DOLE issues guidelines for (a) deferment and exemption from payment of holiday pay for the April 2020 holidays; and (b) probationary period during the enhanced community quarantine.
Client Alert - 6 April 2020
Dear valued client,
The Department of Labor and Employment ("DOLE") has issued guidelines for employers to defer, or be exempted from, paying holiday pay for the April 2020 holidays.
In Labor Advisory No. 13-A (available here) the DOLE allowed employers to defer paying holiday pay on April 9, 10 and 11, 2020 until such time that the present emergency situation has abated and normal business operations are resumed. Further, establishments that have totally closed or ceased operations during the period of the enhanced community quarantine ("ECQ") are exempted from paying holiday pay.
If the employer opts to pay holiday pay, the employer should pay in accordance with Labor Advisory No. 13 (available here) as summarized below:
April 9 (Araw ng Kagitingan and Holy Thursday) - Regular Holiday
|
Conditions |
Computation |
|
Unworked, provided the employee was present or on leave with pay on the workday prior to the start of the enhanced community quarantine (ECQ) on 17 March 2020 |
(Basic wage + COLA) x 200% |
|
Worked |
(Basic wage + COLA) x 300% |
|
Additional pay for work done in excess of 8 hours |
(Hourly rate of the basic wage) x (number of hours worked) x 300% x 130% |
|
Worked, and falls on the employee's rest day |
[(Basic wage + COLA) x 300%] + [(basic wage x 300%) x 30%] |
|
Additional pay for work done in excess of 8 hours, and falls on the employee's rest day |
(Hourly rate of the basic wage) x (number of hours worked) x 300% x 130% x 130% |
April 10 (Good Friday) - Regular Holiday
|
Conditions |
Computation |
|
Unworked, provided the employee was present or on leave with pay on the workday prior to the start of the enhanced community quarantine (ECQ) on 17 March 2020 |
(Basic wage + COLA) |
|
Worked |
(Basic wage + COLA) x 200% |
|
Additional pay for work done in excess of 8 hours |
(Hourly rate of the basic wage) x (number of hours worked) x 200% x 130% |
|
Worked, and falls on the employee's rest day |
[(Basic wage + COLA) x 200%] + [(basic wage x 200%) x 30%] |
|
Additional pay for work done in excess of 8 hours, and falls on the employee's rest day |
(Hourly rate of the basic wage) x (number of hours worked) x 200% x 130% x 130% |
April 11 - Special (Non-Working) Day
|
Conditions |
Computation |
|
Unworked |
"No work, no pay" principle applies unless there is a favorable company policy, practice, or collective bargaining agreement granting payment on a special day |
|
Worked |
(Basic wage x 130%) + COLA |
|
Additional pay for work done in excess of 8 hours |
(Hourly rate of the basic wage) x (number of hours worked) x 130% x 130% |
|
Worked, and falls on the employee's rest day |
(Basic wage x 150%) + COLA |
|
Additional pay for work done in excess of 8 hours, and falls on the employee's rest day |
(Hourly rate of the basic wage) x (number of hours worked) x 150% x 130% |
Lastly, the DOLE has issued Labor Advisory No. 14 (available here) which provides that, for purposes of determining the 6-month probationary period, the 1-month period of the ECQ is not included in the counting.
How this affects you
In light of the prevailing difficult business conditions, your business may consider deferring payment of your employees' holiday pay for the April 2020 holidays. If your business has totally closed or ceased operations during the period of the ECQ, your business may even be exempted from paying the holiday pay.
However, if your business is able to do so and opts to pay the holiday pay, be sure to follow the DOLE's computation as summarized above.
Regards,
The Legal Tree team
Email: CustomerSupport@legaltree.ph
Facebook: https://facebook.com/LegalTreePh
LinkedIn: https://www.linkedin.com/company/legal-tree
Website: www.legaltree.ph
