Employers warned vs delay in 13th month pay

MANILA, Philippines — Employers nationwide have been advised against late release of their employees’ 13th month pay.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) said employers who would be late in giving the 13th month bonus will end up paying more from money claims.

“Employers and business owners in Luzon, the Visayas and Mindanao have until Dec. 24 to give the mandatory 13th month pay of their employees,” ALU-TUCP spokesman Alan Tanjusay said in a statement released yesterday.

Tanjusay said the law requires all employers to pay workers the amount equivalent to their one-month salary on or before Dec. 24 every year. 

With the consent of the workers, employers may give half of the pay every June and the other half every December.

Tanjusay said employers who will refuse to comply with the law could be charged with violation of Presidential Decree 851 before the Department of Labor and Employment (DOLE).

Violators will be charged with money claims and will have to pay moral and exemplary damages if found guilty.

Non-compliant employers, particularly medium and large enterprises – Filipino and multinationals – can be charged before the  Department of Trade and Industry, and their ISO (International Standard Organization) certification may be questioned.

Tanjusay said the 13th month bonus must be given in cash and could not be replaced with grocery items, rice, gadgets or gift cheques, noting it is different from Christmas bonus.

“Christmas bonus can be in cash or grocery items and is not mandatory – it is discretionary on the part of the employers. The 13th month pay is mandatory and compulsory,” he said.

Tanjusay said many employers might try to avoid granting the 13th month pay and deceive their employees by giving them rice and grocery goods only.

Even employees who worked for one month, including those employed under the so-called endo or the end-of-contract scheme and other short-term work arrangements, are entitled to 13th month pay and Christmas bonus, Tanjusay said.

“Non-compliant principal employers including middlemen such as manpower agencies, manpower cooperatives, labor contractors and service providers, face cancellation of license and will end up paying more with money claims,” he said.

Resigned or terminated employees who have worked for more than one month are also entitled to receive 13th month pay equivalent to the length of time of services rendered.

Aside from DOLE, aggrieved workers may file a complaint before the DTI, National Labor Relations Commission and Bureau of Immigration (BI) for those employed by foreign employers.

Non-compliant foreign employers may face deportation.