Practice question
An establishment invokes DO 242 to remove an independently enforceable more favorable service-charge benefit, arguing the regulation is a maximum rather than a protective rule. Which is sound?
- The regulation automatically cancels all favorable agreements.
- Its non-diminution provision requires considering the established existing benefit.
- No CBA may contain service-charge terms.
- A protective rule is always a ceiling.
- Only management’s newest preference may be considered.
Legal references
- RA 11360 Sections 1-2 amending Labor Code Article 96: https://lawphil.net/statutes/repacts/ra2019/ra_11360_2019.html
- DOLE Department Order 242 s.2024, Sections 1-2 and 6-7, signed registered issuance: https://naro.law.upd.edu.ph/storage/01JWABFNVSG2YDB7B30BCY9PQB.pdf
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