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    PVTA v. CIR

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    DGDelfin
    Philippine Virginia Tobacco Administration v. CIR addresses whether the Philippine Virginia Tobacco Administration (PVTA) is exempt from paying overtime compensation to its employees. The court ruled that (1) PVTA performs governmental functions under the welfare state concept by promoting the local tobacco industry; (2) however, PVTA is not exempt from paying overtime compensation according to the Eight-Hour Labor Law, which applies to both public and private employers; (3) the welfare state concept expanded the government's role in economic affairs and rejected the traditional classification of public vs. private functions.

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    PVTA v. CIR

    Uploaded by

    DGDelfin
    74 views2 pages
    Philippine Virginia Tobacco Administration v. CIR addresses whether the Philippine Virginia Tobacco Administration (PVTA) is exempt from paying overtime compensation to its employees. The court ruled that (1) PVTA performs governmental functions under the welfare state concept by promoting the local tobacco industry; (2) however, PVTA is not exempt from paying overtime compensation according to the Eight-Hour Labor Law, which applies to both public and private employers; (3) the welfare state concept expanded the government's role in economic affairs and rejected the traditional classification of public vs. private functions.

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    Philippine Virginia Tobacco Administration v. CIR addresses whether the Philippine Virginia Tobacco Administration (PVTA) is exempt from paying overtime compensation to its employees. The court ruled that (1) PVTA performs governmental functions under the welfare state concept by promoting the local tobacco industry; (2) however, PVTA is not exempt from paying overtime compensation according to the Eight-Hour Labor Law, which applies to both public and private employers; (3) the welfare state concept expanded the government's role in economic affairs and rejected the traditional classification of public vs. private functions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    74 views2 pages

    PVTA v. CIR

    Uploaded by

    DGDelfin
    Philippine Virginia Tobacco Administration v. CIR addresses whether the Philippine Virginia Tobacco Administration (PVTA) is exempt from paying overtime compensation to its employees. The court ruled that (1) PVTA performs governmental functions under the welfare state concept by promoting the local tobacco industry; (2) however, PVTA is not exempt from paying overtime compensation according to the Eight-Hour Labor Law, which applies to both public and private employers; (3) the welfare state concept expanded the government's role in economic affairs and rejected the traditional classification of public vs. private functions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Philippine Virginia Tobacco Administration v.

    CIR

    TOPICS: Laissez faire concept; Welfare state concept; Rejection of the traditional classifications of
    constituent and ministrant governmental functions

    FACTS:

    Respondents are claimants of overtime pay due to them from their employer, Philippine Virginia Tobacco
    Administration or PVTA.

    PVTA denied the allegations and raised a defense that the court lacks jurisdiction as it is exercising
    governmental functions and thus, exempt from the payment of overtime compensation.

    ISSUE:

    I. WON PVTA is exercising governmental functions.


    II. WON PVTA is exempted from the payment of the overtime compensation.

    RULING:

    I.

    Yes, PVTA performs governmental functions.

    Under a welfare state concept, the government has an expanded responsibility which includes the power
    of control over economic affairs. In this concept, the government may interfere in the affairs of industry
    and agriculture as well as to compete with existing business.

    In this case, the economic policy of PVTA aims to encourage the production of local Virginia tobacco,
    establish its industry, and improve the quality of locally manufactured cigarettes. Hence, given the power
    to control economic affairs, which the government undertakes in its sovereign capacity, PVTA is
    performing a governmental function.

    II.

    No.

    The Eight-Hour Labor Law shall apply to all persons employed in any industry or occupation, whether
    public or private.

    In this case, the petitioner need not have required the private respondents to render overtime services.
    Thus, the private respondents deserve payment for overtime services.

    Therefore, the petitioner is not exempted from the payment of overtime compensation.

    DISCUSSION:

    Welfare state concept is antithetical to the laissez faire concept.

    Under a welfare state concept, the government is called upon to undertake in its sovereign capacity the
    areas which used to be left to private enterprise, such as the promotion of the welfare, progress, and
    prosperity of the people - traditionally identified as ministrant functions of the government. It entrusted to
    our government the responsibility of coping with social and economic problems with the
    commensurate power of control over economic affairs.
    A laissez faire concept provides that economic affairs should be reserved or be left under the invisible
    hands of the private enterprises.

    The 1935 Constitution rejected the doctrine of laissez-faire when it entrusted to our government the
    responsibility of coping with social and economic problems with the commensurate power of control
    over economic affairs.

    The traditional classification of constituent and ministrant functions of the government under the Bacani
    ruling was declared unrealistic and obsolete due to the growing complexities of modern society. The
    government must undertake in its sovereign capacity some areas which used to be left to private
    enterprise if it is to meet the increasing social challenges of the times towards a greater socialization of
    economic forces.

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