Practice question
A valid effective wage order establishes a hypotheticalPHP 650 daily floor for a covered employee. The employee's existing contractual daily wage isPHP 700. The employer says the new floor authorizes reducing the contractual wage toPHP 650 even though no lawful basis for that reduction exists. Which is correct?
- A statutory minimum always becomes the maximum wage.
- The order automatically erases all higher contractual rates.
- The worker must choose either employment or the higher wage.
- The order makes all earlier wages unenforceable.
- The new floor does not itself authorize reducing the higher lawful contractual wage.
Legal references
- Labor Code, DOLE consolidated 2022 edition, specified articles: https://natlex.ilo.org/dyn/natlex2/natlex2/files/download/15242/PHL15242%202022.pdf — Articles 99,122–124.
- Labor Code, DOLE consolidated 2022 edition, specified articles: https://natlex.ilo.org/dyn/natlex2/natlex2/files/download/15242/PHL15242%202022.pdf — Article 100.
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