DOLE Guidelines on Double Indemnity for Wage Violations

"Act": Republic Act No. 8188.
"Department": Department of Labor and Employment.
"Regional Director": Director of the Department's Regional Office.
"Board": Regional Tripartite Wages and Productivity Board.
"Employer": Any entity acting directly or indirectly in the interest of the employer.
"Employee": Any individual employed by an employer.
"Wage rates": The lowest basic pay including cost of living allowances fixed by the Board; excludes overtime, bonuses, night shift differentials, holiday pay, 13th month pay, leave benefits, etc.
"Wage Order": An order issued by the Board under its wage-fixing authority.
"Prescribed increases or adjustments": The mandated wage increases fixed by the Board for effect upon a wage order.
"Violation": Refusal or failure of an employer to pay the prescribed wage increase.
"Unpaid benefits": The prescribed wage increases not paid by the employer, used as the principal basis to compute double indemnity.
"Double Indemnity": Payment equal to twice the amount of unpaid benefits.
"Notice of Inspection Result": Document issued after labor inspection specifying violations, unpaid benefits, and advice on double indemnity liability if uncorrected within five days.
"Compliance Order": Order issued by the Regional Director directing payment of unpaid amounts within ten days after due process.

The Secretary of Labor or Regional Director may issue compliance orders under visitorial and enforcement powers.
For routine inspections, compliance order issued seven days after employer receives notice of inspection result.
For complaint inspections, issuance follows a summary investigation with notice and hearing.
Compliance order must specify amounts due and a payment deadline of ten days, with proof of compliance required.
Final compliance orders are enforceable by writ of execution.
No compliance orders issued while exemption applications to wage orders are pending.

Double indemnity computation starts from the effectivity date of the prescribed wage increase.
Based solely on unpaid benefits excluding other wage-related benefits.
Partial compliance results in computation based on the balance of unpaid benefits from the wage order's effectivity.

Any inconsistent rules, regulations, or issuances are superseded or modified by these Guidelines.

If any part of the Guidelines is found void or unconstitutional, the remaining provisions stay valid and effective.

The Guidelines take effect fifteen days after full publication in a newspaper of general circulation.