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Labor - DO 126-13

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  RepublicofthePhilippines DEP RTMENTOFL OR NDEMPLO Intramuros,Manila _..u. 'uã-::'\ OEPARTMENiOFLABORANDEMPLOYMENT: ~lvaSerlicgCantra ReccrnsSection GSO  DATE: ; APt GQ  TIM IO [U~ ~  DEPARTMENTORDERNO  / t~ /3  RECEIVED3 : ;j ~ ~i?: :  Seriesof2013--- REVISEDGUIDELINESONTHECONDUCTOFFACILITYEVALUATION PursuanttoAdministrativeOrderNo.357,Seriesof2010,DOLERationalizationPlan,ExecutiveOrderNo.366,andArticle121(b)oftheLaborCode ofthePhilippines,asamendedbyRepublicActNo.6727,thisGuidelinesshall governtheproceduresandstandardsfortheconductofFacilityEvaluation(FE). RULEIGENERALPROVISIONS Section1.Title._This GuidelinesshallbeknownastheRevisedGuidelinesonthe ConductofFacilityEvaluation. Section2.Construction._This GuidelinesshallbeliberallyconstruedtocarryouttheobjectivesofAdministrativeOrderNo.357,Seriesof2010,DOLERationalization Plan,ExecutiveOrderNo.366,andArticle121(b)oftheLaborCodeofthe Philippines,asamendedbyRepublicAct Nb 67 7  Section3.Scope. ThisGuidelinesshallgoverntheconductofevaluationbythe RegionalTripartiteWagesandProductivityBoardsoffacilitiesprovidedbythe employertohisemployeesbutshallexcludesupplements. Section4.DefinitionofTermsAsusedinthisGuidelines: (a)  NWPC  meanstheNationalWagesandProductivityCommission. (b)  RTWPB  meanstheRegionalTripartiteWagesandProductivityBoard. (c)  DOLE  meanstheRegionalOfficeoftheDepartmentofLaborand Employment.  d CashWage meanstheminimumwageratesprescribedbylaworwage orderwithoutdeductingtherefromwhateverbenefits,supplementsor allowanceswhichtheemployeesenjoyfreeofchargeasidefromthebasic pay.  (e)  Facilities  refertoarticlesorservicesprovidedbytheemployerforthe benefitoftheemployeeorhis/herfamilybutshallnotincludetoolsofthe tradeofarticlesorservicesprimarilyforthebenefitoftheemployeror necessarytotheconductoftheemployer'sbusiness.(Section5,RuleVII, ImplementingRulesofBookIII,Laborcode).Thetermshallinclude: 1. Meals;2.Housingfordwellingpurposes;3.Fuelincludingelectricity,water,gasfurnishedforthenon-commercial personaluseoftheemployee;4.transportationfurnishedtotheemployeebetweenhishomeandwork wherethetraveltimedoesnotconstitutehoursworkedcompensable undertheLaborCodeandotherlaws;5.School,recreationandsanitationwhenoperatedexclusivelyforthe benefitoftheworkerorhisfamily; 6.Medicalanddentalservicesrenderedtothenon-industrialcases;and 7.Otherarticlesandservicesgivenprimarilyforthebenefitoftheworker orhisfamily.(f)  FacilityEvaluation  referstoanevaluationconductedbythe appropriateR1WPBtodeterminethefairandreasonablevalueoffacilities furnishedbytheemployertohis/heremployees. (g)  FacilityEvaluationOrder referstotheOrderissuedbytheDOLERegionalDirectorasChairpersonofR1WPBauthorizinganemployerto considerthemonetaryvalueofthefacilitiesavailedofaspartofthe wagesofhis/heremployeespursuanttoArticle97(f)oftheLaborCode. (h)  FairandReasonableValueofFacilities  isthecostofoperationand maintenance,includingadequatedepreciationplusreasonableallowance (butnotmorethan 5-1/2 interestonthedepreciatedamountofcapital investedbytheemployer;providedthatifthetotalsocomputedismore thanthefairrentalvalue(orthefairpriceofthecommoditiesorfacilities offeredforsale),thefairvalueshallbethereasonablecostofthe operationandmaintenance.Therateofdepreciationanddepreciated amountcomputedbytheemployershallbethosearrivedatundergood accountingpractices.(See.6,RuleVII,ImplementingRulesofBookIII, LaborCode) 2  (i)  Supplements  constituteextraremunerationorspecialprivilegesorbenefitsgiventoorreceivedbylabourersoverandabovetheirordinaryearningsorwages 1. Itshallinclude:1.Emergencymedicalanddentalservicesfurnishedbyemployerby virtueoftherequirementoftheLaborCode,asamendedanditsImplementingRulesandRegulations;2.Cost,rentaland/orlaundryofuniformwherethenatureofthe businessrequirestheemployeestowearauniform;3.Transportationchargeswheresuchtransportationisinincidenttoor necessarytotheemployment;4.Sharesofcapitalstockoftheemployeeinanemployer'scompany; 5.Paidvacation,sickandmaternityleaves;and 6.Toolsofthetradeorarticlesorservicesprimarilyforthebenefitofthe employerornecessarytotheconductoftheemployer'sbusiness, U Wages  meansremunerationorearnings,howeverdesignated,capable ofbeingexpressedintermsofmoney,whetherfixedorascertainedona time,task,pieceorcommissionbasisorothermethodofcalculatingthe same,whichispayablebyanemployertoanemployeeunderawrittenor unwrittencontractofemploymentforworkdoneortobedone,orfor servicesrenderedortoberenderedandincludesthefairandreasonable valueofboard,lodgingorotherfacilitiescustomarilyfurnishedbythe employertotheemployeeasdeterminedbytheSecretaryof tabor . Section5.AssessmentandAccreditation. TheNWPCshalldevelopasystemofassessmentandaccreditationofprivatefacilityevaluators.Accreditedevaluators shallcomplywiththeproceduralrequirementsconsistentwithRulesIIandIVofthis Guidelines. 1 ATOKBigWedgeAssn. VS. ABWCo.[97Phil294] 2 Article97(f),LaborCode 3  RULEIICONDUCTOFFACILITYEVALUATION Section1.FilingofApplicationfortheConductofFacilityEvaluation a. Howfiled. Applicationmaybefiledpersonally,byregisteredmail,or electronicmail(email)usingNWPC-FEForm-Ol.Itshallbeaccompaniedby thefollowingdocument: 1. Businesspermitforthecurrentyearissuedbytheappropriate governmentagency;2.Listofthecompany'semployeeswiththeircorrespondingwages; 3.Jobactivitieswiththeirexistingwagerates; 4.Methodofpaymentofwages(e.g.pakyaw,takay,commission);and 5.Proofofnoticeoffilingofapplication Applicationswithincompletedocumentaryrequirementsshallnotbe accepted.Iftheapplicationwassentthroughregisteredmailore-mail,itshall bereturneduponreceiptusingtheReplyFormNWPC-FEForm-02withallthe submitteddocuments,indicatingthe reason s fornon-acceptanceoftheapplication. b. Whomayfile. Theapplicationmaybefiledbytheunion,workeror owner/managerorthedulyauthorizedrepresentativeofamicro,small,or mediumestablishmentsinperson,byregisteredmail,orbyemail.Incase theapplicationisfiledbyaunionorworker,mereapplicationwillsufficeand theR1WPBshallimmediatelynotifytheowner/managerwhoshallberequired tosubmitthedocumentaryrequirements. c. Wheretofile. TheapplicationshallfiledwiththeR1WPBhavingjurisdiction overtheworkplaceusingNWPC-FEForm-Ol.ApplicationsfiledwiththeDOLE RegionalOfficeandfieldofficesshallimmediatelybeforwardedtothe appropriateR1WPB. d. Whentofile. Applicationsmaybefiledeitherbeforetheintroductionofthe proposedfacilitiesoratanytimeinthecaseofexistingfacilities. Section2.ActionsonApplication. TheR1WPBsecretariatshall,within30days fromdeterminationofthecompletenessoftheapplication,actonthesameas follows: 4
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