Library of PH Labor Law

G – Workers who are paid by results

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1. Summary

▪ Workers paid by results are those whose pay is calculated in terms of the quantity or quality of their work output.

▪ There are two categories of workers paid by results.

2. Concept

Workers paid by results are those whose pay is calculated in terms of the quantity or quality of their work output which includes “pakyaw” work and other non-time work. (David v. Macasio, G.R. No. 195466, 02 July 2014)

They include those who are paid on piecework, takay, pakyaw or task basis. (Paragraph 8, Article 124, Labor Code)

a. Paid with prescribed wage rate per 8-hour work-day

All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis, shall receive not less than the prescribed wage rates per eight (8) hours of work a day, or a proportion thereof for working less than eight (8) hours. (Paragraph 8, Article 124, Labor Code)

3. Categories

There are two categories of employees paid by results:

1) Those whose time and performance are supervised by the employer; and

2) Those whose time and performance are unsupervised. (Lambo v. NLRC, G.R. No. 111042, 26 October 1999)

Both classes of workers are paid per unit accomplished. (Ibid.)

a. First Category: supervised

For those whose time and performance are supervised by the employer, there is an element of control and supervision over the manner as to how the work is to be performed. A piece-rate worker belongs to this category especially if he performs his work in the company premises. (Ibid.)

Piece-rate payment is generally practiced in garment factories where work is done in the company premises. (Ibid.)

b. Second Category: unsupervised

For those whose time and performance are unsupervised, the employer’s control is over the result of the work. Workers on pakyao and takay basis belong to this group. (Ibid.)

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References

P.D. 442, Labor Code of the Philippines

▪ Supreme Court Decisions or Jurisprudence

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