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Companies allowed to delay release of holiday payments

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The Department of Labor and Employment (DOLE) said it will allow companies to defer the grant of holiday pay to their employees in view of the coronavirus disease 2019 (Covid-19) pandemic, 

In Labor Advisory No. 13-A Series of 2020 signed by Labor Secretary Silvestre Bello III, employers are allowed to postpone the release of holiday payments for April 9 (Maundy Thursday) and 10 (Good Friday) which are regular holidays and April 11 (Black Saturday), a special non-working day, until the time the present emergency situation improves and operations of establishments normalize.

“…this advisory is hereby issued for the guidance of all concerned: On account of the existence of a national emergency…, employers are allowed to defer payment of holiday pay on April 9, 10 and 11, 2020 as may be applicable, pursuant to Labor Advisory No. 13, Series of 2020 until such time that the present emergency situation has been abated and the normal operations of the establishment are in place,” said the advisory dated March 31.

Meanwhile, the agency said companies that stopped operation during the enhanced community quarantine period are exempted from payment of the holiday pay.

During regular holidays, employees who reported for work are entitled to receive 200 percent of their daily wages.

For workers who went to work on a day declared as special non-working day, they will receive an additional 30 percent on their daily salary.

Last November, President Rodrigo Duterte signed Proclamation No. 845 declaring the regular holidays and special non-working days for 2020.

Luzon has been placed under enhanced community quarantine which started on March 17, 2020, until April 12, 2020, to contain the spread of Covid-19.

As of Tuesday, there are 2,084 confirmed Covid-19 cases in the country.

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