14th Month Pay

8/11/2019 14th Month Pay

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circulation.

Approved,

Republic of the Philippines

Congress of the PhilippinesMetro ManilaFirst Special SessionFirst Special SessionBegun and held in Metro Manila on Friday the seventh day of Junenineteen hundred and ninety-six.REPUBLIC ACT NO. 8188AN ACT INCREASING THE PENALTY AND INCREASING DOUBLEINDEMNITY FORVIOLATION OF THE PRESCRIBED INCREASES OR ADJUSTMENT IN THEWAGERATES, AMENDING FOR THE PURPOSE SECTION TWELVE OF REPUBLICACTNUMBERED SIXTY-SEVEN HUNDRED TWENTY-SEVEN, OTHERWISEKNOWN ASTHE WAGE RATIONALIZATION ACTBe it enacted by the Senate and House of Representatives of the Philippines inCongress assembled:SECTION 1. Section 12 of Republic Act Numbered Sixty-seven hundred twenty-seven ishereby amended to read to as follows:"Section 12. Any person, corporation, trust, firm, partnership, association or entitywhichrefuses or fails to pay any of the prescribed increases or adjustments in the wagerates made in accordance with this Act shall be punished by a fine not less thanTwentyfivethousand pesos (P25,000) nor more than One hundred thousand pesos(P100,000) orimprisonment of not less than two (2) years nor more than four (4) years, or bothsuch fineand imprisonment at the discretion of the court: Provided, That any personconvicted underthis Act shall not be entitled to the benefits provided for under the Probation Law."The employer concerned shall be ordered to pay an amount equivalent todouble theunpaid benefits owing to the employees: Provided, That payment of indemnityshallnot absolve the employer from the criminal liability imposableunder this Act."If the violation is committed by a corporation, trust or firm, partnership,association or


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any other entity the penalty of imprisonment shall be imposed upon the entity'sresponsibleofficers, including, but not limited to, the president, vice-president, chief executiveofficer,

general manager, managing director or partner."SECTION 2. All laws, presidential decrees, executive orders, rules andregulations orparts thereof inconsistent with the provisions of this Act are hereby repealed ormodifiedaccordingly.SECTION 3. This Act shall take effect fifteen (15) days after its completepublication in anewspaper of general circulation.

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Republic of the Philippines Congress of the Philippines Metro ManilaSecond Regular SessionBegun and held in Metro Manila, on Monday, the twenty- fifth day of July, nineteenhundred and eighty-eight [REPUBLIC ACT NO. 6727]AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION BY ESTABLISHINGTHE MECHANISM AND PROPER STANDARDS THEREFOR, AMENDING FOR THEPURPOSE ARTICLE 99 OF, AND INCORPORATING ARTICLES 120, 121, 122, 123, 124,126 AND 127 INTO, PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISEKNOWN AS THE LABOR CODE OF THE PHILIPPINES, FIXING NEW WAGE RATES,PROVIDING WAGE INCENTIVES FOR INDUSTRIAL DISPERSAL TO THECOUNTRYSIDE, AND FOR OTHER PURPOSESBe it enacted by the Senate and House of Representatives of the Philippines in Congressassembled:Sec. 1. This Act shall be known as the "Wage Rationalization Act."Sec. 2. It is hereby declared the policy of the State to rationalize the fixing of minimumwages and to promote productivity-improvement and gain-sharing measures to ensurea decent standard of living for the workers and their families; to guarantee the rights oflabor to its just share in the fruits of production; to enhance employment generation inthe countryside through industry dispersal; and to allow business and industry

reasonable returns on investment, expansion and growth.The State shall promote collective bargaining as the primary mode of setting wages andother terms and conditions of employment; and, whenever necessary, the minimumwage rates shall be adjusted in a fair and equitable manner, considering existingregional disparities in the cost of living and other socio-economic factors and thenational economic and social development plans.Sec. 3. In line with the declared policy under this Act, Article 99 of Presidential DecreeNo. 442, as amended, is hereby amended and Articles 120, 121, 122, 123, 124, 126 and 127


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are hereby incorporated into Presidential Decree No. 442, as amended, to read asfollows:"Art. 99. Regional Minimum Wages. - The minimum wage rates for agricultural andnon-agricultural employees and workers in each and every region of the country shall

be those prescribed by the Regional Tripartite Wages and Productivity Boards.""Art. 120. Creation of the National Wages and Productivity Commission. - There ishereby created a National Wages and Productivity Commission, hereinafter referred toas the Commission, which shall be attached to the Department of Labor andEmployment (DOLE) for policy and program coordination.""Art. 121. Powers and Functions of the Commission. - The Commission shall have thefollowing powers and functions(a) To act as the national consultative and advisory body to the President of thePhilippines and Congress on matters relating to wages, incomes and productivity;(b) To formulate policies and guidelines on wages, incomes and productivityimprovement at the enterprise, industry and national levels;(c) To prescribe rules and guidelines for the determination of appropriate minimumwage and productivity measures at the regional, provincial or industry levels;(d) To review regional wage levels set by the Regional Tripartite Wages andProductivity Boards to determine if these are in accordance with prescribed guidelinesand national development plans;(e) To undertake studies, researches and surveys necessary for the attainment of itsfunctions and objectives, and to collect and compile data and periodically disseminateinformation on wages and productivity and other related information, including, but notlimited to, employment, cost-of-living, labor costs, investments and returns;(f) To review plans and programs of the Regional Tripartite Wages and ProductivityBoards to determine whether these are consistent with national development plans;(g) To exercise technical and administrative supervision over the Regional Tripartite

Wages and Productivity Boards;(h) To call, from time to time, a national tripartite conference of representatives ofgovernment, workers and employers for the consideration of measures to promote wagerationalization and productivity; and(i) To exercise such powers and functions as may be necessary to implement this Act."The Commission shall be composed of the Secretary of Labor and Employment as ex-officio chairman, the Director-General of the National Economic and DevelopmentAuthority (NEDA) as ex-officio vice-chairman, and two (2) members each from workersand employers sectors who shall be appointed by the President of the Philippines uponrecommendation of the Secretary of Labor and Employment to be made on the basis ofthe list of nominees submitted by the workers and employers sectors, respectively, and

who shall serve for a term of five (5) years. The Executive Director of the CommissionSecretariat shall also be a member of the Commission.""The Commission shall be assisted by a Secretariat to be headed by an ExecutiveDirector and two (2) Deputy Directors, who shall be appointed by the President of thePhilippines, upon recommendation of the Secretary of Labor and Employment.""The Executive Director shall have the same rank, salary, benefits and other emolumentsas that of a Department Assistant Secretary, while the Deputy Directors shall have thesame rank, salary, benefits and other emoluments as that of a Bureau Director. The


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members of the Commission representing labor and management shall have the samerank, emoluments, allowances and other benefits as those prescribed by law for laborand management representatives in the Employees' Compensation Commission.""Art. 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is

hereby created Regional Tripartite Wages and Productivity Boards, hereinafter referredto as Regional Boards, in all regions, including autonomous regions as may beestablished by law. The Commission shall determine the offices/headquarters of therespective Regional Boards."The Regional Boards shall have the following powers and functions in their respectiveterritorial jurisdiction:(a) To develop plans, programs and projects relative to wages, incomes and productivityimprovement for their respective regions;(b) To determine and fix minimum wage rates applicable in their region, provinces orindustries therein and to issue the corresponding wage orders, subject to guidelinesissued by the Commission;(c) To undertake studies, researches, and surveys necessary for the attainment of theirfunctions, objectives and programs, and to collect and compile data on wages, incomes,productivity and other related information and periodically disseminate the same;(d) To coordinate with the other Regional Boards as may be necessary to attain thepolicy and intention of this Code;(e) To receive, process and act on applications for exemption from prescribed wage ratesas may be provided by law or any Wage Order; and(f) To exercise such other powers and functions as may be necessary to carry out theirmandate under this Code."Implementation of the plans, programs and projects of the Regional Boards referred toin the second paragraph, letter (a) of this Article, shall be through the respective regionaloffices of the Department of Labor and Employment within their territorial jurisdiction;

Provided, however, That the Regional Boards shall have technical supervision over theregional office of the Department of Labor and Employment with respect to theimplementation of said plans, programs and projects."Each Regional Board shall be composed of the Regional Director of the Department ofLabor and Employment as chairman, the Regional Directors of the National Economicand Development Authority and Department of Trade and Industry as vice-chairmenand two (2) members each from workers and employers sectors who shall be appointedby the President of the Philippines, upon recommendation of the Secretary of Labor andEmployment, to be made on the basis of the list of nominees submitted by the workersand employers sectors, respectively, and who shall serve for a term of five (5) years."Each Regional Board to be headed by its chairman shall be assisted by a Secretariat."

"Art. 123. Wage Order. - Whenever conditions in the region so warrant, the RegionalBoard shall investigate and study all pertinent facts; and, based on the standards andcriteria herein prescribed, shall proceed to determine whether a Wage Order should beissued.Any such Wage Order shall take effect after fifteen (15) days from its completepublication in at least one (l) newspaper of general circulation in the region.


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"In the performance of its wage-determining functions, the Regional Board shall conductpublic hearings/consultations, giving notices to employees' and employers' groups,provincial, city and municipal officials and other interested parties."Any party aggrieved by the Wage Order issued by the Regional Board may appeal such

order to the Commission within ten (l0) calendar days from the publication of suchorder. It shall be mandatory for the Commission to decide such appeal within sixty (60)calendar days from the filing thereof."The filing of the appeal does not operate to stay the order unless the person appealingsuch order shall file with the Commission an undertaking with a surety or suretiessatisfactory to the Commission for the payment to the employees affected by the orderof the corresponding increase, in the event such order is affirmed.""Art. 124. Standards/Criteria for Minimum Wage Fixing. The regional minimum wagesto be established by the Regional Board shall be as nearly adequate as is economicallyfeasible to maintain the minimum standards of living necessary for the health, efficiencyand general well-being of the employees within the framework of the national economicand social development program. In the determination of such regional minimumwages, the Regional Board shall, among other relevant factors, consider the following:(a) The demand for living wages; (b) Wage adjustment vis--vis the consumer priceindex; (c) The cost of living and changes or increases therein; (d) The needs of workersand their families; (e) The need to induce industries to invest in the countryside; (f)Improvements in standards of living; (g) The prevailing wage levels; (h) Fair return ofthe capital invested and capacity to pay of employers; (i) Effects on employmentgeneration and family income; and (j) The equitable distribution of income and wealthalong the imperatives of economic and social development."The wages prescribed in accordance with the provisions of this Title shall be thestandard prevailing minimum wages in every region. These wages shall include wagesvarying with industries, provinces or localities if in the judgment of the Regional Board

conditions make such local differentiation proper and necessary to effectuate thepurpose of this Title."Any person, company, corporation, partnership or any other entity engaged in businessshall file and register annually with the appropriate Regional Board, Commission andthe National Statistics Office an itemized listing of their labor component, specifying thenames of their workers and employees below the managerial level, including learners,apprentices and disabled/handicapped workers who were hired under the termsprescribed in the employment contracts, and their corresponding salaries and wages."Where the application of any prescribed wage increase by virtue of a law or WageOrder issued by any Regional Board results in distortions of the wage structure withinan establishment, the employer and the union shall negotiate to correct the distortions.

Any dispute arising from wage distortions shall be resolved through the grievanceprocedure under their collective bargaining agreement and, if it remains unresolved,through voluntary arbitration. Unless otherwise agreed by the parties in writing, suchdispute shall be decided by the voluntary arbitrator or panel of voluntary arbitratorswithin ten (10) calendar days from the time said dispute was referred to voluntaryarbitration."In cases where there are no collective agreements or recognized labor unions, theemployers and workers shall endeavor to correct such distortions. Any dispute arising


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therefrom shall be settled through the National Conciliation and Mediation Board and, ifit remains unresolved after ten (10) calendar days of conciliation, shall be referred to theappropriate branch of the National Labor Relations Commission (NLRC). It shall bemandatory for the NLRC to conduct continuous hearings and decide the dispute within

twenty (20) calendar days from the time said dispute is submitted for compulsoryarbitration."The pendency of a dispute arising from a wage distortion shall not in any way delay theapplicability of any increase in prescribed wage rates pursuant to the provisions of lawor Wage Order."As used, herein, a wage distortion shall mean a situation where an increase inprescribed wage rates results in the elimination or severe contraction of intentionalquantitative differences in wage or salary rates between and among employee groups inan establishment as to effectively obliterate the distinctions embodied in such wagestructure based on skills, length of service, or other logical bases of differentiation."All workers paid by result, including those who are paid on piecework, takay, pakyawor task basis, shall receive not less than the prescribed wage rates per eight (8) hourswork a day, or a proportion thereof for working less than eight (8) hours."All recognized learnership and apprenticeship agreements shall be consideredautomatically modified insofar as their wage clauses are concerned to reflect theprescribed wage rates.""Art. 126. Prohibition Against Injunction. - No preliminary or permanent injunction ortemporary restraining order may be issued by any court, tribunal or other entity againstany proceedings before the Commission or the Regional Boards.""Art. 127. Non-Diminution of Benefits. - No Wage Order issued by any Regional Boardshall provide for wage rates lower than the statutory minimum wage rates prescribed byCongress."Sec. 4. (a) Upon the effectivity of this Act, the statutory minimum wage rates of all

workers and employees in the private sector, whether agricultural or non-agricultural,shall be increased by twenty-five pesos (P25.00) per day, except that workers andemployees in plantation agricultural enterprises outside of the National Capital Region(NCR) with an annual gross sales of less than five million pesos (P5,000,000.00) in thepreceding year shall be paid an increase of twenty pesos (P20.00), and except furtherthat workers and employees of cottage/handicraft industries, non-plantationagricultural enterprises, retail/service establishments regularly employing not morethan ten (10) workers, and business enterprises with a capitalization of not more thanfive hundred thousand pesos (P500,000.00) and employing not more than twenty (20)employees, which are located or operating outside the NCR, shall be paid only anincrease of fifteen pesos (P15.00): Provided, That those already receiving above the

minimum wage rates up to one hundred pesos (P100.00) shall also receive an increase oftwenty-five pesos (P25.00) per day, and except that the workers and employeesmentioned in the first exception clause of this section shall also be paid only an increaseof twenty-pesos (P20.00), and except further that those employees enumerated in thesecond exception clause of this Section shall also be paid only an increase of fifteen pesos(P15.00): Provide, further, That the appropriate Regional Board is hereby authorized togrant additional increases to the workers and employees mentioned in the exception


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clauses of this Section if, on the basis of its determination pursuant to Article 124 of theLabor Code such increases are necessary.(b) The increase of twenty-five pesos (P25.00) prescribed under this Section shall applyto all workers and employees entitled to the same in private educational institutions as

soon as they have increased or are granted authority to increase their tuition fees duringschool year 1989-1990. Otherwise, such increase shall be so applicable not later than theopening of the next school year beginning 1990.(c) Exempted from the provisions of this Act are household or domestic helpers andpersons employed in the personal service of another, including family drivers.Retail/service establishments regularly employing not more than ten (10) workers maybe exempted from the applicability of this Act upon application with and as determinedby the appropriate Regional Board in accordance with the applicable rules andregulations issued by the Commission. Whenever an application for exemption has beenduly filed with the appropriate Regional Board, action on any complaint for alleged non-compliance with this Act shall be deferred pending resolution of the application forexemption by the appropriate Regional Board.In the event that applications for exemptions are not granted, employees shall receivethe appropriate compensation due them as provided for by this Act plus interest of onepercent (1%) per month retroactive to the effectivity of this Act.(d) If expressly provided for and agreed upon in the collective bargaining agreements,all increases in the daily basic wage rates granted by the employers three (3) monthsbefore the effectivity of this Act shall be credited as compliance with the increases in thewage rates prescribed herein, provided that, where such increases are less than theprescribed increases in the wage rates under this Act, the employer shall pay thedifference. Such increases shall not include anniversary wage increases, merit wageincreases and those resulting from the regularization or promotion of employees.Where the application of the increases in the wage rate under this Section results in

distortions as defined under existing laws in the wage structure within an establishmentand gives rise to a dispute therein, such dispute shall first be settled voluntarily betweenthe parties and in the event of a deadlock, the same shall be finally resolved throughcompulsory arbitration by the regional arbitration branch of the National LaborRelations Commission (NLRC) having jurisdiction over the workplace.It shall be mandatory for the NLRC to conduct continuous hearings and decide anydispute arising under this Section within twenty(20) calendar days from the time saiddispute is formally submitted to it for arbitration. The pendency of a dispute arisingfrom a wage distortion shall not in any way delay the applicability of the increases in thewage rates prescribed under this Section.Sec. 5. Within a period of four (4) years from the effectivity of this Act and without

prejudice to collective bargaining negotiations or agreements or other employmentcontracts between employers and workers, new business enterprises that may beestablished outside the NCR and export processing zones whose operation orinvestments need initial assistance as may be determined by the Department of Laborand Employment in consultation with the Department of Trade and Industry or theDepartment of Agriculture, as the case may be shall be exempt from the application ofthis Act for not more than three (3) years from the start of their operations: Provided,That such new business enterprises established in Region III (Central Luzon) and Region


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IV (Southern Tagalog) shall be exempt from such increases only for two (2) years fromthe start of their operations, except those established in the Provinces of Palawan,Oriental Mindoro, Occidental Mindoro, Marinduque, Romblon, Quezon and Aurora,which shall enjoy such exemption for not more than three (3) years from the start of their

operations.Sec. 6. In the case of contracts for construction projects and for security, janitorial andsimilar services, the prescribed increases in the wage rates of the workers shall be borneby the principals or clients of the construction/service contractors and the contract shallbe deemed amended accordingly. In the event, however, that the principal or client failsto pay the prescribed wage rates, the construction/service contractor shall be jointly andseverally liable with his principal or client.Sec. 7. Upon written petition of the majority of the employees or workers concerned, allprivate establishments, companies, businesses, and other entities with twenty five (25)or more employees and located within one (1) kilometer radius to a commercial, savingsor rural bank shall pay the wages and other benefits of their employees through any ofsaid banks and within the period for payment of wages fixed by Presidential Decree No.442, as amended, otherwise known as the Labor Code of the Philippines.Sec. 8. Whenever applicable and upon request of a concerned worker or union, the bankshall issue a certification of the record of payment of wages of a particular worker orworkers for a particular payroll period.Sec. 9. The Department of Labor and Employment shall conduct inspections as often aspossible within its manpower constraint of the payroll and other financial records keptby the company or business to determine whether the workers are paid the prescribedwage rates and other benefits granted by law or any Wage Order. In unionizedcompanies, the Department of Labor and Employment inspectors shall always beaccompanied by the president or any responsible officer of the recognized bargainingunit of any interested union in the conduct of the inspection. In non-unionized

companies, establishments or businesses, the inspection shall be carried out in thepresence of a worker representing the workers in the said company. The workers'representative shall have the right to submit his own findings to the Department ofLabor and Employment and to testify on the same if he cannot concur with the findingsof the labor inspector.Sec. 10. The funds necessary to carry out the provisions of this Act shall be taken fromthe Compensation and Organizational Adjustment Fund, the Contingent Fund, andother savings under Republic Act No. 6688, otherwise known as the GeneralAppropriations Act of 1989, or from any unappropriated funds of the National Treasury:Provided, That the funding requirements necessary to implement this Act shall beincluded in the annual General Appropriations Act for the succeeding years.

Sec. 11. The National Wages Council created under Executive Order No. 614 and theNational Productivity Commission created under Executive Order No. 615 are herebyabolished. All properties, records, equipment, buildings, facilities, and other assets,liabilities and appropriations of and belonging to the abovementioned offices, as well asother matters pending therein, shall be transferred to the Commission. All personnel ofthe above abolished offices shall continue to function in a holdover capacity and shall bepreferentially considered for appointments to or placement in the Commission.


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Any official or employee separated from the service as a result of the abolition of officespursuant to this Act shall be entitled to appropriate separation pay and retirement andother benefits accruing to them under existing laws. In lieu thereof, at the option of theemployee, he shall be preferentially considered for employment in the government or in

any of its subdivisions, instrumentalities, or agencies, including government-owned orcontrolled corporations and their subsidiaries.Sec. 12. Any person, corporation, trust, firm, partnership, association or entity whichrefuses or fails to pay any of the prescribed increases or adjustments in the wage ratesmade in accordance with this Act shall be punished by a fine not exceeding twenty-fivethousand pesos (P25,000.00) and/or imprisonment of not less than one (1) year nor morethan two (2) years: Provided, That any person convicted under this Act shall not beentitled to the benefits provided for under the Probation Law.If the violation is committed by a corporation, trust or firm, partnership, association orany other entity, the penalty of imprisonment shall be imposed upon the entity'sresponsible officers, including, but not limited to, the president, vice president, chiefexecutive officer, general manager, managing director or partner.Sec. 13. The Secretary of Labor and Employment shall promulgate the necessary rulesand regulations to implement the provisions of this Act.Sec. 14. All laws, orders, issuances, rules and regulations or parts thereof inconsistentwith the provisions of this Act are hereby repealed, amended or modified accordingly.In any provision or part of this Act, or the application thereof to any person orcircumstance, is held invalid or unconstitutional, the remainder of this Act or theapplication of such provision or part thereof to other persons or circumstances shall notbe affected thereby.Nothing in this Act shall be construed to reduce any existing wage rates, allowances andbenefits of any form under existing laws, decrees, issuances, executive orders, and/orunder any contract or agreement between the workers and employers.

Sec. 15. This Act shall take effect fifteen (15) days after its complete publication in theOfficial Gazette or in at least two (2) national newspapers of general circulation,whichever comes earlier.

NWPC GUIDELINES NO. 01 Series of 2007

AMENDED RULES OF PROCEDURE ON MINIMUM WAGE FIXING

Pursuant to Article 121 (c) of the Labor Code as amended by Section 3 of R. A. 6727,the National Wages and Productivity Commission hereby adopts and promulgates thefollowing amended rules of procedure governing the proceedings in the Commissionand the Regional Tripartite Wages and Productivity Boards in the fixing of minimumwage rates by region, province or industry.

RULE I GENERAL PROVISIONSSection 1. Title. This Rules shall be known as the Amended Rules of Procedure onMinimum Wage Fixing.Section 2. Construction. This Rules shall be liberally construed to carry out theobjectives of R. A. 6727.Section 3. Scope. This Rules shall govern proceedings in the National Wages andProductivity Commission and the Regional Tripartite Wages and Productivity Boardsin the fixing of minimum wage rates.Section 4. Definition of Terms. As used in this Rules:


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a. "Act" means Republic Act No. 6727;b. "Board" means the Regional Tripartite Wages and Productivity Board;c. "Commission" means the National Wages and Productivity Commission;d. "Chairman" means Chairman of the Commission;e. "Member" refers to the members of the Commission or Board, including its

Chairman;f. "Regional Chairman" means the Chairman of the Board;g. "Party" means any legitimate organization of workers or employers withsubstantial interest in the region, province or industry therein as determined by theBoard and who stands to be directly affected by the Commission/Board proceedings,orders, decisions or resolutions;h. "Industry" refers to a trade, business or sector thereof or group of businesses insimilar or allied activities in which individuals are gainfully employed;i. "Locality" refers to a geographical area smaller than a province and includesindustrial estates/export processing zones;j. "Region" refers to a geographical area composed of a group of provinces and/orcities as defined under Presidential Decree No. 1, as amended, including those thatmay be subsequently established by law;k. "Regional Minimum Wage Rates" refer to the lowest wage rates that an employercan pay his workers, as fixed by the Board which shall not be lower than theapplicable statutory minimum wage rates;l. "Statutory Minimum Wages" refer to the lowest wages as provided by law;m. "Wage Distortion" shall mean a situation where an increase in prescribed wagerates results in the elimination or severe contraction of intentional quantitativedifferences in wage or salary rates between and among employee groups in anestablishment as to effectively obliterate the distinctions embodied in such wagestructure based on skills, length of service, or other logical bases of differentiation;n. "Wage Order" refers to the Order promulgated by the Board pursuant to its wagefixing authority.RULE II MINIMUM WAGE FIXING

Section 1. Conduct of Wage and Productivity Studies. The Board shall, subjectto guidelines issued by the Commission, conduct continuing studies of wage rates,productivity and other conditions in the region, provinces or industries therein. TheBoard shall investigate and study all pertinent facts, and based on standards andcriteria prescribed under Section 2 of this Rule, shall determine whether a wageorder should be issued.Section 2. Standards/Criteria for Minimum Wage Fixing. The minimum wagerates to be established by the Board shall be as nearly adequate as is economicallyfeasible to maintain the minimum standards of living necessary for the health,efficiency and general well-being of the workers within the framework of nationaleconomic and social development goals. In the determination of regional minimumwages, the Board shall, among other relevant factors, consider the following:(a) Needs of workers and their families

1) Demand for living wages 2) Wage adjustment vis--vis the consumer price index3) Cost of living and changes therein 4) Needs of workers and their families 5)Improvements in standards of living

(b) Capacity to pay1) Fair return on capital invested and capacity to pay of employers 2) Productivity(c) Comparable wages and incomes1) Prevailing wage levels


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(d) Requirements of economic and social development1) Need to induce industries to invest in the countryside 2) Effects on employmentgeneration and family income 3) Equitable distribution of income and wealth alongthe imperatives of economic and social development.Section 3. Procedures in Minimum Wage Fixing

(a) Motu Proprio by the BoardWhenever conditions in the region, province or industry so warrant, the Board may,motu proprio or as directed by the Commission, initiate action or inquiry todetermine whether a wage order should be issued. The Board shall conduct publichearings in the manner prescribed under this Rule and Rule III. The Board may alsoconduct consultations with concerned sectors/industries.(b) By Virtue of a Petition Filed.1) Form and Content of PetitionAny party may file a verified petition for wage increase with the appropriate Board inthree (3) printed legible copies which shall contain the following:(a) name/s, and address/es of petitioner/s and signature/s of authorized official/s;(b) grounds relied upon to justify the increase being sought; (c) amount of wageincrease being sought; (d) area and/or industry covered.2. Board ActionThe Board, shall within fifteen (15) calendar days from receipt of a petition, evaluatethe same. If the petition conforms with the requirements prescribed in the precedingsub-section and other requirements under this Rules, the Board shall conduct publichearings in the manner prescribed under this Rule and Rule III to determine whethera wage order should be issued.3. Publication of Notice of Petition/Public Hearing.A notice of the petition and/or public hearing shall be published in a newspaper ofgeneral circulation in the region and/or posted in public places as determined by theBoard. The notice shall include the name/s and address/es of the petitioner/s, thesubject of the petition and the date/s, place/s and time of the hearings. Thepublication or posting shall be made at least fifteen (15) days before the date of

initial hearing and shall be in accordance with the prescribed form attached as Annex"A".4. Opposition.Any party may file his opposition to the petition on or before the initial hearing, copyfurnished the petitioner/s. The opposition shall be filed with the appropriate Board inthree (3) printed legible copies which shall contain the following:(a) name/s and address/es of the oppositor/s and signature/s of authorizedofficial/s;

(b) reasons or grounds for the opposition; and

(c) relief sought.5. Consolidation of Petitions.If there is more than one petition filed, the Board may, motu proprio or on motion ofany party, consolidate these for purposes of conducting joint hearings or proceedingsto expedite resolution of petitions. Petitions received after publication of an earlierpetition need not go through the publication/posting requirement.6. Assistance of Other Government and Private Organizations.The Board may enlist the assistance and cooperation of any government agency orprivate person or organization to furnish information in aid of its wage function.RULE III CONDUCT OF HEARINGS/CONSULTATIONSSection 1. Public Hearings/Consultations. Prior to the issuance of a wage order,public hearings shall be conducted giving notices to employees' and employers'


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groups, provincial, city and municipal officials and other interested parties. TheBoard may also conduct consultations with concerned sectors/industries.Section 2. Who may Conduct. Hearings may be conducted by the Board en banc orby a duly authorized committee thereof wherein each sector shall be represented.The presence of the Regional Chairman or any of the Vice Chairmen shall be

required. If unable to attend, Board Members may send observers. The Board shalldetermine the date/s, place/s and time of the hearings which shall be opened to thepublic except as otherwise, requested by a party and so determined by the Board.Sections 3. Order of Hearing. As much as practicable, the petitioner/s shall presenthis/their evidence first, followed by the oppositor/s. The Board may then call onother persons to present their view and submit position papers and other supportingdocuments.Section 4. Manner and Duration of Hearings. Public hearings shall be conductedin a manner that shall ensure that all sectors and parties who stand to be directlyaffected by the the Board are given the widest opportunity to be heard. Pursuant tothis, the hearings shall be conducted in each province in the region as far aspracticable.Hearings shall be concluded within forty five (45) days from the date of initialhearing except when conditions in the region warrant otherwise.Section 5. Records of Proceedings. The Board Secretariat shall keeprecords/minutes of all Board proceedings, duly noted by the members of the Board.Section 6. Non-applicability of Technical Rules. The Board shall not be boundstrictly by technical rules of evidence and procedures.Section 7. Prohibition Against Injunction. No preliminary or permanent injunctionor temporary restraining order may be issued by any court, tribunal or any otherentity against any proceeding before the Commission or Board.RULE IV WAGE ORDER

Section 1. Issuance of Wage Order. Within thirty (30) days after conclusion of thelast hearing, the Board shall decide on the merits of the petition, and whereappropriate, issue a wage order establishing the regional minimum wage rates to be

paid by employers which shall in no case be lower than the applicable statutoryminimum wage rates. The Wage Order may include wages by industry, province orlocality as may be deemed necessary by the Board, provided, however, that suchwage rates shall not be lower than the regional minimum wage rates.The Board shall furnish the Commission a copy of the decision on the petition or theWage Order.Section 2. Contents of Wage Order. A Wage Order shall specify the region,province, or industry to which the minimum wage rates prescribed under the Ordershall apply and provide exemptions, if any, subject to guidelines issued by theCommission.Section 3. Frequency of Wage Order. Any Wage Order issued by the Board maynot be disturbed for a period of twelve (12) months from its effectivity, and nopetition for wage increase shall be entertained within the said period. In the event,however, that supervening conditions, such as extraordinary increase in prices ofpetroleum products and basic goods/services, demand a review of the minimumwage rates as determined by the Board and confirmed by the Commission, the Boardshall proceed to exercise its wage fixing function even before the expiration of thesaid period.Section 4. Review of Wage Order. The Commission shall review the Wage Orderissued by the Board prior to publication.


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Section 2. Votes Required. Any decision of the Commission or Board shall requirethe affirmative vote of not less than four (4) of its members.RULE VII WAGE DISTORTIONSection 1. Correction of Wage Distortion. Where the application of any prescribedwage increase by virtue of a Wage Order issued by the Board results in distortions of

the wage structure within an establishment, the employer and the union shallnegotiate to correct the distortions. Any dispute arising from wage distortions shallbe resolved through the grievance procedure under their collective bargainingagreement and, if it remains unresolved, through voluntary arbitration. Unlessotherwise agreed by the parties in writing, such dispute shall be decided by thevoluntary arbitrator or panel of voluntary arbitrators within ten (10) days from thetime said dispute was referred to voluntary arbitration.In cases where there are no collective agreements or recognized labor unions, theemployers and workers shall endeavor to correct such distortions. Any disputearising therefrom shall be settled through the National Conciliation and MediationBoard and, if it remains unresolved after ten (10) days of conciliation, shall bereferred to the appropriate branch of the National labor Relations Commission(NLRC). It shall be mandatory for the NLRC to conduct continuous hearings anddecide the dispute within twenty (20) days from the time said dispute is submittedfor compulsory arbitration. The pendency of a dispute arising from a wage distortionshall not in any way delay the applicability of any increase in prescribed wage ratespursuant to the provisions of the Wage Order.RULE VIII EXEMPTIONSSection 1. Application for Exemption. Whenever a Wage Order provides forexemption, applications for exemption shall be filed with the appropriate Board whichshall process these applications, subject to guidelines issued by the Commission.RULE IX ENFORCEMENT

Section 1. Enforcement of Wage Orders. Compliance with the Wage Orders issuedby the Board shall be enforced by the appropriate Regional Office of the Departmentof Labor and Employment in accordance with enforcement procedures under Articles

128 and 129 of the Labor Code as amended.RULE X DISPOSITION OF PENDING MATTERSSection 1. Disposition of Pending Matters. The Commission/ Board shall exert allefforts to dispose of all matters pending before it within the shortest possible time.RULE XI OFFICIAL RECORDS

Section 1. Commission/Board Records. All official records of theCommission/Board may be made available to interested parties, upon request,except those considered confidential and which cannot be divulged without violatinga private right or prejudicing the public interest.Section 2. Custody of Records and Other Documents. The Executive Director ofthe Commission Secretariat and the Head of the Board Secretariat shall beresponsible for the safekeeping of all official records of the Commission and Board,respectively.RULE XII REPEAL AND SEPARABILITY

Section 1. Repeal and Separability. All existing rules, regulations or orders or anypart thereof inconsistent with this Amended Rules are hereby, repealed, amended ormodified accordingly. If any part or provision of this Amended Rules is declaredunconstitutional or illegal, the other parts or provisions shall remain valid.


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Republic of the Philippines Department of Labor and Employment National

Wages and Productivity CommissionNWPC GUIDELINES NO. _02 Series of 2007AMENDED RULES ON EXEMPTION FROM COMPLIANCE WITH THE

PRESCRIBED WAGE INCREASES/ COST OF LIVING ALLOWANCES GRANTEDBY THE REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARDSPursuant to Section 3, Article 121 b of RA 6727 and Section 1, Rule VIII of theamended Rules of Procedure on Minimum Wage Fixing, the following rules onexemption are hereby issued for strict compliance by all concerned:SECTION 1. DEFINITION OF TERMSA. Commission - refers to the National Wages and Productivity Commission.B. Board - refers to the Regional Tripartite Wages and Productivity Board.C. Wage Order - refers to the Wage Order promulgated by the Board pursuant to itswage-fixing authority.D. Establishment - refers to an economic unit which engages in one or predominantlyone kind of economic activity at a single fixed location. For purposes of determining

eligibility for exemption, establishments under the same owner/s but separatelyregistered with the Securities and Exchange Commission (SEC), Department of Tradeand Industry (DTI) or Cooperative Development Authority (CDA) as the case may be,irrespective of their location, shall be treated as individual and distinctestablishments.E. Retail Establishment - refers to an entity principally engaged in the sale of goodsto end users for personal or household use. A retail establishment that regularlyengages in wholesale activities loses its retail character. For purposes of thisGuidelines, retail establishments must be regularly employing not more than 10workers.F. Service Establishmentrefers to an entity principally engaged in the sale ofservices to individuals for their own or household use and is generally recognized assuch. For purposes of this Guidelines, service establishments must be regularly

employing not more than 10 workers.G. Distressed Establishment - refers to an establishment which meets the criteriaenumerated in Section 3 A of this Guidelines.H. Paid-up capital - refers to the total amount of shareholder capital that has beenpaid by shareholders.I. Capital - refers to paid-up capital at the end of the last full accounting period, inthe case of corporations or total invested capital at the beginning of the period underreview, in the case of partnerships and single proprietorships.J. Capital Impairment refers to the diminution of capital due to accumulated losses.K. Stockholders Equity refers to the residual interest in the assets of an entity thatremains after deducting its liabilities. It is total assets minus total liabilities. It is thesame as equity and net worth.

L. Full Accounting Period - refers to a period of twelve (12) months or one year ofbusiness operations.M. Interim Period - refers to a financial reporting period shorter than a full financialyear (most typically a quarter or half-year).N. Deficit - refers to the negative balance of the retained earnings account of acorporation. Retained earnings represent the cumulative balance of periodicearnings, dividend distributions, prior period adjustments and other capitaladjustments.


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O. Total Assets - refers to things of value owned by the business such as cash,machines, building and land which can be measured or expressed in money terms.P. Net loss refers to actual loss suffered by a company including overhead andinterest charges deducted.Q. Financial Statement - refers to a written report which quantitatively describes the

financial health of a company. This includes the following: balance sheet, incomestatement, statement of changes in equity, cash flow statement and notes tofinancial statement.R. Stock Corporation - refers to one organized for profit and issues shares of stock toits membersS. Non-stock Non-profit Organization - refers to one organized principally for publicpurposes such as charitable, educational, cultural or similar purposes and does notissue shares of stock to its members.T. Partnership - refers to an association of two or more persons who bind themselvesto contribute money, property or industry to a common fund with the intention ofdividing the profits among themselves or for the exercise of a profession.U. Single Proprietorship - refers to a business unit owned and controlled by only oneperson.V. Cooperative - refers to a duly registered association pursuant to R.A. 6938(Cooperative Code of the Philippines) and other laws.W. New Business Enterprises - refers to establishments, including non-profitinstitutions, established within two (2) years from effectivity of the Wage Orderbased on the latest registration with the appropriate government agency such asSEC, DTI, CDA and Mayor's Office.X. Quasi-banks - refers to institutions such as investment houses and financingcompanies performing quasi-banking functions as defined by the Bangko Sentral ngPilipinas.Y. Conservatorship - refers to a remedy resorted to by the monetary board in case abank or quasi-bank is in a state of continuing inability or unwillingness to maintaincondition of liquidity deemed adequate to protect the interests of the depositors and

creditors. A conservator is appointed to manage the establishment in order to restoreits viability.Z. Receivership/liquidation refers to a remedy resorted by the Monetary Board incase a bank or quasi-bank is (a) unable to pay its liabilities as they become due inthe ordinary course of business; (b) has insufficient realizable assets as determinedby the Bangko Sentral ng Pilipinas to meet its liabilities; (c) cannot continue inbusiness without involving probable losses to its depositors or creditors; or (d) haswillfully violated a cease and desist order under Sec. 37 that has become finalinvolving acts or transactions which amount to fraud or dissipation of the assets ofthe institution.AA. Under Corporate Rehabilitation refers to establishments that are placed undera rehabilitation receiver by a court of competent jurisdiction.SECTION 2. CATEGORIES OF EXEMPTIBLE ESTABLISHMENTS

Exemption of establishments from compliance with wage increases and cost of livingallowances prescribed by the Boards may be granted in order to (1) assistestablishments experiencing temporary difficulties due to losses maintain thefinancial viability of their businesses and continued employment of their workers; (2)encourage the establishment of new businesses and the creation of more jobs,particularly in areas outside the National Capital Region and Export ProcessingZones, in line with the policy on industry dispersal and (3) ease the burden of microestablishments, particularly in the retail and service sector, that have a limitedcapacity to pay.Pursuant to the above, the following categories of establishments


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may be exempted upon application with and as determined by the Board, inaccordance with applicable criteria on exemption as provided in this Guidelines;provided further that such categories are expressly specified in the Order.1. Distressed establishments2. New business enterprises (NBEs)

3. Retail/Service establishments employing not more than ten (10) workers4. Establishments adversely affected by natural calamitiesAny Board may seek the inclusion of other exemptible categories outside of theabovementioned list, subject to the (a) submission of a strong justification for theproposed category; and (b) prior review and approval of the Commission.SECTION 3. CRITERIA FOR EXEMPTION

The following criteria shall be used to determine whether the applicant-establishmentis qualified for exemption:A. Distressed Establishments1. For Corporations/ Cooperativesa. Full Exemptiona.1. When the deficit, as defined in Section I (N), as of the last full accounting periodimmediately preceding the effectivity of the Order amounts to 20% or more of thepaid-up capital for the same period; ora.2. When an establishment registers capital deficiency i.e., negative stockholders'equity, as of the last full accounting period immediately preceding the effectivity ofthe Order.b. Partial Exemptionb.1. When the deficit, as defined in Section I (N), as of the last full accounting periodimmediately preceding the effectivity of the Order amounts to at least 10% but lessthan 20% of the paid-up capital for the same period.c. Conditional Exemptionc.1. When the actual net loss as of the interim period immediately preceding theeffectivity of the Order amounts to at least 25% of total assets.2. For Single Proprietorships/Partnerships

a. Full Exemption:a.1. When the accumulated net losses for the last two (2) full accounting periodsimmediately preceding the effectivity of the Order amounts to 20% or more of thetotal invested capital at the beginning of the period under review; ora.2. When an establishment registers capital deficiency i.e., negative net worth as ofthe last full accounting period immediately preceding the effectivity of the Order.b. Partial Exemption:b.1. When the accumulated net losses for the last two (2) full accounting periodsimmediately preceding the effectivity of the Order amounts to at least 10% but lessthan 20% of the total invested capital at the beginning of the period under review.c. Conditional Exemptionc.1. When the actual net loss as of the interim period immediately preceding theeffectivity of the Order amounts to at least 25% of total assets.3. For Non-stock, Non-profit Organizationsa. Full Exemption:a.1. When the accumulated net losses for the last two (2) full accounting periodsimmediately preceding the effectivity of the Order amounts to 20% or more of thefund balance/members' contribution at the beginning of the period; ora.2. When an establishment registers capital deficiency i.e., negative fundbalance/members' contribution as of the last full accounting period or interim period,if any, immediately preceding the effectivity of the Order.b. Partial Exemption:


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b.1. When the accumulated net losses for the last two (2) full accounting periodsimmediately preceding the effectivity of the Order amounts to at least 10% but notmore than 20% of the fund balance/members' contribution at the beginning of theperiod.c. Conditional Exemption:

c.1. When the actual net loss as of the interim period immediately preceding theeffectivity of the Order amounts to at least 25% of total assets.4. For Banks and Quasi-banksa. Under receivership/liquidationExemption may be granted to a bank or quasi-bank under receivership or liquidationwhen there is a certification from the Bangko Sentral ng Pilipinas that it is underreceivership or liquidation as provided in Section 30 of RA 7653, otherwise known asthe New Central Bank Act.b. Under controllership/conservatorshipA bank or quasi-bank under controllership/ conservatorship may apply for exemptionas a distressed establishment under Section 3 A of this Guidelines.5. Establishments Under Corporate RehabilitationExemption may be granted to corporations, partnerships and associations undercorporate rehabilitation when there is an order from a court of competent jurisdictionthat it is under rehabilitation as provided in Section 6 Rule IV of the Interim Rules ofProcedure on Corporate Rehabilitation (2000).B. New Business EnterprisesExemption may be granted to New Business Enterprises located outside the NationalCapital Region (NCR) and Export Processing Zones and established within two (2)years from effectivity of the Order, classified under any of the following:1. Agricultural establishments whether plantation or non-plantation.2. Establishments with total assets after financing of five million pesos(P5,000,000.00) and below.C. Retail/Service Establishments Regularly Employing Not More Than Ten (10)Workers

Exemption may be granted to a retail/service establishment when:1. It is engaged in the retail sale of goods and/or services to end users for personalor household use.2. It is regularly employing not more than ten (10) workers regardless of status,except the owner/s, for at least six (6) months in any calendar year.D. Establishments Adversely Affected by Natural Calamities1. The establishment must be located in an area declared by a competent authorityas under a state of calamity.2. The natural calamities, such as earthquakes, lahar flow, typhoons, volcaniceruptions, fire, floods and similar occurrences, must have occurred within 6 monthsprior to the effectivity of the Order.3. Losses suffered by the establishment as a result of the calamity that exceed theinsurance coverage should amount to 20% or more of the stockholders' equity as ofthe last full accounting period in the case of corporations and cooperatives, totalinvested capital in the case of partnerships and single proprietorships and fundbalance/members' contribution in the case of non-stock non-profit organizations.Only losses or damage to properties directly


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resulting from the calamity and not incurred as a result of normal businessoperations shall be considered.4. Where necessary, the Board or its duly-authorized representative shall conduct anocular inspection of the establishment or engage the services of experts to validatethe extent of damages suffered.

SECTION 4. DOCUMENTS REQUIRED.The following supporting documents shall be submitted together with the application:For All Categories of ExemptionProof of notice of filing of the application to the President of the union/contractingparty if one is organized in the establishment, or if there is no union, a copy of acircular giving general notice of the filing of the application to all the workers in theestablishment. The proof of notice, which may be translated in the vernacular, shallstate that the workers' representative was furnished a copy of the application with allthe supporting documents. The notice shall be posted in a conspicuous place in theestablishment.A. For Distressed Establishments1. For corporations, cooperatives, single proprietorships, partnerships, non-stock,non-profit organizations.a. Full or Partial Exemptiona. 1. Audited financial statements (together with the Auditor's opinion and the notesthereto) for the last (2) full accounting periods preceding the effectivity of the Orderfiled with and stamped "received" by the appropriate government agency.b. Conditional Exemptionb.1. Audited financial statement (together with the Auditor's opinion and the notesthereto) for the last full accounting period and interim quarterly financial statement/sfor the period immediately preceding the effectivity of the Order.b.2. To confirm the grant of conditional exemption, audited financial statements forthe last full accounting period, stamped received by the appropriate governmentagency, to be submitted within 30 days from the lapse of the one-year exemptionperiod.

2. For Banks and Quasi-banksCertification from Bangko Sentral ng Pilipinas that it is under receivership/liquidation.3. For Establishments Under Corporate RehabilitationOrder from a court of competent jurisdiction that the establishment is underrehabilitation.B. For New Business Enterprises1. Affidavit from employer regarding the following:a. Principal economic activityb. Date of registration with appropriate government agencyc. Amount of total assets2. Certificate of registration from the appropriate government agency.C. For Retail/Service Establishments Employing Not More Than Ten (10) Workers:1. Affidavit from employer stating the following:a. It is a retail/service establishment.b. It is regularly employing not more than ten (10) workers for at least six months inany calendar year.2. Business Permit for the current year from the appropriate government agency.D. For Establishments Adversely Affected by Natural Calamities1. Affidavit from the General Manager or Chief Executive Officer of the establishmentregarding the following:a. Date and type of calamity


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b. Amount of losses/damages suffered as a direct result of the calamityc. List of properties damaged/lost together with estimated valuationd. For properties that are not insured, a statement that the same are not covered byinsurance.2. Copies of insurance policy contracts covering the properties damaged, if any.

3. Adjusters report for insured properties.4. Audited financial statements for the last full accounting period preceding theeffectivity of the Order stamped received by the appropriate government agency.TheBoard may require the submission of other pertinent documents to support theapplication for exemption.SECTION 5. EXTENT AND DURATION OF EXEMPTION

A. Full Exemption of one (1) year from effectivity of the Order shall be granted to allcategories of establishments that meet the applicable criteria for exemption underSection 3 A of this Guidelines.B. Partial exemption of 50% from effectivity of the Order with respect to the amountor period of exemption shall be granted only in the case of distressed establishmentsunder Section 3 A of this Guidelines.C. Conditional exemption of one (1) year from effectivity of the Order shall begranted only in the case of distressed establishments under Section 3 A of thisGuidelines. The conditional exemption shall be confirmed, as follows:c.1. For CorporationsWhen deficit as defined in Section I (N), as of the last full accounting period amountsto 20% or more of the paid-up capital for the same period;c.2. For Single Proprietorships And PartnershipsWhen net loss for the last two (2) full accounting periods immediately preceding theeffectivity of the Order amounts to 20% or more of the total invested capital at thebeginning of the period under review;c.3. For Non-Stock, Non-Profit OrganizationsWhen net loss for the last two (2) full accounting periods immediately preceding theeffectivity of the Order amounts to 20% or more of the fund balance/members'

contribution at the beginning of the period.In the absence of such actual losses, the company shall pay its workers the wageincreases due them under the Order, retroactive to the effectivity of the Order.SECTION 6. ADOPTION OF PRODUCTIVITY IMPROVEMENT PROGRAMS

Establishments granted exemption are required to adopt productivity improvementinitiatives or schemes to improve business viability. The Commission and the Boardsshall provide technical assistance in the development of a productivity improvementprogram in the company.SECTION 7. ACTION ON APPLICATION FOR EXEMPTIONUpon receipt of an application with complete documents, the Board shall take thefollowing steps:a. Notify the DOLE Regional Office having jurisdiction over the workplace of thependency of the application requesting that action on any complaint for non-compliance with the Order be deferred pending resolution of the application by theBoard.b. Request the DOLE Regional Office to conduct ocular inspection, if necessary, ofestablishments applying for exemption to verify number of workers, nature ofbusiness and other relevant information.c. Act and decide on the application for exemption with complete documents, asmuch as practicable, within 45 days from the date of filing. In case of contestedapplication, the Board may conduct conciliation or call hearings thereon.


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d. Transmit the decision of the Board to the applicant establishment, the workers orpresident of the union, if any, and the Commission, for their information; and theDOLE Regional Office concerned, for their implementation/enforcement. The Boardmay create a Special Committee with one representative from each sector toexpedite processing of applications for exemption.

SECTION 8. APPLICATION FOR PROJECTS/BRANCHES/DIVISIONSWhere the exemption being sought is for a particular project/branch/division notseparately registered and licensed, the consolidated audited financial statements ofthe establishment shall be used as basis for determining its distressed condition.SECTION 9. DISTRESSED PRINCIPAL

Exemption granted to a distressed principal shall not extend to its contractor in caseof contract (s) for construction, security, janitorial and/or similar services withrespect to the employees of the latter assigned to the former.SECTION 10. PROCEDURES ON EXEMPTION

A. For Filing of Application1. An application, in three (3) legible copies may be filed with the appropriate Boardby the owner/manager or duly authorized representative of an establishment, inperson or by registered mail.The date of mailing shall be deemed as the date of filing.Applications for exemption filed with the DOLE regional, district or provincial officesare considered filed with the appropriate Board in the region.2. Applications for all categories shall be filed not later than 75 days from publicationof the approved implementing rules of the Order, provided that all the requireddocuments in support of the application must be filed within the said 75-day filingperiod and that no further extension of filing and submission of required documentsshall be allowed.In the case of NBEs, applications shall be filed not later than sixty (60) days afterdate of registration.3. The application shall be under oath and accompanied by complete supportingdocuments as enumerated under Section 4 of this Guidelines.

B. For Filing of OppositionAny worker or, if unionized, the union in the applicant establishment, may file withthe appropriate Board within fifteen (15) days from receipt of the notice of the filingof the application, an opposition to the application for exemption stating the reasonswhy the same should not be approved, furnishing the applicant a copy thereof. Theopposition shall be in three (3) legible copies, under oath and accompanied bypertinent documents, if any.C. For Filing of Motion for ReconsiderationThe aggrieved party may file with the Board a motion for reconsideration of thedecision on the application for exemption within ten (10) days from its receipt andshall state the particular grounds upon which the motion is based, copy furnished theother party and the DOLE Regional Office concerned.No second motion for reconsideration shall be entertained in any case. The decisionof the Board shall be final and executory unless appealed to the Commission.D. For Filing of Appeal to the Commission1. Appeal - Any party aggrieved by the decision of the Board may file an appeal tothe Commission, through the Board, in two (2) legible copies, not later than ten (10)days from date of receipt of the decision.The appeal, with proof of service to the other party, shall be accompanied with amemorandum of appeal which shall state the date appellant received the decision,the grounds relied upon and the arguments in support thereof.


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