Practice question
Employees in different grades receive unequal wages reflecting their skills. A new prescribed increase reduces but does not necessarily severely contract those differentials. A claimant says any numerical reduction automatically proves statutory distortion and guarantees an identical increase for every employee. Which is sound?
- Every reduction automatically proves the full legal definition
- Every employee automatically receives every wage order increase regardless of coverage
- The establishment may ignore the order entirely
- Examine whether the statutory severe-contraction or elimination test is met and use the proper correction process; no universal identical-increase entitlement follows from the assertion alone
- Only a wage difference between unrelated companies matters
Legal references
- Labor Code, Article 124, as amended by RA6727: https://lawphil.net/statutes/repacts/ra1989/ra_6727_1989.html
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