DOLE tells employers: Release workers' deferred holiday pay

The Department of Labor and Employment is directing private sector employers to release the deferred holiday pay benefits of their workers before the end of the year.

Earlier, the DOLE issued several holiday pay rules wherein it gave companies the choice to defer payments “until such time that the national health emergency has abated and normal business operations resume” after the COVID-19 pandemic.

It said, the Philippine economy was in a standstill during the latter part of the first quarter due to the implementation of strict quarantine measures — enhanced community quarantine (ECQ) in Metro Manila and other high-risk areas from March 17 to May 15, followed by a modified enhanced community quarantine (MECQ) until May 31.

Toughest restrictions were relaxed under the general community quarantine (GCQ) starting June 1 in Metro Manila and four other nearby provinces,  but  were reverted to stricter MECQ from August 4 until August 18.

In its Labor Advisory No. 31 series of 2020, the DOLE ordered “the payment of deferred holiday pay.”

It applies to “all employers in the private sector which deferred the payment of holiday pay on account of the existence of a national emergency arising from the COVID-19 situation.”

Also, the The order covers the deferred holiday pay for the following labor advisories:

• Labor Advisory No. 13-A - April 2020 Holidays
• Labor Advisory No. 15 - Regular Holiday on May 1, 2020
• Labor Advisory No. 20 - Regular Holiday on May 25, 2020 (Eid’l Fitr)
• Labor Advisory No. 22 - Regular Holiday on June 12, 2020 (Independence Day)
• Labor Advisory No. 25 - Regular Holiday on July 31, 2020 (Eid’l Adha)
• Labor Advisory No. 27 - Regular Holiday on August 21, 2020 (Ninoy Aquino Day) and August 31, 2020 (National Heroes Day)

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• Labor Advisory No. 29 -- Special Non-Working Days on November 1 and 2, 2020 and Regular Holiday on November 30, 2020 (Bonifacio Day)

“Employers allowed to defer payment of the holiday pay of their employees as referred herein, are required to pay all covered employees of the deferred holiday pay equivalent to 100% of their daily wage,” Labor Advisory 31 provides.

“Covered employers shall pay the qualified employees the deferred holiday pay on or before 31 December 2020,” it added 

In an interview on Dobol B sa News TV, Labor Secretary Silvestre Bello III said the payment of workers’ holiday pay as well as 13th month pay is a legal obligation that employers must comply “one way or another.”

“Kasi noong araw, dahil sa pandemya, binigyan natin kaunting palugit ang mga employers na 'yung mga kinakailangan bayarang benefits at holidays at pino-postpone muna pero ngayon kailangan na nila itong bayaran,” Bello said.

“Nabiggyan naman sila ng kaunting pahinga... We gave our employers a leeway... binigyan naman sila ng sapat na panahon para i-settle.

Kawawa naman ang mga empleyado na umaasa lang sa kanilang holiday pay,” he said.

If employers failed to comply with the DOLE order, the Labor chief said they may be subjected to an investigation.

However, he said, employers and employees can settle the holiday pay issues internally.

The compensation for holiday work of any employee who is permitted or suffered to work on any regular holiday, not exceeding eight hours, shall be paid at least 200% of his regular daily wage.

If the holiday work falls on the scheduled rest day of the employee, he shall be entitled to an additional premium pay of at least 30% of his regular holiday rate of 200% based on his regular wage rate.

For work performed in excess of eight hours on a regular holiday, an employee shall be paid an additional compensation for the overtime work equivalent to his rate for the first eight hours on such holiday work plus at least 30% thereof.

Where the regular holiday work exceeding eight hours falls on the scheduled rest day of the employee, he shall be paid an additional compensation for the overtime work equivalent to his regular holiday-rest day for the first eight hours plus 30% thereof.

The regular holiday rest day rate of an employee shall consist of 200% of his regular daily wage rate plus 30% thereof. —LBG, GMA News