Practice question
A covered employee is lawfully engaged for four hours. The proportional minimum for those hours isPHP 300, but the agreed piece rate earns the workerPHP 360. May the employer reduce the agreed earned amount toPHP 300 solely because that is the legal floor?
- Yes; minimum wage is always a maximum.
- Yes; results-based agreements are unenforceable.
- No; the floor does not itself cancel the worker's higher earned contractual pay.
- Only if the worker produced an odd number of pieces.
- The employer may pay nothing because the day was short.
Legal references
- Labor Code, DOLE consolidated 2022 edition, specified articles: https://natlex.ilo.org/dyn/natlex2/natlex2/files/download/15242/PHL15242%202022.pdf — Articles 97(f),101; RA 6727 implementing rules, Chapter I Sections7,9: https://lawphil.net/statutes/repacts/ra 1989/ra_6727_1989.html; DOLE BWC 2024 Handbook, minimum wages and payment by results: https://nwpc.dole.gov.ph/wp-content/uploads/2024/11/Workers-Statutory-Monetary-Benefits-Handbook-2024-Edition.pdf — Workers Paid by Results.
- David v Macasio, G.R. 195466, July 2 2014, main opinion: https://lawphil.net/judjuris/juri2014/jul2014/gr_195466_2014.html
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