IF A contractual worker receives low pay, his employer must pay what is due him within the past three years.
Department of Labor and Employment (Dole) 7 Director Exequiel Sarcauga made the announcement after he discovered during an inspection that a firm only paid its employees P159 a day, or almost half the P355 daily minimum wage mandated by law.
Under the law, the difference, or P196 a day, is considered back wages.
Sarcauga said that if they discover something similar in their other inspections, they will also order employers to pay the difference of the unpaid salary for the same period of time.
They must also pay the premiums for Pab-Ibig, Philhealth and Social Security System, he said.
Sarcauga said erring employers will have to comply because that’s the marching order of President Rodrigo Duterte. Otherwise, they can face up to 12 years in prison aside from monetary fines.
Sarcauga also reminded service providers that it’s time to make contractual workers regular.
“To those in the management sector, I think you have heard of the marching order of the President, and we in the ground would just like to implement as instructed,” Sarcauga said.
He said he hopes for and expects full cooperation from employers when they inspect establishments to find out who among the workers are regular and who are contractual.
In line with the order of Duterte to regularize contractual employees, Dole 7 will no longer accept applications for “service providers.”
Existing contracts to supply workers to companies will expire on Dec. 31, 2017.
“I’m sorry to say that whether they like it or not, contractualization (of employments) has to end next year as ordered by the President,” Sarcauga said.