Labor Standards

Workers paid by results

1. Summary

▪ Workers paid by results are those whose pay is calculated in terms of the quantity or quality of their work output.

▪ There are two categories of workers paid by results: (a) Those whose time and performance are supervised by the employer; and (b) Those whose time and performance are unsupervised.

2. Concept

Workers paid by results are those whose pay is calculated in terms of the quantity or quality of their work output which includes “pakyaw” work and other non-time work. (David v. Macasio, G.R. No. 195466, 02 July 2014)

They include those who are paid on piecework, takay, pakyaw or task basis. (Paragraph 8, Article 124, Labor Code)

a. Distinguished from straight-hour wage payment

A distinguishing characteristic of “pakyaw” or task basis engagement, as opposed to straight-hour wage payment, is the non-consideration of the time spent in working. In a task-basis work, the emphasis is on the task itself, in the sense that payment is reckoned in terms of completion of the work, not in terms of the number of time spent in the completion of work. Once the work or task is completed, the worker receives a fixed amount as wage, without regard to the standard measurements of time generally used in pay computation. (David v. Macasio, supra.)

b. Paid with prescribed wage rate per 8-hour work-day

All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis, shall receive not less than the prescribed wage rates per eight (8) hours of work a day, or a proportion thereof for working less than eight (8) hours. (Paragraph 8, Article 124, Labor Code)

3. Categories

There are two categories of employees paid by results:

1) Those whose time and performance are supervised by the employer; and

2) Those whose time and performance are unsupervised. (Lambo v. NLRC, G.R. No. 111042, 26 October 1999)

Both classes of workers are paid per unit accomplished. (Ibid.)

a. First Category: supervised

For those whose time and performance are supervised by the employer, there is an element of control and supervision over the manner as to how the work is to be performed. A piece-rate worker belongs to this category especially if he performs his work in the company premises. (Ibid.)

Piece-rate payment is generally practiced in garment factories where work is done in the company premises. (Ibid.)

b. Second Category: unsupervised

For those whose time and performance are unsupervised, the employer’s control is over the result of the work. Workers on pakyao and takay basis belong to this group. (Ibid.)

..

References

Presidential Decree No. 442, a.k.a. Labor Code of the Philippines

Disclaimer: All information is for educational and general information only. These should not be taken as professional legal advice or opinion. Please consult a competent lawyer to address your specific concerns. Any statements or opinions of the author are solely his own and do not reflect that of any organization he may be connected.

Labor Standards

Labor standards refer to legally-mandated benefits required to be given to the employees by the employer.

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