Increasing the Penalty for Violation of Prescribed Wage Rates
Republic Act No. 8188, enacted on June 11, 1996, amends the Wage Rationalization Act to impose stricter penalties for violations related to wage rate increases. It establishes fines ranging from P25,000 to P100,000 and prison terms of 2 to 4 years for employers who fail to comply. Additionally, it mandates double indemnity for unpaid wage benefits to employees, and criminal liability remains even if indemnity is paid. The law holds responsible corporate officers accountable if violations are committed by entities. This act took effect 15 days after its publication.
June 11, 1996
REPUBLIC ACT NO. 8188
AN ACT INCREASING THE PENALTY AND IMPOSING DOUBLE INDEMNITY FOR VIOLATION OF THE PRESCRIBED INCREASES OR ADJUSTMENTS IN THE WAGE RATES, AMENDING FOR THE PURPOSE SECTION TWELVE OF REPUBLIC ACT NUMBERED SIXTY-SEVEN HUNDRED TWENTY-SEVEN, OTHERWISE KNOWN AS THE WAGE RATIONALIZATION ACT
"Sec. 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."
SECTION 2.All laws, presidential decrees, executive orders, rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly. cd
SECTION 3.This Act shall take effect fifteen (15) days after its complete publication in a newspaper of general circulation.
Approved: June 11, 1996
Published in Malaya and the Manila Times on June 20, 1996. Published in the Official Gazette, Vol. 92 No. 33 page 5078 on August 12, 1996.