AN ACT TO ESTABLISH A MINIMUM WAGE LAW AND FOR OTHER PURPOSES

Case Overview and Summary

Republic Act No. 602: An Act to Establish a Minimum Wage Law

Definitions (Section 2):
- Defines key terms such as 'person', 'employer', 'employee', 'agriculture', 'industry', 'employ', 'wage', 'facilities', 'hired farm labor', and 'farm enterprise'.

Minimum Wage (Section 3):
- Sets minimum wage rates for non-agricultural and agricultural employees, with varying rates based on location, industry, and effective dates.
- Exempts retail or service enterprises with not more than 5 employees (Section 3(a)(2)).
- Excludes farm tenancy and domestic servants (Section 3(d)).
- Provides guidelines for valuing meals and housing as part of wages (Section 3(f)).
- Allows for temporary extensions of minimum wage implementation in certain industries to avoid undue hardship, subject to conditions (Section 3(g)).
- Requires determination of compliance for piece-work or contract work (Section 3(h)).

Wage Investigation and Wage Board (Sections 4 and 5):
- Authorizes the Secretary of Labor to investigate wages and living conditions of employees, and appoint a Wage Board to fix minimum wages if necessary (Section 4(a)).
- Outlines factors to consider in determining minimum wages, including cost of living, collective agreements, reasonable employer standards, and fair return on capital (Section 4(b)).
- Provides for the composition, quorum, and recommendations of the Wage Board (Section 5(a)).
- Requires the Wage Board to consider prevailing wages, local differentiation, and special cases like part-time employment and industrial homeworkers (Section 5(c)).

Wage Orders (Section 6):
- Establishes the process for the Secretary of Labor to approve, reject, or modify the Wage Board's recommendations through public hearings and wage orders.
- Requires wage orders to define the industry, include administrative regulations, and provide notice before taking effect.
- Prohibits employers from paying less than the minimum wage prescribed in the order.

Right of Review (Section 7):
- Allows aggrieved parties to seek review of wage orders in the Supreme Court, limited to questions of law.
- Provides exemptions for employees from filing fees and allows typewritten pleadings.
- Allows for a stay of the order upon filing an undertaking for payment of potential wage differences.

Oaths, Affidavits, and Subpoenas (Section 8):
- Grants the Secretary of Labor and Wage Board the power to administer oaths, take depositions, and require attendance and production of evidence.
- Provides for contempt proceedings for non-compliance with subpoenas.
- Allows for compelling testimony without risk of self-incrimination, except for perjury.

Learners, Apprentices, and Handicapped Workers (Section 9):
- Authorizes the Secretary of Labor to issue regulations and certificates for the employment of learners, apprentices, and individuals with physical or mental impairments at wages below the minimum wage, subject to specified conditions and limitations.

Direct Payment of Wages (Section 10):
- Requires wages to be paid in legal tender, with exceptions for bank checks or money orders (Section 10(a)).
- Mandates direct payment to employees, with exceptions for insurance premiums, force majeure, and union check-offs (Section 10(b)).
- Allows payment of deceased employees' wages to heirs without probate proceedings (Section 10(c)).
- Prohibits interference with employees' freedom to dispose of wages, forced use of employer-operated stores or services, and unauthorized deductions from wages (Sections 10(d), 10(e), and 10(f)).
- Prohibits inducing employees to give up wages through force, intimidation, or discrimination (Section 10(g)).
- Requires wage payments at least once every two weeks or twice a month, with provisions for tasks requiring more time (Section 10(h)).
- Mandates wage payments at or near the place of work, with exceptions (Section 10(i)).
- Holds employers and indirect employers liable for unpaid wages by contractors and subcontractors, with the right to require bonds (Section 10(j)).
- Requires employers to notify employees of wage conditions at hiring and any changes (Section 10(k)).
- Applies the direct payment provisions to all employees subject to minimum wage (Section 10(l)).

Regulations and Orders (Section 11):
- Authorizes the Secretary of Labor to issue regulations and orders necessary to carry out the Act, including defining terms, establishing conditions, and preventing circumvention or evasion.
- Allows for regulations related to industrial homework, including piece rates and public hearings.
- Requires publication and court review of regulations and orders.

Administration and Enforcement (Section 12):
- Creates the Wage Administration Service in the Department of Labor, headed by a Chief.
- Authorizes the Secretary of Labor to appoint necessary employees and utilize existing agencies and voluntary services.
- Allows delegation of powers to the Chief of the Wage Administration Service.
- Requires employers to post abstracts of the law and wage orders, and maintain employee records.
- Grants the Secretary of Labor and authorized representatives access to records and the right to investigate violations.

Discrimination and False Reporting (Sections 13 and 14):
- Prohibits discrimination against employees for filing complaints, testifying, or serving on a Wage Board (Section 13).
- Prohibits making false statements, reports, or records related to the Act (Section 14).

Penalties and Recovery of Wages (Section 15):
- Imposes fines and potential imprisonment for willful violations of the Act (Section 15(a)).
- Holds managers or responsible persons liable for violations by corporations, trusts, partnerships, associations, or government corporations (Section 15(b)).
- Authorizes the Secretary of Labor to supervise payment of unpaid minimum wages (Section 15(c)).
- Allows the Secretary to bring court actions to recover wages owed to employees, with legal interest (Section 15(d)).
- Allows employees to maintain court actions to recover unpaid wages, with provisions for attorney's fees (Section 15(e)).
- Prohibits anyone other than the employee from receiving underpayments or excessive attorney's fees (Section 15(f)).
- Clarifies the commencement date of actions for statute of limitation purposes (Section 15(g)).

Jurisdiction of the Courts (Section 16):
- Grants the Court of First Instance jurisdiction to restrain violations and hear actions to recover underpayments, with a 15-day decision deadline (Section 16(a)).
- Allows the Court of Industrial Relations to hear and decide minimum wage disputes in certain cases (Section 16(b)).
- Provides a process for handling minimum wage disputes involving actual strikes, with the Secretary of Labor attempting conciliation and the Court of Industrial Relations rendering a decision within 15 days (Section 16(c)).

Statute of Limitation (Section 17):
- Establishes a 3-year statute of limitations for commencing actions to enforce the Act.

Protection of the Service (Section 18):
- Requires appointment and service under Civil Service rules for personnel administering and enforcing the Act (Section 18(a)).
- Prohibits conflicts of interest, Communist affiliation, and representation of parties in labor disputes for personnel (Section 18(b)).
- Allows for removal of officials for malfeasance or nonfeasance (Section 18(c)).
- Mandates dismissal and criminal action for accepting bribes (Section 18(d)).

Relations to Other Labor Laws and Practices (Section 19):
- Preserves employees' rights to seek better wages, hours, and conditions, and prohibits employers from violating other labor laws or reducing existing wages and benefits.

Superseding Private Agreements (Section 20):
- Prohibits waiving rights established under the Act through agreements or contracts to accept lower wages or benefits.

Report by the Secretary (Section 21):
- Requires the Secretary of Labor to submit an annual public report to the President and Congress, including recommendations for amendments or further legislation.

Appropriation (Section 22):
- Authorizes an appropriation of 150,000 pesos or as necessary for salaries, expenses, and implementation of the Act, with subsequent fiscal year expenses to be provided in current appropriations.

Repeal of Inconsistent Prior Enactments (Section 23):
- Repeals any previously enacted provisions inconsistent with the Act.

Separability (Section 24):
- Provides for the separability of the Act's provisions if any part is held invalid.

Effective Date (Section 25):
- Sets the effective date of the Act at 120 days after enactment, with immediate effect for personnel appointments and preparations.