Title
Revised Guidelines on Time and Motion Study
Law
Dole Department Order No. 125-13
Decision Date
Apr 1, 2013
DOLE Department Order No. 125-13 establishes revised guidelines for conducting Time and Motion Studies to enhance work improvement and productivity standards for micro, small, and medium enterprises, ensuring compliance with labor regulations and facilitating fair wage determination.
time study
motion study
labor code

Legal basis and construction rule

  • The Guidelines are issued pursuant to Administrative Order No. 357, Series of 2010, the DOLE Rationalization Plan, and Executive Order No. 366.
  • The Guidelines are also issued under Article 121 (b) in relation to Article 101 of the Labor Code of the Philippines, as amended by Republic Act No. 6727.
  • The Guidelines must be liberally construed to carry out the objectives of Administrative Order No. 357, Series of 2010, the DOLE Rationalization Plan, Executive Order No. 366, and Articles 101 and 121 (b) of the Labor Code of the Philippines, as amended by Republic Act No. 6727.

Covered workers, workplaces, and scope

  • The Guidelines govern the conduct of Time and Motion Study by the Regional Tripartite Wages and Productivity Boards (RTWPBs).
  • The Guidelines cover workers of micro, small and medium enterprises who are paid by result, including pakyao, piecework, and other non-time work pursuant to Article 101 of the Labor Code.
  • The Guidelines exclude enterprises where no employer-employee relationship exists.
  • Daily rate workers may be covered only for purposes of setting standards for work improvement and productivity.
  • The study concerns work performed for a fee in covered establishments.

Core definitions established

  • “Basic time” means the normal time taken to do a job, established by work study.
  • “DOLE-RO” means the Department of Labor and Employment- Regional Office.
  • “Element” means a distinct part of a specified job selected for convenience of observation, measurement, and analysis.
  • “Employee” refers to any individual employed by an employer.
  • “Employer” refers to any person acting directly or indirectly in the interest of an employer in relation to an employee.
  • “Establishment” refers to micro, small and medium business entities engaged in any economic activity whose workers are paid by result, including pakwaw, piece work, commission, or other non-time work.
  • “Micro, small, and medium enterprises (MSMEs)” are business activities/enterprises in industry, agri-business/services that qualify by total assets or by number of employees, with categories including:
    • By asset size: Micro—Up to PHP 3,000,000; Small—PHP 3,000,001 to PHP 15,000,000; Medium—PHP 15,000,001 to PHP 100,000,000; Large—above PHP 100,000,000.
    • Alternatively by employees: Micro—1 to 9 employees; Small—10 to 99 employees; Medium—100 to 199 employees; Large—More than 200 employees.
  • “NWPC” means the National Wages and Productivity Commission.
  • “Normal Time” means the average time it takes an average worker to perform the element in an ideal condition.
  • “Order” means Piece Rate Order or Production Standard Order issued by the DOLE Regional Director, in the capacity as DOLE Chairperson, based on the recommendation of the Board’s Secretariat as a result of TMS in an applicant-firm.
  • “Piece-Rate” means payment based on production quantity/amount rather than time employed.
  • “Production Standard” means quality levels relating to production.
  • “RTWPB” means the Regional Tripartite Wages and Productivity Board.
  • “Standard Time” means the time required by an average worker to perform prescribed and standardized work in prevailing conditions.
  • “Time and Motion Study (TMS)” means systematic determination of work methods and time standards using various tools/technologies.
  • “Wages” means remuneration or earnings capable of being expressed in money, payable by an employer to an employee under written or unwritten employment contract for work done or to be done, or services rendered or to be rendered; it includes the fair and reasonable value of board, lodging, or other facilities customarily furnished by the employer as determined by the Secretary of Labor and Employment.
  • “Work” means any activity performed for a fee.
  • “Work Cycle” means the complete sequence of elements necessary to perform a specified job to yield a unit of output.
  • “Work Improvement” means designing a better method of doing work.
  • “Work Measurement” means determining the period of time a machine or average worker needs to perform specific job at a defined level of performance.

TMS administration and technical assistance

  • The NWPC must develop a system of assessment and accreditation of those who will conduct Time and Motion Study.
  • Accredited trainers must comply with procedural requirements consistent with Rule II and Rule III.
  • The NWPC must provide continuous capacity building for its personnel.
  • Conduct of TMS is a form of technical assistance conducted by RTWPBs free of charge or at no cost to applicants.

Application filing and initial RTWPB actions

  • Applications for TMS use the prescribed form NWPC-TMS Form-01 and must be filed personally or by registered mail.
  • Applications must be accompanied by documentary requirements consisting of:
    • Business permit for the current year issued by the appropriate government agency;
    • List of the company’s employees with their corresponding wages;
    • Job activities with their existing wage rates;
    • Method of payment of wages (e.g., pakyaw, takay, commission);
    • Proof of notice of filing of application for determination of piece rate or production standard setting.
  • Applications with incomplete documentary requirements are not accepted.
  • If filed by registered mail or e-mail, incomplete/denied applications must be returned upon receipt using Reply Form NWPC-TMS Form-02, with all submitted documents and reasons for denial.
  • Applications may be filed by the union, a worker, or owner/manager, or the duly authorized representative of a micro, small, or medium establishment.
  • If the application is filed by a union or worker, mere application suffices, and the RTWPB must immediately notify the owner/manager, who must submit documentary requirements.
  • Applications must be filed with the appropriate RTWPB having jurisdiction over the workplace using NWPC-TMS Form-01.
  • Applications filed with DOLE-RO and field offices must be immediately forwarded to the appropriate RTWPB.
  • Applications for the determination of piece rates must be filed before such rates are given effect.
  • Applications for approval of existing piece rates may be filed at any time at the discretion of the requesting party, without prejudice to workers’ right to recover the difference between what they are entitled to receive under standards/rates determined by the RTWPB and what they actually received.
  • The RTWPB secretariat must act on the application within 30 days from determination of completeness.
  • RTWPB secretariat actions within the 30-day period include:
    • Secure authority to conduct TMS from the RTWPB Chairperson/DOLE Regional Director, set the schedule, and prepare the agenda for the Initial Conference ensuring attendance/participation of union/workers’ and management’s representatives;
    • Conduct the initial conference with the RTWPB Board Secretary as Chair to discuss rules of engagement, including details of the application, terms of reference for TMS, and coverage;
    • Prepare minutes of the meeting using NWPC-TMS Form-03 and requiring approval by representatives present.
  • TMS must follow Rule II, Section 2 conduct requirements, including data gathering, measurement, computation and analysis, conferences, and submission.

How TMS is conducted and reported

  • TMS participants must observe, obtain, and record information about the job, operator, operation, surroundings, working conditions, and factors likely to affect accomplishment of the work.
  • TMS must study the activity/activities that will be the subject of TMS and examine detailed breakdown of job operation/activity, including classification into cyclical or non-cyclical elements.
  • TMS must measure and record time taken to perform each element using tools and timing techniques and must use a stop watch, video, or similar device to obtain average, normal, basic, and standard time.
  • After gathering information, participants must be reconvened in the initial conference to discuss the process conducted and succeeding activities with corresponding timelines.
  • RTWPB must compute and analyze information gathered from the establishment.
  • TMS must include an exit conference to discuss results and corresponding recommendations.
  • The RTWPB must submit to the DOLE Regional Director as RTWPB Chairman for consideration and approval a report that includes:
    • Agreements and recommended standard rates as stated in the Time Study Summary Sheet (NWPC-TMS Form-05), whichever is applicable;
    • Application or Request Form (NWPC-TMS Form-01);
    • Initial Conference (NWPC-TMS Form-03);
    • Time Study Observation Sheet (NWPC-TMS Form-04);
    • Time Study Summary Sheet (NWPC-TMS Form-05) concurred by workers’ and employers’ authorized representatives;
    • Minutes of the pre and post conference and all records pertinent to the narrative report.
  • TMS documentation must follow the forms referenced in the conduct of TMS requirements: NWPC-TMS Forms-04 and 05.

Piece rate / production standard order process

  • Within five (5) working days from receipt of the RTWPB resolution, the Regional Director as RTWPB Chairperson must issue a Piece Rate and/or Production Standard Order.
  • Any party aggrieved by a Piece Rate and/or Production Standard Order must appeal to the NWPC by filing a verified appeal with the RTWPB.
  • The appeal must be filed in two (2) printed and legible copies.
  • The appeal must be filed within ten (10) days from receipt of the Piece Rate or Production Standard Order.
  • Appeals must be grounded on violations of procedures set in Rule II, Section 2.
  • The Piece Rate Order (NWPC-TMS Form-06) or Production Standard Order (NWPC-TMS Form-07) must include:
    • Recital of facts;
    • List of job operation or activity studied and corresponding rate per unit in the company for Piece Rate Orders, or quota per day for Production Standard Orders;
    • Issues involved and discussion where applicable.
  • A Piece Rate and/or Production Standard Order remains valid and effective unless sooner revoked, suspended, revised, or reviewed.
  • The union/workers and employer each must be furnished a copy of the Order.
  • The employer must post a copy of the Order in a bulletin board or in a conspicuous place in its establishment and must submit a certificate of posting to the RTWPB.
  • The posting forms part of the monitoring activity of the DOLE RO.
  • Large establishments with existing piece rates may apply for validation of the same, which is subject to a Piece Rate Order.

Enforcement and consequences of violations

  • Compliance with the Piece Rate and/or Production Standard Order is enforced by the appropriate DOLE-RO, in accordance with enforcement procedures under Article 128 and 129 of the Labor Code, as amended.
  • Any violation of the Order may result in revocation or suspension of the Order by the DOLE Regional Director after due process.

Reporting, audits, and record submission

  • RTWPBs must submit to the NWPC within ten (10) working days after the reference month a monthly report (NWPC-TMS Form-08) on the conduct of Time and Motion for program monitoring and evaluation.
  • All Orders and corresponding TMS documentation must be filed at the RTWPB.
  • One complete copy must be sent to the NWPC, which must maintain a database of all TMS.
  • The NWPC must conduct random documentation and/or site audits on TMS.
  • The NWPC must furnish the concerned Board Chairperson with a copy of the audit results.

Repeal, separability, and rule amendment

  • All existing rules, regulations, orders, or parts thereof inconsistent with the Guidelines are amended or modified.
  • If any part or provision of the Guidelines is declared unconstitutional or illegal, the other parts or provisions remain valid.

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