DOLE eases wage hike exemption rules for calamity-hit businesses

The Department of Labor and Employment's National Wages and Productivity Commission has eased rules on wage hike exemptions for establishments heavily affected by calamities.

Covered by the new rules are establishments that "sustained property damage of at least 50 percent and whose recovery will exceed one year," the DOLE said.

"Natural and human-induced disasters affect business operations and results to establishments experiencing temporary difficulties due to financial losses which necessitate government to step in and extend urgent assistance. The NWPC amendments to the 2007 Rules on Exemption liberalize the process and requirements for calamity-affected enterprises to qualify for exemption," DOLE Secretary Rosalinda Baldoz said.

Baldoz said the most important part of the amendment is the extension of the exemption period to one year.

"If the damage to properties of the establishment is at least 50 percent, based on the assessment of a competent authority, and the period of recovery will exceed one year, the six-month period of exemption may be extended to one year," she said.

The new rules are contained in Resolution No. 1 amending NWPC Guidelines No. 2 (2007), which spell out the rules on exemption from wage orders issued by Regional Tripartite Wage and Productivity Boards.

Under the new rules, such establishments may now claim for exemption for a longer period from compliance with wage increases and cost-of-living allowances granted by the regional wage boards.

Unanimously approving the resolution were NWPC Board members Ciriaco Lagunzad III (chairman-designate); National Economic and Development Authority Secretary Arsenio Balisacan (vice-chairman); Cedric Bagtas and David Diwa Jr. (labor sector representatives); Francisco Floro and Eduardo Rondain (employer sector representatives); and NWPC Executive Director Maria Criselda Sy.

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

Changes

In the resolution, the NWPC Board expanded the concepts of "calamity," "hazard," and "disaster" to include both natural and human-induced.

Human-inducted calamities may include economic sabotage, financial crisis, rebellion, and war.

Regional wage boards are to include in their wage orders a provision that "in case of a calamity, the Board may accept applications for exemption for establishments adversely affected by calamities, such as natural and/or human-induced disasters."

"The calamity must have occurred within six months prior to the effectivity of a wage order," the resolution added.

Exemption applications

The NWPC Board also allows regional wage boards to re-open the period for the filing of exemption applications if the calamity occurred after the expiration of the period for the filing of an exemption application.

But applicant-establishments need to submit a certification that a general assembly to explain to its workers its intent to file an application for exemption has been conducted prior to the filing of the application.

They should also have an undertaking to conduct another general assembly to inform the workers of the decision of the RTWPB on its application.

Meanwhile, documentary requirements are simplified as the resolution allows a certification by the barangay and photos of the damaged property or properties to be submitted instead of audited financial statements. — Joel Locsin /LBG, GMA News