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Compensable Breaks, Service Charges and Wage Distortion

http://www.dole.gov.ph

What is wage distortion?

Wage distortion is a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation.

Are meal periods compensable?

YNo. As a general rule, employees are entitled to at least non-compensable one-hour time-off for regular meals.

Can a coffee break be considered as compensable?

Yes. Coffee breaks running from five (5) to twenty (20) minutes are considered as compensable working time.

How is service charge distributed?

Service charges are distributed in accordance with the following percentage of sharing:

  1. eighty-five (85%) for the employees, to be distributed equally
  2. fifteen percent (15%) for the employer, for losses & breakages and distribution to managerial employees

Is withholding of wages and kickback allowed?

No. It shall be unlawful for any person, directly or indirectly, to withhold any amount from the wages of a worker or induce him to give any part of his wages by force, stealth, intimidation, threat or by any other means whatsoever without the worker's consent./p>

 

[Source: www.dole.gov.ph]