DOLE allows companies to postpone holiday pay

CEBU, Philippines — Due to the coronavirus disease (COVID-19) pandemic, the Department of Labor and Employment has allowed companies to defer payment of holiday pay of workers for the three upcoming holidays in April.

DOLE Secretary Silvestre Bello III had issued Labor Advisory No. 13-A series of 2020 authorizing employers to postpone the holiday pay for Araw ng Kagitingan and Maunday Thursday on April 9; Good Friday on April 10; and the special non-working holiday on April 11.

Based on the advisory, companies are allowed to pay the workers of their holiday pay at a later time when the present emergency situation has been abated and the normal operations of establishments have been restored.

DOLE-7 regional director Salome O. Siaton said that establishments that have temporarily ceased operations due to the ongoing enhanced community quarantine are exempted from paying holiday pay.

Siaton, however, reminded the employers to pay attention to the computation of wages for the three upcoming holidays when things are already back to normal.

“Just to let companies be aware in advance of the rules to be adhered to in the computation of the holiday pay for the three holidays, we are also giving out advance information so that they will be guided,” said Siaton.

 She added 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 ECQ by the local government units 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.

Considering that April 9 is a double regular holiday, workers who will not report to work on that day will be paid 200 percent 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 Siaton.

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

“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%,” Siaton explained.

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 percent of their hourly rate.

April 10 has a different rule for the computation of wages. If the worker will not work, he or she will be paid 100 percent 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. For those who are required to work on their rest day 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.

For April 11, a special non-working holiday, “no work, no pay” principle will apply for those who will not be reporting to work 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. Those who are on a day of but required to work will get an additional 50% of their basic wage for the first 8 hours of work.  FPL (FREEMAN)