1. Sally Solidum-Protacio I.R. 207.1
Workers paid by result
Sally Solidum-Protacio
I.R

2. Workers Paid by Results:
Workers paid by result may be classified into two (2) categories, namely:
a). Piece-rate workers – those who are paid per piece of work. Their work output is quantifiable based on the number of unit produced.
b). Task-based workers, “pakiao”, or “takay” – those who are paid based on result of work or bulk work that is difficult to quantify.

3. Workers Paid by Results:
Workers paid by result are those paid per unit output or on task basis.
The nature of their work is such that they are paid not on the basis of the time spent at work or the nature of their work is so characterized that actual hours of work cannot be determined with reasonable certainty.

4. Standard Rates for Workers Paid by Results
The wage rates of workers who are paid by results shall continue to be established in accordance with Article 101 of the Labor Code, as amended and its implementing regulations, i.e., through: 1. Time and motion studies; 2. An individual/collective bargaining agreement between the employer and its workers as approved by the Secretary. 3. Consultation with representatives of employers and workers as organizations in tripartite conference called by Secretary.

5. Those whose rates conform to the standards under Labor Code (compensated based on rates prescribed under Section 8, Rule VII, Book III of the Implementing Rules of the Labor Code) or such rates as may be fixed by the Secretary of Labor and Employment, are presumed to be unsupervised by the employer.
They are paid a standard rate per piece of work produced without regard to the time it takes to produce each piece; in which case, said workers are not entitled to overtime pay for work in excess of eight hours a day.

6. When can workers paid by result be covered by the conditions of employment under Book III of the Labor Code?
When they are working under the control and supervision of the employer (“time-work basis”).
When the output rates of piece-rate workers are NOT in accordance with the procedures and standard rates prescribed under the Labor Code or fixed by the Secretary of Labor (“supervised”).

7. Workers Paid by Result
Piece-rate Worker
(Supervised by Employer)
Task-based Worker
(Supervised by Employer)
If they work under the supervision of the employer, they are covered by Book III of the Labor Code.
If they work under the supervision of the employer, they are covered by Book III of the Labor Code.

8. Workers Paid by Result Excluded from the payment of :
Piece-rate Worker (Unsupervised)
Task-based Worker (Unsupervised)
Excluded from the payment of :
overtime, premium pay, holiday pay, night-shift differential, service incentive leave, and 13th month pay.
Entitled to:
retirement pay
Excluded from all benefits under Book III LC, but are entitled to:
Piece-rate workers are entitled to 13th month pay (P.D 851).
Piece-rate workers are entitled to holiday pay (Section 8 (b), Rule IV, Book III, Implementing Rules).
Piece-rate workers are entitled to meal and rest periods.
Retirement pay
Rationale: Although they are working not on time-work basis, the employer-employee relationship continue to exists.