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Companies allowed to delay payment of holiday pay for April holidays

 

Cebu City, Philippines. Companies are allowed to delay or postpone payment of the holiday pay of the workers for the upcoming three (3) holidays on April 2020.

April 9, Araw ng Kagitingan and Holy Thursday; April 10, Good Friday; and April 11, Special Non-Working Day will each have a different computation for the payment of wages of the workers.

However, due to the existence of a national emergency brought about by the menacing effects of COVID-19, employers are given consideration and are allowed to pay the workers with the holiday pay at a later time when the present emergency situation has been abated and the normal operations of establishments have been put in place.

Labor Advisory No. 13-A, Series of 2020 issued today by Secretary Bello provides for the deferment of the payment of holiday pay for the April 2020 Holidays.

DOLE-7 Salome O. Siaton also said that establishments that have totally closed or ceased operations during the enhanced community quarantine period are exempted from the payment of the holiday pay for the holidays on the same month.

However, she reminded employers that when things are already back to normal, companies must pay attention to the computation of wages of the workers on said 3 holidays.

“Just to let companies be aware in advance of the rules to be adhered to in the computation of the holiday pay for the 3 holidays, we are also giving out advance information so that they will be guided,” said Director Siaton, adding that the computation for each holiday must be patterned after a certain kind of rule, which is quite peculiar from the other, this time, putting into consideration the start of the declaration of the enhanced community quarantine (ECQ) by the local government units (LGUs) concerned.

Labor Advisory No. 13, Series of 2020 provides for the payment of wages for the Regular Holidays on April 9 and 10, 2020 and for the Special Day on April 11, 2020.

April 9, Araw ng Kagitingan and Holy Thursday- Double Regular Holiday

On April 9, workers who will not report to work on that day will be paid 200% of their daily rate on a condition that they must be present or on leave with pay on the workday prior to the start of the ECQ in their respective area.

“The start and effectivity of the enhanced community quarantine declared in each province or city within Central Visayas must be considered by employers. That will signal them whether a worker who will not report to work on April 9 will be paid 200% of his or her daily wage rate or not,” said Director Siaton.

If workers will work on April 9, they must be paid 300% of their daily wage rate for the first eight (8) hours of work. For work done in excess of 8 hours on said day, they must be paid an additional 30% of their hourly rate on said day.

“For work done during a double regular holiday that also falls on the workers’ rest day, they must be paid an additional 30% of their basic wage of 300%,” explained the DOLE-7 head.

For work done in excess of 8 hours during a double regular holiday, which also falls on the workers’ rest day, they must be paid an additional 30% of their hourly rate on said day.

April 10, Good Friday- Regular Holiday

April 10 has a different rule for the computation of wages. If the worker will not work on day that, he or she will be paid 100% of his or her daily wage rate provided he or she must be present or on leave with pay on the workday prior to the start of the ECQ. For work done on that day, workers must be paid 200% of their daily wage rate for the first 8 hours of work.

For work done in excess of 8 hours or overtime work, workers must be paid an additional 30% of their hourly rate on that day. For done on that day and it also happens to be the rest day of the workers, they must be paid an additional 30% of their basic wage of 200%. For workers who render overtime work on that day, which also happens to be their rest day, they must be paid an additional 30% of their hourly rate on said day.

April 11, Special Non-Working Day

If workers will not work on April 11, then the “no work, no pay” principle will apply unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment on that day even if unworked.

Workers reporting to duty on that day must be paid an additional 30% of their basic wage for the first 8 hours of work. For overtime work, workers must be paid an additional 30% of their hourly rate on that day and for work done on said day, which is also the rest day of workers, they must be paid an additional 50% of their basic wage for the first 8 hours of work.

Secretary Silvestre H. Bello III recently signed and released Labor Advisory No. 13, Series of 2020 pursuant to Proclamation No. 845 issued by the President on November 15, 2019. While, Labor Advisory No. 13-A has been issued today, 1 April, Pursuant to Article 5 of the Labor Code of the Philippines, in relation to Labor Advisory No. 13, Series of 2020.

 

 

End//LSenarlo-Taniza

 For more information on this report, you may contact (032) 513-2566; (032) 266-0811; (032) 266-2792; (032) 512-8133 / (+63) 977-610-9202; (035) 480-9244; (035) 226-2778 / (035) 422-974. You may also send your emails to tricityfodole7camp@gmail.com; cpfodolero7camp@gmail.com; sfodole7camp@gmail.com; nofodole7camp@gmail.com; and doleboholcamp@gmail.com.

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2020-04-01
SALOME O. SIATON
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