Practice question
A factory employs supervised packers at its premises for a full normal day. It pays per unit and concedes employment, actual eight-hour work and minimum-wage coverage. When output is low, it pays below the applicable minimum, relying solely on signed acceptance of a piece-rate formula. Which is correct?
- The signature always waives the minimum.
- Employment automatically disappears whenever output falls.
- A piece-rate agreement creates an unlimited exemption.
- The applicable minimum still governs; the conceded coverage cannot be displaced solely by the results formula.
- Only workers paid hourly can enforce minimum wages.
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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