Question & AnswerQ&A (DOLE DEPARTMENT ORDER NO. 126-13)
The title is the Revised Guidelines on the Conduct of Facility Evaluation.
These guidelines govern the procedures and standards for the conduct of Facility Evaluation by the Regional Tripartite Wages and Productivity Boards (RTWPBs) to determine the fair and reasonable value of facilities provided by employers to employees.
Supplements are excluded. Supplements are extra remunerations or special privileges or benefits given over and above ordinary earnings.
Facilities refer to articles or services provided by the employer for the benefit of the employee or his/her family but do not include tools of the trade or articles or services primarily for the benefit of the employer or necessary to the employer's business. They include meals, housing, fuel, transportation (commuting), school and recreation services, medical and dental services for non-industrial cases, and others given primarily for the benefit of the worker or family.
Facility Evaluation refers to an evaluation conducted by the appropriate RTWPB to determine the fair and reasonable value of facilities furnished by the employer to his/her employees.
The application may be filed by the union, worker, owner/manager, or duly authorized representative of micro, small, or medium establishments either personally, by registered mail, or by email.
The application must include a business permit for the current year, list of employees with corresponding wages, job activities with existing wage rates, method of payment of wages, and proof of notice of filing.
The facilities must be customarily furnished by the employer, the deductibility must be voluntarily accepted in writing by the employee, and facilities must be charged at a fair and reasonable value.
Meals must be nutritionally adequate and the employer must subsidize at least 30% of the actual cost to determine the fair and reasonable value for deduction.
The total yearly expenses including 5 to 12% of the depreciated amount plus cost of operation, maintenance, electric, and water bills are deducted from the total cost of expenses incurred in the acquisition or construction of the housing facility, which must be used exclusively for employee living quarters.
It is an order issued by the DOLE Regional Director as Chairperson of the RTWPB authorizing an employer to consider the monetary value of the facilities availed of as part of the wages of employees as per Article 97 (f) of the Labor Code.
Yes, any party aggrieved may appeal within ten (10) days from receipt of the order by filing a verified appeal with the RTWPB specifying grounds.
Grounds include violation of procedures under Rule II, Section 2, or serious error in computing the monetary value of the facility.
No, the filing of an appeal does not operate to stay the order.
The employer must post a copy of the order on a bulletin board or conspicuous place in the establishment and submit a certificate of posting to the RTWPB.
If employees or the union do not wish to avail of the facilities, the employer cannot deduct the value of such facilities from their wages.
Complaints may be filed with the appropriate DOLE Regional Office and are subject to enforcement proceedings under Articles 128 and 129 of the Labor Code.
No, supplements are considered extra remuneration or special benefits beyond ordinary earnings and are excluded from facility evaluation.
The National Wages and Productivity Commission (NWPC) develops the system of assessment and accreditation.