 5.00 P P P
P (335+5)
AGRICULTURE P P
P330.00
( )
P (330 +5)
RETAIL/SERVICE
Employing not more than 10 workers P P
P ( ) P
P ( )

3. Coverage:
- all workers and employees in the private sector receiving the minimum wage in Davao Region, regardless of position, designation or status of employment and irrespective of the method by which their wages are paid.

4. Exemptions: - Family Drivers;
-Domestic workers or kasambahay covered by Batas Kasambahay ( R.A );
- 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.

5. Application to Private Educational Institutions:
The share of covered workers & employees in the increase in tuition fees for SY shall be considered as compliance.
However, payment of any shortfall in the MWR shall be covered starting SY
Those who have not increased their tuition fees for SY may defer with compliance until the beginning of SY
In any case, implementation of the increase shall be implemented starting SY

6. Effect on existing wage structure:
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).

7. Complaints for non-compliance
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.

8. Penal Provisions:
FINE of not less than P25, 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.

9. Implementation of Republic Act 8188
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.

10. DOLE Department Order No. 107 series of 2010 – Single Entry Approach
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.

11. Coverage: 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;

12. 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.

13. 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 (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.

14. Department Order 131-13B series of 2016- Revised Rules on Labor Laws Compliance System
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.

15. 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.

16. 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.

17. 4. SPECIAL ASSESSMENT OF VISIT OF ESTABLISHMENTS (SAVE)- refers to the process of evaluating compliance with Labor Laws and Social Legislation for policy formulation.

18. Department Order 174 Salient features:
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).
Registration Fee- One Hundred Thousand Pesos (P100,000.00).

19. 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

20. 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.

21. 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.

22. 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.

23. 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.

24. End of presentation.
THANK YOU!