Output rates of workers paid by result; effect of determination by DOLE
The employer shall basically prescribe the output rates in work paid by results. He may prescribe it himself or secure first the prior approval of the Department of Labor and Employment (DOLE).
If the output rates are prescribed solely by the employer and the same do not conform with the standards prescribed under the implementing rules, or with the rates prescribed by the DOLE in an appropriate order, the employees are entitled to the difference between the amount which they are entitled to receive under such prescribed standards or rates and that actually paid to them by the employer. In such a case, there would be a claim for salary differentials.
Moreover, if by multiplying the rate per piece as determined by the employer without the approval of the DOLE and the actual output of the worker paid by results, the amount arrived at conforms with or exceeds the statutory minimum wage, then such worker should receive such higher amount. But if after such computation, the amount arrived at is less than the statutory minimum wage, then, the employer should pay the difference in order to assure the worker of the statutory minimum wage.
In the case of Framanlis Farms, Inc. v. Minister of Labor (G.R. No. 72616-17), the High Court ruled that respondent Minister of Labor did not err in requiring the petitioners to pay wage differentials to their "pakyaw" workers who worked for at least eight (8) hours daily and earned less than P8.00 per day.
The same thing may not be said if the output rates are prescribed by the DOLE, in which case, the employer is duty-bound to follow it. Consequently, the wages of workers paid by results under this situation are determined by simply multiplying the number of pieces produced by the rate fixed per piece. Consequently, whether or not the eight-hour normal working hours is exceeded or that the total output is equivalent to, more than or less than the statutory minimum wage, is immaterial. What is material is the actual output or earnings for that particular day.
