DOLE intervention in output-rate standards

In some appropriate cases, the Department of Labor and Employment (DOLE) may intervene, motu proprio or upon the initiative of any interested party, to establish productivity standards.

Let's take for example the case of workers who are paid by results who are considered "non-time" workers as their compensation is not on the basis of the time spent on their work but according to the quantity, quality or kind of job and the consequent results thereof. This setup is subject to more regulations in order to ensure the payment of fair and reasonable wage rates.

Thus, on petition of any interested party or upon its own initiative, the DOLE shall use all available measures, including the use of time and motion studies and individual/collective bargaining agreement between the employer and its workers as approved by the DOLE Secretary and consultation with representatives of employers’ and workers’ organizations, to determine whether the employees in any industry or enterprise are being compensated in accordance with the minimum wage requirements of the rule on wages.

In the case of homeworkers, at the initiative of the DOLE or upon petition of any interested party, the DOLE Secretary or his authorized representative is mandated to establish the standard output rate or standard minimum rate in appropriate orders for the particular work or processing to be performed by the homeworkers.