Labor group opposes planned deferment, exemption on giving 13th month pay

The Labor group Associated Labor Unions (ALU) is opposing the plan of the Department of Labor and Employment (DOLE) to provide exemptions, or allow employers to forgo and defer payment of the mandatory 13th month pay.

"The 13th month pay benefit at this time of the year have already been earned and accrued by employees. Therefore, 13th month payment cannot be waived or taken away by giving exemption to employers or deferment of payment," Gerard Seno, ALU national executive vice president, said in a statement.

“[The] 13th month payment benefit, just like minimum wage, is a basic labor standard that cannot be waived or deferred,” Seno said.

Interviewed on Super Radyo dzBB, Labor Secretary Silvestre III said micro, small, and medium enterprises (MSMEs) that are "in distress" can be allowed not to give its employees the 13th month pay.

The Labor chief explained that exempting a company in distress is provided by law.

Bello was referring to Presidential Decree No. 851, which mandates employers from the private sector to pay their rank-and-file employees a 13th month pay not later than December 24 every year.

These companies, however, have to prove to the government that they no longer have the capability to give their employees 13th month pay.

The 13th month pay, under PD 851, should be equivalent to 1/12 of an employee's basic annual salary.

Amid the COVID-19 pandemic that has crippled the economy and left  many industries struggling to cope up, Bello said the DOLE will soon issue an advisory on what companies can be considered "in distress."

Seno, however, said employers and business-owners particularly MSMEs have received Small Business Wage Subsidy cash assistance from the government during the pandemic and about to receive more cash assistance to cope in the pandemic crisis.

The ALU rather called on employers and business owners to respect and abide by their obligation to pay the 13th month pay of their employees in time, he said.

“The group also urges the Department of Labor and Employment (DOLE) to ensure that employers and businesses comply with the provisions of the 13th Month Pay Law or Presidential Decree 851,” Seno said.

"We are calling on the employers and business-owners to take a hard look not only on their business but also at the plight of their employees who are also hard pressed. We urge them not to forgo payment of the 13th month pay of their employees," he said.

The group also appealed Bello to not tinker with the 13th month pay law.

“Giving exemptions and deferring payment of such would make working people suffer further," Seno said. -MDM, GMA News