Philippine Bar review · Question

Practice question: Wage Distortion

Multiple Choice Hard

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?
  1. Every reduction automatically proves the full legal definition
  2. Every employee automatically receives every wage order increase regardless of coverage
  3. The establishment may ignore the order entirely
  4. 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
  5. 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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