Republic of the Philippines
Congress of the Philippines
First Special Session
Begun and held in Metro
Manila on Friday the seventh day of June
nineteen hundred and ninety-six.
REPUBLIC ACT No. 8188
AN ACT INCREASING THE PENALTY
AND IMPOSING DOUBLE INDEMNITY FOR VIOLATION OF THE PRESCRIBED
INCREASES OR ADJUSTMENTS IN THE WAGE RATES. AMENDING FOR THE
PURPOSE SECTION TWELVE OF REPUBLIC ACT NUMBERED SIXTY-SEVEN HUNDRED
TWENTY-SEVEN. OTHERWISE KNOWN AS THE WAGE RATIONALIZATION ACT.
Be it enacted by the Senate
and House of Representatives of the
Philippines in the
Congress assembled :
SECTION 1. Section 12 of Republic Act Numbered Sixty-seven hundred twenty-
seven is hereby amended to read to as follows:
Any person. corporation. trust. firm. parmersnip. association
or entity which refuses or fails to pay any of the prescribed
increases or adjustments in the wage rales made in accordance
with this Act shall be punished by a fine not less than Twenty-five
thousand pesos (P25.000) nor more than One hundred thousand pesos
(P100.000) or imprisonment of not less than two (2) years nor
more than four (4) years or both such fine and imprisonment at
the discretion of the court:
Provided. That any person convicted under this Act shall
not be entitled to the benefits provided for under the Probation
concerned shall be ordered to pay an arnount equivalent to double
the unpaid benefits owing to the employees: Provided. That payment of indemnity shall not absolve the employer from
the criminal liability imposable under this Act.
the violation is committed by a corporation. trust or firm. partnership,
association or any other entity, the penalty of imprisonment
shall be imposed upon the entity's responsible officers including
but not limited to the president, vicepresident, chief executive
officer, general manager, managing director or partner.
SECTION 2. All
laws, presidential decrees, executive orders, rules and
regulations or parts thereof inconsistent with the provisions
of this Act are hereby repealed or modified accordingly.
This Act shall take effect fifteen (15) days after its complete
publication in a newspaper of general circulation.
JOSE DE VENENCIA
Speaker of the House of Representative
President of the Senate
This Act, which is a consolidation of Senate Bill
No. 407 and House Bill No. 5808 was finally passed by the Senate
and the House of Representatives on June 7, 1996.
CAMILO L. SABIO
House of Reprentatives
HEZEL P. GACUTAN
Secretary of the Senate
Approved: June 11,1996
FIDEL V RAMOS
President of the Philippines
Republic of the Philippines
DEPARTMENT OF LABOR AND EMPLOYMENT
DEPARTMENT ORDER NO.
Series of 1998
Guidelines on the imposition of Double
For Non-Compliance with the Prescribed Increases or Adjustments
In Wage Rates
to the rule-making authority of the Secretary of Labor and Employment
under Article 5 of the Labor Code, as amended, and Section 13
of the Republic Act No. 6727, and to ensure uniformity in the
implementation of the provisions of Republic Act No. 8188 entitled
"An Act Increasing the Penalty and Imposing Double Indemnity
for Violation of the Prescribed Increases or Adjustments in the
Wage Rates, amending for the Purpose Section Twelve of Republic
Act Numbered Sixty-Seven Hundred Twenty Seven. Otherwise known
as Wage Rationalization Act". This Guidelines is hereby
promulgated for the guidelines of and compliance by all concerned.
Coverage - This Guidelines shall apply to any person, corporation,
trust, firm, partnership, association, organization, or entity
in the capacity of an employer.
SECTION 2. Definition of Terms - As used in this
Guidelines, the following terms shall mean:
"Act" refers to Republic Act No. 8188.
"Department" refers to the Department of
Labor and Employment.
"Regional Director" refers to the Director
of the Regional Office of the Department.
"Board" refers to the Regional Tripartite
Wages and Productivity Board.
refers to any person, corporation, trust, firm, partnership association
or entity acting directly or indirectly in the interest of the employer in relation to an employee.
"Employee" refers to any individual employed
by an employer.
"Wage Rates" refers to the lowest basic pay
that the employer can pay his workers
including cost of living allowances as fixed by the Board, but
excludes other wage-related benefits such as overtime pay, bonuses,
night shift differential pay, holiday pay, premium pay, 13th
month pay, premium pay, leave benefits,
"Wage Order " refers to the order promulgated
by the board pursuant to its wage
"Prescribed increases or Adjustments" refer
to the amount of increase or adjustment in
the wage rate of workers fixed by the Board which the Employer
is mandated to pay upon effectivity of a wage order
"Violation" refers to the refusal or failure
to pay an employee of the prescribed increases
or adjustments as may be established by the Regional
"Unpaid Benefits" refer to the prescribed
wage rates which the employer failed
to pay upon the effectivity of a wage order exclusive of other
wage-related benefits. "Unpaid benefits"
as herein understood shall be the principal
basis for computing the double indemnity.
"Double Indemnity" refers to the payment
to a concerned employee of the
prescribed increases or adjustments in the wage rates, which
was not paid by an employer in amount
equivalent to twice the unpaid benefits owing
to such employee.
"Notice of Inspection Result" refers to the
inspection form duly accomplished
and issued by the labor standards enforcement officer to
the employer or his representative after the completion of the inspection. The notice shall
specify the violations discovered, if any, together
with the officers recommendation and computation of the unpaid
benefits due each worker with an advice that the employer shall
be liable for double indemnity in case of refusal or failure
to correct the violation
within five (5) calendar days from receipt of notice.
"Compliance order" refers to the order issued
by the regional director, after due notice
and hearing conducted by himself or a duly authorized hearing
officer finding that a violation has been committed and directing
the employer to pay the amount due each
worker within ten (10) calendar
days from receipt thereof.
Issuance of a Compliance Order. In cases where the Secretary
of Labor and Employment of the Regional Director has acquired
jurisdiction over a violation as defined herein pursuant to the
visitorial and enforcement powers vested upon him by Article
128 (b) of the Labor Code as amended, he shall have the power
to issue a compliance order to give effect to the provisions
of the Act. Such order shall be subject to the following principles.
of routine inspection where the violation has been established
after due notice and hearing where appropriate
the Regional Director shall, after (7)
calendar days from the employer's receipt of the notice of inspection
result, issue a compliance order.
Ion case of complaint inspection, the Regional Director
shall call for summary investigation
and after due notice and hearing shall, where appropriate
issue a compliance order.
The compliance order shall directly the employer to
pay the amount due each worker within
ten (10) days from receipt thereof and to submit proof
of compliance. The order shall specify the amount due each worker
and shall include the computation on which the order was based.
Upon the finality of the compliance order, the Regional
Director shall cause the issuance of
a writ of execution for its enforcement.
No compliance order shall be issued during the pendency of
an application for exemption from a wage
order duly filed with the appropriate
SECTION 4. Double Indemnity, when to Start Period
computation for double indemnity as herein defined shall start
from the effectivity of the prescribed
increases or adjustments as indicated in
the wage order.
- The basis for the computation of double indemnity shall
be limited to the unpaid benefits
as defined herein.
- Where there is partial compliance with the prescribed
increase or adjustment the basis for
computing double indemnity shall be the balance
of unpaid benefits reckoned from the effectivity of the wage order.
Supersession Clause - All rules, regulations, issuances, or parts
thereof which are consistent with this guidelines are deemed
superseded or modified accordingly.
SECTION 6. Separability Clause - If any provision or portion of this guidelines
is declared void or unconstitutional, the remaining portions
or provisions hereof shall continue to be valid and effective.
SECTION 7. Effectivity - This Guidelines shall take effect fifteen (15)
days after after its complete publication in at least one (1)
newspaper of general circulation.
04 May 1998
CRESENCIANO B. TRAJANO