Penalty for Wage Increase Violations

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Republic Act No. 8188: Penalty for Wage Increase Violations

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Title Supreme Court: Penalty for Wage Increase Violations

Law: Republic Act No. 8188

Decision Date: Jun 11, 1996

Republic Act No. 8188 increases penalties and imposes double indemnity for the violation of prescribed wage rates, punishing individuals and entities with fines, imprisonment, and orders to pay double the unpaid benefits owed to employees.

prescribed wage rates

A

Penalties for Non-Payment of Prescribed Wage Increases

Any person or entity failing to pay prescribed wage increases shall face:
- A fine of not less than ₱25,000 and not more than ₱100,000; or
- Imprisonment from 2 to 4 years; or
- Both fines and imprisonment at the court's discretion.
Convicts are disqualified from probation benefits.

Double Indemnity for Unpaid Benefits

Employers must pay employees double the amount of unpaid wage benefits.
Payment of indemnity does not absolve the employer from criminal liability.

Liability of Corporate Officers

If the offender is a corporation, trust, partnership, or similar entity, imprisonment penalties apply to responsible officers such as president, vice-president, CEO, general manager, managing director, or partner.

Repeal and Modification of Inconsistent Laws

All conflicting laws, presidential decrees, executive orders, rules, and regulations are repealed or modified to conform with this Act.

Effectivity

The Act takes effect 15 days after publication in a newspaper of general circulation.

END