Facility Evaluation / TMS

Facility Evaluation / Time And Motion Studies

Facility Evaluation (FE) is a form of evaluation conducted to determine the fair and reasonable value of facilities furnished by an employer to his/her employees.

Time and Motion Study (TMS) is the systematic determination of work methods and time standards using various tools and technologies.

Legal Bases:

• Articles 97 and 101 of the Labor Code govern the conduct of FE and TMS.
• Executive Order No. 366, Series of 2004 and Administrative Order No. 357, Series of 2010 mandated the National Wages and Productivity Commission to review and/or formulate guidelines, conduct capacity building, provide technical assistance, and conduct information awareness campaigns on FE and TMS.
• Department Order Nos. 126-13 and 125-13 issued in April 2013 guide the actual conduct of FE and TMS by the Regional Tripartite Wages and Productivity Boards.

Target Beneficiaries:

Workers of micro, small and medium enterprises

In the case of TMS, a large establishment’s application is only limited to the validation of its existing piece rate/s.

Availment Mechanics:

Interested MSMEs may send their application with the necessary documentary requirements to the RTWPB which has jurisdiction over their area.

Time Frame:

The conduct of FE and TMS, from receipt of application to the issuance of the corresponding Order, is governed by a 35-day process cycle time.

Any party aggrieved by the Orders issued may, within 10 days from receipt of such Orders, file an appeal with the NWPC.