Question & AnswerQ&A (DOLE DEPARTMENT ORDER NO. 10)
The order provides guidelines on the imposition of double indemnity for non-compliance with prescribed increases or adjustments in wage rates, ensuring uniform implementation of Republic Act No. 8188.
It applies to any person, corporation, trust, firm, partnership, association, organization, or entity in the capacity of an employer.
Double indemnity refers to the payment by the employer to the concerned employee of the prescribed wage increases or adjustments not paid, in an amount equal to twice the unpaid benefits.
Wage rates are defined as the lowest basic pay payable to workers including cost of living allowances fixed by the Wage Board; excluding other wage-related benefits like overtime pay, bonuses, and holiday pay.
The Regional Director has jurisdiction to acquire cases of violation, conduct inspections, and issue compliance orders directing employers to pay unpaid benefits and double indemnity.
The employer becomes liable to pay double indemnity, which is twice the amount of unpaid benefits due to each affected employee.
The computation starts from the effectivity of the prescribed increases or adjustments as indicated in the wage order.
Yes, no compliance order shall be issued during the pendency of an application for exemption from a wage order duly filed with the appropriate Wage Board.
It is a notice issued by the labor standards enforcement officer detailing violations discovered, unpaid benefits computations, and advising the employer of liability for double indemnity if violations are not corrected within five calendar days.
Under Article 128 (b) of the Labor Code, the Secretary has visitorial and enforcement powers to issue compliance orders and enforce payment of unpaid wage increases and double indemnity.
The legal basis is Republic Act No. 8188 which increases the penalty and imposes double indemnity for violations of prescribed wage increases and amendments to RA 6727, the Wage Rationalization Act.
Unpaid benefits refer to the prescribed wage rates not paid by the employer upon effectivity of the wage order, excluding other wage-related benefits, and forms the principal basis for computing double indemnity.
Double indemnity is computed only on the balance of unpaid benefits starting from the effectivity of the wage order.
The Regional Director shall cause the issuance of a writ of execution to enforce the compliance order.