After reading “What is the Double Indemnity Doctrine?”, read also “What are Pre-Need Plans?”
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Employers who refuse or fail to pay the minimum wage prescribed by law shall be required to pay an amount equal to double the unpaid benefits owing to the employees.
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Employers who refuse of fail to pay the prescribed increases or adjustments in the wage rates shall be punished with a fine of not less than twenty-five thousand pesos (P25,000) nor more than One hundred thousand pesos (P100,000) or imprisonment of not less than two (2) years nor more than four (4) years, or both such fine and imprisonment at the discretion of the court.
Under the double indemnity rule of the said act, employers who refuse or fail to pay the minimum wage prescribed by law shall be required to pay an amount equal to double the unpaid benefits owing to the employees.
The law says:
Republic Act No. 8188, or the Act Increasing the Penalty and Increasing the Double Indemnity for Violation of the Prescribed Increases or Adjustment in the Wage Rates, amended Section 12 of R.A. No. 6727 or the Wage Rationalization Act.
R.A. No. 8188 provides that:
SECTION 1. Section 12 of Republic Act Numbered Sixty-seven hundred twenty-seven is hereby amended to read to as follows:
“Section 12. Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made in accordance with this Act shall be punished by a fine not less than Twenty-five thousand pesos (P25,000) nor more than One hundred thousand pesos (P100,000) or imprisonment of not less than two (2) years nor more than four (4) years, or both such fine and imprisonment at the discretion of the court: Provided, That any person convicted under this Act shall not be entitled to the benefits provided for under the Probation Law.
“The employer concerned shall be ordered to pay an amount equivalent to double the unpaid benefits owing to the employees: Provided, That payment of indemnity shall not absolve the employer from the criminal liability imposable under this Act.
“If the violation is committed by a corporation, trust or firm, partnership, association or any other entity the penalty of imprisonment shall be imposed upon the entity’s responsible officers, including, but not limited to, the president, vice-president, chief executive officer, general manager, managing director or partner.”
Furthermore, En Banc Resolution No. 01-19 of the National Labor Relations Commission dated March 06, 2019 has bolstered the exigency of the imposition of stricter penalty for those found liable under the law. Resolution No. 01-19 provides that:
“WHEREAS, Republic Act No. 8188 provides for the imposition of double indemnity against an employer who refuses of fails to pay any of the prescribed increases or adjustment in the wage rates.
WHEREAS, the En Banc finds the need to issue guidelines in the imposition of double indemnity against the employer in accordance with the applicable jurisprudence.
WHEREAS, RESOLVED AS IT IS HEREBY RESOLVED, in the event that the Labor Arbiter or the Commission finds the employer liable for underpayment of wages, the following statement should be incorporated in the disposition:
“That the respondent/employer is given a period of five (5) days from receipt of the decision to pay the wage differential, otherwise double indemnity would be imposed during execution.”
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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