90 percent of micro-businesses are labor law complaint

CEBU, Philippines — Over 90 percent of micro-establishments (MEs) in the northern and southern parts of Cebu Province, that have attended technical and advisory visit (TAV) discussions by the Department of Labor and Employment-7, are compliant with the labor laws.

In northern Cebu, around 805 micro-establishments joined DOLE-7’s TAV sessions in the third quarter of this year. Mostly came from the towns of San Remigio, Madridejos, Bantayan, Tuburan, and the City of Danao.

According to DOLE-7, of the total number, around 749 or 93.05 percent of the MEs were found to be compliant with labor laws leaving about 56 or 6.95 percent, who voluntarily identified gaps or deficiencies requiring assistance from the DOLE-7.

Vivencio Lagahid, OIC of the Cebu Provincial Field Office (CPFO), said that the 56 MEs willingly revealed that they pay their employees below the minimum wage.

In their action plan, he said these MEs were advised either to apply the prescribed wages in the Region, register under the Department of Trade and Industry’s Barangay Micro Business Enterprise (BMBE), or apply for a wage exemption before the Regional Tripartite Wages and Productivity Board Region or RTWPB-7.

For southern Cebu MEs, DOLE-7 noted 91.16 percent of the 328 micro-establishments that were given the TAV that were labor laws compliant. The TAV sessions took place in the towns of Alegria, Ginatilan, Balamban, and Dumanjug, where around 29 MEs or 8.84 percent declared that they failed at paying their workers with the correct minimum wage.

Just like with the MEs from the towns in northern Cebu, the business owners were also guided on how to make an action plan that will help them become compliant.

During the TAV sessions, micro-establishments, or businesses employing less than 10 workers or those family-owned businesses which are assisted by family members are taught on applicable General Labor Standards; Occupational Safety and Health Standards; Productivity schemes; Child and Family Welfare; and other DOLE programs, policies, and issuances related to SSS, PhilHealth, Pag-IBIG and the Employees

Compensation Commission (ECC) benefits.

Under the newly-issued Department Order No. 238, Series of 2023 or the Rules on the Administration and Enforcement of Labor Standards Pursuant to Article 128 of the Labor Code of the Philippines, as renumbered, and Republic Act No. 11058, DOLE is tasked to administer and ensure enforcement of the Labor Standards and other labor laws through TAVs, labor inspection; and Occupational Safety and Health Investigation. — /ATO (FREEMAN)