Philippine Bar review · Question

Practice question: Payment by Results

Multiple Choice Hard

Practice question

An employer pays workers per piece and argues that this fact alone proves they are independent contractors and excluded from all hours-related benefits. The record contains evidence of supervision and determinable working time, but no established regulatory exemption. Which is the correct approach?
  1. The label conclusively establishes every exemption.
  2. Output payment makes supervision irrelevant.
  3. All results-paid workers are identically exempt from every benefit.
  4. Employment and each benefit must be determined under their own tests; the mode of payment alone is insufficient.
  5. All piece-rate arrangements are prohibited.

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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