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June 1, 2022

Business Law and Labor Law Updates

The topics below may be relevant to your daily activities, especially those which involve business law, labor law, and other legal areas of your business.


CAN THE EMPLOYEES SUE FOR THE DIFFERENCE IN AMOUNT OF WAGES?


YES!

Let us take for example the case of G&M (Phil.), Inc. vs. Willie Batomalaque (G.R. No. 151849, June 23, 2005).

In this case, Willie Batommalaque (“Willie”) was hired as a car painter by Abdul Aziz Abdullah Al Muhaimid Najad Car Maintenance Association (“Aziz”), a Saudi Arabian entity based in Riyadh. Willie was hired through G&M Philippines Inc.(“G&M”), for a two-year period with a monthly salary of US$370 which has the equivalent to 1, 200 Saudi Riyals.

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TAX AMNESTY ON DELINQUENCIES


What is a Tax Amnesty?

A tax amnesty is a general pardon or the intentional overlooking by the State of its authority to impose penalties on persons otherwise guilty of violating a tax law. It partakes of an absolute waiver by the government of its right to collect what is due it and to give tax evaders who wish to relent a chance to start with a clean slate (Asia International Auctioneers, Inc.,v. Commissioner of Internal Revenue, G.R. No. 179115, September 26, 2012).

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MANDATORY REMITTANCE FOR OVERSEAS FILIPINO WORKERS


EO 857 mandates every Filipino contract worker abroad to remit regularly a portion of his foreign exchange earnings to his beneficiary in the Philippines through the Philippine banking system.

This mandatory remittance is imposed to protect the welfare of families, dependents and beneficiaries of Filipino workers abroad and to ensure that the foreign exchange earnings of these workers are remitted through authorized financial institutions of the Philippine Government in line with the country’s economic development program

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WHAT IS A SUBSCRIPTION CONTRACT?


Section 59 of the Revised Corporation Code (RCC) states the following:

“SEC. 59. Subscription Contract – Any contract for the acquisition of unissued stock in an existing corporation or a corporation still to be formed shall be deemed a subscription within the meaning of this Title, notwithstanding the fact that the parties refer to it as a purchase or some other contract.” (emphasis and underscoring supplied)

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