Labor office issues pay rules for December holidays

Monday, December 20, 2010

THE Department of Labor and Employment (Dole) has advised employers of pay rules applicable for the nationwide regular and special holidays in the month of December.

For the regular holidays, if the holiday falls on an employee’s regular workday, the employee is entitled to 200 percent of his basic wage on the first eight hours and, for work in excess of the eight hours, to an additional 30 percent of his or her hourly rate.

But if the regular holiday is unworked, the employee is entitled to 100 percent of the regular daily rate, provided he was present, or was on leave with pay, on the workday immediately preceding the holiday.

If the regular holiday is the employee’s rest day, Dole said the Labor Code, specifically Article 93, requires compensation for rest day, and while it ensures the rest period for the workers, it provides under Article 92 that the employer may require his employees to work on any day if the nature of the work requires continuous operations, alongside other conditions.

If the day is worked, the employee is entitled, on the first eight hours to 200 percent of his daily rate plus 30 percent of the said rate or a total of 260 percent for the first eight hours. In excess of 8 hours, plus 30 percent of his hourly rate on said day. But if unworked, the employee is entitled to 100 percent of his regular daily rate, provided he was present, or was on leave with pay, on the workday immediately preceding the holiday.

In case the day immediately preceding the holiday is a non-work day in the establishment, or is the scheduled rest day of the employee, the employee shall not be deemed on leave of absence on that day, in which case he shall be entitled to the holiday pay.

For the special non-working days, if the day is unworked, the “no work, no pay” principle shall apply, unless there is a favorable company policy, practice or collective bargaining agreement granting payment on a special day, even if the day is unworked.

If worked, the employee shall be paid an additional 30 percent of the daily rate of 100 percent on the first eight hours of work. If the employee works in excess of eight hours, he or she shall be paid an additional 30 percent of the hourly rate on the said day.

If the special non-working day falls on the employee’s rest day and is worked, he or she shall be paid an additional 50 percent of the daily rate of 100 percent on the first eight hours of work. In excess of eight hours, he or she shall be paid an additional 30 percent of the hourly rate.

Labor Secretary Rosalinda Baldoz encouraged all employers to observe the country’s labor laws by ensuring proper working conditions and adherence to labor standards for their workers during the holiday season.

She said her encouragement to the employers to exercise the best practices and to adhere to voluntary compliance with labor standards bears in mind the utmost regard accorded by President Benigno Aquino III on the welfare and protection of the country’s workers at all times.

December 25 (Christmas Day) and 27 (Rizal Day) are regular holidays, while December 24 have been declared as additional special non-working days and December 31, 2010 (Last Day of the Year). Furthermore, January 1, 2011 (New Year’s Day) is also a regular holiday nationwide.

Baldoz made it clear that while the nation’s holiday season officially begins on December 24, 2010 and ends on Monday, January 3, 2011, the period from Christmas Day until the New Year is also interspersed by three working business days, which are December 28, 29, and 30, 2010.

In 2007, Republic Act No. 9492 provided that “holidays, except those which are religious in nature, are moved to the nearest Monday unless otherwise modified by law, order or proclamation”—and this is the reason that the regular holiday for Rizal Day on December 30 for this year has been moved to December 27 or the nearest Monday.

Furthermore, Baldoz explained that Proclamation No. 1841, Series of 2009, issued on December 21, 2009 provided for the observance of December 24 as an additional special day nationwide. (Press release)

Source: http://www.sunstar.com.ph/pampanga/local-news/labor-office-issues-pay-rules-december-holidays

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