Minimum Wage Exemption

For exemptions based on the nature or circumstance of the employer’s

business, the rules issued by the National Wages and Productivity
Commission (NWPC) expressly states the following categories of employers
who may be exempted from payment of minimum wages:

(1) Distressed establishments;

(2) New business enterprises (NBEs);
(3) Retail/Service establishments employing not more than ten (10)
workers; and
(4) Establishments adversely affected by natural calamities.
(Section 2, NWPC Guidelines No. 2, s. 2007)

For exemption as an NBE, the application must also be supported by

an affidavit from the employer stating the principal economic activity, date of
registration with appropriate government agency and amount of total assets,
and certificate of registration from the appropriate government agency.

On the other hand, for exemption as an establishment with not more

than ten (10) workers, the application must be supported by an affidavit from
the employer stating that it is a retail/service establishment regularly
employing not more than ten (10) workers for at least six (6) months in any
calendar year, and business permit for the current year from the appropriate
government agency (Section 4, NWPC Guidelines No. 2, s. 2007).

For retail/service establishments regularly employing not more than ten

(10) workers, an exemption may be granted under the following conditions:
(1) it is engaged in the retail sale of goods and/or services to end users for
personal or 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 (Sec. 3 (C), NWPC Guidelines No. 2, s. 2007).

Jurisdiction: Labor Arbiter has jurisdiction

RULE V PROCEEDINGS BEFORE LABOR ARBITERS

(2011 NLRC Rules of Procedure)

SECTION 1. JURISDICTION OF LABOR ARBITERS. - Labor Arbiters shall

have original and exclusive jurisdiction to hear and decide the following
cases involving all workers, whether agricultural or non-agricultural: a)
Unfair labor practice cases;
 b) Termination disputes;

c) If accompanied with a claim for reinstatement, those cases that

workers may file involving wages, rates of pay, hours of work and other terms
and conditions of employment;

d) Claims for actual, moral, exemplary and other forms of damages

arising from employer-employee relations;

e) Cases arising from any violation of Article 264 of the Labor Code,
as amended, including questions involving the legality of strikes and
lockouts;

f)Except claims for employees compensation not included in the

next succeeding paragraph, social security, medicare, and maternity
benefits, all other claims arising from employer-employee relations,
including those of persons in domestic or household service, involving
an amount exceeding Five Thousand Pesos (P5,000.00), whether or not
accompanied with a claim for reinstatement;

g) Wage distortion disputes in unorganized establishments not

voluntarily settled by the parties pursuant to Republic Act No. 6727;

h) Enforcement of compromise agreements when there is non-

compliance by any of the parties pursuant to Article 227 of the Labor Code,
as amended;

i) Money claims arising out of employer-employee relationship or by

virtue of any law or contract, involving Filipino workers for overseas
deployment, including claims for actual, moral, exemplary and other forms of
damages as provided by Section 10 of RA 8042, as amended by RA 10022;
and

j) Other cases as may be provided by law.

Jurisdiction: Regional Director (DOLE) has no Jurisdiction

Art. 129 of Labor Code. RECOVERY OF WAGES, SIMPLE MONEY

CLAIMS AND OTHER BENEFITS – Upon complaint of any interested party,
the regional director of the Department of Labor and Employment or any of
the duly authorized hearing officers of the Department is empowered through
summary proceeding and after due notice, to hear and decide any matter
involving the recovery of wages and other monetary claims and benefits,
including legal interest, owing to an employee or person employed in
domestic or household service or househelper under this Code, arising from
employer-employee relations: Provided, That such complaint does not
include a claim for reinstatement; Provided further, That the aggregate
money claim of each employee or househelper does not exceed Five
Thousand Pesos (P5,000.00). xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Holiday Pay

Article 94, Labor Code – Every worker shall be paid his regular daily wage
during regular holidays, except in retail and service establishments
regularly employing less than ten (10) workers.