Wage Board Extends Exemption Period

Establishments adversely affected by natural and human-induced disasters that have sustained property damage of at least 50 percent, and whose recovery will exceed one year, may now claim for exemption for a longer period from compliance with prescribed wage increases and cost-of-living allowances granted by Regional Tripartite Wage and Productivity Board (RTWPB).

Labor and Employment Secretary Rosalinda Dimapilis-Baldoz announced Thursday after the National Wages and Productivity Commission (NWPC) approved Resolution No. 1 amending NWPC Guidelines No. 2 of 2007 which spells out the rules on exemption from RTWPBs-issued wage orders.

“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,” Baldoz said.

She said the NWPC amendments to the 2007 Rules on Exemption liberalize the process and requirements for calamity-affected enterprises to qualify for exemption.

The resolution, unanimously approved by the members of the NWPC Board, will take effect 15 days after publication in a newspaper of general circulation.

The NWPC Board expanded the concept of “calamity”, “hazard”, and “disaster” to include both natural–such as typhoons, floods, earthquakes, tsunami, volcanic eruption, drought, pest infestation, etc., and human-induced–such as economic sabotage, financial crisis, rebellion, war, etc.–for purposes of the exemption.

It also ordered the RTWPBs to include in their wage orders a provision stating “a statement 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.”

Secretary Baldoz said the most important part of the amendment is the extension of the exemption period to one year. To simplify the documentary requirements, the resolution provides that a certification by the barangay and photos of the damaged properties may be submitted in lieu of audited financial statements.